Appropriations panel reviews five industrial commission budgets; proposes $25 million pilot for enhanced oil recovery

The committee reviewed five long sheets tied to Industrial Commission-related budgets and discussed several policy and funding adjustments, including a recommended pilot program for enhanced oil recovery that the committee would seed with state funds.

Senator Scheibley walked the committee through the agency worksheets for the administrative office, the state bank items, the Department of Mineral Resources, the Housing Finance Agency and the state Mill and Elevator. On the administrative-office worksheet the committee accepted most of the governor's changes and discussed several items carried as spending authority and footnotes. Committee staff reported there was a remaining discussion about Salt Caverns and associated enhanced oil recovery proposals.

On the Salt Caverns/enhanced oil recovery proposal, a committee member described $6 million remaining in the Salt Caverns account and proposed leaving $2 million there, transferring $4 million into oil recovery, and adding $21 million from SITH to create a $25 million pilot for secondary (enhanced) oil recovery. The member said $17.5 million was already allocated toward the project and that the additional $21 million would come from SITH and be additive to the $17.5 million already in the fund; the resulting pilot total would be $25 million under the committee suggestion. Committee members discussed that the original request had been for $60 million over multiple years and that this recommendation provides a smaller initial allocation to start next biennium.

On the state bank items, staff noted transfers of profit to the general fund and longstanding PACE and development loan funding lines; the transcript records $140,000,000 of profits being transferred to the general fund and continuing PACE/development loan authorities. Committee members discussed, but did not include, a proposed $50,000 policy exemption to allow certain employee events paid from agency funds because of legal/gifting concerns; staff recommended leaving that item off for now and raising it with the other chamber.

The Department of Mineral Resources worksheet included several one-time adjustments: reducing an archaeology excavation request (woolly mammoth) from $300,000 to $150,000, funding portable mineral-detection equipment ($45,000), and noting $3,000,000 of SIF money for oil and gas litigation as a replacement source to the degree it is needed. The Housing Finance Agency worksheet increased homeless program funding to $10,000,000 and added one FTE (homeless program manager) at $213,880, and designated $150,000 of the program dollars for a Native American homeless liaison. The Mill and Elevator worksheet reflected agreement with the governor's recommendations and noted mill-generated funds for capacity and shift funding.

Committees directed staff (Adam and Alex) to draft amendments so the adjustments could be reviewed and moved before full committee consideration; members set an expectation to have drafts by Thursday with the goal of taking the budgets to full committee on Friday. Several items were left for further discussion on the other chamber or future consideration, including the employee-events policy language and future funding beyond the recommended pilot for enhanced recovery.

Ending: The committee completed its review of the Industrial Commission-related long sheets and asked staff to draft amendments for Thursday review so the items can move to full committee on Friday.