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Committee backs expanded grant and loan authority for Clean Sustainable Energy Authority after amendment
Summary
The committee recommended a due‑pass on Senate Bill 2188 as amended, increasing proposed grant funding and loan line authority for the Clean Sustainable Energy Authority and adding the Director of Water Resources as a technical advisor; committee members discussed past awards, decommitments, and the authority's revolving loan structure.
Sen. Dale Patton told the House Energy and Natural Resources Committee that Senate Bill 2188 would adjust the membership of the Clean Sustainable Energy Authority’s technical advisors and provide additional funding for grants and a line of credit aimed at commercializing energy projects.
Patton said the bill would add the Department of Water Resources director as a nonvoting technical adviser because many projects have a significant impact on water demand. "The demand for water resources for these projects is pretty significant," the Department of Water Resources director, Reese Hawes, told the committee when he later testified in support.
Jordan (Deputy Director, Office of the Industrial Commission) and Bank of North Dakota representatives described the authority's grant and loan history. Jordan reviewed cumulative grant awards, decommitments and examples of projects supported, and said the senate appropriations committee had reduced the governor's original request (described in testimony as initially $30 million in grants and $100 million in loan authority) to $15 million in grants and $40 million in loans. Bank of North Dakota chief business development officer Kelvin Hollett explained the authority's line-of-credit, revolving-loan structure, and said the Bank currently manages a $390 million line of credit for the authority and that roughly $12 million in cash was available for loans at the time of testimony.
Committee members and BND staff discussed Project Tundra and other large, potential loans that have been approved but not yet disbursed; BND noted a $250 million loan approval for a major project that remains undrawn and will affect how the line of credit is repaid in later biennia. "If the Minnkota project comes in in this biennium, we would lend them the $250,000,000," a Bank witness said, describing how repayment would be addressed in later biennia.
Members debated restoring the sponsor's original funding levels. Representative Ruby moved to amend the bill to increase grant funding from $15 million to $30 million and to increase the cash appropriation to the revolving loan fund (line of credit/cash mix) from $40 million to $100 million, and to extend the line‑of‑credit authorization through June 30, 2029. The amendment passed on a recorded vote; Representative Olsen later moved a due‑pass recommendation to re‑refer the bill to Appropriations as amended. The committee's roll call shows the due‑pass as amended carried; the bill will proceed to Appropriations.
Speakers provided detail about previously awarded grants and loans (examples included grant awards to Bakken Energy that were later decommitted, multi‑phase projects for lithium extraction and hydro projects, and carbon‑capture feasibility work). Bank representatives reiterated that the loan products are 2% fixed interest and that projects undergo both an economic viability review and an independent technical review before recommendation to the authority.
The committee closed the hearing with no recorded organized opposition.
