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HB 1400

An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in entertainment production tax credit, further providing for credit for qualified film production expenses and for penalty.

2025-2026 Regular Session Introduced by Johanny Cepeda-Freytiz and 15 co-sponsors

HB 1400 centralizes environmental mitigation funding and administration for energy projects under the Agriculture Commissioner, creating a dedicated fund and state-held, time-limit

Referred to Judiciary
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Bill Summary · HB 1400

HB 1400 — Summary (North Dakota, 2025)

Status: Filed with Secretary of State 03/31/2025 (passed by the Legislative Assembly and enacted with an emergency clause)

Primary sponsors: Reps. Brandenburg, Grueneich, Headland, Kempenich, Pyle, Schreiber-Beck; Sens. Conley, Erbele, Kessel, Wanzek, Weber

Purpose / Intent

HB 1400 centralizes and clarifies how environmental mitigation for energy conversion and transmission facilities is funded and administered in North Dakota. It (1) creates/clarifies an environmental mitigation fund and the federal environmental law impact review fund; (2) authorizes the Agriculture Commissioner to receive mitigation payments and to purchase/hold conservation easements or leaseholds for mitigation purposes; and (3) sets rules and priorities for how mitigation funds are used. The Act is declared an emergency measure (immediate effect).

Key provisions and changes

  • Amends and reenacts:

    • Section 4.1‑01‑21 (Federal environmental law impact review fund) — clarifies fund components and authorizes investments under section 21‑10‑07 (state treasurer / investment authority).
    • Section 4.1‑01‑21.1 (Environmental impact mitigation fund) — creates/defines the environmental impact mitigation fund, makes it a continuing appropriation to the Agriculture Commissioner, and authorizes investment by the state treasurer per 21‑10‑07.
    • Section 49‑22‑09.2 (Mitigating environmental impacts) — requires mitigation payments related to construction/operation of wind, other energy conversion, or transmission facilities to be deposited into the environmental impact mitigation fund.
  • New statutory section (chapter 4.1‑01): authorizes the commissioner to purchase and hold easements or leaseholds in the name of the state to administer the title, and requires termination of such interests when no longer necessary.

  • Permitted uses of the environmental impact mitigation fund:

    • Consulting with relevant scientific/engineering specialists.
    • Creation, restoration, or mitigation of similar habitat affected by facilities.
    • Purchasing and maintaining easements or leaseholds.
    • Mitigation priority order: (1) area immediately impacted, (2) county, (3) region, (4) other areas in state.
  • Additional provisions:

    • Easements/leaseholds purchased to mitigate impacts must be limited to the operational life of the facility (as defined under chapter 49‑22).
    • Payments made for mitigation under chapter 49‑22 must be paid to and deposited by the Agriculture Commissioner into the mitigation fund.
    • The commissioner is exempt from chapter 54‑44.4 procurement requirements when contracting under this chapter.
    • Rulemaking: commissioner to adopt rules in consultation with the federal environmental law impact review committee.
    • Reporting: commissioner must provide a biennial report of fund disbursements to Legislative Management.

Who is affected

  • Applicants/developers of energy conversion (including wind) and transmission facilities — mitigation payment route and options change (payments go to the mitigation fund; commissioner may undertake mitigation projects).
  • Landowners and potential easement/leasehold sellers — commissioner may acquire state-held easements/leaseholds limited to facility operational life.
  • Agriculture Commissioner’s office — receives and administers funds, procures mitigation projects, and reports to the legislature.
  • Public Service Commission — must be notified of mitigation efforts prior to permit/certificate issuance.
  • Local habitats and communities — mitigation prioritizes the area immediately affected, then county and region.

Procedural / timeline aspects

  • Fund balances are a continuing appropriation to the commissioner.
  • Investments managed under section 21‑10‑07 (state treasurer / state investment rules).
  • Commissioner rulemaking and biennial reporting requirements are specified.
  • Emergency clause makes the Act effective immediately upon approval.

Potential impacts (practical)

  • Centralizes mitigation financing and administration within the Agriculture Commissioner’s office.
  • May change how developers meet mitigation obligations (depositing payments versus directly purchasing perpetual easements).
  • Enables state-held, time-limited mitigation interests (easements/leaseholds) tied to facility operational life.
  • Administrative and implementation costs are expected (not specified in the bill text).

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

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