DEQ Releases Final Supplemental Environmental Assessment for Laurel Generating Station

The Montana Department of Environmental Quality DEQ) has released the final supplemental Environmental Assessment EA) for the Yellowstone County Generation Station—commonly known as the Laurel Generating Station—in Laurel, Montana. This release comes after construction was completed and the facility began operating, but was delayed by court proceedings over the adequacy of DEQʼs initial environmental review.

In 2021, DEQ issued the initial EA for the project, but environmental plaintiffs challenged it in state district court, arguing that it failed to adequately assess several environmental impacts write as a news story including a headline The Montana Department of Environmental Quality DEQ) has released the final supplemental environmental assessment EA) for the
Yellowstone County Generation Station, commonly referred to as the Laurel Generating Station, in Laurel under the Montana Environmental Policy Act MEPA. Specifically, concerns were raised about pipeline impacts, water quality, noise, light pollution, and the cumulative effects of sulfur dioxide SO2) and greenhouse gas emissions. The district court ruled that all impacts were sufficiently addressed except for DEQʼs evaluation of light and greenhouse gas emissions.

The Montana Supreme Court subsequently upheld the district courtʼs findings on January 3, 2025, ordering DEQ to revise the EA to address those two issues. Importantly, the Supreme Court affirmed that the district court had not justified vacating the plantʼs permit, allowing the gas-fired plant to continue operations while DEQ prepared the supplemental assessment.

The final supplemental EA, now released, responds directly to the courtʼs concerns, providing detailed analyses of light pollution impacts near residences and the surrounding community, as well as greenhouse gas emissions and their potential climate effects. The draft supplemental EA was previously subjected to a public comment period, and all submitted comments have been incorporated into the final document.

The Laurel Generating Station, a 175-megawatt methane gas facility owned by NorthWestern Energy and located on the banks of the Yellowstone River, is projected to emit nearly 770,000 tons of carbon dioxide annually. Environmental groups such as the Montana Environmental Information Center and the Sierra Club have been critical of the projectʼs impacts and the initial lack of thorough review.

DEQ’s supplemental assessment aligns with the Montana Supreme Courtʼs mandate and aims to comply fully with MEPA requirements, balancing energy needs with environmental protection.  The public now has until September 30, 2025, to appeal the facilityʼs air quality permit based on this supplemental EA.

This resolution marks a significant chapter in Montanaʼs environmental regulatory landscape,
reflecting heightened judicial scrutiny on climate impacts and community well-being related to
energy projects

By: BSH staff