Introduction Of The Carbon Capture And Storage Early Deployment Act
Madam Speaker, I am pleased to introduce today the Carbon Capture and Storage Early Deployment Act, bipartisan legislation which will establish a non-governmental fund and entity to accelerate the deployment of carbon capture and storage…
Madam Speaker, I am pleased to introduce today the Carbon Capture and Storage Early Deployment Act, bipartisan legislation which will establish a non-governmental fund and entity to accelerate the 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, including petroleum, natural gas and coal.
72 percent of our nation's electricity is generated through fossil fuel combustion. 51 percent is based on coal use; 20 percent is reliant on natural gas and 1.6 percent on petroleum. Given our extensive reliance on fossil fuels and the current unavailability of sufficient alternatives to them, the continued use of fossil fuels is essential to our economic security.
The Carbon Capture and Storage Early Deployment Act 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.
I am preparing to draft a mandatory greenhouse gas control measure which will rely on cap and trade to address rising global temperatures and climate change. Power plants and industrial companies that burn fossil fuels will be required to lessen their emissions of CO2 in accordance with a schedule set in the statute. As CO2 constraints become ever more severe, not only coal using facilities will need to use CO2 capture and storage technologies, but facilities using natural gas and petroleum will as well. The use of CCS technology will enable fossil fuel users to meet the reduction requirements of the measure while continuing to use coal, oil or natural gas.
The legislation I am introducing today represents a necessary first step toward the implementation of such a cap and trade system to address global climate change. If severe emissions reduction requirements in a cap and trade system take effect before the carbon capture and storage technologies are available, the effect on coal fired utilities in particular would be severe. They would rapidly switch from coal to other fuels. Such fuel switching would significantly increase electricity prices to the severe 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 percent 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, from fertilizer to chemicals, would be dislocated. The early arrival of CCS is essential to prevent this economic disruption in a carbon constrained economy.
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 are necessary for the permanent storage underground of large quantities of CO2 in a variety of storage media in widely dispersed locations around the nation.
In order to accelerate the deployment of CCS technologies, the Carbon Capture and Storage Early Deployment Act authorizes the establishment of a Carbon Storage Research Corporation. The nation's fossil fuel- based electricity distribution utilities would be authorized to hold a referendum for the creation of the Corporation. If the referendum results in approval by representatives of two-thirds of the fossil fuel-based electricity delivered to retail consumers, the Corporation is established.
The Corporation will be operated as a division or affiliate of the Electric Power Research Institute (EPRI) and will be managed by a Board of not more than 12 members, which will be appointed by the EPRI and will include representatives of investor owned utilities, utilities owned by a federal or state agency or a municipality, rural electric cooperatives and fossil fuel producers.
The Corporation will assess fees on distribution utilities for all fossil fuel-based electricity delivered to retail consumers. The assessment will be applied to electricity generated from coal, natural gas and oil and will reflect the relative CO2 emission rates of each fuel. The assessment will total approximately $1 billion annually. The legislation specifies that distribution utilities will be allowed to recover the costs of the fee from retail consumers, resulting in a roughly $10-$12 total annual increase in residential electricity rates.
The $1 billion annual fund will be distributed by the Corporation in the form of grants and contracts to governmental, academic and private entities for projects with the purpose of accelerating the commercial demonstration or availability of CCS technologies.
I would like to thank my colleagues on both sides of the aisle for working with me on and cosponsoring this legislation.
The Carbon Capture and Storage Early Deployment Act enjoys bipartisan and industry support and will enable the continued use of our nation's most inexpensive and abundant resources for fuel generation when a mandatory greenhouse gas emissions reduction program is implemented.
I urge my colleagues to support this measure.