WASHINGTON, DC-U.S. Senators Bob Casey (D-PA) and Mike Enzi (R-WY) today introduced the Carbon Storage Stewardship Trust Fund Act of 2009 to help remove a major barrier to private investment in carbon capture and storage.
“New technology holds great promise for job creation and a cleaner environment,” said Senator Casey. “This bill will encourage the commercial deployment of technology that will allow for the continued use of our Nation’s vast coal resources to produce economical and reliable power while at the same time mitigating the impact of climate change.”
“Coal will continue to fuel the nation and this bill will help coal move into a new era of production. Carbon sequestration could provide endless possibilities for Wyoming coal and decrease our dependence on foreign oil,” said Enzi.
Carbon capture and storage (CCS) will be a key component of both U.S. and international policy to reduce global emissions of carbon dioxide while allowing for the continued use of coal. The commercial viability of CCS will require further advancement of the technology as well as a thoughtful approach to addressing issues such as long-term liability of carbon storage.
The purpose of this Act is to create a program for managing the financial risk, or liability, of the long-term storage of CO2. This program will offer the private sector with a framework for how legal and financial responsibilities for commercial carbon storage operations will be addressed. Moreover, it will provide a strong incentive to industry to manage and reduce risk by deploying carbon sequestration in the safest possible manner.
A liability framework is needed that will encourage firms to invest in CCS but that will not relieve the private sector of the responsibility for ensuring that best practices are followed. The purposes of this Act are to promote the commercial deployment of CCS through the creation of a carbon storage liability trust fund and the sharing of liability between the private sector and the Federal government. Specifically, the Act would:
(1) Require private liability insurance for geological storage facility construction, and for carbon dioxide transport, injection, well plugging, site abandonment and post-closure monitoring;
(2) Establish a Federal trust fund from fees paid for by commercial carbon dioxide storage facility operators that will be used to pay for claims for damages made after storage facility stewardship is transferred to Federal government;
(3) Establish a Federal program to certify closure of commercial facilities and subsequent transfer of liability for long term stewardship to the Federal government;
(4) Convey post-closure liability for long-term stewardship of stored carbon dioxide to the Federal government or State upon receipt of certificate of closure; and
(5) Provide for prompt and orderly compensation for damages or harm from the transport, injection and storage of carbon dioxide in geological storage units.
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