Oklahoma U.S. Sen. James Lankford was one of six Senators who introduced legislation this week to enhance carbon capture incentives and energy production.
He joined U.S. Senators John Barrasso (R-Wyo.),Bill Cassidy (R-La.), John Hoeven (R-N.D.), Jim Justice (R-W.Va.), and Tim Sheehy (R-Mont.) in the introduction of the Enhancing Energy Recovery Act (S. 425), which would create parity under the Section 45Q carbon capture tax credit by giving across-the-board, equal treatment for carbon captured for increased energy production, utilization, and sequestration.
“Wyoming proudly leads the way on carbon capture projects. We have used this technology to take carbon out of the air and find alternate, productive uses for it,” said Senator Barrasso.
“Using carbon for enhanced oil and natural gas recovery has proven to significantly increase energy production while reducing carbon emissions. Changes to Section 45Q made it harder for American energy producers and manufacturers to take advantage of this credit. Our bill will fix this policy and ensure equal treatment for energy production, utilization, and sequestration.”
Louisiana Sen. Cassidy had much the same response.
“Investing in the infrastructure to capture carbon means investing in tens of thousands of Louisiana jobs. And with Louisiana’s primacy over permitting, it will also create tens of billions of dollars of other investment,” said Dr. Cassidy. “Let’s help Louisiana continue to lead as an energy and manufacturing state.”
This legislation is supported by the Wyoming Energy Authority, Petroleum Association of Wyoming, Carbon Utilization Research Council (CURC), Domestic Energy Producers Alliance (DEPA), Independent Petroleum Association of America (IPAA), National Rural Electric Cooperatives, CO2 Solutions Coalition, and the Compressed Gas Association.
The legislation by Sen. Lankford and the others is supported by the Independent Petroleum Association of America.
“Providing parity between carbon sequestration and utilization within the tax code ensures that CO2 is captured and stored in the most economically viable manner possible,” said Jeff Eshelman, President and CEO.
“The bill further incentivizes companies to continue to use direct air capture technology, fostering ongoing development and deployment of these cutting-edge emissions reduction technologies with the promise of working toward the goals of overall emissions reduction in the United States.”
Full text of the legislation can be found here.
