News Releases for January 2002
January 10, 2002
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Hoeven Directs State Fleet To Use Ethanol Blended Fuel
BISMARCK, N.D. - Governor John Hoeven today announced that he has directed the state Department of Transportation to use a 10-percent ethanol-blended fuel in the state’s 2,300-vehicle fleet beginning next week.
According to Hoeven, the move highlights the importance of ethanol as an environmentally friendly, renewable energy resource that will benefit North Dakota’s farmers and contribute to the state’s comprehensive, multi-source energy strategy.
North Dakota already has two ethanol plants, Hoeven said, and more are planned. Since July, the Agricultural Products Utilization Commission, under the state Department of Commerce, has provided two grants totaling $168,000 to groups working to build another ethanol plant in North Dakota.
“Ethanol is a good targeted industry for North Dakota,” Hoeven said. “Production of ethanol-based fuel creates new jobs, helps our farmers add value to their crop and contributes to our overall plan to develop all of our state’s energy resources.”
The plan calls for the state to buy about 1.2 million gallons of 10 percent ethanol-blend a year, which is the state’s annual fuel consumption for the fleet. The additional cost to the state will be $71,800 a year, funded by a U.S. Department of Energy grant for alternative fuel development.
Hoeven has long endorsed expansion of the ethanol industry in the state, citing its economic potential and its environmentally friendly properties. The Governor’s executive budget last session increased ethanol production incentives from $1.5 million to $2.5 million per biennium, and together with the Legislature, Hoeven created a 30 percent income tax credit for producers who invest in value-added agricultural ventures.
In a related matter, Hoeven was recently voted vice-chair of the Governors’ Ethanol Coalition. The organization of 26 states and four countries is devoted to increasing the use of ethanol-based fuels, decreasing the nation's dependence on imported energy resources and improving the environment and stimulating the national economy. Hoeven will assume the chairmanship of the organization in 2003.
“In North Dakota we want to explore all avenues available to us for developing renewable energy resources and promoting value-added agriculture,” Hoeven said.
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