McKinley Introduces Legislation To Advance Carbon Capture, Utilization, and Storage Projects

Decreasing carbon emissions would be impossible without investments in carbon capture, utilization, and storage technology

WASHINGTON D.C. - Today, U.S. Representatives David B. McKinley P.E. (R-W.Va.), Liz Cheney (R-WY), John Curtis (R-UT), Garret Graves (R-LA), and David Schweikert (R-AZ) introduced the Carbon Capture, Utilization, and Storage Innovation Act, otherwise known as the CCUS Innovation Act.

This legislation will help develop carbon capture projects by making them eligible for loan guarantees from the Department of Energy (DOE). DOE’s Loan Guarantee Program funds energy infrastructure projects in the United States. Specifically, the bill clarifies the scope of CCUS projects eligible for loans and expands eligibility to include CCUS infrastructure and pipelines.

“Investing in carbon capture, utilization, and storage projects will help decrease carbon emissions while keeping all energy resources in the mix,” said McKinley. “This bill will help developers get more CCUS projects built, allowing us to continue to advance this technology in America and across the globe.”

“This legislation will allow carbon capture projects to take advantage of the Department of Energy's loan guarantee program, which will help expand this critical innovation. Carbon capture technology is essential to allowing energy producers in Wyoming and across the country to continue to take advantage of coal as an affordable and reliable power source for families. Anything we can do to advance carbon capture technology will ultimately allow for more coal use in a responsible way, which is why this legislation is so important to our state,” said Cheney.

“American ingenuity and innovation are the best path to tackle global emissions – not more regulation and taxation. We need to continue using practical AND conservative policies that promote the competitive development of our own resources so innovation isn’t met with roadblocks,” said Graves. “Carbon capture is key to any global effort to address emissions and vital to the continued utilization of American energy resources.  We must lead on innovation to ensure cost effective climate solutions while making sure the U.S. economy continues to grow and our American workers are protected.”

“Direct air capture and other carbon capture technologies are proving to be an innovative, pro-growth solution to addressing present and future environmental challenges in Arizona and around the country,” said Schweikert. “By expanding access for carbon capture utilization, storage, and requisite infrastructure, we can have a cleaner environment and stronger economy in the future. I look forward to continuing to advocate for the deployment of this technology in Congress, and am pleased to join this effort.”

Background:

McKinley has been a staunch supporter of developing carbon capture technologies.

  • In 2017, he was a lead co-sponsor of the Carbon Capture Act (H.R. 3761), which was inserted into the bipartisan budget agreement, which expanded the existing tax credit for carbon capture and make it more appealing.
  • In 2019, he introduced the USE IT Act (H.R.1166), a bipartisan, bicameral bill that supports the development and demonstration of vital carbon capture and removal technologies.
  • In 2019, he was a lead co-sponsor on the Fossil Energy Research and Development Act of 2019 (H.R.3607). The bill continues to reauthorize research activities in the Department of Energy’s Office of Fossil Energy and set priorities for the next generation of clean energy technologies that will help the energy industry continue to flourish in our country.
  • In 2020, he released legislative language for an energy and climate proposal. This bipartisan approach would establish an energy innovation program that invests CCUS, advanced nuclear, and renewables with storage for a decade, followed by a clean energy standard for the power sector.
  • In 2021, he introduced the ACCESS 45Q Act (H.R. 8858). This bipartisan legislation extends the date for projects to begin construction to claim the 45Q tax credit for carbon oxide sequestration by ten years. It also provides a direct pay elective for the full value of the tax credit, which makes it more useful for project developers.

In September 2020, the International Energy Agency released a report that claimed “reaching net zero will be virtually impossible without CCUS.” Read the report here.

To read the full bill text, click here.

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