U.S. Senate – Senator Tim Sheehy introduced the Carbon Resource Innovation Act, a bill making innovative, private sector technology to capture carbon eligible for the 45Q carbon capture tax credit. This legislation will make it easier for companies to engage in responsible forest management, reducing the risk of catastrophic wildfire. Senator Maria Cantwell (D-Wash.) joined Senator Sheehy in introducing the bill.
“As we continue to enact commonsense reforms to make our forests and communities more resilient against the growing threat of wildfire, it is critical we use the innovative technology and tools at our disposal to ensure proper fuels management. I’m proud to lead yet another bipartisan bill to achieve that goal and keep our treasured landscapes, homes, and businesses safe from the threat of wildfire,” said Senator Tim Sheehy.
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The 45Q carbon capture tahttps://www.google.com/search?q=x credit incentivizes companies to capture gaseous CO2 from industrial emitters or directly from the atmosphere to utilize or geologically store it. Originally signed into law by President Bush, 45Q has been revised by Republicans and Democrats, but retains dated limitations, including the requirement that carbon be captured solely in gaseous form. This means 45Q does not recognize technologies that capture carbon in a liquid or solid form, even though they mitigate CO2 emissions and can help drive innovative uses of natural gas or accelerate wildfire fuels reduction from forestry residues.
The Carbon Resource Innovation Act makes these innovative technologies that capture carbon in a solid or liquid form eligible for 45Q, as long as they prevent the emission of CO2 and adhere to the same rigorous verification requirements as current technologies. This levels the playing field for carbon management companies and allows innovative technologies to drive additional public interest benefits and catalyze economic opportunities throughout the country.
The bill aligns with previous modifications to 45Q that adapted to new opportunities for carbon sequestration but has the added benefit of being inclusive of technologies being deployed today and in the future. By providing a clear innovation pathway, the Carbon Resource Innovation Act eliminates the need for each new technology to come back to Congress for inclusion and instead provides certainty to innovators seeking to scale.
Examples of technologies that meet the spirit of 45Q by capturing carbon in transparent and highly verifiable ways, but are currently excluded, include:
Methane pyrolysis, which produces hydrogen using by splitting methane (CH₄), hydrogen and solid carbon. While traditional hydrogen production is eligible for 45Q if it captures carbon in a gaseous form, methane pyrolysis (which produces hydrogen from the same fuel source) is excluded because the carbon is sequestered in a solid form. This solid carbon can then be used as carbon black, graphite, and asphalt binder.
Biomass Carbon Removal and Storage (BiCRS), which converts CO2 already captured from the atmosphere in forestry or agricultural residues into a carbon-rich solid or liquid. These carbon resources can be used in industrial processes or permanently sequestered geologically or in specially designed vaults. These agricultural residues (e.g., corn stover, wheat straw), forestry residues, and other organic wastes would otherwise decompose or burn. By putting these undervalued carbon resources to work, this bill will create new income streams for American farmers and drive wildfire mitigation by creating a market for low- and no-value material, reducing disposal costs.
Read the full text of the Carbon Resource Innovation Act HERE.
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