Tourism and State Development

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Tourism and State Development
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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.

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South Dakota Energy Goals

• 2010 Initiative Goal 2
• Increase Gross State Product by over 10 Billion
• Action Step Become a net energy exporter

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South Dakota Energy
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South Dakota Energy
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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
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Ethanol inSouth Dakota Leading the Way
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Ethanol Leading the Way

• The nations first state to produce more ethanol
  than the amount of gasoline consumed at the pump.
  
• South Dakotas ethanol production capacity 990
  million gallons per year as of last week.
• South Dakotas gasoline consumption 425 million
  gallons per year.
• Nearly 70 of all gasoline sold in South Dakota
  contains ethanol.

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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.

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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

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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

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Wind Power in South Dakota
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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

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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

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Economic Development Opportunity Green Jobs
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Green Job Marketing
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Advanced Traditional Energy Resources
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South Dakota Energy

• Basin Electrics 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

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Basin Electrics Deer Creek Station

• 300 MW Combined-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.

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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
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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 Bostons Big Dig)
• 200 MW state-of-the-art IGCC Power Plant that
  will use pet-coke as its feedstock

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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

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South Dakota Energy Infrastructure Authority
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South DakotaEnergy Infrastructure Authority

• Legislative Intent
• Created to diversify and expand the states
  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

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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

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SDEIA SD Wind Power Report

• Published December 2007

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SDEIA Current Project SD Wind Power Development
Handbook
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Energy Management Office

• State Energy Manager Michele Farris
• Coordinates States 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 Veterans Home
• Decentralization of the Human Services Center
  Energy System
• Light Fixture Replacement Plan

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Thank youHunter Roberts Energy Policy
Director(605) 773-3328hunter.roberts_at_state.sd.us