Cramer Re-introduces Bill Incentivizing Fossil Fuel Industry to Protect Environment
Congressman Kevin Cramer, along with Rep. David McKinley (R-GA), Rep. Jeff Duncan (R-SC), Rep. Steven Palazzo (R-MS), and Rep. Gregg Harper (R-MS) re-introduced H.R. 2010, the CO2 Regulatory Certainy Act. The bill, which is a companion to Sens. John Hoeven (R-ND) and Steve Daines’ (R-MT) legislation, allows for better use of the Section 45Q carbon sequestration tax credit.
The 45Q tax credit incentivizes power plants to capture carbon dioxide by providing a tax credit. As it stands, tax guidelines and current federal regulations do not align, creating regulatory confusion and making it next to impossible for companies to use the tax credit for projects that will apply the captured carbon dioxide for enhanced oil and gas recovery.
H.R. 2010 bridges the gap by equalizing Internal Revenue Service (IRS) guidelines with Environmental Protection Agency (EPA) rules, which gives the industry certainty and incentive to utilize carbon dioxide as a resource for resource development and economic growth rather than strictly a waste.
“This straightforward bill aligns EPA and IRS regulations as they relate to the existing carbon sequestration tax credit,” said Cramer. “Under the Obama Administration, IRS guidelines were set over and above even the EPA’s requirements for enhanced oil and gas projects. This is one small way to help President Trump rebalance the previous Administration’s insistence on picking winners and losers in energy markets at the expense of consumers and job producers. I will continue to work on every opportunity to ensure a level playing field for all energy sources.”