[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5170 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 5170

 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

                             July 29, 2026

  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 ``Carbon Dioxide Removal Leadership 
Act of 2026''.

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 measure, monitor, 
                                report, and verify the quantity of 
                                greenhouse gas emissions (including 
                                direct emissions and significant 
                                indirect emissions), 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, as determined by the 
        Secretary in consultation with the Administrator of the 
        Environmental Protection Agency) associated with carbon dioxide 
        removal activity from cradle to grave, including any emissions 
        associated with--
                    (A) energy and feedstock inputs in the carbon 
                dioxide removal activity, including inputs in the 
                distribution and transportation of carbon dioxide;
                    (B) indirect effects, such as land-use change, as 
                scientifically justified;
                    (C) the carbon dioxide removal process;
                    (D) carbon dioxide transport and storage, including 
                any leakage, use, and disposal of any materials or 
                products associated with that transport and storage; 
                and
                    (E) embodied emissions of the equipment used in the 
                carbon dioxide removal activity.
            (3) Remove.--The term ``remove'', with respect to carbon 
        dioxide, means to extract carbon dioxide from the atmosphere 
        by--
                    (A) capturing carbon dioxide using eligible 
                technology; and
                    (B) durably storing, on a timescale equivalent to 
                geologic storage, that captured carbon dioxide--
                            (i) pursuant to a permit issued under part 
                        C of the Safe Drinking Water Act (42 U.S.C. 
                        300h et seq.) for a Class V or Class VI 
                        injection well (as described in section 144.6 
                        of title 40, Code of Federal Regulations (or 
                        successor regulations));
                            (ii) in building materials and mineralized 
                        carbon materials; or
                            (iii) using other durable 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 2026 and 2027;
            (2) 500,000 net metric tons of carbon dioxide, calculated 
        on a lifecycle basis, for each of fiscal years 2028 through 
        2030;
            (3) 5,000,000 net metric tons of carbon dioxide, calculated 
        on a lifecycle basis, for each of fiscal years 2031 through 
        2035; and
            (4) 10,000,000 net metric tons of carbon dioxide, 
        calculated on a lifecycle basis, for fiscal year 2036 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 2026 and 2027, 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 2028 through 2030, 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 2031 through 2033, 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 2034 through 2036, 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 2037 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 measurement, 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 costs 
        paid to an independent third party for the measurement, 
        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 2026 through 
2035 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) Measurement, Monitoring, Reporting, and Verification.--
            (1) In general.--The Secretary, or an entity with which the 
        Secretary enters into a contract under subsection (i), shall 
        enter into a contract with an independent third party to 
        measure, 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.--
                    (A) In general.--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, the Director of the 
                National Institute of Standards and Technology, and 
                other relevant Federal agencies, as determined by the 
                Secretary, shall establish standards for methods of 
                measuring, monitoring, reporting, and verifying the net 
                metric tons of carbon dioxide removed pursuant to this 
                section.
                    (B) Contents.--The standards established under 
                subparagraph (A) shall--
                            (i) require the use of best available 
                        practices used by similar carbon dioxide 
                        removal projects;
                            (ii) ensure safe, effective, and efficient 
                        removal of carbon dioxide;
                            (iii) ensure additionality, durability, and 
                        net-negativity of carbon dioxide removal;
                            (iv) include criteria to determine whether 
                        the storage of captured carbon dioxide is 
                        durable;
                            (v) ensure scientifically rigorous and 
                        transparent methods for measurement, 
                        monitoring, reporting, and verifying under 
                        paragraph (1); and
                            (vi) be regularly reviewed and, as 
                        necessary, updated to account for scientific 
                        and technological advancements.
            (3) Independent third parties.--An independent third party 
        entering into a contract under paragraph (1) shall be--
                    (A) in compliance with the standards established 
                under paragraph (2); and
                    (B) subject to oversight by the Secretary.
            (4) 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 that demonstrate--
                    (A) near-term and long-term cost competitiveness 
                relative to similar technologies; and
                    (B) a potential to achieve the economic feasibility 
                requirements established under subsection (c);
            (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) sources supply chain materials domestically;
            (6) 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;
            (7) quantifies and mitigates risks from carbon dioxide 
        removal activities on, and provides measurable co-benefits to, 
        nearby communities and residents, 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, to the maximum 
                extent practicable; and
            (8) includes robust public engagement and community 
        benefits, including the use of enforceable community benefits 
        agreements.
    (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) 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, 2029, 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 independent third party 
        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) each technology category, the amount of energy, and 
        each storage mechanism used to remove carbon dioxide for the 
        applicable fiscal year as required under subsection (b);
            (4) each location where carbon dioxide was removed for the 
        applicable fiscal year as required under subsection (b);
            (5) the standards established under subsection (g)(2);
            (6) an assessment of how the quantities of carbon dioxide 
        removed under this section have affected nearby communities and 
        residents, the environment, agriculture, and public health;
            (7) information on any potential labor impacts and job 
        creation resulting from carrying out the requirements of 
        subsection (b); and
            (8) 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 be scaled to achieve carbon dioxide removal from the 
atmosphere and the oceans at a gigaton scale annually by 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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