I was in Bismarck, ND this week talking about community wind and found that there continues to be a lot of interest in ND. That's not new, but the various groups working on renewables in the state have organized and found allies in the legislature to bring forth some strong policy proposals this year. Terry from ND SEED sent me some information on bills currently pending:

House Bill No. 1308 has been introduced in the currrent 2005 ND legislative session. HB 1308 will create a Renewable Energy Commission (ND), Renewable Energy Trust Fund (ND), and at least a 10% state (ND) purchase of wind energy (preference of wind energy produced within the state). This bill has can be viewed at
http://www.state.nd.us/lr/assembly/59-2005/bill-text/FAUF0200.pdf.

For updates on ND legislation, visit www.ndseed.org.

Here's an update on Wind energy legislation introduced in ND so far from Terry Schaunaman.

2005 ND Wind Legislation

HOUSE BILLS
1. HB 1169, A Bill for an Act to provide for the North Dakota transmission authority, provide for the planning, constructing, owning, financing, maintaining, and operating of electric transmission facilities and related infrastructure, and to authorize issuance of revenue bonds; and to amend and reenact an Administrative Agencies Practice Act exemption for the transmission authority.

http://www.state.nd.us/lr/assembly/59-2005/bill-actions/ba1169.html

** House Industry, Business, and Labor Committee hearing, 8:00 AM,

January 26

2. HB 1283, A Bill for an Act to amend and reenact siting of energy conversion facilities.

** House Natural Resources Committee hearing, 9:30 AM, January 20, 2005

http://www.state.nd.us/lr/assembly/59-2005/bill-actions/ba1283.html

3. HB 1308, A Bill for an Act to establish a renewable energy commission and trust fund; to create and enact a state purchasing of energy and establishment of the renewable energy and conservation office within the division of community services, to provide an appropriation, to provide a continuing appropriation, and to provide an effective date.

** House Transportation Committee hearing, 9:30 AM, January 28.

http://www.state.nd.us/lr/assembly/59-2005/bill-actions/ba1308.html

4. HB 1314, A Bill to create and enact a renewable electricity and recycled energy credit trading and tracking system by the public service commission.

http://www.state.nd.us/lr/assembly/59-2005/bill-actions/ba1314.html

** House Industry, Business, and Labor Committee hearing, 9:00 AM,

January 26.

5. HB 1385, A Bill to amend and reenact the pricing of electricity generated from wind resources.

http://www.state.nd.us/lr/assembly/59-2005/bill-actions/ba1385.html

** House Industry, Business, and Labor Committee hearing, 9:00 AM,

January 26.

6. HB 1481, A Bill to create and enact a credit for installation of geothermal, solar, or wind energy devices under the simplified method of computing income tax and to provide an effective date.

** House Finance and Taxation Committee hearing, 10:45 AM, January 24.

http://www.state.nd.us/lr/assembly/59-2005/bill-actions/ba1481.html

7. HB 1496, A Bill to create and enact a sales and use tax exemption for sales of hydrogen and production, storage, and transportation equipment used by a facility engaged in hydrogen generation and a special fuels tax exemption for the sale of hydrogen, to provide an effective date, and provide an expiration date.

** House Finance and Taxation Committee hearing, 10:30 AM, January 26.

http://www.state.nd.us/lr/assembly/59-2005/bill-actions/ba1496.html



SENATE BILLS

1. SB 2229, A Bill to establish a renewable energy development commission; to create a new section relating to the ethanol content of gasoline, state purchasing of energy, and corporate and individual income tax credits for renewable energy use; to amend and reenact the section relating to the ethanol content of gasoline; to provide a transfer; to provide a continuing appropriation, and to provide an effective date.

http://www.state.nd.us/lr/assembly/59-2005/bill-actions/ba2229.html

** Referred to Senate Finance and Taxation Committee

2. SB 2238, A Bill to create and enact a credit against rural electric cooperative gross receipts taxes and a credit against corporate income taxes for electricity purchased from school districts that generate electricity using wind turbines and to provide an effective date.

** Senate Finance and Taxation Committee hearing, 9:00 AM, January 24.

http://www.state.nd.us/lr/assembly/59-2005/bill-actions/ba2238.html

3. SB 2239, A Bill to create and enact wind option agreements, easements, and leases.

http://www.state.nd.us/lr/assembly/59-2005/bill-actions/ba2239.html

** Senate Judiciary Committee hearing, 9:00 AM, January 26.

Here's the renewable energy legislation actually signed into law this year in ND. Not nearly as ambitious as some of the proposals.

Hoeven Signs Broad New Renewable Energy Legislation
New Renewable Energy Office To Benefit Wind, Biodiesel, Ethanol And Transmission
BISMARCK, N.D. - Gov. John Hoeven today signed a comprehensive package of legislation into law designed to accelerate production of wind energy and biofuels, as well as to enhance the transmission infrastructure necessary to get both renewable and conventional energy to market. The plan also builds on the Governor’s Counter-cyclical Ethanol Production Incentive, passed last legislative session, by making $4.6 million available for new and existing plants in the next biennium.

Hoeven was joined at the bill signing ceremony by House Majority Leader Rick Berg and Rep. Wes Belter, who led the effort to pass the bills in the House, and Sens. Jerry Klein and Rich Wardner, who spearheaded the effort in the Senate. Other sponsors of the legislation also attended.

In addition, new legislation will create an Office of Renewable Energy within the Division of Community Services at the North Dakota Commerce Department. The new office will assist in the development of renewable energy within the state and promote the conservation of energy and the wise use of energy resources in both the public and private sectors. The office will administer the programs and advance information pertaining to the state and federal incentives available for the full range of renewable energy sources.

“Everyone involved with designing energy legislation this session can be proud today of the work we’ve done to expand renewable energy production in North Dakota,” Hoeven said. “We have now established a comprehensive program to give the renewable energy sector a significant boost in North Dakota.”

House Majority Leader Rick Berg said, “I’m really excited about these initiatives. They create incentives for private investment in renewable energy and give our ag producers additional markets for their products. It will also reduce our dependence on foreign oil which will create a stronger America.”

A range of new energy incentives will benefit each renewable energy sector:

Wind
o A North Dakota Transmission Authority, which will promote new - and substantial - investment in transmission lines in North Dakota. (HB1169)

o A provision to allow the trading of premium renewable energy credits to plants in other states, which promotes the development of wind energy in North Dakota. (HB 1314)

o A provision to raise the jurisdictional threshold for siting electrical power generation facilities from 50 to 100 thousand kilowatts, reducing the regulatory burden for wind energy companies to site plants in North Dakota. Below the threshold, the company doesn’t require siting approval from the PSC. (HB1283)

o A provision to reduce the maximum siting application fee for a power conversion facility or a transmission corridor from $150,000 to $100,000, and to return to the applicant any portion of the fee unspent by the state in the siting process. (SB2133)

o A reduction in the assessed value of a wind turbine electric generation unit from 3 percent to 1.5 percent to promote the commencement of construction on wind facilities prior to July 1, 2006. (SB2018) (PENDING)

Ethanol
o A continuing appropriation for the Governor’s Counter-cyclical Ethanol Production Incentive, which makes available up to $4.6 million in the next biennium, including $1.35 million for expansion of existing ethanol plants.

o A 20-cent-a-gallon tax incentive for E85 at the pump, which must be passed on to the consumer (up to 1.2 million gallons). (HB1478)

o A 30 percent investment tax credit for all investors in ethanol or biodiesel production facilities (will include Red Trail investors). (SB2281)

Biodiesel
o A $1.2 million Biodiesel PACE program, which will provide up to $650,000 in interest buy-down for a biodiesel plant, by providing $400,000 combined with $250,000 in regular PACE. (SB 2217)

o An income tax credit of 10 percent per year for up to 5 years, or 50 percent of direct costs for biodiesel sales equipment, such as pumps, hoses and tanks purchased by retailers. (SB 2217)

o An income tax credit for any fuel supplier that blends biodiesel fuel to the ratio of 5 percent, or B5. The credit equals five cents per gallon of fuel blended. (SB 2217)

o A sales tax exemption on the sale of new equipment to any facility that will enable the facility to sell diesel fuel containing at least two percent biodiesel fuel. (SB 2217)

Hydrogen
o A sales tax exemption on hydrogen to power an internal combustion engine or fuel cell. (HB1496)

“The legislation we have just signed will create new synergies and new dynamics in North Dakota’s energy markets,” Hoeven said. “Wind and coal, ethanol and coal, biodiesel and oil and gas - we are now putting in place a comprehensive strategy that creates a strong and effective role for all of North Dakota’s diverse energy products.”