Bill Summary – FastDemocracy

1168.01000
     Sixty-eighth
     Legislative Assembly                     HOUSE BILL NO. 1546
     of North Dakota
     Introduced by
       Legislative Management
  A BILL for an Act to amend and reenact section 54-63.1-04 of the North Dakota Century Code,
  relating to the clean sustainable energy authority's fertilizer development incentive program; to
  provide for retroactive application; and to provide an effective date.
  BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
      SECTION 1. AMENDMENT. Section 54-63.1-04 of the North Dakota Century Code is
  amended and reenacted as follows:
      54-63.1-04. Clean sustainable energy authority - Duties - Report.
      1.   The authority shall make recommendations to the commission for program guidelines,
           including eligibility criteria for entities to receive funding under this chapter.
     2.   The nonvoting technical advisors shall develop a process to review and evaluate
          projects to determine the technical merits and feasibility of any application, including
          potential benefits of the development of low-emission technology, the expansion of the
          development of the state's natural resources or energy production, and the
          contribution to the economic diversity in the state.
     3.   The authority may develop a loan program or a loan guarantee program under the
          clean sustainable energy fund. The Bank of North Dakota shall administer the loan
          program or loan guarantee program. The interest rate of a loan under this program
          may not exceed two percent per year. The maximum term of a loan under this section
          must be approved by the commission based on a recommendation from the authority.
          The Bank shall review applications for loans or loan guarantees and shall consider the
          business plan, financial statements, and other information necessary to evaluate the
          application. To be eligible for a loan or loan guarantee, an entity shall agree to provide
          the Bank of North Dakota with information as requested. The Bank of North Dakota
          may develop policies for loan participation with local financial institutions.
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     Legislative Assembly
      4.   The authority shall make recommendations to the commission for grant awards, loan
           approvals, or other financial assistance to provide funding to support research,
           development, and technological advancements for the large scale development and
           commercialization of projects, processes, activities, and technologies that reduce
           environmental impacts and increase sustainability of energy production and delivery in
           accordance with this chapter. Any projects, processes, activities, and technologies
           selected by the commission for funding must have been recommended by the
           authority, must demonstrate feasibility based on a technical review conducted by the
           nonvoting technical advisors of the authority, must have other sources of financial
          support, and must achieve the priorities and purposes of the program. At the request
          of the authority, the Bank of North Dakota shall provide a recommendation regarding
          the economic feasibility of a project, process, activity, or technology under
          consideration by the authority. The Bank shall review the business plan, financial
          statements, and other information necessary to provide a recommendation.
     5.   The authority shall develop a fertilizer development incentive program, including
          guidelines to provide loan forgiveness. Funding for the fertilizer development incentive
          program under this subsection is limited to one hundred twenty-five million dollars.
          a.   To be eligible for the fertilizer development incentive program:
               (1)   The fertilizer production facility must be located within the state;
               (2)   The owner of the fertilizer production facility must be an entity domiciled in
                     the United States or Canada;
               (3)   The owner must borrow money under a program administered by the Bank
                     of North Dakota; and
               (4)   The fertilizer production facility must use hydrogen produced by the
                     electrolysis of water.
          b.   Upon completion of the construction of the fertilizer production facility, the
               authority shall forgive the loan and shall use fertilizer development incentive
               funding to repay any outstanding amount borrowed, as certified by the Bank. The
               authority shall request an appropriation from the strategic investment and
               improvements fund or other funding sources to provide fertilizer development
               incentive funding to repay any outstanding amount borrowed.
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    Legislative Assembly
     6.   The authority may consult with any other state agency necessary to carry out the
          purposes under this chapter.
   6.7.   Each biennium, the authority shall provide a written report to the legislative
          management regarding its activities and the program's financial impact on state
          revenues and the state's economy.
     SECTION 2. RETROACTIVE APPLICATION. This Act applies retroactively to July 1, 2023.
     SECTION 3. EFFECTIVE DATE. This Act becomes effective immediately upon its filing with
 the secretary of state.
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Statutes affected: 
INTRODUCED: 54-63.1-04
Enrollment: 54-63.1-04