Legislative Impact on Western ND

1. Legislative Impact on Western ND Brady Pelton Deputy Executive Director ND Association of Oil and Gas Producing Counties Vision West ND Consortium Meeting - Parshall, ND

2. A Historic Session • 80 days allowed by Constitution • 918 bills and resolutions introduced • 842 bills • 74 concurrent resolutions • 2 memorial resolutions • 503 were signed into law by Governor Dalrymple

3. 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

5. GPT Revenue Estimates for FY 2014

6. Hub City Allocations from 1st 1% GPT Williston $375,000 43 $16.125 Million/year Divide by 12 = Monthly Distribution Amount Dickinson $375,000 21 $7.875 Million/year Divide by 12 = Monthly Distribution Amount Minot $375,000 6 $2.25 Million/year Divide by 12 = Monthly Distribution Amount

7. 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 PLUS • Oil 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

8. Hub City School Districts Williston $125,000 43 $5.375 Million/year Dickinson Divide by 12 = Monthly Distribution Amount $125,000 21 $2.625 Million/year Divide by 12 = Monthly Distribution Amount Minot $125,000 6 $750,000/ year Divide by 12 = Monthly Distribution Amount

10. 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

11. HB 1358 - Energy Impact Grants • $239.3 million appropriated for energy impact grants • Legislative 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

12. Energy Impact Grants (Cont’d) • $135.8 Million Remains for “Non-Specific” Awards • 5 grant rounds expected each year: • City Infrastructure • Airports • K-12 Schools • Emergency Services • All other pol subs (with emphasis on infrastructure) • i.e. Counties, Park Districts, and other taxing pol subs

13. 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

14. SB 2176 – State Highway Funding • Fast Tracked Bill • Provide $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

15. 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

16. 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

17. 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

18. Public Health and Safety • $3.8 million for 15 additional HP troopers • 2 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

19. Questions?

20. Contact Brady Pelton Deputy Executive Director ND Association of Oil and Gas Producing Counties 400 East Broadway, Suite 304 Bismarck, ND 58501 Office: (701) 751-3597 Cell: (701) 260-2479 Email: brady.pelton@midconetwork.com Web: www.ndenergy.org