CCS CREDIT INCLUDED IN ENERGY TAX REFORM PROPOSAL

Karen Frantz
GHG Monitor
12/20/13

A new proposal from Senate Finance Committee Chairman Max Baucus (D-Mont.) that aims to dramatically overhaul tax incentives for clean energy would provide an investment credit for facilities that install carbon capture and storage technology that “results in at least a 50 percent reduction in the carbon dioxide emissions rate,” according to draft language unveiled this week. The credit is in addition to other provisions in the proposal, which would repeal a number of energy-related tax breaks and simplify incentives for clean electricity and transportation for the purposes of creating an even-playing field for fuels and technologies, whether fossil or renewable. “It is time to bring our energy tax policy into the 21st century,” Baucus said in a statement. “Our current set of energy tax incentives is overly complex and picks winners and losers with no clear policy rationale. We need a system of energy incentives that is more predictable, rational and technology-neutral to increase our energy security and ensure a clean and healthy environment for future generations.”

Baucus is calling for feedback from the public on the proposal, including the section on CCS. “Comments are requested on whether 50 percent is an appropriate threshold, whether the credit should be performance-based, and whether this credit will effectively promote adoption of carbon sequestration technologies,” said a summary of the draft proposal. The deadline for feedback is Jan. 31.