North Dakota Assembly approves $100 million natural gas pipeline bill for increased capacity

The North Dakota State Legislature convened late into the night on May 2, 2025, to discuss critical issues surrounding natural gas infrastructure and budget appropriations. The session, which lasted from 11:31 PM to 4:12 AM, culminated in the passage of Senate Bill 2014, a significant budget bill that marks the conclusion of the 69th legislative session.

A primary focus of the meeting was the proposed natural gas pipeline project, which has been a topic of discussion for several years. Representative Nelson raised concerns about the state's financial exposure, specifically the $100 million appropriated for pipeline capacity, which could total $500 million over the next five bienniums. He questioned whether this investment would become a subsidy if the capacity was not purchased by industrial users. Representative Munson assured that the pipeline's construction would depend on commitments from customers by December 2026, emphasizing that without such commitments, the project would not proceed.

Several representatives expressed skepticism about the pipeline's viability, citing past failures of similar projects. They argued for a more diversified approach to natural gas supply, highlighting the needs of rural communities in North Dakota that currently lack access to natural gas. Representative Gaponick noted that the project aims to ensure adequate capacity for future industrial users, stressing the importance of getting the pipeline size correct from the outset.

In addition to the pipeline discussions, the session addressed budgetary matters. Representative Vegathoff reported a 2.6% increase in general fund appropriations compared to the last biennium, with total funds seeing a 3.6% increase. He acknowledged the challenges faced earlier in the session, where the legislature was projected to be in a significant budget deficit.

The passage of Senate Bill 2014, which was approved with a vote of 74 to 15, signifies a crucial step in finalizing the state budget and addressing the infrastructure needs of North Dakota. As the session concluded, legislators expressed gratitude for the collaborative efforts that led to the successful passage of key bills, including the campaign finance bill integrated into House Bill 1377.

Overall, the meeting underscored the ongoing challenges and discussions surrounding energy infrastructure and fiscal responsibility in North Dakota, setting the stage for future legislative sessions.