North Dakota lawmakers should use a menu of tax breaks and incentives to encourage more production of oil, coal, wind power and alternative fuels, Gov. John Hoeven's energy policy commission says.

The commission's report advocates doubling the state's energy output by 2025, and says one-quarter of its energy production should come from renewable sources by then.

At present, the energy output attributed to renewables ranges between 2 percent and 4 percent, said Shane Goettle, the commission's chairman and director of the state Department of Commerce.

"It's about growing all energy segments of our economy," Goettle said of the report's conclusions. "It means new jobs for our people, and it means opportunities for our youth."

The report sets a number of production goals, some of which have already been met or are easily within reach.

It says North Dakota's wind energy output should be at least 1,500 megawatts by 2020.

North Dakota's ethanol industry should be producing 450 million gallons of the renewable fuel by 2011, the report says. Hoeven said North Dakota's ethanol production should meet that goal when new factories at Hankinson, Casselton and Spiritwood begin operating.

The report recommends maintaining or expanding a number of industry tax breaks, including property, income and sales tax incentives for wind tower construction; cutting the oil industry's top tax rate on production from 11.5 percent to 9.5 percent; establishing a new ethanol industry research fund; and providing grants to fuel dealers to help them offer alternative vehicle fuels.