Economic Potential of DACCS and Global CCS Progress
POLICY GUIDANCE AND ANNOUNCEMENTS
The Council on Environmental Quality (CEQ) issued guidance to promote the responsible
development and permitting of CCUS projects. Guidance elements include facilitating
federal decision making on CCUS projects and CO2 pipelines, public engagement,
understanding of environmental impacts, and carbon dioxide removal (16).
The Department of Energy Office of Fossil Energy and Carbon Management (FECM)
published its strategy for advancing CCS. The Strategic Vision establishes a framework
for making informed carbon management decisions regarding deep decarbonisation
and addressing legacy emissions. FECM prioritises justice, labour and engagement;
carbon management approaches toward deep decarbonisation; and technologies that
lead to sustainable energy (17).
The Pipeline and Hazardous Materials Safety Administration (PHMSA) announced new
safety measures for CO2 pipelines and initiated new rulemaking. PHMSA also issued
an updated advisory bulletin addressing issues resulting from geological hazards (18).
The Bureau of Land Management (BLM) issued guidance for CO2 storage in line with the
Federal Land Management Policy Act (US). BLM's instruction memorandum addressed
carbon storage on public lands, including pore space managed by BLM (19).
OFFSHORE STORAGE
The IIJA legislation amends the Outer Continental Shelf Lands Act (US), directing the
Department of Interior to develop regulations for establishing a permitting framework
for offshore CO2 storage.
JUDICIAL
The US Supreme Court issued its decision in West Virginia v United States Environmental
Protection Agency (USEPA), a case challenging the 2015 Obama administration's Clean
Power Plan's (CPP) rule. The court held that the USEPA exceeded its statutory authority
under the Clean Air Act (US) in attempting to regulate the nation's energy sector by
adopting the CPP. The court ruled that the agency could not "force a nationwide
transition away from the use of coal" (21). The decision limits the USEPA's ability to
regulate greenhouse gases. States will likely use their authority to regulate GHGs.
STATES
Several states are progressing carbon management policies. The California Air
Resources Board (CARB) released its Draft 2022 Scoping Plan for comment. The
Scoping Plan presents a path for carbon neutrality by 2045, while supporting economic,
environmental, energy security, justice, and health priorities. The Scoping Plan calls for
the deployment of CCS technology in sectors where non-combustion options are not
technically or economically viable for meeting 2045 goals (22).
Several other states have enacted legislation or policies covering CO2 storage. These
include Indiana, West Virginia, and Wyoming. States continue to face permitting concerns
where only two states, Wyoming and North Dakota, have primacy for issuing permits for
Class VI wells under the Underground Injection Control Program, which covers injection
wells for geologic storage of CO2. The existing permitting process can take years. The
state of Louisiana has a primacy permit application pending. Texas, Arizona, and West
Virginia are in the pre-application primacy application process.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
The Securities and Exchange Commission proposed a rule addressing climate-related
disclosures. The proposed rule would require company disclosure on how it plans to
attain climate-related targets (such as investing in renewable energy or carbon capture
technology). The proposal recognises that CCS will likely have a role to play in the
governance of some companies regarding ESG. (20)
[17]
GLOBAL CCS
INSTITUTEView entire presentation