Carbon Capture Coalition Hosts Media  Briefing on Next Steps for Carbon Management Policy Post-OBBBA

The Carbon Capture Coalition recently hosted a virtual media briefing, “What’s Next for Carbon Management?” At the briefing, Coalition staff discussed the crucial next steps for carbon management now that the core credit structure for the section 45Q tax credit was preserved and expanded as part of the recently passed One Big Beautiful Bill Act (OBBBA).

The briefing covered a wide array of policies necessary to move forward with deploying the full suite of carbon management technologies, including annual appropriations for core research and development activities, advancing the available permitting framework for projects, necessary regulations to move the sector forward, and how additional policies are needed to unlock new domestic market opportunities for deploying carbon management technologies.  

The discussion featured Coalition Executive Director Jessie Stolark, Director of Government Affairs Madelyn Morrison, Public Policy Manager Christian Flinn, and Technology Specialist Sangeet Nepal.

Jessie Stolark highlighted that OBBBA retains the integrity and utility of the 45Q tax credit, which serves as the primary domestic market signal for carbon management deployment. Additionally, the OBBBA creates credit-level parity for end uses of captured carbon for the first time. However, despite the preservation and enhancement of the credit in OBBBA, due to inflationary and other cost pressures, Stolark noted that without inflation adjustment for the credit or other measures to increase credit values, we will not see greater uptake of carbon management technologies in crucial-to-deploy sectors, including heavy industry and power generation. Still, Coalition staff noted that we have a tremendous opportunity to advance the industry broadly through additional policy measures.

Coalition staff then discussed the Coalition’s priorities for the remainder of 2025, including ensuring robust appropriations for carbon management technologies, making progress on the permitting and regulatory framework, and exploring new domestic markets for carbon management technologies.

Madelyn Morrison, director of government affairs, discussed the impact of deep cuts to federal funding for carbon management technologies, which House appropriators have proposed. Morrison noted, “Absent robust annual appropriations, the broader portfolio of supportive policies aimed at reducing costs like 45Q… is going to be significantly less effective.”

Carbon management projects face a complex permitting regime at the state and federal levels for CO₂ transport and storage projects. The Coalition remains hopeful of bipartisan action to address the need for updates to the nation’s permitting framework. In particular, carbon management projects need a timely and predictable review of Class VI well applications, which govern the long-term storage of CO₂. Christian Flinn, public policy manager, stated, “Certain things across the board can help shorten [Class VI well application] review timelines, and that includes…having the proper staffing numbers [and expertise] at EPA to complete those reviews.”

The Coalition has been working with policymakers to ensure permitting frameworks allow for predictable review timeframes and transparent processes. On the regulatory front, Coalition staff discussed high-priority federal regulations for the sector, including updated PHMSA CO₂ pipeline safety regulations.

Lastly, Sangeet Nepal explained the critical role of carbon management in meeting future energy needs, especially with AI-driven data centers alone projected to require up to 500 terawatt-hours of electricity annually by 2030. Nepal pointed out that even with increasing generation from intermittent energy sources, natural gas will remain one of the prominent sources of reliable energy supply moving forward, but to ensure that gas can provide lower carbon energy sources “is where carbon management really kicks in,” as current technologies can capture about 95 percent of carbon dioxide from natural gas plants, providing data centers with lower-carbon energy that customers are demanding.

Sangeet concluded that carbon management technologies are essential to ensuring that future energy needs “are met with dispatchable, reliable, and lower-carbon energy sources.”

President of RENEWPR, Ben Finzel moderated the briefing, which concluded with a Q&A session with participating reporters. View the recording of the briefing here. 

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The Carbon Capture Coalition (the Coalition) is a nonpartisan collaboration of more than 100 companies, labor unions, and conservation and environmental policy organizations. Coalition members work together to lay the groundwork for the necessary portfolio of federal policies to enable nationwide, commercial-scale deployment of carbon management technologies.