[Congressional Record Volume 145, Number 104 (Wednesday, July 21, 1999)]
[Senate]
[Page S8957]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. STEVENS:
  S. 1411. A bill to amend the Internal Revenue Code of 1986 to extend 
the credit for producing electricity from certain renewable resources; 
to the Committee on Finance.


                       Fish Oil Heat Act of 1999

  Mr. STEVENS. Mr. President, today I introduce the Fish Oil Heat Act 
of 1999. This act would provide a tax credit for fishing operations who 
choose to burn waste fish oil rather than diesel fuel. Fishing 
operations would earn a tax credit for each Btu of heat produced by 
this alternative fuel source. This measure is similar to others that 
are before the Senate in that it encourages businesses to use 
alternative energy sources at hand rather than relying solely on fossil 
fuels.
  This bill would amend section 45 of the Tax Code to include fish oil 
as a qualified energy producing resource. Fishing operations, whether 
on shore or at sea are able to use fish oil to keep their working areas 
warm and to process the fish they harvest. My legislation would expand 
the current Tax Code to provide an incentive to use alternative energy 
sources by including heat generated by waste fish oil under section 45. 
As it stands now, the Tax Code allows tax credits for electricity 
produced by wind or through a closed loop biomass system. Fishing 
operations are often isolated from energy grids and they do not rely on 
the organic biomass systems for energy, so they cannot take advantage 
of the electricity producing tax credit.
  Several Senators have introduced bills to expand the current Tax Code 
to allow for new energy producing tax credits from alternative 
resources. However, the tax credits are limited to a single form of 
energy--electricity. My bill would take into account a different form 
of energy--heat. This provision would give the same amount of tax 
credit for a single Btu of heat produced as the current Tax Code allows 
for a kilowatt hour of electricity produced. This will create equity 
within the tax system and across industry lines.
  Fishing operations in my State are often isolated and rely on the 
resources they have at hand. Unlike many of the industries in the 
contiguous United States, fishing operations in Alaska can't connect to 
area wide power grids. They rely on fossil fuels to run generators for 
heat and electricity. The fuel must be transported to the operation, 
often by barge or small boat. This bill would encourage these isolated 
fishing operations to collect and use the waste fish oil that they 
generate to keep their business warm. This would cut down on the amount 
of fossil fuel being transported to these distant locations, thus 
reducing the chances of fuel spills. Additionally, by encouraging the 
fishing operations to burn the waste oil they generate, we can reduce 
the amount of fish oil going to waste.

                          ____________________