WASHINGTON – Today, Congresswoman Cheri Bustos (IL-17) introduced legislation that would establish a program to provide secured loans to private entities to construct transportation infrastructure for anthropogenic carbon dioxide (CO2). These pipelines would allow CO2 to be captured at industrial sources, such as manufacturing plants or ethanol refineries, and moved to areas where it can permanently be stored or beneficially used. The Investing in Energy Systems for the Transport of CO2 (INVEST CO2) Act is a key aspect of Congresswoman Bustos’ Rural Green Partnership, which is a framework of principles and policies to combat climate change and spur economic growth that was submitted to the House Select Committee on the Climate Crisis earlier this year.
“The Rural Green Partnership gives rural America – including families in Northwest and Central Illinois – a seat at the table as we tackle the climate crisis,” Congresswoman Bustos said. “This legislation will build on that plan and help mobilize the resources our region has to offer by building out infrastructure to capture carbon and create a cleaner environment. As a result, we have an opportunity to capitalize on this potential and create good-paying jobs to grow the local economy.”
Today’s legislation is an important next step following the FUTURE Act’s passage in 2018, which reformed and expanded Section 45Q tax credits for CO2 storage and beneficial use. Specifically, it allowed for the build-out of trunk and feeder lines to carry CO2 from new and existing power plants and industrial facilities to locations where it can be geologically stored or put to beneficial use.
The U.S. has approximately 5,000 miles of existing CO2 pipeline networks, and much of the CO2 is transported to the Permian Basin for use in enhanced oil recovery (EOR) – a process through which the CO2 can be safely and permanently stored. Expanding these networks of pipelines will accelerate the deployment of carbon capture projects in multiple industries, as well as the geologic storage of CO2 in saline formations and through EOR.
Bolstering pipeline networks will also enhance commercial use of captured CO2 in the manufacture of chemicals, fuels, plastics, building products, advanced materials and other products, all while fostering job growth and providing an environmentally-sustainable storage or beneficial usage solution.
Key provisions of the Investing in Energy Systems for the Transport of CO2 Act include:
- Low-interest loans for trunk and feeder lines, with the program authorized at $500 million in funding.
- Loans cannot cover more than 80 percent of total cost of a CO2 transport infrastructure project; loan terms are 35 years, with 5-year deferrals.
- Establishes the U.S. Department of Transportation as the lending authority.
- Does not change the existing safety, permitting and citing regulatory framework for pipelines.
- Expresses the sense of Congress that each state should consider designating carbon dioxide pipelines as “pollution control devices” under their state law in order to qualify for the establishment of a 10-year waiver of ad valorem and property taxes for the pipelines.
Earlier this year, Congresswoman Bustos introduced her plan to combat climate change and spur economic growth in rural America – called the Rural Green Partnership – to the Select Committee on the Climate Crisis. In the Rural Green Partnership, Congresswoman Bustos calls for investment in rural infrastructure that will form the foundation of new green economic growth, which includes carbon dioxide pipelines to transport captured carbon to locations where it can be stored or utilized.