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Energy Act by Staff Idaho Farm Bureau, June, 2001

WASHINGTON, D.C. -- Idaho Senator Mike Crapo introduced the Farm Energy Act last month to expand for the first time alternative fuel tax credits to include all agriculture and animal waste sources. Crapo's bill, S. 845, would spur rural development and provide farm families with outside income.

Idaho energy officials say the 1.5 cent per kilowatt hour production tax credit would be of "enormous benefit" to make production of energy from farm wastes cost-effective for the first time.

Crapo said this technology is widely accepted in Europe where over 600 systems are in operation. He added, "This process offers farmers an option for cleaning up agricultural waste which is a known source of groundwater contamination and air pollution. The revenue generated from the sale of electricity provides a source of income to offest the cleanup costs while providing important kilowatts to the power grid."

Crapo has been working with Idaho water, energy and agricultural leaders who see the energy tax credit use of agricultural and animal wastes as a major incentive for Idaho's dairy, pork, beef and other animal producers. With energy prices rising they say adding the tax credit will make it cost-effective for many producers to enter into efforts to heat wastes to burn biogas, which in turn produces power. Presently, the production tax credit is available only to wind, closed-loop biomass and poultry wastes.