CURC Applauds Introduction of the Advancing Carbon Capture in Energy Generation Act of 2018
The Carbon Utilization Research Council (CURC) commends Senator Heidi
Heitkamp (D-ND) on the introduction of the Advancing Carbon Capture
in Energy Generation Act of 2018 (S. 3566). The bill would
make important technical modifications to the Section 48A “Qualifying
Advanced Coal Project Credit” program that would unlock additional
federal funding to incentivize investment in technologies that will
improve the efficiency of the existing coal fleet.
“There are up to $1.7 billion in credits available through the Section
48A tax credit program that remain unused because the technical
requirements to qualify for the credit are impossible for carbon capture
projects to achieve,” said Shannon Angielski, Executive Director of
CURC. “The Advancing Carbon Capture in Energy Generation Act makes
important revisions to the credit to make it workable and ultimately
accelerate the deployment of post-combustion CO2 capture on
coal-fired generation projects.”
CURC has long been an advocate for and supporter of the Section 48A
program enacted in the Energy Tax Incentives Act (ETIA) of 2005 and
later modified by the Energy Improvement and Extension Act (EIEA) of
2008. However, when Congress modified the tax credit in 2008 to include
a carbon capture and sequestration (CCS) requirement for eligibility, it
did not adjust the heat rate requirements originally included in the
program in 2005. Because adding CCS equipment to a new or existing
generating unit results in an efficiency loss to the unit, the
modification to the 48A program under EIEA rendered the required
efficiency improvements impossible for generating units to achieve while
operating a CO2 capture system. The Advancing Carbon Capture
in Energy Generation Act would remove the efficiency requirements for
new and retrofit projects that include CCS and lower the CO2
capture requirement to make the credit workable for project developers.
This effort is the latest in a series of initiatives Senator Heitkamp
has supported this year to incentivize investment in advanced
technologies for power generation from fossil fuels. She introduced the
now-enacted FUTURE Act to reform the Section 45Q tax credit for carbon
dioxide sequestration and is a primary sponsor of the Utilizing
Significant Emissions with Innovative Technologies (USE IT) Act, which
is currently pending before the Senate. CURC applauds Senator Heitkamp
for her continued leadership and advocacy for technologies that will
ensure the continued use of our abundant domestic energy resources.
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Copyright Business Wire 2018
Source: Business Wire
(October 11, 2018 - 1:34 PM EDT)
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