In order for the United States to remain a global leader in carbon capture and to achieve economy-wide deployment of these important technologies, a broad suite of policies is needed to accelerate the commercial deployment of carbon capture.
Below are resources to inform you about the current state and federal policy landscape for carbon capture, utilization, removal, and storage projects. This includes:
- Policy Best Practices Checklist to help you build a robust legislation based on the unique characteristics of your state
- Federal Policy Blueprint outlining what other policies are needed at the national level to help ensure economy-wide deployment of carbon capture.
Federal Policy Blueprint
The reformed and expanded federal tax credit for carbon capture projects (known as 45Q) provides a solid foundation for the growing US industry. The tax credit passed with bipartisan support as part of the federal budget bill in 2018. However, just as a portfolio of policies helped scale up other low and zero-carbon technologies like wind and solar, additional policies are needed for carbon capture.
The consensus Federal Policy Blueprint illustrates the comprehensive federal policy agenda that would help achieve economy-wide carbon capture deployment. The blueprint was created by the Carbon Capture Coalition, a nonpartisan initiative that brings together a broad and unusual group of energy, industrial, and technology companies; labor unions; and energy and environmental policy organizations. Convened by the Great Plains Institute, you can visit the Coalition’s website for up-to-date information on federal legislation and other federal policy efforts.
Policy Best Practices
State policies have an important role to play in complementing federal policy to help carbon capture projects cover cost gaps and achieve financial feasibility.
The checklist below describes state policy options and best practices that can positively affect state economies by capturing CO2 from industrial and power plant sources, putting the CO2 to to beneficial use, or permanently storing it in geologic formations or through enhanced oil recovery.
State policies and incentives are needed that provide investment certainty, spur technology deployment and provide cost reductions, enhance project finance and feasibility, and encourage infrastructure deployment.
US Department of Energy
The US Department of Energy (DOE) manages several efforts relating to carbon capture, storage, use, and removal. Please click on the links below for more information.
The Global CCS Institute
The Global CCS Institute (GCCSI) maintains a database of carbon capture projects worldwide. The project list was updated in October 2019, and the Great Plains Institute has produced a map of the eight US-based projects that have been announced as part of that update.
State Carbon Capture Work Group
The State Carbon Capture Work Group produced a comprehensive paper outlining state and federal policy recommendations in 2016. The group subsequently developed white papers on specific topics related to carbon capture.
- Putting the Puzzle Together: State and Federal Policy Drivers for Growing America’s Carbon Capture and CO2-EOR Industry
- 21st Century Energy Infrastructure: Policy Recommendations for Development of American CO2 Pipeline Networks
- Electricity Market Design and Carbon Capture Technology: The Opportunities and the Challenges
- Capturing and Utilizing CO2 from Ethanol: Adding Economic Value and Jobs to Rural Economies and Communities While Reducing Emissions