http://www.arkansasnews.com/276196364930299.bsp
ArkansasNews Little Rock
Lawmaker Proposes Tax To Help Find Alternative Fuels

By Wesley Brown

Arkansas News Bureau
Tuesday, October 29, 2002
LITTLE ROCK - With war on the horizon and the possibility of higher 
fuel prices, Rep. Herschel Cleveland, D-Paris, outlined a plan on 
Monday that would create an "alternative fuels" commission by levying 
a $3 annual tax on Arkansas electric and gas users.

Cleveland, who presented a draft copy of his bill during the Joint 
Committee on Energy meeting at the state Capitol, said he plans to 
introduce the bill during the 84th General Assembly. The regular 
session begins Jan. 13.

"When we get up in the morning, we don't know what is going to happen 
that day," Cleveland said of the threat of war with Iraq. "We need to 
reduce our dependency and look to some alternative fuels other than 
oil."

During the hearing, a number of presenters provided the legislative 
committee with a host of alternative fuel and renewable energy 
options, ranging from wind, hydroelectric and solar power to fuels 
produced by recycling chicken litter and soybean oil.

Chris Benson, director of the Arkansas Energy Office of the Arkansas 
Department of Economic Development, said nearly 80 percent of the 
state's $4.2 billion energy diet now comes from fuel sources outside 
the state.

Of that amount, less than 8 percent comes from renewable energy 
sources, Benson said.

Jim Wimberly, president of the Foundation for Organic Resources 
Management in Fayetteville, told the joint committee that Arkansas 
has many available sources of unused alternative energy sources, such 
as chicken litter, sawdust and rice hulls.

He said his nonprofit group is studying ways to convert chicken 
litter into energy that can be used to heat poultry houses and lower 
excessive levels of phosphorus - that comes from chicken litter - in 
drinking water.

Currently, there are 2,700 poultry farms in Arkansas generating 480 
tons of litter per farm each year, he said. "The potential for 
expanding this type of energy warrants your attention as you look at 
your energy options."

Wimberly admitted to the committee that the research and technology 
needed to create litter-to-energy systems are at least two years 
away, mainly because of a lack of start-up capital.

He said most of these projects need some type of government 
partnership or funding to be competitive with non-renewable energy 
sources.

"Help us to reduce the risk," Wimberly said.

Under Cleveland's bill, a 25 cents tax would be levied on every 
residential electric and gas meter each month. Additionally, 
commercial and industrial users would be charged 25 cents per $1,000 
of electric or natural gas use on each monthly bill.

Cleveland estimates the tax, which would be collected by utility 
companies, would raise about $2 million per year to finance an 
alternative fuels fund and establish a seven-person commission to 
oversee it.

All money collected through the tax would be used by the commission 
to provide loans and grants to groups that are involved in 
alternative fuel research and renewable energy projects.

"There are a lot of people in Arkansas doing things, but there is no 
focal point," Cleveland said of alternative energy research in the 
state. "I think that everyone agrees this needs to be done, but the 
issue is whether or not it can be funded or not."



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