II 110th CONGRESS 1st Session S. 2323 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.
1.
Short title
This Act may be cited as the Carbon Capture and Storage Technology Act of 2007.
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).
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.
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.
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).
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.
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.
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.