Bill Would
Give Tax Breaks to Utilities that Burn Chicken Waste as Fuel
By A.C. Benson
Capital News Service
Thursday, April 15, 1999
WASHINGTON - Delmarva lawmakers introduced a bill in Congress on
Thursday that would provide federal tax credits to power
companies that use chicken manure as a fuel to generate
power.
The bill would add chicken waste to the list of renewable
"biomass" fuels, such as wood chips, that currently earn a
tax credit for utilities that burn them to generate energy.
The credit also applies to renewable resources such as solar
and wind power.
The bill was introduced Thursday in the House by Rep.
Wayne Gilchrest, R- Kennedyville, and reintroduced in the
Senate by Sen. William Roth, R-Del., who unsuccessfully
pushed such a proposal last year.
Its supporters see the plan as a way to make a positive
out of a negative. An overabundance of chicken manure has
been linked to outbreaks of Pfiesteria piscicida and other
environmental problems on the Eastern Shore.
"Necessity is the mother of invention. We have a lot of
smart people that with a little prodding and structure can
solve problems," Gilchrest said of the proposal to turn
poultry manure into an asset.
Gilchrest said he was originally drawn to the idea a few
years ago -- "prior to pfiesteria" -- as a way to reduce
large amounts of chicken manure on the Shore.
While visiting England on other congressional business
last year, Gilchrest toured two power plants that burn
poultry waste and was impressed. Those plants burn about
half of the United Kingdom's chicken manure and provide
electricity to more than 100,000 people, Roth and Gilchrest
said.
Those English plants purchase waste from surrounding
chicken farms and burn it in furnaces to create steam that
drives turbines that generate electricity.
Roth introduced the proposal in Congress in September,
when he likened the process to "what medieval alchemists
dreamed of -- turning a base element into gold." That bill
was co-sponsored by Maryland Sens. Barbara Milkulski and
Paul Sarbanes, both Baltimore Democrats who have signed onto
the current measure.
But supporters said last year's bill was introduced too
late in the session and it died.
Roth's new Poultry Electric Energy Power legislation --
or PEEP -- calls for a 1.7-cent per kilowatt-hour tax credit
for electric companies that use chicken manure as a fuel.
Gilchrest said his bill calls for a 1.5-cent per
kilowatt-hour credit.
A spokesman for Conectiv, a power company that operates a
natural gas and oil-fired generating plant in Vienna, Md.,
tax credits would be an added incentive to considering
chicken manure as an alternative fuel.
"(Tax credits) would certainly make it a more attractive
business proposition," said Ted Caddell. He said Conectiv
has been studying the possibility of retrofitting its plants
on the Eastern Shore for some time, but is still evaluating
the use of poultry-derived fuel.
Power plants like the one in Vienna are "in the heart of
a poultry farming area ... ideally situated to solve a
problem," Caddell said.
Copyright © 1999, 2000, 2001, 2002, 2003, 2004, 2005 and 2006 University of Maryland Philip Merrill College of Journalism
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