Senators Hoeven, Smith & Representative McKinley Introduce Legislation to Modernize 48A Tax Credit for CCUS Retrofit Projects
Bipartisan, Bicameral Legislation Would Advance Adoption of CCUS Technology to Support Domestic Energy Security, Reduce Emissions
WASHINGTON – Senators John Hoeven (R-N.D.) and Tina Smith (D-Minn.) and Representative David McKinley (R-W.Va.) today reintroduced the Carbon Capture Modernization Act, bicameral, bipartisan legislation to modernize the Section 48A tax credit for coal facilities to better support the use of carbon capture, utilization and storage (CCUS) technology. The Section 48A tax credit was first established in 2005, and certain CO2 capture projects were made eligible in 2008, however, updates to the credit are needed to help make CCUS retrofit projects, like Project Tundra in North Dakota, eligible for the tax credit.
This legislation would modernize the credit’s performance and efficiency standards to reflect the capabilities of existing technology, which will help promote the adoption of CCUS technology and reduce emissions. The full bill text and a summary of the legislation can be found here and here, respectively.
“CCUS technology offers a real opportunity to ensure America can continue to develop all of its abundant energy resources while ensuring good environmental stewardship, which is why we’ve been at work on this priority for more than a decade in North Dakota,” said Senator Hoeven. “Our legislation would improve the 48A tax credit to help accelerate the development and implementation of CCUS at coal-fired power plants, a critical source of baseload power. That will enable our nation to both ensure the reliability of the electric grid, strengthen our energy security and reduce carbon emissions.”
“We need bold action to tackle climate change–the existential threat of our time,” said Senator Smith. “This bipartisan plan to reduce emissions from fossil fuels is one of the steps we should take to save our planet. Our legislation helps ensure that carbon dioxide released by fossil fuel power plants is captured and stored before it can be emitted into the atmosphere. 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.”
“Modernizing the 48A tax credit will make it easier for businesses to retrofit coal facilities around the nation with carbon capture technologies,” said Representative McKinley. “This bipartisan legislation builds off our work in the last Congress to incentivize the development of carbon capture technologies, allowing us to use all of our energy resources for years to come.”
In addition to Hoeven and Smith, the legislation introduced in the Senate is cosponsored by Senators Kevin Cramer (R-N.D.), Joe Manchin (D-W.Va.), John Barrasso (R-Wyo.), Jon Tester (D-Mont.), Steve Daines (R-Mont.) and Shelley Moore Capito (R-W.Va.). In addition to McKinley, the House legislation is cosponsored by Representatives Terri Sewell (D-Ala.), Kelly Armstrong (R-N.D.), Liz Cheney (R-Wyo.), Alex Mooney (R-W.Va.), Pete Stauber (R-Minn.), Marc Veasey (D-Texas) and Carol Miller (R-W.Va.).
The Carbon Capture Modernization Act is supported by Minnkota Power Cooperative, Lignite Energy Council, Basin Electric Power Cooperative, University of North Dakota Energy & Environmental Research Center, BNI Energy, ALLETE Clean Energy, Minnesota Power, National Rural Electric Cooperative Association, 8 Rivers Capital, Carbon Utilization Research Council, ClearPath Action, EnergyBlue Project, International Brotherhood of Electrical Workers and Wyoming Energy Authority. Statements of support can be found here.
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