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              Congressional                                                     ____
          '.Research Service






Carbon Dioxide (C02) Pipeline Development:

Federal Initiatives



June  2, 2023


Carbon dioxide (CO2) pipelines are essential components of carbon capture and storage (CCS) systems
which are proposed to reduce atmospheric emissions of man-made CO2, a greenhouse gas. Approximately
5,000 miles of pipeline already carry CO2 in the United States, primarily linking natural CO2 sources to
oil fields where CO2 is used for enhanced oil recovery. However, a much larger pipeline network likely
will be needed to meet national goals for greenhouse gas reduction. Developers already are seeking
permits for new CO2 pipelines. Summit Carbon Solutions, Navigator CO2 Ventures, and Wolf Carbon
Solutions are developing multistate projects in the Upper Midwest which, collectively, would comprise
over 3,600 miles of new pipeline for carbon capture from ethanol plants. Along with other actions to
promote CCS, the federal government has been advancing initiatives to promote such CO2 pipeline
projects, as discussed below.

Safety   Regulation

The Pipelines and Hazardous Materials Safety Administration (PHMSA) within the Department of
Transportation (DOT) has statutory authority over CO2 pipeline safety. PHMSA has long regulated the
construction, operation and maintenance of CO2 pipelines (49 C.F.R. @§190, 195-199). However, a 2020
CO2 pipeline rupture in Satartia, MS, which required a local evacuation and caused 45 people to be
hospitalized, has prompted criticism from pipeline safety advocates that PHMSA's existing regulations for
CO2 pipelines are inadequate. Safety concerns also have given rise to siting opposition among some
affected landowners and advocacy groups. In response to these criticisms, and findings from its own
Satartia investigation, PHMSA announced on May 26, 2022, that it was initiating a rulemaking to update
its CO2 pipeline safety standards. The agency plans to publish a Notice of Proposed Rulemaking in June
2024, but has not set a date for a final rule. Some stakeholders have expressed concern that developers
may begin constructing new CO2 pipelines before a new rule is finalized.

Financial Support

The Infrastructure Investment and Jobs Act (IIJA, P.L. 117-58) Section 40304 established within the
Department of Energy (DOE) a Carbon Dioxide Transportation Infrastructure Finance and Innovation
                                                                Congressional Research Service
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