Cramer Introduces Clean Coal Jobs Act
Press Release
Congressman Kevin Cramer has introduced H.R. 5159, the Clean Coal Jobs Act of 2018, with Congressman David McKinley (R-WV) to extend and reopen the refined coal production tax credit and modify the qualifying advanced coal project credit.
"By extending and reopening an opportunity to claim the refined coal tax credit we incentivize electric power producers to further reduce emissions at their coal-fired power plants. This is a win for both the coal industry and environment," said Cramer.
The targeted changes to the 48A advance coal project credit corrects what was likely an oversight in the 2008 Energy Improvement and Extension Act to make it possible for carbon capture investment at existing coal-fired power plants to qualify under achievable requirements.
In addition, we need the changes in the CO2 Regulatory Certainty Act to provide the regulatory certainty industry needs to claim the 45Q tax credit for enhanced oil recovery projects sequestering carbon dioxide in the ground. Combined, these legislative tweaks to existing policies will make them workable for North Dakota's energy sector.
What Companies are Saying
"Minnkota Power Cooperative appreciates Congressman Cramer's commitment to ensuring coal remains an important part of our nation's power supply mix. The clarification of the 48A Advanced Coal Project tax credit and the advancement of the CO2 Regulatory Certainty Act represent important policy steps as Minnkota and others research and evaluate cutting-edge clean coal technologies." -- Stacey Dahl, Manager of External Affairs, Minnkota Power Cooperative.
"ALLETE sincerely appreciates Representative Cramer's continued work to allow innovative carbon capture, utilization and storage projects to move forward. These changes are necessary to remove regulatory roadblocks and will further investments and jobs while meeting carbon solution challenges." -- Wade Boeshans, President, BNI Energy.
"Section 45 [refined coal tax credit] provides for reduced emissions of acid gases (NOx and SOx) and Hg, while at the same time assuring that economical baseload coal generation is available, and continues to provide resiliency and stability to the electric grid." -- John Harju, Vice President for Strategic Partnerships, University of North Dakota Energy & Environment Research Center.
"Basin Electric appreciates Congressman Cramer's leadership in introducing the Clean Coal Jobs Act of 2018. This legislation will help the utility industry to continue implementing cost-effective solutions to reduce emissions from coal-based power plants, and explore future options to keep coal in the generation mix as a reliable and affordable fuel source." -- Paul Sukut, CEO and General Manager, Basin Electric
Background
The refined coal program provides a current inflation adjusted $6.909 per ton tax credit to facilities which reduce emissions of nitrogen oxide by at least 20 percent and emissions of either sulfur dioxide or mercury by at least 40 percent, as compared to the emissions when burning the feedstock coal. Facilities lost their opportunity to utilize this tax credit after December 31, 2009 and will soon expire for those currently claiming the credit based on its 10 year window. The Clean Coal Jobs Act extends the credit for another 10 years to current users and reopens the opportunity for new facilities in 2018, 2019, and 2020. Senator Hoeven has introduced companion legislation (S. 2373).
The 48A advance coal project tax credit is amended in the Clean Coal Jobs Act by lowering the carbon dioxide capture requirement for existing electric generating units to at least 60 percent and allowing a best available control technology determination completed after August 5, 2005 to constitute as the environmental performance requirement. When the original 2005 credit added a carbon capture component in 2008 the performance characteristics were not adjusted to account for efficiency loses seen by installing that technology. These changes still require a significant amount of CO2 to be captured and stringent controls on air pollutants.
Congressman Cramer introduced H.R. 4857, the CO2 Regulatory Certainty Act, to provide a workable and certain regulatory regime by aligning IRS rules with EPA and state rules for enhanced oil recovery projects wanting to claim the 45Q credit for carbon dioxide sequestration. Senator John Hoeven has introduced companion legislation (S. 1663).
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