ICYMI: McKinley Secures Clean Coal Technology Win

Critical Carbon Capture Tax Credit Included in Two-Year Bipartisan Budget Agreement

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Washington, February 22, 2018 | comments
Congressman David B. McKinley, P.E., (WV-1) fought to secure the reauthorization and expansion of the 45Q tax credit in the recent bipartisan budget agreement. This credit will advance carbon capture technology development and deployment.
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Congressman David B. McKinley, P.E., (WV-1) fought to secure the reauthorization and expansion of the 45Q tax credit in the recent bipartisan budget agreement. This credit will advance carbon capture technology development and deployment.

“President Trump campaigned on a specific promise to revitalize the coal industry, and the expansion of the carbon capture tax credit was another step towards achieving that goal. The agreement expands tax credits for carbon capture and includes a commitment to develop new clean coal technology in West Virginia, which will enable energy producers to burn coal cleaner and more efficiently,” said McKinley.

“As Chairman of the Coal Caucus, I will continue to advocate for projects that will expand carbon capture technology development, which will ensure that coal continues to play an important part in America’s energy mix,” McKinley added.

Background

 McKinley has been leading the fight to reauthorize the carbon capture tax credit. He previously was a lead co-sponsor of the Carbon Capture Act (H.R. 3721), which was inserted into the bipartisan budget agreement to expand the existing tax credit for carbon capture, and make it more appealing.

45Q grants a tax incentive to energy and industrial companies that store carbon dioxide through a set of technologies commonly known as carbon capture and sequestration (CCS), rather than releasing the carbon into the atmosphere. The expansion of the tax credit included in the bipartisan budget agreement increases the dollar amount of the credit from $20 to $50 for captured carbon that is stored underground, and from $10 to $25 for captured carbon that is used for enhanced oil recovery. The new credit also removes a 75 million metric ton cap, which has hampered the development of new carbon capture projects.

As the House and Senate debated whether to include tax extenders in the bipartisan budget agreement, McKinley:

·         Led a bipartisan letter to House leadership and the House Committee on Ways and Means, urging them to include 45Q in any package.

·         Sent an “Action Alert” to Coal Caucus members.

·         Reached out to Majority Leader Kevin McCarthy (R-CA) about including 45Q.

·         Spoke during a Republican Conference meeting about 45Q and talked directly to Ways and Means Chairman Kevin Brady (R-TX) about the importance of maintaining it.

Because of McKinley’s leadership on the issue, the 45Q tax credit was included as part of the bipartisan budget agreement.

Here’s what stakeholders are saying:

·         “This is a stunning victory for the future of clean and reliable energy," ClearPath Action Executive Director Rich Powell said. “Reps. Conaway and McKinley especially stand out among those congressional leaders who have handed pioneers such as NET Power the opportunity to give the U.S. a lasting global edge in technologies that responsibly grow coal and natural gas generation, while also magnifying the potential for enhanced oil recovery and other economic benefits.”

·         “I’d also like to recognize Congressman Conaway (R-TX) for his leadership in introducing a bill and initiating a 45Q reform effort in the House, as well as David McKinley (R-WV) who was instrumental in getting support from House leadership for 45Q reform.  Like Senator Heitkamp, Congr. McKinley pulled together a similar bipartisan group of House members that continue to be the lead advocates of our coal and fossil technology efforts in Congress.  CURC appreciates their support and leadership.” – Shannon Angielski, Executive Director, Coal Utilization Research Council

“Arch Coal applauds Congressman McKinley’s continued leadership on a wide range of coal issues.  Time and time again, he has stepped forward to advocate for a more efficient permitting process, a smart and sensible regulatory environment, and higher levels of support for advanced coal technologies that can help rejuvenate the U.S. coal fleet.  He is a long-time champion of the West Virginia coal industry, and he continues to drive progress today.”
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