The manager’s amendment to the House health care reform bill was released late Tuesday. While most of the amendment is fairly standard stuff, there is one very strange new section added on page 14. It is Sec. 555. “Second Generation Biofuel Producer Credit.”
That is right. The health care reform will be used as a vehicle to change the tax credit treatment of cellulosic biofuel. Ironically, this means development of second generation biofuel will be overseen by the Secretary of HHS, although they must consult with the Secretary of Energy and head of the EPA on the matter.
While this is not my expertise, it seems the amendment would allow the tax credits meant to encourage the develop of cellulosic ethanol to be used to help develop multiple types of “second generation biofuels.” That would include biofuels made from cultivated algae or cynobacteria. At first glance, this seems like a good thing. The more possible routes explored the better chance of finding one that works. I’ve seen research indicating that hydrocarbons produced by cultivated algae may have greater potential as a economically viable future biofuel than cellulosic ethanol. Of course, this is not my expertise, so there might (and probably is) some huge industry give away that I’m missing. It does leave me wondering, though, who is/are the vote/votes this section might help gain for the overall health care reform package?
Update – David Dayen at the News Desk has more information on why the biofuel rider was included in a health care reform bill.
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found this while looking for something completely different:
As the current $7 billion alternative fuel credit to kraft pulp producers expires this year, mills could shift into the biofuel producer program, if approved by the Environmental Protection Agency, which currently lacks guidelines on the matter, a knowledgeable source told PPI Pulp & Paper Week.
Given political opposition to this year’s credit, sources believe there will be greater efforts to derail the new program, although perhaps not until later in 2010 if not 2011. Most analysts seemed to not factor in the benefit to companies until more information is known.
linky
now off to see just who their friends are
scratch that,
looks like it’s Van Hollen
est $24B in tax credits
and you called it right on the algae :D
no kucinich amendment to permit states to go single payer on their own?
That quote is about Black Liquor not algae. The pulp guys were inadvertantly given a $50 billion tax credit win fall that the IRS reaffirmed recently becuase of how the cellolusic section of the renewable producer tax credit was written so it has nothing to do with the section in the Health Care bill. Incidentally algae may have a better chance as a feedstock for ethanol (fermentation) than biodiesel because extracting the oil is too expensive.
Its a good idea to research but remember Shale oil in the 70’s, Hydrogen power under Bush? We have the GM Volt now we have hybrid cars now we can push now to make every car a Volt or Hybrid or we can keep paying for oil for decades and hope Biofuel comes through.
By the way didn’t most of the bio fuel companies fail as corn prices went up as farmers who use fuel to harvest the corn ethanol had to charge more?
This sounds like a tax giveaway to support a dying industry and maybe demand for corn.
What about using algae as an organic fertilizer we now use fertilizer made from oil I believe and as algae dries on the surface of the soil it might protect the soil from erosion plus I think we can spray the algae on with current farm equipment we would just need a strain of algae that absorbs a lot of nitrogen from the air.
yep, that’s why I said “scratch that” at 2 above
Actually Algae is a very valuable product that sells for hundreds of dollars as ingredients for supplements. To turn it into low value fuel may not be the smartest thing … I’m just saying.