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Tourism and State Development

Tourism and State Development. South Dakota Energy Infrastructure Authority. Funding Sources: The 2006 Legislature enacted Senate Bill 165 that authorized $247,000 to be used for the operations of the South Dakota Energy Infrastructure Authority.

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Tourism and State Development

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  1. Tourism and State Development

  2. South DakotaEnergy Infrastructure Authority Funding Sources: • The 2006 Legislature enacted Senate Bill 165 that authorized $247,000 to be used for the operations of the South Dakota Energy Infrastructure Authority. • The 2008 Legislature authorized $56,688 through the General Appropriations Bill to provide funding in FY2009 for the Authority.

  3. South Dakota Energy Goals • 2010 Initiative Goal #2: • Increase Gross State Product by over $10 Billion • Action Step: Become a net energy exporter

  4. South Dakota Energy

  5. South Dakota Energy

  6. Represent SD in Regionaland National Energy Issues WGA “Clean Energy, a Strong Economy, and Healthy Environment” and “Transportation Fuels for the Future” MGA “Energy Security and Climate Stewardship” Summit and Initiative NGA “Securing and Clean Energy Future” Initiative

  7. Ethanol inSouth Dakota “Leading the Way”

  8. Ethanol – Leading the Way • The nation’s first state to produce more ethanol than the amount of gasoline consumed at the pump. • South Dakota’s ethanol production capacity: 990 million gallons per year as of last week. • South Dakota’s gasoline consumption: 425 million gallons per year. • Nearly 70% of all gasoline sold in South Dakota contains ethanol.

  9. SD Ethanol Production Facts • South Dakota has 15 ethanol plants. • Since 2002, ethanol production in South Dakota has seen an increase of over 500% - from 165 million gallons per year to 990 million today. • South Dakota is ranked first in the nation in farmer-owned plants, first in percentage of corn used and fourth in total ethanol production.

  10. State Incentivesand Initiatives for Ethanol • Ethanol Production Incentive Payment • Tax Refund for New and Expanded Agricultural Processing Facilities • State Fuel Excise Tax Rates • Infrastructure Grants • Executive Orders • First State to Allow Blender Pumps

  11. Biodiesel • South Dakota currently has one commercial scale biodiesel plant in Alexandria, SD capable of refining 7 M gallons per year. • Seed Oil Crushers (provide feedstock) • Current - SD Soybean Processors in Volga, SD • Small Facility in Aberdeen • Under Construction or Planned • SD Oilseed Processors – Miller, SD • Coteau Hills Processors – Webster, SD • Northern Beef Packers – Aberdeen, SD

  12. Wind Power in South Dakota

  13. South Dakota Wind Energy • Current installed capacity 187.5 MW • Represents $250 million investment • Under construction ($200 million) 102 MW • Over 325% SD Wind Power growth in the past year • Going from 44-megawatts of installed nameplate capacity in early 2007 to currently having over 187.5-megawatts of installed nameplate capacity. • In 2007 we more than tripled the amount of wind power capacity with: • Tatanka Project (McPherson County) • MinnDakota Project (Brookings County) • These projects represent around $225 million in new South Dakota investment. • Over 25,000 MW in some stage of development just in South Dakota

  14. Economic DevelopmentWind Energy • Jobs – • During Construction: 2.5-3 jobs per MW of nameplate capacity • Maintenance: 1 job for every 10 turbines • Construction – Cement and excavation contractors, local hotels and restaurants • Landowners – • Lease Arrangements • Other Benefits • Taxes During Construction: 1% - 3.5% of total project costs • Taxes on repair materials – 4% in SD • Wind Energy Equipment Manufacturers • MFG, Knight and Carver, Malloy Electric • Other businesses – Muth Electric • Power that is: Homegrown, Secure, & Renewable

  15. Economic Development Opportunity: Green Jobs

  16. Green Job Marketing

  17. Advanced Traditional Energy Resources

  18. South Dakota Energy • Basin Electric’s NextGen Coal Fired Power Plant • 700 MW project proposed for the Selby area • Over $2 billion project with around 130 jobs • Basin Electric Power Cooperative is the generation and large Transmission for the South Dakota Electrical Cooperatives

  19. Basin Electric’s Deer Creek Station • 300 MWCombined-Combustion Cycle Intermediary Resource ran on Natural Gas (12-16 hrs/day) near White, SD. • 20-25 FTEs when completed. • Scheduled for completion in 2012 with $330 million in estimated construction cost.

  20. Big Stone II • 500-580 MW Coal Fired Baseload Power Plant near Big Stone City, SD • 35-40 permanent jobs with a $1.6 billion estimated project cost • In permitting process • Provide 800-1000 MW of new transmission capacity for other resources (Wind Power) • Average construction workforce of 625 with a peak of 1500 employees Project Partners: Otter Tail Power Company, Central Minnesota Municipal Agency, Missouri River Energy, Heartland Consumer Power District, Montana-Dakota Utilities

  21. Hyperion Resources Proposed Traffic Routes Hyperion Energy Center = $8 to $10 B Employment Long term 1,800 FTEs Construction 4,500 FTEs • Will process 400,000 bpd (approximately 2% of the United States current bpd)Union County Vote on the Project • 2nd largest capital investment in a single private construction project in US history (#1 is Boston’s Big Dig) • 200 MW state-of-the-art IGCC Power Plant that will use pet-coke as its feedstock

  22. Energy - Keystone Pipelines • More than $1.6 billion in SD investment • Estimated to pay more than $26 million in annual property taxes • Pumping stations are big power users

  23. South Dakota Energy Infrastructure Authority

  24. South DakotaEnergy Infrastructure Authority Legislative Intent: “Created to diversify and expand the state’s economy by developing in South Dakota the energy production facilities and the energy transmission facilities necessary to produce and transport energy to markets within the state and outside of the state” • Board Members – 5 citizens from around South Dakota • Bonding Authority • Provide Industry Reports • Provide Technical Assistance and Information to All Parties

  25. South DakotaEnergy Infrastructure Authority Administration • Current board members are: • Mike Trykoski, Rushmore Professional Services, Rapid City (Chairman) • Kyle White, Black Hills Corporation, Rapid City (Vice Chairman) • Audry Ricketts, South Dakota Rural Electric Association, Pierre • Mike Held, South Dakota Farm Bureau, Huron • Dr. Mike Ropp, SDSU, Brookings

  26. SDEIA – SD Wind Power Report • Published: December 2007

  27. SDEIA Current Project – SD Wind Power Development Handbook

  28. Energy Management Office • State Energy Manager – Michele Farris • Coordinates State’s energy purchases and the efficient use of energy • Advises and provides assistance on energy use and energy savings projects • Examples: • Biomass project at the Star Academy • Biomass project at the State Veteran’s Home • Decentralization of the Human Services Center Energy System • Light Fixture Replacement Plan

  29. Thank youHunter Roberts Energy Policy Director(605) 773-3328hunter.roberts@state.sd.us

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