Renewable Fuel Parity Act introduced, aims for algal fuels parity

In Minnesota, the Algal Biomass Organization announced its support for the Renewable Fuel Parity Act of 2011, formally introduced yesterday by US Senators Tom Udall (D-NM) and Mike Crapo (R-ID). The bill would give algae-based biofuels tax parity while leveling the playing field for all advanced biofuels by expanding the Clean Air Act’s definition of an advanced biofuel.

The bill removes a significant barrier facing companies that are using algae to produce advanced biofuels such as ethanol and diesel: they do not currently receive the same treatment in the tax code as other companies producing cellulosic biofuel from feedstocks. By amending the Clean Air Act and combining the existing categories of ”cellulosic biofuel” and ”advanced biofuel” into a single technology-neutral category of ”advanced biofuel,” the bill gives algae-based companies the same tax treatment other biofuel companies have received for years.