Barrasso, Colleagues Introduce Enhancing Energy Recovery Act

WASHINGTON, D.C. – Today, U.S. Senators John Barrasso (R-Wyo.), James Lankford (R-Okla.), Bill Cassidy (R-La.), John Hoeven (R-N.D.), Jim Justice (R-W.Va.), and Tim Sheehy (R-Mont.) introducedlegislationto enhance carbon capture incentives and energy production.
TheEnhancing Energy Recovery Act(S. 425) would create parity under the Section 45Q carbon capture tax credit by giving across-the-board, equal treatment for carbon captured for increased energy production, utilization, and sequestration.
“Wyoming proudly leads the way on carbon capture projects. We have used this technology to take carbon out of the air and find alternate, productive uses for it,”said Senator Barrasso. “Using carbon for enhanced oil and natural gas recovery has proven to significantly increase energy production while reducing carbon emissions. Changes to Section 45Q made it harder for American energy producers and manufacturers to take advantage of this credit. Our bill will fix this policy and ensure equal treatment for energy production, utilization, and sequestration. By bolstering our national energy security, we can support Wyoming’s energy workers and lower costs for Americans across the country.”
“Investing in the infrastructure to capture carbon means investing in tens of thousands of Louisiana jobs. And with Louisiana’s primacy over permitting, it will also create tens of billions of dollars of other investment,”said Dr. Cassidy. “Let’s help Louisiana continue to lead as an energy and manufacturing state.”
“North Dakota is leading the way in cracking the code on carbon capture utilization and storage (CCUS) technologies. This legislation will help to advance these technologies by making the tax credit for enhanced oil recovery and utilization the same as the tax credit for storage,”said Senator Hoeven. “Streamlining these benefits will enable more businesses to invest in these advanced technologies, boost economic growth, and help make America not only energy secure but energy dominant.”
This legislation is supported by the Wyoming Energy Authority, Petroleum Association of Wyoming, Carbon Utilization Research Council (CURC), Domestic Energy Producers Alliance (DEPA), Independent Petroleum Association of America (IPAA), National Rural Electric Cooperatives, CO2 Solutions Coalition, and the Compressed Gas Association.
“At a time where energy demand is soaring, it is more important than ever to ensure that the United States relies on domestic energy sources for our security. Wyoming has long been a leader in carbon management, whether it be using CO2 as a commodity for enhanced oil recovery or paving the way with CCUS technologies. Capturing CO2 and using it to increase our domestic production, keeping energy reliable and affordable for all Americans, is a win for our nation. This bill is a crucial piece of legislation to ensure a level playing field for the growing markets that use CO2. We applaud Senator Barrasso’s continued leadership and efforts to support Wyoming’s energy industry.” – Rob Creager, Executive Director of the Wyoming Energy Authority
“Senator Barrasso’s Enhancing Energy Recovery Act is the right approach for Wyoming’s oil and gas producers, and for national energy policy. In Wyoming, CO2 is a useful commodity, not a waste product, and so long as there is equal tax treatment for using CO2 to recover oil and gas, I’m confident Wyoming will benefit. We applaud Senator Barrasso and urge speedy passage of the Enhancing Energy Recovery Act.” – Pete Obermueller, President, Petroleum Association of Wyoming
“The Carbon Utilization Research Council (CURC) is pleased to support Senator Barrasso’s Enhancing Energy Recovery Act. As a coalition focused on the responsible use of our nation’s fossil resources, CURC commends the Senator’s efforts to create parity under the Section 45Q carbon sequestration tax credit by giving equal treatment for CO? captured for increased energy production, utilization, and sequestration. Expanding the use of CO? for enhanced oil recovery (EOR) not only helps facilitate the development of large-scale CCS deployment across the country, but also promotes a practical, market-driven approach to lowering emissions and producing a lower CO?-intensity barrel of oil. CURC looks forward to working with Senator Barrasso to advance this legislation as well as other policies that accelerate the development and deployment of CCS solutions.” – Shannon Angielski, Executive Director, CURC
The Independent Petroleum Association of America (IPAA) supports Senator Barrasso’s Enhancing Energy Recovery Act. Providing parity between carbon sequestration and utilization within the tax code ensures that CO2 is captured and stored in the most economically viable manner possible. The bill further incentivizes companies to continue to use direct air capture technology, fostering ongoing development and deployment of these cutting-edge emissions reduction technologies with the promise of working toward the goals of overall emissions reduction in the United States. IPAA thanks Senator Barrasso for taking a pragmatic, forward looking approach to management of carbon dioxide emissions.” – Jeff Eshelman, President & CEO, Independent Petroleum Association of America
“We are pleased to express our strong support for Senator Barrasso’s Enhancing Energy Recovery Act, which takes a critical step forward in leveling the playing field for carbon dioxide sequestration. This balanced approach provides a powerful incentive for the oil and gas industry to continue its leadership in carbon capture, utilization, and storage (CCUS) while also recognizing the role of EOR in safely managing carbon dioxide and extending the productive life of oil fields. Senator Barrasso’s vision for equitable treatment of carbon management technologies aligns with the industry’s commitment to reducing emissions, enhancing energy security, and delivering economic benefits to rural communities.” – Jerry R. Simmons, President & CEO, Domestic Energy Producers Alliance
Full text of the legislation can be foundhere.
Background:
TheEnhancing Energy Recovery Actwill:
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