Group proposed major shift in biofuels incentives

iStockAnalyst.com
Sunday, August 15, 2010 9:56 AM
(Source: The Gazette - Cedar Rapids, Iowa)
By Dave DeWitte, The Gazette, Cedar Rapids, Iowa

Aug. 15--CEDAR RAPIDS The Union of Concerned Scientists is floating a proposal to revamp the nation's biofuels incentives that is sure to upset some corn growers.

Senior Scientist Jeremy Martin of the Union of Concerned Scientists was in Cedar Rapids this past week to explain the group's 'Billion Gallon Challenge.' The policy would shift tax credits from regular corn-based ethanol to biofuels that provide an even greater reduction in global warming emissions.

It would provide investment tax credits and loan guarantees to support the first 1 billion gallons of annual production capacity of cellulosic biofuels.

As existing tax credits for biofuels expire, it would replace them with a new 'Biofuels Performance Tax Credit.' The new tax credit would amount to $10 per million btu (British thermal units -- a measure of energy content). It would support all biofuels based on their performance in replacing oil and reducing global warming emissions.

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