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Capturing and Utilizing CO2 from Ethanol: Adding Economic Value and Jobs to Rural Economies and Communities While Reducing Emissions Figure 10: CO2 Pipeline Corridors proposed by the State CO2-EOR Deployment Work Group Proposed Pipeline Corridors Existing CO2 Pipelines Ethanol Plants USGS Oil Basin CO2 Storage Potential: Average Source: USGS 2016, GPI 2017. to High . State & Provincial Low-Carbon Fuels Standards State policies that reduce the carbon intensity of transportation fuels, particularly LCFS policies, could complement federal incentives in stimulating private investment in carbon capture and CO2 pipeline development. In some cases, such as California’s LCFS, the potential value of carbon credits from that policy alone could drive project deployment, with or without additional federal policy. In addition, California’s LCFS policy and other emerging state and provincial policies could incentivize the deployment of carbon management outside those jurisdictions, especially for ethanol producers that deliver and sell their fuels into California and other markets. The relative impact and benefit of LCFS policies in California and other jurisdictions will depend on the regulatory framework that accompanies their implementation. California Low Carbon Fuels Standard California seeks to reduce carbon emissions to 1990 levels by 2020. Subsequent goals for 2030 and 2050 aim to reduce emissions by 40 percent and 80 percent, respectively, relative to 1990 levels. The LCFS program represents one of California’s key policy tools to achieve those goals by requiring a 10 percent reduction in the carbon intensity of transportation fuels by 2020, as measured from a 2010 baseline. The program provides credits to regulated parties that achieve average fuel carbon intensity lower than the target set by the ARB. In 2016, ethanol generated approximately 40 percent of all credits under the LCFS program. The carbon intensity of transportation fuels in the California market at the end of 2016 was 2.71 percent lower than 2010, indicating that California remains on track to achieve its 2020 target. However, accomplishing the proposed target of 18 percent by 2030 would be more challenging. Page 25 Prepared by the State CO2-EOR Deployment Work GroupPDF Image | Capturing and Utilizing CO2 from Ethanol
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