[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2323 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 2323

  To provide for the conduct of carbon capture and storage technology 
   research, development, and demonstration projects, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 7, 2007

   Mr. Kerry introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
  To provide for the conduct of carbon capture and storage technology 
   research, development, and demonstration projects, 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 ``Carbon Capture and Storage 
Technology Act of 2007''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (2) Task force.--The term ``Task Force'' means the 
        interagency task force established by section 5(a)(1).

SEC. 3. CARBON DIOXIDE SEQUESTRATION COMMERCIAL DEMONSTRATION PROJECTS.

    (a) In General.--The Secretary shall establish a competitive grant 
program to provide grants or other financial assistance to at least 3, 
but not more than 5, 8-year commercial demonstration projects to 
demonstrate the long-term effects of sequestration of carbon dioxide in 
deep geological formations, of which--
            (1) not less than 2 of those projects shall be conducted in 
        deep saline aquifers; and
            (2) the remainder may be conducted in saline aquifers 
        combined with storage in established oil or gas fields.
    (b) Project Requirements.--A commercial demonstration project 
provided assistance under subsection (a) shall--
            (1) involve injections of at least 1,000,000 tons of carbon 
        dioxide each year;
            (2) include intensive characterization and monitoring of 
        the site for the commercial demonstration project in order to 
        evaluate--
                    (A) the security of the storage of carbon dioxide 
                over the period during which the commercial 
                demonstration project is being carried out;
                    (B) any leakage from the site over the period 
                during which the commercial demonstration project is 
                being carried out; and
                    (C) the security of the storage of carbon dioxide, 
                including the likelihood of leakage from the site after 
                the project has ceased to operate;
            (3) include development of best practices for injecting, 
        permitting, and managing the storage area;
            (4) require full integration of data from the commercial 
        demonstration project; and
            (5) include an evaluation of the most cost-efficient ways 
        in which to--
                    (A) undertake sequestration of carbon dioxide;
                    (B) integrate sequestration with the capture and 
                transportation of carbon dioxide;
                    (C) effectively monitor and verify the injected 
                carbon dioxide; and
                    (D) identify and manage hazards and risks 
                associated with storage.
    (c) Application.--To be eligible to receive assistance under 
subsection (a), an entity shall submit to the Secretary an application 
at such time, in such manner, and containing such information as the 
Secretary may require.
    (d) Location.--In providing assistance under this section, the 
Secretary shall select commercial demonstration projects that are in 
locations that--
            (1) are geologically and geophysically diverse;
            (2) represent a range of population densities; and
            (3) are in close proximity to--
                    (A) utilities and industrial settings; and
                    (B) large-scale existing and planned coal-fired 
                generation facilities.
    (e) Cost-Sharing Requirement.--
            (1) In general.--Except as provided in paragraph (2), the 
        non-Federal share of the cost of carrying out a commercial 
        demonstration project under subsection (a) shall be not less 
        than 20 nor more than 50 percent, as determined by the 
        Secretary.
            (2) Exception.--The Secretary may waive the non-Federal 
        share required under paragraph (1) as the Secretary determines 
        to be appropriate.
    (f) Reports to Congress.--
            (1) Initial report.--As soon as practicable, but not later 
        than 8 years, after the date of enactment of this Act, the 
        Secretary shall submit to the appropriate committees of 
        Congress a report that describes the preliminary results of--
                    (A) any commercial demonstration projects carried 
                out under this section; and
                    (B) the evaluation conducted under subsection 
                (b)(5).
            (2) Final report.--After any demonstration projects have 
        been operated for a sufficient period of time to gather 
        meaningful data and performance metrics, as determined by the 
        Secretary, but not later than 10 years after the date of 
        enactment of this Act, the Secretary shall submit to the 
        appropriate committees of Congress a final report that includes 
        the information required under paragraph (1).
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,600,000,000 for the period of 
fiscal years 2008 through 2015.

SEC. 4. CARBON DIOXIDE CAPTURE DEMONSTRATION PROJECTS.

    (a) In General.--The Secretary shall establish a competitive grant 
program under which the Secretary shall provide grants to at least 3, 
but not more than 5, commercial demonstration projects for the capture 
of carbon emissions from coal-fired power plants.
    (b) Project Requirements.--
            (1) In general.--A commercial demonstration project 
        provided assistance under this section shall involve a coal-
        fired power plant with a nameplate capacity of at least 250, 
        but not more than 500, megawatts.
            (2) Priority.--The Secretary shall give priority to 
        integrated proposed commercial demonstration projects that 
        would combine the capture of carbon dioxide with sequestration 
        in deep geological formations.
    (c) Application.--To be eligible to receive assistance under 
subsection (a), an entity shall submit to the Secretary an application 
at such time, in such manner, and containing such information as the 
Secretary may require.
    (d) Cost-Sharing Requirement.--
            (1) In general.--Except as provided in paragraph (2), the 
        non-Federal share of the cost of carrying out a commercial 
        demonstration project under subsection (a) shall be not less 
        than 50 percent.
            (2) Exception.--The Secretary may waive the non-Federal 
        share required under paragraph (1) if the Secretary determines 
        that--
                    (A) the technology that is the subject of the 
                commercial demonstration project is critical and the 
                technology risk is relatively high; and
                    (B) there are insufficient resources to provide the 
                non-Federal share.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $2,400,000,000 for the period of 
fiscal years 2008 through 2015.

SEC. 5. CARBON CAPTURE AND STORAGE REGULATIONS.

    (a) Interagency Task Force.--
            (1) In general.--There is established an interagency task 
        force to develop regulations providing guidelines and practices 
        for the capture and storage of carbon dioxide.
            (2) Membership.--The Task Force shall be composed of--
                    (A) the Secretary;
                    (B) the Administrator of the Environmental 
                Protection Agency; and
                    (C) the Secretary of the Interior (acting through 
                the Director of the United States Geological Survey).
            (3) Chairperson.--The Administrator of the Environmental 
        Protection Agency shall be the chairperson of the Task Force.
            (4) Consultation.--In developing regulations under this 
        section, the Task Force shall consult with--
                    (A) industry experts;
                    (B) legal experts; and
                    (C) technical experts.
            (5) Requirements.--The regulations developed by the Task 
        Force shall--
                    (A) take into account existing underground 
                injection control program requirements of the 
                Environmental Protection Agency;
                    (B) address the certification and closure of carbon 
                dioxide capture and storage sites;
                    (C) address the potential appropriate transfer of 
                liability to governmental entities;
                    (D) provide mechanisms to ensure, monitor, and 
                verify the safe transportation and storage of carbon 
                dioxide;
                    (E) provide estimate of the costs of carrying out 
                the regulations; and
                    (F) take into account the outcomes of demonstration 
                projects.
            (6) Proposed regulations.--Not later than 3 years after the 
        date of enactment of this Act, the Task Force shall submit to 
        the appropriate committees of Congress the proposed regulations 
        developed by the Task Force.
    (b) Promulgation.--Not later than 18 months after the date on which 
the proposed regulations are submitted under subsection (a)(6), the 
Administrator of the Environmental Protection Agency shall promulgate 
the regulations.
    (c) Update.--Not later than 3 years after the date of promulgation 
of the regulations under subsection (b), the Administrator of the 
Environmental Protection Agency shall update the regulations as 
necessary to take into account the results of demonstration projects 
carried out under sections 3 and 4.
    (d) Enforcement.--The Administrator of the Environmental Protection 
Agency shall be responsible for enforcement of, and inspections 
relating to, the regulations promulgated under subsections (b) and (c).

SEC. 6. CARBON DIOXIDE CAPTURE AND STORAGE RESEARCH AND DEVELOPMENT.

    (a) Carbon Dioxide Capture Technologies.--The Director of the 
Office of Science, in consultation with the Assistant Secretary for 
Fossil Energy, shall carry out a program for the research and 
development of potential technologies and approaches for the capture of 
carbon dioxide, including the capture of carbon dioxide--
            (1) through coal gasification and related capture 
        technologies;
            (2) in air-blown pulverized coal combustion facilities;
            (3) in oxy-fueled pulverized coal combustion facilities;
            (4) through lower-cost separation of oxygen from air at 
        power plants; and
            (5) through advanced concepts and biological systems.
    (b) Carbon Dioxide Storage Technologies.--
            (1) In general.--The Secretary, in consultation with the 
        Secretary of the Interior, shall carry out a program for the 
        research and development of carbon dioxide storage 
        technologies, including--
                    (A) the improved understanding of geological carbon 
                dioxide sequestration processes and characteristics;
                    (B) simulation activities at carbon dioxide storage 
                sites established under this Act or any other Act; and
                    (C) identification, management, and mitigation of 
                hazards and risks.
            (2) Recommendations.--Based on the research and development 
        activities conducted under paragraph (1), the Secretary shall 
        develop recommendations for optimal carbon dioxide storage 
        features, practices, and conditions.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated for the conduct of activities under--
            (1) subsection (a)(1) $100,000,000 for each of fiscal years 
        2008 through 2012;
            (2) paragraphs (2) and (3) of subsection (a) $100,000,000 
        for each of fiscal years 2008 through 2012;
            (3) subsection (a)(4) $100,000,000 for each of fiscal years 
        2008 through 2012; and
            (4) subparagraphs (A) and (B) of subsection (b)(1) 
        $50,000,000 for each of fiscal years 2008 through 2012.

SEC. 7. CARBON DIOXIDE STORAGE CAPACITY ASSESSMENT.

    (a) Definitions.--In this section--
            (1) Assessment.--The term ``assessment'' means the national 
        assessment of capacity for carbon dioxide completed under 
        subsection (f).
            (2) Capacity.--The term ``capacity'' means the portion of a 
        storage formation that can retain carbon dioxide in accordance 
        with the requirements (including physical, geological, and 
        economic requirements) established under the methodology 
        developed under subsection (b).
            (3) Engineered hazard.--The term ``engineered hazard'' 
        includes the location and completion history of any well that 
        could affect potential storage.
            (4) Risk.--The term ``risk'' includes any risk posed by 
        geomechanical, geochemical, hydrogeological, structural, and 
        engineered hazards.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, acting through the Director of the United 
        States Geological Survey.
            (6) Storage formation.--The term ``storage formation'' 
        means a deep saline formation, unmineable coal seam, or oil or 
        gas reservoir that is capable of accommodating a volume of 
        industrial carbon dioxide.
    (b) Methodology.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall develop a methodology for conducting 
an assessment under subsection (f), taking into consideration--
            (1) the geographical extent of all potential storage 
        formations in all States;
            (2) the capacity of the potential storage formations;
            (3) the injectivity of the potential storage formations;
            (4) an estimate of potential volumes of oil and gas 
        recoverable by injection and storage of industrial carbon 
        dioxide in potential storage formations;
            (5) the risk associated with the potential storage 
        formations; and
            (6) the Carbon Sequestration Atlas of the United States and 
        Canada that was completed by the Department of Energy in April 
        2006.
    (c) Coordination.--
            (1) Federal coordination.--
                    (A) Consultation.--The Secretary shall consult with 
                the Secretary of Energy and the Administrator of the 
                Environmental Protection Agency on issues of data 
                sharing, format, development of the methodology, and 
                content of the assessment required under this title to 
                ensure the maximum usefulness and success of the 
                assessment.
                    (B) Cooperation.--The Secretary of Energy and the 
                Administrator shall cooperate with the Secretary to 
                ensure, to the maximum extent practicable, the 
                usefulness and success of the assessment.
            (2) State coordination.--The Secretary shall consult with 
        State geological surveys and other relevant entities to ensure, 
        to the maximum extent practicable, the usefulness and success 
        of the assessment.
    (d) External Review and Publication.--On completion of the 
methodology under subsection (b), the Secretary shall--
            (1) publish the methodology and solicit comments from the 
        public and the heads of affected Federal and State agencies;
            (2) establish a panel of individuals with expertise in the 
        matters described in paragraphs (1) through (5) of subsection 
        (b) composed, as appropriate, of representatives of Federal 
        agencies, institutions of higher education, nongovernmental 
        organizations, State organizations, industry, and international 
        geoscience organizations to review the methodology and comments 
        received under paragraph (1); and
            (3) on completion of the review under paragraph (2), 
        publish in the Federal Register the revised final methodology.
    (e) Periodic Updates.--The methodology developed under this section 
shall be updated periodically (including at least once every 5 years) 
to incorporate new data as the data becomes available.
    (f) National Assessment.--
            (1) In general.--Not later than 2 years after the date of 
        publication of the methodology under subsection (d)(1), the 
        Secretary, in consultation with the Secretary of Energy and 
        State geological surveys, shall complete a national assessment 
        of capacity for carbon dioxide in accordance with the 
        methodology.
            (2) Geological verification.--As part of the assessment 
        under this subsection, the Secretary shall carry out a drilling 
        program to supplement the geological data relevant to 
        determining storage capacity of carbon dioxide in geological 
        storage formations, including--
                    (A) well log data;
                    (B) core data; and
                    (C) fluid sample data.
            (3) Partnership with other drilling programs.--As part of 
        the drilling program under paragraph (2), the Secretary shall 
        enter, as appropriate, into partnerships with other entities to 
        collect and integrate data from other drilling programs 
        relevant to the storage of carbon dioxide in geologic 
        formations.
            (4) Incorporation into natcarb.--
                    (A) In general.--On completion of the assessment, 
                the Secretary of Energy shall incorporate the results 
                of the assessment using the NatCarb database, to the 
                maximum extent practicable.
                    (B) Ranking.--The database shall include the data 
                necessary to rank potential storage sites for capacity 
                and risk, across the United States, within each State, 
                by formation, and within each basin.
            (5) Report.--Not later than 180 days after the date on 
        which the assessment is completed, the Secretary shall submit 
        to the Committee on Energy and Natural Resources of the Senate 
        and the Committee on Science and Technology of the House of 
        Representatives a report describing the findings under the 
        assessment.
            (6) Periodic updates.--The national assessment developed 
        under this section shall be updated periodically (including at 
        least once every 5 years) to support public and private sector 
        decisionmaking.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $30,000,000 for the period of 
fiscal years 2008 through 2012.

SEC. 8. TECHNOLOGY-SHARING AGREEMENTS.

    The Secretary, in coordination with the Secretary of State, shall 
offer to enter into agreements with each of the countries of China and 
India, and any other country that is heavily dependent on coal-fired 
power plants for electricity generation, to pursue agreements under 
which the countries subject to an agreement shall--
            (1) fund and demonstrate carbon dioxide capture and storage 
        technologies;
            (2) share and transfer knowledge and information relating 
        to those technologies; and
            (3) provide training with respect to those technologies.
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