Federal policy must create a new entity to manage and accelerate the development of storing carbon deep underground. Geologic sequestration utilities do not yet exist, but would function very much like the water and electric utilities that have operated for decades.
A geologic sequestration utility would be specialized and regulated, and would have one primary function: commercialize injection (and in some cases, transport) of CO2 into saline aquifers. It would manage and assume liability for CO2 disposal from power plants, manufacturers, and other stationary sources of CO2.
For these services, the utility would recover its cost in rates, along with a reasonable rate of return. Its purpose is to create certainty and reliability in developing geologic sequestration at a system-wide scale. It is not intended to compete with commercial operations, such as EOR, although it could conceivably help facilitate EOR through joint ventures.
Currently, federal policy is silent on the long-term care of and liability for CO2 that is injected into brine formations. This prevents development of commercial geologic sequestration sites. The US Senate is beginning to address this issue, through a bill proposed by Senators Casey and Enzi.
