Bill would divert oil tax dollars to help Hub Cities pay legacy infrastructure debt; mayors and industry urge approval

Senator Brad Beckettall, R‑District 1 (Williston) introduced Senate Bill 2323, which would appropriate $20 million annually to an Energy Impact Fund earmarked for the three designated Hub Cities — Williston, Minot and Dickinson — to reduce debt incurred to accommodate oil‑industry growth.

Beckettall told the committee that the Hub City formula adopted in 2013 shifted gross production tax (GPT) distributions and created buckets of funding that did not fully anticipate the long‑term debt and operating costs the three largest oil‑region cities would carry. "This bill seeks to provide a $20,000,000 annual appropriation to the Energy Impact Fund for distribution to Hub Cities, specifically to reduce the debt burdens that remain from infrastructure improvements necessary to accommodate the oil industry growth," Beckettall said.

The bill would make that $20 million available from the state share of oil and gas tax allocations by adjusting how strategic investment fund (SIF) and other buckets are allocated. Beckettall and legislative staff explained the proposal would reduce the SIF allocation by $80 million (from $400 million to $320 million) in order to hold…