Heitkamp, Capito, Whitehouse, Barrasso Push for Passage of Bipartisan Carbon Capture Technology Bill

Press Release

U.S. Senators Heidi Heitkamp (D-ND), Shelley Moore Capito (R-WV), Sheldon Whitehouse (D-RI), and John Barrasso (R-WY) are pushing Senate leadership to include the FUTURE Act, their bipartisan bill to encourage technological innovation in carbon capture utilization and storage (CCUS) while also reducing carbon emissions, in any year-end legislation to extend expiring tax provisions.

Their bipartisan legislation would support maintaining a place in our energy mix for existing resources like coal and natural gas by encouraging development and use of carbon capture, utilization and storage (CCUS) technologies and processes--while also spurring adoption of low-carbon technologies to transform carbon pollution into useable products. Heitkamp and Whitehouse first introduced the bill in July 2016. Since then, they have worked with Capito and Barrasso, and others, to build out bipartisan support among more progressive Democratic senators and more conservative Republican senators. A wide cross-section of coal companies, utilities, environmental groups, and labor organizations also support the bill, reinforcing a willingness from all sides to come together and seek bipartisan solutions.

"We need more bipartisanship in this town, and this bill is proof that good ideas bridge political divides," Heitkamp said. "Encouraging innovation in energy is critical to North Dakota jobs, and this bill will jump-start the innovation needed to give our nation a strong, affordable, and diverse energy mix that includes North Dakota coal. Including the FUTURE Act in a tax extenders package -- and ultimately in a must-pass bill in the near future -- would be a win for an all-of-the-above energy strategy and an investment in American energy jobs."

Capito said, "America is poised to lead the world in developing low-carbon technologies that will drive economic growth. Along with the broad coalition that supports this bill, it is my hope that the FUTURE Act will be included in any end-of-year legislation to extend expiring tax provisions."

"Turning carbon pollution into something useful ought to be part of our strategy to fight climate change. Our bipartisan bill would put a price on carbon pollution and pay facilities for emissions they keep out of the atmosphere. It would also clear a path for businesses in Rhode Island and around the country that turn carbon pollution into useful products," said Whitehouse. "We should put this bipartisan legislation to work for the American people."

"America is the world's leader of carbon capture technology, and we want to keep it that way," said Barrasso. "In Wyoming and across America, carbon capture and other clean energy sources create jobs and grow our economy. The bipartisan FUTURE Act will spur innovation in the coal industry and will help create new technologies that transform carbon emissions into a useful product."

The senators' bipartisan bill would extend and expand the 45Q tax credit to provide certainty to utilities and other industrial sources, and would incentivize the build-out of industrial carbon capture projects that plan to use CO2and CO for enhanced oil recovery and carbon utilization--the conversion of carbon dioxide into useable products. The 45Q provision is an integral part of the tax code for incentivizing carbon capture. Carbon capture cannot take off on a large scale unless there is federal support to encourage investment and implementation of the technology through tax credits and other mechanisms, which this bill would provide. The bill would also provide a crucial lifeline to coal miners by providing a pathway to maintain coal as a part of our diverse energy mix, doing so in a cleaner way, and reinforcing bipartisan support for standing up for these workers and their communities.

In addition to extending 45Q, the bill would strengthen support for carbon capture technologies by increasing the "commence construction" window for carbon capture projects from five to seven years and by increasing the number of years to claim the credits from 10 to 12 years.

Cosponsors of the bill include U.S. Senators Michael Bennet (D-CO), Roy Blunt (R-MO), Cory Booker (D-NJ), Sherrod Brown (D-OH), Bob Casey (D-PA), Thad Cochran (R-MS), Chris Coons (D-DE), Joe Donnelly (D-IN), Tammy Duckworth (D-IL), Dick Durbin (D-IL), Al Franken (D-MN), Lindsey Graham (R-SC), Tim Kaine (D-VA), Angus King (I-ME), Amy Klobuchar (D-MN), Joe Manchin (D-WV), Gary Peters (D-MI), Rob Portman (R-OH), Brian Schatz (D-HI), Jon Tester (D-MT), and Mark Warner (D-VA).

Background:

Heitkamp's work to find a realistic path forward for coal builds on her more than a decade of experience on the board of directors of Dakota Gasification, the one-of-a-kind synfuels plant in Beulah, N.D. During her service as North Dakota's Tax Commissioner, on the North Dakota Industrial Commission, and as the state's Attorney General, Heitkamp was able to work on viable solutions to make sure coal remains a strong part of the North Dakota's energy mix.

Since joining the Senate, Heitkamp has worked to finding a realistic path for clean coal by:

Bringing together Democrats to urge strong CCUS funding, as president's budget proposed cuts: In June, Heitkamp led a diverse group of 15 Democratic senators--including liberal and conservative lawmakers--in urging congressional appropriators to fund strong U.S. Department of Energy investments in carbon, capture, utilization and storage (CCUS) technologies, which are key to coal's future. The president's budget threatened to cut funding for the U.S. Energy Department Office of Fossil Energy by 55 percent, including funding cuts of at least 84 percent to CCUS programs. Such cuts would significantly hinder the advancement of CCUS technologies, which North Dakota's rural electric co-ops, coal workers, and ratepayers rely on to support a path forward for coal-fired power through clean coal research and development.
Introducing major legislation in 2013 and 2015 to put coal on a viable path forward: Heitkamp's bill would incentivize companies to invest in technologies that reduce the carbon footprint of coal-fired power. This is done through federal funding programs, federal support for private investment, and recommendations to Congress that provide insight on how best to support future CCS projects in the U.S. In May 2015, Heitkamp and U.S. Senator Joe Manchin from West Virginia introduced a series of bills to make sure coal remains part of America's energy mix, incorporating Heitkamp's bill.
Bringing EPA to North Dakota to talk about coal: Heitkamp brought previous EPA Administrator Gina McCarthy to North Dakota in February of 2014 so she could hear about the impacts of EPA regulations directly from North Dakotans. Heitkamp also brought former Energy Secretary Ernest Moniz to North Dakota in August 2014 to push the Energy Department for investment in clean coal technology.
Convening industry, lawmakers, and academics to discuss path forward on coal: Heitkamp co-hosted a Coal Technology Symposium on Capitol Hill in 2014 that brought together industry, lawmakers, experts and academics -- including the Energy and Environmental Research Center from Grand Forks. To a crowded room, Heitkamp laid out the importance of advancing realistic energy policies and discussed the vital role coal plays in providing affordable energy in North Dakota and around the country.