Burgum: Lawmakers should budget for court battles over federal regulations

BISMARCK — Gov. Doug Burgum told a group of lawmakers Wednesday to spare no expense in fighting federal regulations that affect North Dakota’s energy industry.

President Joe Biden’s administration has tightened environmental policies in a number of areas — including an Environmental Protection Agency rule on mercury emissions that North Dakota officials say targets the state’s lignite industry.

The EPA says the rule change is necessary to mitigate serious health risks caused by air pollutants. Analysis by the EPA found the rule will have “relatively minor impacts” on the energy industry, according to a fact sheet on the federal agency’s website.

Yet in testimony before the Energy Development and Transmission Committee, Burgum called the rules and other federal regulations cumbersome, illogical and an “existential threat” to North Dakota’s energy and agriculture industries.

The governor said he fears this trend will only continue if Biden is reelected — and that the Legislature should be ready to finance a spate of new lawsuits against the federal government in hopes the courts will roll the regulations back.

“As bad as it is right now, I don’t want anybody to think it couldn’t get worse,” Burgum told the committee.

The energy industry is a major driver for state revenue, which is why the stakes are so high for North Dakota, Burgum said. Fending off the rules will mean giving the Attorney General’s Office more money to hire special assistant AGs, he continued.

“I don’t want the attorney general to be going, ‘Well, I’m not sure I’ve got it in my budget,’” Burgum said. “Man, that would be penny-wise, pound-foolish when the billions of dollars of revenue that all of you appropriated is at risk.”

The governor’s office is preparing two state budgets to propose to lawmakers ahead of next year’s legislative session: one for if former President Donald Trump wins the election, and a Biden budget that sets aside more money for legal fees.

Burgum said the Legislature set aside at least $15 million in the 2023-25 state budget for lawsuits challenging federal regulations. Of that, $6 million went to the Industrial Commission — $3 million for lignite lawsuits, and the other $3 million for oil and gas litigation, he said. Another $4 million went to the Attorney General’s Office, and $5 million was appropriated for agriculture.

Burgum was far from the only state official at the meeting with strong words for the federal government.

David Glatt, director of the Department of Environmental Quality Director, called regulatory action under Biden an “unprecedented trainwreck” for North Dakota.

Lynn Helms, director of the Department of Mineral Resources, also encouraged the state to seek relief in court.

“It will be an incredible challenge to undo the rules and regulations that have been promulgated,” Helms said.

Sen. Merrill Piepkorn, D-Fargo — who last week announced he was joining the race to succeed Burgum as governor — took a more reserved stance.

“I have to be better educated on the subject as to where we are right now, and what the anticipated work would be,” he said. “I don’t know if I would be preparing a huge budget to hire additional attorneys right off the bat.”

This story was originally published on NorthDakotaMonitor.com