AN ACT to amend and reenact sections 54-63.1-03 and 54-63.1-07 of the North Dakota Century Code, relating to the membership of the clean sustainable energy authority and the clean sustainable energy fund line of credit; and to provide for a transfer.
SB2188 makes three main changes to North Dakota’s clean sustainable energy program. First, it expands the Clean Sustainable Energy Authority from 17 to 18 members by adding one nonvoting technical advisor and updating the list of agency representatives serving in advisory roles. The bill also preserves the authority’s structure of nine voting members, sets meeting and quorum requirements, and keeps the rule that recommendations must be approved by a majority of voting members before going to the commission.
Second, the bill updates the Clean Sustainable Energy Fund’s financing provisions. It authorizes the Bank of North Dakota to continue extending a line of credit to the Industrial Commission to support loans and loan guarantees from the fund, but extends the access period through June 30, 2029, and keeps the cap at $390 million. It also clarifies repayment expectations and allows the Industrial Commission to seek a deficiency appropriation if fund balances are not sufficient to repay the line of credit by that date.
Third, SB2188 directs a one-time transfer of $50 million from the Strategic Investment and Improvements Fund to the Clean Sustainable Energy Fund during the 2025-2027 biennium. Of that amount, $10 million is designated for grants and $40 million is designated to repay the line of credit and provide additional loan funding. The bill therefore increases available resources for clean energy grants and financing while maintaining the existing continuing appropriation structure for the fund.
The bill’s impact on state law is to amend the statutory framework governing the clean sustainable energy authority and fund, including board composition, borrowing authority, repayment timing, and funding sources. It affects the Industrial Commission, the Bank of North Dakota, and entities eligible for clean energy grants, loans, or loan guarantees under chapter 54-63.1. It also shifts state money from a strategic investment account into the clean energy fund, which may affect how those dollars are available for other state priorities.
The overall sentiment appears strongly favorable, as reflected by the large bipartisan margins in both chambers: 45-1 in the Senate and 65-26 in the House. The available record does not include committee testimony or debate, so specific arguments are not documented here. The main point of possible contention is the use of $50 million from the Strategic Investment and Improvements Fund and the continued reliance on a sizable state-backed line of credit for energy financing, which may have raised concerns about fiscal exposure, repayment risk, or the appropriate scope of state support for clean energy projects.
SB2188 amends North Dakota Century Code sections 54-63.1-03 and 54-63.1-07 to expand and update the Clean Sustainable Energy Authority and the Clean Sustainable Energy Fund. It increases the authority’s membership by one nonvoting technical advisor, extends the Industrial Commission’s access to a Bank of North Dakota line of credit through June 30, 2029, keeps the credit limit at $390 million, and directs a $50 million transfer from the Strategic Investment and Improvements Fund into the clean energy fund for grants, loan repayment, and additional lending capacity. The bill affects the Industrial Commission, Bank of North Dakota, state energy councils, and recipients of clean energy financing.
The bill appears to have broad support. It passed the Senate 45-1 and the House 65-26, indicating strong bipartisan approval overall, though with more opposition in the House than the Senate. No committee transcripts are available, so the record does not show detailed debate, but the vote totals suggest the measure was generally viewed as a routine financing and governance update for the state’s clean energy program.
The likely areas of contention are fiscal rather than structural. Critics could object to transferring $50 million from the Strategic Investment and Improvements Fund, especially the $40 million used to repay or support the line of credit, because it commits state resources to a specific energy program. There may also be concern about the continued use of a large state-backed line of credit for loans and loan guarantees, including the possibility of a deficiency appropriation if the fund cannot repay the borrowing by the deadline. Supporters, by contrast, appear to have favored strengthening the fund’s capacity and keeping the clean energy financing program operating.