BOUCHER INTRODUCES LEGISLATION TO ACCELERATE THE AVAILABILITY OF CARBON CAPTURE AND STORAGE TECHNOLOGY
Bill Creates $1 Billion Annual Fund to Bring Cutting Edge Clean Coal Technologies to Market
U.S. Representative Rick Boucher (D-VA), Chairman of the House Energy and Air Quality Subcommittee, today introduced bipartisan federal legislation to advance the development and deployment of carbon capture and storage (CCS) technologies. CCS is a method of reducing greenhouse gas emissions by capturing and injecting underground the carbon dioxide emitted from electricity generation plants that use fossil fuels. Boucher is joined in the sponsorship of the bill by Rep. Fred Upton (R-MI), Rep. John Murtha (D-PA), Rep. Joe Barton (R-TX), Rep. Nick Rahall (D-WV), Rep. Ed Whitfield (R-KY), Rep. Jerry Costello (D-IL), Rep. John Shimkus (R-IL), Rep. Jim Matheson (D-UT), Rep. Mike Doyle (D-PA), Rep. Tim Holden (D-PA), Rep. Brad Ellsworth (D-IN), Rep. Baron Hill (D-IN), Rep. Charlie Wilson (D-OH), and Rep. Deborah Pryce (R-OH).
The legislation would establish a $1 billion annual fund, derived from fees on the generation of electricity from coal, oil and natural gas. Grants from the fund will be awarded to large-scale projects advancing the commercial availability of CCS technology.
"Coal is America's most abundant domestic fuel, and today, coal accounts for more than one-half of the fuel used for electricity generation. Given our large coal reserves, its lower cost in comparison with other fuels, and the inadequate availability of fuel alternatives, preservation of the ability of electric utilities to continue coal use is essential. The legislation introduced today addresses this clear need by enabling electric utilities that use coal to have the continued ability to do so when a mandatory program is implemented to control greenhouse gas emissions," Boucher said.
According to Boucher, if severe emissions reduction requirements are imposed before the carbon capture and storage technologies are available, the result would be a rapid switch from coal to other fuels. Such fuel switching would significantly increase electricity prices to the detriment of both residential and industrial electricity consumers. Fuel switching from coal would most likely result in far greater uses of natural gas for electricity generation, severely stressing an already constrained natural gas supply and dramatically increasing natural gas prices.
"Today 58% of U.S. homes are heated with natural gas, and numerous industries are heavily reliant on it. If large scale switching by utilities from coal to natural gas occurs, tens of millions of Americans would experience deep economic pain, and many domestic industries would be dislocated. The early arrival of CCS is essential to prevent this economic disruption in a carbon constrained economy," Boucher said.
"Some think power from coal is the dreary past and our energy future is all sun, wind, geysers, trash and tides," Barton said. "Maybe, but not yet. When working families are paying electricity bills so high they look like house payments, we in Washington can't afford to put our country's least expensive and most available energy off limits."
"Carbon-capture technology is reaching maturity, and it offers the promise right now of affordable power. This bill can make a real difference in the daily lives of people who work for their living and strain to pay their bills, and I'm going to help get it passed," Barton said.
While some commercial CCS projects are in operation, they are small in scale and have the purpose of enhancing oil recovery. Further research, development and demonstration is necessary for the permanent storage underground of large quantities of CO2 in a variety of storage media in widely dispersed locations around the nation. Carbon conversion technology also exhibits promise with the ability to convert CO2 into an environmentally harmless form. The new fund will finance research on various methods of capturing CO2 from the combustion process and establish the reliability of conversion or storage in multiple storage sites.
"Coal is a valuable resource," commented Murtha. "With this technology and legislation, we can enhance existing coal power plants by providing the resources they need to meet the federal requirements and reduce greenhouse gases."
"This bill will further strengthen America's coal industry, promote new green' jobs, and protect our environment," said Murtha. "It's the responsible thing to do."
"Energy prices drive our economy-as the price of gasoline has skyrocketed due, in part, to policies that limit access to American energy resources, it is critical that electricity rates do not follow suit. We must take advantage of our nation's vast coal reserves that have the promise to produce clean and affordable power for generations. In our quest to reduce greenhouse gas emissions and protect the environment, we must promote exciting new clean coal technologies that will not only keep costs down for consumers, but also foster new jobs and a strong economy. These technologies exhibit great promise, and in encouraging advancements in carbon capture, we'll be able to responsibly fortify our nation's energy supply with American-made energy and protect the pocketbooks of our nation's consumers as well," Upton said.
"Carbon capture and sequestration is critically needed in order to continue providing sufficient supplies of affordable energy to American families in an era of increased climate change awareness. But we need to get this technology moving now. The small-scale work that we're currently doing is not going to cut it in time. This bill is essential to getting carbon capture and sequestration moving in the near-term, by starting up the large scale projects that so much of the electric power industry is waiting for," Chairman of the House Committee on Natural Resources Nick Rahall said.
"We need to be realistic and recognize that coal will remain a key fuel in our nation's energy portfolio. The United States has enough coal to power our country for the next 250 years and it provides fuel for over 50 percent of all electricity in the country. Coal is a resource we simply cannot afford to waste. This legislation will advance Carbon Capture and Storage technology and deployment, ensuring an environmentally responsible role for coal in our energy future," said Whitfield.
"The full development of CCS technologies is a national priority, and this legislation will allow us to maximize our domestic coal resources while keeping energy bills affordable for consumers," said Costello. "Coal will continue to play a significant role in our national energy plans and CCS will let us use it cleanly while creating jobs."
"It is critical that the abundant coal resources we have in the United States be used in any national energy plans," Shimkus said. "This technology can allow us to use coal to provide American jobs and spur the economy while capturing and storing carbon."
The legislation would authorize the nation's fossil-based electricity distribution utilities to hold a referendum on the establishment of a Carbon Storage Research Corporation. If approved by entities representing 2/3 of the nation's fossil fuel-based delivered electricity, the Corporation would be established and would be authorized to collect assessments from retail customers of fossil based electricity. The Corporation will be operated as a division of the Electric Power Research Institute and would assess fees totaling approximately $1 billion annually. These monies would then be used by the Corporation to fund the large scale demonstration of CCS technologies in order to accelerate the commercial availability of the technologies. The fee to be collected would represent an increase of approximately $10-12 annually for the average residential consumer of fossil fuel based electricity.
"This legislation is by no means in lieu of a cap and trade measure, which I believe to be urgently needed. It simply begins the necessary work to accelerate the deployment of CCS technologies in order to ensure that they are commercially available at the earliest possible time," Boucher added.
The legislation enjoys wide industry support:
"We wholeheartedly support this legislation because it will allow our nation to responsibly address climate change by developing the technology needed to stabilize greenhouse gas emissions both here in the U.S. and around the world. America must be a leader in developing and implementing CCS technology and this legislation will enable us to do that. Passage of this bill is critical for all Americans, including those who mine the coal that produces the energy needed to meet our nation's current and ever-increasing demands," said Cecil Roberts, President of the United Mine Workers of America.
"Funding for the continued development and commercial deployment of carbon capture and storage technology is vitally important for the nation's economy and energy security," said Michael G. Morris, Chairman, President, and CEO of American Electric Power. "Representative Boucher's bill provides funding for the technology for the next 15 years, filling what we considered to be a significant void in other climate legislation. Coal is this nation's primary fuel used to generate electricity. Taking steps today to address greenhouse gas emissions from coal will lead to more cost-effective options for complying with future mandatory climate rules."
"The legislation introduced today by Chairman Boucher, Mr. Upton, Mr. Murtha, Mar. Barton, Mr. Rahall, Mr. Whitfield, Mr. Costello and Mr. Shimkus squarely acknowledges the critical role that technological innovation must play in any meaningful effort to address global climate change concerns," said Kraig Naasz, National Mining Association President and CEO.
"The National Mining Association is pleased to support this important legislation that is designed to continue the nation's use of affordable domestic coal with near zero emissions. This bill truly deserves the support of all those seeking environmental solutions that enhance our energy and economic security," Naasz added.
"As the saying goes, a vision without resources is a hallucination-and we simply cannot address climate change without new and creative ways to fund advanced technology that can capture carbon dioxide from coal power plants and sequester it safely underground," said Duke Energy CEO Jim Rogers. "I congratulate Chairman Boucher for his proposal and encourage all members of Congress who want to go to work on climate change to support this legislation."
"The Carbon Capture and Storage Early Deployment Act is an essential step forward to advance new technologies to address global climate change by reducing carbon emissions, promoting domestic energy sources and protecting consumers. Dominion strongly supports this legislation," said Thomas F. Farrell, II, Chairman of Dominion.
"New technology that is both commercially available and widely deployable is essential to meeting future demands to reduce greenhouse gas emissions," said David Ratcliffe, Chairman, President and CEO of Southern Company. "I applaud Congressman Boucher for taking a leadership role by introducing this legislation, which will provide a practical mechanism to fund the development of this technology."
"The overarching issue in the power industry today is how to address global climate change and the growing demand for energy while maintaining a secure electricity supply, reliable service and affordable rates. Breakthrough technology is critical to our ability to achieve significant reductions in greenhouse gas emissions. This legislation recognizes the importance of aligning reduction targets with technological advancements, and we are pleased to support it," said Bill Johnson, Chairman, President and CEO of Progress Energy. "I commend Chairman Boucher for his leadership as we continue to work with Congress and our states to address the new energy realities of growing energy demand and global climate change."
"SRP supports the intent of legislation introduced by Congressman Rick Boucher to accelerate development of commercial scale technology to control greenhouse gas emissions. We believe the best interest of our customers can be best served by the proposed public-private partnership and funding formula," said Dick Silverman, CEO of Salt River Project.