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CHAIRMAN'S MESSAGE
National economic conditions are adding to the overwhelming burden that biomass power plants currently face, and removing critical tax credits at a time when many facilities are already on the brink of closure would deal a devastating blow to the biomass power industry. BPA's goal is to demonstrate the level to which biomass power contributes to the goal of revitalizing the economy with clean-energy jobs.
While the failure to extend these tax credits would have a devastating impact on the biomass power industry, the potential for growth over the next five years remains great. BPA is confident that Congress recognizes the importance of clean, renewable electricity and that they will continue to invest in clean, renewable biomass power.
Biomass Power Association Steering Committee
Bob Cleaves
Bill Carlson
Frazier Blaylock
Joe Dalton
Mike Whiting
Paula Soos
Phil Reese
Scott Higginson
Sylvain Aird
Tom Spies
Van Boyette
Wade Mosby
Contact Us
100 Middle St
Phone: 207-228-7376
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THE MAINE BIOMASS POWER INDUSTRY IS A SNAPSHOT OF THE CRISIS
The state of Maine will lose 897 jobs if Congress fails to extend the 2004 production tax credits awarded to biomass power. In addition to those jobs, Maine will forfeit $17.534 million in total annual payroll and benefits; $102.4 million in annual fuel sales; and $2.244 million in annual tax revenues to state and local governments.
Currently, nine biomass power plants are producing 273 megawatts of clean, renewable electricity in Maine, but all of these plants are operating without long-term power contracts. This makes each plant extremely susceptible to market volatility, with little wiggle room for meeting basic operational costs. Already, three large biomass power plants in Maine have been forced to close down – with others on the brink.
Unfortunately, Maine is only a snapshot of the potential crisis looming nationwide in the biomass power industry. California is facing a similar situation with numerous plants fighting to stay afloat in today's economy. By breaking down the facts and figures surrounding the expiration of these production tax credits, the Biomass Power Association hopes to generate strong support in Congress for extending the tax credits and investing in the biomass power industry.
Visit http://www.biomasspowerassociation.com/ to learn more.
**ACTION ALERT**
The Biomass Power Association is urging members to write their local Congressman to ask for their support for the extension of critical production tax credits for biomass power. The effort aims to inform Members of Congress about the direct impact that these tax credits have on creating jobs and revenue in their districts.
The Biomass Power Association is asking for fairness in tax credits awarded to all renewable sources of energy. In 2004, renewable sources of energy, such as wind and geothermal, received production tax credits lasting 10 years, while biomass power received tax credits lasting only five. BPA is asking Congress to extend those biomass tax credits for an additional five years to match those awarded to wind and geothermal.
Second, past legislation provided biomass with only half the tax credit available to wind and other renewable. There is no legitimate public policy reason for this disparate treatment. To the contrary, it violates basic principles of technology neutrality, and places Congress in the position of picking "winners and loosers" among renewable technologies who often compete for long-term power purchase agreements.
Please continue to urge your local Representative to support the biomass power industry by co-sponsoring tax credit extensions in H.R. 2528, sponsored by Congressman Meek, and S.870, sponsored by Senator Lincoln. Write Congress to tell them that America needs to invest in clean, renewable biomass power.
WHITE HOUSE ADDRESSES CLIMATE CHANGE AT THE UNITED NATIONS
Addressing the United Nations, President Obama reiterated his support for a global effort to combat climate change in advance of the United Nations Climate Change Conference in Copenhagen (COP 15). At the same time, Energy Secretary Steven Chu emphasized that a green-energy economy will be the foundation for future economic prosperity. But according to the Washington Post (9/18), the United States is already facing criticism that Congress is "dragging its feet" on climate change, and
European leaders have issued a joint statement urging the U.S. to pledge deeper cuts in greenhouse gas emissions.
It will be interesting to see the strength of the global agreements resulting from COP 15 in December. While it still looks like climate legislation will be pushed to next year, the Administration's commitment to clean energy seems to remain strong. This week Senator Kerry (D-MA) and Senator Boxer (D-CA) plan to introduce a "sweeping proposal" to reduce greenhouse gases. BPA will keep a close eye on Congress throughout the fall to inform membership of the latest developments.
POSITIVELY CLEAN ENERGY – BIOMASS
Dr. Gregg Morris' published the OpEd, "Positively clean energy – biomass," in the San Francisco Chronicle on Monday, September 21. In his piece, Morris explains exactly how biomass power can reduce greenhouse gases and why California needs to stop denying biomass credit as a clean energy source. Morris writes:
"Failing to consider forest residue as a renewable, clean-energy source would virtually kill a potentially valuable tool for reducing greenhouse gas emissions. It would also ignore overwhelming scientific evidence that shows biomass energy can return significant carbon-sequestration benefits.
Claims that biomass energy is anything but carbon-neutral ignore the fact that not all carbon is created equal, at least in terms of the global carbon cycle. When fossil fuels are burned to produce energy, there is a net increase in carbon released to the atmosphere, because it takes carbon that was stored safely underground and adds it to the atmosphere. That kind of carbon is called fossil carbon. ..."
Dr. Gregg Morris is the director of the Green Power Institute, and the president of Future Resources Associates, Inc. Click Here to read his entire piece.
HOT ITEMS: WHAT TO WATCH FOR IN THE NEXT TWO WEEKS
· Congress Must Support the Clean Energy Workforce: Check out Bob Cleaves' latest column in the October issue of Biomass Magazine. Cleaves explains the importance of extending the 2004 production tax credits for the biomass power industry. Click Here to read more.
· New Video "Energy for America": The Biomass Power Association will be mailing DVDs of "Energy for America" to our members. The video gives viewers an up-close look at the unique process of recycling millions of tons of organic waste to produce clean renewable electricity that reduces greenhouse gases, protects forests, and creates new jobs. "Energy for America" will also be hosted on BPA's website at http://www.biomasspowerassociation.com/.
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