DRC WEEKLY LEGISLATIVE UPDATE

JANUARY 12, 2007

ACTION IN THE PAST WEEK:

Agriculture Bills

• HB 2099: (Agriculture Committee) This bill would permit the processing of Industrial hemp for commercial purposes. The Senate Agriculture Committee made a minor amendment and recommended a Do Pass.
  The bill passed on the floor as amended.

• SB 2128: This bill, which was heard in the Senate Agriculture Committee, was supposedly to update seed regulations to conform to actual practices, but there is concern that it removes the ability for individuals to get seed certified. DRC member and seed developer Blaine Schmaltz testified on his own behalf. The Seed Commissioner said that he would propose amendments to address concerns. DRC is monitoring this bill.
  

Renewable Energy Bills

• Two tax housekeeping bills were heard in committee: HB 1072 would change how wind turbines are assessed for taxes passed unanimously on the floor. The Senate Finance and Taxation committee did not take action on SB 2087, which defines “E-85” and “biodiesel” for tax purposes.
  

Oil and Gas Bills

• HB 1073: The House Finance and Taxation Committee recommends a Do Pass on this bill, which would exempt payments in lieu of taxes for pipelines carrying carbon dioxide from taxation. The bill will now go to the floor.
• HB 1044: This bill would direct a larger portion of oil and gas revenues to oil and gas counties. The Association of Oil and gas producing counties testified in favor of this bill. No action has been
  taken by the House Finance and Taxation Committee.
  

Coal and Transmission Bills

• There was an amendment from the attorney general’s office on HB 1127, which allows information pertaining to records of the state Transmission Authority to be confidential. DRC is hoping to get another amendment that would prohibit requests for confidentiality to be confidential. The House Government and Veterans Affairs Committee has not yet taken action on this bill, heard Thursday.

ACTION IN THE COMING WEEK:

Agriculture Bills

• HB 1099: (Industry, Business and Labor Committee at the request of the State Board of Higher Education). This bill would define two existing provisions in state law regarding proprietary information. This bill comes on the heels of an attorney general’s opinion, requested by DRC, that determined that the NDSU research foundation’s records dealing with its contracts with Monsanto are public record. DRC is tracking this bill. House Industry, Business and Labor, Peace Garden Room, Monday, January 15, 1:30 p.m.
• SB 2153: (Sens.Nething, Nelson and Reps. Dahl, DeKrey and Kerzman) This is a very long bill (105 pages) that amends the century code dealing with farm corporations, farm limited liability companies, cooperative associations, etc. We are looking into this bill. Senate Industry, Business and Labor, Roosevelt Park Room, Monday, January 15, 9:30 a.m.
• SCR 4007: (Sens. Taylor, Erbele and Flakoll and Reps. DeKrey, Gulleson and Onstad), A resolution asking Congress to provide adequate funding for state meat inspection programs and to permit interstate shipping of state-inspected meat. DRC supports this resolution. Senate Agriculture Committee, Roosevelt Park Room, Friday, January 19, 9 a.m.
  

Oil and Gas Bills

• HB 1128: (Government and Veterans Affairs Committee at the request of the Industrial Commission). This bill would create a North Dakota Pipeline Authority, similar to the Transmission Authority that was created in the last session. DRC has not yet taken a position on this bill. House Industry Business and Labor Committee, Peace Garden Room, Tuesday, January 16, 8 a.m.
• HB 1229: (Reps. Drovdal and Kempenich and Sens. Bowman, Urlacher and Wardner), Would restrict oil or gas wells from being drilled within 660 feet of a residence. DRC supports this bill with amendments. House Natural Resources Committee, Pioneer Room, Thursday January 18, 8:30 a.m.
• HB 1257 : (Rep. Skarphol), Would assure that oil and gas royalty payments are made to mineral owners whose title and interest are not in dispute. DRC is neutral in this bill. House Natural Resources Committee, Pioneer Room, Thursday. January 18, 10:30 a.m.
• SCR 4003: (Sens. Tollefson, Bowman and Urlacher and Reps. Belter and Ruby), A resolution to establish a permanent oil tax trust fund that would be put to a state vote in 2008. DRC is tracking this bill. Senate Finance & Taxation, Lewis & Clark Room, Wednesday, January 17, 10 a.m.
• HB 1182: (Reps. Drovdal, Kempenich, Thoreson and Sens. Bowman and Lyson) This bill would require that notice of drilling be given to surface owners and tenants within ½ mile of the well site. DRC supports the bill but wants it amended to extend to a one-mile radius. House Natural Resources, Pioneer Room, Thursday January 18, 8:30 a.m.
  

Renewable Energy Bills

• HB 1193: (Reps. Wrangham, Kerzman and Nottestad and Sens. Cook, Klein and O’Connell). This bill, introduced at the request of Basin Electric, proposes to classify electricity generated from hydropower as renewable. This would enable Basin to claim its WAPA allotment for renewable energy credits. DRC opposed this provision in the last session because it would slow the development of new renewable technology. DRC opposes this bill. House Natural Resources, Pioneer Room, Thursday January 18, 10:30 a.m.
• HB 1231: (Reps. Kretschmar and Brandenburg and Senator Erbele), Would allow the sellers of property to maintain the rights to wind payments after the property is sold. DRC opposes this bill. House Natural Resources, Pioneer Room, Thursday, January 18, 8:30 a.m.
• HB 1233: (Reps. Brandenburg, Charging, S.Kelsh, Monson and Sens.
  Erbele and Wanzek), Would appear to allow a cooperative to claim a credit against tax imposed for a wind energy device as part of a power purchase agreement. DRC is tracking this bill. House Finance and Taxation, Fort Totten Room, Tuesday, January 16, 10 a.m.
• SB 2156: (Sens. Klein and Heitkamp and Reps. Brandenburg and Dosch), Appears to add clean, renewable energy bonds to the definition of “municipal security” in the century code. Senate Industry, Business and Labor, Roosevelt Park Room, Wednesday, January 17, 9 a.m.
  

• SB 2031: (Legislative Council for Electric Industry Competition Committee), Would allow utilities to charge customers for expenses related to building transmission lines. DRC is monitoring this bill.
  Senate Industry, Business and Labor, Roosevelt Park Room, Monday, January 15, 9 a.m.

BILLS INTRODUCED BUT NO HEARINGS YET SCHEDULED:

Oil and Gas Bills

• HB 1279: (Reps. Kempenich, Headland, Solberg and Weiler and Sens.
  Krauter and Wanzek), Would extend the tax exemption for shallow gas wells that was due to sunset July, 2007. DRC is monitoring this bill.
• SB 2157: (Sens. Wardner, Lyson and O’Connell and Reps. Belter, Onstad and Wieland) Oil extraction tax: This bill changes way the oil extraction tax is computed. It appears that this bill will decrease the amount of oil extraction tax the state collects because that tax is currently based on a price that is higher than ND crude. DRC will monitor this bill.
• HB 1349: (Reps. Kempenich, Erbele and Thoreson and Sens. Flakoll and Wardner), This bill would require that surface owners receive notice of drilling operations at the time the company applies for a drilling permit. DRC supports this bill but will be asking for amendments.
• SB 2178: (Sens. Bowman, Lyson and O’Connell and Reps. S. Meyer and Skarpohl), Would raise the counties’ caps on oil and gas production tax revenues. DRC supports this bill.
• HCR 3009: (Reps. Froelich and Meyer and Sen. Heitkamp), a resolution directing the Legislative Council to study the feasibility and desirability of building a state-owned refinery or providing incentives to the private sector to expand refining in the state. DRC will monitor this bill.
• Draft Oil and Gas Bonding Bill: Rep. S. Meyer is planning to introduce a bill that would require a new bond for the actual cost of reclamation at the time that an oil or gas well is abandoned or temporarily abandoned. DRC would support this bill.
  

Coal and Transmission Bills

• HB 1221: (Reps. Keiser, Delmore and Vigesaa and Sens. Heitkamp, Klein and Wanzek), This bill would allow companies to recoup expenses incurred meeting federal mandates by raising rates. DRC is monitoring this bill.
• SB 2141: (Sens. Urlacher, Erbele and O’Connell and Reps.
  Brandenburg, Kretchmar and S. Meyer), Would allow companies developing an electrical generating plant using waste heat to claim the same tax exemptions for materials as other power plant upgrades. DRC will monitor this bill.
  

Agriculture Bills

• HCR 3007: (Reps. Froelich, Kempenich, Kerzman and S. Meyer), A resolution urging Congress to not allow an increase in the beef check off unless there is a nationwide vote of beef producers. DRC supports this resolution.
• HCR 3010: (Reps. Froelich, Brandenburg, Kempenich and Kerzman and Sens. Bowman and Taylor), A resolution urging Congress to implement Country of Origin Labeling, which was mandated in 2002 but never funded.
  DRC supports this resolution.