North DakotaSB 20142025 Regular SessionSenateWALLET

AN ACT to provide an appropriation for defraying the expenses of the industrial commission and the agencies under its control; to create and enact a new section to chapter 6-09 and a new subdivision to subsection 2 of section 38-08-04.5 of the North Dakota Century Code, relating to a rail revolving loan fund and uses of the abandoned oil and gas well plugging and site reclamation fund; to amend and reenact subsection 7 of section 6-08.1-02 and sections 6-09-35, 6-09-46.2, 6-09.7-05, 6-09.14-04, and 49-17.1-02.1, subsection 1 of section 54-17-40, and subdivision a of subsection 4 of section 54-17.7-04 of the North Dakota Century Code, and section 15 of chapter 14 of the 2023 Session Laws, relating to confidential and exempt records of the Bank of North Dakota, the rebuilders loan program, loan guarantees through the strategic investment and improvements fund, interest rate buydown limits for the partnership in assisting community expansion fund, department of transportation review and approval of rail projects, uses of the housing incentive fund, North Dakota pipeline borrowing authority, and a salt cavern underground energy storage research project; to repeal section 3 of Senate Bill No. 2188, as approved by the sixty-ninth legislative assembly, relating to a transfer from the strategic investment and improvements fund to the clean sustainable energy fund; to provide a deficiency appropriation; to provide for a transfer; to provide an exemption; to provide for a legislative management study; to provide for a legislative management report; to provide for a report; to provide an effective date; and to declare an emergency.

Sponsored By: Senate Appropriations

Signed by Governor

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Bill Overview

Analyzed Economic Effects

15 provisions identified: 11 benefits, 1 costs, 3 mixed.

Larger interest subsidies for qualifying businesses

Qualifying new or expanding businesses can receive up to $1 million beyond the existing $500,000 interest-subsidy limit per loan. The Bank of North Dakota must find substantial economic impact and classify the project as a primary sector business. The extra subsidy requires no community match. Support is limited to what lowers the interest rate to five percentage points below the national prime rate. Loans cannot refinance existing debt or pay for a business move within North Dakota.

Rebuilding loans reach more affected residents

North Dakota residents can seek Rebuilders loans after presidentially or governor-declared disasters, state emergencies, or governor-recognized weather incidents or economic hardships. The Bank of North Dakota must develop programs addressing these needs, with loans routed through originating financial institutions. For disaster or emergency declarations, applications can remain open no longer than 18 months after the declaration. A permanent loan fund has ongoing spending authority; most repayments return to it, and the Bank can deduct an administrative fee. The law does not set individual loan amounts, rates, or repayment terms.

More funding for housing and homelessness

For July 2025–June 2027, the law transfers $25 million for housing projects and $10 million for homelessness programs. The Housing Finance Agency must provide $150,000 to a Native American-focused organization serving multiple communities for a homelessness liaison. The agency takes over the Housing Incentive Fund from the Bank of North Dakota, with ongoing authority to fund assistance. Administrative transfers require legislative approval; the law authorizes $213,880 for administrative costs, including a homelessness program position and liaison grant. These changes do not set new household payment amounts or eligibility rules.

Funding supports lignite studies and marketing

The law allows up to $4.5 million from the lignite research fund for specified studies and supporting work. Independent marketing feasibility studies require no matching funds. They must identify priorities that could preserve or increase lignite production, industry jobs, private investment, or economic growth. Authorized work also includes technology development, litigation support, and marketing, environmental, or transmission activities.

Library project gets interest rate support

During July 2025–June 2027, up to $5 million in Bank of North Dakota earnings can go to Parks and Recreation. The money supports lower interest on the Theodore Roosevelt presidential library project's line of credit. Support can reduce the prevailing governmental borrowing rate to 2%. It cannot exceed the amount needed to reach that rate on the outstanding balance.

More borrowing allowed for gas pipeline

The North Dakota Pipeline Authority can borrow $40 million more, raising its total permitted borrowing from $60 million to $100 million. The added Bank of North Dakota credit requires a capacity purchase agreement signed by December 31, 2026. That agreement must concern a natural-gas pipeline from western to eastern North Dakota. Interest must match the prevailing rate charged to North Dakota governmental entities.

New grants support enhanced oil recovery

For July 2025–June 2027, the Industrial Commission uses $25 million from the oil and gas research fund for enhanced oil recovery grants. The Commission sets eligibility rules, matching-fund requirements, and reporting requirements. The law does not set individual grant amounts.

New loans for freight rail upgrades

A new Bank of North Dakota revolving fund lends to counties, cities, railroads, and other freight rail users. Loans support rail construction or upgrades that improve service; Class I railroads are excluded. Applicants must show reasonable assurance of future income to repay, and the Department of Transportation must approve each project. The fund has ongoing spending authority for loans and administration. Its servicing fee cannot exceed 0.5% of outstanding loans.

Unspent energy agency funds remain available

Specified unspent appropriations remain available for July 1, 2025–June 30, 2027, instead of expiring. They include $1.25 million for grant software and $75,000 for records digitization. Grid resilience amounts include $1.124856 million in general funds and $7.499037 million in federal funds. The law also carries forward $3.2 million for grants converting abandoned oil wells to water supplies and $800,000 for a survey review. Up to $225,500 remains available for abandoned-well reclamation administration.

Funding supports a more reliable grid

The law provides $13.668089 million for an electricity grid resilience federal grant during July 2025–June 2027. This includes $1.782794 million from the Strategic Investment and Improvements Fund to match federal money. Utilities and other project entities can receive support for grid resilience work. The law sets no household payment or guaranteed bill savings.

More financing support for businesses and farms

During July 2025–June 2027, the Bank of North Dakota transfers $60 million from earnings and profits to economic development programs. These include community expansion, agriculture, biofuels, and beginning-farmer loan funds. The Bank also transfers $1.9 million to the University of North Dakota's Small Business Development Center to match federal grants. Beginning July 1, 2027, the total transfer ceiling for the loan-guarantee reserve rises from $140 million to $160 million. That reserve reimburses lenders for defaulted guaranteed loans; the higher ceiling does not require a transfer.

Clean energy fund transfer is repealed

The law repeals a previously approved transfer provision for the clean sustainable energy fund. That provision concerned money from the Strategic Investment and Improvements Fund. This repeal does not state the transfer amount or identify replacement funding.

Bank records become more selectively public

The law allows release of specified Bank of North Dakota financing records mainly involving business or other non-household purposes. These include recipients' names, financing amounts, programs, and certain writeoffs or forgiven loans the Industrial Commission finds uncollectible. The rule covers direct and indirect financing or security, including guarantees and letters of credit. Separately, the Bank's bond insurance and cyber liability coverage records, including excess coverage, become exempt from public disclosure.

Salt cavern research funding sources shift

The salt cavern research project's state-fund distribution limit falls from $6 million to $2 million. The law also allows up to $5.3 million in federal funds and transfers $6 million into the State Energy Research Center Fund. Research must assess the business case for up to two caverns storing natural gas, liquefied natural gas, natural gas liquids, or hydrogen. Before payment, the Industrial Commission must receive assurance of financial or other support from at least one nonstate partner. The research center must provide quarterly Commission reports and at least one interim report to Legislative Management.

Well cleanup funds can cover administration

The abandoned oil and gas well plugging and site reclamation fund can now pay administrative expenses. These include salaries, wages, and operating costs, subject to legislative appropriation. The law appropriates $799,926 from the fund for administration. This supports program operations while using money otherwise available for other authorized fund purposes.

Sponsors & Cosponsors

Sponsor

  • Senate Appropriations

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 233 • No: 37

House vote • 5/2/2025

Second reading, passed as amended, yeas 74 nays 15

Yes: 74 • No: 15

Senate vote • 5/2/2025

Second reading, passed, yeas 42 nays 3, Emergency clause carried

Yes: 42 • No: 3

House vote • 4/24/2025

Second reading, passed as amended, yeas 71 nays 19

Yes: 71 • No: 19

Senate vote • 2/24/2025

Second reading, passed, yeas 46 nays 0

Yes: 46 • No: 0

Actions Timeline

  1. Filed with Secretary Of State 05/19

    6/11/2025House
  2. Signed by Governor, but item veto 05/19

    5/17/2025Senate
  3. Sent to Governor

    5/2/2025Senate
  4. Signed by President

    5/2/2025Senate
  5. Signed by Speaker

    5/2/2025House
  6. Emergency clause carried

    5/2/2025House
  7. Second reading, passed as amended, yeas 74 nays 15

    5/2/2025House
  8. Conference committee report adopted

    5/2/2025House
  9. Reported back from conference committee, in place of, placed on calendar

    5/2/2025House
  10. Second reading, passed, yeas 42 nays 3, Emergency clause carried

    5/2/2025Senate
  11. Conference committee report adopted

    5/2/2025Senate
  12. Reported back from conference committee, in place of, placed on calendar

    5/2/2025Senate
  13. Conference committee report rejected

    5/1/2025Senate
  14. Reported back from conference committee, in place of, placed on calendar

    5/1/2025Senate
  15. Conference committee appointed Kempenich Monson Bosch

    4/25/2025House
  16. Conference committee appointed Schaible Sorvaag Bekkedahl

    4/25/2025Senate
  17. Refused to concur

    4/25/2025Senate
  18. Returned to Senate (12)

    4/25/2025Senate
  19. Second reading, passed as amended, yeas 71 nays 19

    4/24/2025House
  20. Amendment adopted, placed on calendar

    4/24/2025House
  21. Reported back amended, do pass, amendment placed on calendar 21 1 1

    4/23/2025House
  22. Committee Hearing 02:30

    3/27/2025House
  23. Committee Hearing 02:30

    3/20/2025House
  24. Committee Hearing 10:00

    3/20/2025House
  25. Committee Hearing 02:30

    3/12/2025House

Bill Text

  • Enrollment

  • FIRST ENGROSSMENT

  • FIRST ENGROSSMENT with Conference Committee Amendments

  • FIRST ENGROSSMENT with House Amendments

  • INTRODUCED

  • Prepared by the Legislative Council staff for Conference Committee

  • Prepared by the Legislative Council staff for House Appropriations - Government Operations Division Committee

  • Prepared by the Legislative Council staff for Senate Appropriations - Education and Environment Division Committee

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