Nebraska Senator Ben Nelson has introduced what he calls “groundbreaking legislation that offers tax breaks and guaranteed loans for small business for the development of bio-gas derived from animal waste.”
 

Biogas, a natural gas substitute that is created by the anaerobic digestion (AD) of animal wastes, is composed of at least 60%  methane, the principal ingredient in natural gas.  Biogas can be used as is on the farm, co-located with an ethanol plant, and cleaned up to be used as a renewable substitute for natural gas, propane, or other fossil fuels.  Nelson acknowledges that the technology to break down animal wastes to create bio-gas already exists and that it needs encouragement from the federal government to become a commercially-viable alternative to natural gas.
 

The bill, the Biogas Production Incentives Act of 2007, would encourage greater production of biogas for energy purposes by doing a number of things and would provide bio-gas producers with a tax credit of $4.27 for every mmBtu of biogas produced.
 

Biogas production also offers environmental benefits such as a reduction in the greenhouse gas emissions of both carbon dioxide and methane, as well as improved water quality through better manure management.
 

Sen. Nelson says the bill “would provide loans, loan guarantees and/or grants for the multi-farm collection and transportation of qualified energy feedstock from smaller livestock operations to a qualified facility, or for the purchase or construction of equipment or facilities for collection and transportation,” as well as creating a counter-cyclical safety net for biogas producers by providing payment from Commodity Credit Corporation funds to qualified biogas producers only when the annual average daily prices of natural gas falls below a certain level.
 

“We’ve made great strides in developing an ethanol industry in Nebraska and we should do more to diversify and expand our production of bio-fuels and renewable energy. My legislation will put into place tax incentives and financial support for large scale and small scale producers to get involved in biogas production and help America win the battle for energy independence.”