The United States imports nearly 60 percent of its petroleum, with much of it coming from unstable regions of the world. Concerns about supply disruptions and ever-increasing global demand for oil mean higher prices at the pump. These high energy prices are taking an increasing toll on hard-working North Dakotans.
Keeping Fuel Affordable
2008 Farm Bill
Fiscal Year 2009 Budget
Promoting North Dakota's Energy Resources:
Increasing Biofuels Production
Promoting Clean Coal Technology
Greater Use of Wind Power
Addressing the Challenge of Global Climate Change
Ensuring Affordable and Reliable
Electricity for North Dakota
Keeping Fuel Affordable
One of Senator Conrad's top priorities is keeping fuel prices affordable. In the summer of 2008, gasoline prices increased dramatically, putting a dent in the budgets of nearly all North Dakotans.
In response, Senator Conrad took a lead role in organizing a bipartisan group of ten senators to find a solution to skyrocketing energy prices. On August 1, the bipartisan group announced the New Energy Reform Act of 2008, or the "New Era" plan.
The New Era proposal contains three main components:
- an "Apollo Project"-like effort to transition vehicles to non-petroleum based fuels;
- a robust federal commitment to conservation and energy efficiency;
- expanding domestic energy production, including increased oil and gas drilling.
2008 Farm Bill
As a lead negotiator of the 2008 Food, Conservation, and Energy Act (the Farm Bill), Senator Conrad strongly supported the important energy provisions of this legislation. Overall, the Farm Bill provides more than $1.5 billion in new energy incentives to reduce our dependence on foreign energy and spur the development of a home-grown energy industry in North Dakota. This includes tax incentives to advance production of cellulosic ethanol, which can be made from wood or the prairie grasses native to North Dakota; and funding to assist farmers in establishing and harvesting renewable biomass crops.
Fiscal Year 2009 Budget
As Chairman of the Senate Budget Committee, Senator Conrad worked hard to pass a Budget Resolution for Fiscal Year 2009 that encourages investment in renewable energy, clean fuel technology, and energy efficiency. These investments will create new jobs, reduce our dependence on foreign energy, strengthen the economy, and ease high energy costs for consumers.
The Senate passed the FY 2009 Budget Resolution on June 4, and the House of Representatives passed the Budget Resolution on June 5. Read more about the Budget Resolution here.
Through these and other initiatives, Senator Conrad is fighting for North Dakota's energy interests, including:
Increasing Biofuels Production
Promoting Clean Coal Technology
Greater Use of Wind Power
Addressing the Challenge of Global Climate Change
Ensuring Affordable and Reliable Electricity for North Dakota
Promoting North Dakota's Energy Resources
Senator Conrad supports increasing our domestic energy supply from North Dakota's vast resources. In particular, North Dakota is unmatched in its wind energy potential, features large coal reserves, and could produce large quantities of biomass for conversion into electricity or automotive fuel. More recently, studies of the Bakken Formation estimate that western North Dakota harbors as much as 4.3 billion barrels of recoverable oil, adding even more to North Dakota's portfolio of energy resources.
Increasing Biofuels Production
Biofuels carry great potential to reduce our nation's dependence on foreign oil. These renewable fuels also offer tremendous potential for North Dakota, which is home to many fuel-producing crops, including canola, switchgrass, and soybeans. Senator Conrad has supported legislation to advance the production and use of biofuels, such as cellulosic ethanol and biodiesel.
For example, he voted for the Energy Independence and Security Act, which requires the use of 36 billion gallons of renewable biofuels by 2022, 21 billion gallons of which must come from advanced biofuels such as cellulosic ethanol. Also, Senator Conrad was a lead negotiator for the 2008 Farm Bill, which provides more than $1.5 billion to promote the use of cellulosic ethanol and other renewable sources of energy. Finally, the New Era proposal, which Senator Conrad took a lead role in organizing, provides $2.5 billion in funding for research and development on next generation biofuels and infrastructure.
Promoting Clean Coal Technology
The earth underneath North Dakota contains enough lignite coal to generate electricity for more than 800 years. North Dakota's lignite coal industry has created some of the best-paying jobs in North Dakota, improving the quality of life in our home state. Senator Conrad is a champion of clean coal technology, which improves power plant efficiency, reduces emissions, and preserves North Dakota's pristine air quality.
The New Era proposal promotes coal-to-liquid (CTL) technology by providing grants and loan guarantees for the development of CTL fuel plants with limited carbon emissions. Senator Conrad also introduced the Carbon Reduction Technology Bridge Act of 2008, which would expand the use of clean coal technology in North Dakota and across the country. This legislation would create tax incentives to encourage development of clean coal technology, which would significantly reduce carbon emissions.
Greater Use of Wind Power
North Dakota is ranked first in the nation in wind-power production potential. Senator Conrad has been a leader in promoting and passing the wind energy production tax credit, and creating opportunities for farmers and ranchers to develop clean, renewable wind energy. This tax credit is crucial for the wind energy industry to compete with other energy sources. The New Era proposal would extend and expand tax credits for wind and other renewable sources of energy.
Addressing the Challenge of Global Climate Change
The 111th Congress, which convened on January 6, is expected to debate comprehensive climate change legislation. As this debate moves forward, Senator Conrad will be working for a solution that carefully balances the need for action with the concerns about electricity rates for North Dakotans and the impact on our broader economy.
Ensuring a diverse energy supply from clean, renewable sources - including those that are abundant in North Dakota, like wind and biomass - is critical to addressing the challenge of global climate change. It is also very important to develop advanced technologies to capture and store carbon dioxide produced from North Dakota's substantial coal resources. Senator Conrad has consistently promoted these efforts as part of comprehensive energy legislation.
Conservation and Energy Efficiency:
Senator Conrad believes we need a national energy policy that balances domestic energy production with increased conservation, efficiency, and development of alternative energy sources. Greater efficiency for our nation's power plants, automobiles, and appliances saves money for all Americans. Greater efficiency also conserves our natural resources for future generations and makes America less dependent on foreign countries to meet our energy needs.
Senator Conrad has consistently supported tax incentives to reward energy efficiency. In 2007, Senator Conrad supported the Energy Independence and Security Act to promote energy efficient automobiles, lighting, and government buildings.
The New Era proposal includes a significant federal commitment to promoting conservation and efficiency. This includes extending renewable energy, carbon mitigation, and energy conservation and efficiency tax incentives, new tax credits to purchase high fuel efficient vehicles; research and development into new materials and other innovations to improve vehicle fuel efficiency; and funding for research on next-generation biofuels.
Ensuring Affordable and Reliable Electricity for North Dakota:
Improving our nation's power grid will mean that all Americans have access to affordable and reliable electricity. Improving the transmission grid could make North Dakota the nation's powerhouse by improving the ability of energy producers to export electricity generated from resources like wind and coal to distant markets.
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