Senator Conrads BOLD Energy Act
Fact Sheet
Senator Kent Conrad introduced broad, comprehensive energy legislation today
designed to reduce our dependence on foreign oil and promote domestic energy
sources, particularly biodiesel, ethanol and wind.
The name of the bill is Breaking Our Long-term Dependence,
or BOLD, Energy Act.
- The BOLD Energy Act would require ethanol use in the United States to
increase from 4.7 billion gallons in 2007 to 30 billion gallons by 2025.
This requirement would provide a bigger market for ethanol and bring more
economic development to farm states like North Dakota. North Dakotas
ethanol production capacity has enormous potential: the state is producing
35 million gallons annually, compared to 350 million gallons produced annually
in Minnesota, South Dakota and Nebraska.
- Construction of just one average-sized ethanol plant is capable of
supporting as many as 835 jobs in local economies.
- The BOLD Energy Act would establish a new biodiesel and alternative diesel
standard of 250 million gallons in 2008, increasing to two billion gallons
in 2015, creating greater demand for biodiesel as a transportation fuel
– and greater demand for biodiesel manufacturing plants. Biodiesel
plants proposed for North Dakota could produce as much as 82 million gallons
annually, creating new markets for farmers and new jobs at the plants.
- The BOLD Act establishes a $500 million grant program to fund the development
of coal-to-liquid fuel technology. This level of funding would fund the
construction of 10 coal-to-liquid fuel plants capable of reducing our dependence
on foreign oil by 219 million barrels a year by using domestic coal to make
vehicle fuel. North Dakotas lignite coal industry is among the
states highest-paying industries; annually, lignite creates $1.7
billion in economic activity in North Dakota and $75 million in tax revenue.
- The U.S. Air Force and other companies have expressed interest in
using North Dakota lignite to create fuel for jets and other vehicles.
This grant program will help bring significant economic development
to North Dakota.
- The BOLD Energy Act would extend a tax credit for wind energy production
for five years. It would also give state agencies greater freedom to finance
upgrades to the nations electricity grid – enabling North Dakota
energy producers to move more power to market. North Dakota has annual
wind energy potential of 138,400 megawatts, number one in the country, but
existing wind-energy facilities produce only 97.79 megawatts. The extension
of this tax credit will extend North Dakotas current wind energy
development boom.
- Recognizing the need for conservation, the BOLD Act encourages the manufacture
and purchase of fuel-efficient and flexible-fuel vehicles. Purchasers of
fuel-efficient vehicles would quality for rebates of up to $2,500. Automakers
would be required to install advanced technologies, including flexible-fuel
technology, by 2017. They would be eligible for either a 35 percent tax
credit or retiree health care grants to make this transition.
- The BOLD Act would also help increase domestic oil production by increasing
tax credits for oil companies that use carbon dioxide to extract more oil
from aging oil fields. This credit could be especially useful for new oil
exploration in North Dakota, which ranks 8th in oil reserves out of all
U.S. states. The bill also authorizes responsible development of natural
gas in the Gulf of Mexico to help increase domestic supply and keep prices
lower for consumers.
- The BOLD Act has been endorsed by the North Dakota Farmers Union,
North Dakota Biodiesel Taskforce, the Midwest Electric Consumers Association
and Basin Electric. The bill has also won praise from North Dakotas
Lignite Energy Council, Missouri River Energy Services, and DMI Industries
of Fargo, a manufacturer of wind turbines.
