Energy policy in North Dakota, 2015-2017

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Fracking in the U.S.
Energy policy in the U.S.
State fracking policy
State energy policy
Glossary of energy terms

Energy policy involves governmental actions affecting the production, distribution, and consumption of energy in a state. Energy policies are enacted and enforced at the local, state, and federal levels and may change over time. These policies include legislation, regulation, taxes, incentives for energy production or use, standards for energy efficiency, and more. Stakeholders include citizens, politicians, environmental groups, industry groups, and think tanks. A variety of factors can affect the feasibility of federal and state-level energy policies, such as available natural resources, geography, and consumer needs.

This article outlines state-level oil and gas regulations, renewable energy programs, oil and gas production, energy usage, energy and electricity prices, fuel taxes, and utilities in North Dakota.

See the tabs below for further information:

1. Policy: This tab provides information about state regulations on energy production and policies related to oil and gas production, fracking, renewable energy generation, energy efficiency, and net metering.
2. Production: This tab provides information about total energy production by energy source in North Dakota.
3. Usage: This tab presents information about electricity consumption by energy source.
4. Prices and taxes: This tab presents information about average energy and electricity prices, per capita spending on energy, and fuel taxes.
5. Utilities: This tab presents information about public and private utilities, electricity markets, the types of utilities in North Dakota, and the electric reliability organizations in North Dakota.
6. Background: This tab provides information about the types of nonrenewable and renewable energy sources produced and used in the United States, an energy profile of North Dakota, a state profile of North Dakota from the Almanac of American Politics (2016), and economic indicators in the state, such as median income.

## Contents

* 1 Policy
* 1.1 State regulations
* 1.1.1 Fracking
* 1.2 Renewable energy policies
* 1.2.1 Renewable Portfolio Standard
* 1.2.2 Grant programs
* 1.2.3 Loan programs
* 1.3 Energy efficiency regulations
* 1.4 Net metering
* 1.5 Recent legislation
* 1.6 Ballot measures
* 1.6.1 Energy policy ballot measures
* 1.6.2 Utility policy ballot measures
* 2 Production
* 2.1 Total energy production
* 2.2 Nonrenewable energy production
* 2.3 Oil and gas production (2004-2014)
* 2.4 Oil and gas production on federal land
* 2.4.1 Land leased
* 3 Energy usage
* 3.1 Consumption
* 4 Prices and taxes
* 4.1 Energy prices
* 4.2 Energy spending
* 4.3 Fuel taxes
* 4.4 Federal tax
* 5 Utilities
* 5.1 Background
* 5.2 Electricity markets
* 5.3 Electric reliability organizations
* 5.3.1 North Dakota EROs
* 6 Background
* 6.1 Background on energy resources
* 6.2 North Dakota energy profile
* 6.3 State profile
* 6.3.1 Presidential voting pattern
* 6.3.1.1 Pivot Counties (2016)
* 6.3.1.2 Pivot Counties (2020)
* 6.3.2 Economic indicators
* 6.4 See also
* 6.5 Recent news
* 6.6 Footnotes

# Policy[edit]

### State regulations[edit]

The Oil and Gas Division of the North Dakota Department of Mineral Resources has regulatory authority over oil and natural gas operations in the state. State rules and regulations cover the drilling of all wells used for oil or gas exploration, the spacing of wells, permitting requirements for oil and gas operators, injection wells used to enhance oil and gas recovery or to dispose of wastewater, the cementing and plugging of wells, the underground storage of natural gas, the prevention of well blowout and leaks, well restoration, reporting requirements, and more. All North Dakota rules and regulations related to oil and gas operations can be accessed here.[1]

#### Fracking[edit]

See also: Fracking in North Dakota

The Oil and Gas Division is responsible for regulating hydraulic fracturing (also known as fracking) in North Dakota. The division enforces regulations for the reporting and disclosure of the types of fluids used in fracking and at what volume, a description of each chemical additive used in fracking, the maximum amount of surface and injecting pressure used during the process, well safety, and other information considered necessary by the division for the regulation of fracking. More detailed information on oil and gas rules and regulations can be found in Chapter 38-05-25 of the state's oil and gas regulations.

### Renewable energy policies[edit]

States have implemented funding and financial incentive programs to subsidize or otherwise increase investment in renewable energy resources such as wind, solar, and hydroelectric power. These programs include renewable portfolio standards, grants, rebate programs, tax incentives, loans, performance-based incentives, and more. The aim of the policies generally involves reducing the cost of renewable energy production for consumers, reducing regulatory compliance costs, reducing investment risks involving renewable energy, and/or increasing the adoption of renewable energy sources by individuals and businesses.[2]

#### Renewable Portfolio Standard[edit]

See also: Renewable Portfolio Standard

A Renewable Portfolio Standard (RPS), also known as a renewable electricity standard, is a mandate intended to increase the amount of renewable energy production and use. Under these standards, a utility company can be required by a state to have a certain percentage of its electricity come from certain renewable energy resources. In addition, states may give tax credits to utility companies to fulfill these requirements.[3][4]

As of February 2017, North Dakota was one of 30 states with a statewide Renewable Portfolio Standard. In March 2017, the North Dakota Legislature enacted a voluntary goal of producing 10 percent of all retail electricity from renewable energy sources. Eligible resources include solar, wind, biomass, hydroelectric power, geothermal, and hydrogen produced from other eligible renewable sources.[5]

#### Grant programs[edit]

States, nonprofit organizations, and/or private utilities may operate grant programs for renewable energy. These programs may include state or private funding for energy installation costs, research and development, infrastructure and business development, system testing, and renewable energy feasibility studies (studies that look into the potential for renewable energy use in specific areas). Grants can be provided with or without requiring a recipient to match the grant. Additional incentives, such as lower interest loans, may be included with a grant.[2]

As of March 2015, North Dakota was one of 26 states that did not have state-run, utility-run, or locally run grant programs for renewable energy. See the map below for grant programs by state.[2]

States with grant programs for renewable energy as of March 2015 (Source: Environmental Protection Agency)

#### Loan programs[edit]

Loan programs may be used to offer lower interest loans or other financing options to individuals and businesses to reduce the upfront costs of purchasing and installing renewable energy technologies. Loan programs may include programs that use payments from earlier borrowers to provide loans for new borrowers, programs in which building owners reduce their energy consumption to pay their upfront costs for renewable energy technologies, and programs that allow individuals with a higher debt-to-income ratio to purchase homes that use less energy, among others.[2]

As of March 2015, North Dakota was one of 34 states with locally run, utility-run, and/or privately run loan programs for renewable energy.[2]

A complete list of state, local, and private incentive, loan, grant, and assistance programs for renewable energy and energy efficiency in North Dakota can be found here.

See the map below for renewable energy loan programs by state.

States with loan programs for renewable energy as of March 2015 (Source: Environmental Protection Agency (EPA)

### Energy efficiency regulations[edit]

As of February 2017, North Dakota allowed but did not mandate that local governments require all new residential and commercial buildings to meet energy efficiency standards. Local governments choosing to implement these standards had to require all residential and commercial buildings to meet standards for heating, ventilating, air conditioning, water heating, and lighting found in the 2009 International Energy Conservation Code.[6]

### Net metering[edit]

Net metering is a billing system in which customers who generate their own electricity, usually using renewable sources (such as solar panels) are able to sell their excess electricity back to the electric grid, which is an interconnected network that is used to deliver electricity. This requires electricity to be able to flow both to and from a consumer.[7][8][9]

As of October 2016, North Dakota was one of 41 states with a statewide net metering policy. All customers of investor-owned electric utilities are eligible for net metering with certain renewable energy technologies of up to 100 kilowatts (kW) in capacity. Eligible renewable sources include geothermal energy, solar energy, wind energy, biomass, hydroelectric power, and combined heat and power systems. For a complete list of net metering programs by state, click here.[10][11][12]

### Recent legislation[edit]

The following is a list of recent energy policy bills that have been introduced in or passed by the North Dakota State Legislature. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.

Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature recently.

### Ballot measures[edit]

#### Energy policy ballot measures[edit]

See also: Energy on the ballot and List of North Dakota ballot measures

Ballotpedia has covered 1 ballot measures relating to state and local energy policy in North Dakota.

1. North Dakota Power Generating Facilities Bonds, Initiative 1 (1962)

#### Utility policy ballot measures[edit]

See also: Local utility tax and fees on the ballot

Ballotpedia has not covered any ballot measures relating to local utility tax and fees in North Dakota.

# Production[edit]

The sections below include statistics on total energy production in North Dakota, oil and natural gas production in North Dakota, oil and gas production in North Dakota over time (2004-2014), and oil and gas production on federal land, including the amount of federal land leased in North Dakota for production.

### Total energy production[edit]

The table below provides information regarding energy production in North Dakota in British thermal units (Btu). A British thermal unit is used to measure the heat contained in different fuels. The U.S. Department of Energy defines a Btu as "the quantity of heat required to raise the temperature of 1 pound of liquid water by 1 degree Fahrenheit." Fuels are discussed in terms of Btu to compare fuels with different energy content and prices. For example, one gallon of gasoline equals 120,524 Btu.[13]

Energy production, 2014 (in billion Btu)

State | Biomass | Coal | Crude oil | Nuclear energy | Natural gas | Renewable | Total*
North Dakota | 51,578 | 389,673 | 2,301,823 | 0 | 431,532 | 138,331 | 3,312,937
Minnesota | 159,583 | 0 | 0 | 132,904 | 0 | 334,063 | 626,550
Montana | 0 | 790,673 | 173,304 | 0 | 64,117 | 133,710 | 1,161,804
South Dakota | 144,400 | 0 | 10,428 | 0 | 15,878 | 223,482 | 394,188
U.S. average | 38,759 | 404,181 | 307,301 | 160,980 | 585,731 | 187,132 | 1,684,085
*Total figures were computed by Ballotpedia.
Source: U.S. Energy Information Administration, "Google Sheets API"

### Nonrenewable energy production[edit]

The table below provides information regarding nonrenewable energy production in North Dakota. For coal data, the phrase productive capacity refers to the maximum amount of coal that could be expected to be produced in 2014. The natural gas and crude oil production data refer to the amounts of natural gas and crude oil produced in December 2014 and April 2016, respectively.[14][15]

Nonrenewable energy production

State | Coal, productive capacity
(short tons)  | Natural gas
(million cubic feet)  | Crude oil
(thousand barrels)
Date  | 2014  | December 2014  | April 2016
North Dakota | 32,828,000 | 30,590 | 31,212
Minnesota | 0 | 0 | 0
Montana | 51,900,000 | 4,963 | 1,971
South Dakota | 0 | 1,282 | 121
U.S. average | 24,874,314 | 43,350 | 4,388
Source: U.S. Energy Information Administration, "Google Sheets API"

### Oil and gas production (2004-2014)[edit]

Note: This section provides information about oil and gas production on private and state-owned lands. Information on oil and gas production on federal lands is accessible here.

The graph and table below provide information about crude oil production in North Dakota. Information from select surrounding states is provided for comparative purposes.[16]

Crude oil production in North Dakota and select surrounding states,
in thousand barrels

State | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | Percent of total 2014 production | 2014 Rank
North Dakota | 31,152 | 35,675 | 39,943 | 45,122 | 62,780 | 79,728 | 113,064 | 153,014 | 243,831 | 313,905 | 396,749 | 12.47% | 2
Montana | 24,718 | 32,787 | 36,294 | 34,907 | 31,596 | 27,835 | 25,333 | 24,156 | 26,495 | 29,289 | 29,346 | 0.92% | 12
South Dakota | 1,357 | 1,469 | 1,394 | 1,664 | 1,694 | 1,658 | 1,606 | 1,615 | 1,754 | 1,847 | 1,791 | 0.06% | 25
Wyoming | 51,940 | 51,768 | 52,973 | 54,115 | 53,044 | 51,532 | 53,116 | 54,649 | 57,837 | 63,295 | 76,072 | 2.39% | 8
United States | 1,991,394 | 1,891,227 | 1,857,044 | 1,853,166 | 1,830,002 | 1,952,670 | 2,000,861 | 2,060,398 | 2,377,806 | 2,722,171 | 3,180,813 | \-- | \--
Source: U.S. Energy Information Administration, "Crude Oil Production"
Note: The data above are field production data.

The graph and table below provide information about natural gas production in North Dakota. Information from select surrounding states is provided for comparative purposes.[17]

Natural gas production in North Dakota and select surrounding states,
in million cubic feet (MMCF)

State | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | Percent of total 2013 production | 2013 rank
North Dakota | 57,886 | 57,333 | 55,904 | 62,786 | 70,797 | 87,188 | 92,489 | 113,867 | 157,025 | 258,568 | 345,787 | 1.15% | 13
Montana | 86,431 | 97,838 | 108,555 | 114,037 | 120,575 | 119,399 | 105,251 | 93,266 | 79,506 | 66,954 | 63,242 | 0.21% | 21
South Dakota | 11,605 | 11,768 | 11,349 | 10,616 | 11,880 | 12,007 | 12,927 | 12,540 | 12,449 | 15,085 | 16,205 | 0.05% | 24
Wyoming | 1,836,115 | 1,929,040 | 2,003,826 | 2,111,766 | 2,257,884 | 2,488,267 | 2,536,336 | 2,514,657 | 2,375,301 | 2,225,622 | 2,047,757 | 6.82% | 6
United States | 24,118,978 | 23,969,678 | 23,456,822 | 23,535,018 | 24,663,656 | 25,636,257 | 26,056,893 | 26,816,085 | 28,479,026 | 29,542,313 | 30,005,254 | \-- | \--
Source: U.S. Energy Information Administration, "Natural Gas Gross Withdrawals and Production"
The data presented above are gross withdrawals in million cubic feet (MMCF). Production data for 2014 were estimated for some, but not all, states; "--" indicates data were not available.

### Oil and gas production on federal land[edit]

See also: Oil and natural gas extraction on federal land

The federal government leases federally managed land to private individuals and companies for energy development, including crude oil and natural gas drilling, solar energy development, and geothermal energy development. Approximately 166 million acres of federal land were available to be leased for energy development as of December 2014. The U.S. Bureau of Land Management (BLM) is responsible for regulating oil and gas drilling on federal lands in the United States.[18][19]

The table below provides information about oil and natural gas production on federal lands in North Dakota in 2014. Information from select surrounding states is provided for comparison.[20][21]

Oil and natural gas production on federal land, 2014

State  | Oil production (in thousands of barrels)  | Natural gas production (in million cubic feet)
North Dakota | 16,127 | 12,331
Minnesota | 0 | 0
Montana | 2,576 | 12,163
South Dakota | 201 | 113
U.S. average | 2,976.06 | 49,996.92
Source: Office of Natural Resource Revenue, "Statistical Information"

#### Land leased[edit]

Private oil and natural gas companies apply for leases from the U.S. Bureau of Land Management (BLM) to develop energy resources on federal lands. After a lease is approved, the company must submit information to the BLM about how it will conduct its drilling and production operations. The BLM also inspects a company’s operations during production.[22]

The table below provides information about oil and gas producing leases and acres on federal lands in North Dakota from 2013 to 2015. Information from select surrounding states is provided for comparison.

Oil and gas producing leases and acres on federal land by state, 2013-2015

State  | FY 2015  | FY 2014  | FY 2013
Producing leases  | Producing acres  | Producing leases  | Producing acres  | Producing leases  | Producing acres
North Dakota | 1,276 | 587,855 | 1,193 | 570,645 | 1,127 | 556,746
Minnesota | 0 | 0 | 0 | 0 | 0 | 0
Montana | 1,446 | 763,286 | 1,446 | 766,544 | 1,440 | 765,312
South Dakota | 82 | 48,482 | 79 | 44,589 | 79 | 44,589
U.S. average | 485 | 257,505 | 483 | 258,996 | 480 | 262,870
Source: U.S. Bureau of Land Management, "Oil and Gas Statistics"

# Energy usage[edit]

The section below includes statistics on electricity consumption in the state by energy type (in 2014).

### Consumption[edit]

The table below provides information about energy consumption by source in North Dakota in 2014. Information from select surrounding states is provided for comparison.[14]

Energy consumption in North Dakota, 2014 (in billion Btu)

State | Coal | Crude oil and petroleum products | Natural gas | Nuclear energy | Solar | Wind | Geothermal | Hydropower | Wood and wood waste | Biomass
North Dakota | 399,195 | 242,403 | 90,629 | 0 | 10 | 58,985 | 978 | 24,073 | 2,707 | 26,745
Minnesota | 313,073 | 607,762 | 489,901 | 132,904 | 670 | 92,162 | 1,075 | 5,216 | 75,357 | 162,992
Montana | 175,357 | 172,831 | 79,260 | 0 | 64 | 18,771 | 337 | 109,201 | 5,337 | 8,888
South Dakota | 33,062 | 117,723 | 83,464 | 0 | 10 | 22,218 | 1,868 | 52,288 | 2,699 | 62,730
U.S. average | 359,931 | 716,746 | 544,353 | 172,585 | 20,739 | 531,323 | 16,555 | 61,397 | 65,345 | 101,581
Source: U.S. Energy Information Administration, "Google Sheets API"

# Prices and taxes[edit]

The sections below include information on energy prices and spending in North Dakota, fuel taxes and state taxes in North Dakota and in neighboring states, and an overview of the federal tax on gasoline.

### Energy prices[edit]

The price of electricity is affected by supply and demand. The supply of electricity is affected by fuel prices, environmental and energy regulations, power plant capacity, weather, and other factors. Demand for electricity also affects the price. Because electricity cannot be stored for long periods of time, it must be produced and used when it is needed. As demand for electricity increases, the price also generally increases.[23][24]

The table below provides information about energy prices in North Dakota as of April 2016. Information from select surrounding states is provided for comparison.[14]

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis.

Energy prices in North Dakota

State | Natural gas
Dollars per thousand cubic foot  | Electricity
Cents per kilowatthour
Date  | April 2016  | April 2016
North Dakota | $6.50 | 8.7
Minnesota | $7.59 | 9.8
Montana | $6.76 | 8.7
South Dakota | $6.85 | 9.6
U.S. average | $11.20 | 10.41
Source: U.S. Energy Information Administration, "Google Sheets API"

Electricity prices can vary depending on the type of consumer; consumer categories include residential, commercial, industrial, and in some cases, transportation. The rate-making process is both political and economic. The table below presents information about electricity prices by consumer type in North Dakota in April 2016. Information from select surrounding states is provided for comparison.

Electricity prices in North Dakota by sector (in cents per kilowatthour)

State | Commercial | Industrial | Residential | Transportation | Average (all sectors)
Date  | April 2016  | April 2016  | April 2016  | April 2016  | April 2016
North Dakota | 9.3 | 7.1 | 10.5 | 0.0 | 9.0
Minnesota | 9.8 | 7.1 | 12.6 | 9.5 | 9.7
Montana | 10.3 | 4.5 | 11.0 | 0.0 | 8.6
South Dakota | 9.3 | 7.4 | 11.4 | 0.0 | 9.4
U.S. average | 10.48 | 7.45 | 13.05 | 10.47 | 10.36
Source: U.S. Energy Information Administration, "Google Sheets API"

### Energy spending[edit]

The table below provides information about energy spending in North Dakota as of 2014. Information from select surrounding states is provided for comparison.

Energy spending in North Dakota, 2014 (in millions of dollar except per capita spending)

State | Petroleum | Coal | Natural gas | Nuclear | Per capita spending
North Dakota | $5,945 | $866 | $363 | $0 | $11,094
Minnesota | $15,168 | $643 | $3,647 | $119 | $4,638
Montana | $3,850 | $322 | $528 | $0 | $5,402
South Dakota | $3,156 | $72 | $549 | $0 | $5,648
U.S. average | $17,267 | $1,322 | $3,786 | $574 | $5,304
Source: U.S. Energy Information Administration, "Google Sheets API"

### Fuel taxes[edit]

Click to enlarge.

Revenue collected by federal, state, and local governments from fuel taxes is usually used to fund transportation infrastructure such as roads and bridges. Some states may charge an excise tax based on how much gas or diesel is purchased. Some states may charge retail tax based on the average price of gas over a certain period. Additionally, some states may charge an environmental tax to be used for environmental projects. The Tax Foundation, which created the map to the right, used data from the American Petroleum Institute, which converted each state's different tax structure into cents per gallon to compare each state's gas taxes. In 2016, gas taxes accounted for 23 percent of the price of gasoline. Crude oil accounted for 40 percent of the price of gasoline, refining accounted for 24 percent of the price, and distribution and marketing accounted for 13 percent of the remainder.[25][26]

The table below provides information about state fuel taxes by type (excluding the federal gas taxes) in North Dakota as of January 2016. As of January 2016, North Dakota levied a 23 cent state gasoline tax and a 23 cent state diesel tax. North Dakota ranked 34th highest in total gasoline taxes (federal and state) and 36th highest in total diesel fuel taxes as of January 2016.[27][28]

State motor fuel taxes in cents per gallon, January 2016

State | State gasoline tax | Total gasoline tax | Rank | State diesel tax | Total diesel tax | Rank
North Dakota | 23.0 | 41.4 | 34 | 23.0 | 47.4 | 36
Minnesota | 28.6 | 47.0 | 25 | 28.6 | 53.0 | 23
Montana | 27.8 | 46.2 | 27 | 28.5 | 52.9 | 25
South Dakota | 30.0 | 48.4 | 22 | 30.0 | 54.4 | 21
U.S. average | 30.29 | 48.69 | N/A | 30.01 | 54.41 | N/A
Source: American Petroleum Institute, "Motor Fuel Taxes"

### Federal tax[edit]

The first federal tax on gasoline was proposed by Secretary of the Treasury Ogden L. Mills under President Herbert Hoover (R) as a revenue generating measure to balance the budget during the Great Depression. A 1-cent tax per gallon of imported gasoline and fuel oil was passed as part of the Revenue Act of 1932 and signed by President Franklin D. Roosevelt (D). The 1-cent tax continued until 1951 when the tax was increased to 2 cents in part to raise revenue during the Korean War. In 1956, the tax was raised to 3 cents to fund the Interstate Highway System. During this time, the Highway Trust Fund was created as a means to fund highway construction. Since 1956, there have been increases to the tax. As of April 2016, the gas tax was last raised by President Bill Clinton (D) in 1993 to 18.4 cents per gallon.[29]

# Utilities[edit]

The sections below include general information on utilities, an overview of utilities and electricity markets, information on the types of utilities in North Dakota, an overview of electricity reliability organizations (EROs), and the EROs that oversee electricity in North Dakota.

### Background[edit]

Utilities are firms that own and/or operate facilities to generate, transmit, and/or distribute electricity, gas, and/or water to the public. Electric utilities are commercial entities that own and operate facilities to generate, transmit, and distribute electricity to the public and/or the industrial sector. State and local regulators oversee transmission and distribution charges. Local utilities read electric meters and bill individuals or businesses, generally on a monthly basis.[30][31]

Utilities are defined differently in each state and in federal legislation. Two general types of utilities are private and public utilities. Private utilities, commonly known as investor-owned utilities, provide stocks to investors and sell bonds. These utilities are regulated by state regulatory agencies. State agencies are also responsible for setting retail rates charged by investor-owned utilities, overseeing utility infrastructure, and ensuring that investor-owned utilities respond to customer service demands. Public utilities include government or municipally owned utilities. Another type of utility is an electric cooperative. Cooperatives are nonprofit businesses voluntarily owned and managed by the individuals and businesses that use their services. They are commonly used in rural areas that do not have access to a larger state or region-wide electric grid.[31]

### Electricity markets[edit]

Electricity markets in each state are defined as regulated or deregulated. A regulated market includes utilities that own and manage the power plants that generate the electricity, the electricity transmission lines, and the distribution equipment (such as wires and electric poles). In addition, the utilities rates are approved and regulated by local and state agencies. A deregulated market requires utilities to divest ownership in the generation and transmission of electricity. In this market, utilities oversee the interconnection from a meter at a household or business to the power grid and is responsible for billing ratepayers.[32][33]

Depending on the state and/or area, public utilities may provide most or all energy services to homes and businesses, or a state may allow other private electricity providers to transmit and distribute electricity in addition to other utilities. For example, one type of private provider is a retail energy provider, which sells electricity in areas with retail competition. The provider purchases wholesale electricity and the delivery services (such as transmission lines) and can price electricity to particular consumers.[32][33]

As of February 2017, North Dakota was one of 40 states with a regulated electricity market. The North Dakota Public Utilities Division is responsible for regulating the rates, terms, and conditions of retail electric service from all investor-owned utilities in the state. The division also enforces state safety requirements related to electricity. As of February 2017, the state's three investor-owned utilities were Montana-Dakota Utilities, Northern States Power Company, and Otter Tail Corporation.[34]

### Electric reliability organizations[edit]

The Energy Policy Act of 2005 required the Federal Energy Regulatory Commission (FERC) to designate an electric reliability organization (ERO) for the United States. An ERO oversees the reliability of a nation or continent's electric grid. In 2006, FERC granted authority to the North American Electric Reliability Corporation (NERC) to develop and enforce grid reliability standards for the United States. NERC, a self-regulated nonprofit corporation, is authorized to enforce grid reliability standards for all users, owners, and operators of the U.S. electrical system.[35]

NERC works with eight regional reliability organizations to oversee the U.S. electrical system. These organizations, known as regional entities, are composed of officials from investor-owned utilities, federal power agencies, electric cooperatives, and state and municipal utilities. Regional entities enforce NERC and regional reliability standards. Further, they forecast electricity demand and coordinate operations with other regional entities.[36]

#### North Dakota EROs[edit]

As of February 2017, the Midwest Reliability Organization (MRO) was the NERC-affiliated corporation that oversees electricity in North Dakota. The MRO conducts studies and assessments of the electricity grid, conducts long-term planning, and develops regional standards for electricity reliability.[37]

# Background[edit]

The sections below include an overview of the types of renewable and nonrenewable energy produced and consumed in the United States, an energy profile of North Dakota (from the U.S. Energy Information Administration), a general profile of North Dakota (from the 2016 edition of the Almanac of American Politics), and various economic indicators in North Dakota.

### Background on energy resources[edit]

Nonrenewable energy sources, such as coal, oil, and natural gas (sometimes known as fossil fuels), and renewable sources, such as hydropower, wind, biofuels, and solar energy, are produced in each state, though at different levels depending on a state's geography, energy consumption, and the raw materials available in a particular state. For example, several states do not have coal, oil, and/or natural gas resources. States that lack these resources import these fuels.[38]

According to the U.S. Department of Energy, oil, coal, and natural gas comprise the majority of the resources used to generate power in the United States. In 2014, the top five energy-producing states were the top five fossil fuel-producing states—Texas, Wyoming, Pennsylvania, Louisiana, and West Virginia. These states' fossil fuel production accounted for approximately 42 percent of U.S. energy production in 2014. States with fewer coal, oil, and natural gas resources generally consume less energy. In 2014, the bottom five energy-producing states—Rhode Island, Delaware, Hawaii, Nevada, and New Hampshire—produced 0.2 percent of U.S. energy and consumed approximately 2 percent of total U.S. energy.[38]

The production of biofuels (liquid fuels created from plant or plant-derived materials) is generally concentrated in the Midwest—states such as Illinois, Iowa, Nebraska, and South Dakota) given the region's agricultural production of crops such as corn, which is used to make ethanol, a biofuel that can be blended with gasoline and used as a transportation fuel.[38]

Other renewable sources are used to generate power in the states include hydroelectric power, which accounted for about half of all renewable energy production in the United States in 2014.[38]

### North Dakota energy profile[edit]

According to the U.S. Energy Information Administration (EIA), North Dakota is home to crude oil, natural gas, and shale gas reserves. Dunn, McKenzie, Mountrail, and Williams counties were home to 80 percent of the state's wells in 2012. [14]

As of 2015, North Dakota was second to Texas in crude oil reserves and crude oil production. By 2015, crude oil production in North Dakota reached approximately 3.4 billion barrels. In addition, North Dakota was among the top 10 coal-producing states in terms of tonnage as of 2015. Meanwhile, North Dakota accounted for approximately 2 percent of total natural gas reserves and total gas production in the United States as of 2015.[14]

Approximately 70 percent of North Dakota's electricity as of 2015 was supplied by coal-fired power plants; seven of the state's 10 largest power plants in 2015 used coal to generate electricity. The remainder of the state's electricity came from wind energy and hydroelectric power. Because North Dakota generated more electricity than it consumed as of 2015, approximately half of the state's electricity supply was transferred to the interstate electric grids.[14]

## State profile[edit]

Demographic data for North Dakota

| North Dakota| U.S.
Total population:| 756,835| 316,515,021
Land area (sq mi):| 69,001| 3,531,905
Race and ethnicity**
White:| 88.7%| 73.6%
Black/African American:| 1.6%| 12.6%
Asian:| 1.2%| 5.1%
Native American:| 5.3%| 0.8%
Pacific Islander:| 0%| 0.2%
Two or more:| 2.2%| 3%
Hispanic/Latino:| 2.9%| 17.1%
Education
High school graduation rate:| 91.7%| 86.7%
College graduation rate:| 27.7%| 29.8%
Income
Median household income:| $57,181| $53,889
Persons below poverty level:| 12.2%| 11.3%
Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015)
Click here for more information on the 2020 census and here for more on its impact on the redistricting process in North Dakota.

* * *

**Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here.

### Presidential voting pattern[edit]

See also: Presidential voting trends in North Dakota

North Dakota voted Republican in all seven presidential elections between 2000 and 2024.

#### Pivot Counties (2016)

Ballotpedia identified 206 counties that voted for Donald Trump (R) in 2016 after voting for Barack Obama (D) in 2008 and 2012. Collectively, Trump won these Pivot Counties by more than 580,000 votes. Of these 206 counties, four are located in North Dakota, accounting for 1.94 percent of the total pivot counties.[39]

#### Pivot Counties (2020)

In 2020, Ballotpedia re-examined the 206 Pivot Counties to view their voting patterns following that year's presidential election. Ballotpedia defined those won by Trump won as Retained Pivot Counties and those won by Joe Biden (D) as Boomerang Pivot Counties. Nationwide, there were 181 Retained Pivot Counties and 25 Boomerang Pivot Counties. North Dakota had three Retained Pivot Counties, 1.66 percent of all Retained Pivot Counties.

More North Dakota coverage on Ballotpedia

* Elections in North Dakota
* United States congressional delegations from North Dakota
* Public policy in North Dakota
* Endorsers in North Dakota
* North Dakota fact checks
* More...

### Economic indicators[edit]

See also: Economic indicators by state

North Dakota's GDP increased by 6.3 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.[40][41][42]

In September 2014, North Dakota had the lowest unemployment rate in the country at 2.8 percent. Its median annual household income was $55,583, and most North Dakota residents earned incomes at least 400 percent of the federal poverty level.[43][44][45][46]

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state

State  | Distribution of population by FPL* (2013)  | Median annual income (2011-2013)  | Unemployment rate  | Total GSP (2013)†
Under 100%  | 100-199%  | 200-399%  | 400%+  | Sept. 2013  | Sept. 2014
North Dakota | 10% | 17% | 33% | 40% | $55,583 | 2.8% | 2.8% | $56,329
Montana | 15% | 19% | 35% | 31% | $43,924 | 5.6% | 4.6% | $44,040
South Dakota | 11% | 17% | 35% | 37% | $50,488 | 3.7% | 3.4% | $46,732
Wyoming | 12% | 18% | 31% | 39% | $56,569 | 4.6% | 4.7% | $45,432
United States | 15% | 19% | 30% | 36% | $52,047 | 7.2% | 5.9% | $16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government."
† Median annual household income, 2011-2013.
‡ In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state."
Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

## See also[edit]

* Energy policy in the U.S.
* Fracking in North Dakota
* Net metering
* Renewable Portfolio Standard
* Environmental policy in North Dakota

## Recent news[edit]

The link below is to the most recent stories in a Google news search for the terms North Dakota energy policy. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

Energy policy in North Dakota, 2015-2017 - Google News

## Footnotes[edit]

1. ↑ North Dakota Oil and Gas Division, "Home Page," accessed March 27, 2017
2. ↑ 2.0 2.1 2.2 2.3 2.4 U.S. Environmental Protection Agency, "Chapter 3. Funding and Financial Incentive Policies," accessed March 1, 2017
3. ↑ National Renewable Energy Laboratory, “State & Local Activities,” accessed January 30, 2014
4. ↑ National Conference of State Legislatures, "State Renewable Portfolio Standards and Goals," accessed March 14, 2017
5. ↑ DSIRE, "Renewable and Recycled Energy Objective - North Dakota," accessed September 18, 2017
6. ↑ DSIRE, "North Dakota Building Energy Code," accessed March 24, 2017
7. ↑ Database of State Incentives for Renewables and Efficiency, "Glossary," accessed October 22, 2014
8. ↑ Edison Electric Institute, "Straight Talk About Net Metering," September 2013
9. ↑ Call Me Power, "What is the difference between wholesale and retail electricity?" March 12, 2015
10. ↑ Cite error: Invalid `<ref>` tag; no text was provided for refs named `IER`
11. ↑ DSIRE, "Net metering programs," accessed February 28, 2017
12. ↑ DSIRE, "North Dakota Net Metering," accessed March 27, 2017
13. ↑ U.S. Energy Information Administration, "British Thermal Units (Btu)," December 15, 2014
14. ↑ 14.0 14.1 14.2 14.3 14.4 14.5 U.S. Energy Information Administration, "North Dakota State Energy Profile," May 19, 2016
15. ↑ U.S. Energy Information Administration, "Table 13. Productive Capacity and Capacity Utilization of Underground Coal Mines by State and Mining Method, 2014," accessed July 19, 2016
16. ↑ U.S. Energy Information Administration, "Crude Oil Production," July 31, 2015
17. ↑ U.S. Energy Information Administration, "Natural Gas Gross Withdrawals and Production," July 31, 2015
18. ↑ Congressional Research Service, "Federal Land Ownership: Overview and Data," December 29, 2014
19. ↑ U.S. Bureau of Land Management, "Public Land Statistics 2014," May 2015
20. ↑ Western Energy Alliance, "Production," accessed November 25, 2015
21. ↑ James M. Inhofe - U.S. Senator, Oklahoma, "Inhofe Introduces Bill to Achieve Domestic Energy Independence Through State Control of Federal Energy Resources," June 26, 2013
22. ↑ U.S. Bureau of Land Management, "Oil and Gas Lease Sales," accessed October 20, 2014
23. ↑ RWE, "How the electricity price is determined," accessed April 21, 2015
24. ↑ Forbes, "How The Price For Power Is Set," December 26, 2012
25. ↑ U.S. Energy Information Administration, "Gasoline and Diesel Fuel Update," accessed April 25, 2016
26. ↑ Tax Foundation, "How High Are Gas Taxes in Your State?" July 23, 2016
27. ↑ The Washington Post, "A (very) brief history of the state gas tax on its 95th birthday," February 25, 2014
28. ↑ American Petroleum Institute, "Motor Fuel Taxes," accessed April 27, 2016
29. ↑ U.S. Department of Transportation, "When did the Federal Government begin collecting the gas tax?" November 18, 2015
30. ↑ Business Dictionary, "Electric utility," accessed February 28, 2017
31. ↑ 31.0 31.1 U.S. Department of Energy, "A Primer on Electric Utilities, Deregulation, and Restructuring of U.S. Energy Markets," May 2002
32. ↑ 32.0 32.1 Electric Choice, "Map of Deregulated Energy States and Markets (Updated 2017)," accessed February 28, 2017
33. ↑ 33.0 33.1 Allied Power Services, "Deregulated States," accessed February 28, 2017
34. ↑ North Dakota Public Utilities Division, "Jurisdiction: Electric and Gas," accessed March 27, 2017
35. ↑ WhatIs.com, "North American Electric Reliability Corporation (NERC)," accessed February 28, 2017
36. ↑ North American Electric Reliability Corporation, "Frequently asked questions," August 2013
37. ↑ Midwest Reliability Organization, "About MRO," accessed March 16, 2017
38. ↑ 38.0 38.1 38.2 38.3 U.S. Department of Energy, "How Much Energy Does Your State Produce?" November 10, 2014
39. ↑ The raw data for this study was provided by Dave Leip of Atlas of U.S. Presidential Elections.
40. ↑ Academy Health, "Impact of the Economy on Health Care," August 2009
41. ↑ The Conversation, "Budget explainer: What do key economic indicators tell us about the state of the economy?" May 6, 2015
42. ↑ Health Affairs, "Socioeconomic Disparities In Health: Pathways And Policies," accessed July 13, 2015
43. ↑ The Henry J. Kaiser Family Foundation, "Distribution of Total Population by Federal Poverty Level," accessed July 17, 2015
44. ↑ The Henry J. Kaiser Family Foundation, "Median Annual Household Income," accessed July 17, 2015
45. ↑ The Henry J. Kaiser Family Foundation, "Unemployment Rate (Seasonally Adjusted)," accessed July 17, 2015
46. ↑ The Henry J. Kaiser Family Foundation, "Total Gross State Product (GSP) (millions of current dollars)," accessed July 17, 2015

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