Bill Summary – FastDemocracy

3091.01000
     Sixty-seventh
     Legislative Assembly                      SENATE CONCURRENT RESOLUTION NO. 4012
     of North Dakota
     Introduced by
       Senator Wardner
       Representative Pollert
 A concurrent resolution to establish a state policy to support the reliability and resilience of the
 electric grid, ensure price transparency to consumers in electric markets, and incentivize carbon
 capture utilization and storage as an alternative to preserve dispatchable thermal electric
 generation and its associated benefits.
       WHEREAS, the welfare of the citizens and economic security of this state depends on the
 reliability and resilience of electric power supply; and
       WHEREAS, maintaining a reliable and resilient grid with a combination of resources that
 has dependence on thermal electric generation fueled by abundant domestic coal and natural
 gas is essential to domestic energy and geopolitical security; and
       WHEREAS, the variability of nondispatchable energy that is subsidized presents major
 challenges to the independent system operators responsible for the bulk power system
 reliability and resilience as they have less dispatchable thermal electric generation available;
 and
       WHEREAS, electric power markets have been distorted by direct and indirect subsidies
 which has resulted in the undervaluation of dispatchable thermal electric power plants that are
 now at risk of early retirement that will further erode electric grid reliability and resilience; and
       WHEREAS, regional utilities have announced plans to retire coal-fired electric generation
 facilities located in North Dakota and the region before the facilities' established depreciable
 lives while simultaneously making significant investments in nondispatchable energy projects;
 and
       WHEREAS, these announcements create an urgent need for North Dakota to take actions
 to make clear the value of dispatchable power and address market distortions created by
 production of nondispatchable power both locally and regionally; and
       WHEREAS, in both the Southwest Power Pool and Midcontinent Independent System
 Operator, state and federal policies mandating and incenting the deployment of significant
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     Sixty-seventh
     Legislative Assembly
 nondispatchable energy are imposing reliability and resilience penalties on the bulk power
 system relied upon by the citizens and industries of North Dakota without due compensation for
 the true and total cost of those penalties; and
       WHEREAS, planning by the Midcontinent Independent System Operator and the Southwest
 Power Pool includes major additions of transmission lines, synchronous condensers, static
 compensators, and other devices to provide grid attributes that are lost as dispatchable
 resources retire; and
       WHEREAS, economics and scaling issues currently remain a challenge for energy storage
 technologies to provide sufficient capacity to replace dispatchable thermal electric generation
 and provide grid support; and
       WHEREAS, North Dakota has long served as an energy producer and exporter for the
 Midwest and the nation and is situated uniquely to advance and benefit from carbon capture
 utilization and storage projects due to the state's significant lignite reserves and associated
 lignite-fired thermal electric generation and coal conversion facilities, geologic formations, the
 state's significant natural gas capture and electric power development opportunities, as well as
 the state's significant oil reserves that have high potential for enhanced oil recovery utilizing
 anthropogenic carbon dioxide captured from lignite- and gas-fired thermal electric generation;
 and
       WHEREAS, developing carbon capture utilization and storage projects in North Dakota will
 result in significant state and local revenue and employment benefits by preserving lignite mines
 and associated thermal electric generation plants while creating new employment and revenue
 opportunities associated with the construction and operation of carbon capture, power plant,
 and enhanced oil recovery projects; and
       WHEREAS, additional opportunities will be created by utilization of electricity onsite through
 both carbon capture utilization and installation of complimentary operations that use high
 amounts of electricity, creating products onsite not necessary to ship to market, further reducing
 capacity utilizing the transmission system, and creating space for additional technology neutral
 electric generation in future years; and
       WHEREAS, by deploying carbon capture utilization and storage and other onsite electricity
 consumption projects in North Dakota using lignite, natural gas, power plant, and other
 cutting-edge technology and workers from North Dakota to produce reliable and affordable
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     Sixty-seventh
     Legislative Assembly
 electric generation for its citizens and its industry, as well as other products, North Dakota not
 only will benefit in the short term economically, it will improve reliability and affordability
 throughout the Midwest and ensure the ability to be a world leader in deploying carbon capture
 utilization and storage projects globally, ensuring developing nations the ability to provide
 low-carbon, reliable energy to their citizens; and
     WHEREAS, the system of regulatory oversight does not ensure sufficiently the reliability
 and resilience of the electric grid because of market distortion and unrealistic electricity
 production mandates from states, driving regional transmission operators in their dispatch
 policies; and
     WHEREAS, the combination of direct and indirect subsidies are hidden in the cost to the
 ratepayer, preventing ratepayers from knowing the true and total cost of the electric power
 purchased; and
     WHEREAS, the use of direct and indirect subsidies in the market have increased the cost
 of electricity to the ratepayer; and
     WHEREAS, regional transmission operator policy decisions lead to premature retirement
 analyses that do not consider adequately the reliability and resilience penalties of renewable
 nondispatchable energy. Nor do they adequately scrutinize premature retirement decisions by
 requiring analysis and compensation for decarbonization by installation of carbon capture
 utilization and storage technologies, which help meet carbon reduction goals; allow additional
 energy generation to utilize the transmission system; and bring significant economic,
 employment, and energy security benefits to North Dakota and the United States; and
     WHEREAS, robust and diverse production of all natural resources for electric generation
 within the state of North Dakota should be maintained while providing stable and affordable
 electricity benefits to North Dakota and its citizens, along with the electrical grid connected to
 the surrounding region; and
     WHEREAS, power producers and developers of electric generating projects in the state
 should maintain access to reliable and cost-effective generation resources and ensure access
 to such resources, including coal, natural gas, hydroelectric, wind, solar, and battery technology
 and other future technologies; and
     WHEREAS, priority should be given to industries working together to achieve overall best
 practices by integrating aspects of multiple industries to achieve the best overall results; and
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     Legislative Assembly
       WHEREAS, use of waste heat, carbon recycling, hybrid generation resources, energy
 storage, and new technologies that contribute to a reliable grid, overall energy efficiency, and
 reasonable cost are all part of this vision;
       NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF NORTH DAKOTA, THE
 HOUSE OF REPRESENTATIVES CONCURRING THEREIN:
       That a state policy is established to support the reliability and resilience of the electric grid,
 establish inherent value of dispatchable energy, ensure price transparency to consumers in
 electric markets, and incentivize carbon capture utilization and storage as an alternative to
 preserve dispatchable thermal electric generation and its associated benefits; and
       BE IT FURTHER RESOLVED, that the Public Service Commission shall coordinate with
 regional transmission organizations to ensure and develop policies reflected above which
 provide reliable, dispatchable power for the region in an effective and consistent manner,
 discourage premature retirement of our thermal electric power generation fleet, and encourage
 installation of carbon capture utilization and storage technologies to help meet decarbonization
 and reliability goals of the region in an effective and consistent manner; and
       BE IT FURTHER RESOLVED, that the North Dakota Transmission Authority develop an
 integrated resource plan for North Dakota every two years by collecting publicly available
 information and other requested information from our state's utilities and utilize this information
 to coordinate with regional transmission organizations to ensure both local and regional grid
 reliability as well as to develop a plan to enhance and expand transmission within North Dakota
 to continue our strong tradition of being an energy exporter to our region and the United States;
 and
       BE IT FURTHER RESOLVED, that the Secretary of State forward a copy of this resolution
 to the Public Service Commission; North Dakota Transmission Authority; North Dakota
 Congressional Delegation; Midwest Independent System Operator; and Southwest Power Pool.
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