Legislative Priorities for Lignite Energy Council
The Lignite Energy council has identified three legislative priorities for the upcoming session:
- Operation Prairie Dog – The interim Energy Development and Transmission Committee unanimously approved a proposal in early October nicknamed “Operation Prairie Dog,” to fund infrastructure projects with oil and gas tax revenue in areas outside of North Dakota’s oil patch. The proposal would add additional “buckets” for city, county, township and airport infrastructure funds, while adjusting the state’s Gross Production Tax in shifting streams of oil and gas tax revenue. A provision is included to increase an LEC related appropriation from $3 million to $10 million to the Lignite Research Fund to help fund R&D projects. Governor Doug Burgum has offered initial support for the bill but indicated that more work may need to be done on various aspects of the proposal.
- CO2/Extended Oil Recovery Bill – We are working on legislation for an oil extraction tax exemption for future incremental production from enhanced oil recovery projects that use carbon dioxide. The bill would help spur investments into carbon capture projects that would create future markets for coal and strengthen current contracts, achieve more oil from nearly 2,000 existing traditional wells and increase tax revenue for the state through incremental oil production. This would be a win-win-win for the state, oil producers and energy companies to work together to achieve a common goal. This bill could help put North Dakota at the forefront of technology that could revolutionize the phrase “low-carbon energy.”
- Critical Infrastructure Protection Bill – We are working on drafting legislation to increase criminal penalties against people who willfully trespass or enter property containing a critical infrastructure facility without permission by the owner of the property. It would also hold a person liable for any damages to personal or real property while trespassing. The bill would also prescribe criminal penalties for organizations conspiring with those persons responsible. This would apply to pipelines, coal mines, power plants and transmission lines.