Lincoln's Energy Bill Provisions Include SEFOR Cleanup and Tax Credits Biodiesel Fuel

Washington – U.S. Senator Blanche Lincoln (D-Ark.) announced that the final Senate Energy bill, which could pass as soon as tonight, contains all of her renewable energy measures and authorizes the federal government to clean up a former nuclear reactor in Northwest Arkansas.

“We desperately need to put our nation on a course toward energy independence from foreign oil,” Lincoln said. “This bill will encourage the development of our domestic resources to help meet our energy needs, and give our agricultural producers the incentives they need to use alternative forms of clean-burning energy, like biodiesel. I’m also pleased to once again secure funding to clean up SEFOR, which has threatened public health and the environment in Northwest Arkansas for too long.”

The Senate is currently completing its work on the Energy Policy Act of 2005, an energy bill that will next go to a conference committee of Senate and House negotiators to develop a final, comprehensive energy reform bill.

Earlier this month, Lincoln worked in the Finance Committee to get a package of energy tax incentives included in the tax portion of the Senate Energy bill. She said her measures would encourage the development of alternative fuels; promote more energy-efficient consumption; expand access to natural gas; and give our farmers the incentive to turn their agricultural commodities and waste products into renewable fuels, such as biodiesel.

Lincoln has fought to enact several of the same measures, or variations of them, for the last three years, but partisan politics has stood in the way of a comprehensive national energy policy. Lincoln’s energy provisions in the Senate Energy bill are the following:

SEFOR clean-up – Lincoln has worked for six years to secure federal help to clean up the Southwest Experimental Fast Oxide Reactor (SEFOR), a former experimental nuclear reactor located near Strickler in northwest Arkansas. The site is contaminated with residual radiation, liquid sodium, lead, asbestos, mercury, PCBs, and other environmental contaminants and explosive chemicals. Lincoln’s measure authorizes federal funding to clean up the site, and costs associated with the clean-up have been estimated at approximately $16 million.

SEFOR was built by the Southwest Atomic Energy Associates, a consortium of investor-owned electric utilities, and the U.S. Atomic Energy Commission for testing liquid metal fast breeder reactor fuel. SEFOR began operations in 1969 and was permanently shut down in 1972. After the reactor’s useful life, the ownership of the site was transferred to the University of Arkansas. During her six-year Senate tenure, Lincoln has maintained that the federal government helped build SEFOR and should thus bear the cost of cleaning up the environmental blight.

Biodiesel incentives: Would extend tax incentives to encourage the production and use of biodiesel through 2010. Biodiesel is a clean-burning alternative fuel produced from renewable sources such as soybean, cottonseed, rice oils or animal fats. Lincoln said that farmers in Arkansas and other farm states will benefit from increased production of this environmentally friendly, biodegradable fuel.

Energy-efficient appliances: Would create tax incentives to encourage appliance manufacturers to produce super energy-efficient washing machines, dishwashers and refrigerators. Lincoln said this bill would encourage the development and production of these appliances and allow consumers to benefit from cost and energy savings.

Expanded access to natural gas pipelines: Would encourage companies to construct new natural gas delivery pipelines through tax incentives. Lincoln’s legislation would help ensure that more rural Arkansas consumers have access to natural gas to heat their homes and fuel cooking appliances.

Animal wastes: Would encourage the production of energy from animal waste and rendered fat. Lincoln’s bill would create tax incentives for energy production from alternative sources which include liquid fuels, while at the same time reducing the amount of animal wastes generated in agricultural production.

Turning landfill gas into energy: Would encourage the production of energy from landfill gas. This legislation would establish tax incentives for the additional collection and use of methane gas generated by decomposing garbage from landfills, which can be developed into energy to fuel clean burning vehicles and power generators to produce electricity.

Municipal trash combustion: Would encourage the production of clean, renewable energy from municipal solid waste, while helping communities meet the challenge of trash disposal. This bill would provide tax incentives to produce energy from municipalities’ waste and would save valuable land while significantly reducing the amount of greenhouse gasses released into the atmosphere.

Small producer incentives: Would offer incentives to small producers of biodiesel and ethanol. These producers are primarily participants in farmer-owned ethanol and biodiesel processing cooperatives. The small producer tax credit would extend tax credits to reflect the growth of these two renewable biofuels. This is the first tax credit ever extended to small producers of biodiesel.

http://lincoln.senate.gov/press_show.cfm?id=239429