North Dakota Update

The North Dakota Legislative Session adjourned sine die shortly after midnight on Friday morning. In the final days of the session, there were major budget bills that were worked on to authorize the legacy fund earnings streaming bill and to fund the Industrial Commission and the Office of Management and Budget (OMB), among other executive branch agency budgets.

House Bill 1015, which makes appropriations to the OMB, directs the Bank of North Dakota to extend a $250,000,000 line of credit to the industrial commission to support loans or loan guarantees issued from the clean sustainable energy fund. Within the bill language of HB1452, there is language for a guaranteed loan program geared toward high-tech energy projects such as those aimed at capturing carbon dioxide emissions from lignite-fired power plants. The bill passed the House 81-9 and the Senate 46-1. The bill now awaits a final decision by Governor Burgum.

Senate Bill 2014, introduced by the Senate Appropriations Committee, provides ongoing funding and policy language for the North Dakota Industrial Commission. The bill appropriates $4,500,000 from the lignite research fund for near-term, market-driven projects, activities, or processes will generate matching private industry investment and have the most potential of preserving existing lignite production and industry jobs or that will lead to increased development of lignite and its products and create new lignite industry jobs and economic growth for the general welfare of this state. A portion of the funding can also be used for any litigation that may be necessary to protect and promote the continued development of lignite resources. The bill was passed by the Senate 47-0 and the House 71-17 and its awaiting further action by Governor Burgum.

House Bill 1380, sponsored by Representative Mike Lefor, R-Dickinson, creates the Legacy Fund Earnings “Streaming” bill to invest research, innovation, and technology into the state’s economy. In the conference committee process, the bill went through a significant change that deviated from the original versions passed in the House and Senate. The agreed upon language transfers legacy fund earnings each biennium in a ranked order that sends the first $150M to the legacy sinking and interest fund to service the debt on the bonding bill found in HB1431. The next $60M goes towards the highway tax distribution fund and any remaining funds for other purposes designated by the legislature is up to $50M for tax relief; up to $30M to the clean sustainable energy fund and up to $30M for the university research programs. The bill was passed by the House 81-9, the Senate 46-1 and is awaiting further action by Governor Burgum.