CO2 Coalition Urges Clarity and Support from US Treasury
October 6, 2023
In a proactive move aimed at maintaining the steady supply of Carbon Dioxide (CO2), the CO2 Solutions Coalition, composed of CO2 Suppliers, and end users, under the leadership of the Compressed Gas Association (CGA), has submitted a formal letter to the United States Treasury seeking guidance that aligns with the congressional vision for incentivizing CO2 utilization while addressing specific regulatory concerns.
To view the Treasury Letter please visit CO2Solutions.org
At the heart of the coalition’s request is the need for clear and unambiguous guidance regarding the application of the “80/20 Rule” to equipment used in carbon capture processes. Furthermore, the coalition is seeking guidance to establish practical procedures that taxpayers can follow to obtain an approved lifecycle analysis (LCA) in a timely manner. This LCA plays a crucial role in determining the quantity of qualified carbon oxide utilized, a key aspect of incentivizing CO2 utilization.
The letter, which carries the weight of several influential organizations, bears the signatures of the following industry leaders:
- American Beverage Association
- Compressed Gas Association
- American Frozen Foods Institute
- Brewers Association
- Beer Institute
- North American Meat Institute
- National Turkey Federation
The CO2 Solutions Coalition represents a collective effort to safeguard the reliable supply of CO2, which is indispensable for various critical applications. CO2 is vital for ensuring food security by supporting the production and preservation of food and beverages, serving life-saving functions in medical applications, and bolstering U.S. infrastructure development.
The Coalition’s mission extends beyond this letter; it includes educating Members of Congress about the indispensable role of CO2 and addressing unintended consequences associated with the 45Q tax credit, which could inadvertently shift market priorities towards CO2 sequestration rather than its utilization.
“This letter is the first step of many by the Coalition” said CGA President and CEO, Rich Gottwald, “We are working every day to safeguard America’s supply chain by providing facts, resources, and information about the vital role carbon dioxide plays in our economy.”
To learn more about the Coalition, please visit CO2Solutions.org.