News Releases for February 2007
February 15, 2007
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Legislature, Governor Working On Comprehensive Renewable Energy Plan
Emphasis on Promoting Renewables, Partnerships with Traditional Industries
BISMARCK, N.D. - Gov. John Hoeven today joined House Majority Leader Rick Berg and Senate Majority Leader Bob Stenehjem to detail a comprehensive $43.5 million Renewable Energy Plan. Legislators in both houses are working to fund an inclusive package of programs promoting renewable energy, including programs aimed at supporting the 25 X 25 Initiative, the national goal of generating 25 percent of the nation's energy from renewable sources and doubling the state's energy output from all sources by the year 2025.
Joining Hoeven and the legislative leaders were Sen. Jerry Klein; Sen. Terry Wanzek; Sen. Bob Erbele; Sen. Tim Flakoll; Rep. Todd Porter; Rep. Wes Belter; Rep. George Keiser; Rep. Craig Headland; Rep. Chet Pollert; Rep. Dave Monson; Rep. Chuck Damschen; and Rep. Mike Brandenberg.
Also participating were U.S. BioHankinson's Randy Schneider, president of the North Dakota Ethanol Producers Association; Executive Director of the Northern Canola Growers Barry Coleman; and Kim Christianson, Director of the North Dakota Office of Renewable Energy and Energy Efficiency, N.D. Department of Commerce.
"These initiatives will both expand renewable energy development in North Dakota, and link those new industries with traditional industries to lift all of our resources together," Hoeven said. "We're the sixth largest energy producing and exporting state in the country, and this plan will help build on our position of leadership to create more opportunities for our citizens and achieve greater energy independence for our nation."
"The renewable fuels industry in North Dakota is expanding," Berg said. "This exciting package of incentives and goals highlights our commitment to further enhance its growth, and foster dynamic partnerships between the energy resources of the future and established industries."
"This plan builds on North Dakota's strengths - agriculture and energy - and it helps where the help is most needed: by promoting investments and collaboration," Stenehjem said. "By harnessing all of our energy resources, we are moving the state forward in a steady, balanced and focused way."
Promoting Renewable Energy
Renewable Energy Investment programs - $13.3 million
- A $5 million Biofuels PACE interest buy-down in ethanol, biodiesel facilities; livestock operations and grain storage (HB 1014 and SB 2180) will support a minimum of $25 million, but potentially $750 million of new investment in biofuels
- A $7.3 million ethanol production incentive fund; counter-cyclical support for ethanol plants.
Alternative Energy Development - $7.25 million
- $3 million general fund appropriation, with authority to leverage an additional $17 million for a renewable energy grant fund within the Industrial Commission for projects promoting North Dakota-produced energy, including: biodiesel, biomass, coal, ethanol, geothermal, hydroelectric, hydrogen, natural gas, oil, solar, and wind (SB 2288).
- $2.5 million appropriation for a biomass demonstration project and biomass incentives (HB 1515)
- $200,000 toward the establishment of a hydrogen energy production and fueling station in Fargo. (HB 1458)
- $1 million for biomass and hemp research and education efforts at the NDSU experiment station and extension service. (HB 1020)
- A $550,000 sales tax exemption for materials used to construct a waste heat electric generating facility. (SB 2141)
Renewable Energy Research & Development - $7 million
- A $7 million agriculture greenhouse at NDSU to help develop new sources of raw materials for biofuels, including cellulose and switchgrass; as well as agronomic research on oilseeds and corn to achieve higher biofuels production per acre (HB 1020)
Investment Tax Credits - $15 million
- Investment Tax Credits with the potential to generate investments in 10 renewable energy projects per year. If five projects with $10 million in investments qualify annually, $100 million in projects could be initiated during the biennium. (SB 2081).
- A tradable income tax credit for installation of geothermal, solar or wind energy devices. (HB 1233)
Livestock Incentives (renewable energy byproduct) - $1 million
- A $1 million interest buy-down loan program on new or expanding livestock or dairy operations (HB 1135)
- Up to $250,000 of interest buy-down on loans for each new or expanding livestock or milking operations that use byproducts of biofuels (part of Biofuels PACE) (SB 2180)
- A 30 percent Investment Tax Credit for livestock feeding and milking operations that use biofuels facility byproducts (HB 1027)
Wind - regulatory relief, tax treatment
- A property tax reduction for wind generation units from 3 percent to 1.5 percent of assessed value. (HB 1317)
Partnering Renewables With Traditional Energy Industries
Additional measures leverage renewable and alternative fuels by partnering with traditional energy industries:
Traditional - Renewable Energy Partnerships
- A new Pipeline Authority to assist private industry construct additional capacity to ship crude oil, natural gas, carbon dioxide ethanol, biodiesel and other energy products to market. At current levels of production, North Dakota could realize an additional $230 million by increasing pipeline capacity to larger markets. (HB 1128)
- A strengthened Transmission Authority to encourage new wind farm and coal generation development. Provides additional flexibility for the Authority to build new power transmission lines. (HB 1127)
- New research dollars through Lignite Vision 21 and the Oil and Gas Research Fund to accelerate development of environmentally friendly production of electricity, natural gas, and alternative fuels, like wind, coal-to-liquid, coal gasification and carbon sequestration technologies. (HB 1093)
A Commitment For The Future
Hoeven in his State of the State Address endorsed the national 25X25 Initiative, which is included in HB 1462. The measure sets a goal to derive 25 percent of the nation's energy from renewable sources by the year 2025. To achieve that goal, the Governor and legislators set an additional goal of doubling North Dakota's energy production from all sources by the year 2025.
Currently, North Dakota wind producers are working with power companies to expand transmission capacity for both industries. Similarly, biofuels producers are partnering to use clean coal technology to provide affordable power to biofuels facilities at Blue Flint Ethanol, Spiritwood Ethanol, and Red Trail Energy. Farmers in turn benefit from new markets for corn, canola and soybeans, and ranchers and dairy producers are provided with high quality feed as a byproduct of biofuels production. For example, the ADM biodiesel facility at Velva will use more than 1 million acres of canola annually.
"Biofuels, wind power, Lignite Energy 21 projects, and Oil and Gas Research into clean, environmentally sound technologies - all of these incentives work together to lift our state's economy and reduce our dependence on foreign oil," Hoeven said. "They provide the leverage we need to collaborate and carry us to our goals."
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