CO2 Regulatory Certainty Act

Bill: 115-s-1663
Sponsor: full_name: Sen. Hoeven, John [R-ND]
Introduced: 2017-07-27
Policy area: Taxation
Subjects: Administrative law and regulatory procedures

Air quality

Climate change and greenhouse gases

Environmental Protection Agency (EPA)

Environmental regulatory procedures

Income tax credits

Oil and gas

Water quality

Water use and supply
Latest action: action_date: 2017-07-27
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2017-07-27
action_desc: Introduced in Senate
text: <p><b>CO2 Regulatory Certainty Act </b></p> <p>This bill amends the Internal Revenue Code to revise requirements for the secure geological storage of carbon dioxide for the purpose of the tax credit for carbon dioxide sequestration. </p> <p>The bill establishes a December 31, 2017, deadline and requirements for regulations that the Internal Revenue Service (IRS) is required, under current law, to establish for determining adequate security measures for the geological storage of the carbon dioxide such that carbon dioxide does not escape into the atmosphere. </p> <p>The IRS regulations must consider the carbon dioxide to be disposed of in secure geological storage if it is stored in compliance with specified rules promulgated by the Environmental Protection Agency under the Clean Air Act and the Safe Drinking Water Act for the geologic sequestration of carbon dioxide, the injection of carbon dioxide, and the criteria and standards for underground injection control programs that are applicable to Class II wells. </p> <p>The bill also revises the definition of &quot;qualified enhanced oil or natural gas recovery project&quot; to exclude a requirement for the first injection of liquids, gases, or other matter to commence after December 31, 1990.</p>

tv_txt: II 115th CONGRESS 1st Session S. 1663 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. Short title This Act may be cited as the CO 2 Regulatory Certainty Act . 2. Secure geological storage of carbon dioxide Paragraph (2) of section 45Q(d) of the Internal Revenue Code of 1986 is amended to read as follows: (2) Secure geological storage (A) In general Not later than December 31, 2017, 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 dioxide under paragraph (1)(B) or (2)(C) of subsection (a) such that the carbon dioxide does not escape into the atmosphere. (B) Requirements The regulations established pursuant to subparagraph (A) shall provide that— (i) for purposes of paragraph (1)(B) of subsection (a), carbon dioxide shall be considered disposed of in secure geological storage if such carbon dioxide 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 dioxide 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)(C) of subsection (a), carbon dioxide shall be considered disposed of in secure geological storage if such carbon dioxide is stored in compliance with rules promulgated by the Environmental Protection Agency which are applicable to carbon dioxide used as a tertiary injectant in a qualified enhanced oil or natural gas recovery project under— (I) 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, and (II) 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. . 3. Qualified enhanced oil or natural gas recovery project Paragraph (4) of section 45Q(d) 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. .