McKinley Continues Focus on Energy Innovation

Press Release

Date: March 12, 2021
Location: Washington, DC

Representative David B. McKinley, P.E. (R-W.Va.) continues to champion innovation as a way to decrease carbon emissions, introducing two bills this week aimed at decreasing carbon emissions by incentivizing the development of carbon capture projects.

On Wednesday, McKinley reintroduced the bipartisan Carbon Capture Modernization Act, which will advance carbon capture technologies at coal plants.

This bipartisan legislation would modernize the 48A tax credit -- which is aimed at retrofitting coal plants with carbon capture technology -- to make it easier for businesses to receive the tax credit.

"Modernizing the 48A tax credit will make it easier for businesses to retrofit coal facilities around the nation with carbon capture technologies," said McKinley. "This bipartisan legislation builds off our work in the last Congress to incentivize the development of carbon capture technologies which will help allow us to use all of our energy resources for years to come while reducing emissions."

This week, McKinley also introduced the CCUS Innovation Act, which will help develop carbon capture projects by making them eligible for loan guarantees from the Department of Energy (DOE). The bill clarifies the scope of CCUS projects eligible for loans and expands eligibility to include CCUS infrastructure and pipelines.

"Investing in carbon capture, utilization, and storage projects will help decrease carbon emissions while keeping all energy resources in the mix," said McKinley. "This bill will help developers get more CCUS projects built, allowing us to continue to advance this technology in America and across the globe."

These are just the latest in series of bills McKinley has lead promoting innovation as a way to limit emissions and maintain coal and natural gas. Earlier this year he reintroduced the ACCESS 45Q Act to extend the 45Q tax credit for carbon dioxide sequestration by ten years.

Background

McKinley has been leading the fight to reauthorize the carbon capture tax credit:

In 2019, he co-sponsored a bipartisan letter to the U.S. Department of Treasury urging them to issue interim guidance so that project developers can begin utilizing the 45Q tax credit without further delay.
In 2017, he was a lead co-sponsor of the Carbon Capture Act (H.R. 3721), which was inserted into the bipartisan budget agreement, which expanded the existing tax credit for carbon capture and make it more appealing. As the House and Senate debated whether to include tax extenders in the bipartisan budget agreement, McKinley:
Led a bipartisan letter to House leadership and the House Committee on Ways and Means, urging them to include 45Q in any package.
Sent an "Action Alert" to Coal Caucus members.
Reached out to Majority Leader Kevin McCarthy (R-CA) about including 45Q
Spoke during a Republican Conference meeting about 45Q and talked directly to Ways and Means Chairman Kevin Brady (R-TX) about the importance of maintaining it.
Because of McKinley's leadership on the issue, the 45Q tax credit was included as part of the bipartisan budget agreement.
McKinley has been a staunch supporter of developing carbon capture technologies:

In 2017, he was a lead co-sponsor of the Carbon Capture Act (H.R. 3761), which was inserted into the bipartisan budget agreement, which expanded the existing tax credit for carbon capture and make it more appealing.
In 2019, he introduced the USE IT Act (H.R.1166), a bipartisan, bicameral bill that supports the development and demonstration of vital carbon capture and removal technologies.
In 2019, he was a lead co-sponsor on the Fossil Energy Research and Development Act of 2019 (H.R.3607). The bill continues to reauthorize research activities in the Department of Energy's Office of Fossil Energy and set priorities for the next generation of clean energy technologies that will help the energy industry continue to flourish in our country.
In 2020, he released legislative language for an energy and climate proposal. This bipartisan approach would establish an energy innovation program that invests CCUS, advanced nuclear, and renewables with storage for a decade, followed by a clean energy standard for the power sector.
In 2021, he introduced the ACCESS 45Q Act (H.R. 8858). This bipartisan legislation extends the date for projects to begin construction to claim the 45Q tax credit for carbon oxide sequestration by ten years. It also provides a direct pay elective for the full value of the tax credit, which makes it more useful for project developers.
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