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Conference report on Industrial Commission budget funds pipeline capacity plan but ties purchases to progress by 2026

May 02, 2025 | Senate, Legislative, North Dakota


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Conference report on Industrial Commission budget funds pipeline capacity plan but ties purchases to progress by 2026
The Senate adopted the conference committee report for Senate Bill 2014, the Industrial Commission budget, which includes provisions authorizing a state capacity‑participation program and a borrowing mechanism to support a proposed West‑to‑East natural gas pipeline.

Sponsor Senator Scheible told the floor the package continues policy direction from the prior session to ensure natural gas produced in the Bakken can be moved east without impeding oil production. He said the legislature will "authorize a hundred and $60,000,000 to guarantee a program utilized by Bank of North Dakota" to underwrite a capacity participation program, and authorized the North Dakota Pipeline Authority to borrow up to $100 million via a line of credit to support capacity purchases.

The conference report adds deadlines and reporting requirements intended to limit long‑term state exposure: authority to commit capacity purchases must show meaningful progress, and if no purchase is committed by Dec. 31, 2026, the pipeline authority's credit line authority reverts.

Why it matters: Oil and gas taxes represent a large share of state revenue in producing regions; sponsors said moving associated gas for value capture protects oil production tax revenues and creates opportunities to add value in‑state. The funding approach is structured as capacity guarantees and a line of credit, not as a direct ongoing subsidy to the developer, conferees said.

Other material changes in the conference report

- The report reduces a House proposal and reconciles other funding lines; it also removed a prior 10‑year commitment by adding progress checkpoints.

- Language was included to remove new funding for the Clean Sustainable Energy Authority for the 2025‑27 biennium; funds previously authorized were returned to the strategic investment account to make room for pipeline funding.

Votes and next steps

The conference committee report was adopted and Senate Bill 2014 passed final reading on the Senate floor by a vote of 42 yea, 3 nay, 1 absent. Implementation depends on the Pipeline Authority meeting the reporting and progress milestones spelled out in the conference text; Senate conferees said further legislative oversight and budget committee review will follow as needed.

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