BIO asks Congress to fund GREEN JOB Act.
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Press Release Summary:
BIO joined 34 other companies and trade associations to ask leaders of House Ways and Means Committee to include language of H.R. 5142, the Grow a Renewable Energy Economy Now - Jumpstart Other Biofuels Act of 2010, in next appropriate revenue vehicle considered by House. GREEN JOB Act supports industry efforts to secure project financing by strengthening and expanding federal tax incentives for next generation biofuels, thus accelerating development of biorefineries and high-wage American jobs.
Original Press Release:
BIO Asks Congress to Fund GREEN JOB Act
WASHINGTON, D.C. - The advanced biofuel industry can reduce reliance on oil and create green jobs; diverse federal programs are necessary to help producers secure financing for construction of projects. The Biotechnology Industry Organization (BIO) today joined 34 other companies and trade associations to ask leaders of the House Ways and Means Committee to include the language of H.R. 5142, the Grow a Renewable Energy Economy Now - Jumpstart Other Biofuels (GREEN JOB) Act of 2010, in the next appropriate revenue vehicle considered by the House.
Jim Greenwood, president and CEO of BIO, stated, "Rapidly increasing U.S. production of advanced biofuels can reduce reliance on petroleum, contribute to economic revitalization, and create truly green jobs. Enduring federal commitment to increasing alternative energy production is vital for producers seeking the investment needed to build biorefineries and infrastructure. In the current economic environment, small companies are finding it especially challenging to raise financing for first-of-a-kind commercial-scale facilities."
The GREEN JOB Act is intended to support industry efforts to secure project financing by strengthening and expanding federal tax incentives for next generation biofuels, thus accelerating the development of biorefineries and high-wage American jobs. The legislation would open existing cellulosic biofuels tax credits to algae-based fuels and extend the credits through the end of 2016. The proposed legislation would also provide cellulosic and algae-based biorefineries an option to choose a refundable 30 percent investment tax credit in lieu of production incentives. Businesses would not be allowed to claim both the production and investment incentives but would be granted the flexibility to choose the incentive best suited to their business condition.
Brent Erickson, executive vice president for BIO's Industrial and Environmental Section, said, "If enacted, this legislation would provide the consistent, sustained and diverse federal support necessary to enable rapid growth of a sustainable advanced biofuel industry. Extension of tax credits will provide potential investors the certainty they need to make long-term investments in new cellulosic and algae-based biofuel facilities. The refundable investment tax credit provides pioneering advanced biofuels developers with critical flexibility in electing the form of tax incentive that best suits a given project, and mirrors the tax credits available for other alternative energy projects. This targeted, cost-effective public policy can help the industry translate innovation into economic growth, generate green jobs, and lower greenhouse gas emissions."
A copy of BIO's letter to House Committee on Ways and Means Chairman Rep. Sander Levin (D-Mich.) and Ranking Member Rep. Dave Camp (R-Mich.) is available at bio.org/letters/. BIO believes that public policy should extend similar tax credit support to all biorefinery projects, because production of biobased products, green chemicals and other advanced biofuels - such as algae-based biofuels - holds the same potential to generate jobs, boost economic growth, reduce reliance on oil, and lower greenhouse gas emissions.
A recent report commissioned by BIO, U.S. Economic Impact of Advanced Biofuels Production, projects that development of advanced biorefineries could create as many as 29,000 jobs over the next few years and hundreds of thousands by 2030, contributing more than $140 billion in economic growth. Further, BIO's white paper, Biobased Chemicals and Products: A New Driver of U.S. Economic Development and Green Jobs, shows that projected growth in the biobased chemicals and plastics industry, which are also produced in advanced biorefineries, can create thousands more jobs. This sector, which accounts for 4 percent of the market, already generates 5,700 direct jobs and is likely responsible for over 40,000 jobs economy wide.
For copies of Biobased Chemicals and Products: A New Driver of U.S. Economic Development and Green Jobs or U.S. Economic Impact of Advanced Biofuels Production, please contact Paul Winters at pwinters@bio.org or 202-962-9237, or visit BIO.org/ind/.
About BIO
BIO represents more than 1,200 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world's largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world.
