[Congressional Record Volume 168, Number 133 (Saturday, August 6, 2022)]
[Senate]
[Page S4212]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
INFLATION REDUCTION ACT OF 2022
Ms. CORTEZ MASTO. Madam President, I rise to enter into a colloquy
with the chairman of the Finance Committee, Senator Wyden, to discuss
sections 13701 and 13702 of the Inflation Reduction Act. These sections
establish new sections 45Y and 48D of the Tax Code that provide new tax
credits for, respectively, production from and investment in clean
electricity resources that are placed in service after December 31,
2024.
Mr. WYDEN. I am pleased to join the senior Senator from Nevada in
this colloquy today to discuss sections 13701 and 13702 of the
Inflation Reduction Act. These sections of the Inflation Reduction Act
reflect the work of a variety of Members, but few Members have been as
focused on geothermal energy than the Silver State's senior Senator.
Ms. CORTEZ MASTO. As the chairman of the Finance Committee knows
well, the Inflation Reduction Act includes new and improved clean
energy tax credits, and I commend Senator Wyden for leading the effort
to simplify the Tax Code's incentives for clean electricity. These
credits will advance our transition to a clean energy future and are a
key part of this legislation's goal of reducing carbon emissions from
the electricity sector more than 40 percent by 2030.
The 45Y and 48D provisions expressly make geothermal energy eligible
for critical tax credits, and I appreciate the chairman's attention to
this issue given its importance to Nevada's economy. Nevada is a leader
in geothermal energy and the industry provides critical jobs and
revenues for my State and others across the country. Geothermal
resources also provide clean power, and they are essential to meet the
emissions reduction goals of this legislation. As the current chairman
of the Finance Committee and former chairman of the Energy and Natural
Resources Committee, can Senator Wyden comment how this legislation
intends to spur the deployment of this critical clean energy
technology?
Mr. WYDEN. I appreciate the question. For those unfamiliar with
geothermal energy, it is generally produced by delivering geothermal
brine and steam from underground reservoirs to the surface, where the
resource then runs turbines to generate electricity. In some cases,
there is a de minimis of amount of naturally occurring noncombustion
emissions released in the renewable generating process and the
electricity produced is considered emissions free.
Thanks in part to the relentless efforts from Senator Cortez Masto,
the Inflation Reduction Act provides the same incentives for geothermal
energy resources placed in service after December 31, 2024, as it does
for electricity produced by solar, wind, and other renewable resources.
Indeed, all geothermal energy is included among the resources meeting
the definition of ``qualified facility'' for the purposes of the new
sections 45Y and 48D included in the Inflation Reduction Act.
I thank my colleague from Nevada for her dedication to and leadership
on geothermal energy incentives. I am pleased to have worked with her
on these incentives, and I most certainly agree that electricity
produced from geothermal resources property qualifies for the
production and investment incentives provided by sections 13701 and
13702 of the Inflation Reduction Act. That has been my intent
throughout the course of drafting this legislation. Geothermal
resources are critical to our clean energy future, and I thank my
colleague for her collaboration in developing these robust new tax
credits for clean energy.
Ms. CORTEZ MASTO. I thank the chairman of the Finance Committee and
my friend from Oregon for his comprehensive answer, his commitment to
solving for climate change, and for joining me today in this colloquy.
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