Carbon Capture Coalition Endorses the SCALE Act: House Bill Represents a Step-Change in Federal Policy Needed to Further Commercialize Carbon Capture
December 16, 2020 | Legislation
WASHINGTON, DC – The Carbon Capture Coalition today endorsed the Storing CO2 and Lowering Emissions Act (SCALE Act) introduced by Representatives Marc Veasey (D-TX), David McKinley (R-WV), Cheri Bustos (D-IL) and Pete Stauber (R-MN), calling the legislation a step change in the federal government’s role in fostering economywide deployment of carbon capture, removal, transportation, use and storage on a scale sufficient to meet midcentury climate goals.
“The Carbon Capture Coalition commends Representatives Veasey, McKinley, Bustos, and Stauber for their recognition of the essential importance of developing interconnected CO2 transport and storage infrastructure to help the U.S. reach net-zero emissions and meet midcentury climate goals,” said Coalition Director Brad Crabtree. “This bipartisan legislation would foster regional and national buildout of cost-effective, shared CO2 transport networks, together with saline geologic storage hubs, enabling the scale-up of carbon capture and removal from our nation’s industrial facilities, power plants and future large-scale direct air capture facilities.”
Drawing on recent analyses by the Rhodium Group, Crabtree noted that investment in carbon capture will retain and create tens of thousands of domestic high-wage industrial, energy and manufacturing jobs and generate tens of billions in capital investment. “Carbon capture, direct air capture and associated transport and storage infrastructure projects provide some of the most desirable clean energy, industrial and manufacturing jobs for American workers, and they consistently pay higher than average local wages,” Crabtree said.
Similar to the historic development of other infrastructure systems such as water, electricity transmission, and telecommunications, the SCALE Act would position the federal government to play a critical role in leveraging private capital to build regional and national CO2 transport and storage infrastructure networks sized to achieve economies of scale and efficiently move CO2 captured from industry, power generation and from direct air capture to suitable large-scale commercial saline geologic storage hubs, where it can be safely and permanently stored. The strategic importance of access to CO2 transport and geologic storage can be seen in the 30-plus publicly announced projects now under development in response to the federal Section 45Q tax credit, all of which are presently limited to locations that benefit from close proximity to existing CO2 pipeline infrastructure or appropriate geologic formations for storage.
Other countries such as Canada, Norway, and the United Kingdom have already recognized this critical need and made substantial financial commitments to the development and deployment of large-scale CO2 transport and storage infrastructure in the context of their broader national net-zero goals. “Thanks to congressional passage of the landmark bipartisan reform and expansion of the 45Q tax credit in 2018, our nation arguably leads the world in incentivizing the deployment of carbon capture and removal technologies,” said Crabtree. “If we are to sustain that global leadership, Congress must now build on 45Q by establishing a robust federal CO2 transport and storage infrastructure policy as provided for by the SCALE Act.”
The SCALE Act contains three titles:
Title I: Utilization of Carbon Oxides
- Carbon-to-Value Infrastructure Development: Establishes a carbon-to-value RD&D center to support the development of low and zero-carbon fuels, chemicals, building products, materials and other products of commercial value manufactured from captured CO2 and carbon monoxide.
Title II:
- CO2 Infrastructure Finance and Innovation Act (CIFIA): Based on successful federal financing mechanisms, including the Transportation Infrastructure Finance and Innovation Act (TIFIA) and the Water Infrastructure Financing Act (WIFIA), CIFIA would provide low-interest grants and loans to cover a portion of the cost of common carrier CO2 transport infrastructure development, lowering the risk of private-sector investment in such projects.
Title III:
- Secure Geologic Storage Infrastructure Development Program: Expands and builds upon the Department of Energy’s CarbonSAFE program, which provides cost-share for the development of saline geologic storage projects, with particular emphasis on larger-scale commercial projects that would serve as regional storage hubs for multiple capture facilities serving different industries.
- Secure Geologic Storage Permitting: Increases authorizations to EPA to support the permitting of Class VI CO2 injection wells for saline geologic storage, as well as to provide grants to help states obtain primacy and establish their own Class VI permitting programs, so long as they meet or exceed EPA Class VI requirements.
-###-
The Carbon Capture Coalition is a nonpartisan collaboration of more than 80 businesses and organizations building federal policy support for economywide deployment of carbon capture, removal, transport, use, and storage. Our mission is to reduce carbon emissions to meet midcentury climate goals, foster domestic energy and industrial production, and support a high-wage jobs base through the adoption of carbon capture technologies. Convened by the Great Plains Institute, Coalition membership includes industry, energy, and technology companies; energy and industrial labor unions; and conservation, environmental, and energy policy organizations.
Quotations of Support from Carbon Capture Coalition Members
Emily Skor, CEO, Growth Energy
“As we have seen throughout the COVID-19 pandemic, CO2 captured from ethanol plants has critically important commercial, agriculture, and municipal water uses. Whether it’s CO2 for meat packing or municipal water treatment, the CO2 captured from ethanol plants is a necessary part of our country’s supply chain and we cannot afford another shortage threat. This bill would also allow the ethanol industry to capture more of its CO2 and has the potential to permanently sequester CO2 underground. We support the SCALE Act and encourage greater CO2 reduction across the board.”
Brett Kerr, Vice President External Affairs, Calpine
“Calpine applauds the efforts of Representatives Veasey, McKinley, Bustos and Stauber to advance this nation’s goals of a lower carbon future through the increase of carbon capture utilization and storage. As America’s largest natural gas and geothermal power generator, Calpine understands the importance of natural gas in securing a cleaner future and more reliable energy supply for future generations. We must use all tools at our disposal to tackle climate change, including robust investment in CCUS research and development. This bill advances these efforts and Calpine is proud to stand behind it.”
Roxanne Brown, Vice President at Large, United Steelworkers
“Carbon capture is a key technology for maintaining good manufacturing jobs as the global economy decarbonizes to move towards the industry of the future. The SCALE Act enables the buildout of CO2 transport and storage infrastructure, with Buy America requirements, that is necessary for large-scale deployment of carbon capture at industrial facilities across our vast country.”
Josh Freed, Senior Vice President for the Climate and Energy Program, Third Way
“The scientific modeling is very clear: a huge scale up of CCUS will help put the U.S. on the fairest and fastest path to net zero emissions. But that won’t happen without supersizing America’s carbon dioxide transport infrastructure. As the federal highway system did for state and local roads, developing a CO2 transport superhighway would encourage the construction of shorter, cheaper pipelines to move CO2 from multiple industrial facilities and power plants to geologic storage sites. Infrastructure week is long overdue. It’s high time we make smart investments that will benefit the U.S. industrial sector, enable the decarbonization of hundreds of facilities across the Midwest, create thousands of good-paying jobs, and achieve our climate goals.”
Steve Oldham, CEO, Carbon Engineering
“At Carbon Engineering, we are encouraged by the introduction of the SCALE Act and by its prospects to advance the fields of carbon capture and clean energy. By accelerating build-out of U.S. infrastructure to transport and safely store captured carbon dioxide, this Bill improves the market for companies like ourselves working to field capture technology. In the same way that better roads and rail help the companies and individuals that use them, carbon dioxide infrastructure helps us all reduce emissions and create jobs while building a cleaner energy system.”
Shannon Heyck-Williams, Climate and Energy Policy Director, National Wildlife Federation
“Given the advanced state of the climate crisis, we need to do more than just reduce greenhouse gas emissions if we want a future where people and wildlife can thrive. We also must capture emissions at their source, remove carbon from the air directly, use the captured carbon in innovative new products, and safely store this pollution in designated sites underground. Representatives Veasey, McKinley, Bustos and Stauber’s bill will allow the federal government — through coordination, loans, and grants — to help deploy the infrastructure needed to achieve these goals.”
George Pickart, Managing Director, Global Government Affairs & Policy, GE Gas Power
“GE Gas Power views CCUS as a critical tool in the fight against climate change, which can be particularly impactful in the US. Decarbonizing power and industry through CCUS can be done today by making the needed investments to connect stationary emitters to the sequestration sites. Via the SCALE Act, the government can play a critical role in supporting these infrastructure projects to grow the CO2-capture economic sector.”
James Slevin , President, Utility Workers Union of America
“The SCALE Act takes an important step to support expanding critical carbon capture infrastructure. If we’re going to have a shot at meeting the net zero emissions goals set forth by the Intergovernmental Panel on Climate Change, we need more supportive measures like this.”
Richard Jackson, President, Operations, U.S. Onshore Resources and Carbon Management, Occidental
“CO2 transport and storage infrastructure is an essential enabler for large-scale carbon capture and removal deployment in order to achieve economy-wide net-zero emissions. The SCALE Act would lower the barriers to deployment and help spur investment in developing this critical infrastructure for the 21st century. Occidental recently announced our ambition to achieve net-zero emissions by 2050, and the SCALE Act and similar legislative initiatives are imperative for us to meet that goal. We appreciate the leadership of Representatives Veasey, McKinley, Bustos, and Stauber, and look forward to working with them on this important issue.”
Lee Beck, CCUS Policy Innovation Director, Clean Air Task Force
“CATF commends Representatives Veasey (D-TX), McKinley (R-WV), Bustos (D-IL), and Stauber (R-MN) for the introduction of the SCALE Act, and their bipartisan leadership on advancing carbon capture as a climate solution. CO2 infrastructure, including geologic saline storage and CO2 pipelines, forms an integral part of the infrastructure needed to achieve net-zero emissions by mid-century. Investment in CO2 infrastructure is crucial to establish a carbon management market for industrial decarbonization and direct air capture, drive the development of saline geologic storage, and create regional economic opportunities. The sooner we can understand the needs of and plan for such net-zero infrastructure, the better we can optimize for cost and land-use impacts. With Europe, Norway, and the UK pouring billions into flagship CO2 infrastructure projects, the SCALE Act provides an opportunity to cement US technology leadership. The SCALE Act should be part of any infrastructure package moving in the next Congress.”
Michele Stockwell, Executive Director, Bipartisan Policy Center Action
“BPC Action supports the SCALE Act introduced by Representatives, Veasey, McKinley, Bustos and Stauber. The legislation is a solid effort to advance carbon capture, transportation, utilization, and storage. It does a great deal to advance the carbon utilization and carbon storage potential of the United States, through both infrastructure and market support. With the growing scale of the global carbon market, legislation such as the SCALE Act is crucial to ensure the competitiveness of the United States.”
Shannon Angielski, Executive Director, Carbon Research Utilization Council
“CURC congratulates Representatives Veasey and McKinley on the introduction of the Storing CO2 and Lowering Emissions (SCALE) Act. When combined with the Section 45Q tax credit, the policies included in the SCALE Act would support commercial-scale deployment of carbon capture, utilization, and storage (CCUS) projects by overcoming barriers against the buildout of critical CO2 transport and storage infrastructure in the United States. Infrastructure to transport and store CO2 from industrial sources is also imperative to deliver on the substantial environmental benefits that can be achieved by CCUS, which energy and climate authorities project will have a substantial role if domestic and global decarbonization objectives are to be achieved. We thank Representatives Veasey and McKinley for their continued leadership on these important issues.”
Heather Reams, Executive Director, Citizens for Responsible Energy Solutions
“Citizens for Responsible Energy Solutions applauds the introduction of the Storing CO2 and Lowering Emissions (SCALE) Act. Through this bill, the bipartisan leadership of Representatives Veasey, McKinley, Bustos and Stauber shows that we can work to reduce harmful pollutants, promote American innovation and strengthen the US economy—all at the same time. Study after study shows that carbon capture and storage are vital to achieving climate and net-zero emissions goals, and the SCALE Act will help remove carbon from the air, build the needed CO2 transport and storage infrastructure, and help advance US innovation by enabling the deployment of large-scale carbon capture technology.”