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Other Federal Legislation. Congress has the oppor- tunity to pass three pieces of legislation before the next election that would advance carbon utilization. • First, the USE IT Act was expressly proposed by Congressional carbon capture supporters as a logical set of next steps after 45Q. For carbon utilization, USE IT promises to improve coordination of CO2 transportation and to provide additional research support. • Second, both the House and Senate committees of jurisdiction for the DOE-FE research and development (R&D) program have begun crafting reauthorization legislation that committee leaders hope to advance with bipartisan support. This is a critical opportunity for Congress to prioritize the development of CCU technologies, and to authorize the funding levels that would support an amibitious research agenda. • Third, national infrastructure legislation, if and when it begins to move, should prioritize the construction of CO2 transportation that will facilitate linking CO2 sources with potential CCU development. NEAR-TERM ACTIONS (2019–2022) Research and Development CCU R&D is at a critical stage, and continued progress in specific areas such as electrolytic hydrogen, as discussed above, may have significant impact by the end of the “near-term” period. Regardless of whether Congress is able to agree on a new FE R&D authorization, it has the authority to continue increasing spending levels through this period. (It should also continue increasing the Bioenergy Technology Office’s research budget.) As for research priorities, the needs described by the 2018 National Academy of Sciences Report are a good starting point for considering government R&D agenda for both the near- and longer-term. Establishing interagency coordination of federal CO2 utilization policy at senior level would help to align priorities. In addition, consideration should be given to: • Authorizing the funding of more and larger pilots ($5 million–$10 million range) • Ensuring follow-through funding through the commercialization stage to address the “valley of death” problem; • Allowing for the conversion of carbon capture pilot projects to carbon utilization pilots (Some pilot proj- ects that receive funding for CO2 capture could be incentivized to continue operating to provide CO2 for project developers). Project Financing Making carbon utilization projects eligible for private activity bonds and treatment as master limited partnerships would make financing projects more attractive. Congress could extend these options to carbon capture projects, including CCU, with little cost to the U.S. Treasury. Another small but significant action would be to allow for the subsidization of private industry front-end engineering design (FEED) studies. Market Enablers Pipelines, technology, and financing are “supply side” policies, but providing incentives on the demand side will help as well. They could include the following supportive actions: • Establish incentives for businesses that adopt CCU technologies, such as construction materials, fuels, chemicals, and plastics, into their supply chains. • Expand incentives for low-carbon fuels, such as by expanding Low Carbon Fuel Standards, Renewable Fuel Standards, and other mandates to include fuels made from captured carbon. • Increase state and local procurement policies that encourage the use of captured carbon in materials for infrastructure development and fuels for government fleets. While not a government policy issue, industry standard setters could encourage the use of captured carbon by reforming guidelines like the Leadership in Energy and Environmental Design (LEED) standard for buildings, and those set by the International Standards Organization (ISO) and ASTM (formerly known as the American Society for Testing and Materials) for commercial and industrial activities. MID-TERM ACTIONS (2023–2030) If government can accomplish the above policy reforms by 2023, the rest of the decade can be focused on implementation. A significant expansion of CO2 transportation pipelines will take time but will be dependent upon the above-described actions at both the federal and state level. 24 Center for Climate and Energy SolutionsPDF Image | Carbon Utilization
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