U.S. Department of Energy - Energy Efficiency and Renewable Energy
Federal Energy Management Program
North Dakota Adopts Incentives for Wind, Hydrogen, Alternative Fuels
April 27, 2005
North Dakota Governor John Hoeven signed several bills into law on
Earth Day to accelerate wind power, hydrogen, and alternative fuel
technologies in the state. The wind energy provisions reduce the
siting application fees, lessen the regulatory burden for siting wind
plants, allow the sale of renewable energy credits to other states,
and promote new investments in transmission lines. A pending bill will
also cut in half the assessed value of a wind plant for tax purposes.
One bill also creates a sales tax exemption on hydrogen used to power
either an internal combustion engine or a fuel cell.
The new legislation will encourage the production and sale of alternative fuels throughout North Dakota.
Credit: Warren Gretz
Several bills relate to ethanol and biodiesel production. The ethanol-related bills provide $3.25 million in incentives for new and existing
ethanol plants in the state, $1.35 million in incentives to expand
existing ethanol plants, and a 20-cent-per-gallon tax incentive for
retail sales of E85 (a blend of 85 percent ethanol and 15 percent
gasoline), an incentive that must be passed on to the consumer. The
biodiesel provisions include $1.2 million to buy down interest on new
biodiesel production plants, income tax credits for fuel suppliers and
retailers, and a sales tax exemption for equipment that allows a facility
to sell biodiesel blends. New ethanol and biodiesel production plants
will also earn a 30 percent investment tax credit.
In addition, the new legislation creates 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.
See the governor's press release.