LVXXU

Chapter VII: Addressing Environmental Aspects of TS&D Infrastructure
QER Recommendations
CO 2
PIPELINES
Meeting U.S. GHG emission goals will require a more concerted Federal policy, involving closer
cooperation among Federal, state, and local governments. The development of a national CO 2
pipeline
network capable of meeting Federal policy initiatives should build on state experiences, including
lessons learned from the effectiveness of different regulatory structures, incentives, and processes that
foster interagency coordination and regular stakeholder engagement. To expand current Federal efforts
to meet these challenges, we recommend the following:
Work with states to promote best practices for siting and regulating CO 2
pipelines. Improving
CO 2
pipeline siting will improve safety and environmental protection. Several states have
made substantial progress on this front and provide potential models for other states. DOE,
in cooperation with Federal public land agencies, should take a convening role to promote
communication, coordination, and sharing of lessons learned and best practices among states that
are already involved in siting and regulating CO 2
pipelines, or that may have CO 2
pipeline projects
proposed within their borders in the future.
Enact financial incentives for the construction of CO 2
pipeline networks. Expanding and
improving CO 2
pipeline infrastructure could enable GHG reductions through carbon capture,
utilization, and storage, while promoting domestic oil production through EOR. Providing
incentives such as grants or tax incentives will spur activity to link low-cost CO 2
from industrial
sources to nearby oil fields and saline storage formations. The President’s Fiscal Year 2016 Budget
Request proposes the creation of a Carbon Dioxide Investment and Sequestration Tax Credit in
order to accelerate commercial deployment of carbon capture, utilization, and storage, as well as to
catalyze the development of new carbon capture, utilization, and storage technologies. Specifically,
the proposal, part of the President’s POWER+ Plan to invest in coal communities, would authorize
$2 billion in refundable investment tax credits for carbon capture technology and associated
infrastructure (including pipelines) installed at new or retrofitted electric generating units that
capture and permanently “sequester” CO 2
. 122 Congress should enact this proposed tax credit.
7-26 QER Report: Energy Transmission, Storage, and Distribution Infrastructure | April 2015