New Bipartisan Legislation to Reduce Digester Costs for US Farmers

(Bioenergy Insight) Bipartisan legislation has been introduced by US Senators to encourage investment in biodigester and nutrient recovery systems while establishing a new market for farmers.

The Agricultural Environmental Stewardship Act, a bill brought forward by US Senators John Thune and Sherrod Brown, will help expand the market for renewable biogas by providing a 30% investment tax credit to help offset the upfront costs associated with building digesters.

“This bill is a commonsense solution to help South Dakota’s dairy producers, boost our economy, and better preserve our environment,” said Senator Thune.

“I’d like to thank Senator Brown and our colleagues in the House for this bipartisan effort to invest in sustainable biogas technology and American jobs, and I look forward to working to get this bill enacted into law.”

Senator Brown commented: “Ohio farmers are struggling to safely dispose of livestock waste that could be used for renewable energy.

The new investment tax credit would allow South Dakota dairy farms and other businesses to increase the number of biodigesters in the rural US by reducing the upfront cost.

Farms and other biodigester operators would be able to use digesters or other biological, chemical, thermal or mechanical processes to make biogas that is at least 52% methane, adding an immediate new revenue stream and dramatically decreasing pollution and runoff into waterways. READ MORE

Excerpt from Biomass Magazine: The bipartisan legislation aims to encourage investment in biodigester and nutrient recovery systems while establishing a market for farmers who already have a surplus of waste materials that can be used for biogas production. The bill provides a 30 percent investment tax credit to help offset the upfront costs associated with building biodigester systems. Qualifying projects would include digesters or other biological, chemical, thermal or mechanical processes to make biogas that is at least 52 percent methane.

Several versions of the bill have been introduced in recent years. Provisions of the Agricultural Environmental Stewardship Act were also included in the comprehensive Growing Renewable Energy and Efficiency Now (GREEN) Act, introduced earlier this year.

The American Biogas Council has spoken out in support of the legislation. "The American Biogas Council applauds the leadership of Senators Sherrod Brown and John Thune in recognizing the importance of anaerobic digesters and nutrient recovery technologies in helping farmers turn an environmental challenge into a sustainable opportunity,” said Patrick Serfass, executive director of the ABC. “Digesters and nutrient recovery technologies are materials management powerhouses which turn manure and other organic materials into energy and valuable soil amendments while reducing odor and protecting our air and water. This tax credit will provide a significant boost to agricultural producers wanting to invest in this impactful technology.” READ MORE