On August 16, 2022, President Biden signed the Inflation Reduction Act (IRA) into law. The IRA provides tax incentives and grants for solar, wind, hydrogen, nuclear, oil and gas, and carbon capture, utilization and storage projects (CCUS). Specifically the IRA amends section 45Q of the tax code to provide credits for the capture and storage of carbon dioxide (CO2) in underground geologic formations. In the second environmental and energy law spin off episode of Briefly Legal, join attorneys Tim Sowecke and Alyssa Sloan as they discuss the growth of CCUS projects and the monetization of CO2 under the IRA, with a specific focus on the management of CO2 as a waste product in industrial and oil and gas operations under the Safe Drinking Water Act’s (SDWA) Underground Injection Control (UIC) program. They’ll highlight important jurisdictional distinctions between UIC Class VI wells used to collect CO2 emissions from large point sources like power generation or industrial facilities, and Class II wells used to dispose of CO2 as a waste product in oil and gas operations. They’ll also touch on environmental justice considerations in the siting of CCUS projects. Whether you’re an oil and gas operator trying to manage CO2 emissions, an entrepreneur looking at opportunities in the nascent carbon market, or just someone wanting to know more about carbon capture and storage, this episode will shed light on some of the latest efforts to capture and commoditize CO2 in the United States.
About Tim Sowecke and Alyssa Sloan