II 

115TH CONGRESS 

1ST SESSION S. 1663 

To amend the Internal Revenue Code of 1986 to enhance the requirements 

for secure geological storage of carbon dioxide for purposes of the carbon 

dioxide sequestration credit. 

IN THE SENATE OF THE UNITED STATES 

JULY 27, 2017 

Mr. HOEVEN introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to enhance 

the requirements for secure geological storage of carbon 

dioxide for purposes of the carbon dioxide sequestration 

credit. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘CO2 Regulatory Cer5 tainty Act’’. 

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1 SEC. 2. SECURE GEOLOGICAL STORAGE OF CARBON DIOX2 IDE. 

3 Paragraph (2) of section 45Q(d) of the Internal Rev4 enue Code of 1986 is amended to read as follows: 

5 ‘‘(2) SECURE GEOLOGICAL STORAGE.— 

6 ‘‘(A) IN GENERAL.—Not later than De7 cember 31, 2017, the Secretary, in consultation 

8 with the Administrator of the Environmental 

9 Protection Agency, the Secretary of Energy, 

10 and the Secretary of the Interior, shall establish 

11 regulations for determining adequate security 

12 measures for the geological storage of carbon 

13 dioxide under paragraph (1)(B) or (2)(C) of 

14 subsection (a) such that the carbon dioxide does 

15 not escape into the atmosphere. 

16 ‘‘(B) REQUIREMENTS.—The regulations 

17 established pursuant to subparagraph (A) shall 

18 provide that— 

19 ‘‘(i) for purposes of paragraph (1)(B) 

20 of subsection (a), carbon dioxide shall be 

21 considered disposed of in secure geological 

22 storage if such carbon dioxide is stored in 

23 compliance with rules promulgated by the 

24 Environmental Protection Agency under 

25 subpart RR of part 98 of title 40, Code of 

26 Federal Regulations (as in effect on the 

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1 date of the enactment of this paragraph), 

2 under the Clean Air Act (42 U.S.C. 7401 

3 et seq.) and rules under the Safe Drinking 

4 Water Act (42 U.S.C. 300f et seq.) which 

5 are applicable to carbon dioxide disposed of 

6 in secure geological storage and not used 

7 as a tertiary injectant in a qualified en8 hanced oil or natural gas recovery project, 

9 and 

10 ‘‘(ii) for purposes of paragraph (2)(C) 

11 of subsection (a), carbon dioxide shall be 

12 considered disposed of in secure geological 

13 storage if such carbon dioxide is stored in 

14 compliance with rules promulgated by the 

15 Environmental Protection Agency which 

16 are applicable to carbon dioxide used as a 

17 tertiary injectant in a qualified enhanced 

18 oil or natural gas recovery project under— 

19 ‘‘(I) subpart UU of part 98 of 

20 title 40, Code of Federal Regulations 

21 (as in effect on the date of the enact22 ment of this paragraph), under the 

23 Clean Air Act, and 

24 ‘‘(II) subpart C of part 146 of 

25 title 40, Code of Federal Regulations 

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1 (as in effect on the date of the enact2 ment of this paragraph), under the 

3 Safe Drinking Water Act, to the ex4 tent such rules are applicable to Class 

5 II wells.’’. 

6 SEC. 3. QUALIFIED ENHANCED OIL OR NATURAL GAS RE7 COVERY PROJECT. 

8 Paragraph (4) of section 45Q(d) of the Internal Rev9 enue Code of 1986 is amended— 

10 (1) by striking ‘‘by substituting’’ and inserting 

11 ‘‘determined— 

12 ‘‘(A) by substituting—’’, 

13 (2) by striking the period and inserting ‘‘, 

14 and’’, and 

15 (3) by inserting at the end the following: 

16 ‘‘(B) without regard to subparagraph 

17 (A)(iii) thereof.’’. 

Æ 

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