October 30, 2019Updated February 21, 2020
Carbon Sequestration Legislation in the 116th Congress
Utilizing permanent underground storage of carbon dioxide
(CO2), also known as geological sequestration, as a
potential strategy to reduce net greenhouse gas (GHG)
emissions is receiving increasing congressional attention.
Proponents of geologicgeological sequestration of CO2 view the
process as a promising method of reducing GHG emissions
from industrialstationary sources, such as coal-fired power plants,
while continuing to use fossil fuels as a source of
electricity. Several bills introduced in the 116th Congress
would address geological sequestration policy issues,
focusing on federal research and development (R&D) and
federal tax credits for storing carbon.
Carbon Sequestration
Geological sequestration of CO2, a type of carbon storage,
is the process of storing CO2 by injecting it into an
underground geological formation. Geological
sequestration is the final step in a carbon capture and
storage (CCS) system—sometimes referred to more
expansively as CCUS (carbon capture, utilization, and
storage). Geological sequestration is intended to trap CO2
emitted from anthropogenic sources permanently
underground and reduce net emissions of this GHG into the
atmosphere. CO2 can also be stored underground when
injected as part of oil and gas production (called enhanced
oil recovery, or EOR).
In a CCS system, CO2 is captured from a stationary source,
compressed into a fluid to allow for transportation by
pipeline, and then injected through specially designed wells
into geological formations typically a half a mile or more
below the earthEarth’s surface. An emerging technology to
capture CO2 directly from the atmosphere—“direct air
capture” (DAC)—could also serve as a source of CO2 for
geological sequestration. Subsurface geological formations
across the United States could be suitable for large-scale
sequestration of CO2. These include, for example, deep
saline reservoirs (underground basins containing salty
fluids) and oil and gas reservoirs no longer in production.
CO2 may also be sequestered offshore in deep ocean waters
or under the seabed. When injected deep enough
underground, high pressures combined with impermeable
rocks above the target formation are expected to keep the
CO2 from migrating upwardsupward into shallower groundwater or
into other geological formations. For additional information
on the technical aspects of CCS, see CRS Report R44902,
Carbon Capture and Sequestration (CCS) in the United
States, by Peter Folger.
Beyond Research and Development
Over the last decade, the focus of federal R&D efforts for
geological sequestration has shifted from small
demonstration projects to exploring the use of sequestration
as a technically and commercially viable method for storing
large volumes of captured CO2. The U.S. Department of
Energy (DOE) leads the federal government’s R&D efforts
in geological sequestration of CO2 as part of the agency’s
fossil fuel programs. DOE’s work includes conducting
fundamental laboratory research on wells, storage design,
geologicgeological settings, and monitoring and assessment of the
injected CO2. DOE also sponsors numerous geological
sequestration testing and validation projects through
partnerships with the petroleum and chemical industries and
public and private research institutions. To date in the
United States, nine R&D projects have injected CO2 into
underground formations in large-scale field tests of
permanent geological sequestration and storage associated
with EOR. Four of these projects are currently injecting
and/or storing CO2.
CCS Legislation in the 116th Congress
Some Members of Congress have introduced legislation
intended to support geological sequestration R&D. (See
Table 1 for a list of legislation introduced in the 116th
Congress.) Several bills—S. 383/H.R. 1166, S. 1201, and
H.R. 3607—would enhance DOE’s work in supporting
geological sequestration through continuation and/or
expansion of its CCS programs, including carbon storage
programs. These bills would amend current statutes to
direct DOE to develop and implement R&D programs
related to geological sequestration methods, storage siting,
and assessment of potential impacts. S. 1201 and H.R. 3607
would also direct DOE to continue its partnership programs
for large-scale sequestration demonstration projects. S.
383/H.R. 1166 and S. 1201 would require reports to
Congress, such as a report from DOE on saline reservoir
storage and a report from the Council on Environmental
Quality on ways to facilitate development of CCS projects.
Legislation addressing federal tax credits for carbon storage
is receiving significant industry attention. One billTwo bills in the
116th Congress,—H.R. 5883 and S. 2263, —would address
these tax credits
(see Table 1). S. 2263 would amend the federal tax code,
Section 45Q, by changing what is considered “secure
geological storage” of carbon oxide (a more general term
covering CO2 and other oxides). To qualify as secure
storage, the carbon oxide would need to be stored in
compliance with existing EPA rules, the Clean Air Act, and
the Safe Drinking Water Act. S. 2263 would also set out
eligibility requirements for tax credits for carbon oxide
storage H.R. 5883 would increase
the tax credit for DAC facilities, remove the deadline for
beginning construction of a qualified facility, and reduce
the amount of carbon oxide required to be captured by
qualifying DAC facilities. S. 2263 would amend the federal
tax code, Section 45Q, by changing what is considered
“secure geological storage” of carbon oxide (a more general
term covering CO2 and other oxides) and set out eligibility
requirements for tax credits for carbon oxide storage
associated with EOR.
https://crsreports.congress.gov
Carbon Sequestration Legislation in the 116th Congress
Table 1. Carbon Sequestration Legislation Introduced in the 116th Congress
Bill
Number
Short Title
Status
Short Summary of Major Carbon Sequestration
Provisions
S. 383
USE IT Act
Written report from the
Committee on
Environment and Public
Works filed in SenateaH.R. 1166
USE IT Act
Referred to House
Subcommittees on the
Environment;
Environment and Climate
Change; Highways and
Transit, Energy and
Mineral Resources; and
Water, Oceans, and
Wildlife
Would amend the Clean Air Act by directing the U.S.
Environmental Protection Agency (EPA) to conduct certain
carbon capture research activities. Would require the U.S.
Department of Energy (DOE) to submit a report to Congress on
the potential risks and benefits to project developers associated
with increased storage of carbon dioxide (CO2) in deep saline
formations and recommendations for federal policy changes to
mitigate identified risks. Would direct the Council on
Environmental Quality (CEQ) to prepare a report including
information on permitting and review of carbon capture,
utilization, and sequestration (CCS) projects and issue guidance
on development of carbon dioxide pipelines and storage projects.
H.R. 1166
USE IT Act
Referred to House
Subcommittees on the
Environment;
Environment and Climate
Change; Highways and
Transit, Energy and
Mineral Resources; and
Water, Oceans, and
Wildlifeand issue
guidance on development of carbon dioxide pipelines and storage
projects.
H.R. 3607
Fossil Energy
Research and
Development
Act of 2019
House Science, Space, and
Technology Committee
voted favorably for bill to
be reported
Would amend the Energy Policy Act of 2005 to direct DOE to
carry out a program of research, development, and
demonstration for carbon capture and storage (CCS) and conduct
large-scale carbon sequestration partnerships through the
Regional Carbon Sequestration Partnerships.
H.R. 5883
[No bill title]
Referred to the House
Committee on Ways and
Mean
Would amend the Internal Revenue Code Section 45Q to
increase the tax credit for direct air capture (DAC) facilities,
remove the deadline for beginning construction of a qualified
facility, and reduce the amount of carbon oxide required to be
captured by qualifying DAC facilities.
S. 383
USE IT Act
Written report from the
Committee on
Environment and Public
Works filed in Senatea
Would amend the Clean Air Act by directing EPA to conduct
certain carbon capture research activities. Would require DOE to
submit a report to Congress on the potential risks and benefits to
project developers associated with increased storage of CO2 in
deep saline formations and recommendations for federal policy
changes to mitigate identified risks. Would direct the CEQ to
prepare a report including information on permitting and review
of CCS projects and issue guidance on development of CO2
carbon
dioxide pipelines and storage projects.
S. 1201
EFFECT Act
Placed on Senate
Legislative Calendar
Would amend the Energy Policy Act of 2005 (P.L. 109-58) to
direct DOE to carry out CCS research and development
programs. Program requirements would include conducting
research to support sites for large volume storage of CO2 and
accompanying infrastructure and continuing a demonstration
program for large-scale carbon storage validation and testing.
Would require DOE to submit a report to Congress
on CCS
activities. Would establish an optional program to
transition largescalelarge-scale carbon sequestration demonstration
projects into integrated
commercial storage complexes.
H.R. 3607
Fossil Energy
Research and
Development
Act of 2019
House Science, Space, and
Technology Committee
voted favorably for bill to
be reported
Would amend the Energy Policy Act of 2005 to direct DOE to
carry out a program of research, development, and
demonstration for CCS. Would direct DOE to conduct largescale carbon sequestration partnerships through the Regional
Carbon Sequestration Partnerships.
commercial storage complexes.
S. 2263
CO2 Regulatory
Certainty Act
Referred to Committee
on Finance
Would amend the Internal Revenue Code, Section 45Q, to revise
the requirements for the secure geological storage of carbon
oxide for the purpose of the tax credits for permanent
sequestration and enhanced oil recovery. Would require the
Treasury Department to establish regulations setting out these
requirements, including compliance with federal environmental
statutes and regulations and other measures to prevent carbon
oxide from escaping into the atmosphere.
Source: Congress.gov and CRS analysis.
Notes: This In Focus outlines carbon storage through sequestration. These bills (and others) also encompass provisions that cover carbon
capture and/or utilization.
a.
A version of S. 383 was incorporated into S. 1790, the National Defense Authorization Act for Fiscal Year 2020, which was passed by the Senate on
June 27, 2019became law on
December 20, 2019 (P.L. 116-92), and S. 2302, America’s Transportation Infrastructure Act, which was reported in the Senate on August 1, 2019January
8, 2020.
IF11345
Angela C. Jones, Analyst in Environmental Policy
https://crsreports.congress.gov
Carbon Sequestration Legislation in the 116th Congress
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