Maryland Enacts Ethanol Incentive
Maryland recently enacted legislation that provides an incentive to support ethanol and biodiesel production. The Renewable Fuels Promotion Act of 2005 will promote a cleaner environment and stronger economy, and will preserve open space used for agriculture.
The production credit legislation provides for a $0.20/gal credit for ethanol produced from small grains and $0.05/gal credit for ethanol produced from other agricultural products. Biodiesel is also included in the bill at the rate of $0.20/gal when produced from soybean oil and $0.05/gal when made from any other feedstock.
Source: Ethanol Report, Renewable Fuels Association, April 26, 2005.