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Biden's carbon-capture plan hands lifeline to coal plants

Coal-fired power plants would be eligible for billions of dollars in extra tax breaks under President Joe Biden's economic legislation if they install carbon-capture systems, an incentive that environmental groups say may delay the retirement of dozens of facilities.

A Caterpillar excavator operates at the Kentucky Utilities Co. Ghent generating station in Ghent, Ky., on April 6, 2021. Foto: Bloomberg photo by Luke Sharrett.

Power plants that capture their carbon dioxide emissions would be eligible for a tax credit of as much as $85 per metric ton under the draft of Biden's $1.75 trillion spending plan released by the House last week. That's an increase from a rate of $50 a metric ton in current law.

The change could result in a single 1,000 megawatt coal plant receiving $6 billion in payments over 12 years, according to an analysis of the proposed credit by the environmental group Sierra Club, which estimates the increase could result in a quarter of the nation's coal-fleet delaying retirement...

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