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Evaluating Impacts of the Inflation Reduction Act and Bipartisan Infrastructure Law on the U.S. Power System

The Inflation Reduction Act of 2022 (IRA) and the Infrastructure Investment and Jobs Act of 2021, commonly referred to as the 'Bipartisan Infrastructure Law (BIL),' collectively represent the largest commitment of the U.S. Federal Government to invest in the modernization and decarbonization of the U.S. energy system. The Congressional Budget Office (CBO) estimates that total support for the broad range of climate and clean energy programs, tax credits, and other incentives authorized through the two laws will exceed $430 billion from 2022 through 2031 (CRS 2022; CBO 2021, 2022). While the climate and clean energy provisions are numerous and have the potential to impact all aspects of the U.S. energy system from fuel and electricity production to final consumption in industry, transportation, and buildings, the provisions relevant to the electricity sector - in particular the suite of tax credits for clean generation, storage, and carbon dioxide ( CO 2 ) capture and storage - are expected to be some of the most consequential in terms of emissions reduction and clean energy deployment (Larsen et al. 2022; Jenkins, Mayfield, et al. 2022; Mahajan et al. 2022; Zhao et al. 2022). In this report, we detail the methods and results of a study estimating the potential impacts of key provisions of IRA and BIL on the contiguous U.S. power sector from present day through 2030. The analysis employs an advanced power system planning model, the Regional Energy Deployment System (ReEDS), to evaluate how major provisions from both laws impact investment in and operation of utility-scale generation, storage, and transmission, and, in turn, how those changes impact power system costs, emissions, and climate and health damages. While not exhaustive in capturing every provision, the analysis estimates the possible scale of power-sector impacts that could result from the modeled provisions in IRA and BIL. The study is structured around two scenarios to evaluate the potential impacts of both laws on the power sector: 1) No New Policy: A counter-factual scenario that reflects all Federal and state policies enacted as of September 2022, with exception to IRA and BIL, and assumes load growth consistent with the Energy Information Administration's Annual Energy Outlook 2022 (AEO22) Reference case (EIA 2022a); 2) IRA-BIL: A scenario reflecting all Federal and state policies enacted as of September 2022, including key IRA and BIL provisions, most notably the investment and production tax credits for zero-carbon emitting electricity generation and storage (ITC and PTC), the tax credit for CO 2 capture and storage (45Q), and the tax credit for existing nuclear plants (described further in Section 2.3). To account for the impacts of IRA and BIL on electrification, assumes increased load growth consistent with a scaled version of the Medium Electrification scenario from the Electrification Futures Study (Mai et al. 2018). These scenarios are simulated across seven sets of assumptions with varying projected future electricity market conditions, including technology costs and performance, natural gas prices, and the degree of availability, feasibility, and cost of development of renewable resources, electricity transmission, and CO 2 pipeline, injection, and storage infrastructure. In addition, we simulate two sensitivities on the 'policy' treatment in which we vary key assumptions pertaining to the realized value of the clean electricity ITC and PTC: 1) the cost of monetization of tax credits, and 2) the level of bonus crediting realized by project developers. We demonstrate that IRA and BIL have the collective potential to drive substantial growth in clean electricity by 2030, while reducing costs for consumers, mitigating climate change, and decreasing the human health impacts of power sector emissions. However, we also demonstrate that if expected cost improvements of clean technologies are not realized and/or constraints on deployment driven by factors such as supply-chain challenges, regulatory hurdles, and the social acceptability of energy infrastructure development limit the rate of clean energy and associated infrastructure deployment (such as transmission), then the share of clean generation achieved and the associated emissions benefits realized may be substantively reduced.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Refining Principal Stress Measurements in Reservoir Underburden in Regions of Induced Seismicity through Seismological Tools, Laboratory Experiments - Final Technical Report

This project developed methodologies to measure the in-situ principal stress in the deep subsurface through use of multiple independent, but complementary, seismic methods, laboratory verification, and development of theoretical frameworks. By leveraging existing regional and local datasets we developed, tested, and refined a set of diagnostic tools for determining the in-situ stress state with reduced uncertainty at and below reservoir depths (1.5-6 km). A set of novel tools was produced that are scale independent, such that their utility is equivalent on regional, field scale, and near borehole monitoring of principal stresses in reservoir underburden for carbon storage projects. During a 4-year Department of Energy (DOE) and Southern Company funded project, carried out by the Electric Power Research Institute (EPRI), Lawrence Livermore National Laboratory (LLNL), the University of Oklahoma (OU), and the U.S. Geological Survey (USGS), the project team developed methodologies to measure the far-field in-situ principal stress in the deep subsurface, leveraging induced seismicity data from waste-water disposal projects. These methodologies consisted in the use of well-established and technically advanced seismic processing methods, such as virtual seismometer method-moment tensor (VSM-MT) and shear wave splitting (SWS), that are adept at recovering the stress orientation and certain components of the stress tensor. These methods were applied to robust seismicity catalogs created with matched filter techniques near sites of active fluid disposal—a proxy for carbon storage sites where such datasets are more limited. Estimates of the stress orientation made with seismic processing tools were considered along with laboratory acoustic emission experiments conducted on rock samples from the region of interest. Stress orientations in the studied region do not vary significantly across distances of ~100 km, nor are they found to rotate through time as a consequence of local wastewater disposal, as previously speculated. Finally, the project team investigated the trade-offs among the different seismic methods and evaluated the range of uncertainty that is generated with these methodologies, which led to a practical use and refinement of the VSM-MT technique when it is applied to field datasets. Understanding the trade-offs between these different methods highlighted the potential benefits of improved quantification of uncertainties on stress field estimations.

58 GEOSCIENCES↗

SMR Carbon Capture Design and TEA (Final Technical Report)

This project sought to select a process configuration, select a commercial technology offering, and complete an initial engineering design of a carbon capture system that recovers and ultimately would store ~190,000 tonnes per year of CO 2 with 90%+ carbon capture efficiency from an existing steam methane reforming (SMR) plant at Phillips 66’s Rodeo Refinery.

03 NATURAL GAS↗

EV SALaD 2023 Demonstration: Best Practices and Mitigations for Protecting EVSE Infrastructure

The Electric Vehicle Secure Architecture Laboratory Demonstration (EV SALaD) program is a demonstration of cybersecurity best practices for high-power electric vehicle (EV) charging infrastructure led by Idaho National Laboratory (INL), in collaboration with other DOE National Laboratories participating in the EVs at Scale Consortium.a Sandia National Laboratories (SNL) and Pacific Northwest National Laboratory (PNNL) participated in the first 2-year (FY22-23) demonstration cycle for EV SALaD. This report documents the FY23 demonstration, the second in a series of demonstrations and collaborations in deploying and operating cybersecure EV charging infrastructure. It includes a summary of improvements from the FY22 demonstration, technical analysis of the FY23 demonstration, how the research demonstrates cyber-physical and cybersecurity best practices for high-power EV charging infrastructure, and related impacts to national and energy security. For EV SALaD, the FY22 demonstration focused on the detection, ranking, and prioritization of anomalous events for high-power EV charging. The FY23 demonstration additionally included the demonstration of cybersecurity best practices, which included protection and mitigation solutions to prevent, respond, and recover from anomalous events. During the demonstrations, the multi-lab EV SALaD team conducted a Test Effect Payload (TEP)b evaluation on extreme fast charger (XFC) hardware equipped with Cerberus, a detection and response solution, to demonstrate anomaly detection and mitigation cybersecurity best practices against cyber-enabled events.

33 ADVANCED PROPULSION SYSTEMS↗

Upscaling Methods Applied to a Fine-Scale Reservoir Model

This study was conducted as part of the Southwest Regional Partnership on Carbon Sequestration (SWP) project to evaluate how upscaling fine-scale simulation models to coarse-scale simulation models impacted the results. The focus was on the Farnsworth Unit (FWU) and its Morrow' B' Sandstone reservoir, specifically the west half of the field. Due to data limitations and the geologic characteristics of the surrounding area, the upscaling was limited to the west half of the FWU rather than a broader basinscale model. The primary aim was to explore how upscaling impacts numerical simulation models, particularly regarding CO 2 -enhanced oil recovery (EOR) and storage capacity predictions. Upscaling was necessary to reduce computational demands when transitioning from high-resolution geological models to coarser grids, as large-scale simulations with finer grids can be computationally prohibitive. This study expands on previous work by the SWP to understand how additional upscaling, applied to already fine-scale numerical simulation models, affects reservoir performance simulations (Ampomah, Balch, & Grigg, 2015). This is key to understanding how loss of resolution can affect coarsescale model results that may be used for large sensitivity analyses, uncertainty quantifications, and training data for machine learning applications.

02 PETROLEUM↗

MRCI Subtask 2.2: Precambrian Basement Structure, Faulting, and Stress Final Technical Summary Report

Subtask 2.2 was largely focused on compiling information about the Precambrian basement rock that underlies the MRCI region. Understanding the nature and extent of the basement rock is important in order to mitigate certain risks associated with CO2 injection. For example, this information will provide a resource for defining areas where a storage reservoir is in direct contact with the Precambrian or indirectly via a fault. Also, an understanding of the stress field in addition to fault orientations will help determine which faults may be subject to reactivation under increased pore pressures.

Battelle,CCS,CCUS,Carbon storage,MRCI,Midwest Regi↗

MRCI Task 5: Promoting Regional Technology Transfer Final Summary Report

The goal of the MRCI Task 5 – Promoting Regional Technology Transfer is to leverage existing and new relationships with critical CCUS stakeholders (national and international stakeholders include state geological surveys, universities, industrial partners and advisors, energy production and utilization companies, and NGOs) within the regional initiative and globally and become a key resource for CCUS information, acceptance, and development. Work completed under Task 5 is categorized through four actions: • Promote acceleration of CCUS deployment by providing general support for commercialization and technology transfer • Compile and communicate information from previous tasks to interested stakeholders • Engage with federal and state governments, industry consortia and NGOs • Engage with global institutions

CCUS,Midwest,Midwest Regional Carbon Initiative,Mi↗

Transformational Sorbent System for Post-Combustion Carbon Capture (Final Report)

As part of this DOE Contract (Transformational Sorbent System for Post-Combustion Carbon Capture, DE-FE0031734),TDA Research Inc. developed a transformational sorbent system for post combustion CO 2 capture process that captures more than 95% of CO 2 emissions from a coal fired power plant, recovering CO 2 at 95% purity with a cost of CO 2 capture significantly lower than with amine-based system (~$30 per tonne (MT) of CO 2 captured). TDA’s transformational sorbent system uses a novel, highly stable, high-capacity metal organic framework (MOF) based CO 2 sorbent in a new vacuum/concentration swing adsorption (VCSA) process that allows us to use high efficiency vacuum pumps with a low auxiliary load. A pulverized coal fired power plant equipped with TDA’s transformational sorbent system for post combustion CO 2 capture is expected to efficiently produce electricity with a low Cost of Electricity (COE) and capture greater than 95% of the CO 2 from the power plant exhaust.

01 COAL, LIGNITE, AND PEAT↗

Optimizing Alabama’s CO 2 Storage in Shelby County (Project OASIS) Milestone 3.4 Report: Complete Well Design and Drilling Plan

We are pleased to present the following materials, which serve as confirmation of the successful completion of Task 3.4 Complete Well Design and Drilling Plan Milestone, in accordance with the Project OASIS Project Management Plan. More specifically, the following provides confirmation of a team-wide call that was held on September 25, 2023, to discuss the CarbonSAFE Phase II drilling program, the well drilling prognosis, and an overview of risks associated with the program by category as well as probability and impact. A comprehensive Site-Specific Drilling Report will be provided to DOE-NETL 30 days after completion of drilling activities.

20 FOSSIL-FUELED POWER PLANTS↗

Optimizing Alabama’s CO 2 Storage in Shelby County (Project OASIS) Milestone 6.0: Evaluation of Class VI Readiness

Introduction. Project OASIS is approximately 30 miles southeast of Birmingham, Alabama, and approximately 5 miles north-northwest of Alabama Power Company's Plant Gaston. Geologically, the Project area is in the Alabama fold and thrust belt province. This work builds on the initiatives of the Southeast Regional Carbon Utilization and Storage Acceleration Partnership (SECARB-USA, DE-FE0031830) that identified nearly 500 million metric tonnes of CO 2 emitted on an annual basis that is not collocated with prospective storage geology (the Coastal Plain of the Southeastern US in this context). This observation suggests costly investments in connective infrastructure (e.g., pipelines) or exploratory well drilling campaigns to identify CO 2 storage opportunities in under explored areas. While not traditionally thought of for saline storage, these studies suggest that storage prospects in the Valley and Ridge Province occur in relatively flat lying structural panels between thrust faults. For the Project OASIS region, available geologic studies related to hydrocarbon exploration suggest that Cambro-Ordovician carbonates and Cambrian clastic units offer multiple potential storage intervals, and that regional confining systems are present, such as the tectonically thickened Floyd-Parkwood Shale. The Project OASIS surface property is owned by a timber and land stewardship company, The Westervelt Company, Inc., who worked with the Project Team to select and prepare adequate sites for geologic assessment. The purpose of drilling the Westover Stratigraphic Test Well #2 was to collect geologic data to model the feasibility of commercial scale CO 2 injection and storage in an under explored region. This initiative benefits the regions emitters as the data generated from this study can inform their own internal decision making. The field program included geological and geophysical evaluations, reservoir engineering analyses, and risk assessments. This report evaluates existing data, as well as a variety of modeling scenarios to evaluate project readiness. Importantly, the impact of this study is not limited to Alabama as there are numerous large emitters throughout Appalachia, in similar geologic settings, contemplating their decarbonization options.

20 FOSSIL-FUELED POWER PLANTS↗

CarbonSAFE Phase II: Optimizing Alabama’s CO 2 Storage in Shelby County, Alabama (Project OASIS), Milestone M3 - Site Specific Drilling Report

The Phase II Storage Complex Feasibility project, entitled "Optimizing Alabama's CO 2 Storage in Shelby County, Alabama (Project OASIS)," is a part of the DOE/NETL's CarbonSAFE initiative. The Project is managed by the Southern States Energy Board (SSEB), and includes participation from Advanced Resources International, Inc. (ARI), Crescent Resource Innovation, Southern Company, Alabama A&M University, Auburn University, and Oklahoma State University. Project OASIS is working to establish the foundation for a commercial-scale geologic storage complex for CO 2 captured from Plant Gaston (home of the National Carbon Capture Center) and surrounding industrial sources of CO 2 located in Shelby County, Alabama. The Project objectives are: • Demonstrate that the subsurface saline formations at the storage complex can store commercial volumes of CO 2 safely and permanently. • Develop a comprehensive Community Benefits Plan. • Develop the infrastructure framework for a CO 2 storage hub. • Develop a rigorous risk registry and to conduct a comprehensive risk assessment. • Develop a monitoring plan. • Develop a comprehensive site characterization plan to support an Underground Injection Control Class VI Permit in a future Phase III program. • Evaluate the commercial viability of the project. Project OASIS is about 30 miles southeast of Birmingham, Alabama within a geologic province called the Valley and Ridge (Figure 1.1). The Valley and Ridge Province comprises a sequence of Paleozoic carbonate and clastic rocks that underwent structural deformation during the Alleghanian Orogeny. Storage prospects occur in relatively flat lying structural panels located between thrust faults. Available geologic studies related to hydrocarbon exploration suggest that Cambro-Ordovician carbonates and Cambrian clastic units offer multiple potential storage intervals, and that regional confining systems are present, such as the tectonically thickened Floyd-Parkwood Shale. The surface property is owned by a timber and land stewardship company, The Westervelt Company, Inc., who worked with the Project Team to select and prepare adequate sites for geologic assessment. The purpose of drilling the Westover Stratigraphic Test Well #2 was to collect geologic data to model the feasibility of commercial scale CO 2 injection and storage. This includes geological and geophysical evaluations, reservoir engineering analyses, and risk assessments.

20 FOSSIL-FUELED POWER PLANTS↗

Optimizing Alabama’s CO 2 Storage in Shelby County (Project OASIS): Task 4.0 Deliverable – Geologic Analysis Report

Project OASIS (Optimizing Alabama’s CO 2 Storage in Shelby County) is a geologic and reservoir characterization study designed to evaluate deep saline formations for potential long-term carbon dioxide (CO 2 ) storage in central Alabama near the National Carbon Capture Center (NCCC) and Alabama Power’s Plant Gaston. The project centers on the Cambro-Ordovician Knox Group and underlying strata such as the Conasauga and Rome Formations, which were investigated through the drilling of two stratigraphic test wells to obtain electronic well logs, core, and sidewall core plugs. These data provide direct measurements of porosity, permeability, and lithologic variability critical for reservoir characterization. Complementing the well program, a limited 2D seismic survey was acquired to help select the site for Westover #2, and a more regional Seismic Exchange (SEI) seismic survey was licensed and interpreted to define structural and stratigraphic frameworks in a new Static Earth Model (SEM), map reservoir continuity, and identify potential sealing intervals. Integrated with geologic and reservoir modeling, these datasets form the basis for evaluating storage capacity, injectivity, and containment.

20 FOSSIL-FUELED POWER PLANTS↗

Optimizing Alabama’s CO 2 Storage in Shelby County (Project OASIS), Task 5.0 Deliverable: Infrastructure Assessment Report

The “Optimizing Alabama’s CO 2 Storage in Shelby County: Project OASIS” CarbonSAFE Phase II Project seeks to build on regional data sets that demonstrate that the subsurface within Shelby County, Alabama has the potential to store commercial volumes of CO 2 safely, permanently, and economically. This work builds on the initiatives of the Southeast Regional Carbon Utilization and Storage Acceleration Partnership (SECARB-USA, DE-FE0031830) that identified nearly 500 million metric tonnes of CO 2 emitted on an annual basis that is not collocated with prospective storage geology (the Coastal Plain of the Southeastern U.S. in this context). This observation suggests costly investments in connective infrastructure (e.g., pipelines) or exploratory well drilling campaigns to identify CO 2 storage opportunities in under explored areas. While not traditionally thought of for saline storage, these studies suggest that storage prospects in the Valley and Ridge Province occur in relatively flat lying structural panels between thrust faults. For the Project OASIS region, available geologic studies related to hydrocarbon exploration suggest that Cambro-Ordovician carbonates and Cambrian clastic units offer multiple potential storage intervals, and that regional confining systems are present, such as the tectonically thickened Floyd-Parkwood Shale. The Project OASIS surface property is owned by a timber and land stewardship company, The Westervelt Company, Inc., who worked with the Project Team to select and prepare adequate sites for geologic assessment.

20 FOSSIL-FUELED POWER PLANTS↗

Optimizing Alabama’s CO 2 Storage in Shelby County (Project OASIS): Task 6.0 Deliverable – CarbonSAFE Phase III Readiness

The OASIS CarbonSAFE Phase II Project OASIS (Optimizing Alabama’s CO 2 Storage in Shelby County) is a geologic and reservoir characterization study designed to evaluate deep saline formations for potential long-term carbon dioxide (CO 2 ) storage in central Alabama near the National Carbon Capture Center (NCCC) and Alabama Power’s Plant Gaston. The project centers on understanding the potential of the Cambro-Ordovician Knox Group and underlying strata such as the Conasauga and Rome Formations for geologic storage of CO 2 . These formations were investigated as part of SECARB-USA (DE-FE0031830) and Project OASIS through the drilling of two stratigraphic test wells to obtain electronic well logs, core, and sidewall core plugs. These data provide direct measurements of porosity, permeability, and lithologic variability critical for reservoir characterization. Complementing the well program, a limited 2D seismic survey was conducted to help select the site for Westover #2 as part of SECARB-USA (DE-FE0031830), and a more regional Seismic Exchange (SEI) seismic survey was licensed and interpreted to define structural and stratigraphic frameworks in a new Static Earth Model (SEM), map reservoir continuity, and to identify potential sealing intervals. Integrated with geologic and reservoir modeling, these datasets form the basis for evaluating storage capacity, injectivity, and containment. While this document endeavors to provide readers with a high-level overview of Project OASIS activities and its suitability for subsequent CarbonSAFE Phases, such as a Phase III effort. Other project deliverables and milestones will provide more details on individual subjects.

20 FOSSIL-FUELED POWER PLANTS↗

Optimizing Alabama’s CO 2 Storage in Shelby County (Project OASIS) - Deliverable Task 7: Risk Assessment

The “Optimizing Alabama’s CO 2 Storage in Shelby County: Project OASIS” CarbonSAFE Phase II Project seeks to build on regional data sets that demonstrate that the subsurface within Shelby County, Alabama has the potential to store commercial volumes of CO 2 safely, permanently, and economically. The primary target CO 2 Storage Complex is the deep Ketona Dolomite located within a 140 square mile area of the Valley and Ridge Region of Alabama. This deep saline reservoir is beneath a confining system encompassing at least 6,500 ft of shales and other low permeability sediments. Project OASIS drilled a deep stratigraphic test well to confirm the geological properties of the confining system and storage reservoir(s) within the Storage Complex. The geological data was incorporated into numerical models to establish the areal extent of the CO 2 plume and help design the storage site and its monitoring system. The project is managed by the Southern States Energy Board (SSEB), an interstate compact organization consisting of governors and state legislative leaders from sixteen southern states, Puerto Rico, and the U.S. Virgin Islands, as well as an appointee by the President of the United States. The organizational compact provides it with access to state government organizations and legislatures. The Board also maintains an Associate Members program comprised of energy resource companies, utilities, trade groups, academic R&D science and technology experts and energy consultants. Further, the SSEB staff is experienced in managing and coordinating complex energy and environmental programs, from research programs to full-scale design and demonstrations of new and innovative technologies. Project OASIS is a public-private partnership of six entities with multiple principal investigators (PIs). SSEB’s Lead PI and Co-PI are responsible for all aspects of project performance in accordance with the DOE-NETL Cooperative Agreement. SSEB has issued subgrants to Advanced Resources International, Inc., Alabama A&M University, Auburn University, Crescent Resource Innovation, and Oklahoma State University. Advanced Resources International, Inc., issued subgrants to Baker Hughes and Loudon Technical Services for field services

20 FOSSIL-FUELED POWER PLANTS↗

Optimizing Alabama’s CO 2 Storage in Shelby County (Project OASIS): Task 8 Deliverable 8.0 - Commercialization Plan

The “Optimizing Alabama’s CO 2 Storage in Shelby County: Project OASIS” CarbonSAFE Phase II Project seeks to build on regional data sets that demonstrate that the subsurface within Shelby County, Alabama has the potential to store commercial volumes of CO 2 safely, permanently, and economically. This work builds on the initiatives of the Southeast Regional Carbon Utilization and Storage Acceleration Partnership (SECARB-USA, DE-FE0031830) that identified nearly 500 million metric tonnes of CO 2 emitted on an annual basis from industrial facilities that are not collocated with prospective storage geology (i.e., the Coastal Plain of the Southeastern U.S. in this context). This observation suggests costly investments in connective infrastructure (e.g., pipelines) or exploratory well drilling campaigns are required to identify CO 2 storage opportunities in under-developed areas. While not traditionally thought of for saline storage, these studies suggest that storage prospects in the Valley and Ridge Province of the Appalachian Fold and Thrust Belt occur in relatively flat lying structural panels between thrust faults. For the Project OASIS region, available geologic studies related to hydrocarbon exploration suggest that Cambro-Ordovician carbonates and Cambrian clastic units offer multiple potential storage intervals, and that regional confining systems are present, such as the tectonically thickened Floyd-Parkwood Shale.

20 FOSSIL-FUELED POWER PLANTS↗