Conrad Offers Bill to Spur Wind Energy Development Special Incentives for Farmers, Ranchers January 10, 2002 Grand Forks - Senator Kent Conrad today announced a package of legislative initiatives to encourage wind energy development, and take advantage of the near-limitless potential to produce clean, abundant power from the winds that sweep across the North Dakota prairies. Conrad's plan includes tax credits, grants, no-interest loans and additional funding for research and development of wind energy. He announced the initiative at the 2002 Marketplace of Ideas in Grand Forks, where two wind-tower manufacturing companies LM GlasFiber of Grand Forks and DMI of West Fargo, staged exhibits. "Chicago calls itself the windy city, but up here, we know better. Every city in North Dakota is a windy city, and that has the potential to pay big economic benefits. North Dakota has the potential to produce more than 138,000 megawatts of energy from wind every year, the highest production potential in the nation. Capitalizing on this potential could one day provide a whole new energy boom for our state - a boom in wind energy," Conrad said. "We need the extension of the production tax credit, it's crucial to the industry as a whole, and I appreciate Senator Conrad's leadership in working to see that it happens," said Craig Hoiseth, President and CEO of LM Glasfiber. "Extending the credit, and passing this proposal will level the playing field between renewable energy and fossil fuel industries." "Extending the production tax credit is crucial to the livelihood of the industry and will have a huge impact on the North Dakota economy," said Chuck Savageau, DMI's Business Development Manager. "We challenge Congress to find the leadership to get this done." Conrad's plan would extend the current wind energy tax credit for five years. The proposal provides a credit of 1.5 cents per kilowatt hour, and would encourage energy companies to invest in North Dakota wind power generation. It would also authorize grants of up to $200,000 and low-interest loans of up to $10 million for farmers and ranchers to build wind-power production facilities on their land. "We've got great potential but we face hurdles of cost competitiveness, transmission problems, and more. The best place to start is to make it easy and cost-effective to invest in wind energy, and let the industry and investment grow," said Conrad. LM Glasfiber of Grand Forks manufactures the blades used on the wind towers and employs over 100 people in Grand Forks. DMI Industries in West Fargo is one of the major producers of wind towers in the country, producing towers that are over 70 meters and weighing approximately 230,000 pounds. The bill provides $500 million over the next four years for enhanced wind energy research and development. The legislation calls for the Department of Energy to partner with the wind energy industry to develop efficient, effective, and quieter wind turbines that are cost-competitive with current fossil fuel technology. Conrad's proposal would also provide funding for research into using wind energy to provide electricity to rural areas. Note: A fact sheet on the legislation is below. Senator Kent Conrad's Wind Energy Promotion Plan Fact Sheet Conrad's proposal is designed to encourage and expedite the development of North Dakota's immense wind energy potential. According to studies, North Dakota has the potential to produce more than 138,000 megawatts of energy from wind annually, the highest production potential in the nation. The plan provides several wide-ranging incentives for wind energy development in North Dakota. It would: • Extend the wind energy tax credit for five years. The extension would provide a 1.5 cents per kilowatt hour credit (adjusted for inflation) for wind-generated electricity, available for 10 years after the initiation of a project. The credit expired in December. • Authorize $100 million over five years for grants and loans to farmers and ranchers to develop wind energy. The plan would make federal funding available for grants of up to $200,000 and low-interest loans of up to $10 million for agricultural producers to build wind-power on their land. • Allow farmers participating in the conservation reserve program (CRP) to construct wind turbines on their CRP - enrolled land. This will open nearly three million acres of land in North Dakota to wind energy production. • Provide for more than $500 million over four years for enhanced wind energy research and development. The Department of Energy would partner with the wind energy industry to develop efficient, effective, and quieter wind turbines that are cost-competitive with current fossil fuel technology. • Provide funding for research into using wind energy to provide electricity to rural areas. • Authorize $100 million for additional research and development of wind energy. • Require the Secretary of the Interior to conduct a feasibility study for a demonstration project that would use wind energy generated on Indian lands and hydro power generated by the Garrison Dam to supply power to the Western Area Power Administration (WAPA).