The N.D.C.C. § 57-62-03.1 states: “The moneys accumulated in the oil and gas impact grant fund must be allocated as provided by law and as appropriated by the legislative assembly for distribution through grants by the energy infrastructure and impact office to oil and gas development-impacted cities, counties, school districts, and other taxing districts...”
A taxing district (political subdivision) must be able to levy a tax as recognized/authorized by the State of North Dakota; or entities indicated by the legislative assembly, are eligible to apply for a grant.
N.D.C.C. § 57-62-06 provides “grants are to be used by grantees to meet initial impacts affecting basic governmental services, and directly necessitated by”… “oil and gas development impact”…
N.D.C.C. § 57-62-06 also indicated that “”basic governmental services” do not include activities relating to marriage or guidance counseling, services or programs to alleviate other sociological impacts, or services or facilities to meet secondary impacts. All grant applications and presentations to the energy infrastructure and impact office must be made by an appointed or elected government official.“
The project for which a grant application is submitted must have resulted from direct impacts from oil and gas development within the guidelines defined.
Examples of Political Subdivisions include those entities recognized by the State of North Dakota authorized to levy a tax, including:
- Incorporated Cities
- Fire Districts
- Ambulance Districts
- School Districts
- Airport Authorities
- Water Resource Districts
- Park Boards
- Local District Health Units
For the 2015-2017 biennium, the Legislature provided an exemption to Chapter 57-62 for certain entities and allocated funds for grants to these entities that are not taxing districts. Those with an exemption include critical access hospitals, emergency medical services, nursing homes/basic care facilities/providers of home health care services and hospice programs, providers serving individuals with developmental disabilities, and domestic violence sexual assault organizations. The exemption enables grants through the Energy Infrastructure and Impact Office as provided by the Board of University and School Lands, to be awarded to entities that are not political subdivisions.