[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2602 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  2d Session
                                S. 2602

To support carbon dioxide utilization and direct air capture research, 
    to facilitate the permitting and development of carbon capture, 
 utilization, and sequestration projects and carbon dioxide pipelines, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 22, 2018

    Mr. Barrasso (for himself, Mr. Whitehouse, Mrs. Capito, and Ms. 
   Heitkamp) introduced the following bill; which was read twice and 
       referred to the Committee on Environment and Public Works

_______________________________________________________________________

                                 A BILL


 
To support carbon dioxide utilization and direct air capture research, 
    to facilitate the permitting and development of carbon capture, 
 utilization, and sequestration projects and carbon dioxide pipelines, 
                        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 ``Utilizing Significant Emissions with 
Innovative Technologies Act'' or the ``USE IT Act''.

           TITLE I--ENCOURAGING PROJECTS TO REDUCE EMISSIONS

SEC. 101. RESEARCH, INVESTIGATION, TRAINING, AND OTHER ACTIVITIES.

    Section 103 of the Clean Air Act (42 U.S.C. 7403) is amended--
            (1) in subsection (c)(3), in the first sentence of the 
        matter preceding subparagraph (A), by striking ``percursors'' 
        and inserting ``precursors''; and
            (2) in subsection (g)--
                    (A) by redesignating paragraphs (1) through (4) as 
                subparagraphs (A) through (D), respectively, and 
                indenting appropriately;
                    (B) in the undesignated matter following 
                subparagraph (D) (as so redesignated)--
                            (i) in the second sentence, by striking 
                        ``The Administrator'' and inserting the 
                        following:
            ``(5) Coordination and avoidance of duplication.--The 
        Administrator''; and
                            (ii) in the first sentence, by striking 
                        ``Nothing'' and inserting the following:
            ``(4) Effect of subsection.--Nothing'';
                    (C) in the matter preceding subparagraph (A) (as so 
                redesignated)--
                            (i) in the third sentence, by striking 
                        ``Such program'' and inserting the following:
            ``(3) Program inclusions.--The program under this 
        subsection'';
                            (ii) in the second sentence--
                                    (I) by inserting ``States, 
                                institutions of higher education,'' 
                                after ``scientists,''; and
                                    (II) by striking ``Such strategies 
                                and technologies shall be developed'' 
                                and inserting the following:
            ``(2) Participation requirement.--Such strategies and 
        technologies described in paragraph (1) shall be developed''; 
        and
                            (iii) in the first sentence, by striking 
                        ``In carrying out'' and inserting the 
                        following:
            ``(1) In general.--In carrying out''; and
                    (D) by adding at the end the following:
            ``(6) Certain carbon dioxide activities.--
                    ``(A) In general.--In carrying out paragraph (3)(A) 
                with respect to carbon dioxide, the Administrator shall 
                carry out the activities described in each of 
                subparagraphs (B) and (C).
                    ``(B) Direct air capture research.--
                            ``(i) Definitions.--In this subparagraph:
                                    ``(I) Board.--The term `Board' 
                                means the Direct Air Capture Technology 
                                Advisory Board established by clause 
                                (iii)(I).
                                    ``(II) Dilute.--The term `dilute' 
                                means a concentration of less than 1 
                                percent by volume.
                                    ``(III) Direct air capture.--
                                            ``(aa) In general.--The 
                                        term `direct air capture', with 
                                        respect to a facility, 
                                        technology, or system, means 
                                        that the facility, technology, 
                                        or system uses carbon capture 
                                        equipment to capture carbon 
                                        dioxide directly from the air.
                                            ``(bb) Exclusion.--The term 
                                        `direct air capture' does not 
                                        include any facility, 
                                        technology, or system that 
                                        captures carbon dioxide--

                                                    ``(AA) that is 
                                                deliberately released 
                                                from a naturally 
                                                occurring subsurface 
                                                spring; or

                                                    ``(BB) using 
                                                natural photosynthesis.

                                    ``(IV) Intellectual property.--The 
                                term `intellectual property' means--
                                            ``(aa) an invention that is 
                                        patentable under title 35, 
                                        United States Code; and
                                            ``(bb) any patent on an 
                                        invention described in item 
                                        (aa).
                            ``(ii) Technology prizes.--
                                    ``(I) In general.--Not later than 1 
                                year after the date of enactment of the 
                                USE IT Act, the Administrator shall 
                                establish a program to provide, and 
                                shall provide, financial awards on a 
                                competitive basis for direct air 
                                capture from media in which the 
                                concentration of carbon dioxide is 
                                dilute.
                                    ``(II) Duties.--In carrying out 
                                this clause, the Administrator shall--
                                            ``(aa) subject to subclause 
                                        (III), develop specific 
                                        requirements for--

                                                    ``(AA) the 
                                                competition process; 
                                                and

                                                    ``(BB) monitoring 
                                                and verification 
                                                procedures for approved 
                                                projects;

                                            ``(bb) offer financial 
                                        awards for a project designed--

                                                    ``(AA) to capture 
                                                more than 10,000 tons 
                                                of carbon dioxide per 
                                                year; and

                                                    ``(BB) to be 
                                                deployed at a cost of 
                                                less than $200 per ton 
                                                of carbon dioxide 
                                                captured; and

                                            ``(cc) to the maximum 
                                        extent practicable, make 
                                        financial awards to 
                                        geographically diverse 
                                        projects, including at least--

                                                    ``(AA) 1 project in 
                                                a coastal State; and

                                                    ``(BB) 1 project in 
                                                a rural State.

                                    ``(III) Public participation.--In 
                                carrying out subclause (II)(aa), the 
                                Board shall--
                                            ``(aa) provide notice of 
                                        and, for a period of not less 
                                        than 60 days, an opportunity 
                                        for public comment on, any 
                                        draft or proposed version of 
                                        the requirements described in 
                                        subclause (II)(aa); and
                                            ``(bb) take into account 
                                        public comments received in 
                                        developing the final version of 
                                        those requirements.
                                    ``(IV) Peer review.--No financial 
                                awards may be provided under this 
                                clause until the proposal for which the 
                                award is sought has been peer reviewed 
                                in accordance with such standards for 
                                peer review as are established by the 
                                Administrator.
                            ``(iii) Direct air capture technology 
                        advisory board.--
                                    ``(I) Establishment.--There is 
                                established an advisory board to be 
                                known as the `Direct Air Capture 
                                Technology Advisory Board'.
                                    ``(II) Composition.--The Board 
                                shall be composed of 9 members 
                                appointed by the Administrator, who 
                                shall provide expertise in--
                                            ``(aa) climate science;
                                            ``(bb) physics;
                                            ``(cc) chemistry;
                                            ``(dd) biology;
                                            ``(ee) engineering;
                                            ``(ff) economics;
                                            ``(gg) business management; 
                                        and
                                            ``(hh) such other 
                                        disciplines as the 
                                        Administrator determines to be 
                                        necessary to achieve the 
                                        purposes of this subparagraph.
                                    ``(III) Term; vacancies.--
                                            ``(aa) Term.--A member of 
                                        the Board shall serve for a 
                                        term of 6 years.
                                            ``(bb) Vacancies.--A 
                                        vacancy on the Board--

                                                    ``(AA) shall not 
                                                affect the powers of 
                                                the Board; and

                                                    ``(BB) shall be 
                                                filled in the same 
                                                manner as the original 
                                                appointment was made.

                                    ``(IV) Initial meeting.--Not later 
                                than 30 days after the date on which 
                                all members of the Board have been 
                                appointed, the Board shall hold the 
                                initial meeting of the Board.
                                    ``(V) Meetings.--The Board shall 
                                meet at the call of the Chairperson.
                                    ``(VI) Quorum.--A majority of the 
                                members of the Board shall constitute a 
                                quorum, but a lesser number of members 
                                may hold hearings.
                                    ``(VII) Chairperson and vice 
                                chairperson.--The Board shall select a 
                                Chairperson and Vice Chairperson from 
                                among the members of the Board.
                                    ``(VIII) Compensation.--Each member 
                                of the Board may be compensated at not 
                                to exceed the daily equivalent of the 
                                annual rate of basic pay in effect for 
                                a position at level V of the Executive 
                                Schedule under section 5316 of title 5, 
                                United States Code, for each day during 
                                which the member is engaged in the 
                                actual performance of the duties of the 
                                Board.
                                    ``(IX) Duties.--The Board shall 
                                advise the Administrator on carrying 
                                out the duties of the Administrator 
                                under this subparagraph.
                                    ``(X) FACA.--The Federal Advisory 
                                Committee Act (5 U.S.C. App.) shall 
                                apply to the Board.
                            ``(iv) Intellectual property.--
                                    ``(I) In general.--As a condition 
                                of receiving a financial award under 
                                this subparagraph, an applicant shall 
                                agree to vest the intellectual property 
                                of the applicant derived from the 
                                technology in 1 or more entities that 
                                are incorporated in the United States.
                                    ``(II) Reservation of license.--The 
                                United States--
                                            ``(aa) may reserve a 
                                        nonexclusive, nontransferable, 
                                        irrevocable, paid-up license, 
                                        to have practiced for or on 
                                        behalf of the United States, in 
                                        connection with any 
                                        intellectual property described 
                                        in subclause (I); but
                                            ``(bb) shall not, in the 
                                        exercise of a license reserved 
                                        under item (aa), publicly 
                                        disclose proprietary 
                                        information relating to the 
                                        license.
                                    ``(III) Transfer of title.--Title 
                                to any intellectual property described 
                                in subclause (I) shall not be 
                                transferred or passed, except to an 
                                entity that is incorporated in the 
                                United States, until the expiration of 
                                the first patent obtained in connection 
                                with the intellectual property.
                            ``(v) Authorization of appropriations.--
                        There is authorized to be appropriated to carry 
                        out this subparagraph $25,000,000, to remain 
                        available until expended.
                            ``(vi) Termination of authority.--The Board 
                        and all authority provided under this 
                        subparagraph shall terminate on December 31, 
                        2028.
                    ``(C) Carbon dioxide utilization research.--
                            ``(i) Definition of carbon dioxide 
                        utilization.--In this subparagraph, the term 
                        `carbon dioxide utilization' refers to 
                        technologies or approaches that lead to the use 
                        of carbon dioxide--
                                    ``(I) through the fixation of 
                                carbon dioxide through photosynthesis 
                                or chemosynthesis, such as through the 
                                growing of algae or bacteria;
                                    ``(II) through the chemical 
                                conversion of carbon dioxide to a 
                                material or chemical compound in which 
                                the carbon dioxide is securely stored; 
                                or
                                    ``(III) through the use of carbon 
                                dioxide for any other purpose for which 
                                a commercial market exists, as 
                                determined by the Administrator.
                            ``(ii) Program.--The Administrator shall 
                        carry out a research and development program 
                        for carbon dioxide utilization to promote 
                        technologies that transform carbon dioxide 
                        generated by industrial processes into a 
                        product of commercial value, or as an input to 
                        products of commercial value.
                            ``(iii) Technical and financial 
                        assistance.--Not later than 2 years after the 
                        date of enactment of the USE IT Act, in 
                        carrying out this subsection, the Administrator 
                        shall support research and infrastructure 
                        activities relating to carbon dioxide 
                        utilization by providing technical assistance 
                        and financial assistance in accordance with 
                        clause (iv).
                            ``(iv) Eligibility.--To be eligible to 
                        receive technical assistance and financial 
                        assistance under clause (iii), a carbon dioxide 
                        utilization project shall--
                                    ``(I) have access to an emissions 
                                stream generated by a stationary source 
                                within the United States that is 
                                capable of supplying not less than 250 
                                metric tons per day of carbon dioxide 
                                for research;
                                    ``(II) have access to adequate 
                                space for a laboratory and equipment 
                                for testing small-scale carbon dioxide 
                                utilization technologies, with onsite 
                                access to larger test bays for scale-
                                up; and
                                    ``(III) have existing partnerships 
                                with institutions of higher education, 
                                private companies, States, or other 
                                government entities.
                            ``(v) Coordination.--In supporting carbon 
                        dioxide utilization projects under this 
                        paragraph, the Administrator shall collaborate, 
                        as appropriate, with the head of any relevant 
                        Federal agency, States, the private sector, and 
                        institutions of higher education to develop 
                        methods and technologies to account for the 
                        carbon dioxide emissions avoided by the carbon 
                        dioxide utilization projects.
                            ``(vi) Authorization of appropriations.--
                        There is authorized to be appropriated to carry 
                        out this subparagraph $50,000,000, to remain 
                        available until expended.
                    ``(D) Report on carbon dioxide nonregulatory 
                strategies and technologies.--
                            ``(i) In general.--Not less frequently than 
                        once every 2 years, the Administrator shall 
                        submit to the Committee on Environment and 
                        Public Works of the Senate and the Committee on 
                        Energy and Commerce of the House of 
                        Representatives a report that describes--
                                    ``(I) the recipients of assistance 
                                under subparagraphs (B) and (C); and
                                    ``(II) a plan for supporting 
                                additional nonregulatory strategies and 
                                technologies that could significantly 
                                prevent carbon dioxide emissions or 
                                reduce carbon dioxide levels in the 
                                air, in conjunction with other Federal 
                                agencies.
                            ``(ii) Inclusions.--The plan submitted 
                        under clause (i) shall include--
                                    ``(I) a methodology for evaluating 
                                and ranking technologies based on the 
                                ability of the technologies to cost 
                                effectively reduce carbon dioxide 
                                emissions or carbon dioxide levels in 
                                the air; and
                                    ``(II) a description of any nonair-
                                related environmental or energy 
                                considerations regarding the 
                                technologies.''.

TITLE II--IMPROVEMENT OF PERMITTING PROCESS FOR CARBON DIOXIDE CAPTURE 
                      AND INFRASTRUCTURE PROJECTS

SEC. 201. INCLUSION OF CARBON CAPTURE INFRASTRUCTURE PROJECTS.

    Section 41001(6) of the FAST Act (42 U.S.C. 4370m(6)) is amended--
            (1) in subparagraph (A)--
                    (A) in the matter preceding clause (i), by 
                inserting ``carbon capture,'' before ``renewable or 
                conventional'';
                    (B) in clause (i)(III), by striking ``or'' at the 
                end;
                    (C) by redesignating clause (ii) as clause (iii); 
                and
                    (D) by inserting after clause (i) the following:
                            ``(ii) is covered by a programmatic plan or 
                        environmental review developed for the primary 
                        purpose of facilitating development of carbon 
                        dioxide pipelines; or''; and
            (2) by adding at the end the following:
                    ``(C) Associated definition.--For purposes of 
                subparagraph (A), the term `construction of 
                infrastructure for carbon capture' includes 
                construction of any facility, technology, or system 
                that captures, utilizes, or sequesters carbon dioxide 
                emissions and carbon dioxide pipelines.''.

SEC. 202. DEVELOPMENT OF CARBON CAPTURE, UTILIZATION, AND SEQUESTRATION 
              PERMITTING GUIDANCE AND REGIONAL PERMITTING TASK FORCE.

    (a) Development of Guidance.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Chair of the Council on 
        Environmental Quality (referred to in this section as the 
        ``Chair''), in consultation with the Administrator of the 
        Environmental Protection Agency, the Secretary of Energy, the 
        Secretary of the Interior, and the head of any other relevant 
        Federal agency (as determined by the President), shall prepare 
        guidance--
                    (A) to facilitate reviews associated with the 
                deployment of carbon capture, utilization, and 
                sequestration projects and carbon dioxide pipelines; 
                and
                    (B) that identifies current or emerging activities 
                that transform captured carbon dioxide into a product 
                of commercial value, or as an input to products of 
                commercial value.
            (2) Requirements.--The guidance under paragraph (1) shall--
                    (A) address requirements under--
                            (i) the National Environmental Policy Act 
                        of 1969 (42 U.S.C. 4321 et seq.);
                            (ii) the Federal Water Pollution Control 
                        Act (33 U.S.C. 1251 et seq.);
                            (iii) the Clean Air Act (42 U.S.C. 7401 et 
                        seq.);
                            (iv) the Safe Drinking Water Act (42 U.S.C. 
                        300f et seq.);
                            (v) the Endangered Species Act of 1973 (16 
                        U.S.C. 1531 et seq.);
                            (vi) division A of subtitle III of title 
                        54, United States Code (formerly known as the 
                        ``National Historic Preservation Act'');
                            (vii) the Migratory Bird Treaty Act (16 
                        U.S.C. 703 et seq.);
                            (viii) the Act of June 8, 1940 (16 U.S.C. 
                        668 et seq.) (commonly known as the ``Bald and 
                        Golden Eagle Protection Act''); and
                            (ix) any other Federal law that the Chair 
                        determines to be appropriate; and
                    (B) include guidance to States for the development 
                of programmatic environmental reviews under the 
                National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.) for siting, analyzing, and authorizing 
                carbon dioxide pipeline networks.
            (3) Submission; publication.--The Chair shall--
                    (A) submit the guidance under paragraph (1) to the 
                Committee on Environment and Public Works of the Senate 
                and the Committee on Energy and Commerce of the House 
                of Representatives; and
                    (B) publish and make publicly available the 
                guidance under paragraph (1).
    (b) Task Force.--
            (1) Establishment.--Not later than 18 months after the date 
        of enactment of this Act, the Chair shall establish not less 
        than 2 task forces, which shall each cover a different 
        geographical area that faces differing demographic, land use, 
        or geological issues, to identify permitting challenges that 
        permitting authorities and project developers and operators 
        face.
            (2) Members and selection.--
                    (A) In general.--The Chair shall--
                            (i) develop criteria for the selection of 
                        members to each task force; and
                            (ii) select members for each task force in 
                        accordance with clause (i) and subparagraph 
                        (B).
                    (B) Members.--Each task force--
                            (i) shall include not less than 1 
                        representative of each of--
                                    (I) the Environmental Protection 
                                Agency;
                                    (II) the Department of Energy;
                                    (III) the Department of the 
                                Interior;
                                    (IV) any other Federal agency the 
                                Chair determines to be appropriate;
                                    (V) any State that requests 
                                participation in the geographical area 
                                covered by the task force;
                                    (VI) industry; and
                                    (VII) nongovernmental 
                                organizations; and
                            (ii) at the request of a Tribal or local 
                        government, may include a representative of--
                                    (I) not less than 1 local 
                                government in the geographical area 
                                covered by the task force; and
                                    (II) not less than 1 Tribal 
                                government in the geographical area 
                                covered by the task force.
            (3) Meetings.--
                    (A) In general.--Each task force shall meet not 
                less than twice each year.
                    (B) Joint meeting.--To the maximum extent 
                practicable, the task forces shall meet collectively 
                not less than once each year.
            (4) Duties.--Each task force shall--
                    (A) inventory existing or potential approaches to 
                facilitate reviews associated with the deployment of 
                carbon capture, utilization, and sequestration projects 
                and carbon dioxide pipelines;
                    (B) develop common models for State-level carbon 
                dioxide pipeline regulation and oversight guidelines 
                that can be shared with States in the geographical area 
                covered by the task force;
                    (C) provide technical assistance to States in the 
                geographical area covered by the task force in 
                implementing regulatory requirements and any models 
                developed under subparagraph (B); and
                    (D) develop guidance for relevant Federal agencies 
                on how to develop and research technologies that--
                            (i) can capture carbon dioxide; and
                            (ii) would be able to be deployed within 
                        the region covered by the task force, including 
                        any projects that have received technical or 
                        financial assistance for research under 
                        paragraph (6) of section 103(g) of the Clean 
                        Air Act (42 U.S.C. 7403(g)).
            (5) Report.--Each year, each task force shall prepare and 
        submit to the Chair and to the other task forces a report that 
        includes--
                    (A) any recommendations for improvements in the 
                issuance or administration of Federal permits and other 
                Federal authorizations required under a law described 
                in subsection (a)(2)(A); and
                    (B) any other nationally relevant information that 
                the task force has collected in carrying out the duties 
                under paragraph (4).
            (6) Evaluation and revision.--The Chair shall--
                    (A) evaluate the reports under paragraph (5) and, 
                as necessary, revise the guidance under subsection (a); 
                and
                    (B) submit to the Committee on Environment and 
                Public Works of the Senate, the Committee on Energy and 
                Commerce of the House of Representatives, and relevant 
                Federal agencies each year any revisions to the 
                guidance under subsection (a) and a report that 
                describes any recommendations for legislation, rules, 
                or revisions to rules that would address the issues 
                identified by the task forces under paragraph (5).
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