Hoeven: CCUS is the Path Forward for Maintaining American Energy Dominance & Reducing Carbon Emissions
Senator Outlines Global Benefits of CCUS; Discusses Efforts to Enhance 45Q & 48A Tax Credits, Bring Technology to Commercial Viability
WASHINGTON – At a hearing of the Senate Energy and Natural Resources Committee this week, Senator John Hoeven stressed how carbon capture, utilization and storage (CCUS) technologies are the path forward for America in helping reduce emissions while remaining a dominant force in global energy markets. The senator highlighted remarks from Dr. Fatih Birol, Executive Director of the International Energy Agency, that CCUS is the “most important technology that exists today,” as it enables both better environmental stewardship and energy security for the nation.
“CCUS technology is indispensable in making sure our nation has access to dependable, low-cost energy, while also reducing emissions,” Hoeven said. “Further, the demand for traditional energy sources is going to continue in other nations, and so cracking the code on CCUS technology is not only essential to maintaining America’s energy leadership, but it will lead toward reduced carbon emissions globally. In order to get there, we need to keep working with the Department of Energy, energy companies and organizations like UND’s EERC to implement this technology and bring it to commercial viability. That’s exactly what we’re doing through our efforts to fund critical loan guarantee programs at the DOE and USDA’s Rural Utility Service, enhance the 45Q and 48A tax credits and our work to continue building federal, state and private partnerships.”
Accordingly, Hoeven is working to advance the development and implementation of CCUS technology. His efforts include:
- Getting the 45Q tax credit implemented in a way that makes CCUS projects more commercially-viable. To this end, Hoeven recently:
- Helped secure the final 45Q regulations. The senator worked closely with the Trump administration to move the final regulations forward.
- Passed legislation providing a two-year extension on the construction deadline for the 45Q tax credit.
- Supported funding in the Fiscal Year 2021 appropriations legislation for critical loan guarantee programs at both the Department of Energy and the Department of Agriculture’s Rural Utility Service to help CCUS project developers secure financing.
- Prioritizing enhancements for the 45Q and 48A Advanced Coal tax credits in order to further support coal producers and CCUS development.
- This includes the senator’s Carbon Capture Modernization Act, bipartisan legislation he introduced last Congress to modernize the 48A tax credit for clean coal facilities to better support CO2 capture retrofit projects.
- Hoeven also helped introduce bipartisan legislation in the 116th Congress to:
- Provide a direct payment option for the 45Q and 48A CCUS tax incentives.
- Further extend the 45Q commence construction deadline through January 1, 2029.
- Allow the 45Q credit to offset tax obligations arising from the Base Erosion Avoidance Tax (BEAT), consistent with BEAT exceptions made for wind and solar energy production under the 2017 Tax Cuts and Jobs Act.
- Bolstering the Department of Energy’s partnership with the University of North Dakota’s Energy & Environmental Research Center (EERC) in support of their efforts to develop and commercialize new energy technologies, like Project Tundra.
- Hoeven has helped secure $43 million in federal funding for Project Tundra to date.
- The senator also maintained funding in the Fiscal Year 2021 appropriations legislation for the Regional Carbon Sequestration Partnership and CarbonSAFE programs, in which the EERC participates.
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