In-Depth: Sen. John Hoeven (R-ND) reintroduced this bill from the 115th Congress with lead sponsor Sen. Cindy Hyde-Smith (R-MS) to align tax guidelines with existing federal regulations and accelerate work on carbon capture, utilization and storage (CCUS) projects:
“CCUS technologies offer the capability to continue relying on all of our nation's vast energy resources while also improving environmental stewardship and reducing emissions. The IRS' guidelines for accessing the 45Q tax credit don't properly reflect regulations for CCUS at the EPA, unnecessarily increasing costs and holding back the development and use of this technology. As the IRS is in the process of implementing the recently expanded and extended 45Q tax credit, I believe this is the best opportunity to provide ongoing certainty and regulatory flexibility for project developers and to make CCUS technology more commercially-viable. I will continue to work with the IRS and through the legislative process to ensure that the 45Q tax credit more effectively advances CCUS technology."
Original cosponsor Sen. Kevin Cramer (R-ND) adds:
“Under current regulations, energy companies are unsure if they can take advantage of the 45Q tax credit. This legislation aligns Treasury's regulations with the EPA's, which will provide much-needed clarity and consistency for North Dakota's energy stakeholders. If 45Q is going to successfully incentivize carbon capture, it must be applicable to all producers who participate, not just a select few."
Clean Water Action’s National Oil and Gas Program Director, John Noël, criticized this legislation in November 2017. In a post on the Clean Water Blog, he argued that this by allowing CCUS developers to qualify for Section 45Q tax credits without proving that their operations actually permanently sequester carbon, this bill would allow them to “qualify for tax credits without actually having to do any work.” Noël concludes that this bill would “dismantle commonsense and proven environmental protections while padding [CCUS developers’] bottom lines with taxpayer handouts.”
This legislation has four Republican cosponsors
in the 116th Congress. Last Congress, it had four Republican Senate cosponsors
and didn’t receive a committee vote
. Its two House companion in the 115th Congress, H.R.4857
, both had six Republican House cosponsors. None of the three bills received a committee vote last Congress.
Summary by Lorelei Yang(Photo Credit: iStockphoto.com / NicoElNino)