A bill supported by the Montana Department of Environmental Quality is being contemplated by lawmakers, aiming to grant exemptions from environmental review for certain smaller subdivision applications.
Senate Bill 240 sponsor Sen. Jason Small, R-Busby, said the measure would streamline DEQ’s review process while maintaining environmental protections. The proposal is in line with a larger effort state agencies have undertaken to address housing affordability challenges by reducing the time it takes to approve subdivision applications, Small said.
If SB 240 passes, properties that meet four criteria would be exempted from the environmental review process laid out in the Montana Environmental Policy Act. Subdivisions eligible for the exemption would have to be located at least two miles from “high-quality water” — a designation that applies to surface waters with a recognized beneficial use such as irrigation, recreation or fish and wildlife habitat — and meet DEQ’s “nonsignificance” rule, meaning the proposed wastewater treatment is protective of human health and the environment. The development would also have to contain 14 or fewer residential lots and the developer would have to demonstrate that there is adequate water to supply the subdivision and that rights to that supply have been secured.
During a Wednesday hearing before the Senate Natural Resources Committee, DEQ Director Chris Dorrington was joined by a lobbyist for the Hospitality and Development Association of Montana in supporting SB 240. Dorrington said the bill would allow DEQ to devote its existing staff resources to reviewing projects with more obvious water quality concerns, such as mining proposals and larger subdivision applications.
According to Dorrington, SB 240 would only be applicable to a small number of the department’s yearly subdivision applications, which amounts to approximately 1,300. Additionally, he highlighted that the bill includes a provision to prevent developers from bypassing environmental assessment by dividing a larger development into smaller portions.
“In the realm of development, time holds great value, hence anything that expedites the completion of our projects is deemed beneficial.”
Jessie Luther, lobbyist with the Hospitality and Development Association of Montana
According to lobbyist Jessie Luther from the Hospitality and Development Association of Montana, while SB 240 may not cover a wide range of applications, it is still crucial to have any measures in place to simplify and accelerate the permitting process, particularly in light of the affordable housing crisis.
She added, “In the world of development, time holds great value; therefore, any tool or method that expedites our completion process is highly beneficial.”
The Montana Environmental Information Center and Montana Audubon are among the opponents of the proposal. Representatives from these organizations have expressed their apprehensions regarding the potential unexamined consequences on water quality, wildlife habitat, and other environmental aspects. They believe that without a thorough review process, including public feedback, state regulators might overlook crucial environmental impacts.
MEIC Deputy Director Derf Johnson emphasized the significance of the [MEPA] assessment in determining the extent of water pollution. According to Johnson, relying on a single source of pollution cannot determine if a water body will be irreparably polluted. To gain a comprehensive understanding, it is crucial to consider the broader context of the situation.
Expressing her organization’s apprehension, Amy Seaman, the director of policy and science at Montana Audubon, highlighted the potential consequences of SB 240, suggesting that it may promote unplanned development in crucial open spaces that provide sanctuary for wildlife and facilitate migration routes.
Those concerns were referenced by Sen. Pat Flowers, D- Belgrade, who asked DEQ staff how the agency would reconcile the exemptions laid out under SB 240 with its Montana Environmental Policy Act directive to consider cumulative impacts.
According to Lindsey Krywaruchka, the Administrator of DEQ Water Quality Division, the department’s evaluation is focused solely on determining whether the proposed wastewater treatment meets the requirements set by the Montana Water Quality Act. Any other assessments regarding land use fall within the jurisdiction of local governments, who review subdivision applications both before and after DEQ provides its input on water quality effects.
It is crucial to conduct an assessment of the Montana Environmental Policy Act as relying solely on a single source of pollution cannot determine if a water body will be irreversibly polluted. To adequately determine the pollution level, it is necessary to consider the broader context.
MEIC Deputy Director Derf Johnson
Sen. Willis Curdy, D-Missoula, said he’s seen lots of “pop-up subdivisions” in the Bitterroot Valley’s agricultural land and asked Dorrington if the loss of farmland and ranchland factors into the department’s review process under SB 240.
According to Dorrington, the agency will assess agricultural land conversion only if it has a water right linked to it. He further mentioned that SB 240 would only exclude around 50 subdivision applications from yearly evaluation.
According to Dorrington, “DEQ has no intention to incentivize housing construction in any location. It is the developers and landowners who are responsible for that.”
Curdy inquired whether the bill was an effort by the department to reduce the workload due to a backlog of applications.
Dorrington said the bill is an “appropriate part of” DEQ’s attempt to stay on top of subdivision applications and noted that other proposals to expedite review processes will be discussed in the coming weeks, including House Bill 364, a “private option” bill that would allow independent contractors to review subdivision applications under certain circumstances.
When asked in a subsequent discussion about the possibility of speeding up subdivision review by increasing staffing levels at the DEQ, Small responded by saying, “That should also be considered.”
He stated, “I don’t mean to criticize DEQ, but if we are facing staffing problems, we should examine that.”
SB 240 did not receive immediate action by the committee.
