Web exclusive posted Jan. 9, 2009, at 10:59 a.m. CST

A coalition of 34 renewable energy, environmental and agricultural groups issued a letter to congressional leaders Jan. 6 requesting that funding for Farm Bill programs and renewable energy production tax credit extensions be included in economic recovery legislation.

According to the Biotechnology Industry Organization, which represents more than 1,200 biotechnology entities, funding these programs and tax credits can help speed the completion of renewable energy projects, creating jobs and generating economic activity.

The letter outlines a three-part recommendation. First, the organizations recommend that a minimum of $1.2 billion per year in mandatory supplemental appropriations for Farm Bill Energy Title programs be included in the legislation. According to the letter, the Farm Bill Energy Title programs, such as the Rural Energy for America Program, the Bioenergy Crop Assistance Program and the Biorefinery Assistance Program, are major job creators.

The Rural Energy for America Program funds a variety of projects, including those involving biogas and bioenergy. The Bioenergy Crop Assistance Program is designed to accelerate dedicated energy crop plantings. In addition, the Biorefinery Assistance Program helps provide financing for new advanced biofuels production facilities.

Secondly, the organizations recommend that Congress extend the federal production tax credits for renewable energy, cellulosic biofuels and biomass for five years. Other recommendations include allowing projects to utilize other financial incentives without reducing the amount of investment tax credits and production tax credits that an entity can claim. Furthermore, the coalition recommended that Congress create a level playing field for those producing renewable electricity by modifying production tax credits so all renewable electricity producers are eligible for the full credit. According to the letter, "these improvements will improve industry's access to capital, catalyze new project development, drive new job creation and increase the tax base for communities across the country."

Finally, the organizations recommend congressional leaders work to extend and expand successful clean renewable energy and conservation bond programs, which provide production tax credit-like incentives for electric co-ops, public power, and municipalities.

The 25x'25 Alliance, the American Coalition for Ethanol, the Biomass Power Association, the Biotechnology Industry Organization, CHS Inc., the Environmental Law & Policy Center, John Deere, the National Corn Growers Association, and National Farmers Union are among the 34 entities who signed the letter.