Energy

Dems Back Funneling Taxpayer Dollars Toward Faltering ‘Clean Coal’ Projects

REUTERS

Daily Caller News Foundation logo
Michael Bastasch DCNF Managing Editor
Font Size:

Democratic senators are pushing legislation to double the tax subsidies for coal-fired power plants that use carbon capture and storage, or CCS technology, despite the huge problems plaguing such clean coal projects.

Sens. Heidi Heitkamp of North Dakota and Sheldon Whitehouse of Rhode Island introduced a bill Wednesday to increase subsidies for coal plants using CCS. The bill would “more than double the tax breaks, to $50 per metric ton of permanently stored CO2 and $35 per metric ton of carbon dioxide captured for use in enhanced oil recovery and other newly authorized activities,” according to Politico.

Democrats would also raise the CO2 tonnage cap on tax breaks for coal companies looking to use CCS. About half the 75 million ton cap has already been used, and some are asking for more subsidies to attract more investment.

Heitkamp wants more subsidies for CCS coal plants because her state is dependent on coal for 75 percent of its electricity needs and Environmental Protection Agency (EPA) global warming regulations will likely force more coal plants to close down unless they use CCS.

EPA’s so-called Clean Power Plan requires North Dakota to reduce carbon dioxide emissions from power plants by nearly 45 percent, and EPA effectively banned building new coal plants unless they use CCS.

There’s just one problem: The CCS power plants being built are heavily reliant on taxpayer support and have suffered major setbacks from construction delays to cost overruns.

The Obama administration dedicated more than $3 billion toward commercializing CCS technology for power plants, but so far, none of those projects have come online.

The New York Times recently ran a piece with the headline, “Piles of Dirty Secrets Behind a Model ‘Clean Coal’ Project.” The Times reported the Kemper Project in Mississippi, “a centerpiece of President Obama’s climate plan, has been plagued by problems that managers tried to conceal, and by cost overruns and questions of who will pay.”

The Kemper plant has cost taxpayers $265 million, and is more than two years behind schedule. The “first­-of-­its­-kind” CCS plant was supposed to cost $2.4 billion, but has eaten up $4 billion and it’s even up and running.

But Kemper isn’t the first clean coal boondoggle. The Energy Department announced in 2015 it was pulling out of a major CCS project in central Illinois, called FutureGen 2.0, after having awarded it $1.1 billion.

“In order to best protect taxpayer interests, the Department of Energy has initiated a structured closeout of federal support for the project that will help maximize the value of investments to date while minimizing ongoing risks and further costs,” DOE spokesman Bill Gibbons said in February 2015.

More recently, the Energy Department’s inspector general questioned the viability of another CCS power plant in Texas the agency had given $116 million in taxpayer support. The IG warned taxpayers could lose $450 million if the project goes under.

“Although we have not yet completed our audit, we are issuing this Special Report to communicate our immediate concern about the Project to allow the Department sufficient time to take actions to protect taxpayer funds,” the IG reported about the Texas Clean Energy Project (TCEP).

“Although construction of the plant was originally planned for completion in June 2014, the Project remains in the project definition phase,” the IG warned. “Additionally, we found that the Department had taken actions that increased its financial risk in the Project.”

Follow Michael on Facebook and Twitter

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

PREMIUM ARTICLE: Subscribe To Keep Reading

Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign Up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
BENEFITS READERS PASS PATRIOTS FOUNDERS
Daily and Breaking Newsletters
Daily Caller Shows
Ad Free Experience
Exclusive Articles
Custom Newsletters
Editor Daily Rundown
Behind The Scenes Coverage
Award Winning Documentaries
Patriot War Room
Patriot Live Chat
Exclusive Events
Gold Membership Card
Tucker Mug

What does Founders Club include?

Tucker Mug and Membership Card
Founders

Readers,

Instead of sucking up to the political and corporate powers that dominate America, The Daily Caller is fighting for you — our readers. We humbly ask you to consider joining us in this fight.

Now that millions of readers are rejecting the increasingly biased and even corrupt corporate media and joining us daily, there are powerful forces lined up to stop us: the old guard of the news media hopes to marginalize us; the big corporate ad agencies want to deprive us of revenue and put us out of business; senators threaten to have our reporters arrested for asking simple questions; the big tech platforms want to limit our ability to communicate with you; and the political party establishments feel threatened by our independence.

We don't complain -- we can't stand complainers -- but we do call it how we see it. We have a fight on our hands, and it's intense. We need your help to smash through the big tech, big media and big government blockade.

We're the insurgent outsiders for a reason: our deep-dive investigations hold the powerful to account. Our original videos undermine their narratives on a daily basis. Even our insistence on having fun infuriates them -- because we won’t bend the knee to political correctness.

One reason we stand apart is because we are not afraid to say we love America. We love her with every fiber of our being, and we think she's worth saving from today’s craziness.

Help us save her.

A second reason we stand out is the sheer number of honest responsible reporters we have helped train. We have trained so many solid reporters that they now hold prominent positions at publications across the political spectrum. Hear a rare reasonable voice at a place like CNN? There’s a good chance they were trained at Daily Caller. Same goes for the numerous Daily Caller alumni dominating the news coverage at outlets such as Fox News, Newsmax, Daily Wire and many others.

Simply put, America needs solid reporters fighting to tell the truth or we will never have honest elections or a fair system. We are working tirelessly to make that happen and we are making a difference.

Since 2010, The Daily Caller has grown immensely. We're in the halls of Congress. We're in the Oval Office. And we're in up to 20 million homes every single month. That's 20 million Americans like you who are impossible to ignore.

We can overcome the forces lined up against all of us. This is an important mission but we can’t do it unless you — the everyday Americans forgotten by the establishment — have our back.

Please consider becoming a Daily Caller Patriot today, and help us keep doing work that holds politicians, corporations and other leaders accountable. Help us thumb our noses at political correctness. Help us train a new generation of news reporters who will actually tell the truth. And help us remind Americans everywhere that there are millions of us who remain clear-eyed about our country's greatness.

In return for membership, Daily Caller Patriots will be able to read The Daily Caller without any of the ads that we have long used to support our mission. We know the ads drive you crazy. They drive us crazy too. But we need revenue to keep the fight going. If you join us, we will cut out the ads for you and put every Lincoln-headed cent we earn into amplifying our voice, training even more solid reporters, and giving you the ad-free experience and lightning fast website you deserve.

Patriots will also be eligible for Patriots Only content, newsletters, chats and live events with our reporters and editors. It's simple: welcome us into your lives, and we'll welcome you into ours.

We can save America together.

Become a Daily Caller Patriot today.

Signature

Neil Patel