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October 30, 2019
Carbon Sequestration Legislation in the 116th Congress
Utilizing permanent underground storage of carbon dioxide
demonstration projects to exploring the use of sequestration
(CO2), also known as geological sequestration, as a
as a technically and commercially viable method for storing
potential strategy to reduce net greenhouse gas (GHG)
large volumes of captured CO2. The U.S. Department of
emissions is receiving increasing congressional attention.
Energy (DOE) leads the federal government’s R&D efforts
Proponents of geologic sequestration of CO2 view the
in geological sequestration of CO2 as part of the agency’s
process as a promising method of reducing GHG emissions
fossil fuel programs. DOE’s work includes conducting
from industrial sources, such as coal-fired power plants,
fundamental laboratory research on wells, storage design,
while continuing to use fossil fuels as a source of
geologic settings, and monitoring and assessment of the
electricity. Several bills introduced in the 116th Congress
injected CO2. DOE also sponsors numerous geological
would address geological sequestration policy issues,
sequestration testing and validation projects through
focusing on federal research and development (R&D) and
partnerships with the petroleum and chemical industries and
federal tax credits for storing carbon.
public and private research institutions. To date in the
United States, nine R&D projects have injected CO
Carbon Sequestration
2 into
underground formations in large-scale field tests of
Geological sequestration of CO2, a type of carbon storage,
permanent geological sequestration and storage associated
is the process of storing CO2 by injecting it into an
with EOR. Four of these projects are currently injecting
underground geological formation. Geological
and/or storing CO2.
sequestration is the final step in a carbon capture and
storage (CCS) system—sometimes referred to more
CCS Legislation in the 116th Congress
expansively as CCUS (carbon capture, utilization, and
Some Members of Congress have introduced legislation
storage). Geological sequestration is intended to trap CO2
intended to support geological sequestration R&D. (See
emitted from anthropogenic sources permanently
Table 1 for a list of legislation introduced in the 116th
underground and reduce net emissions of this GHG into the
Congress.) Several bills—S. 383/H.R. 1166, S. 1201, and
atmosphere. CO2 can also be stored underground when
H.R. 3607—would enhance DOE’s work in supporting
injected as part of oil and gas production (called enhanced
geological sequestration through continuation and/or
oil recovery, or EOR).
expansion of its CCS programs, including carbon storage
programs. These bills would amend current statutes to
In a CCS system, CO2 is captured from a stationary source,
direct DOE to develop and implement R&D programs
compressed into a fluid to allow for transportation by
related to geological sequestration methods, storage siting,
pipeline, and then injected through specially designed wells
and assessment of potential impacts. S. 1201 and H.R. 3607
into geological formations typically a half a mile or more
would also direct DOE to continue its partnership programs
below the earth’s surface. An emerging technology to
for large-scale sequestration demonstration projects. S.
capture CO2 directly from the atmosphere—“direct air
383/H.R. 1166 and S. 1201 would require reports to
capture”—could also serve as a source of CO2 for
Congress, such as a report from DOE on saline reservoir
geological sequestration. Subsurface geological formations
storage and a report from the Council on Environmental
across the United States could be suitable for large-scale
Quality on ways to facilitate development of CCS projects.
sequestration of CO2. These include, for example, deep
saline reservoirs (underground basins containing salty
Legislation addressing federal tax credits for carbon storage
fluids) and oil and gas reservoirs no longer in production.
is receiving significant industry attention. One bill in the
CO2 may also be sequestered offshore in deep ocean waters
116th Congress, S. 2263, would address these tax credits
or under the seabed. When injected deep enough
(see Table 1). S. 2263 would amend the federal tax code,
underground, high pressures combined with impermeable
Section 45Q, by changing what is considered “secure
rocks above the target formation are expected to keep the
geological storage” of carbon oxide (a more general term
CO2 from migrating upwards into shallower groundwater or
covering CO2 and other oxides). To qualify as secure
into other geological formations. For additional information
storage, the carbon oxide would need to be stored in
on the technical aspects of CCS, see CRS Report R44902,
compliance with existing EPA rules, the Clean Air Act, and
Carbon Capture and Sequestration (CCS) in the United
the Safe Drinking Water Act. S. 2263 would also set out
States, by Peter Folger.
eligibility requirements for tax credits for carbon oxide
storage associated with EOR.
Beyond Research and Development
Over the last decade, the focus of federal R&D efforts for

geological sequestration has shifted from small
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link to page 2 Carbon Sequestration Legislation in the 116th Congress
Table 1. Carbon Sequestration Legislation Introduced in the 116th Congress
Bill
Short Title
Status
Short Summary of Major Carbon Sequestration
Number
Provisions
S. 383
USE IT Act
Written report from the
Would amend the Clean Air Act by directing the U.S.
Committee on
Environmental Protection Agency (EPA) to conduct certain
Environment and Public
carbon capture research activities. Would require the U.S.
Works filed in Senatea
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
Would amend the Clean Air Act by directing EPA to conduct
Subcommittees on the
certain carbon capture research activities. Would require DOE to
Environment;
submit a report to Congress on the potential risks and benefits to
Environment and Climate
project developers associated with increased storage of CO2 in
Change; Highways and
deep saline formations and recommendations for federal policy
Transit, Energy and
changes to mitigate identified risks. Would direct the CEQ to
Mineral Resources; and
prepare a report including information on permitting and review
Water, Oceans, and
of CCS projects and issue guidance on development of CO2
Wildlife
pipelines and storage projects.
S. 1201
EFFECT Act
Placed on Senate
Would amend the Energy Policy Act of 2005 (P.L. 109-58) to
Legislative Calendar
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 large-
scale carbon sequestration demonstration projects into integrated
commercial storage complexes.
H.R. 3607
Fossil Energy
House Science, Space, and Would amend the Energy Policy Act of 2005 to direct DOE to
Research and
Technology Committee
carry out a program of research, development, and
Development
voted favorably for bil to
demonstration for CCS. Would direct DOE to conduct large-
Act of 2019
be reported
scale carbon sequestration partnerships through the Regional
Carbon Sequestration Partnerships.
S. 2263
CO2 Regulatory
Referred to Committee
Would amend the Internal Revenue Code, Section 45Q, to revise
Certainty Act
on Finance
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 bil s (and others) also encompass provisions that cover carbon
capture and/or utilization.
a. 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, 2019, and S. 2302, America’s Transportation Infrastructure Act, which was reported in the Senate on August 1, 2019.

IF11345
Angela C. Jones, Analyst in Environmental Policy


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Carbon Sequestration Legislation in the 116th Congress


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