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Committee advances bill to exempt on‑site backup generation from PSC siting review
Summary
House Bill 1539 would exclude on‑site backup electric generation that is not interconnected to the grid from the Public Service Commission’s siting jurisdiction. Testimony emphasized economic development and technical differences between backup generators and full‑time plants; committee gave the bill a due‑pass recommendation.
Representative Anna Novak introduced House Bill 1539 to create a narrower definition of ‘‘backup electric generation’’ and to exclude on‑site backup generation — equipment not interconnected to the electrical grid and used only when primary grid power is unavailable — from the PSC siting act.
Nut graf: Supporters argued the change removes an unintended barrier to locating businesses that need brief, on‑site backup power (data centers, manufacturers, hospitals) while preserving local land‑use review and existing environmental permitting.
Applied Digital’s Etienne Steinman testified in support and described the company’s facilities in Jamestown and Ellendale, saying Applied Digital has ‘‘invested over $1,000,000,000 of infrastructure in North Dakota and anticipate[s] roughly $4,000,000,000 more in the coming years.’’ Steinman explained the backup systems at the Ellendale site combine batteries and generator units sized so the battery covers the brief interval while on‑site engines start; the project holds at least 48 hours of on‑site diesel fuel storage.
Supporters said backup generation does not inject power to the grid, runs very infrequently (Applied Digital described a cap of 2.39 hours per year for their backup generators), and is already subject to environmental permits administered by the Department of Environmental Quality.
Opponents were not prominent in the hearing record for this bill; several committee members and witnesses said local siting and permitting remain available to review backup generation and that environmental protections continue to apply.
Action: The committee voted to give House Bill 1539 a due‑pass recommendation to the next stage. Representative Doctor moved the due‑pass; Representative Haggart seconded; the roll call recorded a majority yes vote.
Ending: With broad technical testimony and industry support, the committee advanced the bill so state law will explicitly exempt small, rarely‑used on‑site backup generation from the PSC siting act while leaving environmental permitting and local land‑use processes in place.
