North Dakota/EZ Policies

Jump to: navigation, search

EZ Policies for North Dakota

To create a new entry use the form EZFeed Policy.
The EZ Policy Inventory is searchable by technology, policy type, and other fields with the EZ Policy Search Form.
Review process tips and editing help are here. Updates, additions and corrections are welcome!

To see federal policies go to the Federal Policies page.


Download EZ Policies for North Dakota CSV (rows 1 - 57)

Policy Place Policy Type Active Implementing Sector Summary
Air Pollution Control (North Dakota) North Dakota Siting and Permitting Yes State/Province The Department of Health is the designated agency to administer and coordinate a statewide air pollution control program, to promulgate regulations related to air pollution control, grant necessary permits to air pollution sources, and establish state ambient air quality standards. Air quality rules or standards pertaining to coal conversion facilities, petroleum refineries, or oil and gas production and processing facilities may not be more stringent than federal standards, barring favorable results of stringent cost-benefit impact analyses. Additionally, section 23-25-11 specifically addresses the regulation of odors, including those resulting from manure management methods.
Appropriation of Water (North Dakota) North Dakota Siting and Permitting Yes State/Province This section describes procedures for applications to appropriate water for beneficial uses, including irrigation, municipal, and industrial use. Once granted, water users must continue to seek permission for changes to their specific permit conditions. A permit will be issued if all of the following conditions are met: (1) The rights of a prior appropriator will not be unduly affected. (2) The proposed means of diversion or construction are adequate. (3) The proposed use of water is beneficial. (4) The proposed appropriation is in the public interest. In determining the public interest, all of the following will be considered: (a) The benefit to the applicant resulting from the proposed appropriation. (b) The effect of the economic activity resulting from the proposed appropriation. (c) The effect on fish and game resources and public recreational opportunities. (d) The effect of loss of alternate uses of water that might be made within a reasonable time if not precluded or hindered by the proposed appropriation. (e) Harm to other persons resulting from the proposed appropriation. (f) The intent and ability of the applicant to complete the appropriation.
Business Development Loan Program (North Dakota) North Dakota Loan Program Yes State/Province The Business Development Loan Program assists new and existing businesses in obtaining loans that would have a higher degree of risk than would normally be acceptable to a lending institution. Business may use the loan for a variety of purposes, including establishing or purchasing a business, financing the acquisition of real property, expanding a business, or for working capital.
Business Energy Efficiency Rebates (Offered by 5 Utilities) (North Dakota) North Dakota Utility Rebate Program Yes Utility Bright Energy Solutions offers energy efficiency cash incentive programs to residential and business customers of municipal utilities that are members of Missouri River Energy Services. In North Dakota, this includes:

Cavalier Municipal Utilities Hillsboro Municipal Utilities Lakota Municipal Light Plant Northwood Municipal Utilities Valley City Public Works

For commercial customers, rebates are available for compressed air system efficiency, heating and cooling, lighting, and VFDs and pumps. Applications are available on the program web site.
Climate Action Plan (North Dakota) North Dakota Climate Policies No State/Province The State of North Dakota does not currently have a climate action plan in place or in progress.
Coal Conversion Facility Privilege Tax Exemptions (North Dakota) North Dakota Property Tax Incentive Yes State/Province Coal Conversion Facility Privilege Tax Exemptions are granted under a variety of conditions through the North Dakota Tax Department. Privilege tax, which is in lieu of property taxes on the facility, is imposed monthly on a coal conversion facility. The land on which the plant is located remains subject to property tax. A new or repowered electrical generation facility is exempt from the state’s share of both taxes for the first five years of operation, and the county where the plant is located may exempt all or part of its share of the tax based on capacity for up to five years.
Coal Mining Reclamation (North Dakota) North Dakota Environmental Regulations Yes State/Province The Reclamation Division of the Public Service Commission is tasked with administering the regulation of surface coal mining and reclamation. Specific regulations can be found in article 69-05.2 of the ND Administrative Code.
Coal Severance Tax (North Dakota) North Dakota Fees Yes State/Province The Coal Severance Tax is imposed on all coal severed for sale or industrial purposes, except coal used for heating buildings in the state, coal used by the state or any political subdivision of the state, and coal used in agricultural processing and sugar beet refining plants in the state or adjacent states. The tax is in lieu of sales and use taxes on the coal and property tax on minerals in the earth. Coal is taxed at a flat rate of 37.5 cents per ton. An additional 2-cent per ton tax is levied for the Lignite Research Fund. A 50% reduction in the 37.5-cent tax is allowed for coal burned in a cogeneration facility designed to use renewable resources to generate 10% or more of its energy output. Counties may grant a partial or complete exemption from the counties’ 70% portion of the 37.5-cent tax for coal that is shipped out of state.
Common Pipeline Carriers (North Dakota) North Dakota Siting and Permitting Yes State/Province Any entity that owns, operates, or manages a pipeline for the purpose of transporting crude petroleum, gas, coal, or carbon dioxide within or through the state of North Dakota, or is engaged in the business of producing, purchasing, or transporting natural gas, is subject to these regulations. The regulations address resource production and pipeline operation, and permitting requirements and the right of eminent domain as they apply to pipeline carriers. The Commission may choose to enact further regulations as necessary.
Community Development Block Grant/Economic Development Infrastructure Financing (United States) United States Grant Program
Loan Program
Yes Federal Community Development Block Grant/Economic Development Infrastructure Financing (CDBG/EDIF) provides public infrastructure financing to help communities grow jobs, enable new business startups and expansions for existing businesses. State programs help achieve the national objective of CDBG by funding projects in which at least 51 percent of the new jobs created are made available to low and moderate income individuals. The maximum amounts awarded under the program are $1 million for new businesses locating to the state and $500,000 for existing businesses expanding in the state.
Control, Prevention, and Abatement of Pollution of Surface Waters (North Dakota) North Dakota Environmental Regulations Yes State/Province It is the policy of North Dakota to protect, maintain, and improve the quality of the waters in the state, and to require necessary and reasonable treatment of sewage, industrial, or other wastes. This section establishes the State Water Pollution Control Board, which may make recommendations regarding rules for the emission of polluting discharges to state waters; the Department of Health has the authority to enact these regulations. The Department of Health also administers programs pertaining to groundwater, waste water, surface water, storm water, animal feeding operations, and nonpoint sources.
Dakota CDC Intermediary Relending Program (North Dakota) North Dakota Loan Program Yes State/Province The Dakota CDC Intermediary Relending Program makes IRP loans up to $250,000 available to qualified applicants for a variety of business purposes, including financing a new or existing business, purchasing or leasing equipment, or providing working capital. Repayment terms are based on the use of the loan proceeds or the life of the assets being finances. The average term is seven years or less.
Dams, Dikes, and Other Devices: Dam Safety Program (North Dakota) North Dakota Siting and Permitting Yes State/Province These regulations govern the permitting, construction, operation, inspection, and hazard classifications of dams, dikes, and other water impoundments. The Dam Safety page of the State Water Commission website contains further information regarding dam inspections.
Dredged and Fill Material Disposal (North Dakota) North Dakota Siting and Permitting Yes State/Province This chapter provides regulations for the disposal of dredged and fill material. Any entity desiring to dispose of such material must first obtain a permit, and the State Engineer has the responsibility to specify a disposal site for each permit application. General permits may be issued on a regional basis.
Electric Companies and Electric Transmission Lines (North Dakota) North Dakota Line Extension Analysis Yes State/Province The Public Service Commission has the authority to regulate the construction, operation, and maintenance of electrical supply lines, and to issue additional rules for this purpose. Section 49-21.1 addresses limitations on other activity near high-voltage transmission lines.
Energy Policy Commission (North Dakota) North Dakota Siting and Permitting Yes State/Province Created in 2007 by the North Dakota Legislative Assembly, the EmPower North Dakota Commission designed a comprehensive energy policy for the state of North Dakota. Since 2007 the Commission has updated the policy every 18 months and made policy recommendations to the legislature.
Flex PACE Program (North Dakota) North Dakota Loan Program Yes State/Province The Flex PACE Program designed to provide interest buy down to non-PACE qualifying businesses where the community determines eligibility and accountability standards. The PACE family of programs at BND is designed to encourage specific types of economic activity within the State of North Dakota. Job creation is not a requirement of Flex PACE, but jobs will be tracked for informational purposes. The cumulative amount of PACE funds available per biennium under Flex PACE to a North Dakota community or an individual borrower will be determined by the Bank's Investment Committee. BND will provide up to $100,000 of Flex PACE funds for regular projects.
Forestry Policies (North Dakota) North Dakota Environmental Regulations Yes State/Province North Dakota forests are managed by the North Dakota State Forest Service. In 2010 the State issued its "Statewide Assessment of Forest Resources and Forest Resource Strategy", which includes discussion of forest resources for renewable energy production as well as mitigation of the impacts of climate change:

http://www.ag.ndsu.edu/ndfs/documents/ndstate-assess-strat-final-approv9-15-10.pdf/view

The State Forest Service also issued several reports related to biomass fuels. In 2003 The University of North Dakota's Energy and Environmental Research center provided a report detailing the woody biomass resources in the state, with the goal of mitigating fire risks: http://www.ag.ndsu.edu/ndfs/documents/ndwildfire.pdf/view

In 2006 the Forest Service issued a report summarizing commercial biomass technologies:

http://www.ag.ndsu.edu/ndfs/documents/biomass-buyers-guide.pdf/view
Garrison Diversion Conservancy District (North Dakota) North Dakota Siting and Permitting Yes Local The Garrison Conservancy District is a state agency established to provide for land irrigation, to establish and restore depleted lakes and stabilize stream flows, and to make waters available for irrigation, domestic, municipal, and industrial needs, and for hydroelectric power. The Board of Directors of the District have the authority to implement and promulgate regulations pertaining to water use in the district.
Geothermal Tax Credit (North Dakota) North Dakota Personal Tax Credit Yes State/Territory North Dakota offers an income tax credit to individuals, estates and trusts for the cost of acquiring and installing a geothermal energy system in a building or on property owned or leased by the taxpayer in North Dakota. For systems installed after December 31, 2008, and before January 1, 2015, the credit is equal to 3% per year for five years of the actual cost of acquisition and installation of the system. Any excess may be used as a credit carryover to each of the 10 succeeding taxable years.

If the taxpayer holds an interest in a pass-through entity (such as a partnership or S-corporation) that installs a geothermal system, the credit is passed through to the taxpayer in proportion to its interest in the entity.
Ground Water Protection (North Dakota) North Dakota Siting and Permitting Yes State/Province North Dakota has a degradation prevention program for groundwater protection, with standards established by the Department of Health. This section addresses groundwater standards, quality monitoring, notification requirements, pollution prevention criteria, and wellhead protection.
Hazardous Waste Management (North Dakota) North Dakota Siting and Permitting Yes State/Province The Department of Health is the designated agency to administer and coordinate a hazardous waste management program to provide for the reduction of hazardous waste generation, reuse, recovery, and treatment as preferable alternatives to landfill disposal; the safe and adequate management of hazardous waste; and the reduction of surface and ground water contamination. The Department regulates the management of hazardous waste and underground storage tanks; provisions for permitting and fees are located in chapter 23-20.3, while specific regulations can be found in chapter 33-24 of the ND Administrative Code.
Interstate Mining Compact Commission (multi-state) Alabama
Arkansas
Illinois
Indiana
Kentucky
Louisiana
Maryland
Missouri
New York
North Carolina
North Dakota
Ohio
Oklahoma
Pennsylvania
South Carolina
Tennessee
Texas
Virginia
West Virginia
Safety and Operational Guidelines
Siting and Permitting
Yes State/Province The Interstate Mining Compact is a multi-state governmental agency / organization that represents the natural resource and related environmental protection interests of its member states. Currently, 23 states are members to the compact, and 6 additional states are associate members. The compact is administered by the Interstate Mining Compact Commission, which does not possess regulatory powers but “provides a forum for interstate action and communication on issues of concern to the member states” and thus aids the development of effective regulatory programs and environmental protection initiatives. The Commission exercises several powers on behalf of the states, all of which are of a study, recommendatory or consultative nature. The Commission does not possess regulatory powers, as some Compacts do. The Commission provides a forum for interstate action and communication on issues of concern to the member states. It is the potential to stimulate the development and production of each state's mineral wealth through effective regulatory programs that draws many of the states together in the prosecution of the Commission's work. Given the environmental sensitivities associated with this objective, a significant portion of the Commission's work is dedicated to the environmental protection issues naturally associated with this mineral development. It is the significant value and clout that comes from "compacting" together and speaking with a strong, united voice that can make a difference in each state's efforts to implement effective regulatory programs that will conserve natural resources and secure a vibrant state (and thus national) mineral economy.
Interstate Oil and Gas Conservation Compact (Multiple States) Alabama
Alaska
Arizona
Arkansas
California
Colorado
Florida
Georgia
Idaho
Illinois
Indiana
Kansas
Kentucky
Louisiana
Maryland
Michigan
Mississippi
Montana
Nebraska
Nevada
New Mexico
New York
North Dakota
Ohio
Oklahoma
Pennsylvania
South Dakota
Texas
Utah
Virginia
West Virginia
Wyoming
Environmental Regulations Yes State/Province The Interstate Oil and Gas Compact Commission assists member states efficiently maximize oil and natural gas resources through sound regulatory practices while protecting the nation's health, safety and the environment.

The Commission serves as the collective voice of member governors on oil and gas issues and advocates states' rights to govern petroleum resources within their borders.

The Commission formed the Geological CO2 Sequestration Task Force, which examines the technical, policy and regulatory issues related to safe and effective storage of CO2 in the subsurface (depleted oil and natural gas fields, saline formations and coal beds).

The Commission also funds research on hydraulic fracking, reusing water used in extracting oil and gas, and makes recommendations on national energy policies and statutes for individual states.

The Commission also has several associate states: North Carolina, South Carolina, Georgia, Tennessee, Missouri, Idaho, Oregon and Washington. In addition, it has international affiliations with the Canadian provinces of Alberta, British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia, Saskatchewan, and the Yukon.
Large Wind Property Tax Reduction (North Dakota) North Dakota Property Tax Incentive Yes State/Territory In 2001, North Dakota established property tax reductions for commercial wind turbines constructed before 2011. Originally, the law reduced the taxable value of centrally-assessed* wind turbines with a capacity of 100 kilowatts (kW) or greater from 10% to 3% of assessed value, resulting in a property tax savings of 70%. This law has since been amended, resulting in the establishment of slightly different tax valuation procedures for some installations.

Currently, all centrally-assessed wind turbines with a capacity of 100 kW or greater that are constructed after June 30, 2006, and before January 1, 2015, are valued at 1.5% of their assessed value, as are units constructed after April 30, 2005, and before July 1, 2006, and for which a power purchase agreement (PPA) was executed after April 30, 2005, and before January 1, 2006. For the latter category, the reduced valuation applies only for the duration of the original PPA. All other centrally-assessed wind turbines with a capacity of 100 kW or greater are valued at 3% of assessed value.

North Dakota also offers a property tax exemption for some types of locally-assessed renewable energy systems.


  • While most property tax assessments in North Dakota take place at the local level, the State Board of Equalization values investor-owned utilities (IOUs) for property tax purposes. Thus, this reduction will generally apply only to IOUs engaged in the operation of commercial wind farms.
Little Missouri State Scenic River Act (North Dakota) North Dakota Siting and Permitting Yes Local This legislation aims to preserve the Little Missouri River in its present, free-flowing natural condition. The Little Missouri River Commission is established to administer and manage these regulations, and coordinate activities that impact the Little Missouri River.
MATCH Program (North Dakota) North Dakota Loan Program Yes State/Province The MATCH Program supports the funding needs of a borrower whose financial capacity is very strong. The borrower must have a long-term credit rating of BBB or better as determined by a national rating agency. The Bank of North Dakota offers an interest rate .25% to .50% over an equivalent U.S. Treasury Note. The rate can be fixed for as long as five years.
Main Street Loan Program (North Dakota) North Dakota Loan Program Yes State/Province The Main Street Loan Program loans of up to $24,999 through the Certified Development Corporation (CDC) in participation with local lenders or economic development organizations for small businesses looking to expand or to start a new business. Loans can be used for any working capital or for small equipment inventory. Only businesses located in North Dakota are eligible to benefit from the Main Street Loan Program. The financing request will be subject to both the local lenders or local economic development organizations credit review as well as Dakota CDC’s credit evaluation.
Midwest Independent System Operator (Multiple States) Montana
North Dakota
South Dakota
Minnesota
Iowa
Missouri
Wisconsin
Illinois
Michigan
Indiana
Kentucky
Manitoba
Interconnection Yes Non-Profit Midwest Independent Transmission System Operator (MISO) is a Regional Transmission Organization, which administers wholesale electricity markets in all or parts of 11 U.S. states and the Canadian province of Manitoba. MISO administers electricity transmission grids across the Midwest and into Canada, and provides tools, transmission planning strategies, and integration for utilities in those markets. MISO is working with PJM Interconnection to develop complementing system operations and one robust, non-discriminatory wholesale electricity market to meet the needs of all customers and stakeholders in 23 states, the District of Columbia and the Canadian province of Manitoba. The market is being developed through an open stakeholder process and is being designed to serve residents regardless of whether they reside in states with bundled or unbundled retail rates.
Midwest Renewable Energy Tracking System (Multiple States) Illinois
Iowa
Minnesota
Montana
North Dakota
Ohio
South Dakota
Wisconsin
Manitoba
Green Power Purchasing Yes Non-Profit The Midwest Renewable Energy Tracking System (M-RETS®) tracks renewable energy generation in participating States and Provinces and assists in verifying compliance with individual state/provincial or voluntary Renewable Portfolio Standards (RPS) and objectives. M-RETS® is a tool to keep track of all relevant information about renewable energy produced and delivered in the region. Currently, several States and Provinces participate in M-RETS®: Illinois, Iowa, Manitoba, Minnesota, Montana, North Dakota, Ohio, South Dakota, and Wisconsin have policies in place requiring or strongly encouraging utility development of renewable resources. M-RETS® uses verifiable production data for all participating generators and creates a Renewable Energy Credit (REC) in the form of a tradable digital certificate for each MWh.
Mining and Gas and Oil Production (North Dakota) North Dakota Siting and Permitting Yes State/Province This chapter of the North Dakota Code contains provisions for oil, gas, and coal mining and the development of geothermal resources. This chapter addresses claims to mines, licensing and control of resources, exploration requirements, requirements for development and production of subsurface minerals, and reclamation operations.
Nature Preserves (North Dakota) North Dakota Siting and Permitting Yes State/Province The Parks and Recreation Department is responsible for managing and acquiring designated nature areas in the state of North Dakota. New construction and development is severely restricted on these areas; a list can be found on the Department website.
Net Metering (North Dakota) North Dakota Net Metering Yes State/Territory North Dakota's net-metering policy, adopted in 1991 by the state Public Service Commission (PSC), applies to renewable-energy systems and combined heat and power (CHP) systems up to 100 kilowatts (kW) in capacity.** Net metering is available to all customers of investor-owned electric utilities; it is not available to customers of municipal utilities or electric cooperatives. There is no specified statewide limit on the aggregate capacity of all net-metered systems. If a customer has net excess generation (NEG) at the end of a monthly billing period, the utility must purchase the NEG at the utility's avoided-cost rate. Customers retain ownership of renewable-energy credits (RECs) associated with the customer's load, while RECs associated with NEG convey to the utility (with compensation to the customer-generator). However, the utility may recover metering costs associated with production monitoring from a net-metered system.

*Some utilities compensate customers at the avoided-cost rate plus a REC adder.

** The North Dakota Legislative Council's Committee on Administrative Rules has objected to the PSC's provisions for net metering, asserting that the PSC violated legislative intent by establishing net metering. However, according to the PSC, net metering is currently available to qualifying customers in North Dakota.
North Dakota Energy Conversion and Transmission Facility Siting Act (North Dakota) North Dakota Line Extension Analysis
Siting and Permitting
Yes State/Province This chapter aims to ensure that the location, construction, and operation of energy conversion facilities and transmission facilities will produce minimal adverse effects on the environment and the welfare of the citizens of the state. A certification of site compatibility or a route permit is required for the location, construction, and operation of such a facility. These regulations apply to: (1) wind energy conversion facilities with a capacity of at least 0.5 MW, (2) all other energy generation facilities with a capacity greater than 50 MW, (3) facilities manufacturing or refining at least 100 million cubic feet of gas per day, (4) facilities manufacturing or refining at least 50 thousand barrels of liquid hydrocarbon products per day, and (5) facilities related to the enrichment of uranium materials. Additionally, transmission facilities include: (1) electric transmission lines with a design exceeding 115 kV, (2) gas or liquid transmission lines designed for or capable of transporting coal, gas, liquid hydrocarbons, liquid hydrocarbon products, or carbon dioxide, and (3) liquid transmission lines and associated facilities designed for or capable of transporting water from or to an energy conversion facility. Some exemptions apply. Additionally, the construction of transmission lines transporting hydroelectric power produced outside of the United States must be approved by the legislative assembly.
Oil and Gas Gross Production Tax (North Dakota) North Dakota Fees Yes State/Province A gross production tax applies to most gas produced in North Dakota. Gas burned at the well site to power an electrical generator that consumes at least 75 percent of the gas is exempt from taxation under this chapter. This chapter describes how such taxes are calculated, addresses taxes levied on equipment used in oil and gas production, and provides general regulations pertaining to imposed taxes. Additional regulations may apply to oil and gas exploration and production in the Fort Berthold Reservation (see section 57-51.2).
Partnership in Assisting Community Expansion (PACE) Program (North Dakota) North Dakota Loan Program Yes State/Province The Partnership in Assisting Community Expansion (PACE) Program is available to finance the purchase of equipment or real estate, as well as term working capital. In conjunction with community support, the program provides an interest buy down that can reduce the borrower's rate of interest by as much as 5%. This buy down can mean an interest savings of approximately $462,000 over the term of the loan. In return, the borrower must create one new job in North Dakota for each $100,000 of total loan proceeds.
Qualifying RPS State Export Markets (North Dakota) North Dakota Renewables Portfolio Standards and Goals Yes State/Province This entry lists the states with Renewable Portfolio Standard (RPS) policies that accept generation located in North Dakota as eligible sources towards their RPS targets or goals. For specific information with regard to eligible technologies or other restrictions which may vary by state, see the RPS policy entries for the individual states, shown below in the Authority listings. Typically energy must be delivered to an in-state utility or Load Serving Entity, and often only a portion of compliance targets may be met by out-of-state generation. In addition to geographic and energy delivery requirements, ownership, registry, and other requirements may apply, such as resource eligibility, generator vintage and capacity limitations, as well as limits on Renewable Energy Certificate (REC) vintage. The listing applies to RPS Main Tiers only, and excludes solar or distributed generation that may require interconnection only within the RPS state. This assessment is based on energy delivery requirements and reasonable transmission availability. Acceptance of unbundled RECs varies. There may be additional sales opportunities in RPS states outside the Eastern Interconnection. REC prices in markets with voluntary goals (North Dakota, South Dakota) may be lower.
Radiation (North Dakota) North Dakota Environmental Regulations Yes State/Province The Department of Health is the designated agency to receive registration applications and issue certificates necessary for the production, storage, processing, and disposal of radioactive wastes. The Industrial Commission of North Dakota is tasked with monitoring and enforcing provisions related to nuclear waste disposal. These regulations discuss state licensing of ionizing radiation, disposal sites, hazardous materials, and low-level radioactive waste.
Renaissance Zones (North Dakota) North Dakota Property Tax Incentive
Corporate Tax Incentive
Enterprise Zone
Yes State/Province Renaissance Zones allow qualifying businesses and individuals to claim one or more tax incentives for purchasing, leasing, or making improvements to real property located in a North Dakota renaissance zone. The tax incentives consist of a variety of state income and financial institution tax exemptions and credits, and local property tax exemptions.
Renewable Energy Property Tax Exemption (North Dakota) North Dakota Property Tax Incentive Yes State/Territory North Dakota exempts from local property taxes any locally-assessed* solar, wind, or geothermal energy device serving a new or existing building or structure. Stand-alone systems and systems that are part of conventional systems are eligible. For solar, wind, or geothermal systems that are part of a conventional energy system, only the renewable energy portion of the total system is eligible. This exemption is applied only during the 5-year period following installation. To apply for this exemption, system owners must contact their local tax assessor or county director of tax equalization.

North Dakota also offers a property tax reduction for centrally-assessed* wind turbines larger than 100 kilowatts (kW). These systems are not eligible for the exemption described above.



* While most property tax assessments in North Dakota take place at the local level, the State Board of Equalization values investor-owned utilities (IOUs) for property tax purposes.
Renewable Energy Tax Credit (North Dakota) North Dakota Corporate Tax Credit Yes State/Territory North Dakota offers a corporate income tax credit for the cost of acquiring and installing a geothermal, solar, biomass, or wind energy system in a building or on property owned or leased by the taxpayer in North Dakota. For systems installed after December 31, 2000, and before January 1, 2015, the credit is equal to 3% per year for 5 years of the actual cost of acquisition and installation of the system.

The installation costs do not include costs of redesigning, remodeling or otherwise altering the structure of a building in which the renewable energy system is installed. If an eligible renewable energy system is a part of a system that uses other means of energy, only the portion of the total system directly attributable to the cost of the renewable energy system is included in determining the credit amount.

In general, if the amount of credit exceeds the taxpayer’s income tax liability, the excess may be carried over to each of the 5 succeeding taxable years. However, any excess tax credits earned for wind energy systems installed after September 30, 2008, and before January 1, 2012, may be carried over to each of the 20 succeeding taxable years. For geothermal, solar, or biomass systems installed after September 30, 2008, and wind energy devices installed after December 31, 2011, any excess may be used as a credit carryover to each of the 10 succeeding taxable years.

A pass-through entity that installs an eligible system in or on a property it owns or leases is considered to be the taxpayer. The amount of the credit allowed with respect to the entity's investments is determined at the pass-through entity level and must be passed through to the corporate partners, shareholders, or members proportionally.

For eligible systems installed after December 31, 2006, if system ownership is transferred at the time installation is complete and the system is fully operational, the purchaser of the device is eligible for the tax credit under this section. Subsequent purchasers of the device are not eligible for the credit.
Renewable and Recycled Energy Objective (North Dakota) North Dakota Renewables Portfolio Standard Yes State/Territory In March 2007, the North Dakota enacted legislation (H.B. 1506) establishing an objective that 10% of all retail electricity sold in the state be obtained from renewable energy and recycled energy by 2015. The objective must be measured by qualifying megawatt-hours (MWh) delivered at retail, or by credits purchased and retired to offset non-qualifying retail sales. This objective is voluntary; there is no penalty or sanction for a retail provider of electricity that fails to meet the objective. Municipal utilities and electric cooperatives that receive wholesale electricity through a municipal power agency or generation and transmission cooperative may aggregate their renewable and recycled energy objective resources to meet the objective.

Eligible resources include electricity produced by solar, wind, biomass, hydropower, geothermal, hydrogen derived from another eligible resource, and recycled energy systems that generate electricity from currently unused waste heat resulting from combustion or other processes and that do not use an additional combustion process. (The term "recycled energy system" does not include waste heat captured from any system designed primarily to generate electricity unless the generation system consumes wellhead gas that would otherwise be flared, vented or wasted.) Hydropower facilities must have an in-service date of January 1, 2007, or later, or must qualify as new hydropower generation obtained from re-powering or efficiency improvements to facilities existing on August 1, 2007.*

In order to qualify for renewable electricity and recycled energy objective credits, a generating source must meet the requirements of the North Dakota Public Service Commission's (PSC) rules for tracking, recording and verifying renewable energy certificates (RECs). RECs do not need to be acquired from an in-state facility. There are special conditions regarding RECs associated with hydropower facilities. Electricity generation applied to the renewable energy and recycled energy objective, as well as certificate purchases and certificate retirements, must be independently verified through the Midwest Renewable Energy Tracking System (M-RETS).

Before using new renewable and recycled energy after August 1, 2007, to meet the objective, each retail provider or its generation supplier was required to make an economic evaluation to determine if the use of new renewable and recycled energy would be cost-effective, considering other electricity alternatives. After evaluating the renewable and recycled energy objective and economic evaluation, the retail provider or its generation supplier may use the electricity alternative that best meets its resource or customer needs.

Beginning June 30, 2009, each retail provider must report to the PSC annually on the provider's previous calendar year's energy sales. This report must include (1) information regarding qualifying electricity delivered and renewable energy and recycled energy certificates purchased and retired as a percentage of annual retail sales and (2) a brief narrative report that describes steps taken to meet the objective over time and identifies any challenges or barriers encountered in meeting the objective. Electric cooperatives may aggregate their reporting through generation and transmission cooperatives. Municipal utilities may aggregate their reporting through a municipal power agency. The PSC may require a specific format and details for reporting. The reports are available on the PSC case search web site.


* When calculating the amount of electricity necessary to meet the objective, a utility may deduct from its baseline of total retail sales the proportion of electricity obtained from hydroelectric facilities with an in-service date before January 1, 2007.
Sales Tax Exemption for Hydrogen Generation Facilities (North Dakota) North Dakota Sales Tax Incentive Yes State/Territory In North Dakota, the sale of hydrogen used to power an internal combustion engine or a fuel cell is exempt from sales tax. In addition, any equipment used by a hydrogen generation facility for the production and storage of hydrogen is exemption from sales tax. Stationary and portable hydrogen containers or pressure vessels, piping, tubing, fittings, gaskets, controls, valves, gauges, pressure regulators, safety relief devices are included as eligible equipment. In order to receive the exemption, a request must be made in writing to the Tax Commissioner and must include a description of the equipment, the cost of the equipment, and an explanation of how the equipment enables the business to expand its operations. The Tax Commissioner will notify the taxpayer in writing if the project qualifies for an exemption. For more information, see the North Dakota Tax Incentives for Business brochure.
Sales and Use Tax Exemption for Electrical Generating Facilities (North Dakota) North Dakota Sales Tax Incentive Yes State/Territory Electrical generating facilities are exempt from sales and use taxes. The exemption is granted for the purchase of building materials, production equipment, and any other tangible personal property that is used for constructing or expanding the facility. In order to qualify, the facility must have at least one electrical generation unity with a capacity of at least 100 kilowatts (kW). For wind facilities, the equipment must be purchased between July 2011 and January 2017. For non-wind and non-coal facilities, the facility must sell the electricity it produces or use it on site for a business-related activity. In order to receive the exemption, a request must be made in writing to the Tax Commissioner and must include a description of the equipment, the cost of the equipment, and an explanation of how the equipment enables the business to expand its operations. The Tax Commissioner will notify the taxpayer in writing if the project qualifies for an exemption. For more information, see the North Dakota Tax Incentives for Business brochure.
Sales and Use Tax Exemption for Gas Processing Facilities (North Dakota) North Dakota Sales Tax Incentive Yes State/Territory In North Dakota, materials purchased for building or expending gas processing facilities are exempt from sales and use taxes. Building materials, equipment, and other tangible property are eligible for the exemption. In addition, any tangible property used to build or expand a facility that compresses, processes, or gathers gas may qualify for the exemption. Equipment purchases that exceed $100,000 that are purchased in order to reduce emissions, increase efficiency, or enhance the reliability of a gas processing facility may also qualify for the exemption. In order to receive the exemption, a request must be made in writing to the Tax Commissioner and must include a description of the equipment, the cost of the equipment, and an explanation of how the equipment enables the business to expand its operations. The Tax Commissioner will notify the taxpayer in writing if the project qualifies for an exemption. For more information, see the North Dakota Tax Incentives for Business brochure.
Soil Conservation Districts Law (North Dakota) North Dakota Siting and Permitting Yes Local This chapter aims to provide for the conservation of the soil and soil resources of this state and for the control and prevention of soil erosion, and to preserve the state's natural resources, control floods, prevent impairment of dams and reservoirs, assist in maintaining the navigability of rivers, preserve wildlife, protect the tax base, protect public lands, and protect and promote the health, safety, and general welfare of the people of this state. Local soil conservation districts, which may request the aid of the State Soil Conservation Committee, are responsible for promulgating and implementing relevant regulations.
Solar Easements (North Dakota) North Dakota Solar/Wind Access Policy Yes State/Territory North Dakota's solar easement law is similar to those established by many other U.S. states. The law allows a property owner to obtain a solar easement from another property owner for the purpose of ensuring adequate exposure of a solar-energy system to sunlight. A solar easement must include:
  • The vertical and horizontal angles, expressed in degrees, at which the solar easement extends over the real property subject to the solar easement;
  • Any terms, conditions, or both under which the solar easement is granted or will be terminated; and
  • Any provisions for compensation of the owner of the property benefiting from the solar easement in the event of interference with the enjoyment of the solar easement or compensation of the owner of the property subject to the solar easement for maintaining the solar easement.
Solar easements must be created in writing and are subject to the same conveyancing and instrument recording requirements as other easements.
Solid Waste Management and Land Protection (North Dakota) North Dakota Siting and Permitting Yes State/Province The policy of the State of North Dakota is to encourage and provide for environmentally acceptable and economical solid waste management practices, and the Department of Health may promulgate regulations related to waste management.
Venture Capital Program (North Dakota) North Dakota Equity Investment Yes State/Province The Venture Capital Program, provided by the ND Department of Commerce, is an innovative financial program that provides flexible financing through debt and equity investments for new or expanding businesses in the state of North Dakota. The New Venture Capital Program will invest up to $300,000 in varying forms of debt and equity for eligible businesses.
Water Distribution and Wastewater Systems Operators (North Dakota) North Dakota Siting and Permitting Yes State/Province All public water supply and wastewater disposal systems are subject to classification and regulation by the State of North Dakota, and must obtain certification from the State Department of Health.
Water Management Plans for Surface Coal Mining Operations (North Dakota) North Dakota Siting and Permitting Yes State/Province A water management plan is required for all surface coal mining operations. This plan must be submitted to the State Engineer of the State Water Commission at the same time a surface mining permit is submitted to the Public Service Commission. These regulations discuss permit requirements, water management plan contents, water diversions, sediment control, groundwater protection, and impoundments.
Water Resource Districts (North Dakota) North Dakota Siting and Permitting Yes Local Water Resource Districts are created throughout the state of North Dakota to manage, conserve, protect, develop, and control water resources. Each District will be governed by a Water Resource Board, which will manage water uses and water management facilities (including dams) in the district, and set local regulations regarding water use, flooding, and pollution.
Waters: General Provisions (North Dakota) North Dakota Siting and Permitting Yes State/Province The waters of North Dakota are understood as belonging to the public and may be appropriated for beneficial uses. However, the right to use water in large quantities must be acquired. Entities requiring water for beneficial uses may exercise the right of eminent domain in certain circumstances. The State Water Commission is established to oversee the conservation, management, development, and control of waters and atmospheric resources in North Dakota, and to establish comprehensive state water development programs.
Wetlands (North Dakota) North Dakota Siting and Permitting Yes State/Province This legislation enacts a requirement to obtain a permit from the State Engineer, to be approved by the local Water Resource Board, prior to draining surface or subsurface waters.
Wind Easements (North Dakota) North Dakota Solar/Wind Access Policy Yes State/Territory North Dakota allows property owners to grant an easement that ensures adequate exposure of a wind-energy system to the wind. The easement runs with the land benefited and burdened, and terminates upon the conditions stated in the easement. The statutes authorizing the creation of wind easements include several provisions to protect property owners. For example, a wind easement may not make the property owner liable for any property tax associated with the wind-energy system or other equipment related to wind-energy generation. In addition, the owner of the wind-energy system must carry general liability insurance for damage or injury arising from the construction or operation of the wind-energy facility project site.
Workforce 20/20 (North Dakota) North Dakota Workforce development Yes State/Province Workforce 20/20 a state funded program that assists employers who provide retraining and upgrade training to support the introduction of new technologies and work methods into the workplace. The funding is provided for current workers and new employees. Training funded under Workforce 20/20 is limited to North Dakota residents who are or will be employed in the state. The program is a funding source to assist in reducing the cost of training for the employer. Businesses and industries that bring new revenue to the state by selling a majority of products and services outside of North Dakota will be given priority for funding.
Yellowstone River Compact (North Dakota) North Dakota Siting and Permitting Yes State/Province The Yellowstone River Compact, agreed to by the States of Montana, North Dakota, and Wyoming, provides for an equitable division and apportionment of the waters of the Yellowstone River, as well as for the conservation, development, and beneficial use of water in the Yellowstone River Basin. This chapter provides more specific information on regulations governing the basin.