The emerging low-carbon hydrogen and carbon capture, utilisation and storage (CCUS) industries could play a vital role in the transition to a lower-carbon future. Rapid decarbonisation of the US energy sector is becoming increasingly important to achieve state and national clean energy targets. The bill clarifies and aligns IRS guidelines with current Environmental Protection Agency (EPA) regulations that already reflect operational and legal differences between enhanced oil and gas recovery and geological storage under the Clean Air Act and the Safe Drinking Water Act.US infrastructure bill lays foundations for a low-carbon future Bill supports development and expansion of the hydrogen industry in the US through a mix of regulatory initiatives, federal grants and other incentives The administrative action would follow Hoeven’s CO 2 Regulatory Certainty Act, legislation that aligns tax guidelines with existing federal regulation at the EPA to ensure CCS project developers can utilize the Section 45Q tax credit. Interior Department, to implement the recently expanded Section 45Q tax credit in a manner that reflects EPA’s separate regulatory treatment of carbon storage,” the letter continues.
Treasury Department and IRS, in consultation with the EPA, U.S. In the interim, I respectfully ask the U.S. “Last year, I introduced the CO 2 Regulatory Certainty Act (S.1663) to provide permanent, statutory certainty for claiming the tax credit for anthropogenic CO 2 used as a tertiary injectant in an enhanced oil and gas recovery, and I continue to work with my colleagues in Congress to pass this important legislation. Subjecting enhanced oil and gas recovery operators to a different set of regulatory requirements than EPA already promulgated has, in turn, prevented numerous operators from making long-term investments in energy and infrastructure projects that promote the beneficial use of CO 2 and domestic energy production, as well as improve environmental stewardship,” wrote Hoeven. At present, the agencies have defaulted to using only EPA’s geological sequestration requirements to verify eligibility for the tax credit. Treasury Department guidance and Internal Revenue Service (IRS) directives do not reflect EPA’s differentiated regulatory treatment for purposes of claiming the Section 45Q tax credit.
In a letter to the Treasury Secretary, the senator outlined the importance of implementing the tax credit to reflect the difference between geological storage and enhanced oil and gas recovery, as promulgated by the Environmental Protection Agency (EPA). Treasury Department Secretary Steven Mnuchin to provide regulatory certainty when implementing the recently renewed 45Q tax credit for carbon capture and sequestration (CCS) to ensure energy producers are able to utilize the credit for enhanced oil and gas recovery. WASHINGTON – Senator John Hoeven today pressed U.S. 04.30.18 Hoeven Presses Treasury to Ensure 45Q Tax Credit Works for Energy Producers Senator’s CO2 Regulatory Certainty Act Would Provide Long-Term, Regulatory Certainty