Hoeven introduces Carbon Capture Modernization Act
Proposed legislation could better support Minnkota's Project Tundra efforts for carbon capture and sequestration.
Sen. John Hoeven (R-N.D.) and Tina Smith (D-Minn.) on Friday, Feb. 8, introduced the Carbon Capture Modernization Act, legislation to modernize the Section 48A tax credit for clean coal facilities to better support the use of carbon capture and sequestration (CCS) technology.
The Section 48A tax credit was first established in 2005, and CO2 capture projects were made eligible in 2008. However, the eligibility standards for the credit are not technically or economically feasible for CCS retrofit projects, such as Minnkota's Project Tundra.
Accordingly, the Hoeven-Smith legislation would modernize the credit's performance and efficiency standards to reflect the capabilities of existing technology, which will help promote the adoption of CCS technology and reduce emissions. Prior to introducing it as standalone legislation, Hoeven worked with energy stakeholders to draft the measure and led a bipartisan, bicameral group of congressmen and senators, including Smith, in urging the leaders of the Senate Finance Committee and the House Ways and Means Committee to advance the provision as part of end-of-the-year tax legislation.
“We worked hard with energy stakeholders and researchers in North Dakota and Minnesota to craft legislation that modernizes the 48A tax credit and will better advance the use of CCS technology," Sen. Hoeven said. “This technology is vital to helping ensure our nation can continue to make use of all of its abundant energy resources. Updating this tax credit will help make efforts like Project Tundra more commercially-viable, leading to greater energy production with fewer emissions."