Hoeven Outlines Efforts With Sec. Brouillette to Support North Dakota's Role as Global Energy Leader

Senator Highlights Work to Secure 45Q and Provide a Path Forward for Coal, Stabilize Oil Markets, Advance Regulatory Relief for Energy & Infrastructure Development

MINOT, N.D. – Senator John Hoeven, along with Senator Kevin Cramer, today held roundtables with U.S. Secretary of Energy Dan Brouillette and representatives from North Dakota’s electric utilities, lignite coal industry and oil and natural gas producers. Hoeven, who serves as a member of the Senate Energy and Natural Resources Committee and Energy and Water Development Appropriations Committee, outlined his efforts to support the state’s energy industry and continue growing North Dakota as a global leader in energy development.

“North Dakota is an energy powerhouse and a major contributor to our country’s economic and national security,” said Senator Hoeven. “Our efforts are about ensuring continued access to affordable and reliable energy for homes and businesses. That’s exactly what coal provides for our electrical grid, 24 hours a day, 7 days a week, and it’s why we are working to better secure the 45Q tax credit to ensure we continue harnessing this abundant resource for baseload power while also reducing emissions and promoting environmental stewardship. At the same time, we’ve prioritized helping our oil producers through the instability they’ve faced in global energy markets this year, while also continuing our work to provide the necessary regulatory relief and support the development of needed infrastructure, like pipelines and transmission lines. I appreciate Secretary Brouillette for meeting with our producers to discuss our shared efforts and these critical issues firsthand.”

“The economic growth and certainty created by the Trump Administration pre-COVID has allowed for robust domestic energy production – making us the number one oil and gas producer in the world - and North Dakota has contributed immensely to our energy independence,” said Secretary of Energy Dan Brouillette. “Instead of regulating certain types of energy out of existence, is imperative we continue an innovative “all-of-the-above” energy strategy to further provide economic growth and opportunity, well-paying jobs, and reliable and affordable electricity to the American people.”

Leveraging 45Q & Providing a Path Forward for Coal

Today’s roundtable builds on Hoeven’s efforts to better leverage the 45Q tax credit and build a true path forward for coal in the nation’s energy mix, having worked closely with the White House, Department of the Treasury and the Department of Energy to get the 45Q tax credit implemented in a manner that will make carbon capture, utilization and storage (CCUS) projects more commercially-viable:

  • Hoeven previously worked to pass legislation to reform and expand the 45Q tax credit and advanced its implementation, including raising the issue with President Trump and White House Chief of Staff Mark Meadows. 
  • The senator helped secure two provisions in the 45Q tax credit’s rules to benefit coal facilities and enhanced oil and gas recovery (EOR) operations in North Dakota:
    • An expanded definition of Carbon Capture Equipment (CCE).
    • A provision, similar to Hoeven’s CO2 Regulatory Certainty Act, to ensure the tax credit works both for long-term storage and enhanced oil recovery.
  • Moving forward, Hoeven is prioritizing the need to provide a direct payment option and extend the time available for claiming the 45Q tax credit.

This aligns with Hoeven’s efforts to support the University of North Dakota’s Energy & Environmental Research Center (EERC) in developing CCUS technology to enable greater energy production with fewer emissions. To date, Hoeven has secured $43 million for Project Tundra, an effort led by the EERC and Minnkota Power.

Hoeven has also worked to ensure a fair value for coal as a reliable source of baseload power. To this end, the senator:

  • Has been pressing the Federal Energy Regulatory Commission (FERC) and the administration, including Secretary Brouillette, on this issue.
  • Introduced an amendment, along with Senator Kevin Cramer, to repeal the one-year extension of the Wind Production Tax Credit (PTC).
  • Worked to provide much-needed regulatory relief for the nation’s energy producers, including repealing burdensome rules on coal producers. 

“The Lignite Energy Council and its 250 members wish to thank Senator John Hoeven for putting together a roundtable regarding the state’s lignite industry and the challenges it currently faces. The state’s coal mines and power plants are responsible for supplying affordable and reliable power to the regional grid, but the current electric market doesn’t adequately value the resiliency of baseload energy. The recent rolling blackouts have shined a bright light on baseload energy sources. Hopefully, markets can level the playing field and allow coal to compete fairly against other generation sources,” said Jason Bohrer, president and CEO of the Lignite Energy Council.

Stabilizing Oil Markets, Providing Regulatory Relief

Hoeven is working closely with Secretary Brouillette and other administration officials to support the nation’s oil and gas producers, including ending the global oil price war and providing stability to energy markets. Among other things, the senator has:

  • Led bipartisan, bicameral legislation to provide $3 billion to purchase domestically produced crude for the Strategic Petroleum Reserve (SPR), which will not only help domestic oil and gas producers, but benefit taxpayers and U.S. national security.
  • Urged Treasury Secretary Steven Mnuchin to work with Brouillette to ensure access to credit for the energy industry under the Treasury Department’s 13(3) lending program, including the Main Street Lending Program.
  • Pressed the Department of Commerce, under Section 232, to investigate the excessive dumping of crude oil by the Kingdom of Saudi Arabia and stop shipments of crude from flooding the U.S. market.

In addition, Hoeven is advancing a regulatory environment that empowers the development of North Dakota’s abundant energy resources and the infrastructure needed to safely transport energy to market, while also ensuring better environmental stewardship. This includes:

  • Hoeven’s Bureau of Land Management (BLM) Mineral Spacing Act, which would waive the permit requirement when the federal government controls less than 50 percent of subsurface minerals and there is no federal surface land. 
    • The bill is also included in the ONSHORE Act, which he introduced with Senator John Barrasso (R-Wyo.) to empower states with the authority to manage oil and gas permitting on federal lands within their borders.
  • His work with the Department of State to streamline the permitting process for cross-border energy infrastructure projects, like pipelines and electrical transmission lines, similar to his North American Energy Infrastructure Act.
  • Working with his Senate colleagues and the administration to provide relief from burdensome regulations, including:
    • Securing federal preemption of the 2019 Washington state law that would have effectively banned the transportation of Bakken crude by rail.
    • Repealing the 2015 Waters of the U.S. (WOTUS) Rule, which Hoeven worked to defund in 2016 and 2017.
    • Modernizing National Environmental Policy Act (NEPA) approvals. 

“Members of the North Dakota oil and gas industry were pleased to meet with Energy Secretary Brouillette today, and appreciate Senator Hoeven’s continued work to address the issues facing our industry right now,” said Ron Ness, President of the North Dakota Petroleum Council. “With federal assistance under the CARES Act, we are able to get people to work during this downturn. We are grateful for these leaders who understand the value of Bakken oil and the energy security we provide for American consumers, and we look forward to working together to address the issues impacting the industry.”