The Montana Public Service Commission (PSC) has declined a request to incorporate climate change considerations into its energy regulation. A coalition of 41 businesses and nonprofits had petitioned the PSC following a ruling in the Held v. Montana case, which emphasized the state’s constitutional right to a “clean and healthful environment” as inclusive of a stable climate system.
The petition submitted to PSC comprised two main requests. The first urged the PSC to consider the harmful climate impacts of greenhouse gas emissions as part of its decision-making, aligning with the Montana Constitution. The second proposed adopting the Social Costs of Greenhouse Gases, a framework from the U.S. Environmental Protection Agency, to evaluate the social, economic, and environmental implications of various energy sources.
Lucas Hamilton, PSC’s Chief Legal Staff, presented the reason for rejecting the declaratory ruling, explaining that such authority lies with judicial and legislative bodies, not executive agencies like the PSC. Although the petition’s request to use the Social Costs of Greenhouse Gases remains under consideration, Hamilton argued that adding climate impact assessments could impose mandatory requirements not intended by the legislature.
Hamilton advised that decisions should be made case-by-case, warning against a broad climate analysis framework that could affect all current and future parties involved with the PSC. He suggested administrative rulemaking as the proper channel if the commission wishes to proceed.
The PSC commissioners briefly discussed before voting unanimously to reject the declaratory ruling request. PSC President Brad Molnar acknowledged Hamilton’s efforts but predicted the decision would face judicial review. “This is one step. If anybody thinks that this isn’t going to court, I think they are wrong,” Molnar stated, highlighting the ongoing national and regional discourse on climate accountability.
Attorney Jenny Harbine from Earthjustice, representing the petitioners, emphasized the PSC’s role in utility investment decisions impacting all Montanans. She stated, “Under our constitution, the commission must account for the significant climate costs of its actions. We intend to hold them accountable to that requirement.”
Michael Hudson, from Families for a Livable Climate, criticized the PSC’s delay, citing potential financial losses for Montanans due to climate change-related issues like health risks and economic impacts. Hudson noted, “The PSC regulates the single greatest source of CO2 emissions in our state, and it would make sense for them to consider its impacts.”
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