Hoeven, Smith Introduce Bipartisan Legislation to Modernize Section 48A Clean Coal Tax Credit
Last Congress, Hoeven Led Bicameral Group in Urging Congressional Tax Leaders to Address Unrealistic Eligibility Requirements for CCS Projects
WASHINGTON – Senators John Hoeven (R-N.D.) and Tina Smith (D-Minn.) today introduced the Carbon Capture Modernization Act, legislation to modernize the Section 48A tax credit for clean coal facilities to better support the use of carbon capture and sequestration (CCS) technology. The Section 48A tax credit was first established in 2005, and CO2 capture projects were made eligible in 2008. However, the eligibility standards for the credit are not technically or economically feasible for CCS retrofit projects, like Project Tundra.
Accordingly, the Hoeven-Smith legislation would modernize the credit’s performance and efficiency standards to reflect the capabilities of existing technology, which will help promote the adoption of CCS technology and reduce emissions. Prior to introducing it as standalone legislation, Hoeven worked with energy stakeholders to draft the measure and led a bipartisan, bicameral group of congressmen and senators, including Smith, in urging the leaders of the Senate Finance Committee and the House Ways and Means Committee to advance the provision as part of end-of-the-year tax legislation.
“We worked hard with energy stakeholders and researchers in North Dakota and Minnesota to craft legislation that modernizes the 48A tax credit and will better advance the use of CCS technology,” said Senator Hoeven. “This technology is vital to helping ensure our nation can continue to make use of all of its abundant energy resources. Updating this tax credit will help make efforts like Project Tundra more commercially-viable, leading to greater energy production with fewer emissions.”
“As we continue to invest in clean energy, this legislation helps to ensure that carbon dioxide released by fossil fuel power plants is captured and stored before it can be emitted into the atmosphere,” said Senator Smith. “This bill supports the good work that Minnesota Power, Minnesota’s Rural Electric Co-ops, and other utilities in our state are doing to reduce greenhouse gas emissions.”
The Carbon Capture Modernization Act is supported by Minnkota Power Cooperative, Lignite Energy Council, Basin Electric Power Cooperative, University of North Dakota Energy and Environmental Research Center, BNI Energy, ALLETE Clean Energy, Minnesota Power, National Rural Electric Cooperative Association, 8 Rivers Capital, Arch Coal, Carbon Utilization Research Council, ClearPath Action, Cloud Peak Energy, EnergyBlue Project, International Brotherhood of Boilermakers, International Brotherhood of Electrical Workers, ION Engineering, Peabody, SMART TD and Wyoming Infrastructure Authority.
In addition to Hoeven and Smith, the legislation introduced today is cosponsored by Senators Kevin Cramer (R-N.D.), Joe Manchin (D-W.Va.), John Barrasso (R-Wyo.), Jon Tester (D-Mont.), Lindsey Graham (R-S.C.) and Steve Daines (R-Mont.). A summary of the legislation can be found here, and industry statements of support can be found here. The full text of the bill is available here.
Next Article Previous Article