Sixty-ninth Legislative Assembly of North Dakota
In Regular Session Commencing Tuesday, January 7, 2025
HOUSE BILL NO. 1592
(Representatives Novak, D. Anderson, J. Olson, Tveit)
(Senators Boehm, Kessel)
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 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 lignite research
council, and providing opportunities for the lignite research council to review and provide input
on proposed policies. Section 44-03-04 does not apply to members of the lignite research
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 H. B. NO. 1592 - PAGE 2
appointed by the chairman of the legislative management. The governor may reject the list
and request the lignite energy council submit a new list until the appointments are made. The
lignite research 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 lignite research council shall elect its chairman and vice chairman from among its
members.
4.The lignite research council shall elect five members from among its members to serve with
the chairman and vice chairman as an executive committee, to act on behalf of the lignite
research council between lignite research council meetings. The executive committee shall
meet at the request of the chairman.
5.The lignite research 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 lignite research 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 lignite research council appointed by the governor serve at the pleasure of the
governor.
8.A member of the lignite research 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 lignite research 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 lignite research council 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 H. B. NO. 1592 - PAGE 3
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 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.
3.To allocate sufficient funding from the lignite research, development, and marketing program
to retain a technical advisor, as determined necessary by the lignite research council, to
support program operations and provide expert analysis, project evaluation, research
coordination, and industry engagement to advance the objective of the lignite research
program and ensure the effective and strategic use of program funds.
4.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.
4.5.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. H. B. NO. 1592 - PAGE 4
5.6.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.
6.7.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.
8.To keep accurate records of all financial transactions performed under this chapter.
9.To adopt and enforce policies 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 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 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 . H. B. NO. 1592 - PAGE 5
____________________________ ____________________________
Speaker of the House President of the Senate
____________________________ ____________________________
Chief Clerk of the House Secretary of the Senate
This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative
Assembly of North Dakota and is known on the records of that body as House Bill No. 1592.
House Vote: Yeas 88 Nays 3 Absent 3
Senate Vote:Yeas 45 Nays 1 Absent 1
____________________________
Chief Clerk of the House
Received by the Governor at ________M. on _____________________________________, 2025.
Approved at ________M. on __________________________________________________, 2025.
____________________________
Governor
Filed in this office this ___________day of _______________________________________, 2025,
at ________ o’clock ________M.
____________________________
Secretary of State