Biofuels Investment Bill Introduced
WASHINGTON - Congress members Herseth Sandlin (D-SD) and Paul Hodes (D-NH) on May 20 introduced the Advanced Biofuel Investment Act of 2010, a bill aimed at spurring production and use of domestic biofuels.
Sponsors of the legislation argue that it would help to ensure the nation meets the advanced biofuels mandate of 21 billion gallons by 2022 set out in the Renewable Fuels Standard (RFS) enacted in 2007.
"This new investment tax credit will help private industry realize the promise of advanced biofuels for making our nation energy independent through the production of clean-burning domestic biofuels, while also creating jobs in communities across the nation, including in many rural communities," said Sandlin.
The Advanced Biofuel Investment Act would create a new 30-percent investment tax credit for investing in advanced biorefineries. This tax credit could be joined with the cellulosic production tax credit. The tax credit could be monetized through an existing federal Treasury grant program.
In order to meet the RFS, a diverse array of eligible feedstocks is needed, and this legislation would ensure the eligibility of biorefineries -- or components of biorefineries --- that use a wide range of feedstocks, bill supporters said.
"Whether it's the corn cobs gathered from South Dakota fields or woody biomass collected in the Black Hills, South Dakota has an abundance of renewable biomass that would qualify under this investment tax credit," Sandlin said.
Bill proponents said the investment tax credit would help companies raise the capital needed to build the first wave of commercial facilities necessary to reach the goals of the RFS. In addition, they said, the legislation would provide incentives for greater investment in the commercialization of advanced biorefinery projects.