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HB 1400

creating a property tax exemption and credit opt-out mechanism.

2026 Regular Session Introduced by Mark McConkey and 1 co-sponsor

HB 1400 centralizes environmental mitigation funding and administration for energy facilities in the Agriculture Commissioner’s office, via a new environmental impact mitigation fu

Inexpedient to Legislate: MA VV 02/05/2026 HJ 3 P. 15
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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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