Sep 20 2012
Senator Authors Bill to Strengthen Financial Incentives for CCS Deployment
WASHINGTON, D.C. — Today Senator Jay Rockefeller joined with Senators Conrad and Enzi in introducing legislation to strengthen tax incentives for the development and deployment of Carbon Capture Utilization and Sequestration (CCS).
Rockefeller said that while these tax credits are one important part of Carbon Capture Utilization and Sequestration viability, he is working on comprehensive legislation that will help secure the future of CCS in the state and around the country.
“We’ll have to bring many components to bear in bringing Carbon Capture Utilization and Sequestration to full deployment. This is one piece of that puzzle,” Rockefeller said. “I’m thankful that Senators Conrad and Enzi are shining a spotlight on an issue that’s vitally important to West Virginia.
“My focus remains on large-scale CCS deployment through comprehensive clean coal technology legislation, and I’m looking forward to working with all of my colleagues in moving clean coal forward,” Rockefeller said. “In addition to reforming these tax credits, which I believe we can do in the near term, I also sent letters last month to coal operators, industry groups, labor organizations and environmental advocates asking for their ideas about how to drive deployment of clean coal technology in the state,” Rockefeller said.
“We know that CCS is technically viable and can be a win-win-win,” Rockefeller said. “It can secure a future for coal in a world demanding cleaner sources of power. It can reduce harmful emissions into our environment. And the CO2 capture can be used to dramatically increase domestic oil production, through enhanced oil recovery. We still need to show that it can all be brought together at a large scale and continue investing in research to bring down the costs.”
His latest effort is one of several steps Rockefeller has taken to develop clean coal technology. In 2010 he co-authored the first comprehensive legislation designed to realize widespread Carbon Capture, Utilization and Storage technologies. The Carbon Capture and Storage Deployment Act of 2010 would create funding for research; financial incentives for large-scale deployment; and technology standards for new power plants, among other provisions.
In addition, Rockefeller fought for and secured funding for CCS as part of $3.4 billion for advanced coal in the American Recovery and Reinvestment Act of 2009.
Rockefeller’s letter is the latest effort in his fight to secure a clean future for coal. He is currently compiling responses to that letter while working toward a new, comprehensive clean coal bill.
Rockefeller and Senators Kent Conrad (D-ND) and Mike Enzi (R-WY) today introduced legislation that would reconfigure the “45Q” tax credit that was passed in 2008 and that allows, among other things, companies to claim a credit of $20 per ton of carbon dioxide captured when producing energy.
The Conrad-Enzi bill amends current law to provide assurances to companies who were previously concerned that the tax credit would no longer be available to them once construction of CCS projects began.
# # #