Carbon Capture, Utilization and Storage (CCUS) technologies, which enable the “innovation not elimination” of fossil energy, is set to receive billions from the bipartisan infrastructure framework. Specifically, the infrastructure package increases authorization of appropriations for a variety of CCUS programs established by the Energy Act of 2020 last December, while also creating new ones. In total, the bill authorizes appropriators to spend $9.3 billion over the next five years, of which $8 billion is new. Together, the infrastructure package and the Energy Act of 2020 authorize $12.9 billion over the next five years for CCUS. For comparison, Congress appropriated roughly $1.2 billion for CCUS over the last five years.

Here’s what the infrastructure deal authorizes:

Sec. 40302. Carbon utilization program.

• A grant program for states/localities/public utilities to procure or use commercial or industrial CCUS products, originally created by the Energy Act of 2020
• Amends authorization of appropriation to $310,140,781 total for FY22-26

Sec. 40303. Carbon capture technology program.

• Adds a new “front-end engineering and design program for CO₂ transport infrastructure” to the carbon capture technology program created by the Energy Act of 2020
• Authorizes an additional $100M in total for the new front-end program for FY22-26

Sec. 40304. Carbon dioxide transportation infrastructure finance and innovation.

• Establishes a “carbon dioxide transportation infrastructure finance and innovation program” and provide projects with credit instrument (loan guarantee or secured loan) and/or a grant. Eligible projects must have at least $100 million in relevant expenses.
• Authorizes appropriations of $2.1B total for FY22-26

Sec. 40305. Carbon storage validation and testing.

• Establish a large-scale commercialization program to provide funding for projects at any stage of development
• $2.5B total for FY22-26

Sec. 40306. Secure geologic storage permitting.

• Geologic sequestration permitting program: injecting carbon dioxide into Class IV wells
• Authorizes $75 million total for FY22-26, $25M for EPA and $50M for state permitting program grants

Sec. 40308. Carbon removal.

• Establishes four Regional Direct Air Capture Hubs that has the capacity to capture, utilize, and/or sequester at least 1 million metric tons of carbon dioxide
• Authorizes $3.5 billion total for FY22-26

Sec. 41004. Carbon capture demonstration and pilot programs.

• Increases authorization of appropriation of large-scale pilot projects established by the Energy Act of 2020 to $937 million for FY2022-2026
• Increases authorization of appropriation of demonstration projects established by the Energy Act of 2020 to $2.537 billion for FY2022-2026

Sec. 41005. Direct air capture technologies prize competitions

• Re-authorizes $115 million for FY2022 for two prize competitions for new technology projects within the “Carbon Removal” program, following $115 million authorized for FY2021 in the Energy Act of 2020

Capturing carbon dioxide that is released in the air, and possibly utilizing it before storing it away sounds like a great idea at first. But in reality, CCUS is primarily used in oil fields, where captured carbon is injected into wells to extract more oil. Increasing fossil fuel production undermines the goal of decreasing overall carbon dioxide emissions from the air . The bottom line is CCUS is still a prohibitively expensive and unproven technology  Taxpayers have already spent billions on research and development, and now more money will be poured on a technology that big oil companies all seem to love because it essentially provides them another subsidy passing new costs and liabilities to taxpayers.

Apart from R&D, taxpayers will also lose $10 billion over the next 10 years in foregone revenues to the 45Q tax credit, which can be claimed by fossil fuel facilities for capturing and storing emitted carbon. Instead of providing generous funding and tax credits to fossil energy, pricing carbon may be the better way to incentivize the development of CCUS technology, which can also ensure that fossil fuel companies, not taxpayers, pay the bill for R&D.