North Dakota
Armstrong issues first veto as North Dakota governor
BISMARCK — North Dakota Gov. Kelly Armstrong issued his first veto since assuming office Friday, citing concerns over the constitutionality of Senate Bill 2261.
The legislation sought to establish a prison industries workforce development tax credit — a non-refundable tax credit equal to 10% of the cost of purchased components of final manufactured products or labor from prison industries.
In his statement on the veto, Armstrong said the credit would have potentially created an incentive to purchase components from Rough Rider Industries – a self-sustaining state agency at the State Penitentiary which qualifies as a prison industry providing final manufactured products.
He said the bill creates an “uneven playing field” by giving Rough Rider Industries an unfair competitive advantage over out-of-state manufacturers. That would potentially violate the Dormant Commerce Clause of the U.S. Constitution, which prohibits states from enacting laws that discriminate against or unduly burden interstate commerce.
“Tax credits, when given to micro-segments of the economy, decrease state revenue and further saddle those still paying taxes with a higher percentage of the tax burden,” Armstrong said in his statement. “Any tax policy that creates this type of carve-out must be tied to a significant outcome that benefits the state’s economic interests. This bill does not do that. Combined with the aforementioned legal concerns, the juice in this case is quite simply not worth the squeeze.”
North Dakota Office of the Governor
The bill passed the Senate in a 43-3 vote and passed the House of Representatives on a 56-33 vote.
To override the veto, both chambers of the Legislature vote and both need to reach a two-thirds majority in favor of the override. A two-thirds majority is 63 votes for the House and 32 votes for the Senate.
North Dakota
Armstrong opens application period for Governor’s Band/Orchestra and Choral programs
BISMARCK, N.D. – Gov. Kelly Armstrong today announced the opening of the application period for school, community and church bands, orchestras and choirs across North Dakota to apply to serve as the Governor’s Official State Band/Orchestra Program and Choral Program for the 2026-2027 school year.
The Governor and First Lady will select the two groups from the applications received based on musical talent, achievement and community involvement. The governor may invite the groups to perform at official state functions held throughout the 2026-2027 school year, including the State of the State Address in January 2027 at the Capitol in Bismarck.
Interested groups should submit an application with a musical recording to the Governor’s Office by 5 p.m. Monday, May 4. The Governor’s Band/Orchestra Program and Governor’s Choral Program will be announced in May. Please complete the application and provide materials at https://www.governor.nd.gov/governors-chorus-and-bandorchestra-program-application.
North Dakota
Greenpeace seeks new trial, claiming jury pool biased in case over Dakota Access Pipeline
Greenpeace has asked for a second trial after a judge entered a $345 million judgment against the organization in a landmark case brought by the developer of the Dakota Access Pipeline.
The case “threatens to result in one of the largest miscarriages of justice in North Dakota’s history,” attorneys for the environmental group wrote in a brief filed last week.
After a three-week trial roughly a year ago, a Morton County jury directed Greenpeace to pay Energy Transfer about $667 million, finding the environmental group at fault for inciting illegal acts against the company during anti-pipeline protests in North Dakota in 2016 and 2017 and for publishing false statements that harmed Energy Transfer’s reputation.
Greenpeace denies Energy Transfer’s claims and maintains that it brought the lawsuit to hurt the environmental movement.
Southwest Judicial District Judge James Gion in October slashed the jury’s award to $345 million, though he didn’t finalize the award until late February.
Greenpeace is now taking steps to fight the judgment, which includes its motion for a new trial.
The environmental group’s reasons for the request include claims that the jury instructions and verdict form contained errors, and that Energy Transfer was allowed to present unfair and irrelevant evidence to jurors. The group also alleges the jury pool was biased.
Greenpeace says the jury’s award assumes that Greenpeace was entirely responsible for any injury Energy Transfer sustained related to the protests. Jurors were not given the opportunity to consider whether Greenpeace was only at fault for a portion of the damages, the organization wrote in its brief.
Attorneys for Greenpeace also referenced the mailers and other media circulated to Mandan and Bismarck residents before the trial that contained anti-Dakota Access Pipeline protest and pro-energy industry content.
The environmental group seeks a new trial in Cass County, arguing in part that the jury pool in the Fargo area would be more fair because its residents did not directly experience the Dakota Access Pipeline protests and because the local economy is less dependent on the energy industry.
If Greenpeace’s request for a new trial is denied, it plans to appeal the case to the North Dakota Supreme Court, the organization has said.
Greenpeace previously asked for the trial to be moved from Morton County to Cass County in early 2025, which Gion and the North Dakota Supreme Court denied.
The lawsuit is against three separate Greenpeace organizations — Greenpeace USA, Greenpeace International and Greenpeace Fund.
Energy Transfer as of Wednesday morning had not submitted a response to Greenpeace’s motion for a new trial. Previously, the company has defended the jury’s verdict and disputed Greenpeace’s claims that the court proceedings were not fair.
Energy Transfer has indicated it may appeal Gion’s decision to reduce the award to $345 million.
Greenpeace will not have to pay any of the $345 million judgment for at least a couple of months, Gion ruled Tuesday.
Court documents indicate that the organization could have to pay a bond of up to $25 million while appeals proceed, though the environmental group has asked the judge to waive or reduce this amount. Gion has not decided on this motion.
He noted that obtaining such a large bond will be challenging.
“The magnitude of this matter defies simple decisions,” Gion wrote.
Energy Transfer in court filings urged the judge to require Greenpeace to post the full $25 million.
Any bond money Greenpeace provides would be held by a third party while the appeals proceed, according to Greenpeace USA.
Greenpeace International has filed a separate lawsuit in the Netherlands that accuses Energy Transfer of weaponizing the U.S. legal system against the environmental group. Energy Transfer asked Gion to order that the overseas suit be paused while the North Dakota case is still active, which Gion denied. The company appealed his ruling to the North Dakota Supreme Court, which has yet to make a decision on the matter.
North Dakota
Minnkota Says Cost of Data Center Power Project Rises Won’t Affect Customers
(Photo by Jeff Beach/North Dakota Monitor)
(North Dakota Monitor) – The cost of the power line and substation needed by a data center north of Fargo has risen from $75 million to $110 million, but developers say the data center company will still cover the entire cost of the project.
Applied Digital needs the project to power its data center being built between Fargo and Harwood. The data center requires 280 megawatts of power at peak demand.
Applied Digital will pay for the project but it will be owned by Grand Forks based, Minnkota Power Cooperative.
The North Dakota Public Service Commission held a hearing in Fargo on what is known as the Agassiz Transmission Line and Substation.
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