Senate finance committee hears testimony on HB 1279 to extend state coal conversion tax relief for lignite plants

At a hearing before the Senate Finance and Taxation Committee, lawmakers heard testimony on House Bill 1279, which would extend a 10‑year state-level exemption from the coal conversion tax for lignite‑fired power plants.

Representative Anna Novak of District 33 introduced the bill, telling the committee the proposal is "about protecting affordable energy for every North Dakotan and ensuring a reliable power grid that sustains our way of life." Novak said the measure targets the coal conversion tax — the tax that power plants pay for converting lignite into electricity — and does not change coal severance taxes or local portions of the conversion tax. She said the 10‑year length is intended to provide investment certainty amid shifting federal rules.

Supporters from the lignite industry and related local governments and utilities told the committee the extension is necessary to maintain base‑load generation, protect jobs and keep electricity prices stable. Jonathan Fortner of the Lignite Energy Council said coal plants face rising costs from litigation, insurance and limited access to capital and that without relief "the ability to provide affordable, reliable electricity for North Dakotans is at risk." Fortner…