[Senate Report 115-328]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 435
115th Congress       }                        {                Report
                                 SENATE
 2d Session          }                        {                115-328

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



 
 UTILIZING SIGNIFICANT EMISSIONS WITH INNOVATIVE TECHNOLOGIES ACT, OR 
                               USE IT ACT

                                _______
                                

               September 4, 2018.--Ordered to be printed

                                _______
                                

      Mr. Barrasso, from the Committee on Environment and Public 
                     Works, submitted the following

                              R E P O R T

                         [To accompany S. 2602]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred the bill (S. 2602) to support carbon dioxide 
utilization and direct air capture research, to facilitate the 
permitting and development of carbon capture, utilization, and 
sequestration projects and carbon dioxide pipelines, and for 
other purposes, having considered the same, reports favorably 
thereon with an amendment in the nature of a substitute and 
recommends that the bill, as amended, do pass.

                    General Statement and Background

    Carbon capture, utilization and sequestration (CCUS) is a 
process that involves capturing manmade carbon dioxide 
(CO2) and reusing or storing the carbon dioxide to 
keep it from entering into or persisting in the atmosphere. The 
beginnings of CCUS can be traced to the early 1970s, when 
captured carbon dioxide was first injected into oil fields to 
improve oil recovery.\1\ Since then, the process of capturing 
and storing carbon dioxide has become a proven type of 
technology used around the world. Seventeen large-scale CCUS 
projects are in operation globally, nine of which are located 
in the United States.\2\ While carbon dioxide has been used 
commercially for decades in enhanced oil recovery operations, 
other existing and potential commercial uses and markets 
continue to develop for the carbon dioxide captured by CCUS 
projects.\3\ The number of commercial products that can utilize 
captured carbon dioxide continues to grow with ongoing research 
and investments in new processes and technologies.\4\ In short, 
CCUS can and does work in a variety of applications, which are 
increasing every day.
---------------------------------------------------------------------------
    \1\IEA Greenhouse GHG R&D Programme, ``A Brief History of CCS and 
Current Status,'' http://ieaghg.org/docs/General_Docs/Publications/
Information_Sheets_for_CCS_2.pdf.
    \2\Global CCS Institute, ``Large Scale CCS facilities,'' http://
www.globalccsinstitute.com/projects/large-scale-ccs-projects.
    \3\Mead Gruver, ``10 Teams Advance in International Carbon Dioxide 
Competition'' (Apr. 9, 2018), https://apnews.com/
587d7a3ca086441aaaf3b7ad649e0e73.
    \4\Statement of Dr. Feng Jiao, Associate Professor of Chemical & 
Biomolecular Engineering and Associate Director for the Center for 
Catalytic Science & Technology, University of Delaware, Hearing Before 
the U.S. Senate Committee on Environment and Public Works entitled 
``Utilizing Significant Emissions with Innovative Technologies Act'' 
(Apr. 11, 2018), https://www.epw.senate.gov/public/_cache/files/8/3/
83715232-4c6a-41af-b7bd-96bb6a94612c/
2CE181D89487605F0E3BE6A80B201DAB.04.11.2018-jiao-testimony.pdf.
---------------------------------------------------------------------------
    The USE IT Act supports continued research into the 
capture, use, and storage of carbon dioxide. Specifically, the 
USE IT Act directs EPA, in consultation with the Department of 
Energy, to support CCUS research and technologies under 
existing authority in Clean Air Act Section 103(g). Under this 
authority, the USE IT Act focuses on three key areas. The first 
is to support research that reduces carbon dioxide in the air 
through direct air capture, a promising and quickly developing 
suite of technologies.\5\ The second is to support projects 
that utilize carbon dioxide generated at an industrial source, 
including research into existing and emerging commercial uses 
of captured carbon dioxide.\6\ Finally, the bill directs EPA to 
evaluate potential benefits and risks associated with the 
increased, long-term storage of captured carbon dioxide in deep 
saline formations.\7\
---------------------------------------------------------------------------
    \5\Statement of Noah Deich, Executive Director, Center for Carbon 
Removal, Hearing Before the U.S. Senate Committee on Environment and 
Public Works entitled ``Utilizing Significant Emissions with Innovative 
Technologies Act'' (Apr. 11, 2018), https://www.epw.senate.gov/public/
index.cfm/hearings?Id=55DD866C-BEE0-49C7-8491-
E042F051C947&Statement_id=AC1A42A9-4E30-417E-AA72-29F7C5E52F6C.
    \6\Statement of Dr. Mark A. Northam, Executive Director, School of 
Energy Resources, University of Wyoming, Hearing Before the U.S. Senate 
Committee on Environment and Public Works entitled ``Utilizing 
Significant Emissions with Innovative Technologies Act'' (Apr. 11, 
2018), https://www.epw.senate.gov/public/_cache/files/5/3/536c8171-
f4fd-4bbe-87de-b128ad309d40/
B233F594209CC006B1950528AA5CD8A8.04.11.2018-northam-testimony.pdf.
    \7\See Dr. Julio S. Friedmann, CEO, Carbon Wrangler, LLC, Responses 
to Questions for the Record, Hearing Before the U.S. Senate Committee 
on Environment and Public Works entitled ``Utilizing Significant 
Emissions with Innovative Technologies Act'' (Apr. 11, 2018).
---------------------------------------------------------------------------
    Beyond federal research support, adequate infrastructure is 
critical to accelerate the development of CCUS projects. If 
more carbon dioxide is to be captured and utilized or stored, a 
more robust carbon dioxide pipeline network is needed. 
Permitting of carbon dioxide pipelines can require state and 
federal involvement, and the types of permits required can vary 
based on where a pipeline is located. Clarification of the 
appropriate roles of the federal government versus states, as 
well as better state and federal coordination, would facilitate 
the permitting process. In 2015, the Department of Energy 
concluded the federal government could improve the federal 
permitting process for carbon dioxide pipelines by taking ``a 
convening role to promote communication, coordination, and 
sharing of lessons learned and best practices among states that 
are already involved in siting and regulating CO2 
pipelines or that may have CO2 pipeline projects 
proposed within their borders in the future.''\8\
---------------------------------------------------------------------------
    \8\U.S. Department of Energy, Quadrennial Energy Review, Vol. 1 at 
7-26 (2015), https://www.energy.gov/sites/prod/files/2015/08/f25/
QER%20Chapter%20VII%20Environment%20April%202015.pdf.
---------------------------------------------------------------------------
    The USE IT Act recognizes the need for greater 
clarification and coordination regarding CCUS projects and 
carbon dioxide pipelines. The bill addresses this issue by 
clarifying current law, making the statutory language explicit 
that CCUS projects and carbon dioxide pipelines can be 
considered ``covered projects'' under Title XLI of the FAST Act 
(FAST 41). In that title, Congress authorized the Federal 
Permitting Improvement Steering Council to improve the 
efficiency and timeliness of the federal permitting process for 
large infrastructure projects that are ``covered projects.'' 
``Covered projects'' are currently defined in the statute to 
include ``construction of infrastructure for renewable or 
conventional energy production, electricity transmission, 
surface transportation, aviation, ports and waterways, water 
resource projects, broadband, pipelines, manufacturing, or any 
other sector as determined by a majority vote of the Council'' 
that meet other eligibility criteria in the statute. 42 U.S.C. 
4370m(6). Under this language, a Wyoming carbon dioxide 
pipeline, the Riley Ridge to Natrona Project, has already been 
designated as a ``covered project.''\9\ While the existing 
definition of ``covered project'' is broad enough to include 
carbon dioxide pipelines and CCUS projects, the amendment would 
make it clearer by explicitly stating that carbon dioxide 
pipelines and CCUS projects are eligible.
---------------------------------------------------------------------------
    \9\Federal Permitting Improvement Steering Council, ``Denbury Riley 
Ridge to Natrona Project CO2,'' https://
www.permits.performance.gov/projects/denbury-riley-ridge-natrona-
project-co2.
---------------------------------------------------------------------------
    The USE IT Act also tasks the Council on Environmental 
Quality (CEQ) with leading the development of a federal report 
focused on CCUS projects and carbon dioxide pipelines. The 
report would compile federal permitting and review information, 
commercial uses for captured carbon dioxide, gaps in the 
current federal regulatory framework, federal financing 
mechanisms, and lifecycle analysis developed under section 
45Q(f)(5)(B) of the Internal Revenue Code. After the report is 
finalized and submitted to Congress, the USE IT Act requires 
CEQ to develop permitting guidance for CCUS projects and carbon 
dioxide pipelines. The guidance must facilitate reviews 
associated with the deployment of CCUS projects and carbon 
dioxide pipelines and support the ``efficient, orderly, and 
responsible'' development of such projects. That phrase means 
that development is completed in an expeditious manner while 
maintaining environmental, health, and safety protections. 
Before CEQ finalizes the guidance, the Council must notify the 
public and solicit comment. To improve coordination and ensure 
that states' and other interested parties' input informs the 
guidance, the USE IT Act establishes regional task forces to 
review the federal and state regulatory frameworks for CCUS and 
related issues. The task forces are to report best practices 
and other data valuable for CCUS permitting processes and 
provide feedback to the federal government to ensure the 
permitting process is completed in an expeditious manner while 
maintaining environmental, health, and safety protections.

                     Objectives of the Legislation

    The objectives of the USE IT Act are to support the 
accelerated development and deployment of CCUS projects and 
carbon dioxide pipelines. The USE IT Act provides federal 
research support and directs greater federal interagency and 
external stakeholder coordination.

                      Section-by-Section Analysis


           TITLE I--ENCOURAGING PROJECTS TO REDUCE EMISSIONS

Section 101. Research, investigation, training, and other activities

    Section 103(g) of the Clean Air Act authorizes EPA to 
support research to reduce carbon dioxide from stationary 
sources. Section 101 of the bill directs EPA, in consultation 
with the Department of Energy, to conduct certain carbon 
dioxide research and development activities under this existing 
authority.
    First, the EPA Administrator is directed to administer a 
competitive prize program that awards funds to direct air 
capture research projects. The section establishes a Direct Air 
Capture Technology Advisory Board of experts to advise the 
Administrator. The USE IT Act authorizes up to $25 million in 
funding and sunsets the program at the end of 2028.
    Second, the Administrator is directed to provide technical 
and financial assistance to carbon dioxide utilization 
projects. This assistance will support projects to transform 
carbon dioxide generated by industrial facilities in the United 
States into a commercial product, or as an input to a 
commercial product. The USE IT Act authorizes up to $50 million 
in funding, available until expended.
    Third, the Administrator is directed to prepare a report 
that identifies potential risks and benefits to project 
developers associated with increased storage of carbon dioxide 
captured from stationary sources in deep saline formations. The 
Administrator is to evaluate existing research and make 
recommendations about how to address any identified potential 
risks.

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

Section 201. Inclusion of carbon capture infrastructure projects

    Section 201 amends existing law to clarify that ``covered 
projects'' eligible for the environmental permitting process 
established by Title XLI of the FAST Act (FAST 41) include 
construction of CCUS projects as well as carbon dioxide 
pipelines.

Section 202. Development of Carbon Capture, Utilization, and 
        Sequestration permitting report, guidance, and regional 
        permitting task force

    Section 202 directs the Chair of the CEQ to coordinate 
preparation of an interagency report on CCUS facilities and 
carbon dioxide pipelines. CEQ will then issue permitting 
guidance informed by that report to expedite the CCUS 
permitting process while maintaining environmental, health, and 
safety protections. On an ongoing basis, at least two regional 
task forces that cover different geographical areas and are 
comprised of diverse stakeholders are to provide feedback to 
the Chair on the guidance and related issues.

                          Legislative History

    On March 22, 2018, Senator Barrasso introduced S. 2602, the 
Utilizing Significant Emissions with Innovative Technologies 
Act, or USE IT Act, with Senators Whitehouse, Capito, and 
Heitkamp. The bill was referred to the Senate Committee on 
Environment and Public Works.

                                Hearings

    A committee hearing was held on S. 2602 on April 11, 2018.

                             Rollcall Votes

    On May 22, 2018, the Committee on Environment and Public 
Works met to consider S. 2602. A substitute amendment offered 
by Senator Barrasso and cosponsored by Senators Carper, Capito, 
Whitehouse, Duckworth, and Heitkamp was ordered favorably 
reported by voice vote. No roll call votes were taken.

                      Regulatory Impact Statement

    In compliance with section 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee finds that S. 2602 
does not create any additional regulatory burdens, nor will it 
cause any adverse impact on the personal privacy of 
individuals.

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4), the Committee notes that the Congressional 
Budget Office found, ``S. 2602 contains no intergovernmental or 
private-sector mandates as defined in the Unfunded Mandates 
Reform Act (UMRA).''

                          Cost of Legislation

    Section 403 of the Congressional Budget and Impoundment 
Control Act requires that a statement of the cost of the 
reported bill, prepared by the Congressional Budget Office, be 
included in the report. That statement follows:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 13, 2018.
Hon. John Barrasso,
Chairman, Committee on Environment and Public Works,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 2602, the USE IT 
Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Jon Sperl.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

S. 2602--USE IT Act

    Summary: S. 2602 would authorize appropriations for the 
Environmental Protection Agency (EPA) to support the research 
and development of advanced technologies to capture carbon 
dioxide (CO2) from the atmosphere so that it may be 
permanently stored or used within commercial products or 
processes. Under the bill, infrastructure projects that capture 
CO2 would qualify for certain expedited review and 
permitting procedures. Finally, the bill would require the 
Council on Environmental Quality (CEQ) to facilitate the 
expansion of CO2 storage projects and 
infrastructure.
    Using information from EPA and CEQ, CBO estimates that 
implementing S. 2602 would cost $73 million over the next five 
years, assuming appropriation of the authorized and necessary 
amounts.
    Enacting S. 2602 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    CBO estimates that enacting S. 2602 would not increase net 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    S. 2602 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 effect of S. 2602 is shown in the following table. 
The costs of the legislation fall within budget function 300 
(natural resources and environment).

----------------------------------------------------------------------------------------------------------------
                                                                   By fiscal year, in millions of dollars--
                                                            ----------------------------------------------------
                                                              2018   2019   2020   2021   2022   2023  2019-2023
----------------------------------------------------------------------------------------------------------------
                                 INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
CO2 Direct Air Capture Program and Advisory Board:
    Authorization Level....................................      0     25      0      0      0      0         25
    Estimated Outlays......................................      0      1      1      6      7      7         22
CO2 Utilization Research Program:
    Authorization Level....................................      0     50      0      0      0      0         50
    Estimated Outlays......................................      0      *      1      6     16     21         44
Other Costs:
    Estimated Authorization Level..........................      0      2      1      1      1      2          7
    Estimated Outlays......................................      0      2      1      1      1      2          7
    Total Costs:...........................................
        Estimated Authorization Level......................      0     77      1      1      1      2         82
        Estimated Outlays..................................      0      3      3     13     24     30         73
----------------------------------------------------------------------------------------------------------------
* = between zero and $500,000; CO2 = carbon dioxide.

    Basis of estimate: For this estimate, CBO assumes that S. 
2602 will be enacted near the end of 2018 and that the 
authorized and necessary amounts will be appropriated for each 
fiscal year beginning in 2019. CBO estimates that implementing 
S. 2602 would cost $73 million over the 2019-2023 period.
    S. 2602 would authorize appropriations for EPA to carry out 
two programs to support the research and development of 
advanced technologies to capture CO2 from the 
atmosphere.

CO2 Direct Air Capture Program and Advisory Board

    The bill would authorize the appropriation of $25 million 
for EPA to provide competitive financial awards to creators of 
technologies capable of economically capturing large amounts of 
CO2 directly from the air--known as direct air 
capture. The bill would establish a technology board, 
comprising nine members, to advise EPA on the terms of 
financial awards, program requirements, and the agency's 
procedures for monitoring and verifying the activities of 
entities that have received awards.
    Using information from EPA, CBO estimates that implementing 
the direct air capture program would cost about $21 million 
over the 2019-2023 period. Of that amount, CBO estimates that 
$4 million would be required to cover the costs of the board 
and program staff and that $17 million would be awarded to 
projects that capture CO2. CBO expects that the 
first awards would be made in 2021 and would range in size from 
$1 million to $2 million.

CO2 Utilization Research Program

    The bill also would authorize the appropriation of $50 
million for EPA to provide grants and technical assistance to 
support the research and development of technologies that can 
use captured CO2 for commercial products or 
purposes. Using information from EPA, CBO estimates that 
implementing that CO2 research program would cost 
about $45 million over the 2019-2023 period. Of that amount, 
CBO estimates that about $5 million would be required to cover 
the costs of program staff providing technical assistance and 
that $40 million would be provided as grants to CO2 
utilization projects. CBO expects that the first grants would 
be made in 2021.

Other Costs

    In addition to the amounts specified above, CBO estimates 
that federal agencies would spend an additional $7 million over 
the 2019-2023 period to implement other requirements in the 
legislation; such spending would be subject to appropriation of 
the necessary amounts.
    Under S. 2602 infrastructure projects that capture, store, 
transport, or use CO2 would qualify for expedited 
federal review and permitting procedures. Using information 
from EPA, CBO expects that the expedited procedures, combined 
with financial assistance for projects authorized by the bill, 
would likely increase the number of projects that apply for 
permits for the underground storage of CO2. To meet 
the increase in demand, CBO estimates that EPA's Office of 
Water would need to gradually hire five additional employees 
(at a cost of about $150,000 a year for each) to review permits 
for underground CO2 injection and to perform other 
regulatory duties related to protecting drinking water quality 
by 2023 at a cost of $2.5 million over the five year period.
    The bill also would require EPA to produce a report every 
two years evaluating the CO2 capture technologies 
supported by the agency's research programs, and would require 
the agency to produce a report on how to reduce the risks of 
CO2 storage in deep saline formations. Using 
information from the agency, CBO estimates that EPA would spend 
$2 million to produce those reports over the next five years.
    Finally, the bill would require CEQ to establish two task 
forces to facilitate the expansion of CO2 storage 
projects and infrastructure by streamlining regulatory 
approaches and providing technical assistance to states. Under 
the bill, CBO expects that each task force would consist of 10 
members, that they would meet several times per year beginning 
in 2020, and that they would terminate after 2023. Using 
information from CEQ, CBO estimates that the agency would 
require three additional employees to provide administrative 
support to the task forces and to produce guidance and biennial 
reports required by the bill. CBO estimates that those 
operating costs would total $2.5 million over the 2019-2023 
period.
    Pay-As-You-Go considerations: None.
    Increase in long-term direct spending and deficits: CBO 
estimates that enacting S. 2602 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2029.
    Mandates: S. 2602 contains no intergovernmental or private-
sector mandates as defined in UMRA.
    Estimate prepared by: Federal costs: Jon Sperl; Mandates: 
Jon Sperl.
    Estimate reviewed by: Kim Cawley, Chief, Natural and 
Physical Resources Cost Estimates Unit; H. Samuel Papenfuss, 
Deputy Assistant Director for Budget Analysis.

                        Changes in Existing Law

    In compliance with section 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill 
as 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:

           *       *       *       *       *       *       *


CLEAN AIR ACT

           *       *       *       *       *       *       *



             TITLE I--AIR POLLUTION PREVENTION AND CONTROL


              Part A--Air Quality and Emission Limitations

  Sec. 103. (a) * * *

           *       *       *       *       *       *       *

  (c) Air Pollutant Monitoring, Analysis, Modeling, and 
Inventory Research.--In carrying out subsection (a), the 
Administrator shall conduct a program of research, testing, and 
development of methods for sampling, measurement, monitoring, 
analysis, and modeling of air pollutants. Such program shall 
include the following elements:
          (1) * * *

           *       *       *       *       *       *       *

          (3) Development of improved methods and technologies 
        for sampling, measurement, monitoring, analysis, and 
        modeling to increase understanding of the sources of 
        ozone [percursors] precursors, ozone formation, ozone 
        transport, regional influences on urban ozone, regional 
        ozone trends, and interactions of ozone with other 
        pollutants. Emphasis shall be placed on those 
        techniques which--

           *       *       *       *       *       *       *

  (g) Pollution Prevention and Emissions Control.--
    [In carrying out]
          (1) In general.--In carrying out subsection (a), the 
        Administrator shall conduct a basic engineering 
        research and technology program to develop, evaluate, 
        and demonstrate nonregulatory strategies and 
        technologies for air pollution prevention. [Such 
        strategies and technologies shall be developed]
          (2) Participation requirement.--Such strategies and 
        technologies described in paragraph (1) shall be 
        developed with priority on those pollutants which pose 
        a significant risk to human health and the environment, 
        and with opportunities for participation by industry, 
        public interest groups, scientists, States, 
        institutions of higher education, and other interested 
        persons in the development of such strategies, and 
        technologies. [Such program]
          (3) Program inclusions.--The program under this 
        subsection shall include the following elements:
          [(1)]
                  (A) Improvements in nonregulatory strategies 
                and technologies for preventing or reducing 
                multiple air pollutants, including sulfur 
                oxides, nitrogen oxides, heavy metals, PM-10 
                (particulate matter), carbon monoxide, and 
                carbon dioxide, from stationary sources, 
                including fossil fuel power plants. Such 
                strategies and technologies shall include 
                improvements in the relative cost effectiveness 
                and long-range implications of various air 
                pollutant reduction and nonregulatory control 
                strategies such as energy conservation, 
                including end-use efficiency, and fuel-
                switching to cleaner fuels. Such strategies and 
                technologies shall be considered for existing 
                and new facilities.
          [(2)]
                  (B) Improvements in nonregulatory strategies 
                and technologies for reducing air emissions 
                from area sources.
          [(3)]
                  (C) Improvements in nonregulatory strategies 
                and technologies for preventing, detecting, and 
                correcting accidental releases of hazardous air 
                pollutants.
          [(4)]
                  (D) Improvements in nonregulatory strategies 
                and technologies that dispose of tires in ways 
                that avoid adverse air quality impacts.
[Nothing]
          (4) Effect of subsection.--Nothing in this subsection 
        shall be construed to authorize the imposition on any 
        person of air pollution control requirements. [The 
        Administrator]
          (5) Coordination and avoidance of duplication.--The 
        Administrator shall consult with other appropriate 
        Federal agencies to ensure coordination and to avoid 
        duplication of activities authorized under this 
        subsection.
          (6) Certain carbon dioxide activities.--
                  (A) In general.--In carrying out paragraph 
                (3)(A) with respect to carbon dioxide, the 
                Administrator shall carry out the activities 
                described in each of subparagraphs (B), (C), 
                (D), and (E).
                  (B) Direct air capture research.--
                          (i) Definitions.--In this 
                        subparagraph:
                                  (I) Board.--The term `Board' 
                                means the Direct Air Capture 
                                Technology Advisory Board 
                                established by clause (iii)(I).
                                  (II) Dilute.--The term 
                                `dilute' means a concentration 
                                of less than 1 percent by 
                                volume.
                                  ``(III) Direct air capture.--
                                          (aa) In general.--The 
                                        term `direct air 
                                        capture', with respect 
                                        to a facility, 
                                        technology, or system, 
                                        means that the 
                                        facility, technology, 
                                        or system uses carbon 
                                        capture equipment to 
                                        capture carbon dioxide 
                                        directly from the air.
                                          (bb) Exclusion.--The 
                                        term `direct air 
                                        capture' does not 
                                        include any facility, 
                                        technology, or system 
                                        that captures carbon 
                                        dioxide--
                                                  (AA) that is 
                                                deliberately 
                                                released from a 
                                                naturally 
                                                occurring 
                                                subsurface 
                                                spring; or
                                                  (BB) using 
                                                natural 
                                                photosynthesis.
                                  (IV) Intellectual property.--
                                The term `intellectual 
                                property' means--
                                          (aa) an invention 
                                        that is patentable 
                                        under title 35, United 
                                        States Code; and
                                          (bb) any patent on an 
                                        invention described in 
                                        item (aa).
                          (ii) Technology prizes.--
                                  (I) In general.--Not later 
                                than 1 year after the date of 
                                enactment of the USE IT Act, 
                                the Administrator, in 
                                consultation with the Secretary 
                                of Energy, shall establish a 
                                program to provide, and shall 
                                provide, financial awards on a 
                                competitive basis for direct 
                                air capture from media in which 
                                the concentration of carbon 
                                dioxide is dilute.
                                  (II) Duties.--In carrying out 
                                this clause, the Administrator 
                                shall--
                                          (aa) subject to 
                                        subclause (III), 
                                        develop specific 
                                        requirements for--
                                                  (AA) the 
                                                competition 
                                                process; and
                                                  (BB) 
                                                monitoring and 
                                                verification 
                                                procedures for 
                                                approved 
                                                projects;
                                          (bb) offer financial 
                                        awards for a project 
                                        designed--
                                                  (AA) to 
                                                capture more 
                                                than 10,000 
                                                tons of carbon 
                                                dioxide per 
                                                year; and
                                                  (BB) to be 
                                                deployed at a 
                                                cost of less 
                                                than $200 per 
                                                ton of carbon 
                                                dioxide 
                                                captured; and
                                          (cc) to the maximum 
                                        extent practicable, 
                                        make financial awards 
                                        to geographically 
                                        diverse projects, 
                                        including at least--
                                                  (AA) 1 
                                                project in a 
                                                coastal State; 
                                                and
                                                  (BB) 1 
                                                project in a 
                                                rural State.
                                  (III) Public participation.--
                                In carrying out subclause 
                                (II)(aa), the Administrator 
                                shall--
                                          (aa) provide notice 
                                        of and, for a period of 
                                        not less than 60 days, 
                                        an opportunity for 
                                        public comment on, any 
                                        draft or proposed 
                                        version of the 
                                        requirements described 
                                        in subclause (II)(aa); 
                                        and
                                          (bb) take into 
                                        account public comments 
                                        received in developing 
                                        the final version of 
                                        those requirements.
                                  (IV) Peer review.--No 
                                financial awards may be 
                                provided under this clause 
                                until the proposal for which 
                                the award is sought has been 
                                peer reviewed in accordance 
                                with such standards for peer 
                                review as are established by 
                                the Administrator.
                          (iii) Direct air capture technology 
                        advisory board.--
                                  (I) Establishment.--There is 
                                established an advisory board 
                                to be known as the `Direct Air 
                                Capture Technology Advisory 
                                Board'.
                                  (II) Composition.--The Board 
                                shall be composed of 9 members 
                                appointed by the Administrator, 
                                who shall provide expertise 
                                in--
                                          (aa) climate science;
                                          (bb) physics;
                                          (cc) chemistry;
                                          (dd) biology;
                                          (ee) engineering;
                                          (ff) economics;
                                          (gg) business 
                                        management; and
                                          (hh) such other 
                                        disciplines as the 
                                        Administrator 
                                        determines to be 
                                        necessary to achieve 
                                        the purposes of this 
                                        subparagraph.
                                  (III) Term; vacancies.--
                                          (aa) Term.--A member 
                                        of the Board shall 
                                        serve for a term of 6 
                                        years.
                                          (bb) Vacancies.--A 
                                        vacancy on the Board--
                                                  (AA) shall 
                                                not affect the 
                                                powers of the 
                                                Board; and
                                                  (BB) shall be 
                                                filled in the 
                                                same manner as 
                                                the original 
                                                appointment was 
                                                made.
                                  (IV) Initial meeting.--Not 
                                later than 30 days after the 
                                date on which all members of 
                                the Board have been appointed, 
                                the Board shall hold the 
                                initial meeting of the Board.
                                  (V) Meetings.--The Board 
                                shall meet at the call of the 
                                Chairperson.
                                  (VI) Quorum.--A majority of 
                                the members of the Board shall 
                                constitute a quorum, but a 
                                lesser number of members may 
                                hold hearings.
                                  (VII) Chairperson and vice 
                                chairperson.--The Board shall 
                                select a Chairperson and Vice 
                                Chairperson from among the 
                                members of the Board.
                                  (VIII) Compensation.--Each 
                                member of the Board may be 
                                compensated at not to exceed 
                                the daily equivalent of the 
                                annual rate of basic pay in 
                                effect for a position at level 
                                V of the Executive Schedule 
                                under section 5316 of title 5, 
                                United States Code, for each 
                                day during which the member is 
                                engaged in the actual 
                                performance of the duties of 
                                the Board.
                                  (IX) Duties.--The Board shall 
                                advise the Administrator on 
                                carrying out the duties of the 
                                Administrator under this 
                                subparagraph.
                                  (X) FACA.--The Federal 
                                Advisory Committee Act (5 
                                U.S.C. App.) shall apply to the 
                                Board.
                          (iv) Intellectual property.--
                                  (I) In general.--As a 
                                condition of receiving a 
                                financial award under this 
                                subparagraph, an applicant 
                                shall agree to vest the 
                                intellectual property of the 
                                applicant derived from the 
                                technology in 1 or more 
                                entities that are incorporated 
                                in the United States.
                                  (II) Reservation of 
                                license.--The United States--
                                          (aa) may reserve a 
                                        nonexclusive, 
                                        nontransferable, 
                                        irrevocable, paid-up 
                                        license, to have 
                                        practiced for or on 
                                        behalf of the United 
                                        States, in connection 
                                        with any intellectual 
                                        property described in 
                                        subclause (I); but
                                          (bb) shall not, in 
                                        the exercise of a 
                                        license reserved under 
                                        item (aa), publicly 
                                        disclose proprietary 
                                        information relating to 
                                        the license.
                                  (III) Transfer of title.--
                                Title to any intellectual 
                                property described in subclause 
                                (I) shall not be transferred or 
                                passed, except to an entity 
                                that is incorporated in the 
                                United States, until the 
                                expiration of the first patent 
                                obtained in connection with the 
                                intellectual property.
                          (v) Authorization of 
                        appropriations.--There is authorized to 
                        be appropriated to carry out this 
                        subparagraph $25,000,000, to remain 
                        available until expended.
                          (vi) Termination of authority.--The 
                        Board and all authority provided under 
                        this subparagraph shall terminate on 
                        December 31, 2028.
                  (C) Carbon dioxide utilization research.--
                          (i) Definition of carbon dioxide 
                        utilization.--In this subparagraph, the 
                        term `carbon dioxide utilization' 
                        refers to technologies or approaches 
                        that lead to the use of carbon 
                        dioxide--
                                  (I) through the fixation of 
                                carbon dioxide through 
                                photosynthesis or 
                                chemosynthesis, such as through 
                                the growing of algae or 
                                bacteria;
                                  (II) through the chemical 
                                conversion of carbon dioxide to 
                                a material or chemical compound 
                                in which the carbon dioxide is 
                                securely stored; or
                                  (III) through the use of 
                                carbon dioxide for any other 
                                purpose for which a commercial 
                                market exists, as determined by 
                                the Administrator.
                          (ii) Program.--The Administrator, in 
                        consultation with the Secretary of 
                        Energy, shall carry out a research and 
                        development program for carbon dioxide 
                        utilization to promote existing and new 
                        technologies that transform carbon 
                        dioxide generated by industrial 
                        processes into a product of commercial 
                        value, or as an input to products of 
                        commercial value.
                          (iii) Technical and financial 
                        assistance.--Not later than 2 years 
                        after the date of enactment of the USE 
                        IT Act, in carrying out this 
                        subsection, the Administrator, in 
                        consultation with the Secretary of 
                        Energy, shall support research and 
                        infrastructure activities relating to 
                        carbon dioxide utilization by providing 
                        technical assistance and financial 
                        assistance in accordance with clause 
                        (iv).
                          (iv) Eligibility.--To be eligible to 
                        receive technical assistance and 
                        financial assistance under clause 
                        (iii), a carbon dioxide utilization 
                        project shall--
                                  (I) have access to an 
                                emissions stream generated by a 
                                stationary source within the 
                                United States that is capable 
                                of supplying not less than 250 
                                metric tons per day of carbon 
                                dioxide for research;
                                  (II) have access to adequate 
                                space for a laboratory and 
                                equipment for testing small-
                                scale carbon dioxide 
                                utilization technologies, with 
                                onsite access to larger test 
                                bays for scale-up; and
                                  (III) have existing 
                                partnerships with institutions 
                                of higher education, private 
                                companies, States, or other 
                                government entities.
                          (v) Coordination.--In supporting 
                        carbon dioxide utilization projects 
                        under this paragraph, the Administrator 
                        shall consult with the Secretary of 
                        Energy, and, as appropriate, with the 
                        head of any other relevant Federal 
                        agency, States, the private sector, and 
                        institutions of higher education to 
                        develop methods and technologies to 
                        account for the carbon dioxide 
                        emissions avoided by the carbon dioxide 
                        utilization projects, including the 
                        consideration of lifecycle analysis 
                        developed pursuant to section 
                        45Q(f)(5)(B) of the Internal Revenue 
                        Code of 1986.
                          (vi) Authorization of 
                        appropriations.--There is authorized to 
                        be appropriated to carry out this 
                        subparagraph $50,000,000, to remain 
                        available until expended.
                  (D) Deep saline formation report.--
                          (i) Definition of deep saline 
                        formation.--
                                  (I) In general.--In this 
                                subparagraph, the term `deep 
                                saline formation' means a 
                                formation of subsurface 
                                geographically extensive 
                                sedimentary rock layers 
                                saturated with waters or brines 
                                that have a high total 
                                dissolved solids content and 
                                that are below the depth where 
                                carbon dioxide can exist in the 
                                formation as a supercritical 
                                fluid.
                                  (II) Clarification.--In this 
                                subparagraph, the term `deep 
                                saline formation' does not 
                                include oil and gas reservoirs.
                          (ii) Report.--In consultation with 
                        the Secretary of Energy, and, as 
                        appropriate, with the head of any other 
                        relevant Federal agency and relevant 
                        stakeholders, not later than 1 year 
                        after the date of enactment of the USE 
                        IT Act, the Administrator shall 
                        prepare, submit to Congress, and make 
                        publicly available a report that 
                        includes--
                                  (I) a comprehensive 
                                identification of potential 
                                risks and benefits to project 
                                developers associated with 
                                increased storage of carbon 
                                dioxide captured from 
                                stationary sources in deep 
                                saline formations, using 
                                existing research;
                                  (II) recommendations for 
                                managing the potential risks 
                                identified under subclause (I), 
                                including potential risks 
                                unique to public land; and
                                  (III) recommendations for 
                                Federal legislation or other 
                                policy changes to mitigate any 
                                potential risks identified 
                                under subclause (I).
                  (E) Report on carbon dioxide nonregulatory 
                strategies and technologies.--
                          (i) In general.--Not less frequently 
                        than once every 2 years, the 
                        Administrator shall submit to the 
                        Committee on Environment and Public 
                        Works of the Senate and the Committee 
                        on Energy and Commerce of the House of 
                        Representatives a report that 
                        describes--
                                  (I) the recipients of 
                                assistance under subparagraphs 
                                (B) and (C); and
                                  (II) a plan for supporting 
                                additional nonregulatory 
                                strategies and technologies 
                                that could significantly 
                                prevent carbon dioxide 
                                emissions or reduce carbon 
                                dioxide levels in the air, in 
                                conjunction with other Federal 
                                agencies.
                          (ii) Inclusions.--The plan submitted 
                        under clause (i) shall include--
                                  (I) a methodology for 
                                evaluating and ranking 
                                technologies based on the 
                                ability of the technologies to 
                                cost effectively reduce carbon 
                                dioxide emissions or carbon 
                                dioxide levels in the air; and
                                  (II) a description of any 
                                nonair-related environmental or 
                                energy considerations regarding 
                                the technologies.

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FIXING AMERICA'S SURFACE TRANSPORTATION ACT

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                       DIVISION D--MISCELLANEOUS


               TITLE XLI--FEDERAL PERMITTING IMPROVEMENT


SEC. 1001. [23 U.S.C. 101 NOTE] DEFINITIONS.

  In this division, the following definitions apply:
          (1) Department.-- * * *

           *       *       *       *       *       *       *


SEC. 41001. [42 U.S.C. 4370M NOTE] DEFINITIONS.

  In this title:
          (1) Agency.-- * * *

           *       *       *       *       *       *       *

          (6) Covered project.--
                  (A) In general.--The term ``covered project'' 
                means any activity in the United States that 
                requires authorization or environmental review 
                by a Federal agency involving construction of 
                infrastructure for carbon capture, renewable or 
                conventional energy production, electricity 
                transmission, surface transportation, aviation, 
                ports and waterways, water resource projects, 
                broadband, pipelines, manufacturing, or any 
                other sector as determined by a majority vote 
                of the Council that--
                          (i)(I) is subject to NEPA;
                          (II) is likely to require a total 
                        investment of more than $200,000,000; 
                        and
                          (III) does not qualify for 
                        abbreviated authorization or 
                        environmental review processes under 
                        any applicable law; [or]
                          (ii) is covered by a programmatic 
                        plan or environmental review developed 
                        for the primary purpose of facilitating 
                        development of carbon dioxide 
                        pipelines; or
                          [(ii)] (iii) is subject to NEPA and 
                        the size and complexity of which, in 
                        the opinion of the Council, make the 
                        project likely to benefit from enhanced 
                        oversight and coordination, including a 
                        project likely to require--

           *       *       *       *       *       *       *

                  (B) Exclusion.-- * * *

           *       *       *       *       *       *       *

                  (C) Associated definition.--For purposes of 
                subparagraph (A), the term `construction of 
                infrastructure for carbon capture' includes 
                construction of any facility, technology, or 
                system that captures, utilizes, or sequesters 
                carbon dioxide emissions and carbon dioxide 
                pipelines.

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