Hoeven: Crack the Code 2.0 Supports U.S. Energy Dominance, Helps Secure Future of Coal-Fired Baseload Power

Hoeven: Crack the Code 2.0 Supports U.S. Energy Dominance, Helps Secure Future of Coal-Fired Baseload Power

Senator Outlines Efforts to Secure Federal Support for Deploying EOR in North Dakota, Senator Outlines Efforts to Link Coal-Fired Electric Plants to Oil Production in Bakken

BISMARCK, N.D. - During the Lignite Energy Council's (LEC) annual meeting today, Senator John Hoeven outlined his efforts to secure the future of North Dakota's coal industry. Hoeven, who participated in a panel discussion with leaders from the LEC, North Dakota Petroleum Council, the Energy & Environmental Research Center (EERC) and Rainbow Energy, discussed:

• Advancing his Crack the Code 2.0 initiative which seeks to partner the state's oil and gas industry, using enhanced oil recovery (EOR) to double both oil recovery in the Bakken and the life of North Dakota's coal-fired power plants.
  • This is possible due to a policy Hoeven worked to include in the One Big Beautiful Bill (OB3) that properly aligned the 45Q tax credit to incentivize the use of CO2 for EOR, which:
    • Supports coal producers' continued operations by providing access to a new revenue stream through selling CO2 to oil producers.
    • Makes EOR the clear, commercially-viable choice for improving oil recovery in the Bakken, opening access to at least 5 billion additional barrels of oil in the formation that were previously inaccessible.
  • Hoeven is working to secure up to $50 million to support the deployment of EOR in North Dakota, having provided $12 million for the effort to date.
  • The senator also recently secured a commitment from the nominee to head the U.S. Department of Agriculture Rural Development to work with him and the electric cooperatives on using federal credit programs to accelerate this initiative.
• Providing regulatory relief and continuing to roll back the burdensome federal rules imposed during the Biden administration.
  • To this end, Hoeven worked with the Trump administration earlier this year to rescind the Clean Power Plan 2.0 and the Mercury and Air Toxics Standards (MATS) rule.
  • Hoeven, along with then-Congressman Kelly Armstrong, previously led bicameral legislation to block the EPA from implementing its new MATS rule.
  • Hoeven also joined the North Dakota delegation in sponsoring and passing legislation to rescind the Bureau of Land Management's (BLM) Resource Management Plan for North Dakota.
    • The new RMP would have locked away nearly all federal coal and the majority of oil and gas acreage in North Dakota.

"Crack the Code 2.0 is about realizing the potential of North Dakota's vast, untapped energy reserves, particularly our oil, gas and coal resources," said Hoeven. "We know EOR works, because we've been shipping CO2 from the Dakota Gasification Company up to Weyburn Field for this purpose for 25 years. Now, due to the changes we made under OB3 and with the federal support we're advancing, we can utilize this approach in the Bakken. Doing so gives our coal producers a new revenue stream while opening up at least 5 billion barrels of additional oil for production, both of which are supported by our efforts to roll back the regulatory onslaught imposed under President Biden. The result is continued access to reliable baseload power and more domestic oil and gas - that's a win for American consumers, our economy and U.S. energy dominance."

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