Bill: ANWR Revenue to Support Development of Cellulosic Ethanol, Solar, Fuel-Cells and Coal-to-Liquids
28 July 2006
US Representative Devin Nunes (R-CA) introduced the “American-Made Energy Trust Fund” bill ( H.R. 5890). The bill’s provisions would increase the tax credits for cellulosic biomass ethanol, extend tax incentives for solar and fuel cell property, promote coal-to-liquid fuel activities, and open up ANWR (Arctic National Wildlife Refuge) for oil and gas exploration and production.
The bill would take the lease and royalty revenues from ANWR and place them in a trust fund. All monies placed in the American-Made Energy Trust Fund could only be used for the development of new alternative energy technologies. ANWR’s direct revenue to the US Treasury is estimated at $40 billion during its lifetime of production at today’s oil prices.
Specifically, the fund would implement the following provisions:
Cellulosic Ethanol Tax Credit. The cellulosic-based ethanol (CBE) credit will be $0.74/gallon on top of $.51/gallon for corn ethanol blender’s credit (VEETC) for a total of $1.25/gallon. This credit will be capped at $1.25 billion. The CBE credit will disappear at $71 a barrel.
Coal-to-Liquid Tax Credit. Extends the $0.50/gallon Coal-to-Liquid (CTL) excise tax credit from the current sunset of 2009 to 2023 and sets an overall cap of 3 billion gallons. The CTL credit would be phased out as the price per barrel of oil goes above $45 and will disappear at $70 a barrel.
Solar and Fuel-Cell Investment Tax Credits. Extends Energy Policy Act residential and business solar and fuel cell investment tax credits through 2012, with enhanced modifications to the residential solar credit ($2,000 per .5kW installed). Extends the residential and business tax credit through 2012.
Advanced Biofuel Technologies Program Funding. Provides grants to improve the commercial value of forest biomass for electric energy, useful heat, transportation fuels, and other commercial purposes (authorized at $500 million).
Integrated Biorefinery Demonstration and University Biodiesel Programs Funding. Develops programs on cellulosic biomass, biofuels, bio-based products, and integrated biorefineries, as well as biodiesel fuel for electric power generation with industry and institutions of higher education.
Improved Biomass Use Grant Program Funding. Commercial byproducts from municipal solid waste (MSW) and cellulosic biomass loan guarantee program. This will assist institutions in the construction of facilities for the processing and conversion of MSW and cellulosic biomass into fuel ethanol and other commercial byproducts.
Investment in production technology, facility construction, and capacity improvements. Provides loan guarantees for four projects to demonstrate the commercial feasibility and viability of converting cellulosic biomass or sucrose into ethanol. Furthermore, provides funding for research, development, and implementation of renewable fuel production technologies.
Commitment to Clean Energy Fund. Provides financial commitment by investing in projects that avoid, reduce, or sequester air pollutants and greenhouse gasses. This includes but is not limited to such projects as advanced fossil energy, hydrogen fuel cells, advanced nuclear energy, carbon sequestration, and energy efficiency technologies.
The bill has been referred to the Committees on Resources, Energy and Commerce, and Science.
The American-Made Energy Freedom Act (H.R. 5890)
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