BPA joins 1603 Coalition
The Biomass Power Association joined with the 1603 Coalition Nov. 30 to sign onto a letter to Congressional leadership urging the extension of the Department of the Treasury’s Section 1603 Program.
“The 1603 program has helped to solidify biomass industry growth during a challenging time for the industry,” said Bob Cleaves, president and CEO of the BPA. “It has encouraged outside investors to feel secure backing new biomass facilities. The result is hundreds of new megawatts of biomass power in development to supply electricity to American homes, replacing fossil fuel use. It would be a shame to lose this program, which has given our industry real momentum.”
This program enables developers of domestic energy technologies, including biomass facilities, to qualify for a federal grant in lieu of a tax incentive to which they otherwise would be entitled. This provides needed liquidity during the crucial construction phase of new energy projects at little, if any, additional cost to the government.
In the past two years, the 1603 program has provided support for dozens of biomass projects through hundreds of millions of dollars in funding. This support has helped create hundreds of construction jobs and is paving the way for permanent positions in rural America, where they are most needed.