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Monday, April 30, 2007
DON'T WASTE THE WASTE: USE IT TO MAKE BIO-GAS

Nebraska is an agricultural state where cattle and hogs outnumber people 4 to 1. The multi-billion dollar beef and pork industries are able to use just about every part of the animals they raise. Now, I would like to help them expand the use of one of their plentiful byproducts and at the same time contribute to America's battle for energy independence.

With a little ingenuity and modest government support, billions of gallons of fossil fuels could be replaced through renewable energy sources produced from animal waste. I have introduced groundbreaking legislation that offers tax breaks and guaranteed loans for small business for the development of bio-gas derived from animal waste.

Bio-gas is a Natural Gas Substitute

Bio-gas is created by the anaerobic digestion (AD) of animal wastes and is composed of at least 60 percent methane, which is the principal ingredient in natural gas. The technology to break down animal wastes to create bio-gas already exists 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. Bio-gas can be used as is on the farm or co-located with another facility such as an ethanol plant. It can also be cleaned up to be used as a renewable substitute for natural gas, propane or other fossil fuels.

Don't Waste the Waste

My bill, the Biogas Production Incentives Act of 2007, would encourage greater production of biogas for energy purposes by doing a number of things.

It would provide biogas producers with a tax credit of $4.27 for every million British thermal units (mmBtu) of biogas produced.

It would provide 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;

And, it would create a counter-cyclical safety net for bio-gas 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.

Renewable Energy, Cleaner Environment

The Environmental Power Corporation has estimated national bio-gas production potential from AD systems on dairy, swine and beef farms could exceed 340 million mmbtu of gas per year. This would be the energy equivalent of approximately 2.5 billion gallons of heating oil per year.

Bio-gas 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 bio-fuels and renewable energy. My legislation will put into place tax incentives and financial support for large scale and small scale producers to get involved in biogas production and help America win the battle for energy independence.

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