Passage of Bipartisan Omnibus Spending Bill Signals Strong Support for Carbon Management Programs at DOE

December 23, 2022 | Legislation

The following statement may be attributed to Madelyn Morrison, Government Affairs Manager of the Carbon Capture Coalition, on the passage of the Fiscal Year (FY) 2023 omnibus spending package:  

“The passage of the bipartisan FY2023 spending package sends a strong signal that the foundational carbon management programs administered by the Department of Energy (DOE), and carbon management policies more broadly, are an essential tool if we are to achieve midcentury climate targets, protect and create high-wage jobs, and support domestic energy and industrial production. This strong bipartisan support is vital to the continued success of carbon management research, development and deployment programs, further enabling the commercialization of the full suite of carbon management technologies, including carbon capture, removal, utilization, transport and storage.

“Building upon the historic investments made through the Bipartisan Infrastructure Law, CHIPS+ Science Act, and the Inflation Reduction Act, this package makes incremental but essential increases to core programmatic funding at the DOE – a fundamental source of federal support for carbon management technologies and a critical policy lever for realizing economies of scale. 

“Additionally, the omnibus includes new report language directing the Environmental Protection Agency to brief pertinent congressional committees on efforts the Agency is undertaking to enhance the Class VI permitting process for carbon storage, specifically; permitting tools, public engagement, and outreach, and anticipated full-time staffing for the Class VI program. This report language, along with new funding to support education and training for Class VI program staff, will be critical to ensure adequate permitting capacity at both the federal and state level that is necessary for economywide deployment of carbon management projects at the pace and scale required to meet both net-zero emissions and midcentury climate goals. Robust and efficient permitting of CO2 storage is central to ensuring that the significant federal investments in these technologies contained in the transformational legislation enacted over the course of the 117th Congress achieve their full climate potential. 

“Passage of the FY2023 omnibus spending package caps what has been one of the most significant congressional sessions in history for carbon management technologies. Over the course of this session of Congress, policymakers have passed more carbon management legislation and made more consequential investments in carbon management technologies than ever before in our nation’s history. This remarkable progress rightfully underscores the inclusion of carbon management technologies among the multifaceted set of clean energy solutions needed to meet our climate goals, protect and create high-wage jobs, and foster domestic energy production.

“The enactment of the Bipartisan Infrastructure Law, CHIPS+ Science Act, the Inflation Reduction Act and annual federal appropriations solidifies a robust policy framework to enable carbon management technologies to deliver an estimated 13-fold increase in carbon management capacity and annual CO2 emissions reductions of 210-250 million metric tons by 2035. The Coalition and it’s more than 100 business, labor and conservation and environmental policy organization members stand ready to support the continued development of these critically needed technologies and look forward to working with the DOE, EPA and other relevant agencies to ensure swift implementation of these important policies.”

Fossil Energy and Carbon Management (FECM) FY2023 Funding 
CCUS and Power Systems FY2022 Enacted FY2023 Final Bill Final Bill FY23 vs FY22 Enacted  
Carbon Capture $99,000,000 $135,000,000 +36,000 
Carbon Dioxide Removal $49,000,000 $70,000,000 +21,000 
Carbon Utilization $29,000,000 $50,000,000 +21,000 
Carbon Storage $97,000,000 $110,000,000 +13,000 

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Convened by the Great Plains Institute, the Carbon Capture Coalition is a nonpartisan collaboration of more than 100 companies, unions, conservation and environmental policy organizations, building federal policy support to enable economywide, commercial scale deployment of carbon management technologies. This includes carbon capture, removal, transport, utilization, and storage from industrial facilities, power plants, and ambient air.