54-17.5 Lignite Research, Development and Marketing - North Dakota Statutes

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CHAPTER 54-17.5LIGNITE RESEARCH, DEVELOPMENT AND MARKETING54-17.5-01. Declaration of findings and public purpose. The legislative assemblyfinds and declares that North Dakota's lignite industry produces approximately thirty million tons
of lignite annually, contributing to our state's and nation's energy independence by generating
electricity for more than two million people in the northern great plains region and by producing
synthetic natural gas from coal that heats three hundred thousand homes and businesses in
eastern states, which is equivalent to over twenty thousand barrels of oil per day. The legislative
assembly further finds and declares that North Dakota's lignite industry generates over
twenty-eight thousand direct and indirect jobs for North Dakota, nearly three billion dollars in
annual business volume, and over one hundred three million dollars in annual tax revenue. The
legislative assembly further finds and declares that it is an essential governmental function and
public purpose to assist with the development and wise use of North Dakota's vast lignite
resources by supporting a lignite research, development, and marketing program that promotes
economic, efficient, and clean uses of lignite and products derived from lignite in order to
maintain and enhance development of North Dakota lignite and its products; support educational
activities relating to the lignite industry; preserve and create jobs involved in the production and
utilization of North Dakota lignite; ensure economic stability, growth, and opportunity in the lignite
industry; and maintain a stable and competitive tax base for our state's lignite industry for the
general welfare of North Dakota.The legislative assembly further finds and declares thatdevelopment of North Dakota's lignite resources must be conducted in an environmentally sound
manner that protects our state's air, water, and soil resources as specified by applicable federal
and state law.54-17.5-02.Lignite research council - Compensation.The industrial commissionshall consult with the lignite research council established by executive order in matters of policy
affecting the administration of the lignite research fund.54-17.5-03. Priority projects, processes, and activities. In evaluating applications forfunding from the lignite research fund for North Dakota's lignite research, development, and
marketing program, the industrial commission and lignite research council shall give priority to
those projects, processes, or activities that will preserve existing jobs and production, which will
create the greatest number of new jobs and most additional lignite production and economic
growth potential in coal-producing counties or those counties with recoverable coal reserves,
which will attract matching private industry investment equal to at least fifty percent or more of
the total cost, and which will result in development and demonstration of a marketable lignite
product or products with a high level of probability of near term commercialization. For marketing
applications, priority must be given to those projects, processes, or activities that develop
baseline information, implement specific marketing strategies, and otherwise contribute to the
effective marketing of lignite and its products. For reclamation applications, priority must be
given to those projects, processes, or activities that will reduce unnecessary regulatory costs and
assist in effectively reclaiming surface mined land to its original or better productivity as soon as
possible. Any projects, activities, or processes selected by the commission for funding must
achieve the priorities and purposes of the program, must have undergone technical review and
be determined to have technical merit, must have generated matching private industry
investment, and must have received a favorable lignite research council recommendation.54-17.5-04.Industrial commission powers.The industrial commission is herebygranted all powers necessary or appropriate to carry out and effectuate the purposes of this
chapter, including the power:1.To make grants or loans, and to provide other forms of financial assistance as
necessary or appropriate, to qualified persons for research, development, and
marketing projects, processes, or activities directly related to lignite and products
derived from lignite.Page No. 12.To make and execute contracts and all other instruments necessary or convenient
for the performance of its powers and functions under this chapter, including the
authority to contract for the administration of the lignite research, development, and
marketing program.3.To issue evidences of indebtedness as authorized in this chapter and to borrow
money in an amount not to exceed six million dollars from the Bank of North Dakota
for a period not to exceed five years on the terms and conditions as the Bank of
North Dakota and the industrial commission may approve without the necessity of
establishing or maintaining any reserve fund as otherwise required by section
54-17.5-05.4.To receive and accept aid, grants, or contributions of money or other things of value
from any source to be held, used, and applied to carry out the purposes of this
chapter, subject to the conditions upon which the aid, grants, or contributions are
made, including aid, grants, or contributions from any department, agency, or
instrumentality of the United States for any purpose consistent with the provisions of
this chapter.5.To issue and sell evidences of indebtedness in an amount or amounts as the
commission may determine, plus costs of issuance, financing, and any evidences of
indebtedness funded reserve funds required by agreements with or for the benefit of
holders of the evidences of indebtedness for the purpose of funding research,
development, and marketing projects, processes, or activities directly related to
lignite and products derived from lignite.6.To refund and refinance its evidences of indebtedness from time to time as often as
it is advantageous and in the public interest to do so, and to pledge any and all
income and revenues derived by the commission under this chapter or from a
project, process, or activity funded under this chapter to secure payment or
redemption of the evidences of indebtedness.54-17.5-05. Evidences of indebtedness.1.Evidences of indebtedness issued by the industrial commission under this chapter
are payable solely from:a.Appropriations by the legislative assembly from moneys in the lignite research
fund.b.Revenues or income that may be received by the commission from lignite
projects, processes, or activities funded under this chapter with the proceeds of
the commission's evidences of indebtedness.c.Revenues or income received by the commission under this chapter from any
source.2.Not later than July fifteenth of each year preceding the biennial session of the
legislative assembly, the industrial commission shall submit to the office of the
budget a request for the amount required to be appropriated from the lignite
research fund to pay debt service on outstanding evidences of indebtedness during
the following biennium.3.The evidences of indebtedness are not subject to taxation by the state or any of its
political subdivisions and are not debt of the state or of any officer or agent of the
state within the meaning of any statutory or constitutional provision. The evidences
of indebtedness must be executed by the manual or facsimile signature of a
member or members of the commission and the manual signature of a designated
authenticating agent. Any evidences of indebtedness bearing the signature of aPage No. 2member of the commission in office at the date of signing are valid and binding for
all purposes notwithstanding that before delivery the person has ceased to be a
member of the commission.4.The industrial commission shall establish and maintain a reserve fund for evidences
of indebtedness issued under this chapter. There must be deposited in the reserve
fund:a.All moneys appropriated by the legislative assembly to the commission for the
purpose of the reserve fund.b.All proceeds of evidences of indebtedness issued under this chapter required to
be deposited in the reserve fund by the terms of any contract between the
commission and the holders of its evidences of indebtedness or any resolution
of the commission concerning the proceeds of its evidences of indebtedness.c.Any lawfully available moneys of the commission which it may determine to
deposit in the reserve fund.d.Any moneys from any other source made available to the commission for
deposit in the reserve fund.5.Moneys in the reserve fund may be expended only to pay the principal of and
interest on evidences of indebtedness, including payment of any premium required
to be paid when evidences of indebtedness are redeemed prior to maturity, and
sinking fund installments as the same become due and payable.6.Moneys in the reserve fund may only be withdrawn in conformity with the terms of
any contract between the commission and the holders of its evidences of
indebtedness or any resolution of the commission concerning the proceeds of its
evidences of indebtedness.7.The industrial commission must include in its biennial request to the office of the
budget the amount, if any, necessary to restore the reserve fund to an amount equal
to the amount required to be deposited in the fund by the terms of any contract or
resolution described in subdivision b of subsection 4. The legislative assembly may
appropriate such amount from the lignite research fund to the commission for
deposit in the reserve fund.If sufficient moneys are not available in the ligniteresearch fund, the legislative assembly may appropriate any amount necessary out
of any moneys in the general fund or any special funds in the state treasury not
otherwise appropriated.54-17.5-06. Access to commission records.1.Materials and data submitted to, or made or received by, the commission, to the
extent that the commission determines the materials or data consist of trade secrets
or commercial, financial, or proprietary information of individuals or entities applying
to or contracting with the commission or receiving commission services under this
chapter are subject to section 44-04-18.4.2.A person or entity must file a request with the commission to have material
designated as confidential under subsection 1.A request to have materialdesignated as confidential is exempt as defined in section 44-04-17.1. The request
must contain any information required by the commission, and must include at least
the following:a.A general description of the nature of the information sought to be protected.Page No. 3b.An explanation of why the information derives independent economic value,
actual or potential, from not being generally known to other persons.c.An explanation of why the information is not readily ascertainable by proper
means by other persons.d.A general description of any person or entity that may obtain economic value
from disclosure or use of the information, and how the person or entity may
obtain this value.e.A description of the efforts used to maintain the secrecy of the information.3.Any information submitted under subsection 2 is confidential. The commission shall
examine the request and determine whether the information is relevant to the matter
at hand and is a trade secret under the definition in section 47-25.1-01 or
44-04-18.4. If the commission determines the information is either not relevant or
not a trade secret, the commission shall notify the requester and the requester may
ask for the return of the information and request within ten days of the notice. If no
return is sought, the information and request are a public record.4.The names or identities of independent technical reviewers on any project or
programandthenamesofindividuallignitecouncilmembersmakingrecommendations are confidential and may not be disclosed by the commission.Page No. 4Document Outlinechapter 54-17.5 lignite research, development and marketing