Summary/Abstract
This report results from the research, study and collaboration of the State CO2-EOR Deployment Work Group, consisting of representatives from 14 states, leading private sector stakeholders and CO2-EOR experts. The report and its recommendations focus on CO2-EOR due to the ability to generate revenue to offset some of the cost of carbon capture through the sale of CO2 for oil production, and the potential to scale up CO2-EOR to play a meaningful role in national energy production and emissions reductions. The report also takes a detailed look at the current policy landscape and then evaluates and recommends several key federal and state policy options that will enhance the further commercial deployment of CO2-EOR. Some of the policy recommendations include: improving and expanding an existing tax credit for storage of captured CO2; deploying a mechanism to stabilize the price paid for CO2—and carbon capture project revenue—by removing volatility and investment risk associated with CO2 prices linked to oil prices; and offering tax-exempt bonds and master limited partnership status to provide project financing on better terms.