U.S. Sens. John Hoeven (R-ND) and Shelley Moore Capito (R-WV) proposed legislation with bipartisan support that would help America’s coal facilities advance the use of carbon capture, utilization and storage (CCUS) technology.
“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 Sen. Hoeven, the sponsor of the bill.
Introduced on March 10, the Carbon Capture Modernization Act, S. 661, would modify the Section 48A Advanced Coal Tax Credit to improve the carbon emission profile of coal plants by incentivizing their use of emission-reducing technologies. Sen. Capito and U.S. Sen. Tina Smith (D-MN) were among the seven original cosponsors of the bill.
“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 that will ultimately support jobs, grow our economy, and benefit from more efficient, affordable and reliable energy,” said Sen. Capito, ranking member of the U.S. Senate Environment and Public Works Committee.
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 lawmakers said.
“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,” Sen. Hoeven said. “That will enable our nation to both ensure the reliability of the electric grid, strengthen our energy security and reduce carbon emissions.”
The bill is supported by the Minnkota Power Cooperative, the Basin Electric Power Cooperative, the University of North Dakota Energy and Environmental Research Center, BNI Energy, ALLETE Clean Energy, Minnesota Power, the National Rural Electric Cooperative Association, the International Brotherhood of Electrical Workers, and the Wyoming Energy Authority, among others.
“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,” Sen. Capito said.