The North Dakota Legislature's Conference Committee meeting on April 29, 2025, focused on key financial discussions regarding the state's budget and specific appropriations. A significant topic was the reduction of the payment in lieu of taxes (PILT) for CO2 projects, which will see a decrease of $1 million from the general fund, bringing the total to $2 million. This payment is mandated by state law to support counties hosting CO2 gathering lines, a practice that has been in place since the early 1990s.

Committee members expressed concerns about the initial estimates for the biennium being higher than necessary, suggesting that if funds are not fully utilized, they will be returned at the end of the biennium. In cases of shortfalls, counties can seek assistance from the emergency commission or request a deficiency appropriation in the next legislative session.

The discussion also highlighted the historical context of the PILT payments, which are designed to incentivize CO2 projects that support coal plants and enhanced oil recovery. The last qualifying project for these payments was noted to have occurred in 1999, indicating a long gap in new projects benefiting from this funding.

Additionally, the committee addressed staffing concerns within the auditor's office, with discussions about potential increases in funding for accountants to manage the financial implications of these appropriations. The meeting concluded with a clear understanding of the financial strategies moving forward, including the mechanisms for addressing any future funding shortfalls related to CO2 projects.

Overall, the meeting underscored the state's ongoing commitment to supporting CO2 initiatives while managing budgetary constraints effectively.