Biomass wood pellets. Photo: Mehmet Emin Menguarslan/Anadolu Agency via Getty Images
Progressives want to prevent biomass companies from qualifying for the IRA's advanced energy tax credit.
Why it matters: Biomass' potential climate benefits have long been a subject of dispute among climate advocates, and Southern states produce lots of wood pellets for export.
Driving the news: Green groups and Hill Democrats are campaigning with the Biden administration to stop wood pellet companies from claiming the credit.
- Rep. Don Beyer led a letter to DOE and the IRS arguing that giving the industry the incentive would go against the administration's environmental justice commitments.
- "Industrial-scale wood bioenergy producers — which operate wood pellet mills in the U.S. Southeast and then export pellets to biomass power plants in Europe and Asia — do not meet our climate goals," the Democrats wrote.
- They pointed to Enviva, the world's largest wood pellet producer, which said last year it had applied for 48C (the company recently filed for bankruptcy).
What they're saying: "We've seen, in rural America, wood pellets leading to deforestation and hurting communities. That has given me concern," Rep. Ro Khanna, who signed the letter, told Axios.
- Danna Smith, executive director of the Dogwood Alliance, said she's seeing policymakers "actually take note of this industry.
- "I think this is a really opportune time for the administration to course-correct its position," she said.
The other side: Not all Democrats are on board with the anti-biomass push.
- Rep. Jared Huffman, for example, said he's not a biomass "purist" and that it "can be done in a way that's acceptable."
- Enviva and other biomass companies say they aim to displace fossil fuels, manage forests sustainably and help decarbonize tough sectors.
- Enviva and DOE, which administers the credit, didn't immediately respond to requests for comment.
What's next: We could see an announcement about who's getting the 48C credit as soon as March 31.
