Iowa Governor Tom Vilsack (R) has issued an executive order that sets up a renewable energy purchasing requirement for state agencies of at least 10% of their electricity needs by 2010. The order also requires state agencies to reduce their electricity use in buildings by 15% by 2010 relative to their use in 2000. “When we use renewable fuels, we create economic opportunities for the farmers of our state, we return dollars to our local economies and strengthen communities,” said Governor Vilsack. “Renewable fuels also give families an opportunity to stretch their energy dollars because they are less expensive.”
The order also contains requirements on converting the state’s transportation fleet either to hybrid-electric vehicles or vehicles running on alternative fuels by 2010 and a requirement that bulk diesel fuel purchased by state agencies must contain a certain percentage of renewable fuel (such as biodiesel).
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North Dakota Governor John Hoeven (R) 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 ethanol production incentive 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 agriculture producers additional markets for their products. It will also reduce our dependence on foreign oil which will create a stronger America.”
The incentives that were designed to benefit wind power are the following:
A North Dakota Transmission Authority, which will promote new – and substantial – investment in transmission lines in North Dakota. (HB1169);
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;
A provision to raise the jurisdictional threshold for siting electrical power generation facilities from 50 to 100 MW, 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);
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; and
A reduction in the assessed value of a wind turbine electric generation unit from 1.5-3% to promote the commencement of construction on wind facilities prior to July 1, 2006.
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