[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1933 Reported in House (RH)]






                                                 Union Calendar No. 188
110th CONGRESS
  1st Session
                                H. R. 1933

                          [Report No. 110-301]

 To amend the Energy Policy Act of 2005 to reauthorize and improve the 
  carbon capture and storage research, development, and demonstration 
      program of the Department of Energy, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 18, 2007

Mr. Udall of Colorado introduced the following bill; which was referred 
               to the Committee on Science and Technology

                             August 3, 2007

Additional sponsors: Mr. Salazar, Mr. Marshall, Mr. Schiff, Mr. Gordon, 
   Mr. Costello, Ms. McCollum of Minnesota, Mr. Hare, and Ms. Eddie 
                        Bernice Johnson of Texas

                             August 3, 2007

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on April 
                               18, 2007]

_______________________________________________________________________

                                 A BILL


 
 To amend the Energy Policy Act of 2005 to reauthorize and improve the 
  carbon capture and storage research, development, and demonstration 
      program of the Department of Energy, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Department of Energy Carbon Capture 
and Storage Research, Development, and Demonstration Act of 2007''.

SEC. 2. CARBON CAPTURE AND STORAGE RESEARCH, DEVELOPMENT, AND 
              DEMONSTRATION PROGRAM.

    (a) Amendments.--Section 963 of the Energy Policy Act of 2005 (42 
U.S.C. 16293) is amended--
            (1) in the section heading, by striking ``research and 
        development'' and inserting ``and storage research, 
        development, and demonstration'';
            (2) in subsection (a)--
                    (A) by striking ``research and development'' and 
                inserting ``and storage research, development, and 
                demonstration''; and
                    (B) by striking ``capture technologies on 
                combustion-based systems'' and inserting ``capture and 
                storage technologies related to electric power 
                generating systems'';
            (3) in subsection (b)--
                    (A) in paragraph (3), by striking ``and'' at the 
                end;
                    (B) in paragraph (4), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(5) to expedite and carry out large-scale testing of 
        carbon sequestration systems in a range of geological 
        formations that will provide information on the cost and 
        feasibility of deployment of sequestration technologies.''; and
            (4) by striking subsection (c) and inserting the following:
    ``(c) Programmatic Activities.--
            ``(1) Fundamental science and engineering research and 
        development and demonstration supporting carbon capture and 
        storage technologies.--
                    ``(A) In general.--The Secretary shall carry out 
                fundamental science and engineering research (including 
                laboratory-scale experiments, numeric modeling, and 
                simulations) to develop and document the performance of 
                new approaches to capture and store carbon dioxide, or 
                to learn how to use carbon dioxide in products to lead 
                to an overall reduction of carbon dioxide emissions.
                    ``(B) Program integration.--The Secretary shall 
                ensure that fundamental research carried out under this 
                paragraph is appropriately applied to energy technology 
                development activities and the field testing of carbon 
                sequestration and carbon use activities, including--
                            ``(i) development of new or advanced 
                        technologies for the capture of carbon dioxide;
                            ``(ii) development of new or advanced 
                        technologies that reduce the cost and increase 
                        the efficacy of the compression of carbon 
                        dioxide required for the storage of carbon 
                        dioxide;
                            ``(iii) modeling and simulation of 
                        geological sequestration field demonstrations;
                            ``(iv) quantitative assessment of risks 
                        relating to specific field sites for testing of 
                        sequestration technologies; and
                            ``(v) research and development of new and 
                        advanced technologies for carbon use, including 
                        recycling and reuse of carbon dioxide.
            ``(2) Field validation testing activities.--
                    ``(A) In general.--The Secretary shall promote, to 
                the maximum extent practicable, regional carbon 
                sequestration partnerships to conduct geologic 
                sequestration tests involving carbon dioxide injection 
                and monitoring, mitigation, and verification operations 
                in a variety of candidate geological settings, 
                including--
                            ``(i) operating oil and gas fields;
                            ``(ii) depleted oil and gas fields;
                            ``(iii) unmineable coal seams;
                            ``(iv) deep saline formations;
                            ``(v) deep geologic systems that may be 
                        used as engineered reservoirs to extract 
                        economical quantities of heat from geothermal 
                        resources of low permeability or porosity;
                            ``(vi) deep geologic systems containing 
                        basalt formations; and
                            ``(vii) high altitude terrain oil and gas 
                        fields.
                    ``(B) Objectives.--The objectives of tests 
                conducted under this paragraph shall be--
                            ``(i) to develop and validate geophysical 
                        tools, analysis, and modeling to monitor, 
                        predict, and verify carbon dioxide containment;
                            ``(ii) to validate modeling of geological 
                        formations;
                            ``(iii) to refine storage capacity 
                        estimated for particular geological formations;
                            ``(iv) to determine the fate of carbon 
                        dioxide concurrent with and following injection 
                        into geological formations;
                            ``(v) to develop and implement best 
                        practices for operations relating to, and 
                        monitoring of, injection and storage of carbon 
                        dioxide in geologic formations;
                            ``(vi) to assess and ensure the safety of 
                        operations related to geological storage of 
                        carbon dioxide;
                            ``(vii) to allow the Secretary to 
                        promulgate policies, procedures, requirements, 
                        and guidance to ensure that the objectives of 
                        this subparagraph are met in large-scale 
                        testing and deployment activities for carbon 
                        capture and storage that are funded by the 
                        Department of Energy; and
                            ``(viii) to support Environmental 
                        Protection Agency efforts, in consultation with 
                        other agencies, to develop a scientifically 
                        sound regulatory framework to enable 
                        commercial-scale sequestration operations while 
                        safeguarding human health and underground 
                        sources of drinking water.
            ``(3) Large-scale carbon dioxide sequestration testing.--
                    ``(A) In general.--The Secretary shall conduct not 
                less than 7 initial large-volume sequestration tests, 
                not including the FutureGen project, for geological 
                containment of carbon dioxide (at least 1 of which 
                shall be international in scope) to validate 
                information on the cost and feasibility of commercial 
                deployment of technologies for geological containment 
                of carbon dioxide.
                    ``(B) Diversity of formations to be studied.--In 
                selecting formations for study under this paragraph, 
                the Secretary shall consider a variety of geological 
                formations across the United States, and require 
                characterization and modeling of candidate formations, 
                as determined by the Secretary.
                    ``(C) Source of carbon dioxide for large-scale 
                sequestration demonstrations.--In the process of any 
                acquisition of carbon dioxide for sequestration 
                demonstrations under subparagraph (A), the Secretary 
                shall give preference to purchases of carbon dioxide 
                from industrial and coal-fired electric generation 
                facilities. To the extent feasible, the Secretary shall 
                prefer test projects from industrial and coal-fired 
                electric generation facilities that would facilitate 
                the creation of an integrated system of capture, 
                transportation and storage of carbon dioxide. Until 
                coal-fired electric generation facilities, either new 
                or existing, are operating with carbon dioxide capture 
                technologies, other industrial sources of carbon 
                dioxide should be pursued under this paragraph. The 
                preference provided for under this subparagraph shall 
                not delay the implementation of the large-scale 
                sequestration tests under this paragraph.
                    ``(D) Definition.--For purposes of this paragraph, 
                the term `large-scale' means the injection of more than 
                1,000,000 metric tons of carbon dioxide annually, or a 
                scale that demonstrably exceeds the necessary 
                thresholds in key geologic transients to validate the 
                ability continuously to inject quantities on the order 
                of several million metric tons of industrial carbon 
                dioxide annually for a large number of years.
            ``(4) Large-scale demonstration of carbon dioxide capture 
        technologies.--
                    ``(A) In general.--The Secretary shall carry out at 
                least 3 and no more than 5 demonstrations, that include 
                each of the technologies described in subparagraph (B), 
                for the large-scale capture of carbon dioxide from 
                industrial sources of carbon dioxide, at least 2 of 
                which are facilities that generate electric energy from 
                fossil fuels. Candidate facilities for other 
                demonstrations under this paragraph shall include 
                facilities that refine petroleum, manufacture iron or 
                steel, manufacture cement or cement clinker, 
                manufacture commodity chemicals, and ethanol and 
                fertilizer plants. Consideration may be given to 
                capture of carbon dioxide from industrial facilities 
                and electric generation carbon sources that are near 
                suitable geological reservoirs and could continue 
                sequestration. To ensure reduced carbon dioxide 
                emissions, the Secretary shall take necessary actions 
                to provide for the integration of the program under 
                this paragraph with the long-term carbon dioxide 
                sequestration demonstrations described in paragraph 
                (3). These actions should not delay implementation of 
                the large-scale sequestration tests authorized in 
                paragraph (3).
                    ``(B) Technologies.--The technologies referred to 
                in subparagraph (A) are precombustion capture, post-
                combustion capture, and oxycombustion.
                    ``(C) Scope of award.--An award under this 
                paragraph shall be only for the portion of the project 
                that carries out the large-scale capture (including 
                purification and compression) of carbon dioxide, as 
                well as the cost of transportation and injection of 
                carbon dioxide.
            ``(5) Preference in project selection from meritorious 
        proposals.--In making competitive awards under this subsection, 
        subject to the requirements of section 989, the Secretary shall 
        give preference to proposals from partnerships among 
        industrial, academic, and government entities.
            ``(6) Cost sharing.--Activities under this subsection shall 
        be considered research and development activities that are 
        subject to the cost-sharing requirements of section 988(b), 
        except that the Federal share of a project under paragraph (4) 
        shall not exceed 50 percent.
    ``(d) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to the Secretary for carrying out this section, other than 
        subsection (c)(3) and (4)--
                    ``(A) $100,000,000 for fiscal year 2008;
                    ``(B) $100,000,000 for fiscal year 2009;
                    ``(C) $100,000,000 for fiscal year 2010; and
                    ``(D) $100,000,000 for fiscal year 2011.
            ``(2) Sequestration.--There are authorized to be 
        appropriated to the Secretary for carrying out subsection 
        (c)(3)--
                    ``(A) $140,000,000 for fiscal year 2008;
                    ``(B) $140,000,000 for fiscal year 2009;
                    ``(C) $140,000,000 for fiscal year 2010; and
                    ``(D) $140,000,000 for fiscal year 2011.
            ``(3) Carbon capture.--There are authorized to be 
        appropriated to the Secretary for carrying out subsection 
        (c)(4)--
                    ``(A) $180,000,000 for fiscal year 2009;
                    ``(B) $180,000,000 for fiscal year 2010;
                    ``(C) $180,000,000 for fiscal year 2011; and
                    ``(D) $180,000,000 for fiscal year 2012.''.
    (b) Table of Contents Amendment.--The item relating to section 963 
in the table of contents for the Energy Policy Act of 2005 is amended 
to read as follows:

``Sec. 963. Carbon capture and storage research, development, and 
                            demonstration program.''.

SEC. 3. REVIEW OF LARGE-SCALE PROGRAMS.

    The Secretary of Energy shall enter into an arrangement with the 
National Academy of Sciences for an independent review and oversight, 
beginning in 2011, of the programs under section 963(c)(3) and (4) of 
the Energy Policy Act of 2005, as added by section 2 of this Act, to 
ensure that the benefits of such programs are maximized. Not later than 
January 1, 2012, the Secretary shall transmit to the Congress a report 
on the results of such review and oversight.

SEC. 4. SAFETY RESEARCH.

    (a) Program.--The Assistant Administrator for Research and 
Development of the Environmental Protection Agency shall conduct a 
research program to determine procedures necessary to protect public 
health, safety, and the environment from impacts that may be associated 
with capture, injection, and sequestration of greenhouse gases in 
subterranean reservoirs.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated for carrying out this section $5,000,000 for each fiscal 
year.

SEC. 5. GEOLOGICAL SEQUESTRATION TRAINING AND RESEARCH.

    (a) Study.--
            (1) In general.--The Secretary of Energy shall enter into 
        an arrangement with the National Academy of Sciences to 
        undertake a study that--
                    (A) defines an interdisciplinary program in 
                geology, engineering, hydrology, environmental science, 
                and related disciplines that will support the Nation's 
                capability to capture and sequester carbon dioxide from 
                anthropogenic sources;
                    (B) addresses undergraduate and graduate education, 
                especially to help develop graduate level programs of 
                research and instruction that lead to advanced degrees 
                with emphasis on geological sequestration science;
                    (C) develops guidelines for proposals from colleges 
                and universities with substantial capabilities in the 
                required disciplines that wish to implement geological 
                sequestration science programs that advance the 
                Nation's capacity to address carbon management through 
                geological sequestration science; and
                    (D) outlines a budget and recommendations for how 
                much funding will be necessary to establish and carry 
                out the grant program under subsection (b).
            (2) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary of Energy shall transmit 
        to the Congress a copy of the results of the study provided by 
        the National Academy of Sciences under paragraph (1).
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated to the Secretary for carrying out this 
        subsection $1,000,000 for fiscal year 2008.
    (b) Grant Program.--
            (1) Establishment.--The Secretary of Energy, through the 
        National Energy Technology Laboratory, shall establish a 
        competitive grant program through which colleges and 
        universities may apply for and receive 4-year grants for--
                    (A) salary and startup costs for newly designated 
                faculty positions in an integrated geological carbon 
                sequestration science program; and
                    (B) internships for graduate students in geological 
                sequestration science.
            (2) Renewal.--Grants under this subsection shall be 
        renewable for up to 2 additional 3-year terms, based on 
        performance criteria, established by the National Academy of 
        Sciences study conducted under subsection (a), that include the 
        number of graduates of such programs.
            (3) Interface with regional geological carbon sequestration 
        partnerships.--To the greatest extent possible, geological 
        carbon sequestration science programs supported under this 
        subsection shall interface with the research of the Regional 
        Carbon Sequestration Partnerships operated by the Department of 
        Energy to provide internships and practical training in carbon 
        capture and geological sequestration.
            (4) Authorization of appropriations.--There are authorized 
        to be appropriated to the Secretary for carrying out this 
        subsection such sums as may be necessary.

SEC. 6. UNIVERSITY BASED RESEARCH AND DEVELOPMENT GRANT PROGRAM.

    (a) Establishment.--The Secretary of Energy, in consultation with 
other appropriate agencies, shall establish a university based research 
and development program to study carbon capture and sequestration using 
the various types of coal.
    (b) Grants.--Under this section, the Secretary shall award 5 grants 
for projects submitted by colleges or universities to study carbon 
capture and sequestration in conjunction with the recovery of oil and 
other enhanced elemental and mineral recovery. Consideration shall be 
given to areas that have regional sources of coal for the study of 
carbon capture and sequestration.
    (c) Rural and Agricultural Institutions.--The Secretary shall 
designate that at least 2 of these grants shall be awarded to rural or 
agricultural based institutions that offer interdisciplinary programs 
in the area of environmental science to study carbon capture and 
sequestration in conjunction with the recovery of oil and other 
enhanced elemental and mineral recovery.
    (d) Authorization of Appropriations.--There are to be authorized to 
be appropriated $10,000,000 to carry out this section.
                                                 Union Calendar No. 188

110th CONGRESS

  1st Session

                               H. R. 1933

                          [Report No. 110-301]

_______________________________________________________________________

                                 A BILL

 To amend the Energy Policy Act of 2005 to reauthorize and improve the 
  carbon capture and storage research, development, and demonstration 
      program of the Department of Energy, and for other purposes.

_______________________________________________________________________

                             August 3, 2007

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed