Thursday, June 19, 2014

Russell bill to expand biofuel production passes Assembly

            Assemblywoman Addie J. Russell announced that legislation she authored to expand tax credits to include biofuels produced from products that are abundant in the North Country passed the Assembly (A.9525). The bill is aimed at bolstering the biofuel industry in the North Country and providing a new source of income for local farmers and other industries.
                                             
            “The demand for cleaner, cheaper power is strong and is an area of huge potential growth for the North Country,” Assemblywoman Russell said. “By utilizing resources like wood and agricultural waste, North Country businesses can lead the way in creating a new industry in New York that keeps our fuel dollars here instead of shipping them overseas.”

The legislation expands a business tax credit to biofuel producers. Current law provides a credit of $0.15 per gallon of biofuel (B100) produced. The legislation passed today adds an additional credit of $0.25 per gallon of cellulosic ethanol or renewable fuel oil produced and provides a new credit of $15 per ton of densified biofuel.

Densified biofuel is solid fuel derived by a mechanical densification and refining of biomass sourced from woody or agricultural feedstocks, such as wood pellets used commonly in the North Country.  Manufacturers of wood pellets may now be eligible for the tax credit.  Pellet stoves and boiler systems have become increasingly popular ways to heat homes and commercial and governmental buildings. 

            Pat Curran of Curran Renewable Energy in Massena said, “This bill is a strong step forward in enhancing the business climate of the St. Lawrence Valley and counties throughout New York State. It will give land owners an opportunity to see value in their low-grade timber crops that they have been growing. The tax bill that Addie Russell supports will help job growth in numerous ways beyond the agricultural and forest sectors. It will help create stability and a bright future in an evolving market.”

Eric Carlson President & CEO of the Empire State Forests Products Association said, "This legislation strikes at the heart of helping homeowners, schools, and businesses converting from imported fossil fuels to locally sourced wood heating. New York has abundant forests that need these markets to improve forest health using sustainable forest practices"

Cellulosic ethanol is ethanol produced from biomass feedstocks not used for food production, including cellulosic components of separated food waste and byproducts from agricultural waste.  Such biomass feedstocks may include include switch grasses, willows, agricultural and forestry residues, clean wood and waste woods, pulp and paper mill wastes or extracts, and non-recyclable paper.

“We already have companies in the North Country producing these kinds of products that will be able to expand and create jobs as the market grows,” Assemblywoman Russell said. “This legislation is the boost needed to help this innovative domestic industry compete against traditional fossil fuels.”

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