Please call your Senator immediately to urge Senator Baucus (D-MT) to include the CO2 capture incentive that was included in the energy tax bill (section 815 of the "Energy Advancement and Investment Act of 2007"; see http://finance.senate.gov/sitepages/leg/LEG%202007/Leg%20110%2062007a1.pdf) which the Senate Finance Committee passed in June 2007.
Here's the story. This week, we expect negotiations to proceed on the energy bill. As previously reported, the House and Senate passed vastly different versions of the bill earlier this year. It now appears that a conference will not be held. Instead, the House and Senate leadership will use a "ping-pong" approach under which the chambers will agree on text behind the scenes, then endeavor thereafter to pass an identical bill.
What does this have to do with CCS, you ask? A lot, as it so happens, because the current state of play of the energy bill means that supporters of CCS have a window of opportunity to have section 815 of the Energy Advancement and Investment Act of 2007 included in the energy bill. This will only occur, in our view, if interested parties call their Senators as soon as possible this week to have him/her contact Sen. Baucus with the request that the Senator fight to include section 815 in the energy bill.
Section 815 provides a $20/$10 per metric ton of CO2 capture incentives for deep saline/CO2-EOR, respectively. The CO2 must come from an industrial source. It only applies to qualified facilities, which is a plant that captures not less than 500,000 metric tons of carbon dioxide during the taxable year.
Is section 815 perfect? No. Will it exclude some facilities from qualifying? Yes. But it is still important because it is a start down the CCS path. The provision currently scores just north of $1B, which is a critical cut point, because if the provision becomes more inclusive, and thus expensive, it may be politically infeasible to pass Congress in the current pay-go budget environment (for the score of section 815, see http://finance.senate.gov/sitepages/leg/LEG%202007/Leg%20110%20061907%20chart.pdf).