This bill establishes a new section in the North Dakota Century Code to create a low-carbon fuels fund, which will be a special fund in the state treasury. The fund will consist of moneys transferred from vehicle registration fees and will be used to provide low-carbon fuels incentives and carbon intensity verification. The commissioner will distribute incentives to ethanol production facilities for eligible capital projects aimed at improving efficiency and reducing carbon intensity, with specific limits on the amount of funding available per facility and per biennium. Additionally, the commissioner is authorized to use up to one million dollars from the fund to develop a carbon intensity verification process and is required to report on the fund's status biennially.

The bill also amends existing laws regarding the distribution of vehicle registration fees, redirecting funds previously allocated for ethanol production incentives to the new low-carbon fuels fund. It repeals the chapter related to ethanol production incentives and transfers any remaining balance from that fund to the low-carbon fuels fund by July 1, 2025. The office of renewable energy and energy efficiency will continue to promote renewable energy development and manage information related to energy conservation and renewable energy incentives, but it will no longer manage production incentive payments as previously authorized.

Statutes affected:
INTRODUCED: 39-04-39, 54-44.5-09