CO2 Regulatory Certainty Act

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. Short title This Act may be cited as the CO2 Regulatory Certainty Act 2. Secure geological storage of carbon oxide (a) In general Paragraph (2) of section 45Q(f) (2) Secure geological storage (A) In general The Secretary, in consultation with the Administrator of the Environmental Protection Agency, the Secretary of Energy, and the Secretary of the Interior, shall establish regulations for determining adequate security measures for the geological storage of carbon oxide under subsection (a) such that the carbon oxide does not escape into the atmosphere. Such term shall include storage at deep saline formations, oil and gas reservoirs (including storage associated with qualified enhanced oil or natural gas recovery projects), and unminable coal seams under such conditions as the Secretary may determine under such regulations. (B) Requirements The regulations established pursuant to subparagraph (A) shall provide that— (i) for purposes of paragraph (1)(B) or (3)(B) of subsection (a), carbon oxide shall be considered disposed of in secure geological storage if such carbon oxide is stored in compliance with rules promulgated by the Environmental Protection Agency under subpart RR of part 98 of title 40, Code of Federal Regulations (as in effect on the date of the enactment of this paragraph), under the Clean Air Act ( 42 U.S.C. 7401 42 U.S.C. 300f (ii) for purposes of paragraph (2)(B)(i) or (4)(B)(i) of subsection (a), carbon oxide shall be considered disposed of in secure geological storage at a qualified enhanced oil or natural gas recovery project if— (I) such carbon oxide is injected in compliance with rules promulgated by the Environmental Protection Agency which are applicable to carbon oxide used as a tertiary injectant in a qualified enhanced oil or natural gas recovery project under subpart C of part 146 of title 40, Code of Federal Regulations (as in effect on the date of the enactment of this paragraph), under the Safe Drinking Water Act, to the extent such rules are applicable to Class II wells, (II) the injection of such carbon oxide at such project is reported in compliance with subpart UU of part 98 of title 40, Code of Federal Regulations (as in effect on the date of the enactment of this paragraph), under the Clean Air Act, (III) the supply of such carbon oxide to such project is reported in compliance with subpart PP of part 98 of title 40, Code of Federal Regulations (as in effect on the date of the enactment of this paragraph), under the Clean Air Act, (IV) the atmospheric emission of such carbon oxide from such project is reported in compliance with subparts C and W of part 98 of title 40, Code of Federal Regulations (as in effect on the date of the enactment of this paragraph), under the Clean Air Act, to the extent such subparts are applicable to such project, and (V) the demonstration and documentation of the containment, monitoring and quantification of such carbon oxide conforms to ISO 27916:2019 (entitled Carbon dioxide capture, transportation and geological storage - Carbon dioxide storage using enhanced oil recovery (CO2-EOR) . (b) Qualified enhanced oil or natural gas recovery project Paragraph (2) of section 45Q(e) (1) by striking by substituting (A) by substituting— , (2) by striking the period and inserting , and (3) by inserting at the end the following: (B) without regard to subparagraph (A)(iii) thereof. .

Summary: CO2 Regulatory Certainty Act This bill amends the Internal Revenue Code to revise requirements for the secure geological storage of carbon oxide. The bill requires the Internal Revenue Service (IRS), in consultation with other federal agencies, including the Environmental Protection Agency (EPA), to prescribe regulations for determining adequate security measures for the geological storage of carbon oxide so that it does not escape into the atmosphere. The IRS regulations must consider the carbon oxide to be disposed of in secure geological storage if it is stored in compliance with specified rules promulgated by the EPA under the Clean Air Act and the Safe Drinking Water Act for the geologic sequestration of carbon oxide. The bill also revises the definition of "qualified enhanced oil or natural gas recovery project" to exclude a requirement for the first injection of liquids, gases, or other matter to commence after December 31, 1990.