State and Local Policy Database

North Dakota

State Scorecard Rank

43

North Dakota

4.5Scored out of 50Updated 12/2022
State Government
Score: 1 out of 4.5
State Government Summary List All

The state offers one grant for consumer energy efficiency projects, and does not actively lead by example. There are no research centers focused on energy efficiency within the state.

Financial Incentives List All

The state of North Dakota offers the following financial incentives to encourage energy efficiency improvements:

  • Energy Conservation Grant Program: The grant program is administered by the Division of Community Services and assists North Dakota political subdivisions in making energy efficiency improvements to public buildings. Awards range from $10,000 to $100,000 and a 50% cash match is required.
  • State Energy Program (SEP): The State Energy Program (SEP) promotes energy efficiency and conservation and is supported by financial and technical assistance through the U.S. Department of Energy. Community Services receives an annual allocation to implement the SEP program. Annual allocations vary but usually fall between $350,000 and $380,000. Community Services makes SEP funds available to applicants for a variety of energy efficiency related activities. These include energy education, installation of energy efficient measures (building audits, lighting retrofits, HVAC upgrades, etc), transportation initiatives (alternative fuel vehicles and fueling systems), and renewable energy technologies (small scale wind turbines and solar technologies).

Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE North Dakota).

Last Updated: June 2022

Equity Metrics and Workforce DevelopmentList All

We were unable to determine if the state's energy plans or electrification strategies establish specific policies or equity-related metrics to ensure access for underserved customers or if they include specific measures to prioritize clean energy workforce development.

Last Reviewed: September 2020

Carbon Pricing PoliciesList All

The State of North Dakota does not yet have carbon pricing policies in place.

At this time, the state does not have a statewide emissions reduction goal in place.

Last Reviewed: September 2022

Building Energy Disclosure List All

There is no disclosure policy in place.

Last Reviewed: July 2017

Public Building Requirements List All

Though North Dakota has no requirements for state buildings, it does have programs in place for public building efficiency. The legislature approved a continuing appropriation to assist North Dakota political subdivisions that are making energy efficiency improvements to public buildings. Applicants can receive up to $100,000 on qualifying projects. This program will receive $1.2 million per biennium.

Last Reviewed: June 2022

Fleets List All

No policy in place or proposed

Note: For state efficient fleet initiatives, policies listed must make a specific, mandatory requirement for increasing state fleet efficiency. State alternative-fuel vehicle procurement requirements that give a voluntary option to count efficient vehicles are thus not included.

Last Reviewed: June 2022

Energy Savings Performance Contracting List All

Section 48-05-10 & 48-05-11 of North Dakota Code enables energy savings contracts.

Last Reviewed: July 2020

Research & Development List All

No public research centers have a focus on energy efficiency.

Last Reviewed: July 2017

Important Links List All
Buildings
Score: 1 out of 12
Buildings Summary List All

North Dakota is a home rule state and has no statewide mandatory energy codes. The voluntary energy code is under the purview of the North Dakota State Building Code and the state Building Code Advisory Committee has the authority to make recommendations that could include energy standards future editions of the State Building Code. North Dakota recently adopted the 2018 IECC as its voluntary statewide code – without commercial amendments and with weakening residential amendments – and 91% of the state population resides in jurisdictions that have adopted this code update.

Residential Codes List All

North Dakota is a home rule state and has no statewide mandatory energy codes. The state recently adopted an amended version of the 2018 IECC as its voluntary residential code. Approximately 91% of the state’s population lives in a jurisdiction that has adopted the ND State Building Code which includes the 2018 IECC. The state is currently going through the adoption of the 2021 ICC codes including the 2021 IECC. The codes will become effective on January 1, 2023.

Last Reviewed: June 2022

Commercial Code List All

North Dakota is a home rule state and has no statewide mandatory energy codes. The state recently adopted the 2018 IECC as its voluntary commercial code. Approximately 91% of the state’s population lives in a jurisdiction that has adopted the ND State Building Code which includes the 2018 IECC. The state is currently going through the adoption of the 2021 ICC codes including the 2021 IECC. The codes will become effective on January 1, 2023.

Last Reviewed: June 2022

Compliance List All
  • Gap Analysis/Strategic Compliance Plan: NA
  • Baseline & Updated Compliance Studies: NA
  • Utility Involvement: NA
  • Stakeholder Advisory Group: NA
  • Training/Outreach: A series of seven trainings on the 2009 IECC were held across the state in January of 2015 for contractors, code officials, and aspiring code officials.

Last Reviewed: June 2022

CHP
CHP Summary List All

Some incentives are available for CHP, but the state has limited policies in place to encourage CHP deployment. No new CHP systems were installed in North Dakota in 2018.

Interconnection StandardsList All

There is currently no interconnection standard in place that applies to CHP.

For more information on interconnection standards, click here.

Last Updated: July 2017

Encouraging CHP as a ResourceList All

There are currently no state policies designed to acquire energy savings from CHP (like other efficiency resources) or energy generation from CHP (in terms of kWh production) that apply to all forms of CHP.

Last Updated: July 2017

Deployment IncentivesList All

Incentives, grants, or financing: CHP systems maybe be eligible for assistance through the state’s Sales and Use Tax Exemption for Electrical Generating Facilities program, according to which all electrical generating facilities are 100% exempt from sales and use taxes in North Dakota.

Net metering: North Dakota’s net metering rule applies to systems 100 kW or smaller that operate in the service areas of investor-owned utilities. If a customer has net excess generation (NEG) at the end of a monthly billing period, the utility must purchase the NEG at the utility's avoided-cost rate. There is no statewide limit on aggregate net-metered capacity. These rules apply to CHP systems.

Last Updated: July 2017

Additional Supportive PoliciesList All

There are currently no additional supportive policies to encourage CHP.

Last Updated: July 2017

Utilities
Score: 0 out of 15
Utilities Summary List All

While the PSC does not require utilities to implement energy efficiency programs, regulated utilities are required to meet their power needs through least-cost planning, which includes the consideration of Demand-Side Management (DSM) programs. North Dakota’s utilities run a limited set of programs in order to meet resource needs. However, efficiency program budgets and the associated energy savings have been below the national average.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2017

Customer Energy Efficiency Programs List All

North Dakota’s utilities run a limited set of energy efficiency programs. Otter Tail Power offers a financing program for energy efficiency improvements as well as rebates. Northern Plains Electric Cooperative also offers a commercial energy efficiency loan program. Xcel energy and a number of municipal utilities offer rebates for energy-efficient appliances.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: July 2017

Energy Efficiency as a Resource List All

There is currently no policy in place that treats energy efficiency as a resource.

The North Dakota PSC has a rule that requires integrated resource planning (IRP).

For more information on energy efficiency as a resource, click here.

Last Updated: January 2019

Energy Efficiency Resource Standards List All

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.

Last Updated: July 2017

Utility Business Model List All

There is currently no policy in place that decouples utility profits from sales. Xcel Energy has a straight fixed variable approach in place.

Last Updated: July 2017 

Evaluation, Measurement, & Verification List All

There are no formally approved ratepayer-funded energy efficiency programs in North Dakota. For more information on Evaluation Measurement and Verification, click here.

Last Reviewed: January 2020

Guidelines for Low-Income Energy Efficiency Programs List All

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

No specific level of spending is required.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

Level of coordination is unclear from publicly available data.

Last updated: July 2017

Self Direct and Opt-Out Programs List All

There are no self-direct or opt-out programs in North Dakota. 

Data AccessList All

North Dakota has no policy in place that requires utilities to release energy use data to customers or third parties.

Last Updated: July 2017

Transportation
Score: 2.5 out of 13
Transportation Summary List All

The state integrates transportation and land-use planning, but has not otherwise pursued policies that encourage efficient transportation systems.

Tailpipe Emission Standards List All

No policy in place or proposed.

Last Updated: November 2022

Transportation System Efficiency List All

Transportation and Land Use Integration: The state of North Dakota passed House Bill 1340 in December 2009 mandating metropolitan planning organizations (MPOs) to develop, in cooperation with the state and public transit operators, transportation plans and programs for metropolitan areas. These plans must include transportation measures that promote inter-modal transportation development and efficient transportation systems while minimizing transportation-related fuel consumption. Transportation plans must also comply with government-approved comprehensive growth plans.

VMT Targets: No policy in place or proposed.

FAST Freight Plans and Goals: North Dakota has a state freight plan that identifies a multimodal freight network, but it does not include freight energy or greenhouse gas reduction goals.

Last Updated: November 2022

Transit Funding List All

No policy in place or proposed.

Last Updated: November 2022

Incentives for High-Efficiency Vehicles List All

No policy in place or proposed.

Last Reviewed: November 2022

Equitable Access to TransportationList All

North Dakota does not have any state programs in place to incentivize the creation of low-income housing near transit facilities, nor does it consider the proximity of transit facilities when distributing federal Low-Income Housing Tax Credits to qualifying property owners.

Last Reviewed: November 2022

Appliance Standards
Score: 0 out of 3
Appliance Standards Summary List All

North Dakota has not set appliance standards beyond those required by the federal government.

Last Reviewed: June 2019