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CCS IN THE AMERICAS | October & November 2022 Recap

The Global CCS Institute is delighted to present our new newsletter dedicated to:
CCS in the Americas

This newsletter provides updates on policy and advocacy events important to the work of the Global CCS Institute in the Americas. Tremendous activity continues in the decarbonization sector due mainly to government incentives, carbon offset credits, environmental, social, and governance (ESG) considerations, community concerns, and broader climate concerns as the world approaches 2030 and 2050, where specific carbon reduction targets must be met.

     

Table of Contents

  1.  United States – Federal (Policy/Legislation/Regulation) 
    1.  Executive Branch
    2. Legislative Branch
  2. United States – States (Policy/Legislation/Regulation)  
    1.  Louisiana 
  3. Institute Advocacy and Communications Events in the Americas 
  4. Areas to Watch (News Excerpts) – United States 
    1. Executive Branch 
    2. Legislative Branch  
  5. Areas to Watch (News Excerpts) – Canada 
    1.  Federal Government 
    2. Provinces 
  6. Looking Forward to Next Month 
  7. Other News

     

United States – Federal (Policy/Legislation/Regulation) 

EXECUTIVE BRANCH 
U.S. Government Accounting Office (GAO): On September 29, 2022, the GAO released its report entitled “Decarbonization: Status, Challenges, and Policy Options for Carbon Capture, Utilization, and Storage (CCUS).” This report discusses 
  • The status of available carbon capture technologies, 

  • Opportunities for using or storing captured CO2, 

  • Key challenges that could affect the development, demonstration, and deployment of CCUS technologies, and 

  • Options policymakers could consider helping address these challenges.  
The options offered included research, development, demonstration, technology-neutral standards, standardized lifecycle guidelines, a framework for land access, strategic siting, modification of incentives, and community engagement. 

Department of the Treasury/IRS: The IRS issued notices seeking input on different aspects of the energy tax benefits in the Inflation Reduction Act of 2022 (“IRA”) (Pub. L. 117-169). The first notice was issued on October 5, 2022.  In addition, the IRS requested public comment on implementing key provisions such as elective payment of applicable credits, transfer of certain credits, and prevailing wage and apprenticeship requirements. Comments were due November 4, 2022.  A subsequent notice was issued requesting comments on the Credit for Carbon Oxide Sequestration with a comment due date of December 3, 2022.  The IRS indicates that consideration will be given to any written comments submitted  after the due dates if such consideration will not delay the issuance of guidance.   

Department of Energy (DOE): On October 6, 2022, DOE announced $2 billion from the “Bipartisan Infrastructure law to finance carbon dioxide transportation infrastructure. DOE began accepting letters of interest from applicants for loans under a new $2.1 billion Carbon Dioxide Transportation Infrastructure Finance and Innovation (CIFIA) program. Under President Biden’s Bipartisan Infrastructure Law, CIFIA offers funding for large-capacity, shared carbon dioxide (CO2) transportation projects in the United States. Appropriated annually through 2026, CIFIA will support shared infrastructure projects, including pipelines, rail transport, ships and barges, and ground shipping, that connect anthropogenic carbon sources with endpoints for storage or utilization.” 

Security Exchange Commission (SEC):  On October 7, 2022, the  SEC reopened the comment periods for "Several Rulemaking Releases Due to Technological Error in Receiving Certain Comments." This comment period closed on November 1, 2022. 

Department of Energy (DOE): issued “Community Benefits Plan Frequently Asked Questions” (FAQs). Respondents must submit Community Benefits Plans to DOE Funding Opportunities Announcements (FOA). These plans are based on four core policy priorities: 

  • Investing in America's workforce 
  • Engaging communities and labor 
  • Advancing diversity, equity, inclusion, and accessibility 
  • Implementing Justice 40 
When incorporated comprehensively into project proposals and executed, these fundamental principles will help ensure broadly shared prosperity in the clean energy transition. 

Environmental Protection Agency (EPA):  On October 28, 2022 the EPA issued its Report to Congress on Class VI well permitting. The agency noted that the permitting process could be streamlined.  The process includes early engagement with permit applicants and development of “internal EPA resources to standardize and expedite the application review process across EPA Regions”. 

LEGISLATIVE BRANCH
Congressional Research Service (CRS).  On October 5, 2022, the CRS updated its report on Carbon Capture and Sequestration (CCS) in the United States.   


     

United States – States (Policy/Legislation/Regulation)

LOUISIANA  On October 13, 2022, the Livingston Parish Council’s fight to halt carbon capture projects in the area continued when the council approved a year-long moratorium on Class V injection wells. This vote comes on the heels of the council approving a year-long moratorium on Class VI wells in September. 


     

Institute Advocacy and Communications Events in the Americas

October 6, 2022. Erin Billeri spoke at Preston Pipe’s OCTG & Line Pipe Forecasting Summit in Houston, giving a broad audience of steel pipe manufacturers and steel mills an overview of CCS activity in North America, with a focus on the outlook for CO2  pipeline development.


October 12, 2022. Erin Billeri moderated a roundtable discussion at the DOE’s CO2 Freight Transport Workshop focused on providing stakeholders with the opportunity to discuss current activities regarding the transportation of CO2 and to discuss issues and opportunities that might impact the capacity of the various modes of freight transportation to provide cost effective services as the demand to transport anthropogenic CO2 increases due to recent legislation. The findings will be used to inform an upcoming Congressional report. 

 

October 17, 2022. The Institute launched the 2022 Global Status of CCS Report. The flagship Status Report provides a comprehensive overview of the progress of carbon capture and storage (CCS) technology over the last year, including newly released numbers of CCS facilities in operation and under development. 

 

October 24, 2022. Ruth Ivory-Moore moderated a panel entitled “ Straight Talk: Examining the role of government intervention & tax incentives” at the Decarb Invest Conference Delivering Critical CO2 Hubs and Infrastructure by 2030. The panelists were Shannon Angielski (Principal Governmental Issues, Van Ness Feldman),  Noah Deich ( Deputy Assistant Secretary of Carbon Management, Office of Fossil Energy and Carbon Management, Department of Energy), Sasha Mackler (Executive Director, The Energy Program, Bipartisan Policy Center), and Katie MacDonald (Director of Technology to Market New York State Energy Research and Development Authority.


October 28, 2022. The Post-Inflation Reduction Act 45Q Tax Credit: Maximizing and Monetizing 45Q Webinar.  The webinar featured a panel of experts specializing in credit-maximizing structures, CCS project development, finance structuring, and regulatory analyses. The panelists were Matt Kittell (DOE Loan Program Office), Ellen Friedman (Partner – Baker Botts), Barbara S. de Marigny (Partner – Baker Botts), Ben Reiter (Associate- Nixon Peabody), and Michael Platner (Senior Tax Counsel – Van Ness). 


November 1, 2022. The Institute hosted an Americas Member Meeting in Houston. The agenda included sessions prior to the main meeting that discussed CO2 injection wells, community advocacy approaches, and decarbonized 24/7 power. The main meeting agenda included a status review of US DOE programs, as well as panel discussions regarding the impacts of the Inflation Reduction Act, project deployment challenges, permitting and approaches for  CO2 storage, and financing of CCS technologies and projects.


November 1, 2022. Jeff Erikson participated in a panel discussion on CCS at KPMG’s Global Energy Transformation Conference in Houston.  Senior executives from Microsoft and Talos Energy joined Jeff on the panel.  The discussion focused on the need for and opportunity of CCS deployment globally.


November 14, 2022. Ruth Ivory-Moore led a discussion on CCS and Environmental/Climate Justice during the CCUS Commercialization Consortium virtual meeting.  The discussion led the  Institute gaining overwhelming  support for formation of an academic collaborative  group to address the challenges of CCS deployment.

 

November 15, 2022. Whole Value Chain Carbon Capture, Utilization, and Storage Conference – Joey Minervini presented a talk on the Global Status of CCS for this gathering of students and scientists working in CCUS. The conference was a week-long event, focusing on a different part of the CCUS value chain each day and was hosted collaboratively by the Petroleum Research School of Norway (NFiP), The Colorado-Norway Clean Energy Research and Educational Collaboration (ColNor), NorTex Petroleum Cluster, Rice University and Colorado School of Mines.  

     

Areas to Watch (News Excerpts) – United States

EXECUTIVE BRANCH

  • Department of Energy (DOE) Notice of Intent for Carbon Dioxide Removal Measurement, Reporting, and Verification Lab Call. November 7, 2022 The DOE’s Office of Technology Transitions (OTT), in partnership with the Office of Fossil Energy and Carbon Management (FECM), intends to issue a lab call on Carbon Dioxide Removal Measurement, Reporting, and Verification Best Practices and Capabilities. The lab call is funded by the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL), as part of the DOE Technology Commercialization Fund (TCF). OTT anticipates releasing the solicitation in the coming months, and eligible applicants include DOE National Laboratories, plants, and sites. 

 

LEGISLATIVE BRANCH

  • Booker, Warren Lead Colleagues in Urging the CFTC to Pursue Stronger Oversight of Carbon Offsets Market. October 13, 2022. Seven U.S. Senators signed a letter urging the Commodity Futures Trading Commission (CFTC) to take concrete steps to implement rules governing the voluntary carbon offsets market, also referred to as carbon credits. In the letter, the U.S. senators stated that buying offsets enables companies to: 
    •  “…make bold claims about emission reductions and pledges to reach “net zero”, when in fact they are taking little action to address the climate impacts of their industry…” 

  • Joyce, Carter Introduce Bipartisan Bill to Mitigate CO2 Emissions. October 26, 2022.  Reps. Dave Joyce (OH-14) and Troy Carter (LA-02) introduced H.R. 9230, the SECURE Act, which would double the funding in the Bipartisan Infrastructure Bill to increase  the Environmental Protection Agency’s (EPA) authorized grant funding from $50 million to $100 million to help states pay for expenses related to the establishment and operation of underground injection control programs, Class VI wells. 

     

Areas to Watch (News Excerpts) – Canada

FEDERAL GOVERNMENT

 

PROVINCES

  • Oilsands group pledges to spend $16.5B on carbon capture project by 2030. October 14, 2022.  Canada's biggest oilsands producers say they will spend $16.5 billion before 2030 on the first stage of a massive, proposed carbon capture and storage facility near Cold Lake, Alta. The Pathways Alliance, a consortium of the country's six largest oilsands companies, says preliminary work on the proposed project is well underway. 
  • Investment boom coming for energy sector as 2050 looms, experts say. October 26, 2022.“ Canada's energy sector will be the recipient of a wave of public and private investment dollars in the coming decade, experts say, as the push to reach net-zero greenhouse gas emissions by 2050 gains momentum… Investment dollars will be needed for everything from carbon capture and storage and other projects aimed at helping to "green" traditional high-emitting sectors like oil and gas extraction, as well as for renewables, nuclear, electrification, large-scale building retrofits and more.” 


     
Looking Forward to December 

The Rise of Carbon Capture & Storage in Brazil


12 December 2022 

Webinar



Other News

 (The appendix contains information that may directly or indirectly impact CCS deployment) 


Environmental Justice - Federal Executive Branch 

 

United States Environmental Protection Agency (USEPA) 

  • EPA Launches Updates to Environmental Justice Mapping Tool EJScreen (October 11, 2022) The U.S. Environmental Protection Agency (EPA) update includes adding new capabilities to EJScreen, the Agency's public environmental justice (E.J.) screening, and mapping tool. EJScreen combines environmental and socioeconomic information to identify areas overburdened by pollution. The EJScreen includes the addition of new data on U.S. territories, threshold maps that provides a cumulative outlook, and supplemental indexes providing additional socio-economic information 
  • Environmental Justice Update: EPA Issued Initial Findings Regarding Louisiana Civil Rights Complaints(October 12, 2022) The EPA’s preliminary fact-finding  suggests” that the Louisiana regulators’ “actions or inactions  resulted and continue to result in disparate impacts on Black residents” at three Louisiana locations.”  

 

Nongovernment Organization - Policy Supporting Report(s) 

  • October 26, 2022. The Center for America Progress issued a  report that  “Outline[d] the  Pathway To Decarbonizing Steel and Cement Industries”.  The report acknowledges that carbon capture is not a silver bullet for addressing decarbonization in all sectors. However, in the case of cement and steel production, it currently offers a scalable alternative for existing production to decarbonize processes in the short term. 

     
 
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