Senate committee gives do‑pass to bill excluding on‑site backup generators from PSC siting

The Senate Energy and Natural Resources Committee voted 6–0, with one absent, to recommend a “do pass” on House Bill 15 39, which would change how the state treats on‑site backup electric generation for large electricity users.

Representative Anna Novak, the bill sponsor, told the committee the measure “relates to backup generation for large electricity users” and was brought at the request of data centers seeking to invest and locate in the state. Novak said the bill would create a new definition of backup electric generation to cover generation that is not interconnected to the electrical grid and is used only when primary grid power is unavailable.

The change aims to remove on‑site backup generators from the Public Service Commission’s (PSC) siting jurisdiction when those generators are incidental to a business and do not serve the grid. Under current Century Code language cited in testimony, most electric generation other than wind and utility storage that exceeds 50 megawatts must be sited by the PSC; Novak said that broad definition could require siting review for on‑site backup generators that were not the intent of the law. Novak emphasized the word “on‑site” in the bill’s definition, saying it prevents an entity from locating backup generation miles away to avoid the PSC process.

Nick Phillips, a representative of Applied Digital, testified in support and described the company’s North Dakota operations: “we're a publicly traded data center operator here in North Dakota. We have 2 locations, 1 in Jamestown that's 100 megawatts, 1 in Ellendale which is 180 megawatts.” Phillips said the company has PSC permission to expand its Ellendale facility and that the siting process for generation above the statutory threshold can be “very burdensome,” involving substantial time and money and review by multiple agencies. He also told the committee the proposed change would not remove local permitting or environmental oversight: “We don't get to skirt any of the local issues. We don't get to skirt the environmental issues related to … exhaust and … topics like that.”

Senators questioned technical limits in the bill. Senator Ingrid asked why the bill includes a prohibition on backup generators running more than 239 hours per year; Novak deferred the technical question to industry witnesses. Phillips said EPA review is involved for diesel backup generation and that diesel units are not configured to interconnect to the grid in their facilities.

After public testimony and questions, Senator Beard moved a due‑pass recommendation; Senator Engott seconded. The clerk recorded the vote as 6 ayes, 0 nays, 1 absent. The motion passed. Committee members announced Senator Kessel will carry the bill on the floor.

The bill now moves from committee with a do‑pass recommendation; committee members and supporters said state and local environmental and permitting requirements would still apply.