Democrats propose state bank profits for renewable energy
FARGO, N.D. - Nov 11 (The Associated Press)
Democratic state lawmakers want to use money from the Bank of North Dakota for ethanol, biodiesel and wind energy projects. Republicans say the plan is unrealistic.
"We can't keep using the profits of the bank to keep the lights on at the Capitol," Heitkamp said at a press conference on Wednesday. "We need to take those profits and invest them in North Dakota.
"And as the governor made perfectly clear throughout the whole last year, North Dakota's economy and its ending fund balance are strong," he said. "If not now, when?"
While the state's financial outlook is good, the budget already is dedicated to other programs, said Lance Gaebe, a farm policy adviser to Gov. John Hoeven.
"The 20 million bucks is going to be really, really tough," Gaebe said. "I don't know how it's possible, frankly. It's a pretty dramatic number."
The proposed renewable energy fund would be supported each year with either 30 percent of the bank profits or $20 million, whichever is less. That would allow breathing room if profits slide, Heitkamp said.
That money should be used for other programs, said House Majority Leader Rick Berg, R-Fargo.
"That is really taking $20 million out of education funding, human services funding ... really high priorities that this state has," Berg said.
Using bank profits for the Democrats' plan makes more sense than using it for ordinary affairs of government, said Agriculture Commissioner Roger Johnson, a member of the commission that serves as board of directors for the bank.
"I really think the bank was created ... for the purpose of promoting commerce and industry and agriculture," Johnson said. "I think this is entirely keeping with the original philosophy of those who built the bank and all of us who have supported it for many years."
Gulleson said the renewable energy commission would be similar to the Agricultural Products Utilization Commission, which provides grants to developers of North Dakota farm products.
"It seems to me that this commission is creating another bureaucratic layer," Gaebe said.
Berg said Democrats should have brought up the plan earlier this week when legislative leaders met in Bismarck.
"To roll out a press conference now without including or even discussing it with any of the Republican leadership, comes off as very, very political," Berg said.
The plan would provide tax breaks people who invest in biodiesel equipment, fuel cell powered vehicles and such renewable energy projects as ethanol or biodiesel plants. It also would allow income tax credits for people who use ethanol.
Many of the ideas are redundant, Gaebe said. The state already offers investment tax credits for value-added projects and an ethanol incentive bill was passed in the last session, he said.
"We agree with expanding renewable fuels, but some of this is already in place," Gaebe said.
The plan would require dealers who have more than one gasoline pump to offer a 10 percent ethanol blend on one of the pumps. That decision should rest with the retailers, Gaebe said.
"When customers ask for it, the marketers or retailers will make it available," he said.
North Dakota is lagging behind other states in renewable fuel production and it's never too early to start the discussion, the Democrats said.
"The blueprint that we're sitting here looking at may not be the exact replica of what we're going to end with in the session," Heitkamp said. "But this is a wonderful blueprint and we can support everything in there."
For far more extensive news on the energy/power visit: http://www.energycentral.com .
Copyright © 1996-2004 by CyberTech, Inc. All rights reserved.