Public Service Commissioners authorize chair to finalize letter seeking more federal coal-program funding

The Public Service Commissioners voted to authorize the commission chair to finalize and transmit a letter to North Dakota’s congressional delegation and Interior Secretary Burgum requesting additional federal funding for the state’s coal regulatory program.

Commissioners said the Office of Surface Mining and Reclamation (OSM) allocated less money nationwide this year — falling from about $68.6 million in the 2014–2021 period to roughly $62.4 million this year — and that North Dakota faces an approximate shortfall of $240,000 for the current biennium.

Commissioners said the shortfall threatens the state’s ability to fully staff its reclamation and coal regulatory functions and could require the commission to seek state general-fund dollars if federal support does not increase.

"If we don't get it and can't get it ongoing ... we'll lose primacy. They will be in charge of it, and it will cost them a lot more money because we won't be paying 36% anymore," Commissioner Randy said, describing the potential consequence if the state cannot meet program funding needs.

Commissioner Jill said the federal allocation method — which partly relies on historical under-spending and assumed vacancies — disadvantages smaller state reclamation programs that cover large coal-producing areas with relatively small staffs. "It works well when you have a very large agency. It works less well when you are like us and have a much smaller staff," she said.

Commissioner Sherry asked whether the letter should explain why OSM funding has decreased and spell out the consequences for the state if the trend continues. Staff said they will review the draft with Jonathan, incorporate feedback, and obtain commissioners' signatures.

Commissioner Randy moved that the commission delegate to the chair authority to finalize the letter to North Dakota’s congressional delegation and Secretary Burgum detailing the inadequate federal funding for the commission’s coal regulatory program; Commissioner Jill seconded the motion. Two commissioners verbally said "aye" and the chair declared the motion approved.

Staff will circulate the revised draft to commissioners for final review and collect signatures before transmitting the letter. Commissioners said they may also consider requesting additional state general-fund support in the upcoming budget if federal support remains inadequate.

The commission did not adopt new statutory language or change program rules during the meeting; the action authorized finalizing and sending a request for federal funding assistance.