American Biogas Council Welcomes Passage of Cut Inflation Act

The American Biogas Council (ABC) welcomed the passage of the Inflation Reduction Act by the US Senate and House of Representatives – it passed the latter on August 12 with a majority of 13 (220-207) . All Democrats voted for and all Republicans opposed the law, and it will head to President Joe Biden for signature.

Passage of the bill would provide new, expanded tax credits for biogas projects, expand an alternative fuels tax credit, and restore a tax on certain oil companies to fund the U.S. Agency’s Superfund program. Environmental Protection. In addition, it would introduce a 1% excise tax on stock buybacks and a 15% minimum corporate tax, potentially hitting some of the largest waste companies in the United States.

ABC commented that Congress has recognized the critical role that biogas systems – which recycle organic waste into renewable energy and natural fertilizers – play in society. He said we can’t “accelerate the construction of this critical infrastructure fast enough” because there are only two ways to recycle the billions of tons of organic waste the United States produces each year – “the IRA will help us to press the pedal”.

He observed prior to this bill that the biogas industry had only received one- to two-year extensions of a tax credit that served a sector of the biogas industry, and that this was not a long term solution as it was in competition with other industries. who benefit from long-term tax credits when they seek investment for projects that take years to build. “For the first time, this bill gives developers and financiers the certainty and competitive advantage that will fuel the growth of the biogas and clean energy industries for years to come,” ABC commented.

The United States has 2,300 operational biogas systems, but only about 15% of biogas potential has been realized in the United States according to ABC. This despite the fact that the country produces 65 million tons of food waste, manure and waste from 8 billion cows, chickens, turkeys and pigs, and over 11 trillion gallons of sewage every year. . So he said the country “needs to build more biogas systems to recycle this material into basic renewable energy and soil products, and we can do that 24 hours a day, 365 days a year with 95% reliability. “.

ABC observed that “for the first time, the tax credit system in the bill supports all biogas sectors” – wastewater, farm, food waste and projects that generate renewable electricity, natural gas renewable and renewable heat. An additional $1.965 billion to support the existing Rural Energy for America program “will help our industry work with agriculture to increase sustainability and productivity.”

About Marco C. Nichols

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