In a closely watched decision Friday, the Montana Supreme Court ruled that state regulators failed to conduct an adequate environmental review of NorthWestern Energy’s Laurel natural gas plant. The ruling, shaped by the court’s liberal-leaning majority, requires the Montana Department of Environmental Quality (DEQ) to revisit its evaluation of greenhouse gas emissions but allows the plant to continue operating.
The 175-megawatt Yellowstone Generating Station, which began generating electricity in March 2024, has been embroiled in legal battles for years. The court’s decision upheld a 2023 ruling by Yellowstone County District Court Judge Michael Moses, who found that the DEQ failed to properly account for the climate impacts of the plant’s emissions.
The seven-member court was divided in its decision. A plurality of three justices—Beth Baker, Mike McGrath, and James Jeremiah—crafted the lead opinion, mandating a more thorough environmental review while stopping short of revoking the plant’s operating permit. Justices Laurie McKinnon and Ingrid Gustafson, both known for their progressive liberal stances, argued for an even stricter approach, contending that the permit should be revoked until the environmental review is completed. Meanwhile, Justices Dirk Sandefur and Jim Rice concurred with letting the plant operate but resisted the call for a more extensive review.
Radical environmental groups hailed the ruling as a step forward in holding the state accountable for addressing climate change.
“This decision is long overdue,” said Anne Hedges of the Montana Environmental Information Center. “The climate crisis has damaged our economy, rivers, and air quality, yet the state and NorthWestern Energy continue to ignore the impacts. While this doesn’t solve the problem for neighbors living next to a polluting plant on the Yellowstone River, it forces the state to hit the reset button and acknowledge the harm we’re experiencing from burning fossil fuels.”
The decision echoes the court’s recent ruling in the landmark Held v. Montana case, where the court sided with youth plaintiffs advocating for their constitutional right to a clean and healthful environment. That case challenged a 2023 law, House Bill 971, which limited the scope of environmental reviews for projects like the Laurel gas plant.
The Laurel plant case was brought to court by the Montana Environmental Information Center and the Sierra Club, who argued that the DEQ’s initial permit approval failed to account for the plant’s contribution to global warming.
By: DNU staff