The U.S. budget bill passed by Congress today and signed into law by the President included the FUTURE Act, legislation introduced last year in the U.S. Senate to extend and reform the federal Section 45Q tax credit.
This revamped 45Q credit will drive private investment in commercial deployment of technologies to capture carbon dioxide (CO2) from power plants and industrial facilities for enhanced oil recovery (CO2-EOR) and other forms of geologic storage and for beneficial uses of CO2. Passage of the FUTURE Act will transform 45Q into an effective tool for creating good-paying, highly-skilled jobs and driving growth in key energy and industrial sectors of the U.S. economy, while significantly reducing carbon dioxide emissions.
The FUTURE Act was cosponsored by one quarter of the U.S. Senate and backed by the National Enhanced Oil Recovery Initiative (NEORI), an unprecedented coalition of diverse energy, industrial and technology companies, labor unions and environmental organizations.
NEORI applauds Congress for passage of this landmark legislation, especially the leadership of lead Senate sponsors Heidi Heitkamp (D-ND), Shelley Moore Capito (R-WV), Sheldon Whitehouse (D-RI), and John Barrasso (R-WY), and of House sponsor Congressman Mike Conaway (R-TX) who led efforts to pass this legislation in their respective chambers.
“The FUTURE Act represents one of the most significant energy and environmental accomplishments by Congress in recent memory,” declared Brad Crabtree, vice president of fossil energy for the Great Plains Institute, which co-convenes NEORI with the Center for Climate and Energy Solutions. “Passage of this legislation highlights the potential for carbon capture to marshal support across the political spectrum for a policy that will boost American energy production, reduce carbon emissions, protect and create high-wage jobs, and increase federal and state revenue.”
Key provisions of the FUTURE Act provide needed financial certainty for private investors and developers of carbon capture projects by lifting the current cap on available 45Q credits and increasing their value for each ton of CO2 captured and safely stored or put to beneficial use. The incentive is performance-based, so only projects that successfully capture and store CO2 can claim the credit.
“As co-founders of a coalition of industry, labor unions, and environmental groups supporting carbon capture, use and storage technologies, we applaud Congress for extending and expanding the Section 45Q tax credit,” said Bob Perciasepe, president of the Center for Climate and Energy Solutions. “Leaders from both parties have demonstrated a commitment to reducing carbon emissions while protecting and creating jobs and investing in new American industries.”
This legislation marks the culmination of more than six years’ work by NEORI’s industry, labor, and environmental participants and their coalition partners to build support for the extension and reform of the 45Q tax credit. Their effort also helped garner bipartisan backing from the governors of Kansas, Montana, North Dakota, Oklahoma, Pennsylvania, and Wyoming who co-signed a letter to Congress this week urging action on 45Q. Over the past several years, organizations such as the Western Governors Association (WGA), National Association of Regulatory Utility Commissioners (NARUC) and Southern States Energy Board (SSEB) have passed resolutions calling on Congress to enact legislation to reform and extend Section 45Q based on recommendations developed by NEORI and its coalition partners. Legislators in states including Alabama, Kentucky, North Dakota and Texas have also passed resolutions of support.
Statement from UWUA National President, Mike Langford
“Today, we applaud Congress’ action in providing support for carbon capture technology, a milestone event in our nation’s progress toward a clean energy future that includes a diverse mix of generation sources. As Utility Workers, we know there is a
continuing place for the energy industries that built our nation, and that bringing carbon capture systems to scale will ensure the high-quality jobs in those facilities can continue to support working families and their communities across the country for the foreseeable future.” –Mike Langford, National President, Utility Workers Union of America, AFL-CIO