In a letter sent to the U.S. House Committee on Ways and Means, the UWUA, the AFL-CIO and a wide-ranging coalition that includes Peabody Energy Corp. and the Natural Resources Defense Council are urging lawmakers to support a permanent extension of the federal Section 45Q tax credit for carbon dioxide sequestration.
Rep. Mike Conaway (R-Texas) will introduce legislation with a permanent 45Q extension in the coming weeks. If passed, the legislation will continue to encourage development of much-needed carbon capture technology, boost domestic oil production, capture CO2 emissions and safely store CO2 underground, and generate federal revenue that covers the cost of the incentive.
This, in turn, will help secure coal as a viable source for power generation for years to come.
The Conaway proposal provides a sensible solution for ensuring the financial certainty and effectiveness of Section 45Q in driving private sector innovation and investment in commercial deployment of carbon capture projects at power plants and industrial facilities.
In a press release announcing the call for the permanent extension of the 45Q credit, UWUA President Mike Langford said, “There are few real examples of technology that are both good for the economy and good for the environment. Carbon capture technology is one true example. Incentives to develop and deploy carbon capture will have a positive effect on our economy while at the same time, reduce greenhouse gas emissions. A permanent extension of tax credits for Section 45Q of the Tax Code will be essential in building a twenty first century economy that provides large numbers of good paying jobs while addressing environmental concerns.”