[{"_1":2,"_123":-5,"_124":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,99,111],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6349622,"mediaKeyId","2238068-0c96381afb03ef53479501c5fd8f90ee","parentId",2238068,"title","Bill would limit tax breaks for long CO2 pipelines used for sequestration; sponsors cite changing scale of projects","audioSeconds",3240,"startMs",4757000,"endMs",7997000,"viewUrl","/Search/View?dp=1&key=2238068-0c96381afb03ef53479501c5fd8f90ee&start=4757&end=7997","thumbnailUrl","https://assets.pipeline.soar.com/2238068-0c96381afb03ef53479501c5fd8f90ee/thumbnail_4757000.jpg","articleUrl","/articles/6349622/North-Dakota/Bill-would-limit-tax-breaks-for-long-CO2-pipelines-used-for-sequestration-sponsors-cite-changing-scale-of-projects","mediaUrl","https://secure.pipeline.soar.com/6349622-da64103a843082177c9b7a1d5c455c7f/orig.mp4?Expires=1775966347&Signature=oYB9xTId1KSZtSBYrHpRnNcU4j7VDKssvgiPsv060RjNvlw9PW9V4E~eCdKYI2j7~ltpixGXaeo13i5V0-gSuO4PSIo6n3yH-By8Yi72LBtlTHIAL40mMsneizPrGipt3opm5AiNjEZz43Vg32C~OhCxE2bEmwhU00pRGBJLys0hIWCeAWWfdYAGFQWWt65OqQyrHAmVPFf86gNDVm3DzVdkmPhuGDc1m6q6edo2pfSZb42VuCDLOi6QOyfR6AKHspCWeE1XE6OMZlXY5rwOSy-EIoufGlxxhUymi-uBbvQBioR8q8ryxYxNlmo~VpvNSBAfn-ei9ww~NG8AnJD7DQ__&Key-Pair-Id=KUT5TJCACFTXG","author","State of North Dakota","date","2025-02-03T00:00:00Z","article","Representative Jay Olson told the House Finance and Taxation Committee that House Bill 1295 as amended would remove tax exemptions for carbon dioxide pipelines when the CO2 is destined for permanent geologic storage and would preserve exemptions for pipelines used exclusively for enhanced oil recovery (EOR). Olson said the Century Code provisions currently cited in law (for example, North Dakota Century Code 57-6-17.1 for centrally assessed property taxation and section 57-39.2-04 for sales and use tax) were enacted when the original exemptions were intended for in-state uses and not for long interstate trunk lines.

\"Allowing a 10-year exemption to continue will be very costly for the state,\" Olson said, adding that a multi-state corridor of pipelines could multiply the state reimbursement owed to counties. Olson urged the committee to limit exemptions to activities that directly benefit North Dakota industries and suggested staff could further amend language to include coal or ethanol projects if the committee wished.

Supporters of the change included Dakota Resource Council and other local stakeholders who argued large projects that transport CO2 from out of state are being subsidized by North Dakota taxpayers while federal 45Q tax credits already provide significant incentives. Zachary Cassidy of Dakota Resource Council said federal funding through 45Q makes additional state exemptions unnecessary and that communities along a pipeline may incur costs for nuisance, traffic and emergency services.

Opponents, including the North Dakota Petroleum Council, Summit Carbon Solutions, the Lignite Energy Council, the North Dakota Ethanol Producers Association and the Greater North Dakota Chamber, urged a do-not-pass recommendation. The North Dakota Petroleum Council argued that repealing the exemptions would make large CO2 pipeline projects less economically viable and would discourage investment in enhanced oil recovery and carbon capture projects. Summit Carbon Solutions and others said the state's prior policy framework and permitting regime (including North Dakota's Class VI primacy and financial-assurance requirements) were designed to attract capital and that pulling exemptions now would undermine that effort.

Debate included procedural, technical and national-security concerns. Representative Sue Ann Olson raised whether changing rules midstream would affect projects under development; sponsors said some projects have not begun construction and that the federal incentive structure (45Q) dwarfs state exemptions in dollar terms, making the state exemptions less likely to be the deciding factor. Representative Porter and others questioned foreign investment reports attached to online testimony; sponsors and Summit representatives disputed claims that projects were owned by Chinese state interests and noted a mix of investors including U.S. and allied firms.

The committee heard extensive testimony on both sides; sponsors recommended further targeted amendments if the committee desired to exclude certain in-state industries (coal, ethanol) from the repeal. No committee vote occurred during the hearing.","mediaType","Video","parentTitle","House Finance and Taxation Feb 3, 2025","oneSentenceSummary","Representative Jay Olson told the committee House Bill 1295 would narrow tax exemptions for CO2 pipelines so the state exemptions apply only to pipelines used exclusively for enhanced oil recovery, not to pipelines whose primary purpose is permanent sequestration.","taxTitle","Finance and Taxation, House of Representatives, Legislative, North Dakota","taxId",28891,"location","North Dakota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6349612,"Citizen and sponsor ask legislature to cap general-fund growth at 3%",458,10767000,11225000,"/Search/View?dp=1&key=2238068-0c96381afb03ef53479501c5fd8f90ee&start=10767&end=11225","https://assets.pipeline.soar.com/2238068-0c96381afb03ef53479501c5fd8f90ee/thumbnail_10767000.jpg","/articles/6349612/North-Dakota/Citizen-and-sponsor-ask-legislature-to-cap-general-fund-growth-at-3","https://secure.pipeline.soar.com/6349612-815a9e415a13371f4846e6e6fa34de29/orig.mp4?Expires=1775966347&Signature=EivgYzDkejsDcricLXjhhrol8Na6DsqlJ2RCy7BSzNocp1IN8DkiXo3nl4D14AX1TmXCxq0Tky7gZe~SU-YT6ACfEDFOtCBFBaZiS8D9L490McM0SwxEqdQUsy5jwSGj~E0U0iIQYYawjXwbqYmLvFRxxXB9LAdf4FedFqM9vqRiCuIaxuXTpzwRpWhAHN2LBsp6FnglrIvgEpy3XZTiR1tNF1yJJazHYUxAcHsPSG2j6dYybsAJbEfykaone1Jvxont~hhQ8CK2YfwGpIVURRfetYoQEpDR~IT1eRF8KbfJNsvefSmjlLL-ThZ6kxODbbJefF83samKtcQJ-TODMA__&Key-Pair-Id=KUT5TJCACFTXG","Representative Christina Wolf introduced House Bill 1502, a citizen-requested measure that would limit increases in state general-fund appropriations to 3% of the prior approved general fund appropriation per biennium, allow unused portions to carry for up to three bienniums, and permit larger increases only by two-thirds votes of both legislative chambers.

Wolf said the bill mirrors constraints asked of political subdivisions in other proposals this session and reflects voter concerns about unchecked spending growth. She did not provide a decade-long chart of past general-fund growth in her oral remarks; committee members asked staff for historical growth numbers. Sponsor Mike Blessum, who testified in support, told the committee the legislative average general-fund growth figure from legislative council presentations is about 6.9% and urged lawmakers to impose self-restraint consistent with local caps under consideration.

Blessum urged the committee to consider a structural approach rather than episodic cuts: \"What I would say is that this would be self-imposed for you if you chose to,\" Blessum said, arguing the limit would demonstrate fiscal discipline at the state level and align with local property-tax constraints under consideration in other bills. He also noted a drafting point: the bill as introduced may read as limiting total appropriations to 3% of the prior budget rather than limiting growth; he urged a technical fix.

Committee members asked technical questions about whether the cap would affect transfers to political subdivisions and about the interaction with other funds (e.g., special funds that sit outside the general fund). Representatives noted that prior budget adjustments and special-session appropriations have addressed school and local obligations in past cycles and that structured limits would require detailed drafting to avoid unintended effects on statutory obligations and transfers.

No formal committee action was taken; sponsors asked the committee to consider the policy concept or an alternate structure such as CPI plus a cap or an agency-by-agency framework. The hearing record shows public testimony and support but no opposition signups at the close of the hearing.","Representative Christina Wolf presented a citizen-requested bill to cap biennial growth in the state general fund to 3%, with unused portions carryable for up to three bienniums and larger increases allowed only by a two-thirds vote of each chamber.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":46,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6349617,"Sponsor proposes $5/ton pore-space tax and $500 million disaster fund for CO2 sequestration",2560,10557000,"/Search/View?dp=1&key=2238068-0c96381afb03ef53479501c5fd8f90ee&start=7997&end=10557","https://assets.pipeline.soar.com/2238068-0c96381afb03ef53479501c5fd8f90ee/thumbnail_7997000.jpg","/articles/6349617/North-Dakota/Sponsor-proposes-5ton-pore-space-tax-and-500-million-disaster-fund-for-CO2-sequestration","https://secure.pipeline.soar.com/6349617-2bf90f1fd9e22fb25b63b22551179c2d/orig.mp4?Expires=1775966347&Signature=Zl5ZgM9eThw6nRmxXYerMvdCMHbDedbnli2caZQKHa2qgXyisOqd2BdCkcfKmjw5-q~8Gv8S~-3ZOIWj9WkIwtNUfSr5Ozs7sl69sVpA5lSJdME-voGXJkDuwnJd0GU9cTXK0Dc-phNnxCZROvfxnWQT3sru52CSRe77Zfj8tuOjLa1o~38Bt8m-mEZSV-mO2~Z2BSu0E9cOeZ6bCoNqUcESjwc4xPzNYbmv48Mn8uyyGXP6q0hAC-5U7MSKYtxU01vo~gT~8ZIAaNnNh6kOlPo6Ew9~~zfYXGEdjObNX1k8ZkcVZonbmQhixTGrek3l2bD1KvP8Fb-Gw7-rSBP3~A__&Key-Pair-Id=KUT5TJCACFTXG","Representative Sue Ann Olson told the committee that House Bill 1573 would impose a $5-per-ton tax on any substance transported more than 25 miles for permanent underground storage (\"pore space utilization\") and would deposit the first $500 million of proceeds into a new North Dakota Disaster Fund to pay cleanup, specialized response equipment and other emergency needs.

\"In North Dakota, we have a severance tax on oil and gas and coal because they are wasting resources,\" Olson said. \"Utilization of pore space is the same — it is finite and used up over time. ... The disaster fund will help supply equipment and training if they are needed beyond what is otherwise required to be supplied.\"

Olson cited international and domestic incidents — including reported CO2 leaks in Illinois and a cited report that averaged 4.1 CO2 accidents per year since 1988 — and argued volunteer rural emergency responders lack the resources and equipment to handle serious CO2 incidents. She said the 25-mile threshold was intended to exempt short, on‑site injection lines and to target trunk lines that bring CO2 into the state for sequestration.

Supporters including Dakota Resource Council urged passage, stressing the need for funds for emergency response, monitoring and nuisance mitigation. \"Giving our emergency responders and our communities the ability to have relief and to have the ability to manage these pipelines correctly and to respond to any new technological needs is crucial,\" Zachary Cassidy of Dakota Resource Council said.

Opponents — Summit Carbon Solutions, North Dakota Petroleum Council, Lignite Energy Council, ethanol producers and the Greater North Dakota Chamber — warned the tax would discourage investment and said existing regulatory and financial-assurance tools already obligate operators to carry insurance, post financial assurances and comply with Industrial Commission and Public Service Commission permit conditions. Summit representatives argued the bill risks constitutional commerce-clause problems by targeting interstate imports of CO2 and cited existing required insurance levels (the PSC required $100 million general liability and an additional $25 million property insurance for the North Dakota portion of a proposed pipeline) and state trust-fund mechanisms for emergency programs.

Other witnesses pointed to unintended consequences in the bill's drafting. The Department of Water Resources raised concerns that the measure as written could tax managed aquifer recharge projects (produced water recharge) and gave an example implying millions in added costs if the tax were applied to recharge volumes; industry witnesses warned the tax could also apply to saltwater disposal pipelines that currently operate in the Bakken and would produce large unanticipated costs.

Several committee members asked for clarification and for drafting fixes; sponsors said they were open to technical changes, including excluding produced water or short disposal systems from the tax. No committee vote was taken; the hearing record included extensive opposition and support and requests for drafting cleanup.","Rep. Sue Ann Olson proposed a $5-per-ton tax on substances transported more than 25 miles for permanent underground storage and creation of a $500 million disaster fund to cover emergency response and remediation costs.",{"_33":100,"_35":36,"_37":38,"_39":101,"_41":102,"_43":103,"_45":104,"_47":105,"_49":106,"_51":107,"_53":108,"_55":56,"_57":58,"_59":109,"_61":62,"_63":64,"_65":110,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6349627,"Committee hears industry push to extend coal conversion tax relief for 10 years",3446,1231000,4677000,"/Search/View?dp=1&key=2238068-0c96381afb03ef53479501c5fd8f90ee&start=1231&end=4677","https://assets.pipeline.soar.com/2238068-0c96381afb03ef53479501c5fd8f90ee/thumbnail_1231000.jpg","/articles/6349627/North-Dakota/Committee-hears-industry-push-to-extend-coal-conversion-tax-relief-for-10-years","https://secure.pipeline.soar.com/6349627-83e71279f756e42194c158e12f96eeec/orig.mp4?Expires=1775966347&Signature=JvxRkgSmuwOysrPTI5YOiuZGX2gXAoEDdLzPEyzgLvibAVBXxm5RXC0Y8TJ9t7vcHu6Fii0~vkM~kUstMnWbAGh66SHxHosJ3EN7Nw3br43ixsk9f4vYnMApwlq-yAYOyF-t8F8Zxv~g~xYKT~gJgGqd9m-yl00FVxtcjZdqU2T6-anfLFJZsPmr2OgPEKW8GpJy~7Ct6MW60Mg7gRbY3hlq3falOGp4Svsa1wc-Ih5UHPQa4eYBhCbEjJKyM3kRfB-s71WEEpaDAqTwGEyZbW7NQWpGLhpQ0fqDUL6~ijoOhseSdte3D0PDsreByq~4KoZYeU1CYUGJVNswDJ1ZJQ__&Key-Pair-Id=KUT5TJCACFTXG","Representative Anna Novak introduced House Bill 1279, which would extend state-level coal conversion tax relief for lignite-fired power plants. Novak framed the measure as support for affordable, reliable electricity in communities reliant on lignite generation and said the bill would not affect the coal severance tax or local portions of the coal conversion tax.

\"Lignite power plants are the backbone of North Dakota's energy grid,\" Novak said, urging the committee to support the bill and arguing producers face rising maintenance, regulatory and insurance costs that could be passed to ratepayers if plants close. She also said the bill provides a 10-year state-level tax holiday for conversion taxes to give plants planning certainty.

The hearing drew broad industry support. Jonathan Fortner of the Lignite Energy Council told the committee that federal regulatory pressure and changes in capital access have increased costs for plants and said the extension is necessary to protect grid reliability and jobs. \"This bill extends the current coal conversion tax relief from the state general fund for 10 years and helps level the playing field for coal,\" Fortner said.

Representatives of power producers and cooperatives — including Jessica Bell of Rainbow Energy Center, Ryan Norell of Basin Electric, Carly McLeod of Minnkota Power Cooperative and Jeff Simon of the Western Dakota Energy Association — described plant investments, market constraints and the role of lignite in providing baseload power. Basin Electric estimated prior relief saved the cooperative roughly $60 million over five years and said a 10-year extension could save another $120 million or more, figures witnesses said are passed on to members and ratepayers.

Opposition testimony highlighted county revenue concerns. Mercer County Commissioner Casey Voigt, testifying as a citizen and county commissioner, said Mercer County faces large infrastructure backlogs—he cited roughly $100 million of deferred maintenance needs across county infrastructure and local projects—and worried a long state exemption would reduce local resources. He proposed adjusting the state-local distribution of conversion-tax revenue to give counties a larger share and urged more local input on large tax breaks.

Committee members asked questions about the timeframe and rationale for a 10-year horizon; industry witnesses said plants plan on 10-year capital cycles and that the existing five-year holiday is set to expire in 2026, making an extension timely for financing and multi-year maintenance cycles. Several county officials and representatives suggested potential amendments to shift a greater share of conversion revenues to counties, and industry witnesses noted counties can already grant partial or complete exemptions for their portion of taxes in some cases.

No formal committee vote occurred; sponsors and stakeholders indicated further negotiations on distribution and fiscal impacts would continue.","Utilities, lignite producers and county stakeholders told the House Finance and Taxation Committee that extending a state-level coal conversion tax holiday will support grid reliability, jobs and long-term investments; at least one Mercer County commissioner urged maintaining county tax revenue and proposed distribution changes.",{"_33":112,"_35":36,"_37":38,"_39":113,"_41":114,"_43":115,"_45":116,"_47":117,"_49":118,"_51":119,"_53":120,"_55":56,"_57":58,"_59":121,"_61":62,"_63":64,"_65":122,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6349632,"Lawmakers hear bill to restore $500 primary-residence credit for homes held in trust",892,320000,1212000,"/Search/View?dp=1&key=2238068-0c96381afb03ef53479501c5fd8f90ee&start=320&end=1212","https://assets.pipeline.soar.com/2238068-0c96381afb03ef53479501c5fd8f90ee/thumbnail_320000.jpg","/articles/6349632/North-Dakota/Lawmakers-hear-bill-to-restore-500-primary-residence-credit-for-homes-held-in-trust","https://secure.pipeline.soar.com/6349632-395d76f01bde00859a3e50f03db0f640/orig.mp4?Expires=1775966347&Signature=SLJIxwFQwLYyXty9g5YR2Sp4D6ZBRtAqQtCsAIuladlLXer4RGtNlcvX6bUs9ImOhLSiCFQMiMnpPUoa2upGNJBHr-7XXGNRcwID0dy~XNCoxyI2MRruT5t~VXl4vix6VVqLWO4xD9BrcmGCvC0UIETvyuurjlXRNXG29ZZndQsnWokQnTRaQBoGH2tAxf-8Y8JVPPGHbOoexLNwKr3MKjd9VbfonORbZh8tuvsVKdUa0K8NGVbh87-t5eiSwKlsEDaXA2vL8bCq3oe2G2MQoBv63YwA9UCFbj41jtH9GtZuvBn21GlKXOz4ipqecp7DuEus4vnscBmxceKPdYUIzQ__&Key-Pair-Id=KUT5TJCACFTXG","Senator Mark Weber, sponsor of the measure, told the House Finance and Taxation Committee that a drafting oversight left many trust-held homes ineligible for a $500 primary-residence credit passed two years ago. \"If you recall, two years ago, we passed a bill that would give the primary residence credit of $500,\" Weber said, adding the exclusion of trust-held homes was unintended.

The bill presented to the committee would allow homeowners whose residences are held in trust to qualify for the $500 credit retroactively for tax years 2024 and 2025. Weber said roughly 2,500 applications had been rejected when the department interpreted the current language to exclude trusts and that the tax commissioner estimated another 1,500 homes might be affected.

Senator Judy Lee and other lawmakers pressed for broader language. Lee urged an amendment to capture cooperative ownership structures after describing a 52-unit cooperative building in South Fargo whose units share a single parcel and single property-tax statement. \"I want you to give the $500 credit to each cooperative unit owner the same way as you are to a 50 condo unit building,\" Lee said, arguing owners should not be denied simply because an owner-occupancy regime uses cooperative legal forms.

Committee members and testifiers discussed draft language and a fiscal note. Committee chair Hedlund and others observed the fiscal note in the file and the online fiscal note did not match; Weber and staff said they would confirm the fiscal note and clean up statutory language to ensure the retroactivity is limited to trust-held properties and does not open the retroactive application to all late filers.

Linda Swajovic of the North Dakota Association of Counties testified in support and said the association had worked with Weber and the tax department on a deadline and on clarifying that section 2 of the bill applies only to qualifying trust properties. Swajovic also noted online testimony from a county auditor urging clarity to avoid opening the retroactive application to anyone.

The committee heard no formal opposition at the hearing and closed the public testimony segment before moving to the next bill. Staff and sponsors indicated they would submit amended language to clean up the retroactivity clause and confirm the fiscal note before the bill moves forward.","Sen. Mark Weber told the House Finance and Taxation Committee a drafting oversight left homes held in trust ineligible for a $500 primary-residence credit; the bill would apply retroactively for trust-held homes for tax years 2024 and 2025.","actionData","errors"]

Article not found

Bill would limit tax breaks for long CO2 pipelines used for sequestration; sponsors cite changing scale of projects

Citizen and sponsor ask legislature to cap general-fund growth at 3%

Sponsor proposes $5/ton pore-space tax and $500 million disaster fund for CO2 sequestration

Committee hears industry push to extend coal conversion tax relief for 10 years

Lawmakers hear bill to restore $500 primary-residence credit for homes held in trust