U.S. Sen. John Hoeven (R-ND) recently signed on as one of 13 original cosponsors of a bipartisan bill to better support the development and implementation of carbon capture, utilization and storage technologies (CCUS).
“This is about supporting good-paying jobs, making our nation energy secure, and maintaining our baseload power sources to ensure the reliability and affordability of the electric grid,” Sen. Hoeven said last week.
The senator joined bill sponsor U.S. Sen. Tina Smith (D-MN) and cosponsors including U.S. Sens. Shelley Moore Capito (R-WV) and Joni Ernst (R-IA) to introduce the CCUS Tax Credit Amendments Act of 2021, S. 986, which would make four targeted statutory changes to maximize use of the existing 45Q CCUS tax credit, and would make changes to the 48A tax credit to improve its usefulness for CCUS retrofits on qualifying coal plants having the best available pollution control technology, according to a bill summary provided by the lawmakers.
These improvements would ensure that the tax credits are fully utilized to create manufacturing, construction and engineering jobs and to prevent carbon dioxide emissions, the summary says.
Specifically, S. 986 would provide a direct payment option for the 45Q and 48A CCUS tax incentives; extend the 45Q commence construction deadline for five years; allow the 45Q credit to offset tax obligations related to the Base Erosion Avoidance Tax; and increase support for direct air capture of CO2 from the atmosphere, the bill summary states.
Additionally, S. 986 would include the bipartisan, bicameral Carbon Capture Modernization Act, S. 661 / H.R. 1760, which Sen. Hoeven and U.S. Rep. Terri Sewell (D-AL) introduced on March 10 to modify the qualifying advanced coal project credit toward ensuring it works for CCUS retrofits, like Project Tundra in Sen. Hoeven’s home state of North Dakota.
“The 45Q and 48A tax credits are an essential part of our efforts to advance the development of CCUS technologies, which will enable our nation to continue utilizing all of our abundant energy resources while also reducing emissions,” said Sen. Hoeven. “Our legislation will enhance these important incentives, making them more effective and accessible as CCUS is developed and implemented.”
The bill is supported by the University of North Dakota’s Energy and Environmental Research Center, the Lignite Energy Council, the Basin Electric Power Cooperative, and the Minnkota Power Cooperative.