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Massachusetts Leaders Introduce Biofuel Standards, Tax Break for Cellulosic Ethanol
6 November 2007
Massachusetts Governor Deval Patrick, Senate President Therese Murray, and House Speaker Salvatore DiMasi will introduce legislation requiring all diesel and home heating fuel sold in the Commonwealth to contain a minimum amount of renewable, bio-based alternatives in their blends, with that amount rising from 2% in 2010 to 5% in 2013.
The bill also exempts from the state gasoline tax ethanol derived from sources such as forest products, switchgrass and agricultural wastes. Massachusetts would be the first state in the nation to provide a tax incentive for cellulosic ethanol, an environmentally beneficial next-generation biofuel that Massachusetts–based companies are now rushing to bring to market.
The Governor, Speaker and Senate President also announced they would create a task force to explore other ways to promote advanced biofuels for their environmental and energy benefits as well as the economic benefits of a growing clean fuels industry based in Massachusetts. The gas-tax incentive for cellulosic ethanol is projected to create 3,000 new jobs in Massachusetts and pump $320 million into the economy as the advanced ethanol is brought to market.
November 6, 2007 in Brief | Permalink | Comments (7) | TrackBack (0)
Comments
Posted by: gr | November 06, 2007 at 09:40 AM
Biodiesel isn't readily available in Massachusetts -- in fact, there's exactly one distributor in the Boston metro area -- Burke oil. This will help spur demand and, hopefully, competition.
Posted by: stomv | November 06, 2007 at 09:51 AM
gr;
I fully agree with you. Second generation biofuels (excluding grain ethanol) should be given (States/Fed and Prov/Fed) tax break, specially for the first 10 years or up to 2020. Inverserly, fossil fuel should be overtaxed to compensate revenue loses.
Posted by: Harvey D | November 06, 2007 at 10:52 AM
Harvey, Good point on increasing the tax on fossil fuels to maintain revenue neutrality. A nice small step in the right direction, hope to see further movement. Nice announcements by CO & NJ, too.
Posted by: Kevin | November 06, 2007 at 12:09 PM
I doubt you'll find much public support for increasing taxes on gasoline when the national average is now over $3/gal and will no doubt keep going higher.
Posted by: Cervus | November 06, 2007 at 12:20 PM
Some general discontent might occur, that's why I like the idea of revenue neutral taxation. Consumers wouldn't have to pay a higher tax, in fact could pay less tax, when they purchase biofuels. I think that you may underestimate the public's willingness to support progressive measures, though. For example hybrid car sales success during the early years of introduction and a recent BBC poll showing - "Four out of five people indicated they were prepared to change their lifestyle - even in the US and China, the world's two biggest emitters of carbon dioxide. Opinion was split over tax rises on oil and coal - 44% against, 50% in favour."
http://news.bbc.co.uk/2/hi/7075759.stm
Posted by: Kevin | November 06, 2007 at 01:26 PM
If indeed the criterion for conscientious lifestyle is belt tightening, why is it we do not expect it from the Federal government? Neutrality assumes the Feds don't have to make any sacrifices - just the people.
Posted by: gr | November 06, 2007 at 06:52 PM
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A very smart trend setting bit of legislation for cellulosic ethanol. This is just what is needed to steer production of E85 toward non-food based feedstocks.
On the biodiesel - not so enthusiastic. 5% over six years seems low - but perhaps the lack of biofuel is one mitigating factor. I would also think that exempting biodiesel sales from State taxes would incentivise buyers and producers. These are ideas that should soon be considered at the Federal level.