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Industrial Commission seeks continued litigation funding, IIJA grid-resiliency grants and grant-management carryovers
Summary
The Industrial Commission’s executive director told the appropriations committee the commission expects ongoing litigation expenses, will request a new round of IIJA grid-resiliency grants requiring state match, and is seeking carryover authority for grant-management and records projects.
North Dakota Industrial Commission leaders asked the Appropriations - Education and Environment Division to restore or carry forward several budget items tied to litigation, grid-resiliency grants and administrative systems.
Executive-director priorities and litigation funding
Karen Tyler, Executive Director of the North Dakota Industrial Commission, briefed the committee on the commission’s administrative budget and explained a request to split compensation adjustments between the Industrial Commission administrative office and the Public Finance Authority (PFA). Tyler said the commission expects to expend remaining litigation funding: "To date, we have a little over $2,500,000 of the $3,000,000 that has been spent," she told the committee, and she predicted the lignite-related litigation appropriation would likely be fully expended before the end of the biennium.
Tyler summarized active litigation and regulatory matters that drive legal costs, including federal rulemakings (mercury and air toxics standards and regional haze), coal-combustion issues and state responses to other states’ energy legislation.
IIJA grid-resiliency grants and transmission-authority funding
Tyler described the next round of Infrastructure Investment and Jobs Act (IIJA) grid-resiliency grant opportunities and asked the committee to consider available state-match authority. The commission’s request totaled roughly $13.6 million for a next round of IIJA grants (federal grant plus state match components). She noted federal developments may affect some large transmission projects and the administration’s executive orders or federal actions could change the timing of specific awards.
Operational items, software and carryovers
The commission asked to carry forward unspent one-time appropriations for a grant-management software implementation — Tyler estimated a carryover need of about $600,000 into the next biennium — and asked to carry forward remaining funds for a records-digitization initiative and other one-time projects. The commission also described a previously appropriated $3 million for the iPipe pipeline-integrity project, of which only about $100,000 has been spent and the next-phase expenditures are expected in mid-2025.
Where things stand
Tyler said the commission did not request additional FTEs for the admin office but would monitor incoming grant programs that might increase workload and return to the Legislature if resources need to change. The committee did not take final action on the requests during this meeting.
Ending note
Committee members asked follow-up questions about potential continuing litigation needs and funding sources. The commission said it would provide additional detail on bond payment changes, grant implementation schedules and the status of litigation expense drawdowns.
