Transcript Highlights:

• of the regions of Judea and Samaria and formally reject the term West Bank as a modern political construct
• of the regions of Judea and Samaria and formally reject the term West Bank as a modern political construct
• livery's owners who rent out vessels to maintain livery's owners who rent out vessels to maintain commercial
• and operation of data centers data center facilities and small modular new construction and operation
• and operation of a thermal or non-thermal electric generating unit, for the construction and operation

Summary: The committee worked through a long Minority Caucus calendar covering a wide range of bills, with many items on consent and several pulled for discussion. Early items included resolutions on Judea and Samaria, bullion depository bills, a produce incentive appropriation, a biennial budget proposal, and a veterans services appropriation. Members also heard transportation-related bills on driver permits, citations, boat insurance, English proficiency for commercial drivers and motor carriers, photo enforcement, and a measure restricting incarceration for unpaid fines and fees. Several members raised concerns about constitutional issues, public safety, or whether bills were duplicative or targeted at specific groups. A large portion of the meeting focused on education and school governance bills. These included proposals on school district bond advisors, restrictions on school property leases and purchases, public meeting requirements, term limits and training for school board members, patriotic youth group access to students, computer science proficiency, and a bill requiring fingerprint clearance cards for traffic school instructors. Members repeatedly criticized what they described as inconsistent treatment of public schools versus ESA/private school programs, and several education bills were pulled from consent for further discussion. Other bills addressed child safety and family law, including DCS credit freezes, recorded child interviews, parents’ rights notices, mandatory reporting of threats by minors, sex offender residency and GPS monitoring, and a bill on guardianship rights during DCS investigations. The committee also considered a number of social services, health, and labor/consumer bills. These included SNAP work requirement and verification measures, a SNAP error-rate audit, dementia care telemonitoring funding, a Braille transcription appropriation, court fee limits, a physician assistant compact, pediatric licensure compact, and a kratom regulation bill. Members debated an earned wage access licensing bill at length, with opponents calling it predatory and akin to payday lending, while supporters argued it provided a regulated consumer option. Other measures covered cash acceptance by businesses, 529-to-Roth IRA rollovers, AI rules for state agencies, and a bill on public nuisance actions by the Attorney General. Several of these drew warnings about constitutional problems, preemption, or burdens on vulnerable populations. Energy, water, and tax policy also featured prominently. The committee heard bills on fuel formulations, gas tax relief, data centers and small modular nuclear reactors, utility reporting, and a Commerce Authority mandate to reduce fuel prices. Members criticized some proposals as favoring industry, preempting local control, or lacking a clear funding plan. The meeting ended after additional items on veterans, sample ballot mailing dates, and other miscellaneous measures, with multiple bills noted as pulled from consent or subject to later votes; no final roll-call results were detailed in the transcript excerpt.

Transcript Highlights:

• Moving on to the next table, which is our ongoing federally funded construction projects.
• This is the district's construction... ...construction program.
• This will be the first roadway project to be constructed to the recommended enhanced tooling typical
• On page four is our completed construction projects, and as I stated, these are all federally funded.
• At that time, in 2022, they recommended 77.5 miles of reconstruction and 57.5 miles of construction.

Transcript Highlights:

• site, allowing for higher efficiency, faster delivery, and lower construction costs.
• There is a lot of interest in using innovative construction methods like factory-built housing to build
• Jeremy Smith here on behalf of the State Building and Construction Trades Council of California.
• There was a minimum wage standard for construction workers, and we needed to get that out.
• Because at the point of just awarding a construction contract, that's essentially been decided.

Summary: The Senate Committee on Local Government heard several bills focused on housing, utility billing, permitting, oversight, disaster recovery, and traffic safety. AB 2058, by Assemblymember Harropetian, would streamline inspections and fees for factory-built housing by reducing duplicative local review and allowing third-party inspections; supporters said it would cut costs and delays, while the author noted local land-use authority would remain intact. AB 1945, by Assemblymember Hodgwick, would let Lassen Municipal Utility District offer voluntary prepaid electricity accounts without deposits or start-service fees, with consumer protections and electronic notices; municipal utility and power agency representatives supported it. AB 2418, by Assemblymember Mark Gonzalez, would set timelines for commercial plan review and allow third-party plan checkers for delayed tenant improvement projects; business and property groups supported it, and the bill was narrowed by amendments. AB 2433, by Assemblymember Alvarez, would expand density bonus incentives for for-sale affordable housing; supporters said it could help produce more homeownership opportunities, while labor and local government concerns led to amendments removing ministerial/by-right provisions. AB 2760, by Assemblymember Sharpe Collins, would allow counties with an Office of Inspector General to extend oversight to probation and animal control in San Diego County; the author and county supervisors supported it, but probation officials opposed it as duplicative. AB 2385, by Assemblymember Petrie-Norris, would clarify local authority to plan for disaster recovery and create local reconstruction agencies; cities and other supporters said it would improve post-disaster rebuilding. AB 1976, by Assemblymember Hitt, would limit late-stage public process for pedestrian, bicycle, and traffic calming projects and exempt pedestrian malls from CEQA; supporters framed it as a safety streamlining measure, while local government groups raised concerns about reduced community engagement. The committee also adopted the consent calendar for AB 2118 and AB 2728. Final votes were taken after quorum was established: AB 1945 passed 6-0 to the Senate floor; AB 1976 passed 5-1 to the Committee on Transportation; AB 2058 passed 7-0 to Appropriations; AB 2385 passed 6-1 to Emergency Management; AB 2418 passed 7-0 to Judiciary; AB 2433 passed 7-0 to Housing; AB 2760 passed 5-2 to the Senate floor; and the consent calendar was adopted 7-0.

Transcript Highlights:

• Cleanup sites range in size and complexity, from small roadside spills to commercial gas stations, dry
• On top of working with the commercial underground storage tanks, we also provide a heating oil insurance
• The commercial real estate market remains, I don't know... ...the state, particularly market-rate and
• The commercial real estate market remains devastated by the effects of COVID and work-from-home policies
• Up to 2019, the commercial insurance market was considered a soft market for about 15 years.

Summary: The committee first heard updates on the Model Toxics Control Act (MTCA) and related funding. Department of Ecology staff explained how MTCA and the hazardous substance tax support cleanup, prevention, stormwater, and local assistance programs, but said forecasted revenues have declined while appropriations and transfers have outpaced incoming funds. Ecology said the operating account will require underspending to stay balanced this biennium and that the problem is ongoing, with further reductions possible if forecasts worsen. Ecology also reviewed the state cleanup program, noting there are more than 14,500 cleanup sites in Washington and that new sites continue to be discovered faster than they are cleaned up. A question from Representative Lee raised the long-term issue of declining fossil-fuel-based revenue, and Ecology agreed that this is a future structural concern even though the current shortfall is driven more by forecasts and transfers than by fuel-use decline. The Pollution Liability Insurance Agency described its underground storage tank and heating oil programs, saying it has modernized from a reinsurance model to a financial assurance model with stronger state oversight and cleanup milestones. Russ Olson said the agency’s dedicated petroleum tax account is in strong financial condition, but emphasized the importance of preserving that funding source. He also discussed the loan and grant program for historic commercial releases and a new heating oil loan/grant program, while noting the agency is working on equity concerns where liens can be disproportionate to property values in smaller communities. Practitioners and advocates then offered differing views on MTCA’s performance: one attorney urged a collaborative review process to make cleanups faster, less expensive, and more certain, while another consultant argued the program is too conservative and process-heavy and should focus more narrowly on actual exposure and realistic cleanup standards. Environmental and community groups countered that MTCA is essential for cleanup, pollution prevention, stormwater control, and public participation, and that it is especially important for environmental justice communities such as the Duwamish Valley. Port and city representatives stressed that MTCA grants and cleanup funding are critical for large redevelopment projects, but said long timelines, permitting delays, and funding uncertainty can slow projects and jeopardize commitments. The committee then shifted to utility wildfire risk. Staff summarized recent legislation, including requirements for utility wildfire mitigation plans, creation of a wildfire mitigation standards work group, authorization for captive insurance by local governments and PUDs, securitization authority for disaster costs, and the existing wildfire response and resilience account. Chelan County PUD and Puget Sound Energy described extensive mitigation efforts such as vegetation management, grid hardening, undergrounding, AI smoke cameras, weather stations, enhanced operating settings, public safety power shutoffs, and community outreach. Both said wildfire risk is rising and insurance costs are increasing, and Chelan PUD asked the Legislature to restore funding to the wildfire response and resilience account. The Office of the Insurance Commissioner said a 2022 utility liability market study found insurance availability is tightening as perceived risk rises, and reported that a 2025 work group recommended restoring community resilience funding, requiring insurers to share wildfire risk scores and mitigation steps with property owners, and creating a grant program based on insurance industry wildfire standards. A PNNL scientist added that wildfire probability is increasing in parts of Washington and that mitigation requires long-term, landscape-scale coordination. The final speaker began describing California’s approach to wildfire risk, but the transcript cuts off before that presentation concluded.

Transcript Highlights:

• We may not do that, but between the American construction of the Panama Canal, the French effort to build
• The construction cost more than 35,000 lives.
• It's not only the construction of the bridge, but it's the removal of a bridge.
• A few decades back, we were the dominant country in commercial shipbuilding.
• We're here because of commercial reasons. Yeah, but this isn't a military question.

Committee: Senate Commerce, Science, and Transportation Committee

Transcript Highlights:

• You have your construction costs, your soft costs, your entitlement costs, your land use costs.
• You have your construction costs, your soft costs, your entitlement costs, your land use costs.
• Commercial solicitation, line 1008, it's pretty aggressive language.
• I guess I'm curious; it doesn't seem like the definition of commercial solicitation would...
• Commercial solicitation at your door is not going to be allowed under this bill.

Summary: The committee took up a long agenda of land use, public records, infrastructure, and local-government bills. The most debated measures were CS for CS for HB 399 and CS for HB 979, both sponsored by Rep. Borrero, which sought to streamline development approvals and reduce local-government barriers. HB 399 would require simple-majority approval for certain land development applications, mandate local definitions of compatibility, and add provisions affecting destination resorts, manufactured housing, historic properties, and a study of urban development boundaries. HB 979 would allow administrative rezoning of environmentally damaged five-acre-or-larger parcels in Palm Beach, Broward, and Miami-Dade counties for residential use if adjacent to neighborhoods. Supporters argued both bills would increase housing supply, encourage cleanup of contaminated land, and lower costs; opponents argued they preempt local decision-making, weaken voter-approved growth controls, and do not guarantee affordability. Both bills were amended and then reported favorably, with HB 399 passing 16-10 and HB 979 passing after debate. The committee also approved CS for HB 437, a public records bill by Rep. Andrade, on a 25-0 vote. The bill requires agencies to respond to public records requests within three days by producing the records, citing why they cannot, or giving a good-faith estimate of time and cost; it also limits agencies from later relying on exemptions not previously raised. Proponents said the measure addresses long delays and nonresponses by agencies, while school district representatives warned the timeline could be difficult for large, complex requests. The committee adopted the bill and sent it favorably. Several local and special district bills were also approved. CS for CS for HB 1103 would help local governments coordinate with FWC on derelict vessels and anchoring issues and passed unanimously. CS for HB 1245, dealing with biosolids regulation, also passed unanimously. CS for HB 4081 to expand the East Point Water and Sewer District passed 25-0. CS for HB 4103, creating a state special district for the Apalachicola water and sewer system, passed 25-1 after testimony from city officials who argued the city had improved its water system and should retain a role. CS for HB 4105, expanding the Port St. Joe Port Authority into a multi-county regional board, passed 23-3 despite opposition from residents concerned about infrastructure, environmental impacts, and local control. The committee also began consideration of PCS for CS for HB 433, an agriculture-related bill with changes to surplus lands and other provisions, but the transcript cuts off before final action on that measure.

Transcript Highlights:

• On construction disruption assistance by your own Senator Smith Center.
• Construction been happening. How much of a downturn have they seen?
• They may miss the turn because of the because of the construction.
• Kuntz of public works construction and state.
• If it were a municipal public works, construction or state construction works project in theory, they

Keywords: 999, senate, all

Transcript Highlights:

• Forcing a community pharmacy to distribute multi-page commercial package inserts just to communicate
• We represent 1,800 commercial interior designers in California.
• I am a certified interior designer with the commercial designation and I have my own firm and I pull
• With the commercial designation, and I have my own firm, and I pull permits.
• being done it's just a like for like chains this is There's absolutely no construction being done.

Committee: Senate Business, Professions and Economic Development

Keywords: 987, senate, all

Transcript Highlights:

• If a policy is on a commercial property, the rates are even higher, and business owners are forced to
• Two, construction costs.
• IBHS fortified standards are recognized as the gold standard for constructing durable residential commercial
• Um, Texas law allows, uh, group insurance of commercial lines for large business risk.
• So I'm trying to incentivize you that you can step up to a higher standard of construction by embracing

Committee: House Insurance

Transcript Highlights:

• So it's not a very small area that is largely more commercial-industrial than it is residential.
• So if you had a lot of new construction taking place in the prior year, or a lot of appreciation and
• Commercial real estate is the same way.
• It's residential and commercial revenue. Okay.
• It's residential and commercial revenue. Okay.

Summary: The Select Committee on Property Taxes met for a listening session focused on a presentation by Amy Baker of the Joint Legislative Office of Economic and Demographic Research on local government revenues and expenditures. Baker reviewed statewide financial data for counties, municipalities, and independent special districts, using 2018-19 as a baseline year because it was stable and pre-COVID. She explained that counties rely heavily on taxes, with ad valorem taxes making up about 73% of county tax revenue and about 24% of total county revenues statewide, while municipalities rely more on charges for services and have a lower statewide ad valorem share of about 14.7%. She also noted wide variation across local governments, with some counties and cities highly dependent on property taxes and others using them minimally or not at all. Special districts were shown to be very different from counties and cities, with hospital-related revenues and expenditures dominating many of them, while water management districts were more reliant on ad valorem taxes and focused expenditures on the physical environment. Baker also summarized expenditure patterns: counties spent the largest share on public safety, while municipalities spent the largest share on general government services, followed by physical environment and public safety. She emphasized that local government structures vary widely and that the committee should study what characteristics are associated with greater property tax reliance. She said the next research steps would be to extend the analysis through later years, including the COVID and inflation period, and to examine institutional and legal factors that shape local fiscal structures. Members asked about unfunded mandates, fuel taxes, reserves, school taxes, millage rates, and how property taxes relate to specific services such as police and fire. Baker said the current analysis did not yet account for mandates or school taxes and that further work could examine links between revenues and expenditures, commercial versus residential tax burdens, and other factors. After the presentation, members reported back on local meetings with counties and municipalities. Several described large differences in millage rates, revenue mixes, and the impact of any property tax changes on fiscally constrained counties versus larger, wealthier ones. Concerns were raised about how local governments would replace lost revenue, especially for public safety and emergency response, and members discussed the need to consider both revenue replacement and ways to rein in spending. The co-chairs said the committee would continue gathering information, send members follow-up homework and requests for panel suggestions, and invite additional input from constituents, stakeholders, and local governments. The meeting ended with no votes or formal actions beyond adjournment.

Transcript Highlights:

• Commercialization. Commercialization. Oh yeah, absolutely.
• Speaking about commercialization...
• Talk about that and commercialization. Yeah.
• Liquefied natural gas construction, there's like 17 to 20 billion worth of construction going on in that
• It's the second busiest non-commercial airport in Texas.

Bills: SB1 , SB 1

Committee: Senate Finance

Keywords: appropriations, budget, state funding, education, healthcare, infrastructure, campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, 1185, senate, all

Transcript Highlights:

• Department of Fish and Wildlife, is responsible for providing fish and wildlife recreational and commercial
• construction industry has become suicide.
• construction industry has become suicide.
• They are an economic lifeline, employing thousands of construction workers.
• hundreds of jobs after construction.

Summary: The committee heard House Bill 2343, which would require the Department of Fish and Wildlife to obtain CAFO or individual discharge permit coverage for its game farms, and to treat game farms with at least 5,000 birds as large CAFOs. The prime sponsor and local officials from Centralia said the WDFW pheasant farm has contributed to nitrate contamination in a critical aquifer, affecting drinking water and public health, and argued the state should be held to the same standards as private operators. WDFW testified that it has already voluntarily secured the permit the bill would require and is working with Ecology and local partners. Testimony from county health and residents largely supported the bill, citing elevated nitrate levels and health risks, especially for infants and pregnant people. The committee then heard House Bill 2301, which expands Washington’s paint stewardship program to cover additional paint-related products, aerosol paints, and certain non-industrial coatings. The sponsor and industry supporters said the existing paint recycling program is working well and should be broadened to keep more materials out of landfills and reduce local hazardous waste costs. Local government witnesses supported the expansion but asked for changes on convenience standards, packaging coverage, and reimbursement for local collection costs. Ecology supported the overall concept but raised implementation concerns, including the need for uniform standards, full reporting, and more time for rulemaking. A wood preservatives industry representative opposed including wood preservatives, saying they are not paint and have different handling requirements. The committee also took testimony on House Bill 2515, a proposed substitute addressing emerging large energy use facilities, defined mainly as large data centers and virtual currency mining facilities. The bill would require utilities to adopt tariffs or policies to protect other ratepayers, require long-term contracts, demand response or curtailment provisions, reporting on energy and water use, and new clean energy targets for these facilities, while also changing how no-cost allowances under the Climate Commitment Act are allocated and creating an annual fee for the facilities. Supporters, including environmental groups, community action agencies, some utilities, and labor and tribal representatives, said the bill would protect ratepayers, improve transparency, and keep Washington on track for climate goals. Opponents, including data center and business groups, some ports, and several labor organizations, argued the bill is too prescriptive, could raise costs or discourage investment, may affect existing contracts and other large industrial loads, and could reduce construction jobs. No votes or final actions were taken in the transcript.

Transcript Highlights:

• Not in commercial use that I'm aware of. Okay. And to that, I think Utah is working on it.
• There are no current commercial applications that are sort of at various stages of development at this
• Yeah, Madam Chair, Representative Mathis, both commercial applications.
• There are no, there are current, there are commercial applications that are sort of at various stages
• projects from recommending a priority for a transportation construction project based on the amount

Committee: House House Natural Resources, Energy & Water Committee of Reference

Summary: The committee took up several energy, transportation, and land-use bills. HB 2428, dealing with county and ADEQ authority to issue voluntary permits certifying emission reduction credits for mobile and non-road sources, received neutral testimony from ADEQ and support from Maricopa County; the committee adopted the Griffin amendment and passed the bill 10-0 with a due pass recommendation. HB 2145, which expands who may request certain gasoline fuel reformulation actions and is contingent on EPA approval, also passed on a 5-4 vote after brief staff explanation and no amendment. The committee then considered HB 2331, a strike-everything amendment requiring electric utilities to ensure 85% of generating capacity serving retail load comes from “reliable resources” by 2030. Supporters, including the sponsor and Arizona Free Enterprise Club, argued it would protect affordability and grid reliability by favoring dispatchable power; opponents, including the Sierra Club and Rural Arizona Action, said it would effectively favor fossil fuels, raise costs, and limit cleaner resources. The committee adopted the amendment and passed the bill 6-4. HB 2795, which would bar counties from using zoning to block small modular reactors once federal permitting conditions are met, drew strong support from the sponsor and industry advocates who framed it as pro-property-rights and pro-nuclear, and opposition from county, city, and environmental groups who raised preemption, local control, safety, waste, and siting concerns; it passed 6-4. The committee also passed HB 2340, which allows the Power Plant and Transmission Line Siting Committee to evaluate proposed generating facilities along with transmission lines, on a 5-4 vote. HB 2400, an emergency measure to suspend the motor vehicle fuel tax in Areas A and C during part of the year and replace the lost revenue through state highway funding, drew opposition from cities and counties over transportation funding impacts but support from the sponsor and some members focused on gas affordability; the Griffin amendment was adopted and the bill passed 6-4. Finally, HB 2401 was introduced as a requirement for ADEQ to conduct a biennial review of available fuel formulations and their air-quality impacts in Areas A and C, but the transcript ends before testimony or action on that bill is completed.

Transcript Highlights:

• This bill does not increase the number of units that can be constructed on an SB 9 lot split or reduce
• In fact, lot splits constructed under AB 2005's new pathway will create additional owner-occupied units
• where an existing homeowner may partner with a small home builder to manage the lot split and construction
• And this bill is really focused on high-rise construction up to 150 and even 450 feet.
• So this is a much higher level of construction in terms of what we're offering.

Committee: House Housing and Community Development

Keywords: 988, house, all

Transcript Highlights:

• of the regions of Judea and Samaria and formally reject the term West Bank as a modern political construct
• of the regions of Judea and Samaria and formally reject the term West Bank as a modern political construct
• livery's owners who rent out vessels to maintain livery's owners who rent out vessels to maintain commercial
• for class A, B, or C, take an additional English proficiency examination for a class A, B, or C, commercial
• and operation of a thermal or non-thermal electric generating unit, for the construction and operation

Keywords: 1182, all

Summary: The committee worked through a very long minority caucus calendar covering a wide range of bills, with many items being described and then either left on consent, pulled from consent, or noted for votes. Topics included bullion and state depository proposals, a produce incentive appropriation, a biennial budget change, veterans services funding, driver licensing and traffic enforcement measures, procurement and public records changes, school board and school facilities rules, SNAP work requirements and verification, child welfare and juvenile justice provisions, housing and homelessness measures, energy and fuel policy, election administration, and several tax, commerce, and licensing bills. Members repeatedly raised concerns about constitutionality, federal preemption, duplication of existing law, and whether some measures were policy priorities that had been vetoed in prior sessions and were returning unchanged. Several bills drew extended debate. Members objected to English-proficiency requirements for commercial drivers and motor carriers, arguing federal law and the supremacy clause would bar them. Earned wage access regulation prompted strong opposition over consumer harm, overdraft cycles, and high effective APRs. School-related bills were criticized for overregulating public schools while not imposing similar requirements on ESA/private-school programs, especially on fingerprint clearance and reporting. SNAP-related bills were also opposed as setting unrealistic mandates and repeating vetoed proposals. Other contested measures included a drag-show criminalization bill, a bill restricting photo enforcement, a bill limiting local regulation of unmanned aircraft, and a bill conforming Arizona tax law to federal changes, which members said would benefit wealthy taxpayers and corporations without a clear funding source. The committee also heard a number of supportive or less controversial measures, including bills on veterans awareness, dementia care telemonitoring, Braille transcription funding, CPA licensure pathways, cash acceptance by retailers, and some child safety and court administration changes. Several bills were pulled from consent for further discussion, while others were noted as having unanimous or near-unanimous votes. The meeting ended with caucus announcements, including an affordability award presentation, an upcoming Latino Caucus discussion on community land trusts, and an invitation to African American Legislative Day activities, followed by adjournment.

Transcript Highlights:

• , residential construction, commercial construction.
• , residential construction, commercial construction.
• My approach is basically more of a commercial approach of actually hedging the future production that
• So it's Because it's still under construction, the actual project.
• It's that multi-billion-dollar construction with thousands of construction jobs, hundreds or more of

Committee: House House Energy, Environment & Natural Resources

Keywords: 996, all

Transcript Highlights:

• And then, our commercial real estate, which we've delved into some commercial real estate areas, those
• Our commercial real estate division didn't really have a dedicated commercial real estate attorney, so
• We transition this to a commercial use, or do we leave it to zag?
• I mean, I think in theory, yes. handled the commercial.
• This is prior to anything with the Construction Industries Board.

Committee: House A&B Education Subcommittee

Keywords: 914, all

Transcript Highlights:

• Audits on construction projects of a public work are subject to the Texas Prompt Pay Act, and audits
• I am a construction lawyer who practices in this area, and I'm here really for any questions you have
• I don't think the commercial vehicle amount changes based on the passenger, does it? It does.
• ...commercial purposes.
• We serve today's commercial and tomorrow's residential markets.

Bills: HB111

Committee: Senate Business & Commerce

Keywords: 1185, senate, all

Transcript Highlights:

• So the $120,000 comes in as a construction line of credit.
• It's closed with the bank that is providing the construction funding.
• The bank then and us will provide reimbursement for draws as the projects are constructed.
• So we are not taking total losses on these new constructions, and they are selling these homes.
• Is it commercially and is it sustainable? But that's for everybody to decipher.

Keywords: 908, all

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:

• So the $120,000 comes in as a construction line of credit.
• It's closed with the bank, who is providing the construction funding.
• The bank then and us will provide reimbursement for draws as the projects are constructed.
• So we are not taking total losses on these new constructions, and they are selling these homes.
• And so we try our best to just be helpful to the bank so that they will provide that construction loan

Summary: The committee met as the Regulatory Division budget section and first reviewed the North Dakota Housing Finance Agency’s budget and program update. Legislative Council outlined the agency’s base budget and historical funding, and Housing Finance staff reported on homeownership lending, housing incentive fund (HIF) awards, and homeless grant spending. Agency officials said the five new FTEs approved last session are mostly filled, with one homeless program manager still open. They described strong demand for HIF, noting that September 2025 multifamily requests exceeded $73 million while only $25 million was available, and that single-family and homeless programs are also heavily subscribed. Members discussed the agency’s local loan servicing workload, interest-rate benefits, down payment assistance, and the need to coordinate housing discussions with Commerce and site-preparation efforts. The agency asked that HIF, single-family, and homeless funding be maintained or increased, and committee members emphasized accountability and statewide access for homeless prevention and rapid rehousing funds. The Department of Mineral Resources then presented its budget and agency initiatives. Staff reported that the department is on track financially, that most of the five new reclamation-related FTEs are hired, and that litigation costs tied to oil and gas matters are expected to continue appearing late in the biennium. The director reviewed ongoing modernization and organizational efforts, including the North Star IT project, succession planning, training, and rulemaking for oil and gas and critical minerals. Members asked about longer laterals, spacing, and production trends; the department said operators are increasingly drilling three-, four-, and even an initial five-mile lateral, which is helping keep North Dakota oil production relatively flat even as rig counts ease. The director also discussed oil price volatility tied to Middle East conflict, hedging practices among producers, gas capture remaining around 95%, and the likelihood that current production levels will stay near flat unless prices or geopolitical conditions change significantly. An update on the enhanced oil recovery grant program followed. The Industrial Commission’s grant administrator said the full $25 million appropriation was allocated in the fall to six projects, and because the oil and gas research fund also had carryover and biennial tax revenue, total awards reached about $45.1 million. The projects are expected to run two to four years, with meaningful results not likely until mid-2026 or later. Members questioned whether the public would have access to the research findings and how accountability would be maintained; staff said the grants are reimbursement-based, require regular status reports, and will culminate in public final reports. The committee also heard from the North Dakota Pipeline Authority, which updated members on natural gas transmission projects, especially WBI Energy’s proposed Bakken East pipeline. The authority said the project has advanced through a nonbinding and then binding open season, with WBI now securing survey permissions and moving through regulatory and landowner processes, while other related gas transmission projects near Minot and Epping are also in development.