Saturday, November 19, 2011

Tax Incentives for Biofuels from Organic Wastes

There are existing federal incentives for renewable fuels such as Ethanol made from Corn, food waste, Waste oil and Grease and other biomass as defined by EPA. Ethanol or bio diesel made from waste is certainly better than making it from consumer farm products such as Corn and Soybean. It is a good idea to provide federal and State incentives for making such liquid auto fuels that can replace conventional non renewable fuels such as Gasoline and Diesel fuel.

Considering the ample supply of natural gas and potential to extract large volumes from deep wells, the economic value of bio gas would stay flat and does not provide sufficient incentive for construction of farm digesters. The Dairy farms need to deal with environmental issues related to disposal of cow manure.Technology exists to clean the Bio gas and compress it to produce BIO-CNG that can fuel the farm vehicles and other public vehicles. It is time to extend the renewable fuel standards and allow the production of BIO-CNG with similar tax credit as the Bio diesel or Ethanol from Biomass.
We need all possible sources of auto fuels made from wastes to help solve the energy and environmental problems and be energy independent.

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