Nuclear, Carbon Capture, and Energy Storage Advocates Happy; Co-ops Disappointed by Stimulus Package

Although provisions in the $900 billion stimulus package agreed to by Congress on Dec. 21 that will extend the solar investment tax credit (ITC) and the wind production tax credit (PTC) received the greatest publicity, lawmakers also authorized about $35 billion for clean energy research and development (R&D) programs focused on solar technology, advanced nuclear technology, geothermal, wind, energy storage, grid modernization, and carbon capture technology, including a large-scale carbon sequestration demonstration program. However, a key provision sought by the National Rural Electric Cooperative Association (NRECA) was not included in the package.

Support for Nuclear Power Initiatives

The bill specifically allots $1.5 billion for nuclear energy programs. Maria Korsnick, president and CEO of the Nuclear Energy Institute, said the funding shows the strong bipartisan support nuclear power has in the U.S. “This legislation demonstrates growing confidence in our nation’s largest source of carbon-free energy, while building on efforts to ensure nuclear energy is properly valued alongside wind and solar in the United States’ carbon-free energy future,” she said.

“By including key elements of the Nuclear Energy Leadership Act in this legislation, Congress has signaled its commitment to accelerating the deployment of next-generation nuclear reactor technologies. Funding for advanced reactor demonstrations, including small modular reactors and microreactors, will keep America competitive in this strategic sector,” Korsnick added.

Carbon Capture a Priority

The omnibus spending bill also includes a two-year extension of the 45Q tax credit. Section 45Q provides a tax credit on a per-ton basis for CO₂ that is sequestered. From 2008 to 2018, an incentive of $20 per metric ton for CO₂ geologic storage and $10 per metric ton for CO₂ used for enhanced oil recovery (EOR) or enhanced natural gas recovery was available.

In February 2018, with the passage of the Bipartisan Budget Act of 2018, the tax credit was updated, increasing it to $35 per metric ton for EOR and $50 per metric ton for geologic storage by 2026. The $35 tax credit is also available for non-EOR CO₂ utilization and direct air capture projects.

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