113 S2287 IS: Carbon Capture and Sequestration Deployment Act of 2014
U.S. Senate
2014-05-05
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.
This Act may be cited as the
Carbon Capture and Sequestration Deployment Act of 2014
.
<enum>I</enum>
<header>Carbon Capture and Sequestration Innovation Program</header>
<section id="ID5F17376E053D464EBA56BEB618D5E971">
<enum>101.</enum>
<header>Partnerships for
carbon capture and sequestration</header>
<subsection id="ID5FF8572A349A400A80BF2C7FAAAD4972">
<enum>(a)</enum>
<header>Establishment
of program</header>
<paragraph id="IDBDC1643921A445F69B588C6C5BCC161E">
<enum>(1)</enum>
<header>In
general</header>
<text>Not later than 1 year after the date of enactment of this
Act, the Secretary of Energy (referred to in this Act as the
<quote>Secretary</quote>) shall establish a cooperative industry-government
research and development program, in addition to and in cooperation with
the
carbon capture and sequestration research and development program of the
Office
of Fossil Energy, to demonstrate novel and innovative technologies—</text>
<subparagraph id="IDB1A173AFFB4244E6BD3008BF8A306048">
<enum>(A)</enum>
<text>to capture or
prevent carbon dioxide emissions from carbon-based fuels;</text>
</subparagraph><subparagraph id="IDE30E008ED56F4C1AA9346C5731233E41">
<enum>(B)</enum>
<text>to enable the
beneficial use of carbon dioxide; or</text>
</subparagraph><subparagraph id="IDE5C57DC1A7C44085BFACA434EB574384">
<enum>(C)</enum>
<text>to enable the
long-term storage of carbon dioxide.</text>
</subparagraph></paragraph><paragraph id="ID8599DC98E8B540FC97BD1DEA16BC43FB">
<enum>(2)</enum>
<header>Participation
of national laboratories and universities</header>
<text>The program—</text>
<subparagraph id="idE1B92A5E16EC4760B29E9DE9BCEF2D71">
<enum>(A)</enum>
<text>shall include the
participation of the National Energy Technology Laboratory; and</text>
</subparagraph><subparagraph id="id93F976F23A004F1CB4D1CFB3FE4252FB">
<enum>(B)</enum>
<text>may include the
participation of other National Laboratories, institutions of higher
education,
and other appropriate entities.</text>
</subparagraph></paragraph></subsection><subsection id="ID901760B848424E7C8EB35C332FA89092">
<enum>(b)</enum>
<header>Cost
sharing</header>
<text>For purposes of developing and demonstrating the
technologies or approaches referred to in subsection (a)(1)—</text>
<paragraph id="idC35AD1D74F544303BBC2D67B5709BE9C">
<enum>(1)</enum>
<text>the Secretary
shall provide at least 80 percent of the cost of the development projects;
and</text>
</paragraph><paragraph id="id7E5B9E2388F44B499ECF205C551B590A">
<enum>(2)</enum>
<text>the industry
participant shall provide not more than 20 percent of the cost of the
development projects.</text>
</paragraph></subsection><subsection id="ID0DC175E84E094CA5933C8F482C6AD0EC">
<enum>(c)</enum>
<header>Authorization
of appropriations</header>
<text>There are authorized to be appropriated to the
Secretary to carry out this section—</text>
<paragraph id="IDF48409DCAA494D5BADA89181489E3CD8">
<enum>(1)</enum>
<text>$110,000,000 for
each of fiscal years 2015 through 2019;</text>
</paragraph><paragraph id="ID0C28D75338EE4B2AAEEA3FCCE3801313">
<enum>(2)</enum>
<text>$60,000,000 for
each of fiscal years 2020 through 2024; and</text>
</paragraph><paragraph id="ID117284C3411C41C9841611C496CF84AC">
<enum>(3)</enum>
<text>$30,000,000 for
each of fiscal years 2025 through 2029.</text>
</paragraph></subsection></section><section id="IDC315B79ED1D94688917760EFB2F7401D">
<enum>102.</enum>
<header>Annual
Department of Energy assessment</header>
<subsection id="ID9DFFE47A4A8542F182D6386A4607BB61">
<enum>(a)</enum>
<header>In
general</header>
<paragraph id="IDC92A435A68314A81ADC5C03D7C022D9E">
<enum>(1)</enum>
<header>Department of
Energy report</header>
<text>Not later than 1 year after the date of enactment
of this Act and annually thereafter until the Secretary determines that
technology preventing the emission of, capturing, transporting,
permanently
storing or sequestering, or putting to beneficial use carbon dioxide is
available to the commercial marketplace, the Secretary shall—</text>
<subparagraph id="id78B62BFBB99F40D3AD370048CE7567C0">
<enum>(A)</enum>
<text>conduct an
assessment in accordance with subsection (b) of the existing Federal
programs
supporting the technology; and</text>
</subparagraph><subparagraph id="idA47A9042BB07426587C381D7DD248710">
<enum>(B)</enum>
<text>submit to the
appropriate authorizing and appropriating committees of Congress a report
on
the results of the assessment.</text>
</subparagraph></paragraph><paragraph id="ID72D761CFDF58423B8FEF02585E287DA8">
<enum>(2)</enum>
<header>Government
Accountability Office review</header>
<text>Not later than 1 year after the
first report is provided to the appropriate authorizing and appropriating
committees of Congress under paragraph (1)(B) and subsequently as needed
until
technology preventing the emission of, capturing, transporting,
permanently
storing or sequestering, and putting to beneficial use carbon dioxide is
available to the commercial marketplace, the Comptroller General of the
United
States shall conduct a review of the report described in paragraph (1)(C)
in
accordance with subsection (c).</text>
</paragraph></subsection><subsection id="ID61626949FD434C26A66267C57C4BD3B0">
<enum>(b)</enum>
<header>Department of
Energy report requirements</header>
<text>The Secretary shall include in the
report required under subsection (a)(1)(B)—</text>
<paragraph id="ID9FD26AE775A64A7BAB26FDB714E4E932">
<enum>(1)</enum>
<text>a detailed
description of the existing programs, including each major program area,
that
conduct or support research, development, demonstration, and deployment of
technology—</text>
<subparagraph id="ID8B66DD48D0F34D9697E3DF83FD26044C">
<enum>(A)</enum>
<text>to prevent the
emission of carbon dioxide or to capture carbon dioxide from sources,
including
fossil fuel-based power plants;</text>
</subparagraph><subparagraph id="IDFBA2182C592B45428A7349FD5105A164">
<enum>(B)</enum>
<text>to transport
carbon dioxide;</text>
</subparagraph><subparagraph id="ID07A38B7591C84B189D8FC475D4FB15D7">
<enum>(C)</enum>
<text>to store or
sequester captured carbon dioxide permanently; or</text>
</subparagraph><subparagraph id="ID7E465CCED77246BEA350D631414D8528">
<enum>(D)</enum>
<text>to put captured
carbon dioxide to beneficial use;</text>
</subparagraph></paragraph><paragraph id="ID5B8F4B407FD741C68000F6F9F4BA80AC">
<enum>(2)</enum>
<text>an assessment,
based on Federal Government laboratory research experience, available
industry
research experience, and such other data and information as the Secretary
considers useful and appropriate, to determine whether each major program
area
and principal projects within the areas described in paragraph (1) are
designed
to, and will advance fundamental knowledge or achieve significant
technical
advancement and materially improve the technology base to effectively
address
the prevention of carbon dioxide emissions or capture of carbon dioxide or
the
transport, permanent storage, or beneficial use of captured carbon
dioxide;
and</text>
</paragraph><paragraph id="ID46B5B5DF2B2C480AAA7B73BA94643778">
<enum>(3)</enum>
<text>an assessment of
the estimated timeframe and costs of the Secretary necessary to
reasonably
conclude that technology will be available to the commercial
marketplace.</text>
</paragraph></subsection><subsection id="IDBD12F42D6F1D453D9C051068C4551A0B">
<enum>(c)</enum>
<header>Government
Accountability Office review requirements</header>
<text>The Comptroller General
of the United States shall include in the review required under subsection
(a)(2)—</text>
<paragraph id="IDAA8A8EBF84434E5DB96F3696ABA19C0D">
<enum>(1)</enum>
<text>an analysis of
the estimated timeframes and costs of the Secretary, as reported pursuant
to
subsection (b)(3);</text>
</paragraph><paragraph id="ID4D2D6FBD00B1413EBEAFB55E5EB4DD31">
<enum>(2)</enum>
<text>any
recommendations that the Comptroller General of the United States
considers
appropriate and useful to improve the likelihood of achieving
technological
advancements to mitigate carbon dioxide emissions or to expedite the
availability of carbon capture and sequestration technology for the
commercial
marketplace;</text>
</paragraph><paragraph id="ID4B129EF45AFD40BF8D24A00AF7BB9F5A">
<enum>(3)</enum>
<text>an assessment of
any legal or regulatory impediment by any Federal agency or department
that has
arisen in relation to the deployment of carbon capture and storage
technology,
including any delays in the permitting of the technology or the
construction or
operation of any facility; and</text>
</paragraph><paragraph id="ID6F9DF3A9A6964D46B535F52E70BAA292">
<enum>(4)</enum>
<text>any other
analyses the Comptroller General of the United States considers necessary
or
appropriate.</text>
</paragraph></subsection><subsection id="ID605F0EF251814533A644C71DF6BFB8F3">
<enum>(d)</enum>
<header>Budget request
report</header>
<text>In the budget requests for each of fiscal years 2016
through 2030, the President shall include in the budget request of the
Secretary for the Fossil Energy Program a report that assesses—</text>
<paragraph id="ID09EB1D5F550B42C7B4AAA6657834797E">
<enum>(1)</enum>
<text>the
progress of the Secretary in implementing the recommendations of the
Comptroller General of the United States and compares the estimated costs
of
completing implementation of those recommendations to the requested budget
levels; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID41D5AD8A658646B9BFEAFB91A9303A96">
<enum>(2)</enum>
<text>the progress made for the preceding fiscal year toward
achieving
the goals of the program for which funding is requested.</text>
</paragraph></subsection></section>
<enum>II</enum>
<header>Carbon dioxide sequestration credit</header>
<section id="id7E4F7842D4CC4FF69821DDEDCB48FB77">
<enum>201.</enum>
<header>Modifications to carbon
dioxide sequestration credit</header>
<subsection id="id7FFFB599CC4146B6A063D07598D2096D">
<enum>(a)</enum>
<header>Allocation and
certification of credit</header>
<paragraph id="idCB3B28A834654B60858B6C308276953C">
<enum>(1)</enum>
<header>In
general</header>
<text display-inline="yes-display-inline">Subsection (e) of
<external-xref legal-doc="usc" parsable-cite="usc/26/45Q">section 45Q</external-xref> of the Internal Revenue Code of 1986 is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idD01A0FBFA04544BD8A8B4506D9D1BFAF" style="OLC">
<subsection id="idAEAD6E441D3B491F86BCF9A82425848E">
<enum>(e)</enum>
<header>Limitation</header>
<paragraph id="id08C4848FD43B4B94AA7A1E610155284D">
<enum>(1)</enum>
<header>Allocation
limitation</header>
<text>No credit shall be allowed under subsection (a) with
respect to qualified carbon dioxide captured by carbon capture
equipment at a
qualified facility for the amount of qualified carbon dioxide
captured by such
carbon capture equipment in excess of—</text>
<subparagraph id="id7456C3A492F34BC18D1CEF7FCC0AEF0D">
<enum>(A)</enum>
<text>the portion of
the national limitation allocated with respect to such carbon
capture equipment
under subsection (f), over</text>
</subparagraph><subparagraph id="idD1F2CEB3B43B4E4D82C803F1872EB467">
<enum>(B)</enum>
<text>the amount of
qualified carbon dioxide captured by such carbon capture equipment
during
periods before August 1, 2015, for which a credit under subsection
(a) was allowed.</text>
</subparagraph></paragraph><paragraph id="idFF7EAFDB6EE740F3A2F6896E7B9DF4DB">
<enum>(2)</enum>
<header>National
limitation</header>
<text>For purposes of paragraph (1)(A), the national
limitation is the excess of—</text>
<subparagraph id="id9BCE575568BF404FBCEB3DE91F6FED4C">
<enum>(A)</enum>
<text>75,000,000 metric
tons of qualified carbon dioxide, over</text>
</subparagraph><subparagraph id="id605F3B05B237450FBA21908F0A595D44">
<enum>(B)</enum>
<text>the number of
metric tons of qualified carbon dioxide captured before August 1,
2015, for
which a credit under subsection (a) was
allowed.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id062FEFDEF09C4D1F8E6371F124B861E5">
<enum>(2)</enum>
<header>Allocation and
certification</header>
<text>Section 45Q of such Code is amended by adding at
the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="id8D5E933FCD6C4A86ACBA989A4040EDAB" style="OLC">
<subsection id="id92954ec0f1af4751a7b44a74845fb64a">
<enum>(f)</enum>
<header>Allocation for
and certification of carbon capture projects</header>
<paragraph id="ida35caf7aae7a47e0bc0dc7caf69c654a">
<enum>(1)</enum>
<header>Establishment
of procedures</header>
<text>Not later than July 1, 2015, the Secretary shall
establish, by regulation, processes and procedures—</text>
<subparagraph id="idEBB17972BD77468995528F2DC3180ADD">
<enum>(A)</enum>
<text>for allocating
the national limitation under subsection (e)(2) to projects for
placing carbon
capture equipment in service at qualified facilities, and</text>
</subparagraph><subparagraph id="idDA27B45134D4465989ECF10338269EF0">
<enum>(B)</enum>
<text>for certifying
projects for which an allocation has been made under subparagraph
(A).</text>
</subparagraph></paragraph><paragraph id="id870DFBF74696484B85375484EAFFD36F">
<enum>(2)</enum>
<header>Allocations</header>
<subparagraph id="ida0066c7a8dc3418183b784809fe052bd">
<enum>(A)</enum>
<header>Application</header>
<text>Each
applicant for an allocation under this subsection shall submit an
application
to the Secretary under such terms and conditions as are established
by the
Secretary in regulations.</text>
</subparagraph><subparagraph id="id61e1b7ed882e479f9f2cdd626b1a4956">
<enum>(B)</enum>
<header>Priority</header>
<text>The
Secretary shall rank applications received under subparagraph (A)
in the
following order:</text>
<clause id="iddcf69e5b89944f0f8154a28bd7e5e45f">
<enum>(i)</enum>
<text>Applicants with
applications received by the Secretary on an earlier date shall be
given higher
priority than applicants with applications received on a later
date. For
purposes of this clause, any application received before the date
that is 30
days after the procedures and processes described in paragraph (1)
are
established shall be considered to have been received on such date.</text>
</clause><clause id="id0167da31e1ba4a5cb928cdec1eefca03">
<enum>(ii)</enum>
<text>In the case of
applications received on the same date, those applicants
concurrently applying
for certification shall be given higher priority.</text>
</clause><clause id="id35c3141c24064f51a0d918534026ef6e">
<enum>(iii)</enum>
<text>In the case of
applications received on the same date and concurrently applying
for
certification, those projects with the earlier date by which
construction
commenced shall be given higher priority.</text>
</clause></subparagraph><subparagraph id="id52BC0DDB0CCD456082B2388F07567F4D">
<enum>(C)</enum>
<header>Allocation to
applicants</header>
<text>Subject to subparagraph (D), the Secretary shall
allocate tonnage to each applicant—</text>
<clause id="idEC5543CB330340CDA1440F4EE531FD12">
<enum>(i)</enum>
<text>based on the
amount requested on the application, and</text>
</clause><clause id="idCC81278DDD5945EA80FD81429475CB78">
<enum>(ii)</enum>
<text>in order of the
rank of the application under subparagraph (B),</text>
</clause><continuation-text continuation-text-level="subparagraph">until
the amount of tonnage available under this section is exhausted.
Projects for
which no or a partial allocation is made shall retain their ranking
and shall
be eligible to receive an allocation of tonnage previously
allocated that is
forfeited or recaptured.</continuation-text></subparagraph><subparagraph id="id3D561F7298084A1194DCCC40F37C384B">
<enum>(D)</enum>
<header>Limitation</header>
<text>The
Secretary may not allocate to any project more than the lesser of—</text>
<clause id="id02125A1AC9C4424AA980B59A4574099D">
<enum>(i)</enum>
<text>the number of
metric tons of qualified carbon dioxide projected to be captured at
the
qualified facility under the project during the 10-year period
beginning on the
date on which such project is placed in service,</text>
</clause><clause id="idE5C3650E50CE40C4921A152EB5ABDBBE">
<enum>(ii)</enum>
<text>the number of
metric tons of qualified carbon dioxide projected to be captured at
the
qualified facility under the project—</text>
<subclause id="id01092F63E3A947B08CD38D088CFB65EC">
<enum>(I)</enum>
<text>which are subject
to a written, binding contract for disposal in secure geological
storage
(whether or not used as a tertiary injectant), or</text>
</subclause><subclause id="idE07F1AB8D1EE4E82B60F5A770B6414C8">
<enum>(II)</enum>
<text>for which there
is a plan for such disposal by the applicant, or</text>
</subclause></clause><clause id="id9811042872B947CD987961116DCFDB1E">
<enum>(iii)</enum>
<text>15,000,000
metric tons of qualified carbon dioxide.</text>
</clause></subparagraph><subparagraph id="id0B8A04A253F544DF98CE069E2F125F23">
<enum>(E)</enum>
<header>Reduction for
prior credits</header>
<text>The amount of any allocation under subparagraph (C)
to any project shall be reduced by the number of metric tons of
carbon dioxide
captured by the carbon capture equipment with respect to such
project before
August 1, 2015, for which a credit was allowed under subsection
(a).</text>
</subparagraph></paragraph><paragraph id="idf9209db8e7d74b0aa9e2eb422a26ceaa">
<enum>(3)</enum>
<header>Certification</header>
<subparagraph id="idace2e1584143485a8e3ec43e737e898a">
<enum>(A)</enum>
<header>In
general</header>
<text>No credit shall be allowed under subsection (a) with
respect to any project for using carbon capture equipment to
capture qualified
carbon dioxide at a qualified facility before the date on which
such project is
certified under this paragraph.</text>
</subparagraph><subparagraph id="id7EDF5E713C7545FEBE2E042D8804FAAB">
<enum>(B)</enum>
<header>Application for
certification</header>
<text>Each project which is allocated a portion of the
national limitation shall submit an application for certification
to the
Secretary containing such information as the Secretary may require.
Such
application shall be submitted—</text>
<clause id="id526E98BF182B46B1A8A1E343D1CE9F9C">
<enum>(i)</enum>
<text>not later
than—</text>
<subclause id="idCA00C5ADCC8E4BA2AB0ADDAFAD3AB075">
<enum>(I)</enum>
<text>6 months after
the date on which such project receives an allocation, and</text>
</subclause><subclause id="id11B674B4438745C380226ED8EA75331E">
<enum>(II)</enum>
<text>30 days after
the later of the date on which the regulations, processes, and
procedures are
established under paragraph (1) or the construction start date, and</text>
</subclause></clause><clause id="id73E179DC0B0A48DCB104228E7507036E">
<enum>(ii)</enum>
<text>not earlier than
the construction start date.</text>
</clause><continuation-text continuation-text-level="subparagraph">For
purposes of this subparagraph, the term <term>construction start date</term>
means the earlier of the first date on which physical work on the
project of a
significant nature is undertaken or the date by which 5 percent or
more of the
total cost of the project has been spent.</continuation-text></subparagraph><subparagraph id="idcb2fcf63b8944d55a566b07b825451d6">
<enum>(C)</enum>
<header>Revocation of
certification</header>
<clause id="id9BFE4AC6FC2E40A6A360EC2A6EB7EA46">
<enum>(i)</enum>
<header>Materially
inaccurate representations</header>
<text>The Secretary may revoke a
certification under this paragraph if the Secretary determines that
an
applicant has made a materially inaccurate representation with
respect to the
project.</text>
</clause><clause id="ide8a171c6f68e44bf87d3eeba1e826bbc">
<enum>(ii)</enum>
<header>Failure to
timely place equipment in service</header>
<text>A certification under this
paragraph shall be revoked in any case in which carbon capture
equipment with
respect to the project is not placed in service—</text>
<subclause id="id22fc11bfa0254cdfa110bdfb03de0286">
<enum>(I)</enum>
<text>before the date
which is 5 years after the date on which the allocation was issued,
in the case
of a new industrial facility, or</text>
</subclause><subclause id="idee69f0bd74d44e7e87d4631b16b7bee2">
<enum>(II)</enum>
<text>before the date
which is 3 years after the date on which the allocation was issued,
in the case
of a modification of an existing industrial facility.</text>
</subclause></clause></subparagraph><subparagraph id="id8B6DD79B5C284E4697A635627E9E1D0B">
<enum>(D)</enum>
<header>Reallocation</header>
<text>In
any case—</text>
<clause id="id5AAD56C7A4C64ADCAC9560BECA57EAFF">
<enum>(i)</enum>
<text>in which a
certification is revoked under subparagraph (C), or</text>
</clause><clause id="idEF2E9CEB06EB48AC8128EAF24C62108D">
<enum>(ii)</enum>
<text>in which a
taxpayer to whom an allocation is made under paragraph (2) fails to
obtain
certification for a project under this paragraph,</text>
</clause><continuation-text continuation-text-level="subparagraph">the
amount of national limitation which was allocated to such project
under
paragraph (2) shall be reallocated under such rules as established
by the
Secretary under regulations.</continuation-text></subparagraph></paragraph><paragraph id="id7e52ea65bdd54c65af270e43ccdf1356">
<enum>(4)</enum>
<header>Public
disclosure</header>
<subparagraph id="idC8CC632DA8AE4FB8980172BC12E21195">
<enum>(A)</enum>
<header>In
general</header>
<text>The Secretary shall, within 30 days of making any
allocation, certification, revocation, or change in the ranking of
projects,
publicly disclose the amount of such allocation, a description of
the project
for which such allocation, certification, or revocation was made,
and the
change in the ranking of projects, as the case may be.</text>
</subparagraph><subparagraph id="id53E86830F439466CAE73092037243460">
<enum>(B)</enum>
<header>Annual
report</header>
<text>The Secretary shall issue an annual report summarizing
credits allocated and available for
allocation.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idBC68D31F24F94B03A64987AD86229E43">
<enum>(3)</enum>
<header>Conforming
amendments</header>
<subparagraph id="id6DD8CDCA41CE4B889F9970BDAFA43175">
<enum>(A)</enum>
<text>Paragraph (2) of
section 45Q(c) of such Code is amended by inserting <quote>which is part of a
project which is certified under subsection (f)(3)</quote> after <quote>carbon
capture equipment</quote>.</text>
</subparagraph><subparagraph id="id8B7C5C5EB7524A649A7F32B1595E5D0D">
<enum>(B)</enum>
<text>Paragraph (3) of
section 45Q(c) of such Code is amended by striking <quote>which</quote> and
inserting <quote>at which such carbon capture equipment</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="id3FC873AC73094EAABEBBFD12445E4CF4">
<enum>(b)</enum>
<header>10-Year credit
limitation</header>
<text><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q(a)</external-xref> of the Internal Revenue Code of 1986 is
amended—</text>
<paragraph commented="no" id="idA441C19254654913B09BD4DD6CCE592C">
<enum>(1)</enum>
<text>in paragraph
(1)(A), by inserting <quote>during the 10-year period beginning on the later of
the date on which the carbon capture equipment described in subsection
(c)(1)
is placed in service or the date on which the project with respect to such
carbon capture equipment was certified under subsection (f)(3)</quote> after
<quote>qualified facility</quote>, and</text>
</paragraph><paragraph commented="no" id="idD327E10BD6F04CDF980A7DBF80CBB9D4">
<enum>(2)</enum>
<text>in paragraph
(2)(A), by inserting <quote>during the 10-year period beginning on the later of
the date on which the carbon capture equipment described in subsection
(c)(1)
is placed in service or the date on which the project with respect to such
carbon capture equipment was certified under subsection (f)(3)</quote> after
<quote>qualified facility</quote>.</text>
</paragraph></subsection><subsection id="id686D4C024C974E69AF5DFE4FC960BF78">
<enum>(c)</enum>
<header>Definition of
carbon capture equipment</header>
<text>Section 45Q(d) of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id08A741533E7B4FF7BD6897BBB2D7ED4F" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id3A4357023FF0456D9E0185523938FB73">
<enum>(8)</enum>
<header>Carbon capture
equipment</header>
<text>The term <term>carbon capture equipment</term> means
equipment to capture and pressurize qualified carbon
dioxide.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id4A3C27925B3B49B4BE4574C93359298E">
<enum>(d)</enum>
<header>Credit allowed
to taxpayer performing carbon capture</header>
<paragraph id="idA390FA68617346D2B25CE6F42AB17B02">
<enum>(1)</enum>
<header>In
general</header>
<text>Paragraph (5) of section 45Q(d) of the Internal Revenue
Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idC24B9532BB2046DCB182D2145BA24651" style="OLC">
<paragraph id="id8e0e4945a6104da1a0ef6053ee236b3f">
<enum>(5)</enum>
<header>Person to whom
credit is allowable</header>
<subparagraph id="idF5CB668F5D7E453F9704390A75057FB1">
<enum>(A)</enum>
<header>In
general</header>
<text>Except as provided in subparagraph (B) or in regulations
prescribed by the Secretary, any credit under this section shall be
allowed to
the taxpayer who—</text>
<clause id="idFC588412B3A6453891C2D37926953B95">
<enum>(i)</enum>
<text>captures the
qualified carbon dioxide, and</text>
</clause><clause id="idB61D44814615477D8F29EFBB3CDADACA">
<enum>(ii)</enum>
<text>through contract
or otherwise, disposes of the qualified carbon dioxide in a manner
meeting the
requirements of paragraph (1)(B) or (2)(C) of subsection (a), as
the case may
be.</text>
</clause></subparagraph><subparagraph id="id807F476106364048ADF4E4FADF400458">
<enum>(B)</enum>
<header>Election to
allow credit to person disposing carbon dioxide</header>
<text>If the person
described in subparagraph (A) makes an election under this
subparagraph in such
manner as the Secretary may prescribe by regulations, the credit
under this
section—</text>
<clause id="idBC37815112464FE2BCD0C12671E1E29E">
<enum>(i)</enum>
<text>shall be
allowable to the person that disposes of qualified carbon dioxide
in a manner
meeting the requirements of paragraph (1)(B) or (2)(C) of
subsection (a), as
the case may be, and</text>
</clause><clause id="id5C1542BD8A4B441380FCB50957BA3423">
<enum>(ii)</enum>
<text>shall not be
allowable to the person described in subparagraph
(A).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id5CA5D0BF9E594447A243DA9569216B22">
<enum>(2)</enum>
<header>Conforming
amendments</header>
<subparagraph id="id227AC5431ECF4E9FB3300200C9077195">
<enum>(A)</enum>
<text>Section 45Q(a) of
such Code is amended by striking <quote>by the taxpayer</quote> each place it
appears in paragraphs (1)(B), (2)(B), and (2)(C).</text>
</subparagraph><subparagraph id="id793C9BD76DCA48188B12150A8D91FC07">
<enum>(B)</enum>
<text>Section 45Q(c) of
such Code, as amended by subsection (a), is amended by striking paragraph
(1)
and redesignating paragraphs (2) and (3) as paragraphs (1) and (2),
respectively.</text>
</subparagraph></paragraph></subsection><subsection id="id28DC0B3939614CDC991664741FE02CD3">
<enum>(e)</enum>
<header>Rules relating
To credit recapture</header>
<text>Paragraph (6) of section 45Q(d) of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new
sentence: <quote>Notwithstanding section 7805(b), any regulation issued
pursuant to this paragraph shall apply only with respect to qualified
carbon
dioxide captured or disposed of after the date on which such regulation is
filed with the Federal Register.</quote>.</text>
</subsection><subsection id="id999190F808C6403186210965761CA1F0">
<enum>(f)</enum>
<header>Effective
date</header>
<text>The amendments made by this section shall apply to carbon
dioxide captured after July 31, 2015.</text>
</subsection></section>
<enum>III</enum>
<header>Incentives for carbon capture and sequestration projects</header>
<section id="id1562B8F069824BB29F5E7363F70A0FB2">
<enum>301.</enum>
<header>Federal financial incentives</header>
<subsection id="iddc61456a4ca74d22b808b98f98230ea4">
<enum>(a)</enum>
<header>Eligible projects</header>
<text>Section 1703 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16513">42 U.S.C. 16513</external-xref>) is amended—</text>
<paragraph id="id5330CE6C8A744339B0E99AC4BF0F0C83">
<enum>(1)</enum>
<text>in subsection (b)(5), by inserting <quote>and projects described in subsection (f)</quote> before the period at the end; and</text>
</paragraph><paragraph id="id16EB7E5F497547478783A381EA56642A">
<enum>(2)</enum>
<text>by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id0310AB9D33F94B3E89740B689222D58C" style="OLC">
<subsection id="id7D83670F89F14FF89CBFEB3BFCFE74DB">
<enum>(f)</enum>
<header>Carbon capture and sequestration projects</header>
<paragraph id="id8817317B07EA4BDCA9D26150826B08FF">
<enum>(1)</enum>
<header>Definitions</header>
<text>In this subsection:</text>
<subparagraph id="id32a9cdd8d7574eb7b9376a3e8c76d72f">
<enum>(A)</enum>
<header>Commercial scale</header>
<text>The term <term>commercial scale</term> means, with respect to an electric generation unit, a unit that is designed—</text>
<clause id="id6567D3071A834129A48942099EDFAF48">
<enum>(i)</enum>
<text>to generate and sell electric power directly to consumers or for resale; and</text>
</clause><clause id="id3891AB0F39534A3B874979141047C03D">
<enum>(ii)</enum>
<text>with a carbon dioxide capture system having a useful life of not fewer than 15 years.</text>
</clause></subparagraph><subparagraph id="id08e9e8b6135945dc9ccdcd686a42444a">
<enum>(B)</enum>
<header>Eligible unit</header>
<text>The term <term>eligible unit</term> has the meaning given the term in <external-xref legal-doc="usc" parsable-cite="usc/26/84E">section 84E</external-xref> of the Internal Revenue Code of 1986.</text>
</subparagraph><subparagraph id="id28a3a44f45ee4ac68c594b19cf32e1ad">
<enum>(C)</enum>
<header>Permanent geologic storage site</header>
<text>The term <term>permanent geologic storage site</term> means a site that—</text>
<clause id="idD383B3A0E8964E2EA24C4D04D4F40E1E">
<enum>(i)</enum>
<text>the Secretary determines is capable of storing carbon dioxide; and</text>
</clause><clause id="idAF5189EB8EF14B2BA4D6D8A387E9153D">
<enum>(ii)</enum>
<text>is located in saline formations or other deep geologic storage structures.</text>
</clause></subparagraph></paragraph><paragraph id="idADF97D6317EC4896A843E4F1F3A0854F">
<enum>(2)</enum>
<header>Guarantees authorized</header>
<text>Notwithstanding subsection (a)(2), the Secretary may make guarantees in amounts totaling not more
than $20,000,000,000 for the following carbon
capture and sequestration projects:</text>
<subparagraph id="id72c49803a9304edfad616d7d871fda3e">
<enum>(A)</enum>
<text>The construction of new industrial facility units or commercial scale electric generation units
that are eligible units utilizing carbon capture and sequestration
technology.</text>
</subparagraph><subparagraph id="id72b3ff5f6b7a468b82988aca8affd9f5">
<enum>(B)</enum>
<text>The retrofit of existing industrial facility units or commercial scale electric generation units
that are eligible units providing for carbon capture and sequestration.</text>
</subparagraph><subparagraph id="id68d7e46845704109a210f6760bdf2e4a">
<enum>(C)</enum>
<text>The construction of carbon dioxide transmission pipelines to transport carbon dioxide from carbon
capture and sequestration facilities to—</text>
<clause id="id16C0106DC6CD4B4EB5B63AB6ABEB5C9F">
<enum>(i)</enum>
<text>sequestration sites; or</text>
</clause><clause id="id5F1AE9A1A7B64985A4C5A26CFCE86D61">
<enum>(ii)</enum>
<text>sites where the carbon dioxide will be used for hydrocarbon recovery.</text>
</clause></subparagraph></paragraph><paragraph id="id80cba00c8e55475995edddb28f8377b6">
<enum>(3)</enum>
<header>Certification of eligible units</header>
<text>A unit shall not be eligible to receive a guarantee under paragraph (2) unless the Secretary has
certified the unit pursuant to a certification process established by the
Secretary by rule.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id5ED2FA4ED29A4EC2A8E3082D4CB1BCF0">
<enum>(b)</enum>
<header>Additional authorization</header>
<text>Section 1704 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16514">42 U.S.C. 16514</external-xref>) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id38A2C472D4E04693A4736D9609783E9C" style="OLC">
<subsection id="id1B4D9FE16B9941728C7EC997A17D64E2">
<enum>(c)</enum>
<header>Additional authorization</header>
<text display-inline="yes-display-inline">In addition to other amounts made available under this section, there is authorized to be
appropriated such sums as are necessary to cover the credit loan subsidy
costs associated with the guarantees described in section 1703(f).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idf15e8240f3f54f25b812c1cc51fe7089">
<enum>(c)</enum>
<header>Tax credits</header>
<paragraph id="id9e23878b108747079684279ca331b9b2">
<enum>(1)</enum>
<header>In general</header>
<text>Subpart E of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended
by inserting after section 48D the following new section:</text>
<quoted-block display-inline="no-display-inline" id="idD7439D2CC83946C38A5482FCDC5C9F3B" style="OLC">
<section id="id86481e8fc14e4d6cba16d58baaca6332">
<enum>48E.</enum>
<header>Pioneer CCS facilities</header>
<subsection id="idF9A385105ECE43B4B8F9A8B7F50ADA52">
<enum>(a)</enum>
<header>Additional qualifying advanced coal project credit</header>
<text display-inline="yes-display-inline">For purposes of section 46, the qualifying advanced coal project credit for any taxable year shall
also include an additional amount equal to the applicable percentage (as
determined under subsection (c)) of the incremental
cost for carbon capture and sequestration systems for eligible units,
determined as follows:</text>
<paragraph id="idB48812C2B1D64F18AC148DCE89C402BB">
<enum>(1)</enum>
<text display-inline="yes-display-inline">For an eligible unit that is a new electric generation unit, the incremental costs shall be the
amount by which the costs incurred by the taxpayer for the unit exceed the
costs of construction of a comparable supercritical pulverized coal unit
without carbon capture and sequestration technology. To establish
incremental costs, the taxpayer shall obtain a certified report of a
qualified independent engineer estimating the differential construction
cost between the eligible unit and a comparably sized supercritical
pulverized coal unit without carbon capture and sequestration. The
independent engineer shall utilize cost estimates for supercritical
pulverized coal units available from Federal agencies, academia and/or the
private sector, appropriately adjusted for size, fuel source and location.
An engineering design of a hypothetical supercritical pulverized coal unit
shall not be required to establish the incremental costs.</text>
</paragraph><paragraph id="id33EFADAAAA084CF8B52FC2755A2CE69D">
<enum>(2)</enum>
<text display-inline="yes-display-inline">For an eligible unit that is a new industrial unit, the incremental costs shall be the amount by
which the costs incurred by the taxpayer for the unit exceed the costs of
construction of a comparable industrial unit without carbon capture and
sequestration.</text>
</paragraph><paragraph id="id35F65C5BC52046BC96682615D4EE4BB4">
<enum>(3)</enum>
<text display-inline="yes-display-inline">For an eligible unit that retrofits a carbon capture, transportation, and sequestration system on
an existing generation or industrial unit, the incremental cost shall be
the construction costs incurred by the taxpayer for the carbon capture and
sequestration system.</text>
</paragraph><paragraph id="idca4f0998668245f587f20a17cba67b56">
<enum>(4)</enum>
<text>The Secretary of Energy shall certify the amount of incremental cost for carbon capture and
sequestration systems for eligible units in each case, based on
appropriate information.</text>
</paragraph></subsection><subsection id="id3fdf756570474560b671efc796de9031">
<enum>(b)</enum>
<header>Eligible unit</header>
<text>For purposes of this section, the term <term>eligible unit</term> means an electric generation unit or industrial facility unit located in the United States that—</text>
<paragraph id="id00c640d1025f45888389532b22a962a0">
<enum>(1)</enum>
<text>uses coal or petroleum coke for at least 75 percent of the fuel used by the unit,</text>
</paragraph><paragraph id="id24172c0b994f4e4c8cb3afd24a70ceee">
<enum>(2)</enum>
<text>uses carbon capture technology to capture and sequester not less than 65 percent of the total
carbon dioxide emissions of the unit,</text>
</paragraph><paragraph id="id70e2ac0048bf49c8bdb3206f4eef8612">
<enum>(3)</enum>
<text>transports such captured carbon dioxide to a permanent geologic storage site in the United States
or to a site on the North American continent for use for hydrocarbon
recovery, and</text>
</paragraph><paragraph id="id07944f8f44c0495699584d95396f13eb">
<enum>(4)</enum>
<text>provides for the permanent storage of such carbon dioxide in such site.</text>
</paragraph></subsection><subsection id="id7a93b21693714bb4994419ca751cfea8">
<enum>(c)</enum>
<header>Applicable percentage</header><paragraph id="idABBB06FF060D491CACCD4141ABCF4F06"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a), the applicable percentage shall be the amount (expressed as a
percentage) equal to the sum of—</text><subparagraph id="idEFF07084667C443CB7794FF76C106E4F"><enum>(A)</enum><text>15 percent, and</text></subparagraph><subparagraph id="idD6ACF454CB0948BD8B0ED0291406FF81"><enum>(B)</enum><text>the amount (expressed as a percentage) which bears the same ratio to 15 percent as the captured
emissions percentage (as determined under paragraph (2)) bears to 35
percent.</text></subparagraph></paragraph><paragraph id="id3DE96D59DA084D968271E8473B93A040"><enum>(2)</enum><header>Carbon dioxide emissions captured</header><text>For purposes of paragraph (1), the captured emissions percentage shall be equal to—</text><subparagraph id="id4A52B74DD9C44631B96E9D103C9A2A20"><enum>(A)</enum><text>the percentage of total carbon dioxide emissions of the eligible unit that is captured and
sequestered, minus</text></subparagraph><subparagraph id="id4419041101D240AD93B235B9586DF22D"><enum>(B)</enum><text>65 percentage points.</text></subparagraph></paragraph></subsection><subsection id="id6B3B65659AE64C91B6F21854FFFEB0F4"><enum>(d)</enum><header>Election</header>
<text>No costs for which a credit has been provided under section 48A or section 48B shall be eligible
for a credit under this section.</text>
</subsection><subsection id="idC94D1AC9031E499FB1ACF3BA6190C8F2">
<enum>(e)</enum>
<header>Recapture</header>
<text>The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any unit that fails to attain or
maintain the requirements under subsection (b).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idcb3707c4d2a9439b85f9b3dc00f67679">
<enum>(2)</enum>
<header>Clerical amendment</header>
<text display-inline="yes-display-inline">The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended
by inserting after the item relating to section 48D the following new
item:</text>
<quoted-block display-inline="no-display-inline" id="id037BCCDB49AA4BDFBE2F63F2F0DD2F46" style="OLC">
<toc>
<toc-entry bold="off" level="section">48E. Pioneer CCS facilities.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id297b1958d9484baab4800bc7c13b40df">
<enum>(d)</enum>
<header>Effective date</header>
<text display-inline="yes-display-inline">The amendments made by this section shall apply with respect to—</text>
<paragraph id="idb09185283ad8498ab3310f639c88ff19">
<enum>(1)</enum>
<text>new facilities placed in service after December 31, 2014, and before January 1, 2026; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ida2f36d774e0e42fcadd1871f48c31d80"><enum>(2)</enum><text>the retrofit of existing facilities that commence operation with the retrofit after December 31,
2014, and before January 1, 2026.</text>
</paragraph></subsection></section>