[Senate Report 112-33]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 100
112th Congress                                                   Report
                                 SENATE
 1st Session                                                     112-33

======================================================================



 
                         CARBON DIOXIDE CAPTURE

                                _______
                                

                 July 11, 2011.--Ordered to be printed

                                _______
                                

   Mr. Bingaman, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 757]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 757) to provide incentives to encourage 
the development and implementation of technology to capture 
carbon dioxide from dilute sources on a significant scale using 
direct air capture technologies, having considered the same, 
reports favorably thereon with an amendment and recommends that 
the bill, as amended, do pass.
     The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Carbon Dioxide Capture Technology 
Prize Act of 2011''.

SEC. 2. FINDINGS AND PURPOSE.

  (a) Findings.--Congress finds that--
          (1) flue gases from coal-fired electric generating facilities 
        typically have carbon dioxide concentrations of approximately 
        17 percent by volume;
          (2) it is possible to separate carbon dioxide from dilute 
        sources and even the atmosphere, which has a carbon dioxide 
        concentration of 0.038 percent, but substantial advances in 
        research and technology will be necessary to provide the 
        separation in an economical manner;
          (3) developing practical separations of carbon dioxide from 
        dilute sources is important to the future development of energy 
        technology;
          (4) economical onsite separation of atmospheric carbon 
        dioxide can help leverage the use of carbon dioxide in energy 
        applications such as enhanced oil recovery and enhanced 
        geothermal systems at remote sites; and
          (5) authorizing the Secretary of Energy to provide a 
        technology prize for separation of carbon dioxide from dilute 
        sources can provide the impetus for developing the novel 
        technologies that will be needed in the future as part of the 
        national energy system of the United States.
  (b) Purpose.--The purpose of this Act is to provide incentives to 
encourage the development and implementation of technology to capture 
carbon dioxide from dilute sources on a significant scale using direct 
air capture technologies.

SEC. 3. CARBON DIOXIDE CAPTURE TECHNOLOGY PRIZE.

  Section 703 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17251) is amended--
          (1) by redesignating subsection (b) as subsection (c);
          (2) by inserting after subsection (a) the following:
  ``(b) Carbon Dioxide Capture Technology Prize.--
          ``(1) Definitions.--In this subsection:
                  ``(A) Board.--The term `Board' means the Carbon 
                Dioxide Capture Technology Advisory Board established 
                by paragraph (6).
                  ``(B) Dilute.--The term `dilute' means a 
                concentration of less than 1 percent by volume.
                  ``(C) Intellectual property.--The term `intellectual 
                property' means--
                          ``(i) an invention that is patentable under 
                        title 35, United States Code; and
                          ``(ii) any patent on an invention described 
                        in clause (i).
                  ``(D) Secretary.--The term `Secretary' means the 
                Secretary of Energy or designee, in consultation with 
                the Board.
          ``(2) Authority.--Not later than 1 year after the date of 
        enactment of the Carbon Dioxide Capture Technology Prize Act of 
        2011, as part of the program carried out under this section, 
        the Secretary shall establish and award competitive technology 
        financial awards for carbon dioxide capture from media in which 
        the concentration of carbon dioxide is dilute.
          ``(3) Duties.--In carrying out this subsection, the Secretary 
        shall--
                  ``(A) subject to paragraph (4), develop specific 
                requirements for--
                          ``(i) the competition process;
                          ``(ii) minimum performance standards for 
                        qualifying projects; and
                          ``(iii) monitoring and verification 
                        procedures for approved projects;
                  ``(B) establish minimum levels for the capture of 
                carbon dioxide from a dilute medium that are required 
                to be achieved to qualify for a financial award 
                described in subparagraph (C); and
                  ``(C) offer financial awards for--
                          ``(i) a design for a promising capture 
                        technology;
                          ``(ii) a successful bench-scale demonstration 
                        of a capture technology;
                          ``(iii) a design for a technology described 
                        in clause (i) that will--
                                  ``(I) be operated on a demonstration 
                                scale; and
                                  ``(II) achieve significant reduction 
                                in the level of carbon dioxide; and
                          ``(iv) an operational capture technology on a 
                        commercial scale that meets the minimum levels 
                        described in subparagraph (B).
          ``(4) Public participation.--In carrying out paragraph 
        (3)(A), the Board shall--
                  ``(A) provide notice of and, for a period of at least 
                60 days, an opportunity for public comment on, any 
                draft or proposed version of the requirements described 
                in paragraph (3)(A); and
                  ``(B) take into account public comments received in 
                developing the final version of those requirements.
          ``(5) Peer review.--No financial awards may be provided under 
        this subsection 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 Secretary.
          ``(6) Carbon dioxide capture technology advisory board.--
                  ``(A) Establishment.--There is established an 
                advisory board to be known as the `Carbon Dioxide 
                Capture Technology Advisory Board'.
                  ``(B) Composition.--The Board shall be composed of 7 
                members appointed by the President that provide 
                expertise in--
                          ``(i) climate science;
                          ``(ii) physics;
                          ``(iii) chemistry;
                          ``(iv) biology;
                          ``(v) engineering;
                          ``(vi) economics;
                          ``(vii) business management; and
                          ``(viii) such other disciplines as the 
                        Secretary determines to be necessary to achieve 
                        the purposes of this subsection.
                  ``(C) 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.
                  ``(D) Meetings.--The Board shall meet at the call of 
                the Chairperson.
                  ``(E) Quorum.--A majority of the members of the Board 
                shall constitute a quorum, but a lesser number of 
                members may hold hearings.
                  ``(F) Chairperson and vice chairperson.--The Board 
                shall select a Chairperson and Vice Chairperson from 
                among the members of the Board.
                  ``(G) Duties.--The Board shall advise the Secretary 
                on carrying out the duties of the Secretary under this 
                subsection.
          ``(7) Intellectual property.--
                  ``(A) In general.--As a condition of receiving a 
                financial award under this subsection, 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.
                  ``(B) Reservation of license.--The United States--
                          ``(i) 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 subparagraph 
                        (A); but
                          ``(ii) shall not, in the exercise of a 
                        license reserved under clause (i), publicly 
                        disclose proprietary information relating to 
                        the license.
                  ``(C) Transfer of title.--Title to any intellectual 
                property described in subparagraph (A) 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.
          ``(8) Termination of authority.--The Board and all authority 
        provided under this subsection shall terminate on the date that 
        is 5 years after the date of enactment of the Carbon Dioxide 
        Capture Technology Prize Act of 2011.''; and
          (3) in subsection (c) (as redesignated by paragraph (1))--
                  (A) by striking ``There is'' and inserting the 
                following:
          ``(1) In general.--There is'';
                  (B) by striking ``this section'' and inserting 
                ``subsection (a)''; and
                  (C) by striking ``2013'' and inserting ``2011 and 
                $195,000,000 for each of fiscal years 2012 and 2013''; 
                and
                  (D) by adding at the end the following:
          ``(2) Carbon dioxide capture technology prize.--There is 
        authorized to be appropriated to the Secretary to carry out 
        subsection (b) $10,000,000 for the period of fiscal years 2012 
        through 2016.''.

                         Purpose of the Measure

    The purpose of S. 757 is to provide incentives to encourage 
the development and implementation of technology to capture 
carbon dioxide from dilute sources on a significant scale using 
direct air capture technologies by creating a carbon dioxide 
capture technology prize to be implemented by the Secretary of 
Energy.

                          Background and Need

    Carbon capture and storage (CCS) technology holds great 
promise of removing large amounts of carbon dioxide emitted 
from the use of fossil fuels. Deployment of CCS technology 
would reduce carbon dioxide emissions from electricity 
generation facilities that use fossil fuels and from other 
sources. In addition, captured carbon dioxide could be used in 
energy applications such as enhanced oil recovery and enhanced 
geothermal systems. Serious technical challenges to achieving 
cost-effective commercial deployment of CCS technology remain, 
however.
    The Department of Energy's ongoing CCS research and 
development programs, regional carbon sequestration 
partnerships, and commercial-scale demonstrations are important 
efforts toward solving these technical challenges. In addition, 
however, the National Academy of Engineering has recommended 
that Congress make greater use of competitions that are 
designed to foster progress toward scientific and technological 
goals by offering prizes or awards. The Academy found that 
inducement prizes attract a broader spectrum of ideas and 
participants, enable federal agencies to shift more of the risk 
of pursuing a scientific or technological breakthrough from the 
agency to the contestants, and have the capacity for educating, 
inspiring, and mobilizing the public.
    Since the National Academy of Engineering recommended 
greater use of prizes for achieving scientific and 
technological goals, Congress has enacted legislation 
authorizing the Secretary of Energy to award cash prizes for 
breakthrough achievements in research, development, 
demonstration, and commercial application (``Grand Challenges 
Prizes''), for technologies that serve to reduce the dependence 
of the United States on imported oil (``Freedom Prizes''), for 
advances in hydrogen energy (``H-Prize''), and for various 
lighting technologies (``Bright Tomorrow Lighting Prizes''). 42 
U.S.C. 16396 and 17243.
    S. 757 is needed to provide financial incentives to 
encourage the development and implementation of technology to 
capture carbon dioxide from dilute sources on a significant 
scale using direct air capture technologies.

                          Legislative History

    S. 757 was introduced by Senator Barrasso on April 7, 2011. 
Senators Bingaman, Enzi, and Hoeven are cosponsors. The 
Committee on Energy and Natural Resources held a hearing on the 
bill on Thursday, May 12, 2011. The Committee considered the 
bill at its business meeting on Thursday, May 26, 2011. The 
Committee adopted an amendment in the nature of a substitute 
and ordered the bill, as amended, favorably reported.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on May 26, 2011, by voice vote of a 
quorum present, recommends that the Senate pass S. 757, if 
amended, as described herein. Mr. Coats (by proxy), Mr. Lee, 
Mr. Paul (by proxy), and Mr. Heller asked that they be recorded 
as voting no.

                          Committee Amendment

    During its consideration of the bill, the Committee adopted 
an amendment in the nature of a substitute. The amendment 
authorizes appropriation of $10 million over a five-year period 
for the prize program. The amendment offsets the authorization 
by reducing an existing carbon capture program under section 
703 of the Energy Independence and Security Act of 2007 by $5 
million in fiscal years 2012 and 2013. The amendment also 
reduces the number of advisory board members from 9 to 7 and 
eliminates compensation for service on the board.

                      Section-by-Section Analysis

    Section 1 provides a short title.
    Section 2(a) finds that it is possible to capture carbon 
dioxide from dilute sources and the atmosphere, that developing 
practical carbon dioxide capture technologies is important to 
future energy development, and that authorizing the Secretary 
of Energy to award a technology prize can provide an impetus 
for developing novel technologies. Subsection (b) states that 
the purpose of the bill is to authorize the Secretary of Energy 
to provide a technology prize for the separation of carbon 
dioxide from dilute sources using direct air capture 
technologies.
    Section 3 authorizes the Secretary of Energy to create a 
competitive technology financial awards program for carbon 
dioxide capture from media in which the concentration of carbon 
dioxide is dilute (a concentration of less than 1 percent of 
carbon dioxide by volume). Awards will be given for basic 
design, bench-scale demonstration of technology, operational 
demonstration, and commercial scale for the carbon dioxide 
capture technologies. The Secretary will receive advice 
concerning the program from a 7-person advisory board. Any 
technology that receives a financial award under this program 
must vest the intellectual property derived from the technology 
into an entity or entities incorporated in the U.S. The program 
is authorized to be appropriated $10,000,000 for the period of 
fiscal years 2012 through 2016.

                   Cost and Budgetary Considerations

    The following estimate of costs of this measure has been 
provided by the Congressional Budget Office.

S. 757--Carbon Dioxide Capture Technology Prize Act of 2011

    Summary: S. 757 would authorize appropriations for the 
Department of Energy (DOE) to provide competitive financial 
awards to support the development of advanced technologies to 
capture carbon dioxide from the atmosphere. Because the bill 
also would reduce an existing authorization of appropriations 
for other activities, CBO estimates that implementing S. 757 
would have no significant net impact on discretionary spending 
over the 2012-2016 period.
    S. 757 would not affect direct spending or revenues; 
therefore, pay-as-you-go procedures do not apply.
    S. 757 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 757 is shown in the following table. The 
costs of this legislation fall within budget function 270 
(energy).

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, in millions of dollars--
                                                         -------------------------------------------------------
                                                            2012     2013     2014     2015     2016   2012-2016
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Carbon Dioxide Capture Technology Prize:
    Authorization Level.................................       10        0        0        0        0        10
    Estimated Outlays...................................        1        3        5        1        0        10
Carbon Capture and Sequestration Research, Development
 and Demonstration:
    Authorization Level.................................       -5       -5        0        0        0       -10
    Estimated Outlays...................................       -2       -4       -3       -1        0       -10
    Total Changes:
    Authorization Level.................................        5       -5        0        0        0         0
    Estimated Outlays...................................        1       -1        2        0        0         0
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that S. 
757 will be enacted near the start of fiscal year 2012 and that 
future appropriations will be provided as specified under the 
bill. S. 757 would authorize funding of $10 million for a new 
program related to capturing carbon dioxide from the atmosphere 
and reduce, by $10 million, an existing authorization of 
funding for related activities. Taken together, CBO estimates 
that those changes would have no net impact on spending subject 
to appropriation over the 2012-2016 period.
    S. 757 would authorize the appropriation of $10 million 
over the 2012-2016 period for DOE to establish a program to 
provide competitive financial awards to promote the development 
of technologies to capture large amounts of carbon dioxide from 
certain sources, such as the air. Under the bill, a seven-
member advisory board would advise the Secretary of Energy in 
evaluating proposals and providing awards to eligible projects. 
Based on historical spending patterns for similar activities, 
CBO estimates that implementing the proposed program would cost 
$10 million over the 2012-2016 period, assuming appropriation 
of the authorized amount.
    That increase in discretionary spending would be offset by 
a reduction in amounts currently authorized to be appropriated 
for research, development, and demonstration activities related 
to carbon capture and sequestration (CCS). Public Law 110-140 
currently authorizes appropriations totaling $200 million a 
year through 2013. S. 757 would reduce that specified amount by 
$5 million in each of fiscal years 2012 and 2013, thereby 
reducing the authorization for future spending subject to 
appropriation by a total of $10 million.
    Based on historical spending patterns for CCS-related 
activities and assuming appropriations are reduced accordingly, 
CBO estimates that spending over the 2012-2016 period would be 
$10 million lower.
    Pay-As-You-Go considerations: None.
    Intergovernmental and private-sector impact: S. 757 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal costs: Megan Carroll; Impact 
on state, local, and tribal governments: Ryan Miller; Impact on 
the private sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 757.
    The bill is not a regulatory measure in the sense of 
imposing Government established standards or significant 
economic responsibilities on private individuals and 
businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 757.

                   Congressionally Directed Spending

    The bill, as reported, does not contain any congressionally 
directed spending items, limited tax benefits, or limited 
tariff benefits as defined in rule XLIV of the Standing Rules 
of the Senate.

                        Executive Communications

    The testimony provided by the Department of Energy at the 
Committee's May 12, 2011, hearing on S. 757 follows:

 Statement of Scott Klara, Deputy Laboratory Director, National Energy 
              Technology Laboratory, Department of Energy

    Thank you Chairman Bingaman, Ranking Member Barrasso, and 
members of the Committee; I appreciate the opportunity to 
discuss the Department of Energy's activities to promote the 
development of carbon capture and storage (CCS) technologies. 
My testimony will provide an overview of the Department of 
Energy's (DOE) research efforts in developing CCS technologies. 
The Administration is still reviewing S. 699 and S. 757 and 
does not have a position on either bill at this time.


          INTERAGENCY TASK FORCE ON CARBON CAPTURE AND STORAGE


    Before I discuss the Department's Clean Coal Research 
Program, I will briefly review the conclusions from the 
Interagency Task Force on CCS. In August 2010, the final report 
from the Task Force was issued summarizing the Administration's 
efforts to develop and deploy CCS technologies, and proposed a 
plan to overcome the barriers to the widespread, cost-effective 
deployment of CCS within ten years, with a goal of bringing 
five to ten commercial demonstration projects on line by 2016. 
This report is the collective work of 14 executive departments 
and federal agencies, which were tasked with developing a 
comprehensive and coordinated Federal strategy to speed the 
commercial development and deployment of clean coal 
technologies. The task force concluded that while there are no 
insurmountable technological, legal, institutional, regulatory 
or other barriers that prevent CCS from playing a role in 
reducing GHG emissions, early CCS projects face economic 
challenges related to climate policy uncertainty, first-of-a-
kind technology risks, and the current high cost of CCS 
relative to other technologies.


                      CLEAN COAL RESEARCH PROGRAM


    DOE continues to play a leadership role in the development 
of clean coal technologies with a focus on CCS. The Clean Coal 
Research Program--administered by DOE's Office of Fossil Energy 
and implemented by the National Energy Technology Laboratory--
is designed to enhance our energy security and reduce 
environmental concerns over the future use of coal by 
developing a portfolio of revolutionary clean coal 
technologies. The Program is well positioned to help overcome 
the technical challenges associated with the development of 
clean coal technologies.
    The Clean Coal Program, in partnership with the private 
sector, is focused on maximizing efficiency and environmental 
performance, while minimizing the costs of these new 
technologies. In recent years, the Program has been 
restructured to focus on clean coal technologies with CCS. The 
Program pursues the following two major strategies:
          (1) capturing and storing greenhouse gases; and
          (2) improving the efficiency of fossil energy 
        systems.
    The first strategy aims to eliminate concerns over 
emissions of greenhouse gases from fossil fueled energy 
systems. The second strategy seeks to improve the fuel-to-
energy efficiencies of these systems, thus reducing pollutant 
emissions, water usage, and carbon emissions on a per unit of 
energy basis. Collectively, these two strategies comprise the 
Clean Coal Program's approach to ensure that current and future 
fossil energy plants will have options to meet all emerging 
requirements for a safe and secure energy future.


                CORE RESEARCH AND DEVELOPMENT ACTIVITIES


    The Clean Coal Program is addressing the key technical 
challenges that confront the development and deployment of 
clean coal technologies through research on cost-effective 
capture technologies; monitoring, verification, and accounting 
technologies to ensure permanent storage; permitting issues; 
and development of advanced energy systems. The Program is also 
actively engaged in interagency efforts to address liability 
issues, public outreach, and infrastructure needs. As an 
example, today's commercially available CCS technologies would 
add around 80 percent to the cost of electricity for a new 
pulverized coal plant, and around 35 percent to the cost of 
electricity for a new integrated gasification combined cycle 
plant. The Program is aggressively pursuing developments to 
reduce these costs to less than a 35 percent increase in the 
cost of electricity for pulverized coal energy plants and less 
than a 10 percent increase in the cost of electricity for new 
gasification-based energy plants.
    Research is focused on developing technology options that 
dramatically lower the cost of capturing carbon dioxide 
(CO2) from fossil fueled energy plants. This 
research can be categorized into three technical pathways: 
post-combustion, pre-combustion, and oxy-combustion. Post-
combustion refers to capturing CO2 from the stack 
gas after a fuel has been combusted in air. Pre-combustion 
refers to a process where a hydrocarbon fuel is gasified to 
form a mixture of hydrogen and carbon dioxide, and 
CO2 is captured from the synthesis gas before it is 
combusted. Oxy-combustion is an approach where a hydrocarbon 
fuel is combusted in pure or nearly pure oxygen rather than 
air, which produces a mixture of CO2 and water that 
can easily be separated to produce pure CO2. 
Collectively, research in each of these technical pathways is 
exploring a wide range of approaches such as membranes; oxy-
combustion concepts; solid sorbents; CO2 hydrates; 
and advanced gas/liquid scrubbing technologies. These efforts 
cover not only improvements to state-of-the-art technologies 
but also development of several revolutionary concepts, such as 
metal organic frameworks, ionic liquids, and enzyme based 
systems. Coupling these developments with other advances in 
efficiency improvements and cost reduction from developments in 
gasification, turbines, and fuel cells, will help provide a 
technology base for commercial deployment of fossil energy 
systems integrated with CCS.
    The Department is the primary supporter of the National 
Carbon Capture Center (NCCC), which is a joint partnership 
between DOE and industry. The NCCC is a one of a kind, world 
class facility which offers an opportunity to validate capture 
technologies on actual gas from a coal fired power plant or 
gasification facility. Because of the ability to operate under 
a wide range of process conditions, research at the NCCC can 
effectively evaluate technologies at various levels of maturity 
for many different applications.


               REGIONAL CARBON SEQUESTRATION PARTNERSHIPS


    The Regional Carbon Sequestration Partnerships were created 
by the DOE in 2003 through a competitive solicitation. The 
Partnerships were designed to address a range of issues 
associated with geologic storage of CO2. The Clean 
Coal Program has been performing CCS field tests focused on 
injection, monitoring, verification, accounting and other 
aspects of geologic storage for many years, and the seven 
Regional Carbon Sequestration Partnerships are critical to this 
effort. These Partnerships are comprised of state agencies, 
universities, and private companies. They represent more than 
400 unique organizations in 43 States, and four Canadian 
Provinces. Geographic differences in fossil fuel use and 
potential storage sites across the United States dictate the 
use of regional approaches in addressing CCS, so each 
Partnership is focused on a specific region of the United 
States and Canada that hold similar characteristics relating to 
CCS opportunities.
    Together, the Partnerships form a network of capability, 
knowledge, and infrastructure that will help enable geologic 
storage technology to play a role in the clean energy economy. 
They represent regions encompassing 97 percent of coal-fired 
CO2 emissions, 97 percent of industrial 
CO2 emissions, 96 percent of the total land mass, 
and essentially all the geologic storage sites that can 
potentially be available for geologic carbon storage. Regional 
Partnerships are drilling wells and injecting small quantities 
of CO2 to validate the potential of key storage 
locations throughout the country. To date, the Regional 
Partnerships have injected over 1 million tons of 
CO2 at 18 small scale injection projects throughout 
the United States and Canada. These tests have helped to 
validate storage at a small scale and understand the fate of 
CO2 in different depositional systems containing 
saline water, oil, and natural gas. Several large scale 
projects are also underway that will inject several million 
tons of CO2 over the life of the projects. One of 
these projects has safely and securely injected over 2 million 
metric tons of CO2. Several more large-scale field 
tests will begin later this year.
    Over the course of these initiatives, DOE and the 
Partnerships are addressing key infrastructure issues related 
to permitting, pore space ownership, site access, liability, 
public outreach, and education. We are also jointly developing 
Best Practice Manuals on topics such as site characterization, 
site construction, operations, monitoring, mitigation, closure, 
and long-term stewardship. These manuals will serve as 
guidelines for a future geologic sequestration industry in 
their regions, and help transfer the lessons learned from DOE's 
Program to all regional stakeholders.
    Finally, DOE and the Partnerships continue to work closely 
with the Environmental Protection Agency (EPA) and other 
federal and state agencies in developing CCS regulatory 
strategies, which will provide additional certainty for future 
CCS deployments.


                   DEMONSTRATIONS AT COMMERCIAL-SCALE


    The success of the Clean Coal Program will ultimately be 
judged by the extent to which emerging technologies get 
deployed in domestic and international marketplaces. Both 
technical and financial challenges associated with the 
deployment of new ``high risk'' coal technologies must be 
overcome in order to be capable of achieving success in the 
marketplace. Commercial scale demonstrations help the industry 
understand and overcome start-up issues, address component 
integration issues, and gain the early learning commercial 
experience necessary to reduce risk and secure private 
financing and investment for future plants.
    The Department is implementing large-scale projects through 
the Regional Partnerships, the Clean Coal Power Initiative 
(CCPI), and FutureGen. Phase III of the Partnerships is focused 
on large-scale field tests of geologic carbon sequestration on 
the order of 1 million metric tons of CO2 per year, 
and are addressing the liability, regulatory, permitting, and 
infrastructure needs of these projects. As described previously 
in this statement, the Partnerships have brought an enormous 
amount of capability and experience together to work on the 
challenges of these large projects.
    The CCPI is a cost-shared partnership between the 
government and industry to develop and demonstrate advanced 
coal-based power generation technologies at the commercial 
scale. CCPI demonstrations address the reliability and 
affordability of the Nation's electricity supply from coal-
based generation. By enabling advanced technologies to overcome 
technical risks involved with scale-up and bringing them to the 
point of commercial readiness, CCPI accelerates the development 
of both advanced coal generation technologies and the 
integration of CCS with both new and existing generation 
technologies. The CCPI also facilitates the movement of 
technologies into the market place that are emerging from the 
core research and development activities. The CCPI program 
received an additional $800 million from the 2009 American 
Recovery and Reinvestment Act (Recovery Act) which, in 
combination with base funding, was used to fund four active 
CCPI projects, two pre-combustion and two post-combustion 
projects.
    In addition, a CCPI round II project has been modified to 
demonstrate CCS at a new integrated gasification combined cycle 
power plant. We are working closely with the project developers 
to comply with NEPA, air and water regulatory requirements, and 
complete initial Front End Engineering & Design (FEED) studies 
for the facilities. All five of these projects are on track to 
be operational between 2013 and 2015.
    The FutureGen Project intends to conduct novel large-scale 
testing to accelerate the deployment of a set of advanced oxy-
combustion power production technologies integrated with CCS. 
This project will be the first advanced repowering oxy-
combustion project to store CO2 in a deep saline 
geologic formation. On August 5, 2010, Secretary of Energy 
Steven Chu announced an award of $1 billion in Recovery Act 
funding to the FutureGen Alliance, Ameren Energy Resources, 
Babcock & Wilcox, and Air Liquide Process and Construction, 
Inc., to build FutureGen 2.0, a clean coal repowering program 
and carbon dioxide storage network. On February 28, 2011, the 
FutureGen Alliance selected Morgan County, Illinois, as the 
preferred location for the FutureGen 2.0 CO2 storage 
site, visitor center, research, and training facilities.
    In addition to the CCPI and FutureGen 2.0 projects, the 
Recovery Act has also helped fund more than 80 additional 
projects which includes three large scale Industrial CCS 
demonstrations, ten geologic site characterizations, forty-
three university research training projects, seven CCS research 
training centers, six Industrial CCS projects focused 
CO2 reuse, and 14 projects focused on accelerated 
component development in the core research program.


                               CONCLUSION


    CCS and related clean coal technologies can play a critical 
role in mitigating CO2 emissions under many 
potential future carbon stabilization scenarios. Nevertheless, 
challenges remain to achieving cost-effective commercial 
deployment of CCS. The Department's research programs are a 
vital step to advancing the readiness of clean coal 
technologies for future commercial deployment. I thank this 
Committee and its members for allowing me the opportunity to 
provide an overview of DOE's research efforts in developing CCS 
technologies and I look forward to your questions. The 
Administration is still reviewing S. 699 and S. 757 and does 
not have a position on either bill at this time.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 757, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

             ENERGY INDEPENDENCE AND SECURITY ACT OF 2007 


Public Law 110-140 

           *       *       *       *       *       *       *



              TITLE VII--CARBON CAPTURE AND SEQUESTRATION

Subtitle A--Carbon Capture and Sequestration Research, Development, and 
Demonstration

           *       *       *       *       *       *       *


SEC. 703. CARBON CAPTURE.

    (a) Program Establishment.-- 
         (1) In general.--The Secretary shall carry out a 
        program to demonstrate technologies for the large-scale 
        capture of carbon dioxide from industrial sources. In 
        making awards under this program, the Secretary shall 
        select, as appropriate, a diversity of capture 
        technologies to address the need to capture carbon 
        dioxide from a range of industrial sources.

           *       *       *       *       *       *       *

          (4) Requirement.--For projects that generate carbon 
        dioxide that is to be sequestered, the carbon dioxide 
        stream shall be of a sufficient purity level to allow 
        for safe transport and sequestration.
          (5) Cost-sharing.--The cost-sharing requirements of 
        section 988 of the Energy Policy Act of 2005 (42 U.S.C. 
        16352) for research and development projects shall 
        apply to this section.
    (b) Carbon Dioxide Capture Technology Prize.--
          (1) Definitions.--In this subsection:
                  (A) Board.--The term ``Board'' means the 
                Carbon Dioxide Capture Technology Advisory 
                Board established by paragraph (6).
                  (B) Dilute.--The term ``dilute'' means a 
                concentration of less than 1 percent by volume.
                  (C) Intellectual property.--The term 
                ``intellectual property'' means--
                          (i) an invention that is patentable 
                        under title 35, United States Code; and
                          (ii) any patent on an invention 
                        described in clause (i).
                  (D) Secretary.--The term ``Secretary'' means 
                the Secretary of Energy or designee, in 
                consultation with the Board.
          (2) Authority.--Not later than 1 year after the date 
        of enactment of the Carbon Dioxide Capture Technology 
        Prize Act of 2011, as part of the program carried out 
        under this section, the Secretary shall establish and 
        award competitive technology financial awards for 
        carbon dioxide capture from media in which the 
        concentration of carbon dioxide is dilute.
          (3) Duties.--In carrying out this subsection, the 
        Secretary shall--
                  (A) subject to paragraph (4), develop 
                specific requirements for--
                          (i) the competition process;
                          (ii) minimum performance standards 
                        for qualifying projects; and
                          (iii) monitoring and verification 
                        procedures for approved projects;
                  (B) establish minimum levels for the capture 
                of carbon dioxide from a dilute medium that are 
                required to be achieved to qualify for a 
                financial award described in subparagraph (C); 
                and
                  (C) offer financial awards for--
                          (i) a design for a promising capture 
                        technology;
                          (ii) a successful bench-scale 
                        demonstration of a capture technology;
                          (iii) a design for a technology 
                        described in clause (i) that will--
                                  (I) be operated on a 
                                demonstration scale; and
                                  (II) achieve significant 
                                reduction in the level of 
                                carbon dioxide; and
                          (iv) an operational capture 
                        technology on a commercial scale that 
                        meets the minimum levels described in 
                        subparagraph (B).
          (4) Public participation.--In carrying out paragraph 
        (3)(A), the Board shall--
                  (A) provide notice of and, for a period of at 
                least 60 days, an opportunity for public 
                comment on, any draft or proposed version of 
                the requirements described in paragraph (3)(A); 
                and
                  (B) take into account public comments 
                received in developing the final version of 
                those requirements.
          (5) Peer review.--No financial awards may be provided 
        under this subsection 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 Secretary.
          (6) Carbon dioxide capture technology advisory 
        board.--
                  (A) Establishment.--There is established an 
                advisory board to be known as the ``Carbon 
                Dioxide Capture Technology Advisory Board''.
                  (B) Composition.--The Board shall be composed 
                of 7 members appointed by the President that 
                provide expertise in--
                          (i) climate science;
                          (ii) physics;
                          (iii) chemistry;
                          (iv) biology;
                          (v) engineering;
                          (vi) economics;
                          (vii) business management; and
                          (viii) such other disciplines as the 
                        Secretary determines to be necessary to 
                        achieve the purposes of this 
                        subsection.
                  (C) 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.
                  (D) Meetings.--The Board shall meet at the 
                call of the Chairperson.
                  (E) Quorum.--A majority of the members of the 
                Board shall constitute a quorum, but a lesser 
                number of members may hold hearings.
                  (F) Chairperson and vice chairperson.--The 
                Board shall select a Chairperson and Vice 
                Chairperson from among the members of the 
                Board.
                  (G) Duties.--The Board shall advise the 
                Secretary on carrying out the duties of the 
                Secretary under this subsection.
          (7) Intellectual property.--
                  (A) In general.--As a condition of receiving 
                a financial award under this subsection, 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.
                  (B) Reservation of license.--The United 
                States--
                          (i) 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 subparagraph (A); 
                        but
                          (ii) shall not, in the exercise of a 
                        license reserved under clause (i), 
                        publicly disclose proprietary 
                        information relating to the license.
                  (C) Transfer of title.--Title to any 
                intellectual property described in subparagraph 
                (A) 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.
          (8) Termination of authority.--The Board and all 
        authority provided under this subsection shall 
        terminate on the date that is 5 years after the date of 
        enactment of the Carbon Dioxide Capture Technology 
        Prize Act of 2011.
    [(b)] (c) Authorization of Appropriations.--[There is]
          (1) In general.--There is authorized to be 
        appropriated to the Secretary to carry out [this 
        section] subsection (a) $200,000,000 per year for 
        fiscal years 2009 through [2013] 2011 and $195,000,000 
        for each of fiscal years 2012 and 2013.
          (2) Carbon dioxide capture technology prize.--There 
        is authorized to be appropriated to the Secretary to 
        carry out subsection (b) $10,000,000 for the period of 
        fiscal years 2012 through 2016.

                                  
