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US senators introduce energy tax credit extenders bill

Federal lawmakers have introduced legislation to extend tax credits that favor the development of nuclear power, carbon capture technology and other energy-related projects.

Sen. Orrin Hatch, R-Utah, and several colleagues released the "Tax Extender Act of 2017" on Dec. 20, the same day the U.S. House of Representatives passed broader tax reform for a second time and sent it to President Donald Trump's desk.

One provision of the new bill, authored by Sen. Johnny Isakson, R-Ga., would extend nuclear production tax credits, or PTCs, for new projects. Nuclear PTC language was not included in the final tax bill.

The measure is time-sensitive, as Georgia regulators are scheduled to vote Dec. 21 on whether to allow continued construction at the troubled Vogtle expansion, which is years behind schedule and billions of dollars over budget. The plant's lead owner, Georgia Power Co., has said it might abandon its half-built reactors if PTCs are not passed by Congress.

"I encourage my Senate colleagues to act quickly to prevent tax increases that could hamper America's energy security," Isakson said in a statement. "In Georgia, keeping the Plant Vogtle nuclear energy project on track will not only strengthen America's energy security and national security, but it will preserve the more than 6,000 Georgia jobs created by this project. I remain committed to doing whatever I can to ensure that the Plant Vogtle project stays on track for completion."

Marie Gordon, an Isakson spokeswoman, wrote in an email that the senator "is hopeful [the extenders bill] gets done by the end of this year or early next year." A spokesperson for the Finance Committee did not comment in time for publication on when the panel would take up the legislation.

Carbon capture, coal provisions

The legislation also would extend the 45Q tax credit extension for carbon capture, use and sequestration technology seen as an important step in furthering the development of next generation coal power plants. it would allow for a credit of $20 per tonne of qualified carbon oxide captured and stored geologically and $10 per tonne of qualified carbon oxide captured and used for enhanced oil recovery or natural gas recovery.

Katie Niederee, a Finance Committee spokeswoman, said the PATH Act in 2015 made a variety of extenders permanent, and this new bill will provide extensions for those that expired at the end of 2016.

"Extending these provisions would help families, individuals and small businesses in Utah and across the country, and the chairman is committed to working with members to address the expiring extenders in short order," she wrote in an email.

The act also would extend production credit for Indian coal facilities.

Other energy credit extensions include credit for the costs of residential energy property such as solar electric, solar water heating, fuel cells, small wind energy and geothermal heat pumps through 2021, as well as credits for certain alternative fuel vehicle extensions and energy efficient new homes through 2018. The act further extends a mine rescue training credit along with an extension of an election to expense mine safety equipment to Dec. 31, 2018.