Growing Carbon Capture Industry Spurs States to Set Guardrails

States used the first half of the year to create a flurry of rules of the road for the country’s growing carbon capture industry.

The 2024 legislative session has been one of the busiest to date for carbon capture lawmaking, said Sarah Grey, partner at Arnold & Porter. She attributes the wave of interest largely to federal tax incentives: Carbon capture and sequestration technology, which stores carbon underground instead of releasing it into the air, now makes financial sense to companies in a way it didn’t in the past, she said.

While only a handful of bills have crossed the ...