House approves framework to regulate critical minerals and rare earth extraction from lignite

Bismarck — The House of Representatives voted 85-2 on Tuesday to pass an amended House Bill 14-59, legislation that creates statutory authority for developing critical minerals and rare earth elements contained in North Dakota lignite coal.

The bill, advanced unanimously by the Energy and Natural Resources Committee, establishes a new chapter in Title 38 of the North Dakota Century Code and amends existing sections that govern the Industrial Commission and mineral definitions. Sponsors and committee members told the House the measure is intended to provide a regulatory framework for extracting minerals otherwise captive in coal seams, with environmental safeguards and permitting requirements.

Representative Novak, chairing the Energy and Natural Resources Committee, described House Bill 14-59 as “a revolutionary piece of legislation” that took months to craft with input from the lignite industry, the Public Service Commission, the Industrial Commission, the Department of Mineral Resources and other stakeholders. Novak and committee members said the bill addresses both permitting and environmental protections for extraction within existing coal leases and mine operations.

Proponents argued the state’s lignite contains critical minerals that are essential to modern technology and national security, and that an emerging domestic supply chain would reduce U.S. dependence on foreign sources. Novak referenced ongoing work by the Lignite Research Council and the Energy & Environmental Research Center (EERC) as the technical foundation for potential development, and said an estimated long-term lignite resource positions North Dakota to be a domestic supplier.

The bill includes an emergency clause; floor action recorded the emergency clause as carrying with the measure. The final roll call on the amended bill was 85 yeas and 2 nays, and the House declared passage with the emergency clause.

The committee and sponsor emphasized the legislation targets mineral extraction processes associated with coal mining operations and includes provisions intended to protect environmental considerations while providing permitting clarity. Representative Schatz asked whether rare earth elements are found only in coal; Novak replied they may appear in coal seams or adjacent layers such as clay and that the bill specifically addresses minerals associated with coal seams.

With passage in the House, House Bill 14-59, including its emergency clause, moves to the next steps in the legislative process for consideration in the Senate.