Senators Manchin, Capito 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, DC – Today, U.S. Senators Joe Manchin (D-WV), Chairman of the Senate Energy and Natural Resources Committee, and Shelley Moore Capito (R-WV) reintroduced the Carbon Capture Modernization Act, 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 eligible for the tax credit.
“The transition to a cleaner energy future must come through innovation, not elimination. This bipartisan bill will incentivize the expanded use of carbon capture technologies, which is a critical component of meeting any global climate goals. This will help reduce emissions, keep our energy affordable and reliable, and chart a path to a cleaner energy future while also ensuring our continued climate leadership. I look forward to working with my colleagues on both sides of the aisle to ensure this legislation becomes law,” said Senator Manchin, Chairman of the Senate Energy and Natural Resources Committee.
“For America to reach its full energy potential, we need to continue pursuing a true all-of-the-above energy strategy—utilizing the many natural resources available to us while also working to develop new and innovative ways to use our energy resources, including coal. I’m proud to join my colleagues in introducing this bipartisan legislation, which will allow us to advance a smart, all-of-the-above energy policy will ultimately support jobs, grow our economy, and benefit from more efficient, affordable, and reliable energy,” said Senator Capito, Ranking Member of the Senate Environment and Public Works Committee.
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.
In addition to Senators Manchin and Capito, the legislation introduced in the Senate is cosponsored by Senators John Hoeven (R-ND), Tina Smith (D-MN), Kevin Cramer (R-ND), John Barrasso (R-WY), Jon Tester (D-MT), and Steve Daines (R-MT). The House legislation is cosponsored by Representatives David McKinley (R-WV), Terri Sewell (D-AL), 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).
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.
Next Article Previous Article