On April 6, the coal-industry labor unions, hoping to raise large amounts of money to jump-start carbon sequestration and storage demonstration projects, floated a proposal to levy a tax on delivered coal. The proposal is part of a strategy by coal companies to find a way to remain competitive in the event of the implementation of a carbon cap-and-trade system. This plan is focused on the development of large-scale, commercially viable carbon capture and sequestration (CCS) technology.
If implemented, the program would direct money to a quasi-federal corporation, called the Carbon Sequestration Research Corporation, which would create a fund to distribute grants to researchers who study large-scale integrated gasification combined cycle (IGCC) demonstration projects. The corporation would report to the Secretary of Energy. After a cap-and-trade system is in place, distribution of pollution allowances would provide funding for other advanced technology research.
In a recent letter to House Energy and Commerce Committee Chairman John Dingell (D-MI), the Edison Electric Institute (EEI) encouraged greater funding of advanced coal technologies so that CCS technology could eventually be available and able to capture 90% of CO2 emissions. Although this idea has support on Capitol Hill, it is unclear what action Congress will take regarding these recommendations.