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U.S.
Senator Member: Finance, Agriculture, Energy, Ethics and Aging Committees |
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For Immediate
Release Thursday, May 08, 2008 |
CONTACT: Stephanie Valencia – 202-494- 8790 |
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| Sen. Salazar Cellulosic Biofuels Tax Credit Included in Final Farm Bill
WASHINGTON, DC – With fuel costs sky-rocketing, today the United States Congress took a major step to lessen the pain at the pump and help get America off its addiction to foreign oil by including Senator Salazar’s cellulosic biofuels production tax credit in the 2008 Farm Bill. The $1.01/gallon tax credit is good through 2012 for biofuels produced from renewable cellulosic feedstock, not food grain or food starch. This first-of-a-kind incentive that creates a new production tax credit for cellulosic biofuels produced for use as a fuel. “Cellulosic biofuels are an innovative and sound alternative to food grain and starch-based fuels,” said Senator Salazar. “They will not contribute to food shortages or higher food prices and will help ease the cost of petroleum-based fuels from foreign countries. In addition, importantly for farmers in Colorado and the West, they can be produced from plants that require far less water. This tax credit is a major step for our march toward cheaper fuels and greater energy independence.” Cellulosic biofuels are made by releasing the sugars locked in the cell structure of plants – wood, grasses, dedicated energy crops, agricultural waste – even yard clippings – and fermenting that sugar into fuel, or by converting the biomass into a synthetic gas which can be converted to liquid fuels or used to generate electricity. Cellulosic biofuels have the potential to displace 3.5 billion barrels of oil annually, equivalent to 60 percent of our country’s yearly consumption of oil, without affecting our need for food, feed or fiber. Cellulosic biofuels are likely to require significantly less water and fertilizer than corn; According to Department of Energy scientists, they reduce greenhouse gas emissions by 86 percent compared to petroleum. They produce four to six times more energy than is consumed in their production. This provision that is included
in the Farm Bill was based on Senator Salazar’s bill S.1618. This provision
received broad bi-partisan support in Committee and in the Senate. ###
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