SECTION 3. LCA REPORT

STANDARDS AND REQUIREMENTS

.01 LCA Report . Section 1.45Q-4(c) (2) requires that the results of a taxpayer’s LCA be documented in a written LCA Report. In the case of a taxpayer that owns multiple qualified facilities for which it wishes to claim a § 45Q utilization credit, a separate LCA Report is required for each qualified facility.

.02 LCA Report Standards . Section 1.45Q-4(c)(3) requires that an LCA Report be prepared in conformity with and contain documentation that conforms with International Organization for Standardization (ISO) 14040:2006 , Environ- mental management – Life cycle assess- ment – Principles and framework and ISO 14044:2006 , Environmental management

— Life cycle assessment — Requirements and guidelines . To ensure conformity with these ISO standards, the LCA Report must be completed in accordance with the most current revision, as of the beginning of the year in which the LCA is submitted, of the DOE’s National Energy Technology Laboratory’s (NETL) Carbon Dioxide Utili- zation (CO2U) Life Cycle Analysis Guid- ance for the U.S. DOE Office of Fossil Energy and Carbon Management and 45Q Addendum to the CO2U LCA Guidance Document : https://www.netl.doe.gov/ LCA/CO2U (NETL CO2U LCA Guidance Document) and https://www.netl. doe.gov/LCA/CO2U/45Q (NETL 45Q Addendum). ⁵ Section 1.45Q-4(c)(3) further provides that an LCA may consist of direct and indirect data in conformity with ISO 14040:2006 and 14044:2006. Direct and indirect data are also generally known within ISO standards as primary and secondary data. For purposes of § 45Q, an LCA must rely upon direct, or primary,

data to address the actual operational performance of the taxpayer’s system for the taxable year for which the LCA Report is submitted.

.03 Independent Third-Party State- ment . Section 1.45Q-4(c)(4) provides that an LCA Report must be performed or verified by an independent third party. If an independent third-party review is conducted, then it must include an assessment of an LCA model and supporting data and be performed in accordance with ISO 14071:2014, Environmental management

— Life cycle assessment — Critical review processes and reviewer competencies: Additional requirements and guidelines to ISO 14044:2006 . An LCA Report also must provide a statement documenting the qualifications of the independent third party, including proof of appropriate U.S. or foreign professional license, and an affidavit from the third party stating that it is independent from the taxpayer. If a § 45Q(f)(3)(B) election has been made, then the affidavit must state that the third party is independent from both the electing taxpayer and the credit claimant. In addition, the statement must be made under penalties of perjury.

.04 LCA Report Cover Page Require- ments . The LCA Report must include a cover page that includes the following information:

(1) Name and location of the facility where the qualified carbon oxide is utilized (utilization facility);

(2) Name and Taxpayer Identification Number (TIN) (for example, Employer Identification Number (EIN)) of the taxpayer claiming the credit based on the LCA Report;

(3) Name and TIN (for example, EIN) of the operator of the utilization facility (if other than the taxpayer);

(4) Taxable year for which the LCA Report is being submitted;

(5) Name, relationship to the taxpayer, mailing address, email address, and phone number of a person whom the IRS can contact regarding the LCA Report. If this person is not an employee of the taxpayer, an IRS Form 2848, Power of Attorney and Declaration of Representative, must accompany the LCA Report;

4 See 42 U.S.C. 7545(o)(1)(H) (Clean Air Act).

5 See the preamble to T.D 9944, 89 FR 4728, 4745.

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(6) An attestation that the applicable requirements of § 45Q and §§ 1.45Q-1, 1.45Q-2, and 1.45Q-4 are satisfied. Such attestation must include confirmation of the following:

(a) the carbon oxide for which the § 45Q utilization credit is being claimed is qualified carbon oxide within the meaning of § 45Q(c);

(b) the qualified carbon oxide for which the § 45Q utilization credit is being claimed is captured by a qualified facility within the meaning of § 45Q(d);

(c) the qualified carbon oxide for which the § 45Q utilization credit is being claimed was captured in the United States (within the meaning of § 638(1)), or a U.S. territory (within the meaning of the term “possession” set forth in § 638(2));

(d) in the case of a resubmission of an LCA Approval Request under section 6.02 of this notice, that there has been no Material Change (within the meaning of section 6.04 of this notice) since the prior LCA was approved; and

(7) A declaration, applicable to the LCA Approval Request (including the LCA and the cover page information required by section 3.04 of this notice) signed by a person currently authorized to bind the taxpayer in these matters, in the following form:

“Under penalties of perjury, I declare that I have examined the information contained in this affirmative statement and the documents that substantiate this affirmative statement, and to the best of my knowledge and belief, it is true, correct, and complete.”