Herseth Sandlin Helps Pass Comprehensive Energy Legislation

Press Release

Rep. Stephanie Herseth Sandlin today helped pass comprehensive energy legislation that will enhance our energy security by dramatically opening public land offshore for responsible oil and gas development; providing incentives for renewable energy production; and enhancing energy efficiency standards. Notably, the Comprehensive American Energy Security and Consumer Protection Act, H.R. 6899, includes an extension of the popular and critical wind energy production tax credit, as well as a provision to improve the current E85 infrastructure credit.

"I've come to the same conclusion most South Dakotans have when it comes to energy legislation: we're not going to bring down the price of gas or enhance our energy security by fighting the same old fights," Rep. Herseth Sandlin said. "We need to come together around a bipartisan compromise, and this comprehensive energy legislation includes a range of provisions that will help to meet our short and long-term energy needs, including opening at least 319 million acres for offshore drilling - far and away the largest opening of offshore areas for oil and gas development since the moratoria were put in place more than twenty-five years ago."

The bill would result in an estimated 85% of total oil on the Continental Shelf being open for leasing and drilling. From 50 - 100 miles out from the coasts, states can opt-in to oil and gas drilling by enactment of a state law. The remaining Outer Continental Shelf beyond 100 miles would be open to oil and gas drilling without any further action.

Herseth Sandlin added, "The inclusion of these provisions to open up more of the waters off our coasts to responsible drilling represents an important breakthrough and compromise. We need to increase domestic production as part of a comprehensive solution."

The bill also allows Utah, Wyoming, and Colorado to opt in to exploration, development, and production of oil shale reserves - a vast untapped energy resource.

In addition to the provisions for expanded domestic production of oil and gas, The Comprehensive American Energy Security and Consumer Protection Act contains roughly $18 billion in renewable energy tax incentives that stand to benefit South Dakota, including the critical extension of the Production Tax Credit for wind, which the House has already passed this year. The bill also includes a provision previously approved by the House to require that 15% of electricity come from renewable sources - like the natural abundance of wind harnessed by turbines across South Dakota.

Herseth Sandlin said, "Now is the time to capitalize on the tremendous potential wind energy holds for our state and our country. By extending the production tax credit and requiring that more of our nation's electricity come from renewable sources like wind, we help to ensure the continued development of the burgeoning wind industry in South Dakota and across much of the Great Plains. The House has voted in favor of both of these measures this Congress and I'm hopeful the Senate will follow suit in short order. We need to give entrepreneurs and innovators the certainty they need to invest in this important industry."

The bill also includes an improved E85 Infrastructure Credit, which is similar to Herseth Sandlin's E85 and Biodiesel Access Act. Currently, gas station owners can claim only a 30 percent credit for the cost of installing qualifying clean-fuel vehicle refueling property up to a maximum of $30,000, and the IRS only allows the taxpayer to claim the credit for the amount a dual purpose fuel dispenser exceeds the cost of equivalent conventional refueling dispensers. The language in H.R. 6899 increases the percentage from 30 to 50 percent, and the maximum credit to $50,000. The National Ethanol Vehicle Association has said that if the E85 and Biodiesel Access Act became law: "the nation would have no less than 10,000 E85 fueling sites in a short period of time."

"The bill we passed today makes important enhancements to the existing tax credit in order to greatly increase the relatively small number of existing E85 pumps. Although the bill does not go quite as far as my bill proposed, it represents a good step forward," Herseth Sandlin concluded.

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