Clean Energy Coalition Statement in Response to President Biden’s Budget Request For the Fiscal Year 2022
The Clean Energy Coalition issued the below statement following President Joe Biden’s budget request for 2022.
In the budget request for the year 2022, Joe Biden’s administration continues to show its commitment to finding a sustainable carbon management plan. Similar to other measures included in the bipartisan legislation, the president’s announcement shows the need for common ground. It emphasizes the need for a complete portfolio inclusive of carbon capture policies that aim to meet the present mid century climate goals, while offering high-wage jobs in the country.
“We agree that robust federal funding is necessary for the economywide placement of carbon capture advancements. Biden’s administration is calling for an important yet modest increase in carbon capture, storage and utilization programs through the department of energy.”
“As the budget appropriations for the fiscal year 2022 continue, we, the Clean Energy Coalition, would like to urge the administration alongside the congress to fund carbon capture programs. Also, we commend the government and administration since they included a direct pay option alongside a five-year period of the Section 45Q tax credit.”
Direct pay will ascertain the full value of the section tax credit flows directly into carbon capture. Thus, avoiding loss of reasonable percentage to tax equity transactions. The five-year period offers investors ample time to plan, engineer, seek permission and funds for their projects to ensure 45Q delivers the optimal level of technological innovations, job creation potential, and emissions reductions.
“Lastly, the Coalition welcomes Joe Biden’s administration proposal, which seeks to increase the value of Section 45Q tax credit to $85 per ton for every carbon capture project. The Coalition continues to support bipartisan efforts in the administration and congress.