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HB 1574

An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, establishing the Redevelopment Authority Startup Loan Program and the Redevelopment Authority Startup Fund.

2025-2026 Regular Session Introduced by Joe Ciresi and 15 co-sponsors

North Dakota would temporarily ban constructing, implementing, or operating new direct air CO2 capture projects through July 31, 2027, with a grandfather for pre-existing permits.

Referred to Urban Affairs & Housing
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Bill Summary · HB 1574

Summary — HB 1574 (North Dakota) — Prohibition on Direct Air Carbon Dioxide Capture Projects

Bill number: HB 1574
Title: An Act to create and enact a new section to chapter 38‑22 of the North Dakota Century Code, relating to a prohibition on direct air carbon dioxide capture projects; to amend and reenact section 38‑08‑21, relating to the authority of the Industrial Commission; to provide for application; and to provide an expiration date.
Introduced: December 11, 2024
Primary sponsors: Representatives S. Olson, Henderson; Senators Clemens, Magrum, Weston
Related: HB 1146 (companion)
Status (as supplied): Second reading — failed to pass (yeas 20, nays 64). Note: the legislative record included with the bill text contains additional, conflicting entries on later actions (see Procedural/Timeline section).

Main purpose / intent

To prohibit construction, implementation, or operation of new direct air carbon dioxide capture (DAC) projects in North Dakota and to prevent the Industrial Commission from approving or authorizing such projects, effectively establishing a temporary statewide ban on DAC activity as defined in the bill.

Key provisions

  • Adds a new prohibition to chapter 38‑22 NDCC: a person may not construct, implement, or operate a “direct air carbon dioxide capture” project in North Dakota.
  • Defines “direct air carbon dioxide capture” as the process of removing CO2 directly from the atmosphere using scrubbers and chemical processes for underground storage or use in products.
  • Amends section 38‑08‑21 NDCC to state the Industrial Commission may not approve or authorize a direct air carbon dioxide capture project.
  • Provides an application (grandfather) clause: the prohibition does not apply to operators who possessed necessary local, state, and federal permits and approvals prior to the bill’s effective date.
  • Establishes a sunset/expiration: the Act is effective through July 31, 2027; after that date it becomes ineffective (i.e., temporary ban).

Who would be affected

  • Developers, operators, and investors planning new DAC projects in North Dakota (would be barred from building or operating new projects).
  • Carbon removal companies and technology providers targeting the state market.
  • The Industrial Commission, which would be statutorily prohibited from authorizing DAC projects.
  • Local governments, landowners and potential host communities where DAC projects might have been proposed.
  • Related sectors (construction, permitting, environmental consulting) that would have supported DAC deployment.

Potential impacts and considerations

  • Short‑term halt to new DAC project development and related private investment in the state.
  • Projects with complete permits in hand before the effective date could continue (per the grandfather clause).
  • The ban is temporary (expires July 31, 2027), which could preserve legislative or regulatory flexibility while policymakers assess DAC technology, economic impacts, and regulatory frameworks.
  • Interplay with federal permitting and interstate commerce may raise legal or administrative questions for operators and regulators.

Procedural / timeline notes

  • Introduced Dec 11, 2024. The document supplied lists a recorded status of “Second reading, failed to pass (yeas 20, nays 64).”
  • The bill text package also includes a sequence of legislative actions (committee referrals, readings, and an entry noting an Act number and enrollment) that conflict with the single status entry. Users seeking final outcome should verify the official North Dakota legislative status on the legislature’s website or current session journals to confirm whether the prohibition became law or remained defeated.

Compiled from official sources — confirm details with the bill’s official record.

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