Sixty-ninth Legislative Assembly of North Dakota
In Regular Session Commencing Tuesday, January 7, 2025
SENATE BILL NO. 2333
(Senators Wanzek, Kessel, Sorvaag)
(Representatives Beltz, Brandenburg, Hagert)
AN ACT to create and enact a new section to chapter 4.1-01 of the North Dakota Century Code, relating
to a low-carbon fuels fund; to amend and reenact sections 39-04-39 and 54-44.5-09 of the North
Dakota Century Code, relating to the distribution of certain vehicle registration fees and ethanol
production incentives; to repeal chapter 17-02 of the North Dakota Century Code, relating to
ethanol production incentives; to provide a continuing appropriation; to provide for a transfer;
and to provide for a report.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. A new section to chapter 4.1-01 of the North Dakota Century Code is created and
enacted as follows:
Low - carbon fuels fund - Continuing appropriation.
1.The low - carbon fuels fund is created as a special fund in the state treasury. The fund consists
of all moneys transferred to the fund under section 39 - 04 - 39. The moneys in the fund are
appropriated to the commissioner on a continuing basis to distribute low - carbon fuels
incentives and carbon intensity verification under this section.
2.The commissioner shall distribute low - carbon fuels incentives to ethanol production facilities
for eligible capital projects that increase the efficiency of a facility and decrease the carbon
intensity of the production process. Distributions of low - carbon fuels incentives to an ethanol
production facility are limited to fifty percent of the cost of eligible capital projects and may not
exceed:
a.Three million dollars per biennium;
b.Cumulative distributions of ten million dollars per facility; and
c.A period of ten years beginning with the first distribution to the facility.
3.For purposes of this section, "eligible capital projects" means construction of new
infrastructure or replacement of existing infrastructure for carbon dioxide capture and storage,
beneficial use of carbon dioxide, energy efficiency enhancements, or ethanol yield
improvements.
4.The commissioner may use up to one million dollars from the fund to contract with an entity to
develop a carbon intensity verification process.
5.At least once per biennium, the commissioner shall provide a report to the legislative
management regarding the status of the fund, including the revenues deposited in the fund,
the low - carbon fuels incentives distributed from the fund, and the balance of the fund.
SECTION 2. AMENDMENT. Section 39-04-39 of the North Dakota Century Code is amended and
reenacted as follows:
39-04-39. Distribution of registration fees collected.
1.Any moneys in the registration fund accruing from license fees or from other like sources, in
excess of the amount required to pay salaries and other necessary expenses, in accordance S. B. NO. 2333 - PAGE 2
with the legislative assembly's appropriation for such purposes, must be promptly deposited in
the highway tax distribution fund which must be distributed in the manner as prescribed by
law.
2.The state treasurer shall transfer annually from the highway tax distribution fund to the ethanol
production incentivelow - carbon fuels fund under section 1 of this Act an amount equal to forty
percent of all sums collected for the registration of farm vehicles under subsection 5 of section
39-04-19 except that no transfer may be made in an amount that would result in the balance
of the ethanol production incentive fund exceeding seven million five hundred thousand
dollarsuntil the cumulative total transfers under this subsection equals thirty million dollars.
SECTION 3. AMENDMENT. Section 54-44.5-09 of the North Dakota Century Code is amended and
reenacted as follows:
54-44.5-09. Office of renewable energy and energy efficiency.
The office of renewable energy and energy efficiency is established within the division of community
services. The office shall assist in the development of renewable energy within this state to provide
secure, diverse, sustainable, and competitive renewable energy supplies and promote the conservation
of energy and the wise use of energy resources in both the public and private sectors. The office shall
communicate and disseminate information concerning state and federal energy conservation and
renewable energy incentives, including tax credits, financing and grants to business entities seeking to
invest in wind-generated power and transmission, ethanol production and distribution, and the
development of biodiesel, green diesel, biomass, solar, hydropower, geothermal, and other renewable
energy sources. The office also shall manage and distribute all production incentive payments as
authorized by chapter 17-02.
SECTION 4. REPEAL. Chapter 17-02 of the North Dakota Century Code is repealed.
SECTION 5. TRANSFER - ETHANOL PRODUCTION INCENTIVE FUND TO LOW -CARBON
FUELS FUND. The office of management and budget shall transfer any remaining balance from the
ethanol production incentive fund to the low-carbon fuels fund on July 1, 2025. S. B. NO. 2333 - PAGE 3
____________________________ ____________________________
President of the Senate Speaker of the House
____________________________ ____________________________
Secretary of the Senate Chief Clerk of the House
This certifies that the within bill originated in the Senate of the Sixty-ninth Legislative Assembly of North
Dakota and is known on the records of that body as Senate Bill No. 2333.
Senate Vote:Yeas 42 Nays 2 Absent 3
House Vote: Yeas 65 Nays 25 Absent 4
____________________________
Secretary of the Senate
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