http://www.reuters.com/article/2011/04/13/us-germany-carbon-storagebill-idUSTRE73C2F520110413

(Reuters) - Germany's government on Wednesday relaunched legislation to back development of the carbon capture and storage technology (CCS) needed for coal-fired power generation, the environment ministry said.

"The government today agreed a draft bill ... This created the pre-requisite for Germany's CCS-testing projects to attract EU funding," it said in a statement.
It said the draft laid the foundation for testing and demonstration efforts only and that wider introduction would not take place without consultations with citizens.
Key states that have hampered progress of the bill over the past few years were given concessions.
The northern states of Schleswig-Holstein and Lower Saxony will be able to rule on deployment of the technology, which enables coal generators to capture CO2 emissions and store them underground to help prevent climate change.
Citizens groups in the states have protested against the process, citing fears there could be uncontrollable leaks and that the CO2, which is noxious in high dosages, could impair the quality of drinking water.
Brandenburg state, which houses brown coal plants employing tens of thousands as well as CCS test installations operated by utility Vattenfall Europe, supports the legislation.
Vattenfall has applied for EU aid for a pilot plant in Jaenschwalde as the CCS technology is not yet mature enough for commercial use.
It can receive the money only if Germany manages to turn EU-wide CCS legislation into national law.
If passed by the lower house of parliament in July, where Chancellor Angela Merkel's coalition has a majority, the law would need to be approved by the upper house, which represents states and where opposition parties have gained the upper hand.
The ministry said it wanted the law to come into force in the autumn so that at least one CCS project could be realized in Germany out of 12 planned demonstration projects across the EU.
Energy industry group BDEW prior to the confirmation had praised the move, saying that Germany's rethink of nuclear energy in the wake of the Japan disaster showed that conventional power generation needed a long-term basis.
"The law is more than overdue," said BDEW director Hildegar Mueller in a statement, urging the states to support it.