Yesterday, Senators John Hoeven (R-ND) and Tina Smith (D-MN) and Representatives David McKinley (R-WV) and Terri Sewell (D-AL) reintroduced the Carbon Capture Modernization Act, which would make technical changes to the Section 48A tax credit to incentivize the deployment of carbon capture, utilization and storage (CCUS) technologies. In the Senate, the legislation was cosponsored by Senators Kevin Cramer (R-ND), Joe Manchin (D-WV), John Barrasso (R-WY), Jon Tester (D-MT), Steve Daines (R-MT) and Shelley Moore Capito (R-WV). In the House, the legislation was cosponsored by Representatives Kelly Armstrong (R-ND), Liz Cheney (R-WY), Alex Mooney (R-WV), Pete Stauber (R-MN), Marc Veasey (D-TX) and Carol Miller (R-WV).
Click here to view a summary of the legislation.
CURC Executive Director Shannon Angielski said of the bill:
“As determined by the International Energy Agency, carbon capture, utilization, and storage (CCUS) will be a critical component in the electricity system of the future, ensuring continued reliable, dispatchable power generation and reducing emissions. The Carbon Capture Modernization Act will be instrumental to deploy first mover carbon capture projects on existing power plants by making critical technical changes to the existing tax credit program, which will unlock nearly $2 billion in tax credits to be allocated as Congress intended – to invest in carbon capture to significantly reduce emissions from electric power facilities. When combined with the Section 45Q tax credit, the revised Section 48A tax credit will enable financing for carbon capture projects and propel a robust CCUS industry in the United States. CURC applauds Senators Hoeven and Smith and Representatives McKinley and Sewell for their leadership on this bipartisan, bicameral bill.”
CURC members also issued the following statements in support of the bill:
“Minnkota appreciates the leadership of Senator Hoeven and Senator Smith as they work together to advance the use of clean coal technologies. By making important modifications to the Section 48A Advanced Coal Tax Credit, the Senators are providing another tool to help utilities and researchers implement innovative new energy technologies. We are hopeful that this bill will help move Project Tundra, a potential carbon capture project at the Milton R. Young Station, another step forward.” said Mac McLennan, CEO of Minnkota Power Cooperative.
“Basin Electric appreciates the leadership of Senators Hoeven, Smith, Cramer, Daines, Barrasso and their colleagues in supporting improvements to the 48A tax credit for advanced coal projects. This incentive is important to help the utility industry continue implementing solutions to reduce emissions from coal-based power plants and explore future options to keep coal in the generation mix as a reliable and affordable fuel source,” said Paul Sukut, CEO and General Manager of Basin Electric.
“The Carbon Capture Modernization Act makes a number of common sense improvements to an existing tax incentive tailored to commercial carbon capture technologies. Its bipartisan introduction indicates continued policy momentum for accelerating carbon capture progress in the United States,” said ClearPath Action Executive Director Rich Powell.
“Federal investment in carbon capture technology will spur innovation, unlock economic potential and provide meaningful environmental benefits. Electric co-ops draw on a diverse energy mix to power America’s rural communities. The bipartisan Carbon Capture Modernization Act would allow electric co-ops to access CCUS tax credits, spurring innovation as we work responsibly to meet future energy needs,” said Jim Matheson, CEO of the National Rural Electric Cooperative Association.