[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3615 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 3615

 To require the Secretary of Energy to remove carbon dioxide directly 
         from ambient air or seawater, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 18, 2024

  Mr. Coons (for himself and Mr. Whitehouse) introduced the following 
bill; which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To require the Secretary of Energy to remove carbon dioxide directly 
         from ambient air or seawater, 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 ``Federal Carbon Dioxide Removal 
Leadership Act of 2024''.

SEC. 2. FEDERAL REQUIREMENT TO REMOVE CARBON DIOXIDE.

    (a) Definitions.--In this section:
            (1) Eligible technology.--
                    (A) In general.--The term ``eligible technology'' 
                means any equipment, technique, or technology, as 
                determined by the Secretary, that--
                            (i) was placed into service after January 
                        1, 2022; and
                            (ii) removes carbon dioxide directly from 
                        ambient air or seawater.
                    (B) Exclusion.--The term ``eligible technology'' 
                does not include any equipment, technique, or 
                technology that--
                            (i) removes carbon dioxide that is 
                        deliberately released from naturally occurring 
                        subsurface springs;
                            (ii) removes carbon dioxide using natural 
                        photosynthesis, except as provided in 
                        subparagraph (C); or
                            (iii) uses captured carbon dioxide in 
                        enhanced oil recovery.
                    (C) Expansion of eligible technology.--
                Notwithstanding subparagraph (B)(ii), any equipment, 
                technique, or technology that removes carbon dioxide 
                using gasification, pyrolysis, or sequestration of 
                solid, nonhazardous, and cellulosic waste materials may 
                be included in the term ``eligible technology'' if the 
                Secretary, by rule--
                            (i) determines that an entity that carries 
                        out a removal project under this section is 
                        able--
                                    (I) to adequately monitor, report, 
                                and verify the quantity of greenhouse 
                                gas emissions (including direct 
                                emissions and significant indirect 
                                emissions), calculated on a lifecycle 
                                basis, removed using that equipment, 
                                technique, or technology; and
                                    (II) to adequately mitigate the 
                                environmental impacts (including 
                                impacts on biodiversity, land use, and 
                                air and water quality) associated with 
                                that equipment, technique, or 
                                technology; and
                            (ii) requires that entity to carry out the 
                        activities described in clause (i).
            (2) Lifecycle basis.--The term ``lifecycle basis'' means 
        the net sum of all greenhouse gas emissions (using mass values 
        for all greenhouse gases that are adjusted to account for their 
        relative global warming potential, in consultation with the 
        Administrator of the Environmental Protection Agency) and 
        removals associated with carbon dioxide removal activity from 
        cradle to grave, including--
                    (A) embodied emissions of the applicable equipment; 
                and
                    (B) any emissions associated with--
                            (i) energy and feedstock inputs;
                            (ii) the carbon dioxide removal process; 
                        and
                            (iii) carbon dioxide storage, including use 
                        and disposal of any materials or products 
                        associated with carbon dioxide storage.
            (3) Remove.--The term ``remove'', with respect to carbon 
        dioxide, means--
                    (A) to capture carbon dioxide using eligible 
                technology; and
                    (B) to permanently store that captured carbon 
                dioxide--
                            (i) in dedicated subsurface geologic 
                        storage reported under sections 98.440 and 
                        146.91(e) of title 40, Code of Federal 
                        Regulations (or successor regulations);
                            (ii) in building materials and mineralized 
                        carbon materials; or
                            (iii) using other permanent storage 
                        methods, as determined by the Secretary.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (5) Small removal project.--The term ``small removal 
        project'' means a project for the removal of carbon dioxide 
        that removes not more than 5 percent of the net metric tons of 
        carbon dioxide required to be removed under subsection (b) for 
        the applicable fiscal year.
    (b) Required Quantities.--The Secretary shall, to the extent 
economically feasible as determined under subsection (c), remove--
            (1) 50,000 net metric tons of carbon dioxide, calculated on 
        a lifecycle basis, for each of fiscal years 2024 and 2025;
            (2) 500,000 net metric tons of carbon dioxide, calculated 
        on a lifecycle basis, for each of fiscal years 2026 through 
        2028;
            (3) 5,000,000 net metric tons of carbon dioxide, calculated 
        on a lifecycle basis, for each of fiscal years 2029 through 
        2034; and
            (4) 10,000,000 net metric tons of carbon dioxide, 
        calculated on a lifecycle basis, for fiscal year 2035 and each 
        fiscal year thereafter.
    (c) Economic Feasibility.--
            (1) In general.--The removal of carbon dioxide under 
        subsection (b) shall be considered economically feasible if 
        that removal can be accomplished or, in the case of a contract 
        under subsection (i), purchased--
                    (A) for each of fiscal years 2024 and 2025, at a 
                price per metric ton of carbon dioxide of not more than 
                $750 (which the Secretary may adjust for inflation);
                    (B) for each of fiscal years 2026 through 2028, at 
                a price per metric ton of carbon dioxide of not more 
                than $500 (which the Secretary may adjust for 
                inflation);
                    (C) for each of fiscal years 2029 through 2031, at 
                a price per metric ton of carbon dioxide of not more 
                than $300 (which the Secretary may adjust for 
                inflation);
                    (D) for each of fiscal years 2032 through 2034, at 
                a price per metric ton of carbon dioxide of not more 
                than $200 (which the Secretary may adjust for 
                inflation); and
                    (E) for fiscal year 2035 and each fiscal year 
                thereafter, at a price per metric ton of carbon dioxide 
                of not more than $150 (which the Secretary may adjust 
                for inflation).
            (2) Inclusion of monitoring, reporting, and verification 
        costs.--In determining whether the removal of carbon dioxide is 
        considered economically feasible under paragraph (1), the price 
        for such removal shall include any costs associated with the 
        monitoring, reporting, and verification required under 
        subsection (g)(1).
            (3) Multiyear contracts.--The removal of carbon dioxide 
        carried out pursuant to a contract entered into under 
        subsection (i) that is a multiyear contract shall be considered 
        economically feasible if such removal can be accomplished at 
        the applicable dollar amount for the first fiscal year of the 
        contract, as provided in paragraph (1), through the entire 
        length of the contract.
    (d) Timing.--For each fiscal year, the Secretary shall remove the 
quantity of carbon dioxide required under subsection (b) for that 
fiscal year not later than 3 years after the beginning of that fiscal 
year.
    (e) Small Removal Project Set-Aside.--To the extent practicable, at 
least 20 percent of the net metric tons of carbon dioxide required to 
be removed under subsection (b) for each of fiscal years 2024 through 
2034 shall be removed through small removal projects.
    (f) Federal Assistance.--Funds received pursuant to a contract 
entered into under subsection (i) shall not be considered Federal 
assistance or otherwise affect eligibility for any Federal assistance, 
including a tax incentive.
    (g) Monitoring, Reporting, and Verification.--
            (1) In general.--The Secretary, or an entity with which the 
        Secretary enters into a contract under subsection (i), shall 
        monitor, report, and verify the net metric tons of carbon 
        dioxide that the Secretary or the entity, as applicable, 
        removes for purposes of this section.
            (2) Standards.--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, the Administrator of the Environmental 
        Protection Agency, the Secretary of Agriculture, and other 
        relevant Federal agencies, as determined by the Secretary, 
        shall establish standards for the monitoring, reporting, and 
        verification of the net metric tons of carbon dioxide removed 
        pursuant to this section, which shall--
                    (A) require the use of best available practices 
                used by similar carbon dioxide removal projects;
                    (B) ensure safe, effective, and efficient removal 
                of carbon dioxide;
                    (C) require independent, third-party verification 
                of carbon dioxide removal;
                    (D) ensure additionality, permanence, and net-
                negativity of carbon dioxide removal;
                    (E) include criteria to determine whether the 
                storage of captured carbon dioxide is permanent;
                    (F) ensure scientifically rigorous and transparent 
                methods for monitoring, reporting, and verifying under 
                paragraph (1); and
                    (G) be regularly reviewed and, as necessary, 
                updated to account for scientific and technological 
                advancements.
            (3) Prohibition on double counting.--Carbon dioxide that is 
        removed for the purpose of complying with any other greenhouse 
        gas emissions management program, including any foreign, 
        Federal, State, local, or private greenhouse gas emissions 
        management program, as determined by the Secretary, may not be 
        considered removed under subsection (b) for purposes of meeting 
        the requirements of that subsection.
    (h) Priorities.--In carrying out removal projects pursuant to 
subsection (b), the Secretary shall give priority to projects based on 
the degree to which the project--
            (1) minimizes the quantity of greenhouse gas emissions 
        released by carrying out the project;
            (2) supports the commercialization of innovative removal 
        technologies;
            (3) increases the diversity of commercially available 
        eligible technologies;
            (4) provides for domestic job creation, with a further 
        preference for establishing partnerships with labor 
        organizations, small businesses, minority-owned businesses, and 
        women-owned businesses across value chains;
            (5) results in economic development or economic 
        diversification in regions or localities that have historically 
        generated significant economic activity from the production, 
        processing, transportation, or combustion of fossil fuels, 
        including through the use of coal mines, fossil fuel-fired 
        electricity generating units, and petroleum refining 
        facilities;
            (6) quantifies and mitigates risks from carbon dioxide 
        removal activities on, and provides measurable cobenefits to, 
        environmental justice communities, the environment, 
        agriculture, and public health, including by--
                    (A) improving local air quality, water quality, and 
                soil quality;
                    (B) minimizing land, water, and energy footprints; 
                and
                    (C) using zero-emission energy; and
            (7) includes robust public engagement and community 
        benefits.
    (i) Contracts.--
            (1) In general.--The Secretary may, using a transparent and 
        competitive process, enter into 1 or more contracts to meet the 
        requirements of subsection (b).
            (2) Duration.--The duration of a contract entered into 
        under paragraph (1) shall not exceed 15 years.
            (3) Maintenance of removal commitments.--A contract entered 
        into under paragraph (1) shall require the entity that enters 
        into the contract to permanently store an additional quantity 
        of carbon dioxide that is equal to the quantity of carbon 
        dioxide that is released after permanent storage by that 
        entity.
            (4) Limitation.--To the extent that there is a sufficient 
        number of entities capable of removing carbon dioxide in 
        accordance with this section under a contract entered into 
        paragraph (1), the Secretary shall ensure that no singular 
        entity is responsible for removing more than 25 percent of the 
        net metric tons of carbon dioxide required to be removed under 
        subsection (b) in any fiscal year.
    (j) Report.--Not later than January 1, 2027, and every 2 years 
thereafter, the Secretary shall submit to Congress, and make publicly 
available, a report that describes the progress made in carrying out 
the requirements of this section, including, with respect to the period 
covered by the report--
            (1) the quantities of removed carbon dioxide verified under 
        subsection (g)(1) and the name of each entity that provided 
        that verified quantity;
            (2) the total price, and price per metric ton, of removing 
        carbon dioxide for each applicable fiscal year as required 
        under subsection (b);
            (3) the methods used for the monitoring, reporting, and 
        verification required under subsection (g)(1);
            (4) an assessment of how the quantities of carbon dioxide 
        removed under this section have affected environmental justice 
        communities, the environment, agriculture, and public health;
            (5) information on any labor impacts and job creation 
        resulting from carrying out the requirements of subsection (b); 
        and
            (6) an explanation of how the Secretary prioritized 
        projects under subsection (h).
    (k) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 3. STUDY ON THE LONG-TERM FUTURE OF FEDERAL CARBON DIOXIDE REMOVAL 
              MANAGEMENT.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary of Energy, in consultation with the 
Administrator of the National Oceanic and Atmospheric Administration, 
the Administrator of the Environmental Protection Agency, the Secretary 
of Agriculture, and other relevant Federal agencies, as determined by 
the Secretary of Energy, shall submit to the Committee on Energy and 
Natural Resources of the Senate and the Committee on Energy and 
Commerce of the House of Representatives a report that evaluates and 
makes recommendations for potential program design elements and 
financing options for a Federal carbon dioxide removal offtake program 
that can achieve carbon dioxide removal from the atmosphere and the 
oceans at a gigaton scale annually by January 1, 2050.
    (b) Contents.--The report under subsection (a) shall include 
consideration of potential management and organizational structures for 
the program described in that subsection, including--
            (1) a government-sponsored enterprise;
            (2) a government corporation;
            (3) a program office within the Department of Energy or 
        another Federal agency; and
            (4) a contracted service provider.
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