April 20
Sen. Ben Nelson, D-Neb., has introduced a bill that would encourage development of biogas energy from livestock waste through tax incentives and guaranteed loans for small businesses.
"The technology to break down animal waste to create biogas already exists, but it needs encouragement from the federal government to become a commercially viable alternative to natural gas," Nelsons said. "This new energy source would benefit rural communities and the environment while lessening our dependence on fossil fuels."
Biogas, which is composed of at least 60 percent methane, could be used on the farm or to supply energy to a nearby industrial facility, or it could be cleaned up to be used as a renewable substitute for natural gas, propane or other fossil fuel, Nelson said.
The Biogas Production Incentives Act of 2007 would provide biogas producers with a tax credit of $4.27 for every 1 million British thermal units of biogas produced. It would also provide for loans, loan guarantees or grants for collecting and transporting energy feedstock from multiple farms to a facility for making biogas. And it would provide for government payments if the annual average daily prices of natural gas fall below certain levels.
Biogas production would offer environmental benefits including a reduction in greenhouse gas emissions of methane and carbon dioxide, Nelson said. It would also improve water quality through better manure management.
The Nebraska Farm Bureau, Nebraska Cattlemen and the Nebraska Pork Producers Association all have endorsed the plan.
"One of the major obstacles for biogas development in agriculture is the significant costs associated with it," Farm Bureau President Keith Olsen said.
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