An act to amend and reenact sections 54-63.1-03 and 54-63.1-07 of the North Dakota Century Code, relating to the membership of the clean sustainable energy authority and the clean sustainable energy fund line of credit; , the official text

Sixty-ninth Legislative Assembly of North Dakota In Regular Session Commencing Tuesday, January 7, 2025
SENATE BILL NO. 2188 (Senators Patten, Kessel, Sickler) (Representatives Bosch, Novak, Porter)
AN ACT to amend and reenact sections 54-63.1-03 and 54-63.1-07 of the North Dakota Century Code, relating to the membership of the clean sustainable energy authority and the clean sustainable energy fund line of credit; and to provide for a transfer.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA: SECTION 1. AMENDMENT. Section 54-63.1-03 of the North Dakota Century Code is amended and
reenacted as follows: 54-63.1-03. Clean sustainable energy authority - Membership - Meetings. 1. The clean sustainable energy authority consists of seventeeneighteen members, including nine voting members and eightnine nonvoting technical advisors. 2. The nine voting members consist of: a. Two members, one from the senate and one from the house of representatives, appointed by the legislative management to serve as co-chairmen; b. Two members appointed by the lignite research council; c. Two members appointed by the oil and gas research council; d. Two members appointed by the renewable energy council; and e. One member appointed by the western Dakota energy association. 3. The eightnine nonvoting technical advisors consist of: a. One member appointed by the North Dakota outdoor heritage fund advisory board; b. The commissioner of commerce or the commissioner's designee; c. The director of the department of environmental quality or the director's designee; d. The director of the department of water resources or the director's designee; e. The director of mineral resources or the director's designee; e.f. The director of the North Dakota pipeline authority or the director's designee; f.g. The director of the North Dakota transmission authority or the director's designee; g.h. The director of the state energy research center or the director's designee; and h.i. The president of the Bank of North Dakota or the president's designee. 4. The term of office for each co-chairman is two years. The term of office for the other voting members is four years, and the other voting members may not serve more than two consecutive terms. The terms of office for the voting members commence on July first. The initial terms for the voting members of the authority must be staggered following a method determined by the authority.

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5. The authority shall meet at least semiannually. The co-chairmen shall call a meeting upon written request from three voting members of the authority. Five voting members is a quorum at any meeting.
6. The authority may not forward a recommendation to the commission unless the recommendation fulfills the purposes of this chapter and is approved by a majority of the voting members of the authority.
SECTION 2. AMENDMENT. Section 54-63.1-07 of the North Dakota Century Code is amended and reenacted as follows:
54-63.1-07. Clean sustainable energy fund - Continuing appropriation - Line of credit Loans - Repayments.
1. There is created in the state treasury the clean sustainable energy fund. The fund consists of all moneys transferred to the fund by the legislative assembly; loan proceeds; interest upon moneys in the fund; principal and interest payments to the fund; and donations, grants, and other contributions received by the commission for deposit in the fund. All moneys in the fund are appropriated to the commission on a continuing basis to provide grants, loans, and other financial assistance and for administrative and operating costs of the authority and program pursuant to the provisions under this chapter.
2. Any bond proceeds deposited in the fund must be used for loans or loan guarantees. The Bank of North Dakota shall deposit in the fund all principal and interest paid on the loans made from the fund. The Bank may use a portion of the interest paid on the outstanding loans as a servicing fee to pay for administrative costs, not to exceed one-half of one percent of the amount of the interest payment. The fund must be audited annually pursuant to section 6-09-29, and the cost of the audit must be paid from the fund.
3. The Bank of North Dakota shall extend a line of credit to the industrial commission to support loans or loan guarantees issued from the clean sustainable energy fund. The line of credit may not exceed three hundred ninety million dollars, and the interest rate associated with the line of credit must be the prevailing interest rate charged to North Dakota governmental entities. The industrial commission shall repay the line of credit from moneys available in the clean sustainable energy fund derived from payments received on loans issued under this chapter or other sources. If the moneys available from the clean sustainable energy fund on June 30, 20252029, are not sufficient to repay the line of credit, the industrial commission shall request from the legislative assembly a deficiency appropriation to repay the line of credit or the industrial commission may repay the line of credit from other funds, as appropriated by the legislative assembly.
4. The industrial commission may access the line of credit to the extent needed through June 30, 20252029, to provide funding as authorized by the legislative assembly to support loans or loan guarantees issued from the clean sustainable energy fund. Any moneys borrowed from the Bank of North Dakota pursuant to this section must be transferred to the clean sustainable energy fund to support loans or loan guarantees.
SECTION 3. TRANSFER - STRATEGIC INVESTMENT AND IMPROVEMENTS FUND - CLEAN SUSTAINABLE ENERGY GRANTS AND LOANS. During the biennium beginning July 1, 2025, and ending June 30, 2027, the office of management and budget shall transfer the sum of $50,000,000 from the strategic investment and improvements fund to the clean sustainable energy fund, as follows:
1. $10,000,000 for grants; and 2. $40,000,000 to repay a line of credit and to provide funding for loans.

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____________________________ President of the Senate

____________________________ Speaker of the House

____________________________ Secretary of the Senate

____________________________ Chief Clerk of the House

This certifies that the within bill originated in the Senate of the Sixty-ninth Legislative Assembly of North Dakota and is known on the records of that body as Senate Bill No. 2188.

Senate Vote: House Vote:

Yeas 45 Yeas 65

Nays 1 Nays 26

Absent 1 Absent 3

____________________________ Secretary of the Senate
Received by the Governor at ________M. on _____________________________________, 2025. Approved at ________M. on __________________________________________________, 2025.

____________________________ Governor
Filed in this office this ___________day of _______________________________________, 2025, at ________ o’clock ________M.

____________________________ Secretary of State