The answer to our nation’s long-term energy needs is not a “cap-and-trade” program that would put significant new energy costs on South Dakota’s families and businesses. The answer is clean, renewable energy – and that should be a major priority for South Dakota. It’s good for farmers, it’s good for the environment, and it’s good for the state’s economy. South Dakota has been producing clean, low-cost, renewable energy for decades – from our four Missouri River dams. Our state must do everything we can to advance the development of renewable energy sources like wind and ethanol.
Wind Energy

South Dakota has the potential to be the nation’s leader in generating wind energy. We need to ensure that our tax laws, energy regulation, and transmission capacity all encourage the development of our plentiful wind energy. When Governor Rounds took office, South Dakota had 3 megawatts (MW) of wind energy production. As a result of the tax reforms he proposed, South Dakota has increased our wind energy production from 3 MW to 287 MW, with another 300 MW expected to come online in 2010. Those projects represent more than a billion dollars of investment into South Dakota energy production.
South Dakota should continue to explore ways to attract wind energy projects to our state. I am opposed, however, to mandating that a certain percentage of our energy come from renewable sources. Although setting a goal is a good step, mandates can lead to high energy costs and remove the incentive for renewable energy to become more efficient and cost-competitive. We can build our wind industry the same way we’ve built our ethanol industry – through incentives, rather than through mandates.
One of the major limitations on wind energy development in South Dakota is limited available transmission capacity. As governor, I will do everything I can to support interstate transmission projects like the Green Power Express. Such projects would help us export thousands of megawatts of South Dakota wind energy across our region, opening up enormous new markets to our wind power. I will also work to break down political, economic, and regulatory barriers that limit our ability to transmit clean energy from South Dakota to markets like Minneapolis and Chicago.
Ethanol

I have always been a great supporter of ethanol – I was given the “Friend of Ethanol” award when I was in the legislature. Ethanol is an important part of our state’s agricultural economy. South Dakota is #5 in total ethanol production, producing more than 1 billion gallons of ethanol every year. More than 14,000 South Dakotans have invested in some form of ethanol production, and ethanol production in South Dakota uses 250 million bushels of corn every year.
South Dakota must do all that it can to continue to support this industry. As governor, I will support efforts to move the “blend wall” by urging the EPA to permit use of 15% gasoline-ethanol blends. I will also do all I can to support a $3.5 billion project to add South Dakota to an ethanol pipeline, allowing our ethanol to be easily transported to distribution terminals in the northeastern United States.
I am excited about the potential for cellulosic ethanol, a biofuel produced from wood, grasses, or the non-edible parts of plants, to become a major source of energy for our nation. South Dakota’s ethanol companies are undertaking cutting-edge research in this area. As governor I will direct that the state do everything it can to support this research.
Biodiesel

Like Ethanol, biodiesel is a clean fuel that is produced from South Dakota's renewable resources. Biodiesel can be used as a complete replacement for diesel fuel, or it can be blended with diesel fuel. Soybean oil accounts for about ninety percent of all biodiesel in the United States, and our soybean farmers have contributed to the development of biodiesel through the soybean check-off. As governor, I'll encourage the further development of biodiesel so that South Dakota's soybeans can be used to create another clean, renewable energy source.