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Incentive Legislation and Programs
Effective policy that promotes the greater use of biomass thermal fuels and efficient technologies can come in many forms. Use the links below to navigate throughout the page.
Investment Tax Credits for High-Efficiency Biomass Heating Systems
BTEC strongly supports tax legislation that promotes the installation of clean, high-efficiency biomass heating systems in residential, commercial, and industrial settings. Tax incentives have been introduced ranging from a $1,500 tax credit for residential heating systems, to a 30% Investment Tax Credit (ITC) for overall project costs of commercial and industrial biomass heating systems.
Active Legislation:
S. 1294 (112th Congress) – Oil Independence for a Stronger America Act of 2011
- Would establish a renewable biomass thermal energy loan program for non-federal, commercial and multi-family residential buildings. Read more at govtrack >
S. 1914 (112th Congress) - Cut Energy Bills at Home Act
- Would amend the existing Internal Revenue Code Section 25 tax credit to provide a credit ($5,000 maximum) for performance based residential energy improvements. Read more at govtrack >
Past Legislation (111th Congress, 2008-2010)
H.R. 5918 (111th Congress)- Help Businesses Save Money by Switching to Clean, Affordable Energy Act
- Would establish a 30% Investment Tax Credit for commercial and industrial biomass heating appliances. Read more at govtrack >>
S. 1643 (111th Congress) - Cleaner, Secure, and Affordable Thermal Energy Act
- Would establish a new credit for 30% of the installed cost ($4,000 maximum) for home heating conversions from fuel oil to a biomass heating system. Read more at govtrack >>
S. 3188 (111th Congress)– American Renewable Biomass Heating Act of 2010
- Would establish a 30% Investment Tax Credit for commercial and industrial biomass heating appliances. Read more at govtrack >>
H.R. 2080 (111th Congress) - American Renewable Biomass Heating Act
- Would extend the existing Internal Revenue Code Section 25 tax credit for residential biomass heating systems from $1,500 to $6,000. Read more at govtrack >>
Production Tax Credits for Renewable Thermal Energy
BTEC supports the establishment of a production tax credit (PTC) for renewable thermal energy. A similar credit already exists for the production of renewable electricity (Internal Revenue Code, Title 26, Section 45). A renewable thermal energy PTC could be implemented through a modification of the existing Section 45 credits or the development of a new section in the tax code.
Active Legislation: none yet introduced
Past Legislation (111th Congress, 2008-2010)
S. 3626 (111th Congress) - Thermal Renewable Energy and Efficiency Act (TREEA)
- Would extend the Production Tax Credit (PTC) to the renewable production of thermal energy and include construction incentives. Read more at govtrack >>
S. 1094 (111th Congress) - Renewable Energy Alternative Production Act
- Would expand the Internal Revenue Code Section 45 Production Tax Credit to include renewable thermal energy on a BTU basis in addition to renewable electricity. Read more at govtrack >>
District Energy and Combined Heat and Power Incentives
BTEC supports the development of combined heat and power (CHP) and district energy facilities that incorporate high-efficiency, biomass-fired heating systems. BTEC supports a federal energy policy that enables electric utilities to meet a portion of their renewable or clean energy requirements through energy efficiency improvements such as the use of these biomass-fired CHP systems.
Active Legislation: none yet introduced
Past Legislation (111th Congress, 2008-2010)
S. 3626 (111th Congress) - Thermal Renewable Energy and Efficiency Act (TREEA)
- Would extend the Production Tax Credit (PTC) to the renewable production of thermal energy and include construction incentives for district heating infrastructure. Read more at govtrack >>
S. 1621 (111th Congress) - Thermal Energy Efficiency Act of 2009
- Would establish a Thermal Energy Efficiency Fund that would award grants for district energy, combined heat and power, and recoverable waste energy projects. Includes biomass facilities. Read more at govtrack >>
S. AMDT 1903 to H.R. 3183 (111th Congress) - Energy and Water Development Appropriations Act of 2010
- The amendment would have incorporated into the Energy and Water Appropriations bill funds for district energy feasibility studies, technical assistance grants, and engineering and planning grants for district energy and CHP systems. Read more at govtrack >>
Thermal Renewable Energy Credits
BTEC supports the recognition and establishment of renewable energy credits (RECs) from renewable thermal energy. Thermal RECs would incentivize the production of biomass thermal energy and other renewable, carbon-neutral sources of heat. Thermal RECs could also be incorporated into federal energy policy frameworks designed to increase generation of renewable and/or clean energy.
Active Legislation: none yet introduced
Past Legislation (111th Congress, 2008-2010)
S. 1462 (111th Congress) - American Clean Energy Leadership Act
- Section 610 C would establish tradeable, telescoping renewable energy credits for the useful electric and thermal output of biomass facilities. Credits awarded based on energy efficiency. Read more at govtrack >>
S. 20 (111th Congress) - Clean Energy Standard Act of 2010
- Would establish tradeable, telescoping renewable energy credits for the useful electric and thermal output of biomass facilities. Credits awarded based on energy efficiency. Read more at govtrack >>
Federal Agency Programs
Community Wood Energy Program
BTEC supports federal funding of the Community Wood Energy Program (CWEP) at the fully authorized level of $5 million/yr. Authorized under section 9013 of the 2008 Farm Bill, CWEP is a competitive grant program that assists local governments with the capital costs of installing high-efficiency, biomass-fueled heating systems. CWEP provides states, counties and municipalities with matching grants through the U.S. Department of Agriculture to offset the costs of installing heating systems that utilize locally available biomass resources, such as wood chips, wood pellets, or other biomass energy feedstocks.
Biomass Crop Assistance Program
The USDA Biomass Crop Assistance Program (BCAP) provides financial assistance to producers or entities that deliver eligible biomass material to designated biomass conversion facilities for use as heat, power, biobased products or biofuels.
BTEC strongly supports the goals of the BCAP program. In a very short space of time, the use of this program has proven critical to improving the economics of bringing biomass feedstocks to market.
More information:
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