Wisconsin Ag Connection - Kind Introduces Legislation to Promote Biogas Development

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Kind Introduces Legislation to Promote Biogas Development
Wisconsin Ag Connection - 04/27/2007

Wisconsin Congressman Ron Kind has introduced legislation that would take billions of gallons of fossil fuels out of use by developing renewable energy from animal waste. The bill would provide tax incentives and guaranteed loans for small businesses to promote biogas, which is a substitute for natural gas created by the anaerobic digestion of animal waste and other organic bi-products.

"By providing modest federal support for this technology, we can jump-start the development of renewable energy from what is now regarded as waste," Kind said. "I recognize that biogas is just one part of our larger course to energy independence, but its one that will invest in rural communities, protect our environment from harmful greenhouse gases, and grow our economy."

Biogas is produced through the anaerobic digestion of animal wastes and other agricultural or organic wastes and is composed of at least 60 percent methane. The La Crosse Democrat says methane itself is 23 times more powerful than carbon dioxide as a greenhouse gas, and can be burned to generate electricity. Biogas can be used as is on the farm, co-located with another facility such as an ethanol plant, or it can be cleaned up to be used as a renewable substitute for natural gas, propane or other fossil fuels.

Kind's bill would encourage greater production of biogas for energy purposes by providing biogas producers with a tax credit of $4.27 for each unit of biogas they produce; providing loans, loan guarantees, and/or grants to aid the collection and transport of biogas; and create a counter-cyclical safety net for biogas producers by providing payment from Commodity Credit Corporation funds to qualified biogas producers only when the annual average daily prices of natural gas falls below a certain level.

Wisconsin already has 16 farm digesters in operation, generating enough electricity to power 4,000 homes. It is estimated if all 186 farms in the state with 500-999 cattle installed digesters, it would generate enough energy to power 22,000 homes. This also does not include the many farms with fewer cows.

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