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Local producers and representatives from various agencies gathered recently at the Chariton Valley RC&D office in Centerville to visit with Senator Charles Grassley. Jim Cooper, Chariton Valley RC&D Coordinator, presented an overview of the Chariton Valley Biomass Project, explaining the economic and environmental benefits of using switchgrass as a renewable energy source. The focus of the project is the potential use of switchgrass as a fuel to replace a portion of the coal burned at Alliant Powers (formerly IES Utilities) Ottumwa generating station. "Using switchgrass as a biomass fuel would allow producers to use the land while achieving the environmental and economic benefits of the CRP, "Cooper said. "Were looking for alternatives that are compatible with Southern Iowa soils, instead of just row crop." Bill Belden, with the Iowa Farm Bureau Federation, explained to Senator Grassley that use of an existing tax credit for biomass would make the cost of using switchgrass as fuel more attractive to power plants. "What we need is a tax credit for switchgrass to make it competitive with coal, just like the tax credit given to ethanol," Belden said. In addition, a tax credit would help create a market that encourages producers to grow this alternative crop on marginal land. Farm Bureau member, Mark Haines added, " We would like to keep as much of the land as possible under forage, as in CRP, and protect the Rathbun Lake watershed if we can." Senator Grassley listened as project coordinator, Marty Braster, explained that wording in the current legislation prohibits the projects use of the renewable resources electricity tax credit. What stands in the way of the projects eligibility for the tax credit is the definition a qualified facility. Currently, only facilities which are placed in service or have had modifications made within a specified time period qualify. If the legislation were changed to include the projects power plant, the value of switchgrass, when used as an energy crop, would increase by $21 per ton. This would help make switchgrass more competitive with coal and other fuels. Grassley provided leadership on legislation that created the income tax credit for wind and closed-loop biomass facilities. Closed-loop biomass refers to biomass grown specifically for energy generation. In a visit last fall, U.S. Secretary Dan Glickman and Iowa Senator Tom Harkin pledged continued legislative support for renewable energy sources such as switchgrass. At that time, the USDA announced a $44,700 grant for the Chariton Valley Biomass Project. Also present for Senator Grassleys visit were Chariton Valley RC&D, Inc. board members, Leon Kauzlatich and Paul Koffman, Farm Bureau member, Marlan Korthaus, and Alliant Power Engineer, Gary Walling. |
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