North Dakota 2025 2025-2026 Regular Session

North Dakota House Bill HB1592 Introduced / Bill

Filed 01/20/2025

                    25.1292.02000
Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Representatives Novak, D. Anderson, J. Olson, Tveit
Senators Boehm, Kessel
A BILL for an Act to amend and reenact sections 54-17.5-01, 54-17.5-02, 54-17.5-03, 
54-17.5-04, and 54-17.5-06 of the North Dakota Century Code, relating to the appointments, 
operations, and powers of the lignite research council, the powers of the industrial commission, 
and public record exemptions.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Section 54-17.5-01 of the North Dakota Century Code is 
amended and reenacted as follows:
54-17.5-01. Declaration of findings and public purpose.
The legislative assembly finds and declares that North Dakota's lignite industry produces 
approximately thirty milliontwenty-five million tons of lignite annually, contributing to our state's 
and nation's energy independence by generating electricity for more than two million people in 
the northern great plains region and by producing synthetic natural gas from coal that heats 
three hundred thousand homes and businesses in eastern states, which is equivalent to over 
twenty thousand barrels of oil per day. The legislative assembly further finds and declares that 
North Dakota's lignite industry generates over twenty-eight thousandtwelve thousand direct and 
indirect jobs for North Dakota, nearly three billionsix billion dollars in annual business volume, 
and over one hundred three millionone hundred million dollars in annual tax revenue. The 
legislative assembly further finds and declares that it is an essential governmental function and 
public purpose to assist with the development and wise use of North Dakota's vast lignite 
resources by supporting a lignite research, development, and marketing program that promotes 
economic, efficient, and clean uses of lignite and products derived from lignite in order to 
maintain and enhance development of North Dakota lignite and its products; support 
educational activities relating to the lignite industry; preserve and create jobs involved in the 
production and utilization of North Dakota lignite; ensure economic stability, growth, and 
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 HOUSE BILL NO. 1592
    
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opportunity in the lignite industry; defend through litigation activities the production, use, and 
continued development of lignite as a vital state natural resource; and maintain a stable and 
competitive tax base for our state's lignite industry for the general welfare of North Dakota. The 
legislative assembly further finds and declares that development of North Dakota's lignite 
resources must be conducted in an environmentally sound manner that protects our state's air, 
water, and soil resources as specified by applicable federal and state law.
SECTION 2. AMENDMENT. Section 54-17.5-02 of the North Dakota Century Code is 
amended and reenacted as follows:
54-17.5-02. Lignite research council - Compensation - Appointment of members.
1.The industrial commission shall consultengage in regular and substantive consultation 
with the lignite research council established by executive order in matters of policy 
affecting the administration of the lignite research fund, including holding regularly 
scheduled grant meetings and activities, receiving formal written recommendations 
from the council, and providing opportunities for the council to review and provide 
input on proposed policies. Section 44-03-04 does not apply to members of the council 
appointed by the governor.
2.The lignite research council is composed of twenty-four members appointed by the 
governor from a list provided by the lignite energy council and two members of the 
legislative assembly appointed by the chairman of the legislative management. The 
governor may reject the list and request the council submit a new list until the 
appointments are made. The council consists of:
a.Six members representing lignite processing;
b.Three members representing lignite research;
c.Four members representing state agencies involved with lignite activities;
d.Four members representing mining;
e.One member representing the workforce community;
f.One member representing political subdivisions;
g.Two members representing transmission interests;
h.One Native American tribal representative; and
i.Two members representing landowners.
3.The council shall elect its chairman from among its members.
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4.The council shall elect a vice chairman and five members from among its members to 
serve as an executive committee, to act on behalf of the council between council 
meetings. The executive committee shall meet at the request of the chairman.
5.The council shall meet at least twice a year and additional meetings as the chairman 
determines necessary at a time and place to be fixed by the chairman. A special 
meeting must be called by the chairman on written request of any three members. A 
majority of active members constitutes a quorum.
6.The council shall recommend to the industrial commission the approval of grants, 
loans, or other financial assistance necessary or appropriate for funding, research, 
development, marketing, and educational projects, or activities, and any other matters 
related to this chapter.
7.Members of the council appointed by the governor serve at the pleasure of the 
governor.
8.A member of the council who is a member of the legislative assembly is entitled to 
receive per diem compensation at the rate as provided under section 54 	- 35 - 10 for  
each day devoted to attending meetings or performing other duties relating to the 
official business of the council. The legislative council shall pay the per diem 
compensation and reimbursement for travel and expenses as provided by law for any 
member of the commission who is a member of the legislative assembly.
SECTION 3. AMENDMENT. Section 54-17.5-03 of the North Dakota Century Code is 
amended and reenacted as follows:
54-17.5-03. Priority projects, processes, and activities.
1.In evaluating applications for funding from the lignite research fund for North Dakota's 
lignite research, development, and marketing program, the industrial commission and 
lignite research council shall give priority to those projects, processes, or activities that 
will preserve existing jobs and production, which will create the greatest number of 
new jobs and most additional lignite production and economic growth potential in 
coal-producing counties or those counties with recoverable coal reserves, which will 
attract matching private industry investment equal to at least fifty percent or more of 
the total cost, and which will result in development and demonstration of a marketable 
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lignite product or products with a high level of probability of near term 
commercialization. 
2.For marketing applications, priority must be given to those projects, processes, or 
activities that develop baseline information, implement specific marketing strategies, 
and otherwise contribute to the effective marketing of lignite and its products. 
3.For reclamation applications, priority must be given to those projects, processes, or 
activities that will reduce unnecessary regulatory costs and assist in effectively 
reclaiming surface mined land to its original or better productivity as soon as possible. 
4.Any projects, activities, or processes selected by the commission for funding must 
achieve the priorities and purposes of the program, must have undergone technical 
review and be determined to have technical merit, must have generated matching 
private industry investment, and must have received a favorable lignite research 
council recommendation.
5.The industrial commission shall take into consideration, in selecting independent 
technical reviewers, a reviewer's educational background, government or industry 
experience, and experience relevant to the subject matter of the proposed project or 
program.
SECTION 4. AMENDMENT. Section 54-17.5-04 of the North Dakota Century Code is 
amended and reenacted as follows:
54-17.5-04. Industrial commission powers.
The industrial commission is hereby granted all powers necessary or appropriate to carry 
out and effectuate the purposes of this chapter, including the power:
1.To make grants or loans, and to provide other forms of financial assistance as 
necessary or appropriate, to qualified persons for research, development, and 
marketing projects, processes, or activities directly related to lignite and products 
derived from lignite.
2.To make and execute contracts and all other instruments necessary or convenient for 
the performance of its powers and functions under this chapter, including the authority 
to contract for the administration of the lignite research, development, and marketing 
program.
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3.To issue evidences of indebtedness as authorized in this chapter and to borrow money 
in an amount not to exceed six million dollars from the Bank of North Dakota for a 
period not to exceed five years on the terms and conditions as the Bank of North 
Dakota and the industrial commission may approve without the necessity of 
establishing or maintaining any reserve fund as otherwise required by section 
54-17.5-05.
4.To receive and accept aid, grants, or contributions of money or other things of value 
from any source to be held, used, and applied to carry out the purposes of this 
chapter, subject to the conditions upon which the aid, grants, or contributions are 
made, including aid, grants, or contributions from any department, agency, or 
instrumentality of the United States for any purpose consistent with the provisions of 
this chapter.
5.To issue and sell evidences of indebtedness in an amount or amounts as the 
commission may determine, plus costs of issuance, financing, and any evidences of 
indebtedness funded reserve funds required by agreements with or for the benefit of 
holders of the evidences of indebtedness for the purpose of funding research, 
development, and marketing projects, processes, or activities directly related to lignite 
and products derived from lignite.
6.To refund and refinance its evidences of indebtedness from time to time as often as it 
is advantageous and in the public interest to do so, and to pledge any and all income 
and revenues derived by the commission under this chapter or from a project, 
process, or activity funded under this chapter to secure payment or redemption of the 
evidences of indebtedness.
7.To keep accurate records of all financial transactions performed under this chapter.
8.To adopt and enforce policies, rules, and orders to effectuate the purpose of this 
chapter.
SECTION 5. AMENDMENT. Section 54-17.5-06 of the North Dakota Century Code is 
amended and reenacted as follows:
54-17.5-06. Access to commission records.
1.Materials and data submitted to, or made or received by, the commission, to the extent 
that the commission determines the materials or data consist of trade secrets or 
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commercial, financial, or proprietary information of individuals or entities applying to or 
contracting with the commission or receiving commission services under this chapter, 
are not public records subject to section 44 	- 04 - 18 and section  6 of article  XI of the 
Constitution of North Dakota, and are subject to section 44-04-18.4.
2.A person or entity must file a request with the commission to have material designated 
as confidential under subsection 1. A request to have material designated as 
confidential is exempt as defined in section 44-04-17.1. The request must contain any 
information required by the commission, and must include at least the following:
a.A general description of the nature of the information sought to be protected.
b.An explanation of why the information derives independent economic value, 
actual or potential, from not being generally known to other persons.
c.An explanation of why the information is not readily ascertainable by proper 
means by other persons.
d.A general description of any person or entity that may obtain economic value 
from disclosure or use of the information, and how the person or entity may 
obtain this value.
e.A description of the efforts used to maintain the secrecy of the information.
3.Any information submitted under subsection 2 is confidential. The commission shall 
examine the request and determine whether the information is relevant to the matter at 
hand and is a trade secret under the definition in section 47-25.1-01 or 44-04-18.4. If 
the commission determines the information is either not relevant or not a trade secret, 
the commission shall notify the requester and the requester may ask for the return of 
the information and request within ten days of the notice. If no return is sought, the 
information and request are a public record.
4.The names or identities of independent technical reviewers on any project or program 
and the names of individual lignite council members making recommendations are 
confidential and may not be disclosed by the commission, and are not public records 
subject to section 44 	- 04 - 18 or section  6 of article  XI of the Constitution of North  
Dakota.
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