1 year ago
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Yesterday, Senators Sheldon Whitehouse (D-RI) and Bill Cassidy (R-LA) introduced the Captured Carbon Utilization Parity Act, which would boost the 45Q tax credit for “carbon utilization”. The tax credit has a history of fraud, according to a 2020 Inspector General investigation, and has overwhelmingly subsidized increased oil production through enhanced oil recovery (EOR).
Environmentalists remain staunchly opposed to carbon capture and storage (CCS) as a lifeline to the fossil industry. CCS subsidizes pollution by embedding fossil infrastructure into frontline communities and exposing them to an unsafe and unproven build out of carbon pipelines and storage. Furthermore, the White House Environmental Justice Advisory Council specifically names CCS projects as not beneficial to communities.
Despite these concerns, the Inflation Reduction Act dramatically increased the value of the 45Q subsidy last year. Senators Whitehouse and Cassidy now propose a second increase, potentially awarding massive new giveaways to dubious utilization schemes that prop-up the fossil fuel and petrochemical industries.
Sarah Lutz, Climate Campaigner at Friends of the Earth, issued the following statement:
“We have real and proven solutions to address the climate crisis that don’t harm communities already overburdened with pollution. The Captured Carbon Utilization Parity Act will only undermine the needed transition away from fossil fuels. There is no legitimate reason to double down on subsidies for fossil fuel and petrochemical industry greenwashing scams. Senator Whitehouse should not work with Republicans to light taxpayer money on fire at the expense of our communities and climate.”
