New Incentives Proposed for ND Biodiesel Plants

John Davis

Some biodiesel plants in North Dakota could be enjoying new operations incentives, if a proposed bill passes that state’s legislature and gains the governor’s signature.

The Forum of Fargo-Moorhead reports
the measure, currently before the state legislature’s Energy Development and Transmission Committee, would give up to $1.5 million in incentives annually:

The amount would be determined by multiplying the number of gallons of biodiesel sold by 5 cents.

The second incentive relates to biodiesel plants operating in the state before July 2011 and with a production capacity of more than 1 million gallons.

The plant could receive incentive payments if production is increased by the lesser of 10 million gallons or 50 percent of its production capacity during a 12-month period.

The incentives are similar to what was done with the ethanol industry, said Shane Goettle, the state’s commerce commissioner and chairman of the EmPower North Dakota Commission.

Some lawmakers questioned the wisdom of the legislation that doesn’t take into account market conditions. The committee is expected to discuss the measure more next month.

Biodiesel, Legislation