[Congressional Record Volume 147, Number 103 (Monday, July 23, 2001)]
[Senate]
[Pages S8065-S8066]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRASSLEY:
  S. 1219. A bill to amend the Internal Revenue Code of 1986 to include 
swine and bovine waste nutrients as a renewable energy resource for the 
renewable electricity production credit, and for other purposes; to the 
Committee on Finance.
  Mr. GRASSLEY. Mr. President, for years I have worked to decrease our 
reliance on foreign sources of energy and accelerate and diversify 
domestic energy production. I believe public policy ought to promote 
renewable domestic production that burns clean energy. For this reason, 
I will be introducing the Providing Opportunities With Effluent 
Renewables, or POWER Act today which cultivates another homegrown 
resource: swine and bovine waste nutrients.
  Section 45 of the Internal Revenue Code provides a production tax 
credit for electricity produced from renewable sources. Currently, the 
production tax credit is available for wind, closed-loop biomass, and 
poultry waste. The

[[Page S8066]]

POWER Act will modify Section 45 to include swine and bovine waste 
nutrient as a renewable energy source.
  The benefits of swine and bovine waste nutrient as a renewable 
resource are enormous. Right now, there are at least 20 dairy and hog 
farms in the United States that use an anaerobic digester or similar 
systems to convert manure into electricity. These facilities include 
swine and/or dairy operations in California, Wisconsin, New York, 
Connecticut, Vermont, North Carolina, Pennsylvania, Virginia, Colorado, 
Minnesota, and my home State of Iowa.
  By using animal waste as an energy source, a livestock producer can 
reduce or eliminate monthly energy purchases from electric and gas 
suppliers. In fact, a dairy operation in Minnesota that uses this 
technology generates enough electricity to run the entire dairy 
operation, saving close to $700 a week in electricity costs. This dairy 
farm also sells the excess power to their electrical provider, 
furnishing enough electricity to power 78 homes each month, year round.
  The benefits of using an anaerobic digester do not end at electricity 
production. Using this technology can reduce and sometimes nearly 
eliminate offensive odors from the animal waste. In addition, the 
process of anaerobic digestion results in a higher quality fertilizer. 
The dairy farm I referenced earlier estimates that the fertilizing 
value of the animal waste is increased by 50 percent. Additional 
environmental benefits include mitigating animal waste's contribution 
to air, surface, and groundwater pollution.
  With all the problems that this type of opportunity remedies, I'm 
sure there will be a number of folks wondering why we haven't tried 
this before. The reason is, even if we had provided swine and bovine 
producers with tax incentives to produce renewable energy, they 
probably wouldn't have had access to the capital necessary for 
infrastructure development.
  In fact, there was a segment on National Public Radio last week 
addressing the topic of anaerobic digester energy production. A 
professor from Cal State University who is an expert on anaerobic 
digesters was interviewed. The professor explained that the main reason 
farmers have not pursued this type of opportunity is cost.
  For that reason, in addition to the tax credit opportunity I'm 
providing under section 45, I'm also going to guarantee within the 
POWER Act that funds be made available under the Environmental Quality 
Incentives Program for the development of anaerobic digesters.
  Currently, the Environmental Quality Incentives Program provides 
funding for technical, educational, and financial assistance to farmers 
and ranchers for soil, water, and related natural resource concerns on 
their land. A component of the program allows for improvements to farm 
manure management systems. The POWER Act will guarantee that payments, 
up to two years worth of funding which currently amount to $100,000, 
would be made available to producers for ``cost sharing'' opportunities 
related to anaerobic digester implementation.
  Using swine and bovine waste nutrient as an energy source can 
cultivate profitability while improving environmental quality. 
Maximizing farm resources in such a manner may prove essential to 
remain competitive and environmentally sustainable in today's livestock 
market.
  In addition, more widespread use of this technology will create jobs 
related to the design, operation, and manufacture of energy recovery 
systems. The development of renewable energy opportunities will help us 
diminish our foreign energy dependence while promoting ``green energy'' 
production. This tax/farmbill proposal is real ``win-win'' situation 
for America and for our livestock producers.
  Using swine and bovine waste nutrient is a perfect example of how the 
agriculture and energy industries can come together to develop an 
environmentally friendly renewable resource. My legislation will foster 
increased investment and development in waste to energy technology 
thereby improving farmer profitability, environmental quality, and 
energy productivity and reliability.
  Why should we promote swine and bovine waste nutrient as an energy 
source? Consider the recent electricity shortage in California, the 
sky-high prices at the pump throughout last year and the soaring cost 
of home heating fuel and natural gas this winter. We have an obligation 
to consumers across the country to accelerate the nation's production 
of homegrown, clean-burning, renewable sources of energy.
  The POWER Act is good for agriculture, good for the environment, good 
for energy consumers, and promotes a good, make that great, renewable 
resource that will reduce our energy dependence on foreign fuels. It is 
my hope that all of my colleagues join with me to advance this 
important piece of legislation.
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