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.

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.

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.

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:

Make an amendment to the Energy Policy Act to include thermal biomass.
Pursue comprehensive reform of all energy tax credits that emphasizes long-term predictability, government neutrality, and market-based competitive outcomes.
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.
Promote the passage of the Biomass Thermal Utilization Act (BTU Act).
Continue to support the expansion and implementation of the densified biomass manufacturing reporting mechanisms proposed by the Energy Information Administration (EIA).
Work to promote the concept of biomass carbon neutrality in EPA emissions regulation, including the Clean Power Plan, ASHRAE standards, etc.
Ensure that the EPA’s New Source Performance Standard fuel grading requirements are reasonable and workable for the industry.
Open new market opportunities for densified biomass (e.g. regulatory approvals for blending with coal in electrical or CHP generation).
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 nonbusiness 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) - Updated May, 2019

The BTU Act of 2019 seeks to recognize and promote the many economic and environmental benefits that biomass thermal energy provides by opening the door to two sections of the Internal Revenue Code that already incentivize renewable energy. Currently, a host of renewable energy technologies qualify for investment tax credits for capital costs incurred in residential and commercial installations. Simply, this legislation seeks to achieve parity between thermal biomass and other renewable systems.

Co-sponsored in the Senate by Susan Collins, Angus King and Jeanne Shaheen, the BTU Act extends to high efficiency, clean wood heating systems the investment tax credits that currently exist for every other renewable energy technology. Legislation similar to S.628 has been introduced every session of Congress since 2009 in an effort to address this omission from the 2005 Energy Policy Act, which codified investment tax credit for renewable energy technologies under sections 25D and 48 of the IRS Code.

Specifically, the BTU Act provides for a 30% investment credit against installed capital cost for residential installations (IRC section 25D), and a 15% or 30% credit against installed capital cost for business installations, depending on level of efficiency met by the system (IRC section 48).

For your convenience, a template for requesting support for the BTU Act from your elected representatives and a fact sheet with more information about both biomass heating and the bill specifically can be downloaded below.

Letter of Support Template

BTU Act of 2019 Fact Sheet

Read one-page summary >>>

(Bill’s significance & 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 existingwood 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.