United States: Comment period opens on carbon capture, utilization and sequestration
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This week, the White House Council on Environmental Quality (EQC) released “Carbon Use and Sequestration Guidance” seeking comment by March 18, 2022. The guidance was also announced in a White House statement titled “Fact Sheet: Biden-Harris Administration Advances Cleansing Industrial Sector to Reduce Intakes and Reinvigorate U.S. Manufacturing.” The interim guidance is designed “to facilitate an efficient, orderly and responsible deployment of CCUS.” It provides federal agencies with a framework for regulating and licensing carbon capture, utilization, and sequestration (CCUS) activities in the United States and further reiterates the Biden-Harris administration’s commitment to increase CCUS Research, Development, Demonstration and Deployment (RDD&D) support. ; the improvement of the tax incentive of article 45Q; and ensuring that CCUS technologies are informed by community perspectives and consistent with the administration’s climate, public health, and economic goals.
The guidelines are in line with the Use of Significant Emissions with Innovative Technologies (USE IT) Act and are based on the June 2021 CCUS report from the CEQ. More specifically, it considers the following:
- Robust and transparent environmental reviews for CCUS projects.
- Incorporation of environmental justice and equity considerations to protect overburdened communities from direct, indirect and cumulative impacts.
- Meaningful public engagement and tribal consultations early in the process.
- Opportunities to create well-paying, unionized jobs and training programs.
- Life cycle analyzes of CCU and Carbon Dioxide Removal (CDR) projects.
Akin Gump regularly assists companies with CCUS issues and with representations before federal regulators. We encourage all companies involved in aspects of CCUS to read the guidelines carefully.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
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