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5. The US is falling behind the world in building a new clean energy economy.
7. Investing in clean energy creates lots of construction jobs, which pay 17% better than the
average wage.
8. Construction jobs are good. Right now, they are especially good if you live in Idaho [2 R],
Nebraska [1 D, 1 R], Oregon [2 D], New Mexico [2 D], or South Dakota [2 R].
10. The transition to a low-carbon economy must protect poor people by not jacking around
energy prices.
Even by normal standards, this is weak stuff rhetorically. It focuses on how good “clean energy” will
be for the economy, while saying very little of substance about climate change. More importantly, it
doesn’t define what “clean energy” is.
Section 1413. Carbon Capture and Sequestration Program Partnership Council. – Page 85
The Secretary of Energy will establish a Carbon Capture and Sequestration Program Partnership
Council. Each member can serve up to eight years. Coal-based electric utilities are guaranteed a
majority vote on the council. Utility candidates will be nominated by the:
Fossil fuel producers and independent generators [Note: independent generation is over half of
current US electric generation] each get at least one vote on the Council. Pro-utility unions get at least
one vote. NGO’s and consumer groups combined get at least one vote. There is no requirement that
NGO/consumer group(s) have any particular focus or expertise related to energy, climate, public
policy, or carbon sequestration.
A Technical Advisory Committee of at least seven academics will provide technical peer review. These
reports will be public information.
Section 1414. Functions and administration of the special funding program. – Page 96
The purpose of the carbon sequestration fund is to give money to commercial scale carbon
sequestration R&D projects that could result in the capture of carbon from at least 10 GW of
generation. This is actually a useless metric because it focuses on plant capacity instead of carbon
quantity, and because 10 GW is roughly 1% of total carbon-based US electric generating capacity. How
long the proposed technology is expected to capture carbon from at least 10 GW of generation is left
as an exercise for the reader.
No project designed to capture carbon from a generator smaller than 100 MW capacity is eligible.
Projects for generators over 300 MW capacity are guaranteed at least 80% of available funding.
Administrative overhead is limited to 5%.
Implementation details and actual results of any carbon sequestration efforts funded by this program
are a state secret for five years.
‘‘Clean Air Act, Part G, Title VII, Section 794. Commercial deployment of carbon capture and
permanent sequestration technologies.
This program diverts up to 5,664 Mt of carbon emission credits between 2017 and 2050 (roughly 5%
of all carbon credits available in that period) to provide additional carbon emission credits and cash
bonuses to new coal and pet-coke powerplants that install carbon capture and sequestration.
794(a) – Definitions
Carbon capture and permanent sequestration – defined by US DOE, but must include both
permanent geological sequestration, and conversion of carbon dioxide into a permanently
stable form.
Enhanced hydrocarbon recovery – carbon dioxide injection into an oil or gas well.
Qualifying electric generating unit – at least 50% coal or pet-coke fuel input, more than 200
MW capacity if new, CO2 from more than 200 MW capacity captured if retrofitted.
Qualifying industrial source – at least 50,000 tons/year of CO 2 , does not produce liquid
transportation fuels from solid feedstocks.
Treated generating capacity – the ratio of sequestration capacity to total plant capacity.
794(b) – Regulations
US DOE has two years to sort out how to give away bonus incentives for carbon sequestration.
794(c) –Eligibility
To get bonus incentives, a generator needs to capture and sequester at least 50% of the emissions
from a qualifying electric generating unit or qualifying industrial source, using carbon capture and
permanent sequestration. Pre-allocated sequestration emission allowances are available for the first
ten years of operation, and can be distributed in advance. Plants that are small, or that burn coal
seasonally, aren’t eligible for extra allowances.
The first 10 GW of qualifying electric generating unit capacity that implements capture and
sequestration gets a bonus calibrated to sequestration percentages, ranging from $50/ton at a 50%
capture rate to $96/ton at a 90%+ capture rate.
The second 10 GW of treated qualifying electric generating unit capacity that implements capture and
sequestration gets a bonus ranging from $50/ton at a 50% capture rate to $85/ton at a 90%+ capture
rate.
Money for the bonuses is derived from a carbon tax on revenues flowing from the cap-and-trade
program. Bonuses are in real 2010 dollars, and increase annually with inflation. US DOE can raise
bonus levels or add more future carbon allowances to sweeten the deal if it chooses to.
If the project is injecting CO2 for enhanced hydrocarbon recovery, the size of the bonus is limited to
the project cost net of what a standard well enhanced recovery operation would have cost.
Because this section sets a fixed, real, cash payment, it is effectively a tax on available carbon
allocation credits. It is not completely clear that the source of this money is the carbon credit
allocation pool set aside for promoting carbon sequestration.
Bonus allowances will be priced by multiple reverse auctions for different classes of projects in
multiple tranches of 10 GW or less, held at least annually. As with Phase I, the bonus will be set on a
sliding scale based on the net percentage of carbon captured by a given project. US DOE can choose to
devise a different distribution methodology if they prefer.
Because this section establishes a nominal cash payment, it is effectively a tax on available carbon
allocation credits. It is not completely clear that the source of this money is the carbon credit
allocation pool set aside for promoting carbon sequestration.
New plants permitted from 2015 through 2019 don’t get sequestration bonus allowances if they do
not include 50%+ sequestration at initial operation.
In practice, this section will require state governments to commit, in advance, to pay for any new
powerplants requesting eligibility certification.
If an owner does not ask for eligibility certification, US DOE will determine eligibility when commercial
operations begin.
Sequestration allocations are reserved on a first-come, first-served basis. Up to 70% of first tier and
50% of second tier Phase I allocations may be provided in advance, borrowing from future allocation
years as needed. Advance allocations can cover 100% of the cost of carbon capture and sequestration.
Cost estimates are provided by the powerplant owner.
794(i) –Limitations
72 GW of cumulative capacity is eligible for sequestration bonuses. This means that as little as 3% of
the total capacity of current US fossil-based electric generating plants would have emissions
sequestered under this strategy. Any remaining carbon credits in the sequestration pool are released
once this threshold is reached.
Section 1432. Carbon capture and sequestration deployment studies. – Page 168
‘‘Clean Air Act, Part G, Title VII, Section 789. Carbon capture and sequestration deployment studies.
789(a) –Limitations
The Comptroller General shall conduct a study of carbon capture and sequestration by 2033, or within
a year of the exhaustion of the sequestration allowance pool outlined in Section 1431. The
sequestration allowance pool can be replenished by up to 2.5% of total available annual carbon
allowances in a given year, beginning in 2035. New credits will be taken from the Universal Trust Fund
carbon credit allocation pool.
800 –Definitions
Clean Air Act Title VII definitions apply, except for the definition of a stationary source.
Powerplants permitted between 2009 and 2019 must reduce net carbon emissions by at least 50%
after 2020, or four years after an highly unlikely determination of widely available carbon control
technology before 2015.
Pre-2009 coal and pet-coke powerplants are exempt from carbon performance standards. Seasonal
coal/pet-coke burners appear to be exempt as well.
If carbon sequestration isn’t widely available by 2017, the US DOE and Congress can slip the deadline
to 2022.
Existing powerplants that derive 85%+ of heat input from coal or pet-coke are eligible for investment
tax credits and accelerated depreciation.
the effect that emerging Federal regulation for non-greenhouse pollutants might have of
powerplant fleet de-carbonization,
The study will propose tax credits and bonus carbon credit allocations to bribe grandfathered plants
to voluntarily reduce carbon intensity or shut down.
Subtitle D—Renewable Energy and Energy Efficiency
Section 1601. Renewable energy and energy efficiency. – Page 187
Section 1602. Rural energy savings program.
‘‘Section 729. Compliance for transportation fuels and refined petroleum products.
‘‘Section 4r. Registration for regulated greenhouse gas market participants and compliance entities.
Section 2410. Greenhouse gas instrument trading organizations.
Subtitle F—Miscellaneous
Section 2501. Miscellaneous.
PART II—TRANSPORTATION
PART III—AGRICULTURE
Section 4151. Definitions.
Section 4152. Carbon conservation program.
Section 4153. Carbon Conservation Fund.