DORGAN BACKS RENEWABLE ENERGY INCENTIVES; SAYS NORTH DAKOTA WILL BENEFIT

Senator says legislation will help boost homegrown energy and reduce our dependence on foreign oil

Tuesday, September 23, 2008

CONTACT: Justin Kitsch
or  Brenden Timpe
PHONE: 202-224-2551

(WASHINGTON, D.C.) – U.S. Senator Byron Dorgan (D-ND) backed legislation approved by the Senate to extend tax incentives for renewable energy and energy efficiency, saying North Dakota is in a position to play a major role in our nation’s renewable energy efforts.

“This bill was absolutely critical for the future of our nation’s energy policy,” said Dorgan. “This country is moving in the direction of alternative, clean energy technology, and providing incentives for businesses to invest in new technology is critical to the future of this industry.”

The legislation, called the Energy Improvement and Extension Act of 2008, extends the renewable production tax credit for wind and refined coal for one year, and extends the tax credit for geothermal, biomass, and other eligible sources, including new biomass facilities, for two years. The investment tax credit for solar energy was extended for eight years. The bill authorizes $800 million of new clean renewable energy bonds, so public power providers as well as state, local and tribal governments and electric cooperatives can raise capital to finance facilities that produce electricity from renewable sources. It also extends tax credits for energy-efficiency improvements for homes and commercial buildings, including appliances and smart electricity meters.

“With all of the amazing research and development going on in the Red River Valley Research Corridor, the Great Plains Energy Corridor, and throughout North Dakota right now with respect to alternative energy, the state will stand to benefit greatly from the passage of this bill,” said Dorgan. “In North Dakota, we are leading the way with respect to developing new forms of energy, and this bill is going to give us and the rest of the country a huge boost in our efforts to truly transform the way this country looks at energy.”

The bill contains provisions that will move our nation away from total dependence on petroleum in our transportation sector. The bill creates a new credit for plug-in electric vehicles, ranging from $2,500 to $7,500 for passenger vehicles and light trucks. It extends the one dollar per gallon production tax credit for biodiesel and the 10 cent per gallon credit for small biodiesel producers through 2009. In addition, the bill further extends and expands the credit for alternative fuel infrastructure investments, such as the installation of E85, compressed natural gas, and hydrogen pumps. All of these provisions will boost investment and production of critical new energy technologies, says Dorgan

The bill also contains $1.5 billion in new tax credits for the creation of advanced coal electricity projects and certain coal gasification projects, and provides a credit for CO2 that has been captured and transported from industrial sources for either permanent geologic storage or use in enhanced oil recovery.

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