Title: CO2 Regulatory Certainty Act
Policy area: Taxation

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.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2263 Introduced in Senate (IS)]

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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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``CO2 Regulatory Certainty Act''.

SEC. 2. SECURE GEOLOGICAL STORAGE OF CARBON OXIDE.

    (a) In General.--Paragraph (2) of section 45Q(f) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(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 et seq.) and rules 
                        under the Safe Drinking Water Act (42 U.S.C. 
                        300f et seq.) which are applicable to carbon 
                        oxide disposed of in secure geological storage 
                        and not used as a tertiary injectant in a 
                        qualified enhanced oil or natural gas recovery 
                        project, and
                            ``(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)') or the 
                                equivalent standard of the American 
                                National Standards Institute.''.
    (b) Qualified Enhanced Oil or Natural Gas Recovery Project.--
Paragraph (2) of section 45Q(e) of the Internal Revenue Code of 1986 is 
amended--
            (1) by striking ``by substituting'' and inserting 
        ``determined--
                    ``(A) by substituting--'',
            (2) by striking the period and inserting ``, and'', and
            (3) by inserting at the end the following:
                    ``(B) without regard to subparagraph (A)(iii) 
                thereof.''.
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