| What
are some policies that might promote bioenergy
in the U.S.?
Research, development and demonstration
There is a continued need for technology development to address issues
such as SCR contamination among others, as well as improving efficiencies
and reducing costs. There is also a need for more research on growing
energy crops cheaply and with minimum environmental impact. U.S. Department
of Agriculture extension offices, for example, can work with farmers
to better understand efficient production of energy crops.
Tax
Credits
The
last Energy
Policy Act to be passed by Congress was in
1992. Section 45 of the Energy
Policy Act of 1992
offers
a 1.5 cent per kWh tax credit to
wind power and “closed-loop biomass”,
which means only energy crops. The credit would allow bioenergy operators
to pay enough for biomass they need. Such a tax credit can be extended
to include many more forms of biomass, which are cheaper than energy
crops. The credit does not have to be restricted to biomass for power
plants—it can include biomass for small industrial boilers and
district energy operations. The tax credit allows bioenergy operators
to compete with other industries that use biomass, so that a consistent,
high quality supply of biomass is possible.
Congress
has been working on updating the Energy Policy
Act for 2005 to include new incentives and
support for the biomass industry. The proposed
act as approved by the Senate June 28, 2005
would set an 8 billion gallon renewable portfolio
standard for ethanol by 2012 and supply $18
billion in tax breaks over the next 10 years.
Also,
the National Security and Bioenergy Investment
Act of 2005 would "expand research and
development of biomass energy and biobased
products, establish the position of Assistant
Secretary of Agriculture for Energy and Biobased
Products at the U.S. Department of Agriculture,
and provide incentives to businesses producing
biofuels." [1]
Finally, accelerated
depreciation and investment tax credits can
help catalyze
new biomass CHP projects by making near-term
economics more attractive to financiers. Renewable fuels standard
The renewable fuels standard requires an increasing percentage of transportation
fuel sold in the United States be biofuels. The policy features a credit
trading system to allow refiners, blenders, and retailers to buy and
sell credits from each other to meet their goals. Renewable
portfolio standard (RPS)
Biomass power plants can be included in renewable
portfolio standards,
which require a certain percentage of power within a state or the entire
U.S. to come from renewables. The RPS also features a credit trading
system similar to the renewable fuels standard.
Sources Cited:
[1] Federal Bill Addresses
Bioenergy, Cellulosic biofuels. http://www.renewableenergyaccess.com/rea/news/story?id=33201
[2] www.thomas.loc.gov |
