17-01-01. Low-emission technology.

The legislative assembly adopts the low-emission technology initiative with the goal that the agricultural, forestry, natural resources, and working land of the United States should provide energy from low-emission technology and continue to produce safe, abundant, and affordable food, fuel, feed, and fiber. Increasing America’s low-emission technology use will bring new advancements to market and save consumers money, reduce the nation’s dependence on oil from the Middle East, create good new jobs in rural America, clean up the air, reduce urban smog, and address global warming issues. As used in this initiative, low-emission technology includes biofuels, solar, wind, hydropower, geothermal, carbon recycling, carbon sequestration, use of waste heat, recycling, hydrogen, coal, oil, natural gas, and energy efficiency initiatives. Investing and acknowledging a commitment to low-emission technology allows the state to use its abundant natural resources for the benefit of current and future generations. This initiative provides North Dakota consumers with affordable, reliable, resilient, and sustainable energy for the benefit of the state’s economy and communities.

17-02-01. Ethanol production incentives — Report to budget section. [Repealed]

Repealed by S.L. 2013, ch. 177, § 4.

17-02-01.1. Definition.

In this chapter “eligible facility” means an ethanol production plant constructed in this state after July 31, 2003.

17-02-02. Ethanol production incentives — Payments for increased production. [Renumbered]

If an ethanol plant that was in operation in this state before July 1, 1995, increases its production by the lesser of ten million gallons [37854000 liters] or fifty percent of its production capacity during any twelve-month period beginning on or after July 1, 2005, that plant is eligible to receive ethanol production incentive payments under section 17-02-03 on its increased production.

17-02-03. Ethanol production incentive — Calculation — Payment. [Renumbered]

The office of renewable energy and energy efficiency shall provide quarterly to each eligible facility a production incentive based on the average North Dakota price per bushel of corn received by farmers during the quarter, as established by the North Dakota agricultural statistics service and the average North Dakota rack price per gallon [3.79 liters] of ethanol during the quarter, as compiled by AXXIS petroleum. The amount payable as a production incentive must be calculated by including the sum arrived at under subsection 1 with the sum arrived at under subsection 2.

1. 1. If the average quarterly price per bushel of corn is above one dollar and eighty cents, for each one cent by which the quarterly price is above one dollar and eighty cents, the office of renewable energy and energy efficiency shall add to the amount payable under this section one-tenth of one cent times the number of gallons of ethanol produced by the eligible facility during the quarter.
   2. If the average quarterly price per bushel of corn is one dollar and eighty cents, the office of renewable energy and energy efficiency shall add zero to any amount payable under this section.
   3. If the average quarterly price per bushel of corn is below one dollar and eighty cents, for each one cent by which the quarterly price is below one dollar and eighty cents, the office of renewable energy and energy efficiency shall subtract from the amount payable under this section one-tenth of one cent times the number of gallons of ethanol produced by the eligible facility during the quarter.
2. 1. If the average quarterly rack price per gallon of ethanol is above one dollar and thirty cents, for each one cent by which the average quarterly rack price is above one dollar and thirty cents, the office of renewable energy and energy efficiency shall subtract from the amount payable under this section, two-tenths of one cent times the number of gallons of ethanol produced by the eligible facility during the quarter.
   2. If the average quarterly rack price per gallon of ethanol is one dollar and thirty cents, the office of renewable energy and energy efficiency shall subtract zero from any amount payable under this section.
   3. If the average quarterly rack price per gallon of ethanol is below one dollar and thirty cents, for each one cent by which the average quarterly rack price is below one dollar and thirty cents, the office of renewable energy and energy efficiency shall add to the amount payable under this section two-tenths of one cent times the number of gallons of ethanol produced by the eligible facility during the quarter.

17-02-04. Subsidy limitations. [Renumbered]

The office of renewable energy and energy efficiency may not distribute more than one million six hundred thousand dollars per eligible facility annually in payments under section 17-02-03 and may not distribute any payment that would create a negative ethanol production incentive fund balance. If the incentive fund balance is insufficient to pay all valid incentive requests received in any quarter, the funds available must be paid out on a pro rata basis and obligations may not be carried forward. No eligible facility may receive state payments that exceed a cumulative total of ten million dollars or for longer than ten years. Change in ownership of an eligible facility does not affect the ten million dollar cumulative total allowed to be paid to that eligible facility under this section or the ten-year limitation contained in this section.

17-02-05. Ethanol production incentive fund — Continuing appropriation.

There is created in the state treasury a special fund known as the ethanol production incentive fund. The fund consists of transfers made in accordance with section 39-04-39. All moneys in the fund are appropriated on a continuing basis to the office of renewable energy and energy efficiency for use in paying ethanol production incentives under this chapter.

17-03-01. Definitions.

In this chapter, unless the context or subject matter otherwise requires:

1. “Biodiesel production facility” means a producer of a fuel composed of mono-alkyl esters of long chain fatty acids derived from vegetable oil or animal fats that meets American society for testing and materials specification D 6751. The facility must be located in this state.
2. “Biofuel partnership in assisting community expansion fund” or “fund” means a fund established to buy down the interest rate on loans to biodiesel, ethanol, and green diesel production facilities and to value-added operations as provided under this chapter.
3. “Ethanol production facility” means a producer of agriculturally derived denatured ethanol that is suitable for blending with a petroleum product for use in internal combustion engines. The facility must be located in this state.
4. “Green diesel production facility” means a producer of a fuel produced from nonfossil renewable resources, including agricultural or silvicultural plants, animal fats, residue, and waste generated from the production, processing, and marketing of agricultural products, silvicultural products, and other renewable resources, which meets applicable American society for testing and materials specifications. The facility must be located in this state.
5. “Value-added operation” includes a producer that engages in dairy and milking or feeding of animals or poultry which enhances the value before sale into the marketplace.

17-03-02. Biofuel partnership in assisting community expansion fund — Continuing appropriation — Administration. [Renumbered]

Effective July 1, 2007, the biodiesel partnership in assisting community expansion fund becomes the biofuel partnership in assisting community expansion fund. All moneys transferred into the fund, interest on fund moneys, and payments to the fund are appropriated for the purposes of this chapter. This fund is not subject to section 54-44.1-11. The Bank of North Dakota shall administer the fund. Notwithstanding any other provision of law, the Bank may transfer any unobligated moneys between funds that have been appropriated by the legislative assembly for interest buydown in the biofuel partnership in assisting community expansion fund and the partnership in assisting community expansion fund.

17-03-03. Fund — Purpose — Interest rate buydown. [Renumbered]

Moneys in the fund must be used for the purpose of buying down the interest rate on loans made by a lead financial institution in participation with the Bank of North Dakota. The Bank of North Dakota’s participation may not exceed eighty percent nor be less than fifty percent of the total loans.

17-03-04. Fund moneys — Eligible uses.

1. 1. The fund moneys may be used to participate in an interest rate buydown on a loan to a biodiesel, ethanol, or green diesel production facility or to a value-added operation for the following eligible uses:
      1. Purchase or construction of real property.
      2. Expansion of facilities.
      3. Purchase or installation of equipment, including a biodigester system.
   2. The loan funds may not be used to refinance any existing debt or for the relocation within this state of the biodiesel, ethanol, or green diesel production facility or the value-added operation.
2. 1. The maximum amount from the fund in the interest rate buydown for a biodiesel, ethanol, or green diesel production facility may not exceed five hundred thousand dollars to any single biodiesel, ethanol, or green diesel production facility under this chapter.
   2. Except as provided in subdivision c, the maximum amount from the fund in the interest rate buydown for a value-added operation may not exceed two hundred fifty thousand dollars to any single value-added operation under this chapter.
   3. If a value-added operation has reached the limit provided for in subdivision b as a result of any activity other than the purchase or installation of a biodigester, that operation is entitled to receive from the fund up to two hundred fifty thousand dollars as an additional interest rate buydown on the operation’s purchase or installation of a biodigester system.
3. The fund participation is limited to the amount required to buy down the interest to five hundred basis points below the national prime interest rate.
4. The Bank of North Dakota shall adopt rules to implement this chapter.

17-03-05. Partnership in assisting community expansion fund incentive limitation.

A biodiesel production facility, ethanol, or green diesel production facility that receives interest buydown from the biofuel partnership in assisting community expansion fund is not eligible to receive interest buydown from the partnership in assisting community expansion fund for the same project during the same biennium.

17-04-01. Wind option agreement — Definition — Termination.

1. A wind option agreement is a contract in which the owner of property gives another the right to produce energy from wind power on that property at a fixed price within a time period not to exceed five years on agreed terms.
2. A wind option agreement is void and terminates if the following have not occurred with respect to the property that is the subject of the wind option agreement within five years after the wind option agreement commences:
   1. A certificate of site compatibility or conditional use permit has been issued, if required; and
   2. A transmission interconnection request is in process and not under suspension.
3. If the requirements of subsection 2 are not met by the owner of the wind option agreement, the owner of the energy rights may provide to the owner of the wind option agreement a notice of termination, by certified mail or other personal delivery, and file the notice with the county recorder in the county in which the real property is located. Termination of the wind option agreement is effective five years after the wind option commences.

17-04-02. Wind easement — Definition. [Renumbered]

For purposes of sections 17-04-03 and 17-04-04, the term wind easement means a right, whether stated in the form of a restriction, easement, covenant, or condition, in a deed, will, or other instrument executed by or on behalf of an owner of land or airspace for the purpose of ensuring adequate exposure of a wind power system to the winds.

17-04-03. Wind easements — Creation — Term — Development required.

1. A property owner may grant a wind easement in the same manner and with the same effect as the conveyance of an interest in real property.
2. The easement runs with the land benefited and burdened and terminates upon the conditions stated in the easement, however:
   1. The easement is void if the following have not occurred with respect to the property that is the subject of the easement within five years after the easement commences:
      1. A certificate of site compatibility or conditional use permit has been issued, if required; and
      2. A transmission interconnection request is in process and not under suspension.
   2. A wind easement is presumed to be abandoned if a period of thirty-six consecutive months has passed with no construction or operation of the wind farm facility. If the operator of the wind farm facility does not file a plan with the public service commission outlining the steps and schedule for continuing construction or operation of the facility within the thirty-six month period, the owner of the energy rights may provide, by certified mail or other personal delivery to the owner of the wind easement, a sixty-day written notice of the intent to terminate the easement. If, within sixty days of the receipt of the notice of the intent to terminate, the owner of the easement fails to provide a written objection to the notice by certified mail or other personal delivery, the owner of the energy rights may file a notice of termination with the county recorder in the county in which the real property is located. Termination of the easement becomes effective when the notice of termination is filed and recorded with the county recorder.

17-04-04. Severance of wind energy rights limited. [Renumbered]

Except for a wind easement created under section 17-04-03 and as otherwise provided in this section, an interest in a resource located on a tract of land and associated with the production of energy for wind power on the tract of land may not be severed from the surface estate. However, nothing in this section may be construed to prohibit or limit the right of a seller of real estate to retain any payments associated with an existing wind energy project.

17-04-05. Wind energy leases — Termination.

1. A lease for wind energy purposes is void and terminates if the following have not occurred with respect to the property that is the subject of the lease within five years after the lease commences:
   1. A certificate of site compatibility or conditional use permit has been issued, if required; and
   2. A transmission interconnection request is in process and not under suspension.
2. A wind lease is presumed to be abandoned if a period of thirty-six consecutive months has passed with no construction or operation of the wind farm facility. If the operator of the wind farm facility does not file a plan with the public service commission outlining the steps and schedule for continuing construction or operation of the facility within the thirty-six month period, the owner of the energy rights may provide, by certified mail or other personal delivery to the owner of the wind easement, a sixty-day written notice of the intent to terminate the lease. If, within sixty days of the receipt of the notice of the intent to terminate, the owner of the lease fails to provide a written objection to the notice by certified mail or other personal delivery, the owner of the energy rights may file a notice of termination with the county recorder in the county in which the real property is located. Termination of the easement becomes effective when the notice of termination is filed and recorded with the county recorder.

17-04-06. Requirements for wind easements and wind energy leases.

1. In a wind easement and a wind energy lease, the easement and lease:
   1. Must be delivered to the property owner with a cover page containing the following paragraph with the correct term of years in the blank and in at least sixteen-point type:
   2. May not be executed by the parties until at least ten business days after the first proposed easement or lease has been delivered to the property owner.
   3. May not require either party to maintain the confidentiality of any negotiations or the terms of any proposed lease or easement except that the parties may agree to a mutual confidentiality agreement in the final executed lease or easement.
   4. Must preserve the right of the property owner to continue conducting business operations as currently conducted for the term of the agreement. When a wind energy facility is being constructed and when it is completed, the property owner must make accommodations to the developer, owner, or operator of the facility for the facility’s business operations to allow the construction and operation of the wind energy facility.
   5. May not make the property owner liable for any property tax associated with the wind energy facility or other equipment related to wind energy generation.
   6. May not make the property owner liable for any damages caused by the wind energy facility and equipment or the operation of the generating facility and equipment, including liability or damage to the property owner or to third parties.
   7. Must obligate the developer, owner, and operator of the wind energy facility to comply with federal, state, and local laws and regulations and may not make the property owner liable in the case of a violation.
   8. Must allow the property owner to terminate the agreement if the wind energy facility has not operated for a period of at least three years unless the property owner receives the normal minimum lease payments that would have occurred if the wind energy facility had been operating during that time. For the purposes of this subdivision, the term “normal minimum lease payments” means a payment in the lease or easement called a “base amount” or “minimum payment”, or similar language, or if this language is not provided for in the lease or easement, payments at least equal to the periodic payments received by the property owner in the last calendar year that the wind energy facility was in full operation.
   9. Must state clearly any circumstances that will allow the developer, owner, and operator of the wind energy facility to withhold payments from the property owner.
2. The owner of the wind energy facility shall carry general liability insurance relating to claims for property damage or bodily injury arising out of the construction or operation of the wind energy facility project site and may include the property owner as an additional insured on the policy.
3. If the terms of the wind easement or wind energy lease are not in accordance with this section, the court may reform the easement or lease in accordance with this section, void the easement or lease, or order any relief allowed by law.

Special message to property owners

This is an important agreement our lawyers have drafted that will bind you and your land for up to ________ years. We will give you enough time to study and thoroughly understand it. We strongly encourage you to hire a lawyer to explain this agreement to you. You may talk with your neighbors about the wind project and find out if they also received a proposed contract. You and your neighbors may choose to hire the same attorney to review the agreement and negotiate changes on your behalf.

17-04-07. Wind energy facility liens.

Wind turbines and associated facilities that are part of an electric energy conversion facility designed for or capable of generation by wind energy conversion exceeding one-half megawatt of electricity may not be considered improvements for purposes of chapter 35-27.

17-05-01. Declaration of findings and public purpose. [Renumbered]

The legislative assembly finds and declares that:

1. North Dakota has twenty-five billion tons of abundant, recoverable lignite coal reserves, enough to last eight hundred years at today’s thirty million tons of annual production.
2. The lignite industry presently generates electricity for more than two million people in the northern great plains region and there is increased regional demand for development of North Dakota’s lignite resources.
3. North Dakota has enormous wind resources, providing additional economic opportunity to broaden and diversify the state’s economy and diversify the region’s energy supply, and that timely development of these resources will stabilize and increase revenues to the state.
4. Transmission constraints impede the development of the state’s lignite and wind resources.
5. An essential governmental function and public purpose is to assist with the removal of electric transmission export constraints and to assist with upgrading and expansion of the region’s electrical transmission grid to facilitate the development of the state’s abundant natural resources.
6. Developing and exporting our natural resources will promote the public interest by increasing employment, stimulating economic activity, augmenting sources of tax revenue, fostering economic stability, and improving the state’s economy.
7. State ownership of electrical transmission facilities may not exceed the extent and duration necessary or useful to promote the public interest.

17-05-02. North Dakota transmission authority. [Renumbered]

There is created the North Dakota transmission authority, which shall be governed by the industrial commission.

17-05-03. Definitions. [Renumbered]

As used in this chapter:

1. “Authority” means the industrial commission acting as the North Dakota transmission authority.
2. “Commission” means the industrial commission.
3. “Notice of intent” means the notice a person delivers to the authority indicating willingness to construct transmission facilities contemplated by the authority or to provide services fulfilling the need for such transmission facilities.
4. “Project area” means the geographic area in which construction of a transmission facility contemplated by the authority is likely to occur.
5. “Transmission facilities” means electric transmission lines and substations, and related structures, equipment, rights of way, and works of public improvement, located within and outside this state, excluding electric generating facilities.

17-05-04. Purposes. [Renumbered]

The purpose for which the authority is created is to diversify and expand the North Dakota economy by facilitating development of transmission facilities to support the production, transportation, and utilization of North Dakota electric energy.

17-05-05. Powers.

The authority has all powers necessary to carry out the purposes of this chapter, including the power to:

1. Make grants or loans and to provide other forms of financial assistance as necessary or appropriate for the purposes of this chapter;
2. Make and execute contracts and all other instruments necessary or convenient for the performance of its powers and functions under this chapter;
3. Borrow money and issue evidences of indebtedness as provided in this chapter;
4. Receive and accept aid, grants, or contributions of money or other things of value from any source, including aid, grants, or contributions from any department, agency, or instrumentality of the United States, subject to the conditions upon which the aid, grants, or contributions are made and consistent with the provisions of this chapter;
5. Issue and sell evidences of indebtedness in an amount or amounts as the authority may determine, but not to exceed eight hundred million dollars, plus costs of issuance, credit enhancement, and any reserve funds required by agreements with or for the benefit of holders of the evidences of indebtedness for the purposes for which the authority is created under this chapter, provided that the amount of any refinancing shall not be counted toward such eight hundred million dollar limitation to the extent it does not exceed the outstanding amount of the obligations being refinanced;
6. Refund and refinance its evidences of indebtedness;
7. Make and execute interest rate exchange contracts;
8. Enter lease-sale contracts;
9. Pledge any and all revenues derived by the authority under this chapter or from a transmission facility, service, or activity funded under this chapter to secure payment or redemption of the evidences of indebtedness;
10. To the extent and for the period of time necessary for the accomplishment of the purposes for which the authority was created, plan, finance, develop, acquire, own in whole or in part, lease, rent, and dispose of transmission facilities;
11. Enter contracts to construct, maintain, and operate transmission facilities;
12. Consult with the public service commission, regional organizations, and any other relevant state or federal authority or persons as necessary and establish reasonable fees, rates, tariffs, or other charges for transmission facilities and all services rendered by the authority;
13. Lease, rent, and dispose of transmission facilities owned pursuant to this chapter;
14. Investigate, plan, prioritize, and propose corridors of the transmission of electricity;
15. Participate in and join regional transmission organizations;
16. Participate in studies of transmission options for the purpose of identifying opportunities for private transmission investment or private public investment options in transmission which will increase opportunity for export from the state consistent with maintaining a stable grid for the load serving entities in North Dakota; and
17. Do any and all things necessary or expedient for the purposes of the authority provided in this chapter.

17-05-06. Authority may act. [Renumbered]

1. The authority shall coordinate its plans for transmission facilities with regional organizations having transmission planning responsibilities for the project area.
2. Before exercising its powers to construct transmission facilities granted to it in this chapter, the authority shall publish, in a newspaper of general circulation in North Dakota and in a newspaper in the project area, a notice describing the need for transmission facilities contemplated by the authority. Persons willing to construct the transmission facilities or furnish services to satisfy the needs described in the notice have a period of one hundred eighty days from the date of last publication of the notice within which to deliver to the authority a notice of intent. After receipt of a notice of intent, the authority may not exercise its powers to construct transmission facilities unless the authority finds that exercising its authority would be in the public interest. In making such a finding the authority shall consider factors including economic impact to the state, economic feasibility, technical performance, reliability, past performance, and the likelihood of successful completion and ongoing operation.
3. The authority may require a person giving a notice of intent to provide a bond and to submit a plan for completion of the transmission facilities or commencement of services within a period of time acceptable to the authority. If no person submits an adequate plan or bond as required by the authority, the authority may proceed with contracting for construction of the facility described in the authority’s published notice.

17-05-07. Authority may participate upon request. [Renumbered]

The authority may participate in a transmission facility through financing, planning, joint ownership, or other arrangements at the request of a person giving a notice of intent.

17-05-08. Evidences of indebtedness.

1. Evidences of indebtedness of the authority must be authorized by resolution of the industrial commission and may be issued in one or more series and must bear such date or dates, mature at such time or times, bear interest at such rate or rates of interest per year, be in such denomination or denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable from such sources in such medium of payment at such place or places within or without the state, and be subject to such terms of redemption, with or without premium, as such resolution or resolutions may provide. Evidences of indebtedness of the authority are to mature not more than forty years from the date of issue. Evidences of indebtedness of the authority may be sold at such time or times and at such price or prices as the authority determines.
2. Evidences of indebtedness and grants, loans, or other forms of financial assistance issued by the authority are payable solely from:
   1. Revenues that may be received by the authority from transmission facilities, services, or activities funded under this chapter with the proceeds of the authority’s evidences of indebtedness, subject only to prior payment of the reasonable and necessary expenses of operating and maintaining such transmission facilities except depreciation.
   2. Amounts received by the authority under loans authorized under this chapter.
   3. Revenues received by the authority under this chapter from any source other than general tax revenues.
3. The evidences of indebtedness are not subject to taxation by the state or any of its political subdivisions and do not constitute a debt of the state of North Dakota within the meaning of any statutory or constitutional provision and must contain a statement to that effect on their face.
4. The authority may establish and maintain a reserve fund for evidences of indebtedness issued under this chapter. There must be deposited in the reserve fund:
   1. All moneys appropriated by the legislative assembly to the authority for the purpose of the reserve fund.
   2. All proceeds of evidences of indebtedness issued under this chapter required to be deposited in the reserve fund by the terms of any contract between the authority and the holders of its evidences of indebtedness or any resolution of the authority.
   3. Any lawfully available moneys of the authority which it may determine to deposit in the reserve fund.
   4. Any moneys from any other source made available to the authority for deposit in the reserve fund or any contractual right to the receipt of moneys by the authority for the purpose of the fund, including a letter of credit, surety bond, or similar instrument.
5. The authority must include in its biennial request to the office of the budget the amount, if any, necessary to restore any reserve fund established under this section to an amount equal to the amount required to be deposited in the fund by the terms of any contract or resolution approved by the commission.
6. The commission may approve a resolution for the issuance of bonds as provided in this section which states in substance that this subsection is applicable to any required debt service reserve for bonds issued under that resolution in an aggregate amount not to exceed two hundred forty million dollars plus costs of issuance, credit enhancement, and any reserve funds required by agreements with or for the benefit of holders of the evidences of indebtedness for the purposes for which the authority is created under this chapter. The amount of any refinancing, however, may not be counted toward the two hundred forty million dollar limitation to the extent the amount does not exceed the outstanding amount of the obligations being refinanced. No more than thirty percent of the total project costs or the appraised value, whichever is greater, for any single transmission facility project may be financed by bonds issued under this section which are supported by the debt service reserve fund approved by the commission under this subsection. To ensure the maintenance of the required debt service reserve fund approved by the commission under this subsection, the legislative assembly shall appropriate and pay to the authority for deposit in the reserve fund any sum, certified by the commission as necessary to restore the reserve fund to an amount equal to the required debt service reserve fund approved by the commission.
7. Any pledge of revenue made by the industrial commission as security for the authority’s evidences of indebtedness is valid and binding from time to time when the pledge is made. The revenues or other moneys so pledged and thereafter received by the authority are immediately subject to the lien of any such pledge without any physical delivery thereof or further act, and the lien of any such pledge is valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the authority, regardless of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be filed or recorded, except in the records of the authority.
8. The authority is authorized and empowered to obtain from any entity of the state, any department or agency of the United States, or any nongovernmental insurer any insurance, guaranty, or liquidity facility, or from a financial institution a letter of credit to the extent such insurance, guaranty, liquidity facility, or letter of credit now or hereafter available, as to, or for, the payment or repayment of, interest or principal, or both, or any part thereof, on any evidences of indebtedness issued by the authority pursuant to this chapter, and to enter into any agreement or contract with respect to any such insurance, guaranty, letter of credit, or liquidity facility, and pay any required fee, unless the same would impair or interfere with the ability of the authority to fulfill the terms of any agreement made with the holders of its evidences of indebtedness.
9. After issuance, all evidences of indebtedness of the authority are conclusively presumed to be fully authorized and issued under the laws of the state, and any person or governmental unit is estopped from questioning their authorization, sale, issuance, execution, or delivery by the authority.
10. When the authority has issued evidences of indebtedness and pledged the revenues of the transmission facilities for the payment thereof as herein provided, the authority shall operate and maintain the transmission facilities and shall impose and collect fees and charges for the services furnished by the transmission facilities, including those furnished to the authority itself, in the amounts and at the rates as are fully sufficient at all times to:
    1. Pay the expenses of operating and maintaining the transmission facilities;
    2. Provide a debt service fund sufficient to assure the prompt payment of principal and interest on the evidences of indebtedness at maturity; and
    3. Provide a reasonable fund for contingencies as may be required by the resolution authorizing the evidences of indebtedness.

17-05-09. Public service commission jurisdiction and consultation.

1. The authority and the transmission facilities built under this chapter, until sold or disposed of by the authority, are exempt from the provisions of title 49 except for chapters 49-22 and 49-22.1. Upon sale or disposal by the authority, transmission facilities built under this chapter are subject to the provisions of title 49.
2. The authority shall consult with the public service commission with respect to the rates charged by the authority for use of its transmission facilities and such rates must thereafter be considered just and reasonable in proceedings before the public service commission pursuant to section 49-05-06.
3. The authority shall conduct its activities in consultation with transmission providers, wind interests, the lignite research council, and other persons having relevant expertise.

17-05-10. Bonds as legal investments. [Renumbered]

The bonds of the authority are legal investments which may be used as collateral for public funds of the state, insurance companies, banks, savings and loan associations, investment companies, trustees, and other fiduciaries which may properly and legally invest funds in their control or belonging to them in bonds of the authority. The state investment board may invest in bonds of the authority in an amount specified by the state investment board.

17-05-11. Disposal of transmission facilities. [Renumbered]

1. Before becoming an owner or partial owner of a transmission facility, the authority shall develop a plan identifying:
   1. The public purposes of the authority’s ownership;
   2. Conditions that would make the authority’s ownership no longer necessary for accomplishing those public purposes; and
   3. A plan to divest the authority’s ownership interest as soon as economically prudent once those conditions occur.
2. For transmission facilities that are leased to another entity by the authority, at the end of the lease, absent default by the lessee, the authority shall convey its interest in the transmission facilities to the lessee.
3. For transmission facilities that are owned by the authority without a lessee, the authority shall divest itself of ownership as soon as economically prudent in accordance with the divestiture plan developed pursuant to subsection 1.

17-05-12. Exemption from property taxes.

Transmission facilities built under this chapter are exempt from property taxes for a period determined by the authority not to exceed the first five taxable years of operation; after this initial period, transmission lines of two hundred thirty kilovolts or larger and the transmission lines’ associated transmission substations remain exempt from property taxes but are subject to a per mile tax at the full per mile rate and subject to the same manner of imposition and allocation as the per mile tax imposed by section 57-33.2-02 without application of the discounts provided in that section.

17-05-13. Reporting requirements.

1. The authority shall deliver a written report on its activities to the legislative council each biennium. Notwithstanding chapter 54-60.1, the authority shall provide an annual report to the industrial commission detailing activities and expenditures incurred during the preceding year.
2. The authority shall deliver a written report on the status of the resilience of the electric grid to the legislative council and the industrial commission by September 1, 2022, and annually thereafter. The report must be forwarded by the industrial commission to the regional transmission operators in the state.
   1. The information for the report should be collected from publicly available information to the extent possible. If public information is unavailable, the authority shall request a generation facility and a transmission owner to provide the information needed to complete the report.
   2. The report may be a short-term and long-term projection of the following:
      1. The adequacy of the state's electric grid to meet the demands of load within the state and to continue to export electricity from the state;
      2. The resilience of the state's electric grid, including local resilience; and
      3. The plans of generation owners, developers, or operators to add or remove generation assets connected to an independent system or regional transmission operator in excess of an aggregate of twenty-five megawatts.

17-05-14. Access to authority records — Confidentiality. [Renumbered]

1. Materials and data submitted to, or made or received by, the authority, to the extent that the authority determines the materials or data consist of trade secrets or commercial, financial, or proprietary information of individuals or entities applying to or contracting with the authority or receiving authority services under this chapter are subject to section 44-04-18.4.
2. A person or entity must file a request with the authority to have material designated as confidential under subsection 1. A request to have material designated as confidential is exempt as defined in section 44-04-17.1. The request must contain any information required by the authority and must include at least:
   1. A general description of the nature of the information sought to be protected.
   2. An explanation of why the information derives independent economic value, actual or potential, from not being generally known to other persons.
   3. An explanation of why the information is not readily ascertainable by proper means by other persons.
   4. A general description of any person or entity that may obtain economic value from disclosure or use of the information and how the person or entity may obtain this value.
   5. A description of the efforts used to maintain the secrecy of the information.
3. The information submitted under subsection 2 is confidential. The authority shall examine the request and determine whether the information is relevant to the matter at hand and is a trade secret under the definition in section 47-25.1-01 or 44-04-18.4. If the authority determines the information is either not relevant or not a trade secret, the authority shall notify the requester and the requester may ask for the return of the information and request within ten days of the notice. If no return is sought, the information and request are a public record.

17-06-01. Definitions.

As used in this chapter:

1. “Council” means the North Dakota ethanol council.
2. “Producer” means the owner of a facility that is located in this state and which produces annually more than one million gallons of agriculturally derived denatured ethanol that is suitable for blending with a petroleum product for use in internal combustion engines.

17-06-02. Council — Membership — Election — Term.

1. The council consists of one individual appointed by each producer.
2. Each member of the council must be employed by a producer in the state.
3. The term of each member is four years and begins on April first following the members’ appointment. The terms must be staggered by the council to ensure that an approximately equal number of appointments expire each year.
4. If at any time during a member’s term the member ceases to possess any of the qualifications provided by this section, the member’s office is deemed vacant and the producer who appointed that member shall appoint another qualified individual for the remainder of the term.

17-06-03. Election of chairman — Meetings.

1. Annually, the council shall elect one member to serve as the chairman.
2. The chairman shall call all meetings of the council and shall call a special meeting of the council within seven days when petitioned to do so by three council members.

17-06-04. Council members — Compensation.

Each member of the council is entitled to receive compensation in the amount established by the council, but not exceeding one hundred thirty-five dollars per day plus reimbursement for expenses as provided by law for state officers if the member is attending meetings or performing duties directed by the council.

17-06-05. Council — Powers.

1. The council may:
   1. Expend moneys collected pursuant to this chapter for its administration;
   2. Employ, bond, and compensate necessary personnel;
   3. Accept gifts, grants, and donations of money, property, and services to carry out this chapter;
   4. Contract with any person for any purpose permitted under this chapter;
   5. Sue and be sued; and
   6. Do all things necessary and proper to enforce and administer this chapter.
2. The council may not engage in a commercial business enterprise.

17-06-06. Council — Duties.

1. The council shall determine the uses to which any moneys raised under this chapter may be expended. The uses may include:
   1. The funding of research, education programs, promotion, and market development efforts; and
   2. The support of state, regional, national, and international entities that promote ethanol utilization.
2. The council shall develop and disseminate information regarding the purpose of the ethanol assessment and ways in which the assessment benefits producers.

17-06-07. Assessment.

An assessment at the rate of three one-hundredths of one cent per gallon is imposed upon all ethanol produced and sold in this state.

17-06-08. Calculation of assessment — Records.

1. Each producer shall calculate the assessment imposed by section 17-06-07 at the time of sale.
2. Each producer shall keep documents regarding its ethanol production and sales for a period of three years. The producer shall make these records available to the council for examination upon request.
3. No later than thirty days after the conclusion of each calendar quarter, each producer shall file with the council a report stating the quantity of ethanol produced and the quantity sold during the preceding quarter.

17-06-09. Submission of assessments — Civil penalty.

1. Each producer shall forward to the council all assessments imposed by section 17-06-07 within thirty days after the conclusion of each calendar quarter.
2. If a producer fails to submit the assessments as required by this section, the council may impose a penalty equal to ten percent of the amount due, plus interest at the rate of twelve percent per annum from the due date.

17-06-10. Refund of assessment.

1. To receive a refund of any assessment paid in accordance with this chapter, a producer shall submit to the council a written request for a refund application within sixty days after the conclusion of each calendar quarter.
2. The producer shall complete the refund application and return the application to the council, together with a record of the assessment collected, within ninety days after the conclusion of each calendar quarter. The council shall then refund the net amount of the assessment that had been collected.
3. If a request for a refund is not submitted to the council within the prescribed time period, the producer is presumed to have agreed to the assessment.

17-06-11. Expenditure of funds.

The council shall approve all expenditures made pursuant to this chapter. The expenditures must be recorded as directed by the office of management and budget.

17-06-12. Continuing appropriation.

The council shall forward all moneys received under this chapter to the state treasurer for deposit in the ethanol fund. All moneys in the ethanol fund are appropriated on a continuing basis to the council to carry out this chapter.

17-06-13. Penalty.

Any person willfully violating this chapter is guilty of a class B misdemeanor.

17-07-01. Energy policy commission.

1. The energy policy commission is composed of:
   1. The commissioner of commerce, or the commissioner’s designee;
   2. A representative of the agriculture community appointed by the governor;
   3. A representative recommended by the lignite energy council appointed by the governor;
   4. A representative recommended by the North Dakota petroleum council appointed by the governor;
   5. A member from the biodiesel or green diesel industry appointed by the governor;
   6. A member from the biomass industry appointed by the governor;
   7. A member from the wind industry appointed by the governor;
   8. A member from the ethanol industry appointed by the governor;
   9. A representative recommended by the North Dakota petroleum marketers association appointed by the governor;
   10. A member from the North Dakota investor-owned electric utility industry appointed by the governor;
   11. A member from the generation and transmission electric cooperative industry appointed by the governor;
   12. A member from the lignite coal-producing industry appointed by the governor;
   13. A member from the refining or gas-processing industry appointed by the governor; and
   14. Additional nonvoting members appointed by the governor.
2. Each member of the commission shall serve for a term of two years, beginning July first, may be reappointed for additional terms, and serves at the pleasure of the governor.
3. The commissioner of commerce, or the commissioner’s designee, is chairman of the commission.
4. The commission shall meet at least four times per biennium or as often as the chairman deems necessary. The commission shall hold at least two public hearings per biennium to receive testimony regarding issues pertinent to the state’s comprehensive energy policy and low-emission technology initiative. The department of commerce shall provide staffing for the commission.
5. The commission may identify and make recommendations to the clean sustainable energy authority on technologies related to low-emission advancements. The recommendations may include consideration of advancements or developments that have led to increased economic benefits and positive environmental public health benefits for the citizens and visitors of North Dakota, including cleaner air, soil, and water; improved efficiencies; reduction of waste; lower carbon-intensive agricultural products or processes; and quantities of energy used. The recommendations also may consider other factors, including environmental, social, and governance policies and the effect on financial or capital markets. The commission shall consider and make recommendations on policies to ensure the availability of affordable, reliable, resilient, and sustainable energy in the state; to expand value-added energy; and to expand the opportunities to diversify the use of North Dakota’s natural resources, which may increase state tax revenues. The commission shall study and evaluate critical energy infrastructure and shall make recommendations to ensure the state’s comprehensive energy policy supports electrical grid reliability and resiliency and supports sufficient dispatchable generation capacity to avoid brownouts, blackouts, or outages. The commission shall monitor the progress of implementing and achieving environmental benefits through the state’s comprehensive energy policy.
6. The legislative assembly shall consider recommendations from the commission to develop a comprehensive energy policy for the state. The commission shall report its recommendations biennially to the legislative management.
7. The members of the commission who are not state employees are entitled to mileage and expenses as provided by law for state officers and employees. Unless otherwise provided in this subsection, the expenses of appointed members are to be paid by the department of commerce. A state employee who is a member of the commission must receive that employee’s regular salary and is entitled to mileage and expenses, to be paid by the employing agency.

17-08-01. Definitions. [Expired]

Expired under S.L. 2009, ch. 193, § 7.

17-08-02. Biofuel blender pump incentive fund — Administration. [Expired]

Expired under S.L. 2009, ch. 193, § 7.

17-08-03. Blender pumps — Requirements. [Expired]

Expired under S.L. 2009, ch. 193, § 7.

17-08-04. Biofuel blender pump incentive fund — Administrative costs. [Expired]

Expired under S.L. 2009, ch. 193, § 7.

17-09-01. Definitions. [Expired]

Expired under S.L. 2011, ch. 50, § 36.

17-09-02. Biofuel blender pump incentive program — Administration. [Expired]

Expired under S.L. 2011, ch. 50, § 36.

17-09-03. Blender pumps — Requirements. [Expired]

Expired under S.L. 2011, ch. 50, § 9.

17-09-04. Biofuel blender pump incentive program — Administrative costs. [Expired]

Expired under S.L. 2011, ch. 50, § 9.