Needed CCS Policies |
Federal and state governments must enact CCS policies that are effective and wide ranging. The programs must target two key areas: completing “pioneer” projects and enabling widespread CCS deployment. V
CCS Pioneer Projects
A key national policy must be to eliminate technical uncertainty in CCS projects through funding “Pioneer Phase” projects. This “Pioneer Phase” consists of a portfolio of about 30 projects must be completed by 2018. The portfolio includes both coal and gas CCS using a variety of technologies that store CO2 in both saline formations and depleted gas/oil wells.
Until these projects are completed, wide deployment of CCS will be difficult or impossible to complete.
This goal can be met through federal enhanced oil recovery (EOR) incentives, funding saline injection projects, and CCS tax credits. State incentives are also key. They include ratebasing new CCS projects and establishing new institutions such as geologic storage utilities.
Widespread CCS Deployment
The Administration and Congress must create a significant package of financial incentives and mandates for CCS deployment, that:
- Deploy at least 50 GW of CCS between 2020 and 2040. This amount of CCS builds enough projects to drive down costs to levels expected from a mature industry.
- Establish policies that lead to near zero carbon emissions by 2050.
There are several options to meet these objective. In previous years, Congress considered several comprehensive climate bills that established caps on carbon emissions. While these bills are not under active consideration now, other approaches are being pursued.
They include:
- US EPA could establish CO2 limits through New Source Performance Standards (NSPS).
- Congress could expand incentives for CCS which close the gap between near zero carbon fossil plants and conventional alternatives.
- Congress is also considering a Clean Energy Portfolio Standard (CES) that would require utilities to buy specific amounts of electricity from low-carbon energy sources.
- Targeted R D & D that leads to CCS technology innovation.
Inactive Legislation
Congress has considered but has yet to adopt various bills that address climate policy or CCS incentives. Below are examples that provide intersting policy options.
Rockerfeller-Volnovich
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What CATF is doing in federal policy:
- CATF is working closely with the Administration and leaders in Congress to develop climate policies and regulations grounded in science, technology, and the law
- Provide non-partisan, data-driven analysis that has won the trust of Senate and House members and staff, and help to identify and defend policy designs that will achieve the greatest climate benefit at the least cost.
- Strengthen laws and regulations to clean up coal and implement carbon capture and storage.