Hoeven Presses DOE to Advance Final 45Q Tax Credit Rules
Senator Stressed Importance of Fairly Valuing Coal, Federal Preemption of Washington Crude-by-Rail Law and Stabilizing Global Oil Markets
WASHINGTON – Senator John Hoeven, a member of the Senate Energy and Natural Resources Committee, today spoke with Department of Energy Under Secretary Mark Menezes and Steve Winberg, the Assistant Secretary for Fossil Energy, to advance the final 45Q Carbon Capture Tax Credit rules, which are integral to the development of carbon capture, utilization and storage (CCUS) technologies, including Project Tundra.
“Getting 45Q implemented soon and properly will not only advance carbon capture but provide real financial assistance to our coal-fired electric industry as they lead the way forward in doing it,” said Hoeven.
Today’s call is the latest in Hoeven’s efforts to support the state’s lignite industry, including:
Modernizing the 45Q and 48A tax credits
- Hoeven worked with the administration to advance the first two pieces of key guidance on the implementation of the 45Q tax credit, which provides greater clarity to developers of CCUS projects and will enable them to begin moving forward with financial arrangements and construction plans.
- The senator is sponsoring bipartisan legislation to update the eligibility standards for the 48A tax credit, which are not currently technically or economically feasible for CCUS retrofit projects.
Ensuring Fair Value for Coal-Generated Electricity
- Hoeven pressed Menezes and Winberg, and has also repeatedly pressed Energy Secretary Dan Brouillette, to ensure coal’s role as a reliable source of baseload power is properly valued.
- Hoeven introduced an amendment, along with Senator Kevin Cramer, to repeal the one-year extension of the Wind Production Tax Credit (PTC).
- The senator has also urged the Federal Energy Regulatory Commission (FERC) on the issue, including Chairman Neil Chatterjee and newly sworn in Commissioner James Danly.
Hoeven also pressed Menezes and Winberg to support efforts to pre-empt the 2019 Washington State law that effectively bans the transportation of Bakken crude by rail andhelp provide stability to global energy markets and bring an end to the oil price war.
Hoeven has been working to stabilize global energy markets and raised the issue with President Trump, Energy Secretary Brouillette, Secretary of State Mike Pompeo, the Saudi Ambassador to the U.S. Princess Reema Bandar Al Saud and the Saudi Crown Prince Mohammad Bin Salman Al Saud. The senator has repeatedly stressed the economic impacts of COVID-19 and the importance of U.S. domestic energy production to the nation’s security.
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