Representative Anna Novak (R‑District 33) and Jonathan Fortner of the Lignite Energy Council presented House Bill 12‑79 to extend coal conversion tax relief for lignite power plants, saying the measure helps keep electricity affordable and preserves jobs tied to mines and plants.

Nut graf: Industry witnesses told the committee that the coal conversion tax holiday supported plant economics during a period of regulatory and market pressure; proponents described modest state cost in return for preserving a stable generation fleet and associated local economic activity.

Novak told the committee the bill is “about protecting affordable energy for every North Dakotan” and framed lignite plants as a reliable base resource. Jonathan Fortner, testifying for the Lignite Energy Council, outlined the policy history: the five‑year holiday applied during earlier market stress and was used again after 2021 to preserve plant operations. Fortner said legal costs and federal regulatory uncertainty remain high and that the industry spent more than $5,000,000 on legal fees over recent years.

Fortner said the Senate position would limit the extension to three years (as a compromise), costing roughly $10.5 million in reduced state receipts under that proposal; the House had initially offered a 10‑year full exemption. He described the industry’s economic footprint: about $5.5 billion in annual economic output, 12,000 jobs across mines and plants and roughly $100 million in tax revenue annually, about 85% of which goes to the state.

Committee members asked implementation questions about the fiscal note, county shares and how the exemption is split; Fortner and staff clarified the bill exempts a portion of the state share of the coal conversion tax while county shares and other levies remain unaffected. Fortner also described the interplay of regional electricity markets (Southwest Power Pool and MISO) and how coal plant retirements elsewhere affect market dynamics.

Ending: The committee closed the hearing on House Bill 12‑79 without a final vote. Senators indicated they will continue to consider the House and Senate positions and that the bill will return later in session for further action.