II 

114TH CONGRESS 

2D SESSION S. 3459 

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 

SEPTEMBER 28, 2016 

Mr. HOEVEN (for himself, Mr. DAINES, Mr. WICKER, and Mr. MCCONNELL) 

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. SECURE GEOLOGICAL STORAGE OF CARBON 

4 DIOXIDE. 

5 Paragraph (2) of section 45Q(d) of the Internal Rev6 enue Code of 1986 is amended to read as follows: 

7 ‘‘(2) SECURE GEOLOGICAL STORAGE.— 

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1 ‘‘(A) IN GENERAL.—Not later than De2 cember 31, 2016, the Secretary, in consultation 

3 with the Administrator of the Environmental 

4 Protection Agency, the Secretary of Energy, 

5 and the Secretary of the Interior, shall establish 

6 regulations for determining adequate security 

7 measures for the geological storage of carbon 

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

9 subsection (a) such that the carbon dioxide does 

10 not escape into the atmosphere. 

11 ‘‘(B) REQUIREMENTS.—The regulations 

12 established pursuant to subparagraph (A) shall 

13 provide that— 

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

15 of subsection (a), carbon dioxide shall be 

16 considered disposed of in secure geological 

17 storage if such carbon dioxide is stored in 

18 compliance with rules promulgated by the 

19 Environmental Protection Agency under 

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

21 Federal Regulations (as in effect on the 

22 date of the enactment of this paragraph), 

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

24 et seq.) and rules under the Safe Drinking 

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

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1 are applicable to carbon dioxide disposed of 

2 in secure geological storage and not used 

3 as a tertiary injectant in a qualified en4 hanced oil or natural gas recovery project, 

5 and 

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

7 of subsection (a), carbon dioxide shall be 

8 considered disposed of in secure geological 

9 storage if such carbon dioxide is stored in 

10 compliance with rules promulgated by the 

11 Environmental Protection Agency which 

12 are applicable to carbon dioxide used as a 

13 tertiary injectant in a qualified enhanced 

14 oil or natural gas recovery project under— 

15 ‘‘(I) subpart UU of part 98 of 

16 title 40, Code of Federal Regulations 

17 (as in effect on the date of the enact18 ment of this paragraph), under the 

19 Clean Air Act, and 

20 ‘‘(II) subpart C of part 146 of 

21 title 40, Code of Federal Regulations 

22 (as in effect on the date of the enact23 ment of this paragraph), under the 

24 Safe Drinking Water Act, to the exmstockstill on DSK3G9T082PROD with BILLS

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1 tent such rules are applicable to Class 

2 II wells.’’. 

Æ 

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