Prominent among these policies are those promoting the capture and direct sequestration of carbon dioxide (CO 2 ) from manmade sources such as electric power plants and manufacturing facilities. Carbon capture and sequestration (CCS) is a three-part process involving a CO 2 source facility, a long-term CO 2 sequestration site, and an intermediate mode of CO 2 transportation—typically pipelines. Divergent views on CO 2 pipeline requirements introduce significant uncertainty into overall CCS cost estimates and may complicate the federal role, if any, in CO 2 pipeline regulation. Nonetheless, there is an increasing perception in Congress that a national CCS program could require the construction of a substantial network of interstate CO 2 pipelines. The Carbon Dioxide Pipeline Study Act of 2007 (S. 2144), introduced by Senator Norm Coleman and nine cosponsors on October 4, 2007, would require the Secretary of Energy to study the feasibility of constructing and operating such a network of CO 2 pipelines. 110-140 ), signed by President Bush, as amended, on December 19, 2007, requires the Secretary of the Interior to recommend legislation to clarify the appropriate framework for issuing CO 2 pipeline rights-of-way on public land (Sec. This report examines key uncertainties in CO 2 pipeline requirements for CCS by contrasting hypothetical pipeline scenarios in one region of the United States. Variability of CO2 Pipeline Costs

The cost of CO 2 transportation is a function of pipeline length (among other factors), which in turn is determined by the location of sequestration sites relative to CO 2 sources. The scenarios in this report illustrate how different assumptions about sequestration site viability in the MRCSP region can lead to a 20-fold difference in CO 2 pipeline lengths and, therefore, similarly large differences in capital costs. From the perspective of individual power plants, or other CO 2 sources, highly variable costs for CO 2 pipelines may have more immediate ramifications. If CO 2 pipeline costs for specific regions reach hundreds, or even tens, of millions of dollars per plant, then power companies may have difficulty securing the capital financing or regulatory approval needed to construct or retrofit fossil fuel-powered plants in these regions. The state-by-state siting approval process for CO 2 pipelines may be complex and protracted, and may face public opposition, especially in populated or environmentally sensitive areas. Since transporting CO 2 to distant locations can impose significant additional costs to a facility's carbon control infrastructure, facility owners may seek regulatory approval for as many sequestration sites as possible and near to as many facilities as possible. Because CO 2 pipeline requirements in a CCS scheme are driven by the relative locations of CO 2 sources and sequestration sites, identification and validation of such sites must explicitly account for CO 2 pipeline costs if the economics of those sites are to be fully understood. If CCS moves from pilot projects to widespread implementation, government agencies and private companies may face challenges in identifying, permitting, developing, and monitoring the large number of localized sequestration reservoirs that may be proposed. One particular concern among some stakeholders is that high CO 2 transportation costs could increase electricity prices in "sequestration-poor" regions relative to regions able to sequester CO 2 more locally. However, even as viable sequestration reservoirs are being identified, it is unclear which CO 2 source facilities will have access to them, under what time frame, and under what conditions. Given the potential size of a national CO 2 pipeline network, many billions of dollars of capital investment may be affected by policy decisions made today.
Congress is considering policies promoting the capture and sequestration of carbon dioxide (CO2) from sources such as electric power plants. Carbon capture and sequestration (CCS) is a process involving a CO2 source facility, a long-term CO2 sequestration site, and CO2 pipelines. There is an increasing perception in Congress that a national CCS program could require the construction of a substantial network of interstate CO2 pipelines. However, divergent views on CO2 pipeline requirements introduce significant uncertainty into overall CCS cost estimates and may complicate the federal role, if any, in CO2 pipeline development. S. 2144 and S. 2191 would require the Secretary of Energy to study the feasibility of constructing and operating such a network of pipelines. S. 2323 would require carbon sequestration projects to evaluate the most cost-efficient ways to integrate CO2 sequestration, capture, and transportation. P.L. 110-140, signed by President Bush on December 19, 2007, requires the Secretary of the Interior to recommend legislation to clarify the issuance of CO2 pipeline rights-of-way on public land.
The cost of CO2 transportation is a function of pipeline length and other factors. This report examines key uncertainties in CO2 pipeline requirements for CCS by contrasting hypothetical pipeline scenarios for 11 major coal-fired power plants in the Midwest Regional Carbon Sequestration Partnership region. The scenarios illustrate how different assumptions about sequestration site viability can lead to a 20-fold difference in CO2 pipeline lengths, and, therefore, similarly large differences in capital costs. From the perspective of individual power plants, or other CO2 sources, variable costs for CO2 pipelines may have significant ramifications. If CO2 pipeline costs for specific regions reach tens, or even hundreds, of millions of dollars per plant, then power companies may have difficulty securing the capital financing or regulatory approval needed to construct or retrofit fossil fuel-powered plants in these regions. High CO2 transportation costs also could increase electricity prices in "sequestration-poor" regions relative to regions able to sequester CO2 more locally.
As CO2 pipelines get longer, the state-by-state siting approval process may become complex and protracted, and may face public opposition. Because CO2 pipeline requirements in a CCS scheme are driven by the relative locations of CO2 sources and sequestration sites, identification and validation of such sites must explicitly account for CO2 pipeline costs if the economics of those sites are to be fully understood. Since transporting CO2 to distant locations can impose significant additional costs to a facility's carbon control infrastructure, facility owners may seek regulatory approval for as many sequestration sites as possible and near to as many facilities as possible. If CCS moves to widespread implementation, government agencies and private companies may face challenges in identifying, permitting, developing, and monitoring the large number of localized sequestration reservoirs that may be proposed. However, even as viable sequestration reservoirs are being identified, it is unclear which CO2 source facilities will have access to them, under what time frame, and under what conditions. Given the potential size of a national CO2 pipelines network, many billions of dollars of capital investment may be affected by policy decisions made today.