A bipartisan bill introduced by U.S. Sen. Shelley Moore Capito (R-WV) to bolster carbon-capture system development while reducing carbon emissions has been incorporated as part of the nation’s new budget law President Donald Trump signed on Feb. 9.
“Not only will this policy help drive economic growth domestically and reduce future emissions abroad, but it will also help our country fully embrace the kind of all-of-the-above energy strategy — including West Virginia coal and natural gas — we need to reach our full potential,” said Sen. Capito about the Furthering carbon capture, Utilization, Technology, Underground storage, and Reduced Emissions Act, or the FUTURE Act, S. 1535.
Sen. Capito, along with U.S. Sens. Heidi Heitkamp (D-ND), Sheldon Whitehouse (D-RI) and John Barrasso (R-WY), pushed through the FUTURE Act as part of the Bipartisan Budget Act of 2018, H.R. 1892, the new law that prevented a partial government shutdown last week. The measure extends stopgap funding through March 23 to keep the federal government operating and to allow time for Congress to enact a long-term omnibus appropriations bill for fiscal year 2018, among other provisions.
U.S. Sen. Roy Blunt (R-MO) signed on as one of 24 original cosponsors to S. 1535, introduced in July 2017, which incentivizes deployment of carbon-capture utilization and storage (CCUS) technology on power plants and industrial sources to limit carbon emissions.
Specifically, the measure expands the federal tax credit for per-ton carbon dioxide disposal in a secure geologic storage unit, according to the legislation text of Capito’s original bill. If not stored, the carbon dioxide would be released into the atmosphere as greenhouse gas.
Capito’s legislation expands the tax credit, known as the tax code Section 45Q credit, to apply it to carbon oxide storage, encompassing any of three carbon oxides: carbon dioxide, carbon monoxide and carbon suboxide.
Expanding the credit enables wider CCUS adoption by power generators not currently eligible for the 45Q tax credit, according to a summary provided by Capito’s office. The action also offers certainty for companies that need to use the credit for securing private funding for carbon-capture projects, such as those using certain carbon oxides for improved oil recovery and for converting carbon into usable manufactured products including fuel, carbon fiber and plastic, among others.
“The United States can and should be a leader in developing and exporting carbon capture systems,” Capito said. “Extending and improving the 45Q tax credit will help us get there.”
“This bill provides the critical federal government support necessary to bring costs down and spur the development and deployment of CCUS projects,” added Barbara Walz, co-chair of the Carbon Utilization Resource Council.
Sen. Capito, who collaborated with Senate leadership to ensure the legislation was included in the newly enacted budget package, has championed carbon-capture technology and energy-efficiency projects at both the state and federal levels and supports establishment of a regional hub for natural gas liquids storage that could boost manufacturing in her home state.