MFPA Final Legislative Report

The 2008 legislative session was very successful for MFPA.  I really want to thank our lobbyists Bob Wilson and George Burruss for their hard work on our behalf.  A summary of the legislation that passed in 2008 is as follows:

             SB 931 includes a Missouri state sales tax exemption on forestry equipment purchased from Missouri dealers.

             SB 931 includes a Missouri state tax exemption on fuel purchased for the purposes of transporting forest products.

             SB 931 includes a provision for adding qualified biomass to Missouri’s ethanol incentive fund.  Woody biomass harvested under the guidance of sustainable forest management plan for the purpose of providing cellulosic ethanol would qualify for the incentive.  The maximum incentive available is 7.5 million per facility and is redeemed by receiving $.20 per gallon for the first 12.5 million gallons produced annually.  The 7.5 million can be received over a 60 month time period.  The facility must be at least 51% producer (wood products/forest landowners) owned.  A maximum of two facilities can qualify for this incentive over a ten year period.

             SB 1181 guarantees that a renewable fuel mandate can only increase electric rates by a maximum of 1% per year.

             HB 2006 includes an appropriation to the Missouri Department of Agriculture budget for $220,000 for the purposes of conducting a cellulosic ethanol feasibility study.

             Missouri’s wood energy tax credit was proposed to be sunset next year by legislation introduced by Sen. Brad Lager.  We were successful in delaying the sunset until 2013.  Over the next few years, we will be developing ideas on a new strategy for this tax credit.