Bills to extend tax credits benefiting biofuels introduced

By Erin Voegele | December 16, 2013

On Dec. 12, Rep. Scott Peters, D-Calif., introduced two bills that would benefit the biofuels industry. One, H.R., 3758, aims to extend the second generation biofuel producer credit and the special allowance for second generation biofuel plant property. The other, H.R. 3757, would extend and increase the tax credit for research and development.

H.R. 3757, also known as the “Second Generation Biofuel Extension Act of 2013,” would extend the second generation biofuel tax credit for one year, extending the expiration date from Jan. 1, 2014 to Jan. 1, 2015. It would also extend the special allowance for second generation biofuel plant property for one year, though Jan. 1, 2015.

According to information released by Peters, H.R.3758, or the “Igniting American Research Act,” would make the tax credit for research and development permanent. It is currently scheduled to expire at the end of the year. More specifically, the bill would extend the research credit through 2014 and make the Alternative Simplified Credit permanent and increase it from 14 percent to 20 percent.

A statement released by Peters states that the Information Technology and Innovative Foundation has estimated that raising the ASC would increase gross domestic product by $66 billion and create more than 150,000 jobs. The measure is also expected to lower barriers to collaborative research and encourage energy research and biotechnology research consortia.

The Algae Biomass Organization has spoken out to thank Peters for the introduction of the Second Generation Biofuel Extension Act of 2013, noting that Peters chairs the Congressional Algae Caucus. "ABO thanks Congressman Peters for his leadership and his vision for American energy security and economic development," said Mary Rosenthal, executive director of ABO. "America needs new sources of energy, and the advanced biofuels tax credit has provided confidence to companies and investors that are bringing sustainable biofuels into the marketplace. Extending this valuable policy will accelerate the commercialization of competitive, domestically produced fuel from algae and other feedstocks."

The Renewable Fuels Association has applauded introduction of the bill. “Rep. Peters understands the need for Americans to have access to a renewable, low-cost alternative to gasoline and should be commended for taking a stand and fighting for the future of next generation biofuels,” said Bob Dinneen, president and CEO of the RFA. “Ethanol has decreased gas prices an average of $1.00/gallon in 2012/2013, created and sustained over 383,000 jobs, increased consumer choice at the pump, and created a more energy independent America. Rep. Peters clearly understands the need to continue this successful program. Investors need certainty and extending the tax credits for second generation biofuels will boost investment and innovation in cellulosic and advanced biofuels.”

Both bills were referred to the House Committee on Ways and Means. To date, Reps. Susan DelBene, D-Wash.; Michael Honda, D-Calif.; Zoe Lofgren, D-Calif.,; and Patrick Murphy, D-Fla., have signed on to cosponsor H.R. 3757, while H.R. 3758 currently has no cosponsors. 



1 Responses

  1. anonymous



    National Algae Association responds to Department of Energy Request For Information DOE-FOI-1013 FOR IMMEDIATE RELEASE PRLog (Press Release) - Nov. 14, 2013 - HOUSTON -- DOE Issues Request for Information for Accelerating the Deployment of Advanced Biofuel, Bioproducts, and Biopower Technologies “In Washington,the Bioenergy Technologies Office is seeking stakeholder feedback regarding bioenergy technology validation to accelerate the deployment of advanced biofuel, bioproducts, and biopower technologies. BETO is specifically interested in information technologies that are ready for technology validation at a technology readiness level (TRL) of 6 or higher.” The details of this Request for Information, DOE-FOI-1013, speak for themselves: “Because information received in response to this RFI may be used to structure future programs and FOAs and/or otherwise be made available to the public, respondents are NOT to provide any information in their responses which may be considered business sensitive, proprietary or confidential.” How much new information is needed? After all, the DoE has already been researching algae for over 60 years. How many conferences do the DOE and government researchers need to attend before something is commercialized? How many algae caucus committees need to be organized and which one or ones will take on the initiative to change the Congressional Mandate from only funding algae research in university laboratories to the deployment of algae production technologies? The algae production industry should be ready to take existing algae technologies that can prove scalability outside the lab and use them in commercial algae production. The algae industry is big enough to include all algaepreneurs, commercially-minded researchers and private industry; it is NOT exclusive to the government, researchers or federal contractors. The algae industry is made up of algaepreneurs and private business that are committed to the commercial algae production industry, NOT specifically for more algae research. They are committed to create value in ‘existing algae technologies’ before new enhancements are made. The algae production industry is open to anyone that is interested in commercial algae research, commercial algae production and above all results that can help the algae industry in commercial scale-up. After interviewing past algae research, equipment and private industry applicants applications for algae grants through the DOE Biomass Program has been nothing short of unacceptable. Most algaepreneuers have little to no confidence in the Department of Energy and, in particular, the biomass programs it leads. On behalf of NAA and its members, we are publicly asking the DOE why they need they need more validation of and input from the private business community? After all, didn’t you get what we all paid for over the last 60+ years, and after spending over $2.5 billion dollars? Or is this your way of admitting that you used the money to support university-based research, that the universities were allowed to stock their labs with the then-latest equipment available for the project du jour, that the research has not resulted in what you told us and 60 years of governmental administrations it would, that the equipment we purchased is now obsolete and now you need to come to us to get you out of your dilemma? We need to get you out of the way. It is time for the DOE to be stripped of its alternative energy biomass program and a new department – the Department of Alternative Energy (“DAE”) be created, to be led by algaepreneurs and not career researchers, to manage and administer the development of algal biomass and truly use "transformative and disruptive technologies". Contact:


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