II 

116TH CONGRESS 

1ST SESSION S. 2263 

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

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

oxide sequestration credit, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 25, 2019 

Mr. HOEVEN (for himself, Mr. DAINES, Mrs. HYDE-SMITH, Mr. WICKER, and 

Mr. CRAMER) 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 

oxide for purposes of the carbon oxide sequestration credit, and for other purposes. 

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 OXIDE. 

2 (a) IN GENERAL.—Paragraph (2) of section 45Q(f) 

3 of the Internal Revenue Code of 1986 is amended to read 

4 as follows: 

5 ‘‘(2) SECURE GEOLOGICAL STORAGE.— 

6 ‘‘(A) IN GENERAL.—The Secretary, in con7 sultation with the Administrator of the Envi8 ronmental Protection Agency, the Secretary of 

9 Energy, and the Secretary of the Interior, shall 

10 establish regulations for determining adequate 

11 security measures for the geological storage of 

12 carbon oxide under subsection (a) such that the 

13 carbon oxide does not escape into the atmos14 phere. Such term shall include storage at deep 

15 saline formations, oil and gas reservoirs (includ16 ing storage associated with qualified enhanced 

17 oil or natural gas recovery projects), and 

18 unminable coal seams under such conditions as 

19 the Secretary may determine under such regu20 lations. 

21 ‘‘(B) REQUIREMENTS.—The regulations 

22 established pursuant to subparagraph (A) shall 

23 provide that— 

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

25 or (3)(B) of subsection (a), carbon oxide 

26 shall be considered disposed of in secure 


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1 geological storage if such carbon oxide is 

2 stored in compliance with rules promul3 gated by the Environmental Protection 

4 Agency under subpart RR of part 98 of 

5 title 40, Code of Federal Regulations (as 

6 in effect on the date of the enactment of 

7 this paragraph), under the Clean Air Act 

8 (42 U.S.C. 7401 et seq.) and rules under 

9 the Safe Drinking Water Act (42 U.S.C. 

10 300f et seq.) which are applicable to car11 bon oxide disposed of in secure geological 

12 storage and not used as a tertiary 

13 injectant in a qualified enhanced oil or nat14 ural gas recovery project, and 

15 ‘‘(ii) for purposes of paragraph 

16 (2)(B)(i) or (4)(B)(i) of subsection (a), 

17 carbon oxide shall be considered disposed 

18 of in secure geological storage at a quali19 fied enhanced oil or natural gas recovery 

20 project if— 

21 ‘‘(I) such carbon oxide is injected 

22 in compliance with rules promulgated 

23 by the Environmental Protection 

24 Agency which are applicable to carbon 

25 oxide used as a tertiary injectant in a 


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1 qualified enhanced oil or natural gas 

2 recovery project under subpart C of 

3 part 146 of title 40, Code of Federal 

4 Regulations (as in effect on the date 

5 of the enactment of this paragraph), 

6 under the Safe Drinking Water Act, 

7 to the extent such rules are applicable 

8 to Class II wells, 

9 ‘‘(II) the injection of such carbon 

10 oxide at such project is reported in 

11 compliance with subpart UU of part 

12 98 of title 40, Code of Federal Regu13 lations (as in effect on the date of the 

14 enactment of this paragraph), under 

15 the Clean Air Act, 

16 ‘‘(III) the supply of such carbon 

17 oxide to such project is reported in 

18 compliance with subpart PP of part 

19 98 of title 40, Code of Federal Regu20 lations (as in effect on the date of the 

21 enactment of this paragraph), under 

22 the Clean Air Act, 

23 ‘‘(IV) the atmospheric emission 

24 of such carbon oxide from such 

25 project is reported in compliance with 


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1 subparts C and W of part 98 of title 

2 40, Code of Federal Regulations (as 

3 in effect on the date of the enactment 

4 of this paragraph), under the Clean 

5 Air Act, to the extent such subparts 

6 are applicable to such project, and 

7 ‘‘(V) the demonstration and doc8 umentation of the containment, moni9 toring and quantification of such car10 bon oxide conforms to ISO 

11 27916:2019 (entitled ‘Carbon dioxide 

12 capture, transportation and geological 

13 storage - Carbon dioxide storage using 

14 enhanced oil recovery (CO2-EOR)’) or 

15 the equivalent standard of the Amer16 ican National Standards Institute.’’. 

17 (b) QUALIFIED ENHANCED OIL OR NATURAL GAS

18 RECOVERY PROJECT.—Paragraph (2) of section 45Q(e) 

19 of the Internal Revenue Code of 1986 is amended— 

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

21 ‘‘determined— 

22 ‘‘(A) by substituting—’’, 

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

24 and’’, and 

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


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1 ‘‘(B) without regard to subparagraph 

2 (A)(iii) thereof.’’. 

Æ 


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