Overview
E&E News quoted Hunter Johnston in a May 29 article titled "Trump Admin Issues Long-Awaited CCS Tax Rule." The article discusses a Treasury Department rule outlining how companies can claim federal tax credits for carbon storage. The proposed rule specifies regulatory requirements on issues such as secure geological storage of greenhouse gas, procedures for third parties to claim the credit and eligible industrial facilities.
Johnston says that investors were waiting on clarity on those issues to move forward with projects. As one example, he notes that the rule proposes that secure geological storage of CO2 can be demonstrated through a published standard by the International Organization for Standardization. "This new pathway, which had been proposed by many commenters ... is a welcome addition," he says.
Another important issue addressed in the regulations involve recapture of the credit "in the event that CO2 is no longer considered to be disposed of in secure geologic storage," Johnston adds, referring to the possibility of escaped CO2.
The full article can be read at E&E News (subscription required). Johnston was also quoted on this issue in Bloomberg Tax and Utility Dive.
