Vision West ND Consortium Meeting - Parshall, ND

BRADY PELTONDEPUTY EXECUTIVE DIRECTOR

ND ASSOCIATION OF OIL AND GAS PRODUCING COUNTIES

Legislative Impact on Western ND

July 18, 2013

A Historic Session

80 days allowed by Constitution918 bills and resolutions introduced

842 bills 74 concurrent resolutions 2 memorial resolutions

503 were signed into law by Governor Dalrymple

HB 1358 - The “Big One”

Adjusts the oil and gas Gross Production Tax (GPT) distribution formula to political subs

Appropriates money towards oil-producing and non oil-producing counties for roads

Appropriates money for Energy Impact Grants

Appropriates money for grants to nursing homes, basic care facilities, and developmental disability service providers

Appropriates money for critical access hospital grants

GPT Revenue Estimates for FY 2014

Hub City Allocations from 1st 1% GPT

Williston

43 $375,000

$16.125 Million/yea

rDickinson

21 $375,000

$7.875 Million/yea

rMinot

6 $375,000

$2.25Million/

year

Divide by 12 = Monthly Distribution Amount

Divide by 12 = Monthly Distribution Amount

Divide by 12 = Monthly Distribution Amount

Hub City Allocations Continued

9% of the total local amount in counties receiving $5 million or more in GPT revenue 60% to Williston 30% to Dickinson 10% to Minot

PLUSOil and gas impact grants

Williston - $2 million Dickinson - $7 million Minot - $5 million

Total funding package for hub cities is expected to be $105.42 million over the biennium

Hub City School Districts

Williston

43 $125,000

$5.375 Million/yea

rDickinson

21 $125,000

$2.625 Million/yea

rMinot

6 $125,000

$750,000/year

Divide by 12 = Monthly Distribution Amount

Divide by 12 = Monthly Distribution Amount

Divide by 12 = Monthly Distribution Amount

HB 1358 – County Road Funding

$160 million to oil-producing counties that received $5 million or more in GPT revenue in FY 2013 Distributed based on UGPTI needs analysis Billings, Bowman, Burke, Divide, Dunn, McKenzie,

Mountrail, Stark, and Williams Counties

$120 million to counties that received less than $5 million in GPT revenue in FY 2013 Distributed based on County Major Collector (CMC) mileage Adams, Bottineau, Golden Valley, Hettinger, McHenry,

McLean, Mercer, Renville, Slope, and Ward Counties

HB 1358 - Energy Impact Grants

$239.3 million appropriated for energy impact grantsLegislative Allocations:

$5 million – New oil and gas development counties $60 million – Airports (priority to those that have federal funding) $4 million – Higher education institutions $3 million – Dust control pilot project (+ additional $3 million) $7 million – County sheriff’s offices $7 million – Emergency Medical Services $3.5 million – Fire protection districts $14 million – Hub cities

Williston - $2 million; Dickinson - $7 million; Minot - $5 million

Energy Impact Grants (Cont’d)

$135.8 Million Remains for “Non-Specific” Awards

5 grant rounds expected each year:1. City Infrastructure2. Airports3. K-12 Schools4. Emergency Services5. All other pol subs (with emphasis on

infrastructure) i.e. Counties, Park Districts, and other taxing pol subs

HB 1358 – Other Appropriations

$2 Million to the Dept. of Commerce for grants to nursing homes, basic care facilities, and developmental disability service providers in OPCs

$9.6 Million to the Dept. of Human Services for grants to critical access hospitals in OPCs and contiguous counties

$9.6 Million to the Attorney General’s Office for grants to law enforcement agencies Will be administered by the State Land Board

SB 2176 – State Highway Funding

Fast Tracked BillProvide $620 Million appropriation to DOT

for state highway construction and maintenance

Much of that money is going out west Reliever routes in Williston, New Town, Killdeer,

Dickinson Four laning of Hwy 85 from Williston to Watford City Passing and turning lanes being added to Hwy 85 and

Hwy 22 Continued resurfacing and maintenance on Hwy 1804

and Hwy 23

Housing

Reauthorization of the Housing Incentive Fund (HIF)

$20 million in state income tax credits $15.4 million in general fund dollars for direct

investment in affordable housing projects Priority given to “Essential Service Worker” (ESW)

housing

$12 million in Flex PACE buydown funds to support residential construction

Child Care

$2.6 million in matching grants to assist in establishment/expansion of child care facilities

Income eligibility increased for child care service payments (to 85% of median family income)

$4.1 million for training, technical assistance, incentives for child care providers for workforce development, quality improvement, technical assistance, and capacity building

Water Projects

$40 million allocated for Western Area Water Supply (WAWS)

Additional $79 million to expand fresh water supply into communities and rural areas

$14 million for Northwest Area Water Supply expansion

$79 million for the Southwest Water Pipeline project Transmission line construction Dickinson water treatment plant upgrade Rural water supply extensions

Public Health and Safety

$3.8 million for 15 additional HP troopers2 additional district court judgeships in the

NW One chambered in Williston, one in Watford City

$14.5 million to enhance support for fire protection districts across state

$7.34 million for rural EMS across state$1 million to enhance support for local public

health units across state

QUESTIONS?

ContactBrady PeltonDeputy Executive DirectorND Association of Oil and Gas Producing Counties400 East Broadway, Suite 304Bismarck, ND 58501

Office: (701) 751-3597Cell: (701) 260-2479Email: brady.pelton@midconetwork.comWeb: www.ndenergy.org