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U.S. Treasury adjustments to proposed rule benefit biogas

The U.S. Department of Treasury has agreed to revise a proposed rule to help benefit the production of biogas.

Earlier this month, Congresswoman Nikki Budzinski of Illinois and Senator Sherrod Brown of Ohio sent a letter urging the department to revise its rule that excludes Inflation Reduction Act tax credits from being used to support the conversion of biogas into renewable natural gas.  Budzinski says the measure paid off…

“Some very positive news back from the letter saying that they were going to make basically one important correction to the proposed rule,” she says, “which would include gas upgrading equipment to the list of biogas property that’s eligible for the biogas tax credit.”

She says the potential of biogas production is garnering interest in her district…

“They’re very excited about all of these newer renewable energy sources, whether that’s in, you know, biofuels, biogas, organically repurposing things that are already happening on a family farm and monetizing them,” she says.

While a positive start, Budzinski tells Brownfield there are still concerns with the proposal and hopes Treasury officials continue to respond to congressional feedback.

“These are just other examples of very simply, you know, barriers,” she says, “I think to fully realizing the opportunity this is to create renewable natural gas.”

Budzinski and Brown were joined on the letter by numerous other lawmakers from across the country.  The rule could be finalized within the next few weeks.

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