Nelson Introduces Bill to Spur Biogas Development
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Billions of gallons of fossil fuels could be reduced through renewable energy sources produced from animal waste with a little ingenuity and modest government support, says Sen. Ben Nelson, D-Neb.
Nelson is proposing legislation to promotes the development of biogas--a natural gas substitute created by the anaerobic digestion of animal wastes--through tax incentives and guaranteed loans for small businesses.
"The technology to break down animal wastes to create biogas already exists but it needs encouragement from the federal government to become a commercially-viable alternative to natural gas," Nelson says. "This new energy source would benefit rural communities and the environment while lessening our dependence on fossil fuels. We shouldn't waste the waste; we should promote biogas development."
Biogas is produced through the anaerobic digestion of animal wastes and other agricultural or organic wastes and is composed of at least 60% 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 it can be cleaned up to be used as a renewable substitute for natural gas, propane or other fossil fuels.
Nelson's legislation, the Biogas Production Incentives Act of 2007, 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. Providing loans, loan guarantees and/or grants for the multi-farm collection and transportation of qualified energy feedstock from smaller livestock operations to a qualified facility, or for the purchase or construction of equipment or facilities for collection and transportation. Creating a counter-cyclical safety net for biogas producers by providing payment from Commodity Credit Corporation funds to qualified biogas producers only when the annual average daily prices of natural gas falls below a certain level.
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, Nelson says.
"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," says Nelson. "My legislation will put into place tax incentives and financial support for large scale and small scale producers to get involved in biogas production."
"One of the major obstacles for biogas development in agriculture is the significant costs associated with it," according Keith Olsen, Nebraska Farm Bureau president. "Incentives for biogas production and other incentives to encourage the development of the infrastructure to support it would certainly help livestock producers who are interested in the opportunities associated with the production of biogas.
"There is opportunity for livestock producers to become food and energy producers. Senator Nelson recognizes that opportunity. We appreciate his understanding that nothing produced at a livestock operation is 'waste,'" says Michael Kelsey of the Nebraska Cattlemen.
Related: Nelson Introduces Bill to Spur Biogas Development
Additional information:
Nelson Introduces Bill to Spur Biogas Development: from nebraskafarmer.com
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