ND Legislature considering more anti-carbon pipeline bills

BISMARCK, N.D. (KFYR) - Last week, there was a slate of bills aimed at making it more difficult for a multi-state, billion-dollar carbon capture project to go forward. This week, that trend continues.

Senate Bill 2383 would take away the state tax exemption for carbon dioxide pipelines if the companies building the pipeline are also using federal 45Q tax credits. The 45Q tax credit is a piece of federal tax code that provides a tax credit for carbon dioxide storage.

“The question I’ve had for many people is why are we funding these pipelines with federal taxes and state taxes? Is it a double dip? I don’t know that it is, but I hope to find that out today,” said Senator Jeff Magrum, R-Hazelton.

The bill was opposed by leaders from the energy industry, including the Lignite Energy Council, the North Dakota Petroleum Council, and the North Dakota Ethanol Producers Association. They say this bill would eliminate investment opportunities for power sector carbon capture projects by effectively undoing two decades worth of legislation.