Legislation

PFI’s Government Affairs Committee works to serve its members’ businesses by advocating the pellet industry’s interests to all levels of government and protecting the industry from restrictive public policy and regulation.  The Government Affairs Committee’s dedicated member involvement has been a key component in the success of PFI.  PFI members have voluntarily dedicated countless hours to the GA Committee and their hard work is paying off for the industry.

For a primer on state legislative incentives and assistance programs for wood pellets that could potentially be replicated in other states, please see PFI – Examples of State Legislative Incentives.

Pellet Stove Tax Credit Details

In December 2010, President Obama signed into law a $858 billion tax package that kept current tax rates in place and extended a series of tax credits geared toward boosting the sluggish economy. Included in this package was the extension of a tax credit for biomass heating appliances that was set to expire  However, Congress did decrease the benefit to consumers that was in place from 2009-2010 under the American Recovery and Reinvestment Act and added further restrictions.

The new tax credit as outlined provides:

·    10% credit for the purchase of biomass heating appliance in 2011, capped at $300
·    Removal of the lower heating value level (LHV) efficiency measurement
·    Credit applies to purchase price only and is not extended to installation

Many retailers have expressed the importance of the tax credit as a an incentive for customers to purchase clean, efficient pellet stoves. The impact was particularly noticeable in the months prior to the anticipated expiration at the end of 2010. PFI will continue to work to see this tax credit restored to the the ‘09-’10 levels, and to be extended in future years.

Legislative Priorities

Production Tax Credit for the Manufacturing of Pellets

Extension of the 30% Tax Credit for 75% Efficient Biomass Appliances

CAFO Fuel Switching from Fossil Fuels to Biomass

Pro Thermal Energy Incentives in Climate Change/Energy Legislation

Legislation of interest to PFI

S. 1094, the Renewable Energy Alternative Production Act (REAP Act), introduced by Sen. Wyden (D-OR) – This legislation included language for a Production Tax Credit (PTC) for the manufacturing of wood pellets.

H.R. 2080, the American Renewable Biomass Heating Act, introduced by  Rep. Hodes (D-NH) – This bill calls for an increase in the existing tax credit for biomass appliances from $1,500 to $6,000.

S. 3188, the American Renewable Biomass Heating Act, introduced by Sen. Shaheen (D-NH) – This legislation would provide an investment tax credit for biomass heating property.

S. 1643, the Cleaner, Secure, and Affordable Thermal Energy Act, introduced by Sen. Snowe (R-ME) and Sen. Bingaman (D-NM) – This legislation would allow fuel switching from home heating oil and natural gas to biomass for heating.

H.R. 2454 – Authorization Language for Changeouts amendment accepted into the base bill in House Energy and Commerce Committee by Rep. Welch and Rep. Inslee – This language would establish a $20 million program to replace old, dirty burning stoves for EPA certified appliances.  This legislative effort was spurred in part by the lobbying efforts of the 2009 GAA attendees.

Authorization Language for Changeouts included the Senate Climate Change bill as part of the Chairman’s Mark (Sen. Boxer (D-CA) – This language would establish a $20 million program to replace old, dirty burning stoves for EPA certified appliances.

H.R. 4227, Incentives to Increase Use of Renewable Biomass Act, introduced by Rep. Schrader (D-OR) – This bill would allow fuel switching from fossil fuels to biomass.

H.R. 5019 and S. 3434, the Home Star Energy Retrofit Act, introduced by Rep. Welch (D-VT) and Sen. Bingaman (D-NM) respectively – There is a rebate section for biomass stoves, boilers, and furnaces in all versions of this legislation.

S. 3079, the Building Star Energy Efficiency Act, introduced by Sen. Merkley (D-OR) – There is a rebate section for biomass boilers and furnaces in this bill.

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