House panel approves amendment to expand pipeline authority borrowing to $180 million
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Summary
The House Appropriations Government Operations Division voted to attach an amendment increasing the pipeline authority's borrowing capacity to support an east'west natural gas pipeline, raising the authority to $120 million and preserving a combined $180 million line of credit with the Bank of North Dakota.
The House Appropriations Government Operations Division on an unrecorded date approved an amendment to increase the borrowing authority tied to a proposed west'to'east natural gas pipeline, a move sponsors said is intended to help secure permitting and provide capacity certainty to a project still years from construction.
Representative Bosch, who moved the amendment, said the change adjusts a single numerical limit in legislation from last year to expand the state's capacity commitment to the pipeline authority. "I've got an amendment to change... it's just increasing the capacity, authority of the pipeline," Representative Bosch said, explaining the amendment increases the pipeline authority's borrowing from $60 million to $120 million.
Committee members said the expanded commitment is intended to help the pipeline company obtain necessary federal approvals, including a Federal Energy Regulatory Commission (FERC) certificate, by demonstrating sufficient committed customers and capacity. Vice Chair Brandenburg described data centers and a Grand Forks potato plant as potential large customers that are changing the pipeline's economics: "That's the game changer... you gotta have enough capacity, enough load," he said.
The amendment also reflects a change at the Bank of North Dakota (BND). Committee discussion recorded that BND currently lists $80 million of authority in its related program but told staff it only needs $60 million for the bank's present portfolio. The amendment moves the pipeline authority's statutory borrowing cap to $120 million and maintains the combined line-of-credit figure at $180 million by reducing the bank-side program to $60 million. Committee staff clarified the change will appear as amendments to two sections of the bill and will create a new box on the long sheet.
A staff member noted the original pipeline-capacity program carried a delayed effective date; committee counsel said the amended section becomes law starting July 1, 2025, aligning it with the existing delayed-effective provision. Committee members directed staff to draft a clean amendment for the next session day so the committee could review the full text.
The clerk recorded a roll call on the amendment. The motion to attach the amendment to the bill (as described above) was moved by Representative Bosch and seconded by Representative Kempnick and carried on a roll call with the following recorded votes: Chairman Munson, yes; Vice Chair Brandenburg, yes; Representative Bosch, yes; Representative Fisher, yes; Representative Kempenek, yes; Representative Meyer, yes; Representative Pyle, yes. The motion was carried and the amendment attached to bill 2014.
Committee members said the pipeline remains a long-term project if pursued, with speakers repeatedly noting it could take roughly five years to build even if planning begins immediately. Supporters framed the change as a way for the state to be a partner and to help secure the permitting and financing needed to move the pipeline toward construction.
The committee directed staff to prepare the written amendment and to circulate it to members before the next meeting so members could review the precise statutory language and placement in the long sheet.
