The House Finance and Taxation Committee resumed hearings in Bismarck on House Bill 1211, introduced by Rep. Dave Munson, to allow hydroelectric generation from Missouri River facilities to qualify for renewable energy credits statewide.

Rep. Dave Munson said he is sponsoring the bill on behalf of municipal electric utilities that use hydroelectric generation and that the change would help municipal utilities better monetize and share any renewable energy credits (RECs) they receive.

Why it matters: The bill removes language that limited REC eligibility to hydroelectric facilities that came into service on or after Jan. 1, 2007. Supporters said the change would make RECs from older hydro facilities fungible in regional markets and allow municipal utilities to optimize revenue or compliance purchases.

Testimony and technical explanation

Todd Kranda, appearing for Missouri River Energy Services, and Deb Bergen, vice president of government relations for Missouri River Energy Services (appearing remotely), explained the bill’s technical rationale. Bergen said the Western Area Power Administration (WAPA) recently registered generation from Missouri River dams with the regional tracking system used for RECs (Midwest Renewable Energy Tracking System, MRETS), which enables hydro output to be tracked and traded as RECs.

Bergen told lawmakers the REC market is not transparent and that prices vary; she said the market is currently “trending at about $1 per REC” but cautioned that REC prices are volatile and depend on demand and regional compliance programs. Bergen described a REC in standard industry practice as a unit representing 1 megawatt‑hour of renewable generation; she emphasized the market’s opacity and that her figures were illustrative, not definitive.

Questions and concerns from committee members

Representative Porter and others pressed whether allowing the credits to be sold or transferred out of state (for example to Minnesota utilities) could conflict with ongoing litigation or state policy. Porter asked whether making RECs fungible would let Minnesota utilities purchase credits from North Dakota sources while North Dakota entities are litigating Minnesota’s mandates; Bergen said Missouri River Energy Services views the credits as a joint asset for its members and did not see an immediate legal conflict but said she would check with counsel and that a delayed effective date might be worth exploring if the committee wanted to separate the issues.

Representative Haggart asked for data on the volume of unused hydro RECs available from Missouri River dams; Bergen said she did not have that number in the hearing but would supply it as follow‑up.

Next steps

Committee members asked for additional information — including the quantity of RECs potentially available, legal counsel’s view on interstate transfers in light of litigation, and the anticipated fiscal or rate impacts for municipal utility ratepayers — before acting. The committee took no final action and closed the hearing pending further answers.

Ending

Lawmakers recessed after hearing and indicated they would set the bill aside until staff and witnesses provided the requested technical and fiscal information.