Legislation

The members of the Carbon Capture Coalition work together to achieve a common goal: Economywide deployment of carbon capture from industrial facilities, power plants and ambient air through financial incentives and other policies that drive private investment, innovation and cost reductions in carbon capture and utilization technology and pipeline transport.

 

The Coalition’s mission is to advance policies and actions that will accelerate deployment of:
  • Capture of carbon dioxide (CO2) and carbon monoxide (CO) from power plants and industrial facilities;
  • Utilization of captured CO2 and CO to produce low-carbon fuels, chemicals, materials and other useful products;
  • Carbon removal technologies, including direct air capture, bio-energy with carbon capture, and other advanced technologies that remove CO2 already in the atmosphere.
  • Storage of CO2 in secure geologic formations, such as oil fields, saline storage and other geologic reservoirs; and
  • Transportation Infrastructure to carry CO2 via pipeline from where it is captured to where it can be geologically stored or put to beneficial use.

2019 Federal Policy Blueprint

Coalition participants have developed a consensus policy blueprint to articulate a comprehensive and ambitious federal policy agenda that can help achieve the goal of economywide carbon capture deployment. This blueprint reflects the consensus federal policy priorities of the Coalition. It is not intended to represent a complete compilation of policies of relevance and importance to carbon capture, utilization, removal and storage. As the issues and Coalition discussions evolve over time, we will periodically update this policy blueprint with additional ideas and priorities as the situation merits.

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The policy blueprint focuses on federal policy priorities. It does not address state-level policies, which have an important role to play in complementing federal policies to support commercial carbon capture deployment. The United States is the global leader in carbon capture. In order to maintain that leadership and achieve economywide deployment of these important technologies, a broad suite of policies will be required to broaden and accelerate commercial deployment of carbon capture, utilization, removal and storage projects.

The reformed and expanded 45Q tax credit provides a solid foundation for the emerging U.S. industry; however, additional policies are needed – just as a broad portfolio of federal policies has already helped scale up other low and zero-carbon technologies.

To achieve economywide deployment of carbon capture, a critical mass of commercial-scale capture projects must be developed in key industrial sectors and power generation between now and 2030 to enable the scaling of the technology needed by midcentury to reach decarbonization goals. In parallel, robust CO2 pipeline infrastructure networks must be built out across different regions of the country, expanding on the roughly 5,000 miles of CO2 pipelines in the U.S. today.

Looking Ahead: Reaching Economywide Deployment of Carbon Capture

With the federal policy foundation in place through 45Q, the Coalition continues to advocate for additional policy mechanisms and incentives that will build out the full policy structure needed to realize the full potential of carbon capture. This blueprint outlines the broader federal policy agenda needed to achieve that.

The Carbon Capture Coalition’s strategic vision for future policy action is to:

  • Ensure effective implementation of 45Q by the U.S. Treasury to provide the investment certainty and business model flexibility intended by Congress;
  • Provide additional federal incentives to complement, expand and build upon 45Q in financing carbon capture, utilization, removal and storage projects;
  • Incorporate carbon capture, transport, utilization, removal and storage into broader national infrastructure policy; and
  • Expand, retool and prioritize federal funding for research, development, demonstration and deployment (RDD&D) of the next generation of carbon capture, utilization, removal and geologic storage technologies and practices.

Reform of the 45Q tax credit is a significant accomplishment and provides a foundation for the full portfolio of policies needed to scale commercial deployment of carbon capture, similar to what has benefitted other low and zero-carbon technologies. To that end, the Coalition has developed this policy blueprint to guide our efforts in seeking widespread adoption and deployment of carbon capture and related technologies. Economywide deployment of carbon capture will require policy and administrative action in the following areas:

Investment Certainty – Effective implementation of the 45Q tax credit is crucial to providing the financial certainty and flexibility needed to leverage the intended private investment in projects to achieve the full carbon emissions reduction, energy and industrial production, and job creation benefits of the policy. Federal agencies have a critical role to play through guidance and regulatory policy.

Technology Deployment & Cost Reductions – Just as federal RDD&D has successfully helped scale up deployment of wind, solar and other energy technologies, expanding, retooling and prioritizing federal investments in transformational carbon capture, utilization, storage and removal technologies will be a critical component of driving down costs to accelerate economywide commercial deployment.

Project Finance & Feasibility – An expanded portfolio of policies will ultimately be necessary to achieve economywide deployment by making more projects economic, particularly those involving higher-cost carbon capture from power generation and industrial processes such as the manufacture of steel and cement. This expanded portfolio includes improvements to 45Q and other tax incentives that enhance monetization, technical corrections to 45Q and other federal incentives that broaden eligibility and access, and complementary policies that contribute to overall financial feasibility by lowering the cost of debt and equity, reducing commodity risk and expanding markets for low-carbon electricity, fuels and products produced through carbon capture.

Infrastructure Deployment – To achieve the full potential of carbon capture as a national strategy for reducing carbon emissions, enhancing energy independence and protecting and creating high-wage jobs, we must responsibly scale up this infrastructure to create a nationwide network for transporting CO2 captured from industrial facilities, power plants and ambient air to locations around the country where it can be put to beneficial use or safely and permanently stored in geologic formations. This buildout will include capacity expansions and extensions of existing pipeline networks, as well as the construction of long-distance, large-volume interstate trunk lines to serve states and regions that currently lack CO2 transport infrastructure.

A comprehensive and robust federal policy agenda can help the U.S. sustain its position as a global leader in the commercialization and deployment of these crucial energy and industrial technologies and infrastructure. The Coalition’s policy blueprint underscores the foundational importance of bipartisan passage of the reformed and extended 45Q tax credit in 2018.  Complementary policies and incentives that provide investment certainty, spur technology deployment and provide cost reductions, enhance project finance and feasibility and encourage infrastructure deployment will be needed to ensure that carbon capture, storage, utilization and removal achieves economywide deployment in the next ten years.

Click here to download the Carbon Capture Coalition Federal Policy Blueprint.

Click here to download a summary of the Carbon Capture Federal Policy Blueprint.

Click here to view a one-page summary of the USE IT Act.