The North Dakota Senate convened on May 1, 2025, to discuss several key legislative measures, including an oil well development incentive program and the budget for the Department of Corrections and Rehabilitation.
One of the most significant discussions centered around Senate Bill 2397, which aims to incentivize oil well development through a tax exemption on the extraction tax for newly developed wells. The bill outlines a structured approach where companies can receive a tax exemption on the first 250,000 barrels produced within the first 36 months. The program is designed to encourage the use of innovative drilling techniques that can unlock previously underdeveloped oil reserves. The Senate adopted the conference committee report for this bill with a strong majority, passing it with 42 votes in favor and only 4 against.
In addition to the oil incentive program, the Senate also addressed Senate Bill 2015, which pertains to the budget for the Department of Corrections and Rehabilitation. This bill includes funding for pay equity for correctional officers and adjustments to payments for county facilities housing state inmates. Notably, the bill removed funding for a diversion and deflection center in Fargo, replacing it with a study to evaluate future needs. The Senate passed this budget with a vote of 40 to 6.
Another important topic was House Bill 1577, which establishes a wastewater infrastructure grant program. This bill received unanimous support, passing with 42 votes in favor. The funding is aimed at supporting two shovel-ready projects that had previously lost federal grant support.
Lastly, the Senate discussed House Bill 1003, which involves appropriations for the Attorney General's office. This bill faced some contention regarding the addition of a public information officer and a proposed vaping product directory. Ultimately, the Senate rejected the conference committee report on this bill after a verification vote, indicating ongoing concerns about its provisions.
Overall, the session highlighted the Senate's commitment to advancing energy development, public safety, and infrastructure improvements while navigating complex budgetary considerations. The next steps will involve further discussions and potential revisions to the rejected House Bill 1003 as the legislative session progresses.