The Montana net metering legislation requires interconnected facilities to comply with all national safety, equipment, and power quality standards as set by the National Electrical Code (NEC), Institute of Electrical and Electronic Engineers (IEEE), National Electrical Safety Code (NESC) and Underwriters Laboratories (UL). (Mont. Code § 69-8-604) This applies to customers wishing to interconnect hydro, wind, or solar power generation systems with a capacity of 50 kW or less.

Technical language in NorthWestern Energy’s standard net metering agreement mirrors the state law requirements with respect to national standards but also requires a manual, lockable, external disconnect switch.

NorthWestern Energy’s standard net metering agreement is a comprehensive agreement that covers many of the important non-technical aspect of interconnecting with their system. With the exception of NWE’s we are unaware of any efforts to develop simplified interconnection agreements for wind energy facilities.

Contact Gary Paulsen for information on Montana-Dakota Utilities' net metering agreement.
Phone:701-222-7649,
gary.paulsen@mdu.com

LIABILITY INSURANCE
NorthWestern does not require system owners to purchase additional liability insurance but encourages system owners to confirm with their insurance provider the limits of coverage with respect to interconnected systems.

The agreement authored by NorthWestern Energy is available for download in both PDF and Word format (see download instructions).

• Net Metering Agreement in PDF format
• Net Metering Agreement in Word format
  

PROPERTY TAX EXEMPTION
New generating facilities with nameplate capacity of less than 1 MW and using an alternative renewable energy source are exempt from property taxes for 5 years after start of operation.

Montana's property tax exemption for buildings using a recognized non-fossil form of energy generation or low emission wood or biomass combustion devices may be claimed for 10 years after installation of the property. The exemption is allowed for single-family residential dwellings up to $20,000 in value and for multifamily residential dwellings or a nonresidential structure up to $100,000 in value. This property is class 4 property and otherwise would be taxed on 3.46 percent of assessed value.

Recognized forms of energy generation include solar, photovoltaics, passive solar, wind, solid waste, decomposition of organic wastes, geothermal, fuel cells that do not require hydrocarbon fuel, small hydropower plants, and wood burning.

Use Montana Department of Revenue form AB-14 to claim this exemption.

Mark Hines
Montana Department of Environmental Quality
Planning, Prevention and Assistance Division
P.O. Box 202901
1520 E. 6th Avenue
Helena, MT 59620-2901
Phone: (406) 444-6769
Fax: (406) 444-6836
mhines@state.mt.us
http://www.deq.state.mt.us/ppa/index.asp

Information Specialist - MT Dept. of Rev.
Montana Department of Revenue
P.O. Box 5805
Helena, MT 59604-5805
Phone: (406) 444-6900
http://www.state.mt.us/revenue/css/default.asp

WIND TAX CREDIT
Montana taxpayers (individual, corporation, partnership, or small business corporation) who produce or use wind-generated electricity are entitled to a state tax credit equal to 35% of their investment of $5,000 or more in a commercial system or a net metering system.

The credit is for manufacturing plants that produce alternative energy generating equipment, a business facility for which the alternative energy generating equipment supplies - on a direct contract sales basis - the basic energy needed, or alternative energy generating equipment in which the investment for which a credit is being claimed was made.

This tax credit broadens the previous tax credit, which only applied to wind systems, to now apply to alternative energy systems. Alternative energy systems include solar, wind, geothermal, conversion of biomass, fuel cells that do not require hydrocarbon fuel, small hydroelectric generators producing less than 1 megawatt, or methane from solid waste.

Click here for more information.

INCOME TAX CREDIT ON ALTERNATIVE ENERGY
Any resident individual taxpayer who installs an energy system using a recognized non-fossil form of energy generation, as defined in Montana codes, in the taxpayer's principal dwelling after December 31, 2001, is entitled to claim a tax credit in an amount equal to the cost of the system, including installation costs, less grants received, not to exceed $500, against the income tax liability imposed against the taxpayer pursuant to state law.

Click here for more information.

ALTERNATIVE ENERGY REVOLVING LOAN PROGRAM (AERLP)
AERLP provides loans to individuals and small businesses for the purpose of building alternative energy systems for residences and small businesses. The commercial and residential sectors are eligible for low-interest loans from the state of up to $10,000 for wind projects to generate energy for their own use and for net metering. Repayment is due in 5 years. The Department of Environmental Quality administers the program and is responsible for developing the rules.

Click here for more information.

DEQ INCENTIVES FOR SMALL WIND PROJECTS
DEQ and the National Center of Appropriate Technology (NCAT) are offering $35,000 in incentives for small wind projects in Montana’s rural electric co-op territories.

NCAT will give grants to wind projects up to 10 KW in capacity. NCAT will pay rebates of $1.75/Watt, with a maximum of $10,000, for projects in a rural electric co-op’s service territory in Montana. Additional financing for up to $10,000 will be made available from DEQ’s Alternative Loan Program.

DEQ and NCAT will work with rural electric co-ops in Montana that are interested in encouraging net-metering projects within their service territories. An important aspect of wind development is the proper interconnection with the local utility and verification that all electrical code requirements are met.

Applications for funding are available through NCAT. Grants will be awarded based on the completeness of application, available wind resource, and quality of the system design, including meeting local codes and utility interconnection requirements. For more information, contact John Walden at NCAT at johnw@ncat.org or 406-494-8641 or Mark Hines at DEQ at mhines@state.mt.us or 406-444-6769.

Click here for more information.

UNIVERSAL SYSTEM BENEFITS
As part of its 1997 restructuring legislation, Montana established its Universal System Benefits Program (USBP). Through the USB charge paid by all NorthWestern Energy customers, the utility encourages the development of renewable energy resources projects that use environmentally friendly—or "green"— technology to generate electricity. USB funding provides incentives for solar, wind, or geothermal projects.

Beginning January 1, 1999, all electricity suppliers began annually contributing 2.4% of their 1995 revenues to the USBP. This is an amount equivalent to $14.9 million annually, collected at a rate of 1.1 mills/kWh. The funds support energy efficiency, renewable energy resources, low-income energy assistance, and renewable energy R&D.

Montana’s USBP is effective until December 31, 2005, per SB 77, which was signed by the Governor on April 11, 2003 and HB 509, which was signed by the Governor on May 5, 2003.

NorthWestern Energy - Wind Rebate Program
This program is administered by the National Center for Appropriate Technology (NCAT) using funds collected from NorthWestern Energy's electric customers as part of the NorthWestern Energy's Universal Systems Benefits (USB) program. http://www.montanagreenpower.org/usb2003.html

Customers interested in participating in the program must submit a completed application. Eligibility requirements include the installation of a wind machine capable of generating up to 10 kilowatts of electricity that must meet NCAT’s minimum specifications. Successful applicants must allow NCAT to inspect their system and sign a net metering agreement with NorthWestern Energy. In addition, project managers may monitor wind energy potential at proposed sites to qualify particular projects.

Any excess electricity produced by the system will be fed into the utility grid through a net metering agreement to serve other NorthWestern Energy electric customers. The owner may also choose to install batteries and controllers to provide an uninterrupted power supply.

In return, successful applicants will receive an incentive of $1.25 per watt of the manufacturer’s capacity rating. For example, a 10-kilowatt system would be eligible for an incentive of $12,500, which covers about a third of the total installed cost of the system.

Applications are available by calling or emailing John Walden at NCAT, johnw@ncat.org, 1-866-723-8677, or download an application at www.montanagreenpower.com.

BEF - RENEWABLE ENERGY GRANT
Using revenues generated from the sales of Green Tags, Bonneville Environmental Foundation (BEF), a not-for-profit organization, accepts proposals for funding for renewable energy projects located in the Pacific Northwest (OR, WA, ID, MT). Any private person, organization, local or tribal government located in the Pacific Northwest may participate. Projects that generate electricity are preferred. Acceptable projects include solar photovoltaics, solar thermal electric, solar hot water, wind, hydro, biomass, and animal waste-to-energy.

BEF may deliver funding through various means, including grants, loans, convertible loans, guarantees, and direct investments in renewable energy projects. BEF renewable energy grants and investments may range from a few thousand dollars for small installations, to significant investments in central station grid-connected renewable energy projects. If a BEF grant is requested for a generating project, the BEF share will not exceed 33% of total capital costs, and 0% of operating costs.

To inquire about funding for a project, please visit the web site and download information regarding the submittal of a Letter of Inquiry.

BEF generally does not fund residential and small business renewable energy projects with grants or investments. Rather, BEF supports installations for residential and small businesses customers through two cooperatives: Our Wind Coop and the Northwest Solar Coop.

Contact Information:
Renewable Energy Programs - BEF
Bonneville Environmental Foundation
133 SW 2nd Avenue, Suite 410
Portland, OR 97204
Phone: (503) 248-1905
Fax: (503) 248-1908
information@B-E-F.org
http://www.B-E-F.org

New wind maps for the Northwest are now available online through a project coordinated by NW Sustainable Energy for Economic Development (NWSEED) and the NW Cooperative Development Center (NWCDC) and sponsored by the National Renewable Energy Laboratory (NREL), the Bonneville Power Administration (BPA), and numerous other organizations. A new high-resolution map of wind energy potential is now available for Montana.

US Department of Energy has produced wind resource maps for each state. The map for Montana can be found here. You may also find the definitions of Wind Power Classes for the maps helpful. You may also find useful information at the web site for the National Renewable Energy Laboratory (NREL). This site contains extensive information about wind resources in the United States.

In addition, the Montana Wind Energy Atlas is a comprehensive analysis of wind energy data published in 1987. Data collected by a variety of public and private organizations at 158 wind monitoring sites around Montana were reviewed. Data from 56 sites are analyzed in the Atlas. Information on the sites and the data collection programs is included. These historical data should be useful for preliminary identification of potential sites. 

"Bright Ideas in Renewable Energy—A Guide to Funding Your Renewable Energy Project."
For a FREE copy of the guide, write or call Sage Mountain Center:
79 Sage Mountain Trail
Whitehall, MT 59759
Phone: (406) 494-9875

Relevant Information on permitting for wind projects in the State of Montana is available online.

WEB LINKS
Electric Utility Industry Restructuring
Montana Green Power
Montana DEQ - Renewable Energy
National Renewable Energy Lab
American Wind Energy Association
National Center for Appropriate Technology
Energize Montana

An electronic copy of the U.S. Department of Energy's 23-page Consumer’s Guide to Small Wind Electric Systems is available at the Wind Powering America web site. A Montana specific guide is also available.

The Database of State Incentives for Renewable Energy (DSIRE) is a comprehensive source of information on state, local, utility, and selected federal incentives that promote renewable energy. Another item of interest is the Interstate Renewable Energy Council’s strong web site on wind energy projects and wind energy events/news occurring through out the country.

Visit Montana Green power’s web site to find a complete listing of contact information for Montana Utility contacts.

Government Contacts

Montana Department of Environmental Quality
Metcalf Building Office
Mark Hines
1520 E. Sixth Avenue
P.O. Box 200901
Helena, MT 59620
Phone: 406-444-6769
Fax: 406-444-6836
mhines@state.mt.us
http://www.deq.state.mt.us

National Center for Appropriate Technology (NCAT)
John Walden
P.O. Box 3838
Butte, MT 59702
Phone: (406) 494-8641
Fax: (406) 494-2905
Toll free: 1(800) 275-6228
johnw@ncat.org
http://www.ncat.org

U.S. Department of Energy
Steve Palomo
U.S. Department of Energy
Denver Regional Office
1617 Cole Blvd.
Golden, CO 80401
Phone: 303-275-4838
Fax: 303-275-4830
Steve.Palomo@EE.DOE.GOV
http://www.eren.doe.gov/dro

Local Organizations Interested in Renewable Energy Issues

Harvesting Clean Energy
The Harvesting Clean Energy website, which features Northwest renewable energy technology profiles and news, is maintained by Climate Solutions, a nonprofit organization based in Olympia, Washington. Its efforts have been supported in part by Region X of the US Department of Energy and the US Wind Powering America Program. The group’s goal is to build awareness of the benefits of renewable energy technologies for rural landowners and communities, and support implementation through technical and educational resources.

Montana Electricity Sector
State Energy Alternatives gives a state-by-state snapshot of renewable energy resources, technologies, and policies. Renewable energy resources are inexhaustible and can be harnessed in numerous ways, depending upon the region. Renewable energy currently makes up less than 5 percent of the nation’s energy mix, but the potential, particularly in specialized markets, is far greater than that. For information on Montana utilities, electrical rates, fuel mixes and emissions, visit the Energy Efficiency and Renewable Energy Network’s State Alternative Energy website. Information on the website does not reflect Montana’s restructured electricity sectors.

Montana Green Power
An extensive on-line guide to Montana’s renewable energy sector.

NW Energy Coalition
The NW Energy Coalition is an alliance of more than 85 environmental, civic and human service organizations, utilities and businesses from Oregon, Washington, Idaho, Montana, Alaska and British Columbia. It promotes energy conservation and renewable energy resources.

Northwest Sustainable Energy For Economic Development (SEED)
Northwest SEED builds partnerships to mobilize consumers and maximize local benefits from harvesting "home grown" energy resources - wind, solar, biomass, geothermal, low-impact hydro, conservation, and bio-based products - while maintaining reliable electric service and creating new revenue streams and high quality jobs throughout the Pacific Northwest. Modeled on High Plains SEED, Northwest SEED supports and develops creative programs, policies, and financing approaches to build rural economies and meet the region's power needs through affordable, distributed "green" generation.

Renewable Northwest Project
Green Power is catching on, according to the Renewable Northwest Project, a broad coalition of public-interest organizations and energy companies created to promote renewable energy development in the region. Since its inception, RNP has been a forceful advocate in Oregon, Washington, Idaho and Montana, for basing the region’s energy future on clean, renewable resources, such as solar, wind and geothermal.

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