USE IT carbon capture bill becomes law, incentivizing development and deployment
The Utilizing Significant Emissions with Innovative Technologies (USE IT) Act was signed into law this week, extending the 45Q tax credit for carbon capture projects for two years and supporting carbon utilization and direct air capture research.
The legislation, originally introduced by U.S. Sen. John Barrasso (R-WHY), chairman of the Senate Committee on Environment and Public Works (EPW), was included as part of the legislative package to fund the federal government.
Along the way, it also clarifies that carbon capture, utilization, and storage projects (CCUS) and CO2 pipelines are now eligible for the streamlined permitting review process created under the FAST Act and orders the Council on Environmental Quality (CEQ) to create guidance to speed the development of CCUS facilities and CO2 pipelines. It also will create task forces to gather input from stakeholders who stand to be affected by updated and improved guidance.
“Wyoming is already leading the way on carbon capture research,” Barrasso said. “At the Integrated Test Center in Gillette, researchers are developing innovative solutions that will allow us to keep using Wyoming’s natural resources. The USE IT Act will lead to considerably more groundbreaking research. By converting carbon emissions into valuable and marketable products, we can help address a changing climate and boost Wyoming’s economy at the same time.”
As for the 45Q tax credit, the effort incentivizes utilities and other industrial sources to support CCUS projects. This, Barrasso and other supporters hope, will further reduce the energy and industrial sectors’ carbon footprints over the long term.
