authorizing electric utilities to issue AAA-rated bonds for the purpose of storm cost recovery and infrastructure resilience.

2026 Regular Session Introduced by Kevin Avard and 6 co-sponsors

Defines backup electric generation and carves it out of the state siting law for temporary, non-grid-connected generators, potentially easing approvals and reducing state review.

Signed by Governor Ayotte 04/15/2026; Chapter 25; eff. 04/15/2026

Purpose / Intent

The bill updates North Dakota Century Code chapter 49‑22 (the state siting law for large energy facilities) to add a definition of “backup electric generation” and to adjust related siting definitions and provisions. The primary intent is to clarify that temporary, non‑grid‑interconnected backup generation is treated differently from utility-scale generation for siting and permitting purposes.

Key provisions and changes

Adds a new, explicit definition (49‑22‑03(1)):

“Backup electric generation means electric generation that is not interconnected with the grid and is generated on a temporary basis to replace primary source electric generation when unavailable.”

Revises several existing definitions in 49‑22‑03 to make clear distinctions between:

“Electric energy conversion facility” and onsite backup electric generation — the bill excludes onsite backup generation from the statutory definition of an electric energy conversion facility.
Other terms used across the chapter (e.g., “construction,” “corridor,” “electric transmission facility,” “utility‑scale energy storage,” “route,” “site,” “utility”), aligning them with the new backup generation carve‑out.

Amends subdivision e of subsection 1 of section 49‑22‑22 (text truncated in source) — the placement indicates a related change to the chapter’s permitting/siting or exemption procedures to reflect treatment of backup generation (e.g., potential exemption from certificate/corridor requirements or altered review standards).

Who is affected

Utilities and independent power providers that own or operate backup generators (especially onsite, temporary units).

Owners/operators of critical facilities (hospitals, data centers, industrial plants) that deploy temporary backup generation.

North Dakota Public Service Commission — potential change in scope of projects the commission must review under the siting law.

Local governments, landowners, and environmental stakeholders — because fewer projects may trigger state siting review, local permitting/oversight and environmental review practices could be more consequential.

Potential impacts and considerations

Operational: Could streamline deployment of temporary backup generation during outages or emergencies by removing or narrowing state siting requirements.

Regulatory/environmental: May reduce state-level siting oversight and environmental review for temporary, non‑interconnected generators; local permitting and oversight would become relatively more important.

Grid resilience: May facilitate faster replacement of lost local generation capacity during outages but could also raise questions about emissions, noise, land use, and public notice for repeated or semi‑permanent use of backup units.

Procedural notes

The bill amends NDCC §§ 49‑22‑03 and 49‑22‑22. Because the source text for subsection 49‑22‑22(e) is truncated, implementers should consult the full enrolled/committee draft for exact changes to exemptions, filing requirements, or approval processes.

Sponsors and committee actions: introduced during the 69th Legislative Assembly; tracked in the 2025 session but did not emerge as enacted legislation.

Bill