Legislation


PFI’s Government Affairs Committee works to serve its members’ businesses by advocating the pellet industry’s interests to all levels of government and protecting the industry from restrictive public policy and regulation.  The Government Affairs Committee’s dedicated member involvement has been a key component in the success of PFI.  PFI members have voluntarily dedicated countless hours to the GA Committee and their hard work is paying off for the industry.alt

For a primer on state legislative incentives and assistance programs for wood pellets that could potentially be replicated in other states, please see PFI – Examples of State Legislative Incentives.

2016 Legislative and Regulatory Priorities


Goal: To Achieve Parity with Other Renewable Energy Sources in Federal Policy and Regulatory Arena.

To achieve this goal, PFI will focus on the following priorities:

  1. Make amendment to the Energy Policy Act to include thermal biomass. 
  2. Pursue comprehensive reform of all energy tax credits that emphasizes long-term predictability, government neutrality, and market based competitive outcomes.
  3. Ensure the inclusion of biomass in federal renewable energy mandates and continue the pursuit of opportunities to include pellets in portfolios for heating and cooling government facilities. 
  4. Promote the passage of the Biomass Thermal Utilization Act (BTU Act).
  5. Continue to support the expansion and implementation of the densified biomass manufacturing reporting mechanisms proposed by the Energy Information Administration (EIA).
  6. Work to promote concept of biomass carbon neutrality in EPA emissions regulation, including the Clean Power Plan, ASHRAE standards, etc. 
  7. Ensure that the EPA’s New Source Performance Standard fuel grading requirements are reasonable and workable for the industry.
  8. Open new market opportunities for densified biomass (e.g. regulatory approvals for blending with coal in electrical or CHP generation).
  9. Continue collaboration with other renewable energy organizations with like-minded visions and priorities as well as federal and state government agencies.

Biomass Heating Appliance Tax Credit


On December 19, 2014, the President signed into law the Tax Increase Prevention Act of 2014. Along with other credits, the measure reauthorizes the Sec.

 25C tax credit for non-business energy property, which provides a $300 credit for residential biomass heating equipment.   The credit applies to purchases of equipment made in 2014. Those who wish to utilize the credit must have a proof of purchase as well as a manufacturer-issued certificate indicating the product qualifies for the tax credit. 

Biomass Thermal Utilization Act (BTU Act)

alt

On Wednesday, May 22, 2013 Senator Angus King (I-ME) introduced S. 1007, the Biomass Thermal Utilization Act of 2013. The BTU Act, was co-sponsored by Senator Susan Collins (R-ME) and a host of other Members of the Senate. The goal of the legislation is to amend the Internal Revenue Code of 1986 to include biomass heating appliances for tax credits available for energy-efficient building property and energy property.

It is anticipated that this bill will be reintroduced in the 114th Congress, which opened its session on January 3, 2015.

Read full text of the bill >>> 

Read one page summary (bill’s significance and list of supporters) >>>

Regulations

New Source Performance Standards for New Residential Wood Heaters


On February 3, 2015, the Environmental Protection Agency (EPA) issued its final New Source Performance Standards (NSPS) for residential wood heaters.

The standards for wood heaters – including wood pellet stoves and other pellet-burning appliances – were designed to require new wood heaters to burn cleaner, and to improve air quality in communities where wood burning appliances are commonly used. The rule does not apply to existing wood burning appliances.

The rule requires any new non-commercial wood-burning appliance to utilize fuel that has been graded through an EPA-authorized graded fuel program including the PFI Standards Program. Other authorized programs include ENplus and CANplus.

For more information, please see the NSPS Fact Sheet.