43-03-05-01. Application evaluation - Criteria.

All applications will be evaluated according to the criteria set forth in North Dakota Century Code chapter 54-17.5, and the criteria established by the commission as stated in this section.

1. General criteria. Priority areas of the program include, but are not limited to, marketing applications of lignite and lignite products; reclamation applications that will reduce unnecessary regulatory costs; demonstration or development activities for lignite projects and activities and for lignite products that have a high probability of commercialization; and base-line research that promotes additional lignite production or lignite products for the economic growth of North Dakota. The project must be applicable to research, development, or marketing of lignite or products derived from lignite or land reclamation research. The projects need not be unique to North Dakota's lignite resources but must be applicable to them. It is preferred that the project focus on the development and use of lignite rather than basic research.

2. Specific criteria.

a. Projects should conform to the following criteria:

(1) Preserve or enhance existing jobs and create the opportunity for additional jobs. (2) Preserve or enhance existing lignite production. (3) Provide the opportunity for development and demonstration of marketable lignite products and technologies. (4) Provide for economic growth and benefit in coal-producing counties or those counties with recoverable coal reserves. (5) Provide a high probability for commercialization of the process, activity, or technology in North Dakota by the year 2000 or before. (6) Provide for specific marketing strategies and contributions to the effective marketing of lignite, its products, or lignite-based technologies by the year 2000 or before. (7) Provide opportunity for reclamation research projects that will reduce unnecessary regulatory costs and assist in effectively reclaiming surface mine land to its original or better productivity as soon as possible.

b. The merits of the project will be weighed in relation to:

(1) The potential value of the project's success including market potential, social value, environmental value, technical feasibility, competition in the marketplace, and timing of completion; (2) The feasibility of the cost benefit ratio of the project; (3) The risk involved in funding the project; and (4) The economic condition of the applicant. c. The project's compatibility with the objectives of the program will be considered, in particular, the following will be evaluated: (1) The need for the project; (2) The potential use by the lignite-related industry of the results to be achieved by the project; (3) The timeliness of the project with regards to deadlines established by legislation; (4) The impact on the lignite-related industry; (5) The level of funding requested; (6) The level of matching funds; (7) The short-term and long-term benefits to the applicant, lignite industry, lignite producers, and the counties and state of North Dakota; (8) The likelihood that the project will achieve its technical and market goals; (9) The scientific soundness and innovation of any proposed technology; (10) The financial feasibility of the proposed project; and (11) The technical qualifications and expertise of the applicant, the investigators, and the sponsors.

History: Effective February 1, 1988; amended effective October 1, 1990; March 1, 1992.

General Authority: NDCC 57-61-01.5

Law Implemented: NDCC 54-17.5-01, 54-17.5-03, 57-61-01.5