A breakthrough bipartisan support has been announced by Democratic Senators Mark Begich and Jean Shaheen and Republican Senators Mike Crapo and Lisa Murkowski for a little utilized form of renewable energy.
This improbable Senate alliance will have major implications for greenhouse gas reductions in the American Renewable Biomass Heating Act. Brighter Energy reports that their legislation will expand the use of waste biomass in high-efficiency heating systems in commercial and industrial buildings by expanding the 30% tax credits to exceed the $1,500 limit and to extend past the current expiration date of 2013.
In the past both Crapo and Murkowski had been part of the minority of those against extending the expiring renewable energy tax credits and both had voted no on ensuring that when the fuel is defined as renewable that it not hurt the environment. They were particularly opposed to tax credits for renewable biomass.
Currently the legislation is limited and the smaller tax credit is really only benefitial for homeowners to install a small pellet stove in their home. This is down to the fact that the 30% tax credit maxes out at $1,500 and even that will only be for the next three years.
The reasons for expanding the low incentive and limited time frame are obvious as large commercial users need larger capital investment and longer planning times. Were this to go ahead it would create a US market for innovation in commercial scale biomass heating systems as well as reducing climate changing greenhouse gas production. Europe already uses innovative large-scale biomass thermal technology, which contributes to the low EU carbon footprint, which was put into motion by post-Kyoto cap and trade incentives.
Waste biomass boilers and furnaces would have to operate at a 75% efficiency level or greater to qualify for the proposed tax credit while providing space heating, air conditioning, domestic hot water or industrial process heat.
The big question is though will this unlikely alliance last? Senator Shaheen was shortlisted as VP by Al Gore during his run for president and Senator Murkowski is the Senator filing a suit against the EPA for limiting greenhouse gas by polluters.
But yesterday Senator Crapo (R-ID) noted correctly that “prioritizing renewable wood fuels would help reduce US dependence on foreign oil” and would “help the timber industry and rural communities” and that “a third of building energy consumption is to generate heat.”
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April 28th, 2010 at 6:20 PM
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