[Congressional Record Volume 150, Number 130 (Monday, October 11, 2004)]
[Extensions of Remarks]
[Page E1930]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                RENEWABLE ENERGY FINANCING INCENTIVE ACT

                                 ______
                                 

                         HON. STEPHANIE HERSETH

                            of south dakota

                    in the house of representatives

                        Friday, October 8, 2004

  Ms. HERSETH. Mr. Speaker, I rise today to introduce a bill that will 
provide important incentives for farmers and landowners across the 
country to invest in the construction of renewable fuels facilities.
  This bill, called the Renewable Energy Financing Incentive (REFI) Act 
is a carefully crafted piece of legislation that would give landowners 
in South Dakota and across the country additional tax planning tools 
when they chose to dispose of real property. At the same time, it would 
encourage investment in renewable fuel production facilities.
  Throughout the United States, the ethanol industry is growing at an 
impressive rate. In fact, over the past several decades, it has been 
one of the most dramatic success stories in manufacturing in this 
country.
  In 1980, there were only 175 million gallons of ethanol produced in 
the United States. In 2004, we will produce more than 3.1 billion 
gallons of ethanol in 74 different processing facilities. In addition, 
dozens of new plants are either under construction or in meaningful 
planning stages across the country. According to industry sources, 30 
percent of all gasoline sold in the United States this year will be 
blended with ethanol. That is an impressive record of growth.
  Even more significant, much of this growth is driven by the 
agricultural producers who actually grow the primary feedstock. In 
dozens of instances, corn farmers and other agricultural producers have 
banded together to form cooperatives and other ventures that produce 
ethanol. This has the double benefit of increasing the compensation 
they receive for the corn they grow and also providing them with income 
from the ethanol and the byproducts these facilities produce.
  This cooperative formula is one of the few tools that have driven 
real economic development in rural counties throughout the heartland in 
recent years. This legislation would provide additional incentives and 
tools to further promote this development. It would allow owners of 
real property to avoid capital gains upon the sale of that property, 
provided they then invest those proceeds into a qualifying renewable 
fuels facility.
  This bill will provide several benefits throughout rural America and 
across the country. It will help farmers and ranchers diversify their 
operations through investment in value-added agriculture. It will 
extend to all landowners an additional option when they seek to sell 
their real property. Often, in my part of the country, older 
individuals are forced to sell their property as they retire from 
farming and ranching. They then must invest their proceeds from this 
sale in order to provide themselves a retirement income. This bill will 
enable them to avoid capital gains taxes and provide them with an 
equity stake in a burgeoning industry.
  It also will provide a new revenue stream for the ethanol and other 
renewable fuel facilities that are in discussion and development stages 
today. This will, in turn, reduce our dependence on foreign sources of 
oil, promote increased use of clean-burning renewable energies, and 
provide new economic growth opportunities throughout rural America. I 
urge my colleagues to support this legislation and yield back the 
balance of my time.

                          ____________________