US Lawmaker Introduces Bill to Eliminate 45Q Carbon Credits for Oil Recovery

The bill has little chance of being adopted into law, but reflects deep political divisions in Congress over whether and how carbon capture can be used as a tool in the fight against climate change.

Leah Douglas, Reuters
US Lawmaker Introduces Bill to Eliminate 45Q Carbon Credits for Oil Recovery

Rep. Ro Khanna (D-CA), pictured center, attends a demonstration at the Capitol in September to address the environmental impact of the infrastructure bill. Khanna hopes the bill he introduced on Dec. 13 will be adopted into the Senate’s version of the Build Back Better Act (BBBA), the budget reconciliation bill. (Source: Phil Pasquini / Shutterstock.com)

California lawmaker Ro Khanna introduced a bill into the U.S. House of Representatives on Dec. 13 that would prevent investors from securing carbon capture and sequestration tax credits if the carbon is used to boost oil production.

The bill has little chance of being adopted into law, but reflects deep political divisions in Congress over whether and how carbon capture can be used as a tool in the fight against climate change.

The tax credit, known as 45Q, allows companies to earn money for every ton of carbon that they capture off a polluting facility and store underground. That includes carbon injected into oil fields to push trapped oil out of the ground, something the industry calls EOR.

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