Figure 1. Potential production of biofuels in Alabama based on biomass production and biorefineries [xi]

Figure 2. Potential use of biofuels in Alabama based on the number of flexible fuel vehicle registrations per zip code [xii]

To encourage the installation of new approved biomass-related projects, there currently exists a $75,000 interest subsidy payment available through the state’s Biomass Energy Program.  In addition to loan help, technical assistance is also available. Industrial, commercial, and institutional facilities; agricultural property owners; and city, county, and state government entities are eligible.  In order to qualify for this program, loans must already be obtained and repayment information must be submitted to the sponsoring entity: Alabama Department of Economic and Community Affairs.  This program will promote landfill gas and wood waste as potential sources of energy for industrial processes and other uses.  The interest rates on loans should be no greater than 2 percent above the prime rate. [ii]

A number of other state-funded programs exist to promote the use of biomass in Alabama.  There are quality standards for alternative fuels sold in the state, protecting consumers, as well as the Alabama Alternative Fuels Research and Development Fund to which taxpayers can contribute. [v] [vi]  There is also a tax credit available for companies that invest in the development of biofuel production sites.  The credit is available for up to 20 years for 5 percent of the capital costs of the project. [vii]  Another state incentive allows income received by the Alabama Research Alliance, which conducts scientific research and development related to biofuels, to be used to support research and development programs. [viii]  Finally, there is the Alabama Green Fleets Policy, which will set a guideline for obtaining state fleet vehicles based on fuel economy and life cycle costing.  Standards will increase each year based on vehicle type and require that fleets be operated in a sustainable manner. [ix]

Alabama has been considered an oil state due to its proximity to Texas and the offshore rigs in Louisiana.  Legislators, entrepreneurs, and researchers, however, are making a huge effort to reduce the state’s oil dependence and convert to biobased energy sources.

Endnotes

[i]. Database of State Incentives for Renewables and Efficiency. Wood-Burning Heating System Deduction. Accessed July 21, 2009. http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=AL01F&re=1&ee=1

[ii]. Database of State Incentives for Renewables and Efficiency. Biomass Energy Program. Accessed July 21, 2009. http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=AL02F&re=1&ee=1

[iii]. Alternative Fuels and Advanced Vehicles Data Center. State Assessment for Biomass Resources: Alabama Potential Biofuel Production. Accessed July 21, 2009. http://www.afdc.energy.gov/afdc/sabre/sabre.php

[iv]. Id. [iii]

[v]. Alabama Department of Agriculture and Industries. Center For Alternative Fuels. Accessed July 21, 2009. http://www.agi.state.al.us/alternative_fuels

[vi]. Alternative Fuels and Advanced Vehicles Data Center. Alabama E85 Laws and Incentives. Accessed July 21, 2009. http://www.afdc.energy.gov/afdc/progs/ind_state_laws.php/AL/ETH

[vii]. Id. [vi]

[viii]. Id. [vi]

[ix]. Id. [vi]

[x]. Id. [vi]

[xi]. Id. [iii]

[xii]. Alternative Fuels and Advanced Vehicles Data Center. State Assessment for Biomass Resources: Alabama Potential Biofuel Use. Accessed July 21, 2009. http://www.afdc.energy.gov/afdc/sabre/sabre.php?mode=use