Cramer Calls for Updated Carbon Sequestration Credit Guidance

March 18, 2019

Honorable Steve Mnuchin
Secretary
U.S. Department of Treasury
1500 Pennsylvania Avenue, NW
Washington, DC 20220

Charles Rettig
Commissioner
Internal Revenue Service
1111 Constitution Avenue, NW
Washington, DC 20224

Dear Secretary Mnuchin and Commissioner Rettig:

As you know, I have long been an advocate for updated Internal Revenue Service guidance on the 45Q tax credit for sequestration of carbon dioxide. It is critical to not only establish this guidance in a time manner, but to get it done right so it actually works.

Reports from the CERAWeek Conference in Houston, TX last week indicated substantial interest in your office's ongoing work. Comments ranged from a nonpartisan coalition of companies, labor groups and NGOs stating, "as long as the IRS remains silent on what the guidance is going to look like, private capital will remain on the sides" to an energy company vice president stating, "lack of clarity and uncertainty just delays the development o fa technology [that] could be critical to solving some of the climate challenges. North Dakota producers echo these sentiments. With over a year since the enactment of the Bipartisan Budget Act, progress hinges on clarity from your offices.

I once again urge you to recognize the Environmental Protection Agency's regulatory work in determining secure geological storage since your original 2009 guidance was issued. North Dakota generates the second largest amount of oil in the nation. If 45Q is going to successfully incentivize significant carbon capture, it must be applicable to producers across the nation, not just a select few.

Thank you for your efforts and please keep me apprised of your progress.

Sincerely,

Kevin Cramer
United States Senator

cc:
Administrator Andrew Wheeler
Secretary Rick Perry