Bold Alliance Joins 200+ Organizations to Demand Congress Repeal Wasteful and Dangerous Carbon Capture Subsidies

Bold Alliance joined more than 200 organizations in a Feb. 10 letter to leaders of the Senate Finance Committee and the House Ways and Means Committee, demanding that Congress repeal wasteful and dangerous carbon capture subsidies.

“Dear Chairs Crapo and Smith and Ranking Members Wyden and Neal:

As a broad based alliance representing organizations and communities across the United States, we urge you to repeal the 45Q tax credit and other subsidies for the carbon capture and sequestration (CCS) industry in the upcoming reconciliation package. These subsidies waste billions in taxpayer money, endanger public safety, and prop up a fundamentally flawed and unreliable technology. By eliminating these programs, Congress can protect communities, ensure fiscal accountability, and demonstrate responsible stewardship of public resources.

The Financial Costs of CCS: A Wasteful Investment for Taxpayers

CCS has proven to be an inefficient and costly endeavor. Despite years of taxpayer support, the industry has consistently failed to meet performance benchmarks or achieve meaningful emissions reductions. Projects like Petra Nova in Texas, heralded as CCS success stories, have struggled with operational issues and were ultimately shut down, wasting hundreds of millions of taxpayer dollars. Meanwhile, other projects continue to overpromise and underdeliver, all while demanding more federal support. A recent investigation by the Treasury Inspector General for Tax Administration highlights the fiscal irresponsibility of continuing to subsidize CCS. The report found widespread abuse and fraud in the 45Q tax credit program, with nearly $1 billion claimed for unverified or non-existent carbon sequestration. Despite these findings and rapidly growing federal subsidies to CCS, the IRS has yet to revise its rules to prevent future abuse, leaving taxpayers vulnerable to ongoing exploitation. For a Congress committed to fiscal responsibility, continuing to fund an industry rife with fraud is indefensible.

Safety Risks: A Danger to Communities

Beyond financial waste, CCS poses significant safety risks to American communities. There are few examples of operational CCS injection projects in the US. Multiple wells have failed such as at the ADM’s Decatur carbon storage site in Illinois, projects throughout Texas. Additionally, CO2 transportation projects have also faced safety concerns. The 2020 CO2 pipeline rupture in Mississippi sent dozens to the hospital and left many with permanent disabilities underscores the dangers of transporting and storing carbon dioxide. These accidents led to evacuations, hospitalizations, and severe disruptions, exposing the inadequacies of safety regulations and oversight which still exist today. Transporting CO2 in pipelines and injecting it underground is inherently risky because CO2 reacts with trace amounts of moisture to form carbonic acid that can corrode pipelines and well equipment and release heavy metals from rocks in aquifers, putting communities and drinking water near this infrastructure at risk of serious harm. The 45Q subsidy incentivizes a rapid buildout of these unsound pipelines and injection wells, already sparking a tremendous backlash against the industry. Communities near CCS infrastructure face ongoing threats to their health and safety, with limited recourse to hold companies accountable. The technology itself involves risks that cannot be fully mitigated, necessitating pipelines and injection wells that are destined to leak, which threatens public safety and drinking water, making it unsuitable for widespread adoption. Congress has a responsibility to protect its constituents from these dangers by ending subsidies that incentivize the expansion of hazardous CCS projects.

Water Supply Concerns: A Vital Resource at Risk

CCS operations also jeopardize critical water resources, which are already suffering from basic supply concerns. Depletion of groundwater and widespread drought are impacting farmers and communities across the country. Capturing and injecting carbon dioxide underground requires vast amounts of water, competing with agricultural, industrial, and residential needs in already water-stressed regions. Moreover, the risk of groundwater contamination from CCS storage sites poses a long-term threat to drinking water supplies. The United States cannot afford to compromise its water security for a technology that has consistently failed to prove its value. Prioritizing CCS subsidies over investments in water infrastructure or conservation efforts demonstrates a misplaced set of priorities that harms everyday Americans.

Eminent Domain Abuse and Indigenous Community Impacts

The rapid expansion of carbon pipelines, driven by subsidies like the 45Q tax credit, has intensified eminent domain abuses, forcing land from families and communities without consent. For Indigenous communities, these projects perpetuate a legacy of exploitation and violations of sovereignty. Companies frequently fail to conduct meaningful consultation or secure Free, Prior, and Informed Consent, leaving tribal nations sidelined until plans are finalized. These pipelines also bring increased risks of violence to Indigenous women and children due to transient workforces housed in “man camps.” Documented cases of human trafficking and abuse have accompanied such projects, compounding harms in communities already facing systemic inequities. Safety concerns further underscore the risks, as hazardous CO2 pipelines threaten reservations and nearby rural areas with incidents like the Satartia, Mississippi rupture. Most small or rural communities lack the infrastructure to manage such emergencies, heightening risks to lives and ecosystems.

Stand for Fiscal Responsibility and Public Safety

Repealing 45Q and other CCS subsidies aligns with bipartisan values. For those on the right, the waste of taxpayer money on a failing industry contradicts principles of fiscal conservatism and efficient governance. The widespread fraud in the 45Q program underscores the need for tighter fiscal oversight and accountability. For those on the left, the risks to public safety, drinking water, and local communities highlight the urgency of ending support for CCS. The industry disproportionately burdens rural and vulnerable communities, exacerbating existing inequalities. Protecting these communities from avoidable harm should be a priority for all members of Congress. CCS claims to deliver greenhouse gas emissions reduction, but consistently fails to do so, in spite of massive public subsidies. As stewards of taxpayer resources and public safety, you have an opportunity to demonstrate leadership by ending subsidies for the CCS industry. Repealing 45Q would free up tens of billions of dollars that could be better used to support American families, modernize infrastructure, and invest in proven energy solutions. We urge you to act decisively in the upcoming reconciliation package by repealing 45Q and other CCS subsidies. The American people deserve a government that prioritizes their well-being and financial security. Let us move forward together toward a future that reflects our shared values of
fiscal responsibility and public safety.”

Read the full letter and view list of signatories below: 

CCS-Letter