[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9318 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 9318
To provide for advancements in carbon removal research, quantification,
and commercialization, including by harnessing natural processes, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 16, 2022
Mr. Peters (for himself and Mr. Curtis) introduced the following bill;
which was referred to the Committee on Science, Space, and Technology,
and in addition to the Committees on Natural Resources, and Energy and
Commerce, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide for advancements in carbon removal research, quantification,
and commercialization, including by harnessing natural processes, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Carbon Removal and
Emissions Storage Technologies Act of 2022'' or the ``CREST Act of
2022''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--CARBON REMOVAL RESEARCH AND DEVELOPMENT
Subtitle A--Biomass Carbon Removal
Sec. 101. Biomass carbon removal programs.
Sec. 102. Biological carbon dioxide conversion programs.
Subtitle B--Geological Carbon Removal
Sec. 111. Carbon mineralization pilot projects.
Sec. 112. Carbon mineralization resource assessment.
Sec. 113. Tailings and waste mineralization program.
Subtitle C--Aquatic Carbon Removal
Sec. 121. Ocean carbon removal mission.
Sec. 122. Direct ocean capture assessment.
Sec. 123. Offshore carbon storage program and assessment.
Subtitle D--Atmospheric Carbon Removal
Sec. 131. Direct air capture technology manufacturing research program.
Subtitle E--Carbon Removal Quantification
Sec. 141. Carbon removal quantification.
TITLE II--CARBON REMOVAL FIRST MOVERS PILOT PROGRAM
Sec. 201. Carbon Removal First Movers Pilot Program.
SEC. 2. DEFINITIONS.
In this Act:
(1) Carbon removal.--The term ``carbon removal'' means the
intentional removal, including by harnessing natural processes,
of carbon dioxide directly from the atmosphere or upper
hydrosphere and subsequent storage of the carbon dioxide in
geological, biobased, or ocean reservoirs or in value-added
products that results in a net removal of carbon dioxide from
the atmosphere, as measured on a lifecycle basis.
(2) Carbon removal technology or approach.--The term
``carbon removal technology or approach'' includes--
(A) direct air capture with durable storage;
(B) soil carbon sequestration;
(C) biomass carbon removal and storage;
(D) enhanced mineralization;
(E) ocean-based carbon dioxide removal; and
(F) afforestation or reforestation.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
TITLE I--CARBON REMOVAL RESEARCH AND DEVELOPMENT
Subtitle A--Biomass Carbon Removal
SEC. 101. BIOMASS CARBON REMOVAL PROGRAMS.
(a) Office of Science.--Section 306 of the Department of Energy
Research and Innovation Act (42 U.S.C. 18644) is amended by adding at
the end the following:
``(e) Algal Biomass Carbon Removal.--
``(1) In general.--The Director shall carry out a research
and development program to gain understanding of the underlying
biology of algal biomass systems and the possible use of algal
biomass systems as a means of carbon removal (as defined in
section 2 of the Carbon Removal and Emissions Storage
Technologies Act of 2022) from the air and aquatic sources.
``(2) Requirements.--The program carried out under
paragraph (1) shall--
``(A) support efforts to reduce long-term technical
barriers for algal biomass with carbon capture; and
``(B) coordinate closely with the Bioenergy
Technologies Office and the Office of Fossil Energy and
Carbon Management.''.
(b) Office of Energy Efficiency and Renewable Energy.--Section 932
of the Energy Policy Act of 2005 (42 U.S.C. 16232) is amended--
(1) in subsection (b)--
(A) in paragraph (5), by striking ``and'' after the
semicolon;
(B) in paragraph (6), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(7) biological carbon removal (as defined in section 2 of
the Carbon Removal and Emissions Storage Technologies Act of
2022).''; and
(2) by inserting after subsection (e) the following:
``(f) Biological Carbon Removal.--
``(1) Definition of carbon removal.--In this subsection,
the term `carbon removal' has the meaning given the term in
section 2 of the Carbon Removal and Emissions Storage
Technologies Act of 2022.
``(2) Goals.--The goals of the biological carbon removal
program under subsection (b)(7) shall be to develop and deploy,
in partnership with industry and institutions of higher
education--
``(A) improved tools and understanding of
feedstocks, supplies, and logistics with respect to
carbon removal using biomass sources;
``(B) technologies for the optimized conversion of
aquatic and terrestrial biomass for carbon removal;
``(C) cost-competitive carbon capture technologies
applied to bioenergy, including--
``(i) algal, terrestrial, and marine
biomass;
``(ii) biofuels; and
``(iii) bioproducts; and
``(D) applied research on best practices in
macroalgae cultivation and phenotype selection,
including by carrying out aquatic pilot projects.
``(3) Coordination.--Activities conducted under this
subsection shall be coordinated with the relevant programs of
the Office of Science, the Office of Fossil Energy and Carbon
Management, and the Department of Agriculture.''.
(c) Office of Fossil Energy and Carbon Management.--Section 962(b)
of the Energy Policy Act of 2005 (42 U.S.C. 16292(b)) is amended--
(1) in paragraph (1), by striking ``performance of'' and
all that follows through the period at the end and inserting
the following: ``performance of--
``(A) coal and natural gas use;
``(B) biomass with carbon capture for utilization
or permanent storage; and
``(C) manufacturing and industrial facilities.'';
and
(2) in paragraph (3)--
(A) in subparagraph (A)--
(i) in clause (v), by striking ``and''
after the semicolon;
(ii) in clause (vi), by striking the period
at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(vii) developing advanced boilers to
enable net-negative lifecycle carbon emissions
through co-firing with biomass.''; and
(B) by adding at the end the following:
``(G) Developing carbon capture technologies
applied to bioenergy systems that result in net-
negative lifecycle carbon emissions, including--
``(i) biofuels production;
``(ii) bioproducts;
``(iii) biomass used in power systems and
industrial applications; and
``(iv) fossil fuel power systems and
industrial systems co-fired with biomass.''.
(d) Office of Energy Efficiency and Renewable Energy.--
(1) In general.--The Energy Independence and Security Act
of 2007 (42 U.S.C. 17001 et seq.) is amended by striking
section 228 (121 Stat. 1535) and inserting the following:
``SEC. 228. AQUATIC BIOMASS.
``(a) In General.--The Director of the Bioenergy Technologies
Office shall carry out applied research on--
``(1) microalgae and macroalgae cultivation and phenotype
selection; and
``(2) optimization of aquatic biomass conversion pathways.
``(b) Requirements.--The research carried out under subsection (a)
shall support efforts--
``(1) to develop best practices in microalgae and
macroalgae cultivation and phenotype selection, including by
carrying out aquatic pilot projects--
``(A) on microalgae and macroalgae; and
``(B) in freshwater and seawater; and
``(2) to optimize aquatic biomass conversion pathways that
result in carbon removal (as defined in section 2 of the Carbon
Removal and Emissions Storage Technologies Act of 2022) for
biopower, biofuels, and other uses.
``(c) Funding.--There are authorized to be appropriated to the
Secretary to carry out this section--
``(1) $3,000,000 for fiscal year 2023;
``(2) $8,000,000 for fiscal year 2024; and
``(3) $20,000,000 for each of fiscal years 2025 through
2027.''.
(2) Clerical amendment.--The table of contents for the
Energy Independence and Security Act of 2007 (Public Law 110-
140; 121 Stat. 1493) is amended by striking the item relating
to section 228 and inserting the following:
``Sec. 228. Aquatic biomass.''.
SEC. 102. BIOLOGICAL CARBON DIOXIDE CONVERSION PROGRAMS.
(a) In General.--The Energy Policy Act of 2005 is amended by
inserting after section 977 (42 U.S.C. 16317) the following:
``SEC. 977A. BIOLOGICAL CARBON DIOXIDE CONVERSION PROGRAMS.
``(a) Genetic Modeling and Tools; Bioprospecting.--
``(1) In general.--The Director of the Office of Science
shall establish a program to improve genetic modeling and
manipulation for carbon dioxide conversion.
``(2) Methodology.--The program established under paragraph
(1) shall--
``(A) support efforts to improve carbon dioxide
uptake and conversion through genetic manipulation of
crops and trees, including--
``(i) soil enhancements;
``(ii) enhanced photosynthesis, including
microbial soil amendments and perennialization;
and
``(iii) root growth; and
``(B) support efforts to bioprospect using tools
and high-throughput screening methods for organisms
with unique attributes related to carbon dioxide
conversion.
``(3) Coordination.--In carrying out the program
established under paragraph (1), the Director of the Office of
Science shall coordinate with the National Science Foundation
and the Agricultural Research Service.
``(b) New Materials Development and Application.--
``(1) Definition of carbon removal.--In this subsection,
the term `carbon removal' has the meaning given the term in
section 2 of the Carbon Removal and Emissions Storage
Technologies Act of 2022.
``(2) Program.--The Assistant Secretary for Energy
Efficiency and Renewable Energy, in consultation with the
Secretary of Agriculture, shall establish a program to develop
new biologically based carbon dioxide utilization products and
coproducts that result in carbon removal.
``(3) Methodology.--The program established under paragraph
(2) shall--
``(A) support efforts to develop new carbon dioxide
utilization products that result in carbon removal;
``(B) prioritize products that have the potential
to be deployed at a large scale; and
``(C) support efforts to develop valorization of
coproducts for--
``(i) feed;
``(ii) fuel; and
``(iii) other uses.''.
(b) Clerical Amendment.--The table of contents for the Energy
Policy Act of 2005 (Public Law 109-58; 119 Stat. 600) is amended by
inserting after the item relating to section 977 the following:
``Sec. 977A. Biological carbon dioxide conversion programs.''.
Subtitle B--Geological Carbon Removal
SEC. 111. CARBON MINERALIZATION PILOT PROJECTS.
(a) In General.--The Energy Policy Act of 2005 is amended by
inserting after section 963 (42 U.S.C. 16293) the following:
``SEC. 963A. CARBON MINERALIZATION PILOT PROJECTS.
``(a) In General.--The Secretary, in consultation with the
Administrator of the National Oceanic and Atmospheric Administration
and the Director of the United States Geological Survey, shall conduct
field experiments of ex situ and in situ carbon mineralization
approaches for the purposes of advancing carbon removal technologies or
approaches (as defined in section 2 of the Carbon Removal and Emissions
Storage Technologies Act of 2022).
``(b) Activities.--In carrying out subsection (a), the Secretary
shall--
``(1) conduct field experiments of ex situ carbon
mineralization--
``(A) using desalination brine treatment; and
``(B) through the broadcast of reactive minerals
on--
``(i) soils;
``(ii) beaches; and
``(iii) shallow oceans; and
``(2) conduct field experiments of in situ carbon
mineralization, including through drilling and injection in
reactive formations for--
``(A) mantle peridotite;
``(B) basalt; and
``(C) other relevant formations.
``(c) Field Experiment Goals and Objectives.--The Secretary shall
develop goals and objectives for field experiments carried out under
this section to decrease the energy requirements and costs to produce
the resulting mineralized carbon.
``(d) Environmental Impact.--In carrying out field experiments
under this section, the Secretary shall comply with all applicable
environmental laws and regulations.
``(e) Funding.--There are authorized to be appropriated to the
Secretary to carry out this section--
``(1) $4,000,000 for fiscal year 2023;
``(2) $9,000,000 for fiscal year 2024;
``(3) $18,000,000 for fiscal year 2025; and
``(4) $30,000,000 for each of fiscal years 2026 and
2027.''.
(b) Clerical Amendment.--The table of contents for the Energy
Policy Act of 2005 (Public Law 109-58; 119 Stat. 600) is amended by
inserting after the item relating to section 963 the following:
``Sec. 963A. Carbon mineralization pilot projects.''.
SEC. 112. CARBON MINERALIZATION RESOURCE ASSESSMENT.
(a) In General.--The Secretary of the Interior (referred to in this
section as the ``Secretary'') shall complete a national assessment of
the potential for using carbon mineralization for carbon removal, in
accordance with the methodology developed under subsection (b).
(b) Methodology.--Not later than 2 years after the date of
enactment of this Act, the Secretary, acting through the Director of
the United States Geological Survey, shall develop a methodology to
assess geological resources, mine tailings, and other alkaline
industrial wastes to identify sustainable sources of reactive minerals
suitable for carbon mineralization, while taking into consideration
minerals and mineral classes with high reactivity and fast kinetics.
(c) Coordination.--
(1) Federal coordination.--To ensure the maximum usefulness
and success of the assessment under subsection (a), the
Secretary shall--
(A) consult with the Secretary of Energy and the
Administrator of the Environmental Protection Agency on
the format and content of the assessment; and
(B) share relevant data with the Department of
Energy and the Environmental Protection Agency.
(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 under subsection (a).
(d) Report.--
(1) In general.--Not later than 180 days after the date on
which the assessment under subsection (a) is completed, the
Secretary shall submit to the Committee on Energy and Natural
Resources of the Senate and the Committee on Natural Resources
of the House of Representatives a report describing the
findings under the assessment, including the locations and
available quantities of suitable reactive minerals.
(2) Public availability.--Not later than 30 days after the
date on which the Secretary submits the report under paragraph
(1), the Secretary shall make the report publicly available.
SEC. 113. TAILINGS AND WASTE MINERALIZATION PROGRAM.
(a) Tailings and Waste Mineralization Program.--
(1) In general.--The Secretary shall conduct field
experiments to examine the use of mine tailings and industrial
wastes for the purpose of carbon mineralization.
(2) Activities.--The field experiments using mine tailings
and industrial wastes conducted under paragraph (1) shall
assess--
(A) the reusing of industrial slags and mine
tailings in manufacturing; and
(B) other industrial wastes that may have carbon
mineralization properties.
(b) Study on Environmental Impacts of Mineralization Products.--
(1) In general.--Not later than 3 years after the date of
enactment of this Act, the Secretary shall conduct, and submit
to Congress a report that describes the results of, a study on
the environmental impacts of--
(A) broadcasting materials and distributing piles
of mine tailings at various scales for the purposes of
enhanced carbon mineralization; and
(B) additional mining for the purposes of carbon
mineralization.
(2) Requirements.--The study under paragraph (1) shall
include an analysis of--
(A) the relative carbon removal potential
associated with various scales of carbon
mineralization;
(B) the cost of environmental mitigation of the
environmental impacts identified under the study; and
(C) opportunities--
(i) for remediation;
(ii) to co-extract reactive minerals with
conventional mining operations; and
(iii) for the use of reactive minerals in
mining remediation.
Subtitle C--Aquatic Carbon Removal
SEC. 121. OCEAN CARBON REMOVAL MISSION.
Section 969D of the Energy Policy Act of 2005 (42 U.S.C. 16298d) is
amended--
(1) in subsection (a) by inserting ``and aquatic sources''
after ``atmosphere''; and
(2) in subsection (c)--
(A) in paragraph (5), by striking ``and'' after the
semicolon;
(B) in paragraph (6), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following:
``(7) ocean carbon removal and strategies, such as--
``(A) blue carbon, which is the management of
vegetated coastal habitats (including mangroves, tidal
marshes, seagrasses, kelp forests, and other tidal,
freshwater, or saltwater wetlands) that sequester
carbon (including autochthonous carbon and
allochthonous carbon) from the atmosphere, accumulate
carbon in biomass, and store the carbon in soils;
``(B) direct ocean capture (as described in section
122(a) of the Carbon Removal and Emissions Storage
Technologies Act of 2022);
``(C) microalgae and macroalgae cultivation for--
``(i) biofuels;
``(ii) bioproducts; and
``(iii) carbon storage; and
``(D) ocean alkalinity enhancement; and
``(8) any combination of activities described in paragraphs
(1) through (7) that have the potential for significant carbon
removal (as defined in section 2 of the Carbon Removal and
Emissions Storage Technologies Act of 2022).''.
SEC. 122. DIRECT OCEAN CAPTURE ASSESSMENT.
(a) In General.--The Secretary shall conduct a comprehensive
assessment of the potential for removing carbon dioxide directly from
the oceans.
(b) Methodology.--In conducting the assessment under subsection
(a), the Secretary shall consider the potential and relative merits
of--
(1) pathways, methods, and technologies that are able to
directly remove carbon dioxide from the oceans through
engineered or inorganic processes; and
(2) technologies such as filters, membranes, phase change
systems, chemical conversion, or other technological pathways.
(c) Inclusion.--In conducting the assessment under subsection (a),
the Secretary shall incorporate any information on the results of
activities conducted under section 223 of the National Defense
Authorization Act for Fiscal Year 2020 (10 U.S.C. 4001 note; Public Law
116-92).
(d) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary, in consultation with the Administrator of the
National Oceanic and Atmospheric Administration, shall submit to the
Committees on Energy and Natural Resources and Commerce, Science, and
Transportation of the Senate and the Committee on Energy and Commerce
of the House of Representatives a report describing the results of the
assessment under subsection (a).
(e) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section--
(1) $2,000,000 for fiscal year 2023;
(2) $4,000,000 for fiscal year 2024; and
(3) $8,000,000 for each of fiscal years 2025 through 2027.
SEC. 123. OFFSHORE CARBON STORAGE PROGRAM AND ASSESSMENT.
(a) Carbon Dioxide Impacts and Fate in the Ocean.--
(1) In general.--The Department of Energy Carbon Capture
and Sequestration Research, Development, and Demonstration Act
of 2007 (Public Law 110-140; 121 Stat. 1704) is amended by
adding at the end the following:
``SEC. 709. CARBON DIOXIDE IMPACTS AND FATE IN THE OCEAN.
``(a) In General.--The Secretary shall establish a program to
monitor, research, and model the ecological impacts of ocean carbon
dioxide removal and storage techniques.
``(b) Coordination.--In carrying out the program established under
subsection (a), the Secretary shall coordinate with the Administrator
of the National Oceanic and Atmospheric Administration and the
Administrator of the National Aeronautics and Space Administration.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section--
``(1) $2,000,000 for fiscal year 2023; and
``(2) $5,000,000 for each of fiscal years 2024 through
2027.''.
(2) Clerical amendment.--The table of contents for the
Energy Independence and Security Act of 2007 (Public Law 110-
140; 121 Stat. 1496) is amended by inserting after the item
relating to section 708 the following:
``Sec. 709. Carbon dioxide impacts and fate in the ocean.''.
(b) Outer Continental Shelf Resource Assessment.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall--
(A) expand the CarbonSAFE Initiative of the
Department of Energy to complete a national carbon
mineralization assessment that examines the full range
of carbon mineralization storage potential for the
outer Continental Shelf region; and
(B) submit to the Committees on Energy and Natural
Resources and Commerce, Science, and Transportation of
the Senate and the Committee on Energy and Commerce of
the House of Representatives a report describing the
results of the assessment.
(2) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this
subsection $5,000,000 for each of fiscal years 2023 through
2027.
(c) Assessment To Determine the Potential for Offshore Carbon
Storage.--
(1) In general.--The Secretary, in consultation with the
Secretary of the Interior, the Administrator of the
Environmental Protection Agency, and the Administrator of the
National Oceanic and Atmospheric Administration, shall conduct
a comprehensive assessment of the potential for offshore carbon
storage, including an assessment of--
(A) the potential for offshore carbon storage--
(i) in deep offshore sub-seabed locations,
such as in geological formations;
(ii) at the seabed, such as through biomass
sinking; and
(iii) within the oceans, such as liquid
carbon dioxide storage; and
(B) other relevant methods of offshore carbon
storage.
(2) Inclusion.--The assessment under paragraph (1) shall
include recommendations of measures that the Department of
Energy may take to improve the ease, safety, and security of
offshore carbon dioxide storage.
(3) Reporting.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall submit to the
Committees on Energy and Natural Resources and Commerce,
Science, and Transportation of the Senate and the Committee on
Energy and Commerce of the House of Representatives a report
describing the results of the assessment under paragraph (1).
Subtitle D--Atmospheric Carbon Removal
SEC. 131. DIRECT AIR CAPTURE TECHNOLOGY MANUFACTURING RESEARCH PROGRAM.
(a) Initiative.--
(1) In general.--The Secretary shall establish a program
for the research, development, and demonstration of
manufacturing techniques for direct air capture technologies
(referred to in this section as the ``program'').
(2) Coordination.--In carrying out the program, the
Secretary shall leverage expertise and resources from--
(A) the Office of Science;
(B) the Office of Energy Efficiency and Renewable
Energy; and
(C) the Office of Fossil Energy and Carbon
Management.
(b) Contactor Design.--
(1) In general.--In carrying out the program, the Secretary
shall conduct research on applied technology development of air
contactor design.
(2) Requirements.--The research under paragraph (1) shall
support efforts to improve air contactors with--
(A) low pressure drop;
(B) high surface area; and
(C) high longevity.
(c) Manufacturing Improvement.--
(1) In general.--In carrying out the program, the Secretary
shall conduct research scaling-up manufacturing of direct air
capture components.
(2) Requirements.--The research under paragraph (1) shall--
(A) support efforts to improve techniques for low-
cost manufacturing of direct air capture components and
materials; and
(B) be coordinated with private industry and
universities.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary--
(1) to carry out subsection (b)--
(A) $3,000,000 for fiscal year 2023;
(B) $7,000,000 for fiscal year 2024; and
(C) $10,000,000 for each of fiscal years 2025
through 2027; and
(2) to carry out subsection (c)--
(A) $2,000,000 for fiscal year 2023;
(B) $5,000,000 for fiscal year 2024; and
(C) $10,000,000 for each of fiscal years 2025
through 2027.
Subtitle E--Carbon Removal Quantification
SEC. 141. CARBON REMOVAL QUANTIFICATION.
(a) In General.--Title V of the Energy Act of 2020 (42 U.S.C.
16298e et seq.) is amended by adding at the end the following:
``SEC. 5003. QUANTIFYING THE BENEFITS OF CARBON REMOVAL.
``(a) Purposes.--The purposes of this section are--
``(1) to quantify the net carbon removed through
atmospheric and aquatic carbon removal pathways;
``(2) to determine the current and projected carbon removal
capacity of atmospheric and aquatic carbon removal pathways;
``(3) to determine the current and likely future technical
readiness of carbon removal technologies or approaches for
large-scale carbon removal deployment; and
``(4) to aid in the commercialization of carbon removal
technologies or approaches.
``(b) Definitions.--In this section:
``(1) Carbon removal; carbon removal technology or
approach.--The terms `carbon removal' and `carbon removal
technology or approach' have the meanings given the terms in
section 2 of the Carbon Removal and Emissions Storage
Technologies Act of 2022.
``(2) Eligible entity.--The term `eligible entity' means
any of the following entities:
``(A) An institution of higher education.
``(B) A National Laboratory.
``(C) A Federal research agency.
``(D) A State research agency.
``(E) A nonprofit research organization.
``(F) An industrial entity.
``(G) A consortium of 2 or more entities described
in subparagraphs (A) through (F).
``(3) Secretary.--The term `Secretary' means the Secretary
of Energy.
``(c) Carbon Removal Footprint Program.--
``(1) Establishment.--Not later than 1 year after the date
of enactment of this section, the Secretary shall establish a
program to carry out the purposes described in subsection (a),
including by providing financial assistance to eligible
entities to examine the technological, economic, and
environmental impacts of carbon removal pathways and
technologies.
``(2) Eligible activities.--Activities eligible to receive
financial assistance under this section include--
``(A) assessments of technological or economic
barriers to the widescale deployment of carbon removal
pathways and technologies; and
``(B) lifecycle assessments for carbon removal
pathways and technologies, including gathering data in
partnership with a direct air capture test center
authorized under section 969D(f)(1) of the Energy
Policy Act of 2005 (42 U.S.C. 16298d(f)(1)).
``(3) Applications.--An eligible entity seeking financial
assistance under this section shall submit to the Secretary an
application that includes a description of--
``(A) the applicable project;
``(B) the software programs, consultants, and
general methodologies to be used to conduct the
assessment;
``(C) the location of any applicable facility or
project;
``(D) expected feedstocks and other inputs; and
``(E) the expected use of carbon removed.
``(4) Priority.--In selecting eligible entities to receive
financial assistance under this section, the Secretary shall
give priority to eligible entities that--
``(A) make the assessment publicly available, with
confidential business information redacted or removed;
and
``(B) have not previously received financial
assistance under this section.''.
(b) Clerical Amendment.--The table of contents for the Energy Act
of 2020 (Public Law 116-260; 134 Stat. 2419) is amended by inserting
after the item relating to section 5002 the following:
``Sec. 5003. Quantifying the benefits of carbon removal.''.
TITLE II--CARBON REMOVAL FIRST MOVERS PILOT PROGRAM
SEC. 201. CARBON REMOVAL FIRST MOVERS PILOT PROGRAM.
(a) In General.--Subtitle F of title IX of the Energy Policy Act of
2005 (42 U.S.C. 16291 et seq.) is amended by adding at the end the
following:
``SEC. 969E. CARBON REMOVAL FIRST MOVERS PILOT PROGRAM.
``(a) Purposes.--The purposes of this section are--
``(1) to accelerate the deployment and commercialization of
carbon removal pathways and technologies;
``(2) to stimulate the development and commercialization of
low-carbon products made with carbon dioxide removed from the
atmosphere or oceans; and
``(3) to support the development of technologies relating
to carbon removal.
``(b) Definitions.--In this section:
``(1) Additional.--The term `additional', with respect to
carbon dioxide removed from the atmosphere or upper
hydrosphere, means that carbon dioxide was removed pursuant to
an intentional carbon removal activity that delivers a net
removal of carbon dioxide from the atmosphere, measured on a
lifecycle basis, that would not have occurred without the
carbon removal activity.
``(2) All-in cost.--The term `all-in cost' means the total
cost of--
``(A) the capture, transport, and storage of carbon
dioxide; and
``(B) the measurement, reporting, and verification
of carbon dioxide removed on a net ton carbon dioxide
equivalent basis.
``(3) Eligible entity.--The term `eligible entity' means a
carbon removal facility that--
``(A) is located in the United States;
``(B) meets all applicable Federal and State
permitting requirements; and
``(C) meets financial and technical criteria
established by the Secretary.
``(4) Removal.--The term `removal' means--
``(A) the capture of carbon dioxide from the
atmosphere or upper hydrosphere through a chemical,
physical, or other process; and
``(B) the subsequent permanent storage or use of
the carbon dioxide in a manner that ensures that the
carbon dioxide does not reenter the atmosphere or upper
hydrosphere.
``(5) Upper hydrosphere.--The term `upper hydrosphere'
means the total liquid water existing on the surface level of
the earth, including--
``(A) oceans;
``(B) lakes;
``(C) rivers; and
``(D) other surface bodies of water.
``(c) Program.--
``(1) Establishment.--The Secretary shall establish a
competitive purchasing pilot program under which the Secretary
shall purchase from eligible entities carbon dioxide removed
from the atmosphere or upper hydrosphere.
``(2) Purchase.--In carrying out the pilot program under
paragraph (1), the Secretary shall purchase, subject to the
availability of appropriations, removed carbon dioxide from
eligible entities--
``(A) until the date on which the first reverse
auction is held under paragraph (3), by making a
payment per net ton carbon equivalent basis to account
for lifecycle greenhouse gas inputs to carbon removal
in an amount determined by the Secretary; and
``(B) beginning with the first reverse auction held
under paragraph (3), in accordance with the reverse
auction procedures described in that paragraph.
``(3) Reverse auction procedures.--
``(A) In general.--Not later than 2 years after the
date of enactment of this section, and annually
thereafter, the Secretary shall conduct a reverse
auction under which--
``(i) the Secretary shall solicit bids from
eligible entities in each tier described in
subparagraph (B)(ii) (referred to in this
section as a `permanence tier'); and
``(ii) eligible entities shall submit to
the Secretary sealed bids describing--
``(I) a desired price for the
removed carbon dioxide on a per net ton
carbon dioxide equivalent basis;
``(II) the estimated net ton carbon
dioxide equivalent removed by the
eligible entity annually that the
eligible entity desires the Secretary
to purchase at the desired price;
``(III) details of the permanence
of the removed carbon dioxide;
``(IV) details on the purity,
location, and transportation options
for the removed carbon dioxide to be
purchased by the Secretary for purposes
of the all-in costs;
``(V) a lifecycle assessment of the
operation to quantify the net carbon
dioxide removed, while accounting for
greenhouse gas emissions associated
with the production of the inputs
necessary for the carbon dioxide
removal and storage processes; and
``(VI) any other details the
Secretary may require.
``(B) Selection.--
``(i) In general.--The Secretary shall--
``(I) examine the bids submitted
under subparagraph (A)(ii) to determine
which bids are acceptable under the
criteria established by the Secretary
for the applicable permanence tier; and
``(II) of the bids determined to be
acceptable under subclause (I), select
the bids containing the lowest desired
price for carbon dioxide until the
amount of funds available for the
applicable permanence tier of the
reverse auction is obligated.
``(ii) Permanence tiers.--In selecting bids
under clause (i), the Secretary shall group the
permanence of each carbon removal bid into 1 of
the following 2 tiers:
``(I) Medium-term tier for bids
providing for the removal of carbon
dioxide for at least 100 years, but
fewer than 1,000 years.
``(II) Long-term tier for bids
providing for the removal of carbon
dioxide for 1,000 years or more.
``(iii) Priority.--In any case in which the
desired price in 2 or more bids submitted under
subparagraph (A)(ii) for an applicable
permanence tier is equal, the Secretary shall
give priority to eligible entities that
demonstrate outstanding potential for local and
regional economic development in carrying out
projects to remove carbon dioxide from ambient
air or aquatic sources.
``(4) Cost cap.--
``(A) In general.--Subject to subparagraph (B), for
purposes of a reverse auction under paragraph (3), the
Secretary shall--
``(i) determine the current average market
price per net ton carbon dioxide equivalent
basis to account for lifecycle greenhouse gas
inputs of removed carbon within each permanence
tier; and
``(ii) set that price as the maximum price
per ton to be paid under the reverse auction
within each permanence tier.
``(B) Increased cap.--In the case of an eligible
entity that uses a technology that has the potential to
eventually remove carbon dioxide at an all-in cost of
less than $100 per net ton carbon dioxide equivalent,
the Secretary shall double the maximum price per net
ton carbon dioxide equivalent established under
subparagraph (A)(ii) with respect to the eligible
entity.
``(5) Requirement.--In purchasing removed carbon dioxide
under the program under paragraph (1), the Secretary shall
determine that the carbon dioxide--
``(A) is additional;
``(B) shall be delivered not later than 5 years
after the date of the purchase;
``(C) shall have a monitoring, reporting, and
verification plan approved by the Department of Energy;
and
``(D) has not less than a 99 percent likelihood of
being stored for not fewer than 100 years.
``(d) Use of Carbon Dioxide.--Carbon dioxide purchased under the
pilot program under subsection (c), at the discretion of the Secretary,
may be used or stored in any manner that ensures that the carbon
dioxide does not reenter the atmosphere or upper hydrosphere during the
time period associated with the applicable permanence tier.
``(e) Pilot Program Coordination.--Amounts made available under
this section may be made available to carry out pilot and demonstration
projects described in section 969D(f)(2)(B) and section 969D(g).
``(f) Confidentiality.--The Secretary shall establish procedures to
ensure that any confidential, private, proprietary, or privileged
information that is included in a sealed bid submitted under this
section is not publicly disclosed or otherwise improperly used.
``(g) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to the Secretary to carry out this section--
``(A) $20,000,000 for fiscal year 2023;
``(B) $30,000,000 for fiscal year 2024; and
``(C) $60,000,000 for each of fiscal years 2025
through 2027.
``(2) Allocation.--Amounts made available under paragraph
(1) for each fiscal year shall be allocated between the
permanence tiers as follows:
``(A) 70 percent shall be allocated for the
permanence tier described in subsection
(c)(3)(B)(ii)(II).
``(B) 30 percent shall be allocated for the
permanence tier described in subsection
(c)(3)(B)(ii)(I).''.
(b) Clerical Amendment.--The table of contents for the Energy
Policy Act of 2005 (Public Law 109-59; 119 Stat. 600; 134 Stat. 2550)
is amended by adding at the end of the items relating to subtitle F of
title IX the following:
``Sec. 969E. Carbon Removal First Movers Pilot Program.''.
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