A new Democratic comprehensive energy package being introduced this week may include significant research and development incentives for carbon capture and sequestration (CCS) technology.  On Wednesday, House Speaker Nancy Pelosi told reporters that the energy bill would incorporate a CCS funding provision.  That provision, introduced earlier this year as HR 6258, would allocate $1 billion a year to CCS development over the next 10 years, financed through a per-kilowatt-hour fee passed through to consumers.

The Pelosi bill includes provisions for offshore drilling as well as incentives for renewable energy resources and coal.  Meanwhile, in the Senate, a small but growing bipartisan group of lawmakers, now calling themselves “the gang of 20,” is working to develop a filibuster proof majority for a Senate Bill.  Given the budget and time constraints lawmakers face in passing and reconciling energy legislation by the end of the year, it is questionable whether a $10 billion CCS provision would be able to survive the conference process.  If it does, however, the CCS funding could provide a significant shot in the arm to the clean coal industry.

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