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Committee approves subsidy to narrow federal 45Q gap and spur CO2 use for enhanced oil recovery
Summary
The Senate Minerals, Business & Economic Development Committee approved Senate File 17 to pay CO2 owners $10 per ton to narrow a federal tax‑credit gap and encourage carbon sales for enhanced oil recovery in Wyoming.
The Senate Minerals, Business & Economic Development Committee voted to approve Senate File 17, a measure to provide a $10-per-ton payment to carbon‑dioxide owners who make CO2 available for enhanced oil recovery (EOR) projects in Wyoming. The committee approved the bill by roll call, with Senators Cooper, Jones, Nethercott, Rothfuss and Chairman Anderson all voting aye.
Backers said the bill is designed to address a market distortion created by the federal Section 45Q tax credit, which currently provides higher per‑ton credits for permanent geologic sequestration than for CO2 used for EOR. Pete Obermueller, representing the Petroleum Association of Wyoming, said, “The idea here is to equalize 45Q between permanent sequestration and enhanced oil recovery,” and described the state payment as a partial offset to that federal gap.
The bill would require CO2 providers to qualify for the federal 45Q credit and for the CO2 to…
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