POLICY MAKERS EMBRACE ENERGY POLICY, INCENTIVES

The North Dakota Republican Party issued the following news release:

The North Dakota Legislature has passed a broad package of initiatives aimed at maximizing North Dakota's renewable energy resources, stimulating the state's agriculture industry, and enhancing the state's ability to help reduce dependence on foreign oil.

Key initiatives include a new Biomass Energy Center to lead research on biomass production and conversion; a $5 million Biofuels PACE loan program for new biofuels projects; and a $20 million Renewable Energy Fund to foster development of new projects. The Legislature also embraced the ambitious 25X25 initiative, a new nationwide goal that calls for 25 percent of our nation's energy to come from renewable resources by the year 2025.

Policy makers brought together all energy-related sections of North Dakota law into a comprehensive state energy policy located in Chapter 17 of the Century Code. It establishes a number of new incentives to encourage expansion of oil refineries and development of the state's natural gas resources.

"North Dakota is one of the first states in the nation to have a comprehensive energy policy. We have incredible natural energy resources, both renewable and traditional, and we are positioned well to develop these resources," Rep. Todd Porter (R-Mandan) said.

In 2005, the Legislature and Gov. John Hoeven approved a broad package of incentives aimed at stimulating the growth of renewable energy in North Dakota. Since then, over $1 billion of new renewable energy projects has been announced in the state.

"This session builds off our work in the last two sessions and provides a strong framework for development of renewable energy in North Dakota," Sen. Jerry Klein (R-Fessenden) said. "The results of these policy initiatives are evident throughout the state in the over $1 billion of new projects that are in the works, creating news jobs for people, new businesses in rural communities and new in-state markets for farmers."

Sen. Terry Wanzek (R-Jamestown) said the initiatives create economic opportunities for North Dakota farmers to prosper. "The agricultural sector is part of the solution to this country's energy independence," Wanzek said.

The new Biomass Energy Center will be housed at one of the universities and will conduct research and provide education and technical assistance related to biomass production, harvesting, transportation, and conversion. The center will also work to identify and evaluate incentives for cellulosic ethanol production and biomass energy.

The Renewable Energy Fund will be managed by the state Industrial Commission. It includes $3 million of state money to be leveraged with $17 million of grants from the U.S. Department of Energy. A Renewable Energy Council, comprised of representatives from each sector of renewable energy, will advise the Industrial Commission on the use of the funds.

The law allows the Industrial Commission to approve grants, make loans and provide other forms of financial assistance to foster the development of wind, biofuels, biomass, solar, hydroelectric, geothermal, and hydrogen. Any financial assistance from the fund must be matched on a dollar-for-dollar basis.

The Biofuels Partnership in Assisting Community Expansion (PACE) program will be managed by the Bank of North Dakota and will offer low-interest loans for the development of biofuels projects, such as ethanol and biodiesel, and for expanding dairy and other livestock-feeding operations.

The 25x25 initiative states that the United States should provide from renewable resources not less than 25 percent of the total energy consumed in the United States and continue to produce safe, abundant, and affordable food, feed, and fiber. As used in this initiative, renewable energy includes biofuels, solar, wind, hydropower, geothermal, carbon recycling, carbon sequestration, use of waste heat, recycling, low-emission technologies that create or use hydrogen, and energy efficiency initiatives.

The 2007 Legislature also approved measures to improve the state's Transmission Authority. Lawmakers established the Transmission Authority in the 2005 session in order to help stimulate construction of additional transmission lines in North Dakota, which are necessary to deliver electricity throughout the state and to out-of-state customers.

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