Press Releases
June 28, 2005
National Energy Bill Passes Senate
Conrad Secures a Dozen Provisions Benefiting ND, Creating Jobs, Boosting Industry
Washington — Senator Kent Conrad cast his vote today for a national energy bill that takes steps toward greater energy independence for the United States and promotes substantial investment in North Dakota's energy sector.
"I'm committed to developing a national plan for greater energy independence -- a plan that makes North Dakota an energy leader," Senator Conrad said. "This bill lays the groundwork for that goal. But still, bolder steps must be taken to make the U.S. more energy independent."
The comprehensive legislation passed the Senate by a vote of 85 to 12. It included many energy tax provisions authored by Senator Conrad that would increase the development of North Dakota's energy industry. For example, Senator Conrad included incentives in the bill that will increase the use of renewable energy, make North Dakota's coal-burning plants cleaner, make it easier for utilities to invest in needed transmission lines, and promote greater efficiency for existing oil wells.
A senior member of the Senate Finance Committee, Senator Conrad crafted 12 energy tax incentives that were included in the legislation, including:
Three Year Extension of the Renewable Energy Production Tax Credit: North Dakota is ranked number one in the nation in potential wind-power production. One of Senator Conrad's most important energy policy goals is to develop North Dakota's potential for this cheap, clean, natural source of energy. To that end, Senator Conrad secured a three-year extension of the renewable energy production tax credit and a mandate that electric utilities produce 10 percent of their power from renewable sources by 2020.
Clean Coal Tax Credits: The earth underneath North Dakota contains enough lignite coal to generate electricity for more than 800 years. Senator Conrad included a provision in the Energy Bill that provides tax credits for power utility companies that use clean-coal technology. Senator Conrad's measure would strengthen North Dakota's lignite coal sector, an industry that has created some of the best-paying jobs in the state. In addition, the Energy Bill includes a loan guarantee to build a "zero emissions" lignite-fired power plant in North Dakota.
Ethanol and Biodiesel Tax Credits: Ethanol and biodiesel carry tremendous potential to reduce our nation's dependence on foreign oil. They also offer tremendous economic potential for North Dakota, which is home to many fuel-producing crops. Senator Conrad secured an assortment of tax credits in the Energy Bill to encourage the production of these renewable fuels.
In another provision, Senator Conrad created a credit for ethanol plants that install pollution-control equipment, giving North Dakota's ethanol industry greater incentive to expand while still meeting federal air standards. Senator Conrad also won a commitment to clarify an Internal Revenue Service regulation in order to make North Dakota biodiesel blenders eligible for the biodiesel tax credit.
Senator Conrad also helped secure a Renewable Fuels Standard. This amendment would require the use of 8 billion gallons of renewable fuels, like biodiesel and ethanol, by 2012. The amendment would increase demand for many of North Dakota's fuel-producing crops.
Expanded Existing Ethanol Tax Credit: Senator Conrad expanded an existing tax credit for ethanol to include larger-scale production facilities. As a result, additional North Dakota ethanol-manufacturing plants will be eligible for the credit -- encouraging the production of this renewable energy source.
Coal-to-Liquid Fuel Federal Loan Guarantees: As the price of oil increases, coal-to-liquid fuel is becoming a more attractive option in coal-rich states like North Dakota. Senator Conrad secured a provision in the Energy Bill to ensure that any future facilities that produce transportation fuel from coal in North Dakota will qualify for federal loan guarantees.
Renewable Energy & Clean Coal Credit Bonds for Co-Ops and Public Power Plants: This Conrad provision provides new sources of investment capital and financing to membership co-ops and public power systems, allowing them to pay the costs of upgrades, maintenance and service expansion.
Enhanced Oil Recovery Tax Credit: Concerned about the impact of high fuel prices, Senator Conrad drafted a provision to increase the tax credit for the use of carbon dioxide to recover more oil from existing wells. The measure could increase oil production and lead to decreased carbon dioxide emissions from North Dakota power plants. In addition, the Energy Bill includes $30 million to develop 10 demonstration sites in the Williston basin to test the use of carbon dioxide in increasing oil well production.
Investment in North Dakota's Transmission Capacity: Senator Conrad has taken action to make sure that rural electric consumers continue to receive cheap, reliable power. He secured a tax incentive to help utilities invest in electricity transmission and pollution control. This will foster a growing demand for North Dakota's energy resources and help keep our air clean.
"We are facing serious problems that threaten America's energy independence," Senator Conrad said. "While this bill does not solve the entire problem, it is a first step in increasing the development of domestic sources of energy, many of which we have to offer in North Dakota."
