U.S. Sen. Michael Bennet introduced a bipartisan bill with U.S. Sen. Lisa Murkowski, R-Alaska, on Thursday that establishes tax credits for carbon dioxide removal projects.
Carbon dioxide removal is the process of capturing carbon dioxide from the air both directly and indirectly. Direct capture of carbon dioxide occurs when chemicals react with carbon to capture it. Then, the carbon can be stored underground by injecting it into rocks. The method can be used to benefit agriculture practices because rocks weather into the soil and plants need carbon dioxide to grow.
For indirect capture, biomass can be specifically grown for carbon dioxide removal. Since plants photosynthesize, they are able to naturally store carbon. The biomass can also be permanently buried to avoid decomposition, or be converted into bio fuel.
If passed, the bill would establish a $250 credit per net metric ton of carbon for direct capture projects and $110 for indirect capture.
The projects, although “technology-neutral,” must meet specific qualifications for long-term storage after multiple field trials. The requirements include storage for 1,000-plus years and confirming that the capture is net zero. For the biomass option, the biomass must be derived from agriculture wastes and are on lands that are actively cultivated.
The Secretary of Treasury and Secretary of Energy would approve the projects.
The Inflation Reduction Act raised an existing tax credit for direct air capture and sequestration of carbon dioxide, but no special tax credit for removal projects that fulfill the longer term requirements.
Bennet discussed the importance of carbon dioxide removal during a forum with the World Resources Institute in September. Bennet said that since Colorado is a leader on climate, Colorado would be a place to start implementing the projects.
“It is very plausible to me as it is to the people that I represent that if we could figure out a way to capture the carbon dioxide that’s already in the environment that we will be much more likely to meet our goals (than) if we don’t,” said Bennet during the forum. “That is why I am interested in this.”
Since carbon dioxide removal intersects with agriculture through biomass, Bennet sees the legislation as a benefit to the agriculture community.
“We are not going to be able to solve our climate issues in a meaningful way if we don’t engage in American agriculture,” Bennet said. “We have been able to work with Republican parts of my state to develop legislative ideas that are making a difference.”
Peter Psarras, who also spoke at the forum, is a research assistant professor at the University of Pennsylvania. Psarras oversees carbon dioxide removal and carbon capture research and formerly worked at the Colorado School of Mines. He said it is important that community engagement is a part of implementing carbon dioxide removal projects. Carbon dioxide removal offers a wide variety of approaches that can be used for different communities.
“I think there's community engagement that needs to happen,” Psarras said. “It needs to be robust, but there's social and environmental impact assessments that need to predate that so that these technology developers are coming with those risks and benefits in hand.”
Maria Tedesco is an intern for The Durango Herald and The Journal in Cortez and a student at American University in Washington, D.C. She can be reached at mtedesco@durangoherald.com.
