A bill introduced in the US House of Representatives would establish a new tax credit covering 30% of the cost of constructing biomass energy facilities, in a bid to spur plants capable of processing material cleared from forests to reduce wildfire risk.
The Biomass Facility Construction Act (H.R. 9746), introduced on 16 July by California congressman Kevin Kiley, would allow new facilities to claim the construction credit while also receiving the existing tax credit for electricity generated from biomass. Kiley's office said pairing incentives for both construction and operation is intended to drive development of new bioenergy capacity able to absorb the woody material produced by wildfire mitigation work.
'Our forests are overgrown and in desperate need of cleanup,' Kiley said, arguing that accumulated limbs, dead wood and undergrowth provide additional fuel for wildfires.
The bill lands against a backdrop of long-term decline in California's biomass power sector. California Energy Commission figures show the industry peaked in the early 1990s, when 66 direct-combustion plants operated with a combined capacity of around 800 MW. Capacity has fallen since government price supports expired in 1996, and the CEC estimates roughly 30 direct-combustion plants totalling about 640 MW remain in operation today.
US bill proposes 30% construction tax credit for biomass plants
