The Carbon Capture Coalition today released a national policy blueprint outlining an expanded, comprehensive federal policy portfolio to promote economywide deployment of carbon capture technologies for consideration by the administration and the 117th Congress. The blueprint represents a consensus of the Coalition’s more than 80 energy, industrial and technology companies, labor unions, and conservation, environmental, and clean energy organizations. It highlights an extensive suite of near-term recommendations for policymakers to adopt to maximize the impact of the 45Q tax credit, facilitate the buildout of CO2 transport and storage capacity, and increase federal investment in carbon management technologies, among others.
“Our Coalition works together in a bipartisan, consensus-based fashion to achieve a common goal: economywide deployment of carbon capture, removal, transport, utilization and storage to meet midcentury climate goals, foster domestic energy and industrial production, and provide jobs that consistently pay above prevailing wages,” said Great Plains Institute Vice President and Coalition Staff Director Brad Crabtree, who noted that this new set of policy recommendations expands upon the Coalition’s 2019 Federal Policy Blueprint released during the 116th Congress.
“This 2021 Federal Policy Blueprint outlines a comprehensive, ambitious and bipartisan federal policy agenda for carbon capture deployment and serves as a roadmap for Coalition engagement with federal policymakers,” Crabtree said.
Released today during a public virtual event for Coalition members and carbon capture stakeholders across the country, the blueprint provides specific recommendations for federal action arranged in four complementary areas: investment certainty, project finance and feasibility; technology deployment and cost reductions; storage infrastructure and market development; as well as jobs, economic development and affected communities.
In addition to retaining several policy measures previously endorsed by the Coalition, the blueprint highlights new priorities aimed at driving commercialization of carbon capture in key sectors, such as heavy industry, electric power generation and direct air capture that are critical to achieving net-zero emissions, but which face significantly higher costs of deployment. New policy recommendations put forth by the Coalition to close these cost gaps include enhanced 45Q credit values for higher cost sectors, an optional electricity production tax credit alternative to 45Q to increase the feasibility of carbon capture in natural gas power generation, and a reformed and expanded investment tax credit for carbon capture, carbon utilization and direct air capture projects.
The updated blueprint also places greater emphasis on the important role the federal government must play in helping to finance the buildout of the CO2 transport and geologic storage infrastructure required to reach net-zero emissions. The Coalition’s top infrastructure priority is the enactment of the bipartisan Storing CO2 and Lowering Emissions Act (SCALE Act), which would provide low-interest federal loans and grants for large capacity CO2 transport infrastructure and funding for the development of large-scale commercial saline geologic storage sites to serve as regional storage hubs.
Additionally, the Coalition urges Congress to fulfill its commitment to increase federal investment in carbon management by fully funding the robust authorization levels for research, development & demonstration programs for carbon capture, removal, utilization and geologic storage included in the bipartisan fiscal year 2021 Omnibus legislation that passed in December.
These recommendations aim to build upon existing federal policy, notably the 45Q tax credit, to greatly expand the number and diversity of projects under development and increase overall emissions reductions, while spurring job creation and private investment at a time when our nation seeks to recover economically from the COVID-19 pandemic.
Crabtree noted that the blueprint is well-timed with a new administration and the start of a new Congress.
“Momentum for carbon capture is building in the U.S., as evidenced by the groundbreaking bipartisan provisions enacted in the year-end omnibus spending package and the more than 30 carbon capture, direct air capture and geologic storage projects publicly announced in response to the 45Q tax credit. We must now continue to scale federal investments and policy ambition for carbon capture — the Coalition will be calling on Congress and the administration to include key priorities from the blueprint in broader COVID-19, infrastructure and climate legislation this year,” Crabtree concluded.
Download the Carbon Capture Coalition’s Federal Policy Blueprint here.
Download a topline summary of the Carbon Capture Coalition’s Federal Policy Blueprint here.