A Federal Policy Blueprint for Carbon Capture was released on Feb 24th from the Carbon Capture Coalition (CCC) for the 117th Session of Congress. The blueprint aims to push Congress to adopt economy wide deployment of carbon capture technologies. It offers short-term recommendations for acceleration of the carbon capture industry to meet mid-century climate goals.
“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,” said CCC Staff Director Brad Crabtree.
The blueprint represents the voice of the CCC’s more than 80 organizations in the clean energy, industrial, technology, conservation and environmental sectors and labor unions. Those participants are companies like Air Liquide, Alto Ingredients, Archer Daniels Midland Co., LanzaTech, National Farmers Union, NRG Energy, Summit Agricultural Group, White Energy, along with coalition observers Algae Biomass Organization, Biomass Power Association, Growth Energy, and Renewable Fuels Association.
According to the data cited in the blueprint, a deployment of associated CO2 transport infrastructure in 21 states across the Midwest, Great Plains, Gulf Coast and Rockies can support an annual average of up to 68,000 project jobs and 35,800 ongoing operational jobs. The period is over 15 years and the captured capacity is 592 million metric tons of CO2 per year. That would also mean $212.9 billion would go in private investment. Each ethanol plant with CC is estimated to generate 30 to 50 project jobs and 5 to 10 operations jobs.
Carbon Capture Policy Blueprint Suggestions
Some of the main recommendations brought forward to Congress are:
- to enact a direct pay mechanism for the 45Q tax credit
- lengthening the 45Q credit payment window from 12 to 20 years
- to eliminate thresholds in the 45Q Statute
- enhance and expand complementary federal incentives to enable financing of carbon capture projects
- to increase EPA funding to support state and federal permitting of Class VI wells
The blueprint also provides several other suggestions aimed at promoting direct air capture (DAC) and utilization projects. They include making them eligible for tax-exempt private activity and master limited partnerships (MLPs).
The CCC’s blueprint facilitates the expansion of the number and diversity of CC projects with the goal of reducing emissions. The proposed legislation agenda highlights the importance of the boost of new jobs and private investment from implementing the measures. It also comes at a time when the U.S. is looking to recover from the COVID-19 pandemic with new jobs.
