2.b.i. Tax Credits; 2.a.ii. Loan Guarantees; 2.a.iii. Capital and operating subsidies
CITATION:
American Recovery and Reinvestment Act of 2009, Public Law: 111-5
STATUS:
Law and implementing regulations are in effect.
TIME FRAME Start:
February 16, 2009
TIME FRAME End:
DESCRIPTION:
Investment Tax Credit: This legislation allocated $2.3 billion to a 30 percent per year investment tax credit for advanced energy projects. The U.S. Energy Secretary will determine what portion of a project is eligible for a tax credit. The definition of advanced energy project includes “property designed to capture and sequester carbon dioxide emissions.” No later than 180 days after the enactment of the law, the Energy Secretary is to establish a qualifying advanced energy project program to consider certifications for qualified investments.
Fossil Energy Research: U.S. Department of Energy’s Fossil Energy Research and Development program was given $3.4 billion. A portion of that money is expected to be spent on carbon capture and sequestration.
Loan Guarantees: The legislation also adds another $6 billion for the loan guarantee program authorized by the Energy Policy Act of 2005. Carbon capture and sequestration projects may qualify for loan guarantees.
EXPERIENCE:
In October 2009 the U.S. Department of Energy announced $21.6 million in funding for studies of 12 projects to capture carbon from large-scale industrial sources for storage or beneficial use. Further ARRA funding will be awarded to the most promising of those projects for implementation during a competitive selection process.
On August 5, 2010, the US Department of Energy awarded $1 billion in Recovery and Reinvestment Act funding to the FutureGen Alliance, Ameren Energy Resources, Babcock & Wilcox, and Air Liquide Process & Construction, Inc. to build FutureGen 2.0, a clean coal repowering program and carbon dioxide (CO2) storage network.
