Date: January 23, 2009
Source: Senator Ben Nelson
Nelson Introduces Bill to Promote Biogas Production Through Tax Credits
Billions of gallons of fossil fuels could be reduced through renewable energy sources produced from wastes with a little ingenuity and modest government support. Nebraska's Senator Ben Nelson has introduced groundbreaking legislation that promotes the development of biogas - a natural gas substitute created by converting agricultural, animal or other organic wastes - through tax incentives.
"We already have the technology to break down these wastes to create biogas but it needs encouragement from the federal government to become a commercially-viable alternative to natural gas. This new energy source would benefit rural communities and the environment while lessening our dependence on fossil fuels and ensuring energy security," said Nelson. "We shouldn't waste the waste; we should promote biogas development."
This legislation is cosponsored by Senators Mike Crapo of Idaho, Mike Johanns of Nebraska, Sherrod Brown of Ohio, John Thune of South Dakota, Ron Wyden of Oregon and Debbie Stabenow of Michigan.
Biogas is produced through technologies such as anaerobic digestion (AD) that can convert animal wastes and other agricultural or organic wastes into at least 50% methane (the principal ingredient of natural gas). Biogas can be used as is on the farm or co-located with another facility such as an ethanol plant, or as a renewable substitute for natural gas, propane or other fossil fuels.
Nelson's legislation, the Biogas Production Incentives Act of 2009, would encourage greater production of biogas for energy purposes by providing biogas producers with a tax credit of $4.27 for every million British thermal units (mmBtu) of biogas produced. This could mean more jobs and a boon for rural communities.
Biogas production also offers environmental benefits such as a reduction in the greenhouse gas emissions of both carbon dioxide and methane and improved water quality through better manure management.
"We've made great strides in developing an ethanol industry in Nebraska and we should do more to diversify and expand our production of biofuels and renewable energy," said Nelson. "My legislation will put into place tax incentives for large scale and small scale producers to get involved in biogas production."
"We compliment and support Senator Nelson's Biogas Production Incentives Act as a method to further utilize renewable agriculture assets that benefit the environment, the rural economy and agriculture producers," said Larry Sitzman, Executive Director of the Nebraska Pork Producers Association.
"The use of animal waste in energy production has promising potential for the Nebraska beef industry," said Michael Kelsey, Executive Vice President of the Nebraska Cattlemen, Inc. While more research is need, we appreciate Senator Nelson recognizing opportunity in this area."
"We thank Senator Nelson for providing leadership on biogas production incentives," said John Hansen, President of the Nebraska Farmers Union. "This important new form of renewable energy reduces harmful greenhouse emissions into the environment and neighborhood while also capturing methane, that can be transformed into a clean burning gas that can displace natural gas. In addition, biogas production incentives can also provide a new source of renewable energy based income for livestock producers. Lastly, if our nation is to get serious about reducing our dependence on foreign oil, this new additional form of renewable energy needs to become a part of the overall mix of renewable energy."
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January 23, 2009
PR-5
AGA Backs Renewable Gas Tax Credit
Washington, DC - The American Gas Association (AGA) today applauded Senator Ben Nelson of Nebraska for introducing a bill that would provide a tax incentive to turn noxious wastes into usable natural gas. By increasing the production of renewable gas from sources that include animal waste, landfills and renewable biomass, the bill would help produce a valuable energy source from a waste product and reduce greenhouse gas emissions in the process.
This legislation is cosponsored by Senators Mike Crapo of Idaho, Mike Johanns of Nebraska, Sherrod Brown of Ohio, John Thune of South Dakota, Ron Wyden of Oregon and Debbie Stabenow of Michigan.
AGA president David N. Parker offered the following comment:
"The natural gas from this process is a 'green' fuel. By taking a waste product and converting it to a valuable fuel, we create a new source of domestic supply that benefits the consumers of natural gas.
"The production of renewable gas is consistent with the goals of the new Administration. AGA believes this fiscally responsible proposal should be included in the stimulus package that is being considered in Congress.
"In a carbon-constrained world, embracing innovative solutions that promote energy efficiency and use domestic resources to fuel domestic operations is a smart step in the right direction."
The American Gas Association, founded in 1918, represents 202 local energy companies that deliver natural gas throughout the United States. There are nearly 70 million residential, commercial and industrial natural gas customers in the U.S., of which 92 percent - more than 64 million customers - receive their gas from AGA members. Today, natural gas meets almost one-fourth of the United States' energy needs. For more information, please visit www.aga.org.
AGA Media Contacts
Melanie Lyons, 202.824.7205
Lauren Blossé, 202.824.7204
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