Carbon Management Provisions in the Infrastructure Investments and Jobs Act

The Infrastructure Investments and Jobs Act (IIJA) allocates $12.1 billion toward carbon management, representing the largest single investment in the sector since 1997. The funding is distributed across four primary areas: carbon capture, utilization & storage (CCUS) research, development, and demonstration (RD&D); carbon transport and storage infrastructure and permitting; carbon utilization market development; and carbon removal priorities. Key allocations include $3.5 billion for four regional direct air capture (DAC) hubs and $2.5 billion for the CO2 Storage Commercialization Program. The document notes that IIJA provides the necessary RD&D and infrastructure, while the proposed Build Back Better Act (BBBA) was intended to provide the market incentives via 45Q tax credit enhancements.

• The Infrastructure Investments and Jobs Act (IIJA) provides $12.1 billion for carbon management, which is the most significant single investment in these provisions since the Department of Energy began funding carbon capture research in 1997.
• Funding for CCUS Research, Development, and Demonstration (RD&D) includes $2.54 billion for carbon capture demonstration projects and $937 million for large-scale carbon capture pilot projects between FY22-FY25, plus $100 million for front end engineering and design (FEED) studies between FY22-FY26.
• Infrastructure and permitting provisions allocate $2.1 billion for low interest loans for shared CO2 transport infrastructure and $2.5 billion for the CO2 Storage Commercialization Program between FY22-FY26. Additionally, $25 million is allocated for EPA Class VI injection well permitting and $50 million for state primacy in administering the Underground Injection Control Program.
• Carbon removal and utilization efforts are funded through $3.5 billion for four regional direct air capture (DAC) hubs, $115 million for DAC prize competitions in FY22, and a $310 million grant program for state and local governments to use products derived from captured carbon oxides.

APA

Clean Air Task Force (n.d.). Carbon Management Provisions in the Infrastructure Investments and Jobs Act. https://cdn.catf.us/wp-content/uploads/2021/12/13104556/carbon-management-provisions-iija-1.pdf

Chicago

Clean Air Task Force. Carbon Management Provisions in the Infrastructure Investments and Jobs Act. n.d. https://cdn.catf.us/wp-content/uploads/2021/12/13104556/carbon-management-provisions-iija-1.pdf.

Wikipedia

{{cite report |author=Clean Air Task Force |title=Carbon Management Provisions in the Infrastructure Investments and Jobs Act |url=https://cdn.catf.us/wp-content/uploads/2021/12/13104556/carbon-management-provisions-iija-1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cleanairtaskforcendcarbon, author = {{Clean Air Task Force}}, title = {{Carbon Management Provisions in the Infrastructure Investments and Jobs Act}}, institution = {Clean Air Task Force}, url = {https://cdn.catf.us/wp-content/uploads/2021/12/13104556/carbon-management-provisions-iija-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }