On behalf of the undersigned member companies and organizations, we request that Congress include a permanent 

extension of the Section 45Q Tax Credit for Carbon Dioxide Sequestration in a technical corrections act or other 

appropriate legislation. Section 45Q provides a per ton tax credit for the storage of carbon dioxide (C02) through the use 

of enhanced oil recovery (EOR) and is the most important benefit in the tax code for incentivizing carbon capture 

utilization and storage (CCUS) at power plants and industrial facilities. 

As you know, the Omnibus Appropriations Act of 2016 provided an extension of expiring tax benefits for the wind and 

solar industries. Inadvertently, some other energy credits, such as geothermal and fuel cell technologies, were not 

provided with a similar extension and are scheduled for expiration in the near future. Similarly, Section 450, will expire 

the year in which the currently authorized 75 million tons of C02 are stored, and roughly half those credits had already 

been claimed as of 2014. Due to long lead times for construction of such projects, the Section 45Q credit has, for 

practical purposes, already expired because the lack of financial certainty regarding future availability of credits deters 

private investment in new commercial C02 capture projects. 

Capturing and utilizing power plant and industrial C02 through EOR yields additional American oil from existing wells 

that would otherwise not be accessed, thereby expanding domestic reserves and reducing imports. The U.S. 

independent oil and gas industry is the world leader in C02-EOR and could produce billions of barrels of additional 

American oil from existing fields, while safely and permanently storing billions of tons of C02. Realizing our full oil 

production and carbon storage potential will require that more C02 becomes available for the industry to purchase and 

put to productive use. Fortunately, four decades of commercial experience show that many industries-coal gasification, 

natural gas processing, chemicals, fertilizer, refining, ethanol and others-can become valued partners in supplying that 

additional C02. 

CCUS also represents an essential component of our nation's strategy for achieving greenhouse gas emissions 

reductions. Without widespread deployment of carbon capture technologies, we will simply fail to meet global midcentury goals for mitigating carbon emissions from electric power generation and a wide range of industrial activities. 

Congressman Mike Conaway is preparing to introduce legislation to provide a sensible solution for ensuring the financial 

certainty and effectiveness of Section 45Q in driving private sector innovation and investment in commercial 

deployment of carbon capture projects. His proposal would provide for a necessary per ton increase in the value of the 

tax credit and make it permanent. 

Congressman Conaway's forthcoming legislation would achieve a genuine win-win for our nation's economy and 

environment, as evidenced by the remarkable breadth of our coalition, which is virtually unprecedented in our politically 

polarized national energy policy arena. Therefore, we respectfully urge your inclusion of this measure in a technical 

corrections act or other legislative vehicle suitable for addressing energy tax provisions. 

Sincerely, 
Shannon Angielski 

Executive Director 

Coal Utilization Research Council 

Michael Flannigan 

Senior Vice President, Global Government Affairs 

Peabody Energy 

(for) 

David Goldston 

Director, Government Affairs Natural Resources Defense Council 

Sasha Mackler 

Vice President, Summit Carbon Capture 

Summit Power Group, LLC 

Brad Markell 

Executive Director 

AFL-CIO Industrial Union Council 

Richard Reavey 

Vice President Public Affairs 

Cloud Peak Energy 

Brad Crabtree 

Vice President for Fossil Energy 

Great Plains Institute 

National Enhanced Oil Recovery Initiative 

Deck Slone 

Senior Vice President, Strategy and Public Policy 

Arch Coal 

Mark Calmes 

Vice President, Environmental 

Archer Daniels Midland Company 

Kurt Waltzer 

Managing Director 

Clean Air Task Force 

D. Michael Langford 

National President 

Utility Workers Union of America, AFL-CIO 
Josh Freed 

Vice President for Clean Energy 

Third Way 

Robert G. Mannes 

President & C.E.O. 

Core Energy, LLC 

Hunter 

~~~ 

Johnston 

Counsel 

Lake Charles Methanol, LLC 

NEORI Participants 

Tom Willis 

Chief Executive Office 

Conestoga Energy Partners, LLC 

Bill Rase 

Executive Director 

Port of ake Charles, Louisiana 

AFL-CIO I AIR PRODUCTS, INc. I ALSTOM, INc. I ARCH CoAL, INc. I ARCHER DANIELS MIDLAND co. I C12 ENERGY I CLEAN AIR TASK 

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