Transcript Highlights:

• This will help reduce the cost of duplicative fees and lower overall development costs.
• Matt Kremens, on behalf of the California-Nevada Conference of Operating Engineers and Operating Engineers
• In effect, this bill, SB 1283, reduces cost and uncertainty for private applicants while increasing costs
• ... ...reduces cost and uncertainty for private applicants while increasing cost, legal exposure, and
• operational risk for local governments.

Summary: The committee heard a long agenda of housing, local government, and governance bills, beginning without a quorum and proceeding as a subcommittee until quorum was established. SB 1003, by Senator Grayson, would create an Infrastructure Partnership Financing Program to help local governments and developers fund infill housing infrastructure; supporters said infrastructure costs often prevent projects from penciling out, while a senator questioned whether the state would actually fund the new program. The bill passed the committee 3-1 on call. The committee also adopted a consent calendar covering SB 1169, SB 1086, SB 1126, and SB 1439-1442, also 3-1 on call. SB 1014 would require local jurisdictions to provide early good-faith estimates of on-site and off-site improvements and bar undisclosed later requirements; Habitat for Humanity, SPUR, and housing advocates supported the bill, while the City of San Mateo opposed the preliminary-application timing. Members raised questions about the 30-business-day deadline and coordination with other agencies. The bill passed 4-2 on call. SB 1036, which would require fee credits for prior site uses when redeveloping a site with similar prior uses, drew broad support and no opposition and passed 5-0 on call. SB 1145, a district bill for the Concord Naval Weapons Station reuse project, would streamline CEQA and federal base-closure review for qualifying projects; labor, the city, and county supported it, while housing legal advocates opposed unless amended over Surplus Land Act concerns. The bill passed 6-0 on call after discussion of affordability and enforceability amendments. The committee then heard SB 908, which would streamline permits for energy-code-compliant residential window replacements and limit city/HOA design restrictions; supporters said it would let homeowners and affordable housing providers lower energy costs, while local government groups opposed, citing local control and design standards. It passed 3-1 on call. SB 1172, the Local Tax Savings Act, would add guardrails and transparency to local tax-sharing consultant agreements; the City of Shafter and League of California Cities supported it, and it passed 4-0 on call. SB 1379 would separate the Riverside County Sheriff-Coroner offices and create an independent medical examiner; supporters cited in-custody death rates and public trust concerns, while the sheriff’s association and county representatives opposed on cost and local control grounds. The bill passed 4-1 on call. Finally, SB 1283 would expand streamlined permitting for EV charging stations to include canopies and on-site energy storage systems; EV industry supporters said the bill updates outdated rules, while cities and counties warned about safety review, liability, and litigation risk. Members discussed battery storage safety and local permitting authority, and the bill passed 4-0 on call. The committee also heard SB 1414, which would create an independent redistricting commission for San Bernardino County; supporters argued it would improve transparency and reduce political self-interest, while the county opposed due to its existing advisory commission and estimated implementation costs. The transcript cuts off during questioning on SB 1414, with no final vote shown.

Transcript Highlights:

• And then operational budget again a 1.45 million and this is.
• Travel renter, there's just a lot of costs have gone up for us.
• Talk about how the commission of land office operates.
• OEQA reviewed operational expenses and identified areas where costs could be reduced without affecting
• This reduction reflects sustained cost efficiencies through technology, streamlined operations, and efficiencies

Committee: House A&B Education Subcommittee

Transcript Highlights:

• It's a figure that comes in line with what the operational cost for the MPTC is.
• The cost of prosecuting, the cost of doing a case, the cost of investigating a case.
• So we have buttressed and supplemented the capital money with our own operating costs.
• this cost.
• You mentioned no-cost calls. There's a $12 million cost, apparently.

Committee: Joint Joint Committee on Ways and Means

Summary: The hearing was held in Clinton Town Hall as part of the Joint Committee on Ways and Means’ budget review, with local officials welcoming legislators and noting the long agenda of many panels. The main presentation was from Secretary Terrence Reedy of the Executive Office of Public Safety and Security, who outlined the Healey-Driscoll administration’s FY26 proposal for the secretariat, including a $1.7 billion budget and a 7% increase over FY25. He described investments in emergency preparedness, hate-crime prevention, reentry programming, technology modernization, internships, and public safety training, while also noting some reductions driven by resource constraints, including cuts to certain grant programs and administrative costs. Committee members also raised concerns about federal uncertainty and how it could affect state budgets and public safety planning. A major portion of the questioning focused on the Department of Correction. Secretary Reedy and Commissioner Sean Jenkins said the biggest challenges are staffing, officer wellness, facility safety, and contraband—especially K2. They described steps taken at MCI Souza and other facilities, including reducing population at the maximum-security unit, changing management, removing metal products and free weights, improving screening and roll calls, adding a rapid response team, and increasing investigative and technological efforts to combat K2. They also discussed the closure of MCI Concord, saying it was driven by high maintenance costs and staffing needs, and explained that savings are being used to improve staffing patterns and address deferred maintenance over time rather than producing immediate large budget reductions. Members also questioned the budget’s impact on police training and community policing. The administration defended the increase in police academy tuition from $3,200 to $6,000 as reflecting true training costs and said it would still be subsidized by the state, while acknowledging the burden on small municipalities. They said the MPTC is expanding regional training and considering proposals such as Greenfield Community College’s. On community policing, officials emphasized uniform statewide training, de-escalation, and communication skills. The State Police also announced an outside review of the academy by the International Association of Chiefs of Police and said the next class will be split into two smaller groups to improve oversight and allow quicker implementation of recommendations. Other topics included ICE and federal immigration enforcement, with Reedy saying state law prohibits Massachusetts law enforcement from acting in a civil immigration capacity and that no state dollars were used in the Tufts-related ICE operation mentioned by a member. Senators and representatives also raised the upcoming FIFA World Cup, warning that it will require significant public safety resources and likely federal funding. Additional discussion covered restorative justice and juvenile diversion, health care costs in DOC, electronic health records, and the need for more diverse and culturally competent public safety staffing. No votes were taken during the hearing.

Transcript Highlights:

• Housing cost burden means that you're paying more than 30% of your income toward your housing costs.
• , you know, the state costs go up proportionately. ...put them in an institution, and then our costs,
• I visited 12 different operating companies, almost all the largest operating companies in the state,
• And that is the lateral lengths and the operational efficiencies that operators are gaining.
• And that is the lateral links and the operational efficiencies that operators are gaining.

Summary: The committee met as the Budget Section’s Regulatory Division and first reviewed base budget materials for the North Dakota Housing Finance Agency and the Department of Mineral Resources. Legislative Council explained the blue-sheet budget summaries and historical funding trends. The Housing Finance Agency then reported on its ongoing homeownership, housing incentive, and homelessness programs, noting that its new FTEs are being filled, loan servicing remains above benchmark, and the agency is operating largely on special and federal funds rather than general fund dollars. Housing Finance officials said the Housing Incentive Fund continues to be heavily oversubscribed, with requests far exceeding available dollars, and described how funds are being used for multifamily gap financing, rural single-family development, community land trusts, and homeless prevention/rapid rehousing. Members asked about performance measures, the number of people served, and the relationship between housing costs, wages, and homelessness. The agency said it uses scoring criteria tied to performance and outcomes, and requested that the Legislature maintain or increase funding for HIF, single-family housing, and homeless grants. Committee members also discussed the need to coordinate housing finance efforts with Commerce and broader site-preparation and workforce issues. The Department of Mineral Resources reported that it is on track with its budget, has filled most of its newly authorized reclamation positions, and is moving ahead on several initiatives, including IT modernization through Project North Star, organizational succession planning, and rulemaking for critical minerals and oil and gas programs. The director gave an extensive update on oil and gas activity, explaining that longer laterals and operational efficiencies are keeping production relatively flat even as rig counts decline, and that gas capture remains around 95 percent. Members asked about oil prices, hedging, spacing units, and the effects of geopolitical events on markets and state revenues. The committee also received an update on the enhanced oil recovery grant program and the Pipeline Authority. The EOR program’s $25 million appropriation was fully allocated to six projects, with additional oil and gas research funds also committed, and officials said the projects will require public status reports and final reports. The Pipeline Authority described major natural gas transmission projects, including the upcoming Bakken Express line and the proposed Bakken East project, which recently completed a binding open season after the Industrial Commission selected WBI Energy’s proposal to move forward.

Transcript Highlights:

• Do you want to talk about cost? How much did Hacienda cost this state?
• Community college operations rest on three legs: property taxes, tuition, and state operating aid.
• Unemployment Insurance Operating Fund for the Administrative Cost of the Unemployment Insurance Program
• Well, that 20% doesn't necessarily have to be all operating costs or anything.
• The debt service, the other, and operating costs are paid first. Correct? Mr.

Summary: The joint House and Senate Appropriations committees met to hear the FY 2027 budget package, beginning with the General Appropriations Act (HB 4154/SB 1847). Staff outlined the overall budget, including one-time fund transfers, lump-sum reductions, funding for state employee health insurance, school facilities, corrections, flood and wildfire relief, education and child care, and other ongoing and supplemental items. Members briefly discussed the absence of a requested $1.5 million for the oversight office, but the chair said no amendments would be taken in committee and that only limited technical changes were likely later in the process. Public testimony on the feed bill was largely supportive but focused on specific funding concerns. Testimony highlighted school safety funding, Alzheimer’s services, small business tax expensing provisions, disability oversight for group homes, county use of opioid settlement dollars, adult education/community college funding, victim notification funding, and ESA oversight. Several speakers praised the budget for funding DDD and other services, while others opposed or sought changes to items such as the COMIT group home monitoring program, Maricopa Community Colleges’ lack of operating aid, and a possible cut to the victim notification program. The chair repeatedly emphasized that changes to the negotiated budget would be difficult and should be routed through leadership. The committee then moved quickly through the remaining budget reconciliation bills. Staff summarized bills covering amusement and wagering, capital outlay, commerce, criminal justice, environment, health care, higher education, human services, and K-12 education. Notable provisions included continued wagering assessments, highway and building renewal funding, defense innovation and economic development changes, corrections and wrongful conviction provisions, groundwater and water banking measures, health insurance oversight and opioid settlement provisions, higher education funding and ABOR operating caps, SNAP and housing trust fund changes, and a 2% inflation increase for K-12 formula components. The K-12 bill also included a biometric school safety pilot and a child sexual abuse prevention pilot. No votes were taken in the portion provided, and the chair indicated the committee would continue through the remaining bills.

Transcript Highlights:

• It costs more... Because the city still has to make up the money. It costs more than the 25%.
• But I know how you operate. I know you're an honest broker.
• But I know how you operate. I know you're an honest broker.
• But I know how you operate. I know you're an honest broker.
• and really listening in the time of extreme costs.

Committee: Senate Regulated Industries

Summary: The committee took up several bills and reported each favorably after brief debate and roll call votes. SB 578 would allow wine to be sold in recyclable containers, aligning wine with beer container rules; it had support from Americans for Prosperity. SB 606 clarified when nonpaying guests may be removed from public lodging establishments, updated notice and checkout provisions, and removed a mandatory arrest requirement, with support from Florida Realtors, the Asian American Hotel Association, and the Florida Restaurant and Lodging Association. SB 202 addressed a long-running dispute between Miami Gardens and North Miami Beach over a water utility surcharge, requiring the utility to charge residents in the city where the plant sits the same rate as its own residents; supporters argued it was a fairness issue, while North Miami Beach opposed it as a burden on its residents. All three bills were reported favorably. The committee also approved SB 570, which updates and clarifies the scope of work for swimming pool and spa contractors, and CS/SB 928, which targets non-approved disposable nicotine devices by restricting advertising and display visible to minors, increasing inspections and penalties, and adopting an amendment to clarify the bill does not cover fully unlawful products and to add a 500-foot school buffer for smoke shops. SB 346, dealing with state preemption of local regulation of hoisting equipment, was reported favorably after testimony about the St. Petersburg crane collapse during Hurricane Milton; supporters said local governments need authority to address hurricane-related crane safety, while builders and contractors warned against patchwork regulation and urged a more targeted approach. The committee then considered SB 652, creating Veterinary Professional Associates to perform certain tasks under veterinarian supervision, including limited surgical procedures after an amendment clarified those procedures are limited to spay/neuter and non-cavity surgeries. Supporters said the bill would expand access to veterinary care and help shelters, while some veterinarians expressed concern about training and safety; the bill was reported favorably. Finally, the committee took up SB 354 on the Public Service Commission, adopting a substitute amendment that would expand the commission, require stronger financial expertise and more detailed rate justifications, set rate-filing schedules, tighten storm-hardening review, and add transparency rules for nonprofit water and wastewater utilities; the bill drew support from consumer advocates and AARP, while Florida Rural Water warned of unintended consequences for nonprofit systems. The transcript ends while testimony on SB 354 is still underway, with no final vote shown in the excerpt.

Transcript Highlights:

• Meanwhile, the demolition costs and remediation that we need to do, those costs are only continuing to
• We're moving now into operations.
• operational... ...to make sure that as the network is operated, it's operated to the state standards
• Do you operate the broader network?
• But they also operate networks in Texas... ...but they also operate networks in Texas, Florida, I believe

Summary: The hearing began with a vote-only agenda and then focused first on San Mateo County’s request to restore in-lieu vehicle license fee (VLF) funding. County officials, city leaders, labor representatives, nonprofits, and public safety advocates argued that the loss of roughly $157 million would force major cuts to homelessness services, housing assistance, mental health programs, libraries, parks, fire and police staffing, and other local services. They described the current formula as outdated and unfair, tied to school funding and basic-aid dynamics that no longer work for San Mateo County, and urged both an immediate budget restoration and a permanent legislative fix. The Department of Finance said the payments are discretionary, not statutorily required, and noted the administration does not view the expenditure as sustainable in the current fiscal climate. Committee members expressed sympathy, questioned the formula, and said they would keep the issue under consideration; the committee later voted to move the two vote-only items on the agenda. The committee then received an update from the Department of General Services on state property redevelopment, including the Hillcrest DMV site in San Diego, the Fell Street DMV site in San Francisco, and other state-owned properties. DGS explained that Hillcrest is not currently an active project, while the Fell Street project shifted from an integrated DMV-housing plan to a more feasible relocation of the DMV into leased commercial space, with a budget change proposal pending. Members pressed DGS on the slow pace of redevelopment, the potential for housing on state sites, and the costs and feasibility of adaptive reuse. DGS said many state buildings are aging and that adaptive reuse depends heavily on building design, floorplate depth, light, and risk from unknown conditions behind walls. The Government Operations portion then turned to the California Education Learning Lab, which supports intersegmental higher education innovation grants. The Lab asked for permanent restoration of $4 million in ongoing funding and a move of its home agency from the Office of Land Use and Climate Innovation to GovOps, along with technical trailer bill changes. Supporters said the program has funded more than 120 projects reaching thousands of faculty and hundreds of thousands of students, including work on generative AI in higher education. The Legislative Analyst’s Office recommended rejecting the restoration and continuing the wind-down, citing the state’s projected deficit and suggesting the California Education Interagency Council could pursue non-state-funded grant opportunities instead. The committee held the item open. Finally, GovOps presented the new California Education Interagency Council staffing request, seeking four ongoing positions to support the council, with funding already included in last year’s budget. The department said the governor has appointed Debbie Cochran as executive officer and that the remaining positions are being recruited. Finance and LAO had no objections, and the committee began questions about how the council will be staffed and organized.

Transcript Highlights:

• The 88th Legislature appropriated $8.5 million in General Revenue for operating costs and purchases.
• We want to cover the unprecedented cost increases for capital equipment and increase operating expenses
• We're asking for $16 million per biennium in state support to offset Maritime Academy operations. costs
• Will it help you offset the operational cost of the ship? The cost of the ship, yes, I'm sorry.
• Yes sir, the cost of the ship, I mean the cost of the operations, or so, there's six of these state maritime

Bills: SB1 , SB 1

Committee: Senate Finance

Transcript Highlights:

• Please continue to explore ways to close the gap on material state supply and operating cost funding,
• And despite minimizing every possible expense, our operating costs have still grown 10.8%.
• Today's Medicaid rate covers only 85% of the actual cost of care.
• the number of state-operated living alternatives.
• $8 million in future capital costs to completely close it.

Bills: HB2289

Committee: House Appropriations

Keywords: appropriations, budget, fiscal matters, state spending, general fund, supplemental budget, biennial budget, substitute bill, public defense, civil legal aid, courts, judicial branch, homelessness, supportive housing, affordable housing, behavioral health, juvenile rehabilitation, youth services, child welfare, foster care

Transcript Highlights:

• for the bureau to operate.
• it's housing costs, transportation costs, or food costs.
• Costs may change.
• and transportation costs and food costs and just about every electricity cost, just about every cost
• However, support for non-tuition costs has failed to keep pace with rising costs.

Summary: The committee first heard updates from the California State University on its turnaround plans for seven campuses with enrollment declines. CSU said overall enrollment has grown for three straight years, but some campuses—especially in Northern California—continue to face structural declines tied to demographics and community college pipelines. The system described campus-specific strategies such as outreach to stopped-out and adult learners, guaranteed admissions, partnerships with community colleges and high schools, expanded high-demand programs, and cost reductions including hiring freezes, program suspensions, and shared administrative services. The LAO said the plans were reasonable but urged regular reporting so the Legislature can track results. Committee members pressed CSU for ongoing implementation updates, stronger recruiting efforts, and safeguards around AI use; CSU said it would continue regular check-ins and share best practices across campuses. The second item focused on the Bureau for Private Postsecondary Education and its request for a $10 million General Fund appropriation to repay a special fund loan used for litigation costs. DCA and BPPE said the bureau has long had a structural deficit and has already cut positions, streamlined operations, and shifted some costs to the Student Tuition Recovery Fund, but still needs fee increases through the sunset review process. The LAO opposed the General Fund backfill, arguing the bureau can cover near-term costs with its loan, that litigation costs should generally be borne by regulated entities through fees, and that using General Fund money could set a precedent. Finance supported the one-time backfill as a way to avoid larger fee increases on institutions and to isolate the litigation expense from the bureau’s ongoing structural shortfall. Members asked how the bureau would avoid repeating the problem; BPPE said it has updated policies and practices, including disability accommodation procedures and non-discrimination training. The committee then reviewed Cal Grant funding and program updates from CSAC, UC, CSU, and the community colleges. CSAC said the Governor’s budget would increase Cal Grant funding to about $3.2 billion in 2026-27, driven by enrollment growth and higher tuition at UC and CSU, and highlighted efforts to improve payment processing and financial aid data. UC and CSU emphasized that Cal Grants are central to affordability and debt reduction, while also warning that federal changes under H.R. 1 could reduce access to loans and harm graduate and part-time students. Community colleges reported rising aid applications and awards, but said students still face major affordability barriers, especially mixed-status and undocumented students, and asked for more support for aid administration and completion grants. The chair repeatedly asked for data on eligible students who are not receiving Cal Grants and for a phased-in path to implement the Cal Grant Equity Framework; Finance said full implementation would cost hundreds of millions and the state is not currently in a position to fund it. Finally, the committee began discussion of the Middle Class Scholarship Program. CSAC said the program helps low- and middle-income students cover total cost of attendance, not just tuition, and warned that cutting funding by more than half would reduce award coverage from 35% to 17.5% of cost of attendance. CSU and UC said the program is important for reducing student debt and supporting affordability, and CSU noted recent administrative changes have reduced workload and award adjustments. The hearing continued into the next agenda item after these presentations.

Transcript Highlights:

• Our motives today are to operate as a business. We're trying to run a lean operation.
• ><c> a</c> motives today are to operate as a motives today are to operate as a business<00:24:58.760>
• So each one of these steps increases costs.
• </c><00:40:33.640><c> you</c> one of these steps increases costs you one of these steps increases costs
• </c><00:44:50.680><c> is</c> thing for us because when the cost is thing for us because when the cost

Summary: The work session focused on HB 54, which would allow New Hampshire’s alternative treatment centers to operate for profit. Chair David Nagel opened by identifying the main concerns: whether members agreed with the bill conceptually, whether the proposal could be shaped to avoid a gubernatorial veto, and whether it could lead to “big cannabis” taking over. He also emphasized that the bill would not change the existing oversight structure, which remained under RSA 126-X. Representative Wendy Thomas said the governor’s objections in past sessions appeared to center on the state’s preference for a state-run model and broader policy concerns, but no one present knew the current governor’s position. Several speakers argued the bill was primarily about financing and access, not expanding the number of dispensaries. Matt Simon of Granite Leaf Cannabis said the current nonprofit structure makes it difficult to raise capital, pay down debt, and open additional access points, and that the bill would be a corporate restructuring rather than a change in day-to-day regulation. Brandon Pollock of TASCAL Wellness said medical cannabis programs in most other states are for-profit, and that New Hampshire’s nonprofit requirement has left ATCs burdened with high-interest debt and higher prices that push patients to Maine, Vermont, or the street market. He said converting to for-profit status could allow conventional financing, lower prices, and help keep patients in the regulated program. Members also discussed whether for-profit ownership would invite outside corporate control. Witnesses said the bill would not open the market to new operators, would not change advertising rules, and would include restrictions on ownership transfers for a period of time; “foreign corporation” was explained as an out-of-state entity. One speaker noted that the bill is similar to earlier versions that passed both chambers with strong support but never became law. No vote was taken during the work session; the discussion was informational and aimed at addressing concerns before the bill moved forward.

Transcript Highlights:

• The second one would establish average operating cost per passenger service per hour.
• </c><00:46:13.200><c> Um</c> operating cost per passenger trip.
• Um operating cost per passenger trip.
• </c> Operation Metro Search. Operation Metro Search.
• It will come from their operating account to cover the cost of refund payments. With that, Mr.

Bills: HF3373 , HF4449 , HF3486 , HF4180 , HF4227 , HF2505

Committee: House Transportation Finance and Policy

Transcript Highlights:

• Housing cost burden means that you're paying more than 30% of your income toward your housing costs.
• , you know, the state costs go up proportionately. ...put them in an institution, and then our costs,
• I visited 12 different operating companies, almost all the largest operating companies in the state,
• And that is the lateral lengths and the operational efficiencies that operators are gaining.
• And it's way more cost efficient.

Summary: The committee met as the Regulatory Division of the budget section and received updates on several Industrial Commission-related agencies and programs. Legislative Council first reviewed base budget materials, then the North Dakota Housing Finance Agency reported on its current appropriation and staffing, noting that its new FTEs were being filled gradually and that it remained largely funded through special and federal funds. Agency leaders described homeownership lending, loan servicing, and housing incentive fund activity, including below-market mortgage rates, down payment assistance, and a growing servicing portfolio that has increased workload but not yet required additional FTEs. Housing Finance also detailed use of the Housing Incentive Fund and homeless grant dollars. Officials said the multifamily HIF round drew more than $73 million in requests and awarded $25 million, while the single-family program supported rural development and community land trusts. Homeless grant funding was split between emergency shelter, prevention, and rapid rehousing, with performance-based scoring used to renew or reallocate awards. Members discussed housing affordability, aging households, rental assistance, and the need to coordinate housing and site-preparation messaging with Commerce. The agency asked that HIF, single-family, and homeless funding be maintained or increased in the next session. The Department of Mineral Resources then presented its budget and operations update. Staff said the agency was on track financially, had filled most of its new reclamation FTEs, and was not expecting major litigation costs beyond normal late-biennium invoices. The director reviewed agency initiatives including Project North Star IT modernization, organizational restructuring, succession planning, rulemaking, and implementation of the development incentive well tax program and critical minerals rules. He also discussed oil and gas activity, explaining that longer laterals, especially three- and four-mile wells and the first five-mile spacing case, are helping keep production relatively flat even as rig counts ease. Members asked about gas capture, hedging, break-even prices, and the effects of Iran and Venezuela on oil markets. The committee also heard about enhanced oil recovery grants and the Pipeline Authority. The EOR program’s $25 million appropriation was fully allocated to six projects, with total awards reaching about $45.1 million when other fund balances were included, subject to a possible 5% reduction if federal DOE money does not materialize. Officials said the projects are public, reimbursement-based, and will produce results over the next several years. Finally, the Pipeline Authority outlined natural gas transmission projects, including the imminent Bakken Express line and the proposed Bakken East project, which WBI was selected to advance after an Industrial Commission RFI process. The project is moving through open season, survey permission, and regulatory work, with in-service dates projected for 2029 and 2030.

Transcript Highlights:

• And even modest cost savings on individual projects can compound into substantial cost reductions over
• So cost is very much a concern in these activities.
• and cost containment is always a key selection factor.
• With a particular emphasis on cost and cost containment.
• they run to ensure that the costs are being paid attention to as well.

Committee: House Utilities and Energy

Transcript Highlights:

• The operating increase is designed to keep up with costs.
• Cost of living increases and additional costs as the agency exists currently.
• I think the additional operating adjustment and costs that we have proposed is to maintain our existing
• costs.
• associated with operations.

Bills: HF2436

Committee: House Children and Families Finance and Policy

Transcript Highlights:

• costs, support sustainable operations,<00:35:40.079><c> and</c><00:35:40.240><c> keep</c><00:35:40.400
• </c><00:38:01.520><c> cost</c> four years behind their operational cost four years behind their operational
• </c> the costs uh they're looking at costs the costs uh they're looking at costs revenue<00:44:56.480
• In their testimony, they said that warfage rates do not accurately reflect the operational cost of inner-island
• </c><01:02:41.200><c> water</c> operational cost of inner island water operational cost of inner island

Summary: The committee heard SB 2694 SD2, which would authorize the Public Utilities Commission to create automatic adjustment mechanisms for water carriers, including a water carrier inflationary cost index, and to waive certain requirements under the Hawaii Water Carrier Act. Testimony was sharply divided. The Department of Transportation, Young Brothers, and several shipping, harbor, labor, and business-related supporters argued the bill would modernize regulation, reduce the need for large catch-up rate cases, and help keep rates aligned with rising costs. Young Brothers said its current rate-setting process is expensive and delayed, and that annual adjustments with guardrails such as a 5% cap and periodic full reviews would support sustainable operations and the state’s supply chain. Some supporters also said the company’s less-than-container-load service and required inter-island routes create costs that are not fully covered by current rates. Opponents, including the Consumer Advocate, the Maui Chamber of Commerce, Hawaii Food Industry Association, restaurant and chamber groups, and other businesses, argued the bill would lead to higher costs for consumers and businesses and should not move forward. Several testified that shipping costs already significantly affect pricing and that automatic increases would worsen the cost of living. The Consumer Advocate said Young Brothers should focus on cost control and implementing its business plan rather than automatic rate increases. The Maui Chamber and others pointed to a recent PUC decision that imposed a two-year stay on rate increases and said the bill would undermine that protection. Some opponents urged the committee to defer to the PUC’s regulatory authority. The PUC explained that it regulates water carriers as public utilities under existing statute and said it had recently approved a temporary rate increase while imposing a two-year stayout period on further increases, with emergency relief still possible. PUC members said they were still examining whether they have authority to adopt the proposed WICI mechanism by rule and wanted legislative clarity. In response to questions, the PUC said it prefers the current two-year stayout as reflected in its order. Young Brothers also clarified that it serves less-than-container-load cargo, that some routes and services are cross-subsidized because they are not profitable, and that an independent observer is being put in place to monitor implementation of its updated business plan. The transcript ended with the committee still taking questions; no final vote or disposition on the bill was shown.

Transcript Highlights:

• That is $13 million per month and the counties incur this cost and absorb this cost each and every month
• per month cost per person annual cost per person so your inmates that are designated as mental health
• The cost for this expansion.
• Woods mentioned the real cost is the ongoing, reoccurring operational cost.
• Those costs far outstrip.

Committee: House Intergovernmental Affairs

Transcript Highlights:

• Some studies have estimated the savings at as much as 40% of project costs.
• Even modest cost savings on individual projects can compound into substantial cost reductions over the
• So cost is very much a concern in these activities.
• and cost containment is always a key selection factor.
• It's both faster and lower cost to upgrade an existing facility than build new.

Summary: The committee first heard AB 710, which would expand dynamic pricing and time-of-use electricity rates and require utilities to develop plans for advanced metering infrastructure so more customers can participate. The author and supporters said the bill would encourage load shifting to times when electricity is cheaper and cleaner, reduce curtailment of renewable energy, and help address affordability. PG&E and SDG&E opposed the bill as drafted, arguing the deadlines were premature, could disrupt ongoing CPUC rate proceedings and pilot programs, and might force costly changes before results are known; Golden State Power Cooperative was neutral and flagged a technical issue. After questions and discussion about timing and scope, the committee passed AB 710 on an 11-0 vote and also approved the consent calendar 15-0. The committee then held its first 2026 oversight hearing on implementation of the California Transmission Accelerator created by SB 254. GoBiz, IBank, CAISO, and the Department of Finance outlined the new program’s structure: GoBiz’s energy unit will coordinate the accelerator, IBank will evaluate and finance eligible projects, CAISO’s transmission planning and competitive solicitation process will identify projects, and the tax credit will provide an additional incentive for developers. Administration witnesses said trailer bill language and about 10 limited-term positions are being proposed to clarify roles, protect confidential information, and support the revolving fund, with roughly $26 million in administrative costs over five years. Committee members focused on coordination among agencies, supply-chain risks, regional market planning, and whether the accelerator has enough authority to move projects quickly. CAISO said its planning and competitive procurement processes already align closely with the accelerator and that no tariff changes are expected, while GoBiz and IBank said they are still developing financing strategies and learning from other states. Public commenters supported faster transmission but urged the committee to preserve the role of competitive developers, clarify ownership and risk allocation, and ensure wildfire safety and accountability. The hearing ended with no formal action beyond receiving testimony and committing to continued oversight.

Transcript Highlights:

• What you'll note is, if you go back to that top operator slide, these are the top operators, not the
• would cost.
• Within the total cost are the construction costs, which are being provided by Mortensen, NDIT costs,
• And they would be under the soft cost then, state and soft costs? That $50 million? Mr.
• And they would be under the soft cost then, state and soft costs? That $50 million? Mr.

Summary: The Budget Section Leadership Division met with a quorum and approved the March 18 minutes. The committee first heard an update from the Petroleum Council on oil and gas activity in North Dakota. Ron Ness said production is expected to remain relatively flat at just under 1.2 million barrels per day, with efficiency gains and longer laterals helping offset lower rig counts. He discussed oil and gas prices, gas taxation, flaring concerns, northward movement of drilling activity, and the importance of new infrastructure and enhanced oil recovery (EOR) pilots. Members asked about gas taxation, natural gas liquids, pipeline impacts, and the outlook for Continental and other operators. Ness said the industry is likely to remain steady rather than see a major ramp-up or decline. Matt Pearl of the State Tax Department then explained the federal “big beautiful bill” and its effect on North Dakota income tax collections. He said the law extends or makes permanent several federal provisions and creates temporary deductions for seniors, tips, overtime, and auto loan interest, with the biggest state impact coming from the standard deduction increase and business tax changes. He revised earlier estimates downward, saying the net cash impact on state collections is likely in the $30 million to $35 million range after accounting for business prepayments and one-time FY25 oilfield transaction effects. Committee members asked which provisions apply to standard versus itemized returns. OMB staff gave a detailed update on major capital projects and facility funding. Topics included Capitol grounds improvements such as 18th-floor renovations, wayfinding, seating, lighting, tree management, and restroom and lobby upgrades; security work at the governor’s residence, which has been delayed by the discovery of human remains; and space reconfiguration efforts in Bismarck-Mandan to reduce leases and create shared offices and conference rooms. They also reported on the State Facility Maintenance Fund, including roof, window, boiler, and kitchen projects at state facilities, and on the state hospital project in Jamestown, which remains on budget and on schedule for substantial completion in winter 2027 and opening in spring 2028. OMB also updated the committee on the Minot North Central State Office Building, the use of federal State Fiscal Recovery Funds, and the status of legislative intent and trust fund reports, including school aid turnback, the school construction loan program, the Foundation Aid Stabilization Fund, the Legacy Fund, and the Strategic Investment and Improvements Fund. The committee ended by discussing future agenda items, including government efficiency, cash management, Bank of North Dakota lines of credit, and the rural health transformation program, and then adjourned.

Transcript Highlights:

• By operating as boutique utilities or procuring independent power.
• Ports currently do not operate as public energy utilities.
• Ports currently do not operate as public energy utilities.
• However, Now, ports currently do not operate as public energy utilities.
• He added that the costs of setting up that infrastructure would be substantial.

Summary: The committee heard public hearings on four bills. SB 5982 would expand Clean Energy Transformation Act coverage to include port districts and certain single-customer utilities, and would revise definitions for market customers and affected market customers. Supporters, including environmental groups, Commerce, Ecology, and some port and utility representatives, said it would close loopholes and ensure large loads such as data centers and port-based generation are subject to CETA. Opponents from ports, PUDs, business groups, and industrial consumers argued the bill could sweep in existing single-customer utilities and burden smaller ports or industrial projects. No vote was taken; the chair closed the hearing after noting substantial pro, con, and other testimony. SB 6008 would create a statewide residential battery incentive and flexible demand program administered through Commerce, with higher incentives for low- and moderate-income customers and requirements tied to utility flexible demand programs. Supporters said it would improve grid resilience, lower bills, and help deploy virtual power plants and distributed storage. Utilities and some advocates supported the concept but asked for changes on funding, low-income verification, compensation, deadlines, and program design. No action was taken beyond the public hearing. SB 6050 would allow portable plug-in solar devices and one meter-mounted device per premises, while restricting utilities, landlords, and HOAs from blocking them and setting safety and certification conditions. Supporters called it a low-cost way to expand distributed solar access, especially for renters and lower-income households. Opponents, including labor, utilities, and safety-focused witnesses, raised concerns about fire risk, backfeeding, lack of existing electrical code standards, utility worker safety, and the need for interconnection review. The committee then heard SB 6056, which would direct Ecology to exempt utility service vehicles from certain clean vehicle emissions standards; Ecology said it was already pursuing a similar rule and flagged the bill’s broad definition and potential policy implications, while utility associations supported the exemption for emergency response vehicles and environmental advocates opposed the statutory approach. No votes were taken on any of the bills.