(Jan. 27) – The House Agriculture, Livestock & Natural Resources committee passed a bill to increase production of biogas by Reps. Dave Young (D-Greeley) and Tim Dore (R-Elizabeth) with unanimous support.
The bill will exempt items used in the production of biogas as either a transportation fuel or a renewable natural gas from state sales and use tax and give local governments the ability to exempt these items from local sales and use tax.
The bill updates previous sales and use tax exemptions for agricultural and renewable energy systems which were passed in 2008. Producing biogas or anaerobic digestion was not a commonly used technology in 2008, but has developed over the past six years.
“I am happy to work with my Republican colleagues on this bill,” Rep. Young said. “It will spur more investment in this developing technology and give agricultural producers who invest in a biogas production system a break.”
The bill could specifically benefit entities like the Heartland Biogas Project, which is located in Weld County and is the first biogas production plant of its kind in Colorado history.
HB14-1159 will now head to the House Finance committee.