Environmental Update

U.S. Administration Makes Several Significant Carbon Capture Announcements

February 16, 2022

On February 15, 2022, the White House issued a fact sheet related to industrial sector emissions reductions that listed, among other items, several significant carbon capture announcements from across the federal government. The fact sheet comes just days after the U.S. Department of Energy (DOE) announced the availability of up to $96 million in federal funding for advanced carbon capture technologies pursuant to the recently enacted bipartisan Infrastructure Investment and Jobs Act. Collectively, these announcements implement bipartisan laws enacted by the U.S. Congress and build on the Biden administration’s approach to meeting U.S. climate goals. Companies across sectors (particularly in energy-intensive industries), developers, investors, financial institutions, and consumers alike should take stock of these federal announcements and opportunities as carbon capture gains momentum in the U.S.

Carbon capture activities listed in the fact sheet include:

carbon capture, utilization, and sequestration (CCUS) guidance from the White House Council on Environmental Quality (CEQ)
proposed revisions to greenhouse gas (GHG) reporting program requirements by the U.S. Environmental Protection Agency (EPA)
forthcoming rules for the geologic sequestration of carbon dioxide (CO2) on federal lands and the outer continental shelf by the U.S. Department of the Interior (DOI) and
collaborative CCUS project review plans by the Federal Permitting Improvement Steering Council (FPISC).

In conjunction with the fact sheet release, the CEQ also released an interim guidance document, “Carbon Capture, Utilization, and Sequestration Guidance,” to guide federal agencies and departments with regulations and permits for CCUS projects and CO2 pipelines. The guidance builds on the CEQ’s June 2021 CCUS report and was required by the 2020 bipartisan Utilizing Significant Emissions with Innovative Technologies (USE IT) Act.

Notably, the CEQ guidance identified 15 statutes (e.g., the National Environmental Policy Act (NEPA), the National Historic Preservation Act (NHPA), and the Endangered Species Act (ESA)) that a federally funded CCUS project on federal land may be subject to, and therefore, recommended agencies consider developing programmatic environmental reviews. In addition, the guidance provided a suite of recommendations for various agencies and departments to closely monitor and enforce existing regulations, develop new tools for CO2 pipeline and sequestration projects, and enhance reporting requirements for CCUS projects. The CEQ also provided a set of recommendations for public engagement on CCUS projects, including tribal consultation and environmental justice considerations. Last, the CEQ recommended that agencies collaborate on additional research and development activities for carbon capture, including CO2 removal technologies. Comments on the interim guidance are due March 18, 2022.

Details on the other agency announcements listed in the White House fact sheet are expected soon. As interest in capital investment in CCUS projects grows, we continue to monitor whether the Biden administration will take steps to accelerate (or hinder) CCUS deployment in the U.S.

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