Urging Them to Recognize the EPA’s Work in Determining Secure Geological Storage
WASHINGTON—U.S. Senator Kevin Cramer (R-N.D.) sent the following letter to U.S. Department of Treasury Secretary Steven Mnuchin and Internal Revenue Service (IRS) Charles Rettig today regarding reports on the administration developing guidance on the 45Q tax credit:
Dear Secretary Mnuchin and Commissioner Rettig:
As you know, I have long been an advocate for updated Internal Revenue Service guidance on the 45Q tax credit for sequestration of carbon dioxide. It is critical to not only establish this guidance in a timely manner, but to get it done right so it actually works.
Reports from the CERAWeek Conference in Houston, TX last week indicated substantial interest in your office’s ongoing work. Comments ranged from a nonpartisan coalition of companies, labor groups, and NGOs stating, “as long as the IRS remains silent on what that guidance is going to look like, private capital will remain on the sides” to an energy company vice president stating, “lack of clarity and uncertainty just delays the development of a technology [that] could be critical to solving some of the climate challenges.” North Dakota producers echo these sentiments. With over a year since the enactment of the Bipartisan Budget Act, progress hinges on clarity from your offices.
I once again urge you to recognize the Environmental Protection Agency’s regulatory work in determining secure geological storage since your original 2009 guidance was issued. North Dakota generates the second largest amount of oil in the nation. If 45Q is going to successfully incentivize significant carbon capture, it must be applicable to producers across the nation, not just a select few.
Thank you for your efforts and please keep me apprised of your progress.
United States Senator
CC: Administrator Andrew Wheeler
Secretary Rick Perry
Click here to download a copy of the letter.