[Congressional Record (Bound Edition), Volume 154 (2008), Part 9]
[Extensions of Remarks]
[Pages 12506-12507]
[From the U.S. Government Publishing Office, www.gpo.gov]




  INTRODUCTION OF THE CARBON CAPTURE AND STORAGE EARLY DEPLOYMENT ACT

                                 ______
                                 

                           HON. RICK BOUCHER

                              of virginia

                    in the house of representatives

                        Thursday, June 12, 2008

  Mr. BOUCHER. 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

[[Page 12507]]

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.

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