[House Report 116-510]
[From the U.S. Government Publishing Office]


116th Congress    }                                    {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                    {       116-510

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



 
           FOSSIL ENERGY RESEARCH AND DEVELOPMENT ACT OF 2019

                                _______
                                

 September 17, 2020.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

    Ms. Johnson of Texas, from the Committee on Science, Space, and 
                  Technology, submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 3607]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Science, Space, and Technology, to whom 
was referred the bill (H.R. 3607) to amend the Energy Policy 
Act of 2005 to direct Federal research in fossil energy and to 
promote the development and demonstration of environmentally 
responsible coal and natural gas technologies, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment and recommends that the bill as amended do 
pass.

                                CONTENTS

   I. Amendment.......................................................2
  II. Purpose of the Bill............................................16
 III. Background and Need for the Legislation........................16
  IV. Committee Hearings.............................................17
   V. Committee Consideration and Votes..............................18
  VI. Summary of Major Provisions of the Bill........................19
 VII. Section-By-Section Analysis (By Title and Section).............19
VIII. Committee Views................................................22
  IX. Cost Estimate..................................................23
   X. Congressional Budget Office Cost Estimate......................23
  XI. Compliance with Public Law 104-4 (Unfunded Mandates)...........25
 XII. Committee Oversight Findings and Recommendations...............25
XIII. Statement on General Performance Goals and Objectives..........25
 XIV. Federal Advisory Committee Statement...........................25
  XV. Duplication of Federal Programs................................25
 XVI. Earmark Identification.........................................26
XVII. Applicability to the Legislative Branch........................26
XVIII.Statement on Preemption of State, Local, or Tribal Law.........26

 XIX. Changes in Existing Law Made by the Bill, As Reported..........26
  XX. Minority Views.................................................51
 XXI. Exchange of Committee Correspondence...........................52
XXII. Proceedings of Subcommittee Markup.............................54
XXIII.Proceedings of Full Committee Markup..........................119


                              I. Amendment

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Fossil Energy 
Research and Development Act of 2019''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Fossil energy objectives.
Sec. 4. Carbon capture technologies.
Sec. 5. Natural gas carbon capture research, development, and 
demonstration program.
Sec. 6. Carbon storage validation and testing.
Sec. 7. Carbon utilization.
Sec. 8. Advanced energy systems.
Sec. 9. Rare earth elements.
Sec. 10. Methane hydrate research amendments.
Sec. 11. Carbon removal.
Sec. 12. Methane leak detection and mitigation.
Sec. 13. Waste gas utilization.
Sec. 14. National energy technology laboratory reforms.
Sec. 15. Climate Solutions Challenges.
Sec. 16. Table of contents amendments.

SEC. 2. DEFINITIONS.

  For purposes of this Act:
          (1) Department.--The term ``Department'' means the Department 
        of Energy.
          (2) Secretary.--The term ``Secretary'' means the Secretary of 
        Energy.

SEC. 3. FOSSIL ENERGY OBJECTIVES.

  Section 961 of the Energy Policy Act of 2005 (42 U.S.C. 16291) is 
amended--
          (1) in subsection (a)--
                  (A) by striking paragraph (2) and inserting the 
                following:
          ``(2) Decreasing the cost of emissions control technologies 
        for fossil energy production, generation, and delivery.'';
                  (B) by striking paragraph (7) and inserting the 
                following:
          ``(7) Increasing the export of emissions control technologies 
        from the United States for fossil energy-related equipment, 
        technology, and services.''; and
                  (C) by adding at the end the following:
          ``(8) Improving the conversion, use, and storage of carbon 
        oxides.
          ``(9) Lowering greenhouse gas emissions for all fossil fuel 
        production, generation, delivery, and utilization, to the 
        maximum extent possible.
          ``(10) Preventing, predicting, monitoring, and mitigating the 
        unintended leaking of methane, carbon dioxide, or other fossil 
        fuel-related emissions into the atmosphere.
          ``(11) Improving the separation and purification of helium 
        from fossil fuel resources.
          ``(12) Reducing water use, improving water reuse, and 
        minimizing the surface and subsurface environmental impact in 
        the development of unconventional domestic oil and natural gas 
        resources.
          ``(13) Developing carbon removal and utilization 
        technologies, products, and methods that result in net 
        reductions in greenhouse gas emissions, including direct air 
        capture and storage and carbon use and reuse for commercial 
        application.'';
          (2) in subsection (b), by striking paragraphs (1) through (3) 
        and inserting the following:
          ``(1) $825,000,000 for fiscal year 2020;
          ``(2) $866,250,000 for fiscal year 2021;
          ``(3) $909,563,000 for fiscal year 2022;
          ``(4) $955,041,000 for fiscal year 2023; and
          ``(5) $1,002,793,000 for fiscal year 2024.''; and
          (3) by striking subsections (c) through (e) and inserting the 
        following:
  ``(c) Prioritization.--In carrying out this section, the Secretary 
shall prioritize technologies and strategies that have the potential to 
meet emissions reduction goals in the agreement of the twenty-first 
session of the Conference of the Parties to the United Nations 
Framework Convention on Climate Change.
  ``(d) Limitation.--None of the funds authorized under this section 
may be used for Fossil Energy Environmental Restoration or Import/
Export Authorization.''.

SEC. 4. CARBON CAPTURE TECHNOLOGIES.

  (a) Carbon Capture Program.--Section 962 of the Energy Policy Act of 
2005 (42 U.S.C. 16292) is amended to read as follows:

``SEC. 962. CARBON CAPTURE TECHNOLOGIES.

  ``(a) In General.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application of carbon 
capture technologies, which shall include facilitation of the 
development and use of--
          ``(1) carbon capture technologies for coal and natural gas;
          ``(2) innovations to significantly decrease emissions at 
        existing power plants; and
          ``(3) advanced separation technologies.
  ``(b) Investment.--As a part of the program under subsection (a), the 
Secretary shall maintain robust investments in carbon capture 
technologies for coal and natural gas applications.
  ``(c) Large-Scale Pilots.--In carrying out this section, the 
Secretary is encouraged to support pilot projects that test carbon 
capture technologies on coal and natural gas power and industrial 
systems below the 100 megawatt scale, consistent with section 988(b).
  ``(d) Cost and Performance Goals.--In carrying out the program under 
subsection (a), the Secretary shall establish cost and performance 
goals to assist in the transition of carbon capture research to 
commercially viable technologies.
  ``(e) Carbon Capture Pilot Test Centers.--
          ``(1) In general.--As a part of the program under subsection 
        (a), not later than 1 year after the date of the enactment of 
        the Fossil Energy Research and Development Act of 2019, the 
        Secretary shall award grants to eligible entities for the 
        operation of not less than three Carbon Capture Test Centers 
        (in this subsection, known as the `Centers') to provide unique 
        testing capabilities for innovative carbon capture technologies 
        for power and industrial systems.
          ``(2) Purpose.--Each Center shall--
                  ``(A) advance research, development, demonstration, 
                and commercial application of carbon capture 
                technologies for power and industrial systems; and
                  ``(B) test technologies that represent the scale of 
                technology development beyond laboratory testing, but 
                not yet advanced to testing under operational 
                conditions at commercial scale.
          ``(3) Application.--An entity seeking to operate a Center 
        under this subsection shall submit to the Secretary an 
        application at such time and in such manner as the Secretary 
        may require.
          ``(4) Priority criteria.--In selecting applications to 
        operate a Center under this subsection, the Secretary shall 
        prioritize applicants that--
                  ``(A) have access to existing or planned research 
                facilities with modular technology capabilities;
                  ``(B) are institutions of higher education with 
                established expertise in engineering and design for 
                carbon capture technologies, or partnerships with such 
                institutions;
                  ``(C) have access to existing research and test 
                facilities for pre-combustion, post-combustion, or oxy-
                combustion technologies; or
                  ``(D) have test capabilities to address scaling 
                challenges of integrating carbon capture technologies 
                with utility scale power plants.
          ``(5) Considerations.--In awarding grants for the operation 
        of the Centers under this subsection, the Secretary shall 
        ensure that--
                  ``(A) the portfolio of Centers includes a diverse 
                representation of regional and resource 
                characteristics; and
                  ``(B) each new Center demonstrates unique research 
                capabilities, unique regional benefits, or new 
                technology development opportunities.
          ``(6) Schedule.--Each grant to operate a Center under this 
        subsection shall be awarded for a term of not more than 5 
        years, subject to the availability of appropriations. The 
        Secretary may renew such 5-year term without limit, subject to 
        a rigorous merit review.
          ``(7) Termination.--To the extent otherwise authorized by 
        law, the Secretary may eliminate a Center during any 5-year 
        term described in paragraph (6) if such Center is 
        underperforming.
  ``(f) Demonstrations.--
          ``(1) In general.--As a part of the program under subsection 
        (a), the Secretary may provide grants for large-scale 
        demonstration projects for power and industrial systems that 
        test the scale of technology necessary to gain the operational 
        data needed to understand the technical and performance risks 
        of the technology before the application of the technology at 
        commercial scale, in accordance with this subsection.
          ``(2) Engineering and design studies.--The Secretary is 
        authorized to fund front-end engineering and design studies in 
        addition to, or in advance of, issuing an award for a 
        demonstration project under this subsection.
          ``(3) Application.--An entity seeking an award to conduct a 
        demonstration project under this subsection shall submit to the 
        Secretary an application at such time and in such manner as the 
        Secretary may require.
          ``(4) Limitations.--The Secretary shall only provide an award 
        under this subsection after reviewing each applicant and 
        application regarding--
                  ``(A) financial strength;
                  ``(B) construction schedule;
                  ``(C) market risk; and
                  ``(D) contractor history.
          ``(5) Requirements.--A demonstration project funded under 
        this subsection shall--
                  ``(A) utilize technologies that have completed pilot-
                scale testing or the equivalent, as determined by the 
                Secretary;
                  ``(B) secure and maintain agreements for the 
                utilization or sequestration of captured carbon 
                dioxide; and
                  ``(C) upon completion, demonstrate carbon capture 
                technologies on a power or industrial system capable of 
                capturing not less than 100,000 tons of carbon dioxide 
                annually.
  ``(g) Definition of Power System.--In this section, the term `power 
system' means any electricity generating unit that utilizes fossil 
fuels to generate electricity provided to the electric grid or directly 
to a consumer.
  ``(h) Authorization of Appropriations.--Of the amounts made available 
under section 961, there are authorized to be appropriated to the 
Secretary for activities under this section--
          ``(1) $300,000,000 for fiscal year 2020;
          ``(2) $315,000,000 for fiscal year 2021;
          ``(3) $330,750,000 for fiscal year 2022;
          ``(4) $347,288,000 for fiscal year 2023; and
          ``(5) $364,652,000 for fiscal year 2024.''.
  (b) GAO Study.--
          (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Comptroller General of the United 
        States shall submit to the Committee on Science, Space, and 
        Technology of the House of Representatives and the Committee on 
        Energy and Natural Resources of the Senate a report on the 
        results of a study of the Department's successes, failures, 
        practices, and improvements in carrying out demonstration 
        projects for carbon capture technologies for power and 
        industrial systems. In conducting the study, the Comptroller 
        General shall consider--
                  (A) applicant and contractor qualifications;
                  (B) project management practices at the Department;
                  (C) economic or market changes and other factors 
                impacting project viability;
                  (D) completion of third-party agreements, including 
                power purchase agreements and carbon dioxide offtake 
                agreements;
                  (E) regulatory challenges; and
                  (F) construction challenges.
          (2) Consideration.--The Secretary shall consider any relevant 
        recommendations, as determined by the Secretary, provided in 
        the report required under paragraph (1), and shall adopt such 
        recommendations as the Secretary considers appropriate.
          (3) Power system defined.--In this section, the term ``power 
        system'' means any electricity generating unit that utilizes 
        fossil fuels to generate electricity provided to the electric 
        grid or directly to a consumer.

SEC. 5. NATURAL GAS CARBON CAPTURE RESEARCH, DEVELOPMENT, AND 
                    DEMONSTRATION PROGRAM.

  (a) In General.--Subtitle F of title IX of the Energy Policy Act of 
2005 (42 U.S.C. 16291 et seq.) is amended by adding at the end the 
following:

``SEC. 969. NATURAL GAS CARBON CAPTURE RESEARCH, DEVELOPMENT, AND 
                    DEMONSTRATION PROGRAM.

  ``(a) Definitions.--In this section:
          ``(1) Natural gas.--The term `natural gas' includes any fuel 
        consisting in whole or in part of--
                  ``(A) natural gas;
                  ``(B) liquid petroleum gas;
                  ``(C) synthetic gas derived from petroleum or natural 
                gas liquids;
                  ``(D) any mixture of natural gas and synthetic gas; 
                or
                  ``(E) any product derived directly from natural gas, 
                including hydrogen.
          ``(2) Qualifying electric generation facility.--The term 
        `qualifying electric generation facility' means a facility that 
        generates electric energy through the use of natural gas.
          ``(3) Qualifying technology.--The term `qualifying 
        technology' means any technology to capture carbon dioxide 
        produced during the generation of electricity from natural gas 
        power systems
  ``(b) Establishment of Research, Development, and Demonstration 
Program.--
          ``(1) In general.--The Secretary shall establish a program 
        under which the Secretary shall, through a competitive, merit-
        reviewed process, award grants to eligible entities to conduct 
        research, development, and demonstration of qualifying 
        technologies.
          ``(2) Objectives.--The objectives of the program established 
        under paragraph (1) shall be--
                  ``(A) to conduct research to accelerate the 
                development of qualifying technologies to reduce the 
                quantity of carbon dioxide emissions released from 
                qualifying electric generation facilities, including--
                          ``(i) pre- and post-combustion capture 
                        technologies; and
                          ``(ii) technologies to improve the 
                        thermodynamics, kinetics, scalability, 
                        durability, and flexibility of carbon capture 
                        technologies for use during the generation of 
                        electricity from natural gas power systems;
                  ``(B) to expedite and carry out demonstration 
                projects (including pilot projects) for qualifying 
                technologies in partnership with qualifying electric 
                generation facilities in order to demonstrate the 
                technical feasibility and economic potential for 
                commercial deployment of technologies developed 
                pursuant to subparagraph (A); and
                  ``(C) to identify any barriers to the commercial 
                deployment of any qualifying technologies under 
                development pursuant to research conducted pursuant to 
                subparagraph (A).
          ``(3) Eligible entities.-- An entity eligible to receive a 
        grant under this subsection is--
                  ``(A) a National Laboratory;
                  ``(B) an institution of higher education;
                  ``(C) a research facility;
                  ``(D) a multi-institutional collaboration; or
                  ``(E) another appropriate entity or combination of 
                any of the entities specified in subparagraphs (A) 
                through (D).
  ``(c) Carbon Capture Facilities Demonstration Program.--
          ``(1) Establishment.--As part of the program established 
        under paragraph (1), the Secretary shall establish a 
        demonstration program under which the Secretary shall, through 
        a competitive, merit-reviewed process, enter into cooperative 
        agreements with entities that submit applications pursuant to 
        paragraph (4) for demonstration or pilot projects to construct 
        and operate, by not later than September 30, 2025, up to five 
        facilities to capture carbon dioxide from qualifying electric 
        generation facilities. The Secretary shall, to the maximum 
        extent practicable, provide technical assistance to any entity 
        seeking to enter into such a cooperative agreement in obtaining 
        any necessary permits and licenses to demonstrate qualifying 
        technologies.
          ``(2) Cooperative agreements.--The Secretary may enter into a 
        cooperative agreement under this subsection with industry 
        stakeholders, including any such industry stakeholder operating 
        in partnership with National Laboratories, institutions of 
        higher education, multi-institutional collaborations, and other 
        appropriate entities.
          ``(3) Goals.--Each demonstration or pilot project carried out 
        pursuant to the demonstration program under this subsection 
        shall--
                  ``(A) be designed to further the development of 
                qualifying technologies that may be used by a 
                qualifying electric generation facility;
                  ``(B) be financed in part by the private sector;
                  ``(C) if necessary, secure agreements for the offtake 
                of carbon dioxide emissions captured by qualifying 
                technologies during the project; and
                  ``(D) support energy production in the United States.
          ``(4) Request for applications.--Not later than 120 days 
        after the date of enactment of this Act, the Secretary shall 
        solicit applications for cooperative agreements for projects--
                  ``(A) to demonstrate qualifying technologies at up to 
                five qualifying electric generation facilities; and
                  ``(B) to construct and operate three or more 
                facilities to capture carbon dioxide from a qualifying 
                electric generation facility.
          ``(5) Review of applications.--In considering applications 
        submitted under paragraph (4), the Secretary, to the maximum 
        extent practicable, shall--
                  ``(A) ensure a broad geographic distribution of 
                project sites;
                  ``(B) ensure that a broad selection of qualifying 
                electric generation facilities are represented;
                  ``(C) ensure that a broad selection of qualifying 
                technologies are represented;
                  ``(D) require information and knowledge gained by 
                each participant in the demonstration program to be 
                transferred and shared among all participants in the 
                demonstration program; and
                  ``(E) leverage existing--
                          ``(i) public-private partnerships; and
                          ``(ii) Federal resources.
  ``(d) Cost Sharing.--In carrying out this section, the Secretary 
shall require cost sharing in accordance with section 988.
  ``(e) Report.--Not later than 180 days after the date on which the 
Secretary solicits applications under subsection (c)(3), and annually 
thereafter, the Secretary shall submit to the appropriate committees of 
jurisdiction of the Senate and the House of Representatives a report 
that includes--
          ``(1) a detailed description of how applications for 
        cooperative agreements under subsection (b) will be solicited 
        and evaluated, including--
                  ``(A) a list of any activities carried out by the 
                Secretary to solicit or evaluate applications; and
                  ``(B) a process for ensuring that any projects 
                carried out under a cooperative agreement are designed 
                to result in the development or demonstration of 
                qualifying technologies;
          ``(2)(A) in the case of the first report under this 
        subsection, a detailed list of technical milestones for the 
        development and demonstration of each qualifying technology 
        pursued under subsection (b); and
          ``(B) in the case of each subsequent report under this 
        subsection, the progress made towards achieving such technical 
        milestones during the period covered by the report; and
          ``(3) with respect to the demonstration program established 
        under subsection (c), includes--
                  ``(A) an estimate of the cost of licensing, 
                permitting, constructing, and operating each carbon 
                capture facility expected to be constructed under that 
                demonstration program;
                  ``(B) a schedule for the planned construction and 
                operation of each demonstration or pilot project; and
                  ``(C) an estimate of any financial assistance, 
                compensation, or incentives proposed to be paid by the 
                host State, Indian Tribe, or local government with 
                respect to each facility.
  ``(f) Funding.--For each of fiscal years 2020 through 2025, out of 
any amounts appropriated to the Department to carry out fossil energy 
research and development activities and not otherwise obligated, the 
Secretary may use to carry out this section not more than 
$50,000,000.''.
  (b) Clerical Amendment.--The table of contents for the Energy Policy 
Act of 2005 (Public Law 109-58; 119 Stat. 600) is amended by inserting 
after the item relating to section 968 the following:

``Sec. 969. Natural gas carbon capture research, development, and 
demonstration program.''.

SEC. 6. CARBON STORAGE VALIDATION AND TESTING.

  Section 963 of the Energy Policy Act of 2005 (42 U.S.C. 16293) is 
amended to read as follows:

``SEC. 963. CARBON STORAGE VALIDATION AND TESTING.

  ``(a) Carbon Storage.--The Secretary, in consultation with the 
Administrator of the Environmental Protection Agency, shall carry out a 
program of research, development, and demonstration for carbon storage. 
The program shall--
          ``(1) in coordination with relevant Federal agencies, develop 
        and maintain mapping tools and resources that assess the 
        capacity of geologic storage formations in the United States;
          ``(2) develop monitoring tools, modeling of geologic 
        formations, and analyses to predict and verify carbon dioxide 
        containment and account for sequestered carbon dioxide in 
        geologic storage sites;
          ``(3) research potential environmental, safety, and health 
        impacts in the event of a leak to the atmosphere or to an 
        aquifer, and any corresponding mitigation actions or responses 
        to limit harmful consequences;
          ``(4) evaluate the interactions of carbon dioxide with 
        formation solids and fluids, including the propensity of 
        injections to induce seismic activity;
          ``(5) assess and ensure the safety of operations related to 
        geologic sequestration of carbon dioxide;
          ``(6) determine the fate of carbon dioxide concurrent with 
        and following injection into geologic formations;
          ``(7) support cost and business model assessments to examine 
        the economic viability of technologies and systems developed 
        under this program; and
          ``(8) provide information to State, local, and Tribal 
        governments, the Environmental Protection Agency, and other 
        appropriate entities, to support development of a regulatory 
        framework for commercial-scale sequestration operations that 
        ensure the protection of human health and the environment.
  ``(b) Geologic Settings.--In carrying out research activities under 
this section, the Secretary shall consider a variety of candidate 
geologic settings, both onshore and offshore, including--
          ``(1) operating oil and gas fields;
          ``(2) depleted oil and gas fields;
          ``(3) residual oil zones;
          ``(4) unconventional reservoirs and rock types;
          ``(5) unmineable coal seams;
          ``(6) saline formations in both sedimentary and basaltic 
        geologies;
          ``(7) geologic systems that may be used as engineered 
        reservoirs to extract economical quantities of brine from 
        geothermal resources of low permeability or porosity; and
          ``(8) geologic systems containing in situ carbon dioxide 
        mineralization formations.
  ``(c) Regional Carbon Sequestration Partnerships.--
          ``(1) In general.--The Secretary shall carry out large-scale 
        carbon sequestration demonstrations for geologic containment of 
        carbon dioxide to collect and validate information on the cost 
        and feasibility of commercial deployment of technologies for 
        the geologic containment of carbon dioxide. The Secretary may 
        fund new demonstrations or expand the work completed at one or 
        more of the existing regional carbon sequestration 
        partnerships.
          ``(2) Demonstration components.--Each demonstration described 
        in paragraph (1) shall include longitudinal tests involving 
        carbon dioxide injection and monitoring, mitigation, and 
        verification operations.
          ``(3) Clearinghouse.--The National Energy Technology 
        Laboratory shall act as a clearinghouse of shared information 
        and resources for the regional carbon sequestration 
        partnerships and any new demonstrations funded under this 
        section.
          ``(4) Report.--Not later than 1 year after the date of 
        enactment of the Fossil Energy Research and Development Act of 
        2019, the Secretary shall provide to the Committee on Science, 
        Space, and Technology of the House of Representatives and the 
        Committee on Energy and Natural Resources of the Senate a 
        report that--
                  ``(A) assesses the progress of all regional carbon 
                sequestration partnerships;
                  ``(B) identifies the remaining challenges in 
                achieving carbon sequestration that is reliable and 
                safe for the environment and public health; and
                  ``(C) creates a roadmap for Department of Energy 
                carbon storage research and development activities 
                through 2030 with the goal of reducing economic and 
                policy barriers to commercial carbon sequestration.
          ``(5) Large-scale carbon sequestration.--For purposes of this 
        subsection, `large-scale carbon sequestration' means a scale 
        that demonstrates the ability to inject and sequester several 
        million metric tons carbon dioxide for at least 10 years.
  ``(d) Integrated Storage Projects.--The Secretary may carry out a 
program for the purpose of transitioning the large-scale carbon 
sequestration demonstration projects under subsection (c) into 
integrated, commercial storage complexes. The program shall focus on--
          ``(1) qualifying geologic storage sites in order to accept 
        large volumes of carbon dioxide acceptable for commercial 
        contracts;
          ``(2) understanding the technical and commercial viability of 
        storage sites;
          ``(3) developing the qualification processes that will be 
        necessary for a diverse range of geologic storage sites to 
        commercially accept carbon dioxide; and
          ``(4) any other activities the Secretary determines necessary 
        to transition the large scale demonstration storage projects 
        into commercial ventures.
  ``(e) Cost Sharing.--The Secretary shall require cost sharing under 
this section in accordance with section 988.
  ``(f) Authorization of Appropriations.--Of the amounts made available 
under section 961, there are authorized to be appropriated to the 
Secretary for activities under this section--
          ``(1) $120,000,000 for fiscal year 2020;
          ``(2) $126,000,000 for fiscal year 2021;
          ``(3) $132,300,000 for fiscal year 2022;
          ``(4) $138,915,000 for fiscal year 2023; and
          ``(5) $145,860,750 for fiscal year 2024.''.

SEC. 7. CARBON UTILIZATION.

  (a) Program.--Subtitle F of title IX of the Energy Policy Act of 2005 
(42 U.S.C. 16291 et seq.) is amended by inserting after section 963 (42 
U.S.C. 16293) the following:

``SEC. 963A. CARBON UTILIZATION.

  ``(a) In General.--The Secretary shall carry out a program of 
research, development, and demonstration for carbon utilization. The 
program shall--
          ``(1) assess and monitor potential changes in life cycle 
        carbon dioxide and other greenhouse gas emissions, and other 
        environmental safety indicators of new technologies, practices, 
        processes, or methods, used in enhanced hydrocarbon recovery as 
        part of the activities authorized in section 963 of the Energy 
        Policy Act of 2005 (42 U.S.C. 16293);
          ``(2) identify and evaluate novel uses for carbon, including 
        the conversion of carbon oxides, in a manner that, on a full 
        life-cycle basis, achieves a permanent reduction in, or 
        avoidance of a net increase in carbon dioxide in the 
        atmosphere, for use in commercial and industrial products, such 
        as--
                  ``(A) chemicals;
                  ``(B) plastics;
                  ``(C) building materials;
                  ``(D) fuels;
                  ``(E) cement;
                  ``(F) products of coal utilization in power systems 
                (as such term is defined in section 962(e)), or other 
                applications; or
                  ``(G) other products with demonstrated market value;
          ``(3) carbon capture technologies for industrial systems;
          ``(4) identify and assess alternative uses for coal that 
        result in no net emissions of carbon dioxide or other 
        pollutants, including products derived from carbon engineering, 
        carbon fiber, and coal conversion methods.
  ``(b) Authorization of Appropriations.--Of the amounts made available 
under section 961, there are authorized to be appropriated to the 
Secretary for activities under this section--
          ``(1) $25,000,000 for fiscal year 2020;
          ``(2) $26,250,000 for fiscal year 2021;
          ``(3) $27,562,500 for fiscal year 2022;
          ``(4) $28,940,625 for fiscal year 2023; and
          ``(5) $30,387,656 for fiscal year 2024.''.
  (b) Study.--The Secretary shall enter into an agreement with the 
National Academies to conduct a study assessing the barriers, and 
opportunities related to the commercial application of carbon dioxide 
in the United States. Such study shall--
          (1) analyze the technical feasibility, related challenges, 
        and impacts to commercializing carbon dioxide, including--
                  (A) creating a national system of carbon dioxide 
                pipelines and geologic sequestration sites;
                  (B) mitigating environmental and landowner impacts; 
                and
                  (C) regional economic challenges and opportunities;
          (2) identify potential markets, industries, or sectors that 
        may benefit from greater access to commercial carbon dioxide;
          (3) assess the current state of infrastructure and any 
        necessary updates to allow for the integration of safe and 
        reliable carbon dioxide transportation, utilization, and 
        storage;
          (4) estimate the economic, climate, and environmental impacts 
        of any well-integrated national carbon dioxide pipeline system, 
        including suggestions for policies that could improve the 
        economic impact of the system;
          (5) assess the global status and progress of carbon 
        utilization technologies (both chemical and biological) in 
        practice today that utilize waste carbon (including carbon 
        dioxide, carbon monoxide, methane, and biogas) from power 
        generation, biofuels production, and other industrial 
        processes;
          (6) identify emerging technologies and approaches for carbon 
        utilization that show promise for scale-up, demonstration, 
        deployment, and commercialization;
          (7) analyze the factors associated with making carbon 
        utilization technologies viable at a commercial scale, 
        including carbon waste stream availability, economics, market 
        capacity, energy and lifecycle requirements;
          (8) assess the major technical challenges associated with 
        increasing the commercial viability of carbon reuse 
        technologies, and identify the research and development 
        questions that will address those challenges;
          (9) assess current research efforts, including engineering 
        and computational, that are addressing these challenges and 
        identify gaps in the current research portfolio; and
          (10) develop a comprehensive research agenda that addresses 
        both long- and short-term research needs and opportunities.

SEC. 8. ADVANCED ENERGY SYSTEMS.

  Subtitle F of title IX of the Energy Policy Act of 2005 (42 U.S.C. 
16291 et seq.) is further amended by adding at the end the following:

``SEC. 969A. ADVANCED ENERGY SYSTEMS.

  ``(a) In General.--The Secretary shall conduct a program, with the 
purpose of reducing emissions from fossil fuel power generation by not 
less than 50 percent, of research, development, demonstration, and 
commercial application with respect to the following:
          ``(1) High-efficiency turbines in accordance with the program 
        under section 969A-1.
          ``(2) Supercritical and ultrasupercritical carbon dioxide, 
        with an emphasis on developing directly-fired and indirectly 
        fired cycles in the next 10 years.
          ``(3) Advanced combustion systems, including oxy-combustion 
        systems and chemical looping.
          ``(4) Fuel cell technologies for low-cost, high-efficiency, 
        fuel-flexible, modular power systems, including solid oxide 
        fuel cell technology for commercial, residential, and 
        distributed generation systems, using improved manufacturing 
        production and processes.
          ``(5) Gasification systems to enable carbon capture, improve 
        efficiency, and reduce capital and operating costs.
          ``(6) Thermal cycling with ramping or rapid black start 
        capabilities that do not compromise efficiency or environmental 
        performance.
          ``(7) Small-scale and modular coal-fired technologies with 
        reduced carbon outputs or carbon capture that can support 
        incremental power generation capacity additions.
  ``(b) Priority.--In carrying out the program under subsection (a), 
the Secretary is encouraged to prioritize transformational technologies 
that enable a step change in reduction of emissions as compared to the 
technology in existence on the date of enactment of this section.
  ``(c) Authorization of Appropriations.--Of the amounts made available 
under section 961, there are authorized to be appropriated to the 
Secretary for activities under this section and section 969A-1--
          ``(1) $150,000,000 for fiscal year 2020;
          ``(2) $157,500,000 for fiscal year 2021;
          ``(3) $165,375,000 for fiscal year 2022;
          ``(4) $173,643,750 for fiscal year 2023; and
          ``(5) $182,325,938 for fiscal year 2024.

``SEC. 969A-1. HIGH EFFICIENCY GAS TURBINES.

  ``(a) In General.--The Secretary of Energy, through the Office of 
Fossil Energy, shall carry out a multiyear, multiphase program of 
research, development, and technology demonstration to improve the 
efficiency of gas turbines used in power generation systems and to 
identify the technologies that ultimately will lead to gas turbine 
combined cycle efficiency of 67 percent or simple cycle efficiency of 
50 percent.
  ``(b) Program Elements.--The program under this section shall--
          ``(1) support first-of-a-kind engineering and detailed gas 
        turbine design for megawatt-scale and utility-scale electric 
        power generation, including--
                  ``(A) high temperature materials, including 
                superalloys, coatings, and ceramics;
                  ``(B) improved heat transfer capability;
                  ``(C) manufacturing technology required to construct 
                complex three-dimensional geometry parts with improved 
                aerodynamic capability;
                  ``(D) combustion technology to produce higher firing 
                temperature while lowering nitrogen oxide and carbon 
                monoxide emissions per unit of output;
                  ``(E) advanced controls and systems integration;
                  ``(F) advanced high performance compressor 
                technology; and
                  ``(G) validation facilities for the testing of 
                components and subsystems;
          ``(2) include technology demonstration through component 
        testing, subscale testing, and full-scale testing in existing 
        fleets;
          ``(3) include field demonstrations of the developed 
        technology elements so as to demonstrate technical and economic 
        feasibility; and
          ``(4) assess overall combined cycle and simple cycle system 
        performance.
  ``(c) Program Goals.--The goals of the multiphase program established 
under subsection (a) shall be--
          ``(1) in phase I--
                  ``(A) to develop the conceptual design of advanced 
                high efficiency gas turbines that can achieve at least 
                65-percent combined cycle efficiency or 47-percent 
                simple cycle efficiency on a lower heating value basis; 
                and
                  ``(B) to develop and demonstrate the technology 
                required for advanced high efficiency gas turbines that 
                can achieve at least 65-percent combined cycle 
                efficiency or 47-percent simple cycle efficiency on a 
                lower heating value basis; and
          ``(2) in phase II, to develop the conceptual design for 
        advanced high efficiency gas turbines that can achieve at least 
        67-percent combined cycle efficiency or 50-percent simple cycle 
        efficiency on a lower heating value basis.
  ``(d) Proposals.--Within 180 days after the date of enactment of this 
Act, the Secretary shall solicit grant and contract proposals from 
industry, small businesses, universities, and other appropriate parties 
for conducting activities under this Act. In selecting proposals, the 
Secretary shall emphasize--
          ``(1) the extent to which the proposal will stimulate the 
        creation or increased retention of jobs in the United States; 
        and
          ``(2) the extent to which the proposal will promote and 
        enhance United States technology leadership.
  ``(e) Competitive Awards.--The provision of funding under this 
section shall be on a competitive basis with an emphasis on technical 
merit.
  ``(f) Cost Sharing.--Section 988 of the Energy Policy Act of 2005 (42 
U.S.C. 16352) shall apply to an award of financial assistance made 
under this section.
  ``(g) Limits on Participation.--The limits on participation 
applicable under section 999E of the Energy Policy Act of 2005 (42 
U.S.C. 16375) shall apply to financial assistance awarded under this 
section.''.

SEC. 9. RARE EARTH ELEMENTS.

  Subtitle F of title IX of the Energy Policy Act of 2005 (42 U.S.C. 
16291 et seq.) is further amended by adding at the end the following:

``SEC. 969B. RARE EARTH ELEMENTS.

  ``(a) In General.--In coordination with the relevant Federal 
agencies, the Secretary shall conduct research to develop and assess 
methods to separate and recover rare earth elements and other strategic 
minerals and coproducts from coal and coal byproduct streams. The 
program shall--
          ``(1) develop advanced rare earth element separation and 
        extraction processes using coal-based resources as feedstock 
        materials;
          ``(2) assess the technical and economic feasibility of 
        recovering rare earth elements from coal-based resources and 
        validate such feasibility with prototype systems producing 
        salable, high-purity rare earth elements from coal-based 
        resources; and
          ``(3) assess and mitigate any environmental and public health 
        impacts of recovering rare earth elements from coal-based 
        resources.
  ``(b) Authorization of Appropriations.--Of the amounts made available 
under section 961, there are authorized to be appropriated to the 
Secretary for activities under this section--
          ``(1) $23,000,000 for fiscal year 2020;
          ``(2) $24,150,000 for fiscal year 2021;
          ``(3) $25,357,500 for fiscal year 2022;
          ``(4) $26,625,375 for fiscal year 2023; and
          ``(5) $27,956,644 for fiscal year 2024.''.

SEC. 10. METHANE HYDRATE RESEARCH AMENDMENTS.

  (a) In General.--Section 4(b) of the Methane Hydrate Research and 
Development Act of 2000 (30 U.S.C. 2003(b)) is amended to read as 
follows:
  ``(b) Grants, Contracts, Cooperative Agreements, Interagency Funds 
Transfer Agreements, and Field Work Proposals.--
          ``(1) Assistance and coordination.--In carrying out the 
        program of methane hydrate research and development authorized 
        by this section, the Secretary may award grants, or enter into 
        contracts or cooperative agreements to--
                  ``(A) conduct research to identify the environmental, 
                health, and safety impacts of methane hydrate 
                development;
                  ``(B) assess and develop technologies to mitigate 
                environmental impacts of the exploration and commercial 
                development of methane hydrates as an energy resource, 
                including the use of seismic testing, and to reduce the 
                public health and safety risks of drilling through 
                methane hydrates;
                  ``(C) conduct research to assess and mitigate the 
                environmental impact of hydrate degassing (including 
                natural degassing and degassing associated with 
                commercial development); or
                  ``(D) expand education and training programs in 
                methane hydrate resource research and resource 
                development through fellowships or other means for 
                graduate education and training.
          ``(2) Environmental monitoring and research.--The Secretary 
        shall conduct a long-term environmental monitoring and research 
        program to study the effects of production from methane hydrate 
        reservoirs.
          ``(3) Competitive peer review.--Funds made available to carry 
        out paragraphs (1) and (2) shall be made available based on a 
        competitive process using external scientific peer review of 
        proposed research.''.
  (b) Conforming Amendment.--Section 4(e) of such Act (30 U.S.C. 
2003(e)) is amended in the matter preceding paragraph (1) by striking 
``subsection (b)(1)'' and inserting ``paragraphs (1) and (2) of 
subsection (b)''.
  (c) Authorization of Appropriations.--Section 7 of such Act (30 
U.S.C. 2006) is amended to read as follows:

``SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

  ``Of the amounts made available under section 961 of the Energy 
Policy Act of 2005 (42 U.S.C. 16291), there are authorized to be 
appropriated to the Secretary to carry out this Act $15,000,000, to 
remain available until expended, for each of fiscal years 2020 through 
2024.''.

SEC. 11. CARBON REMOVAL.

  Subtitle F of title IX of the Energy Policy Act of 2005 (42 U.S.C. 
16291 et seq.) is further amended by adding at the end the following:

``SEC. 969C. CARBON REMOVAL.

  ``(a) Establishment.--The Secretary, in coordination with the 
appropriate Federal agencies, shall establish a research, development, 
and demonstration program to remove carbon dioxide from the atmosphere 
on a large scale. The program may include activities in--
          ``(1) direct air capture and storage technologies;
          ``(2) enhanced carbon mineralization;
          ``(3) bioenergy with carbon capture and sequestration;
          ``(4) agricultural and grazing practices;
          ``(5) forest management and afforestation; and
          ``(6) planned or managed carbon sinks, including natural and 
        artificial.
  ``(b) Prioritization.--In carrying out the program established in 
subsection (a), the Secretary shall prioritize--
          ``(1) the activities described in paragraphs (1) and (2) of 
        subsection (a), acting through the Assistant Secretary for 
        Fossil Energy; and
          ``(2) the activities described in subsection (a)(3), acting 
        through the Assistant Secretary for Energy Efficiency and 
        Renewable Energy and the Assistant Secretary for Fossil Energy.
  ``(c) Considerations.--The program under this section shall identify 
and develop carbon removal technologies and strategies that consider 
the following:
          ``(1) Land use changes, including impacts on natural and 
        managed ecosystems.
          ``(2) Ocean acidification.
          ``(3) Net greenhouse gas emissions.
          ``(4) Commercial viability.
          ``(5) Potential for near-term impact.
          ``(6) Potential for carbon reductions on a gigaton scale.
          ``(7) Economic co-benefits.
  ``(d) Accounting.--The Department shall collaborate with the 
Environmental Protection Agency and other relevant agencies to develop 
and improve accounting frameworks and tools to accurately measure 
carbon removal and sequestration methods and technologies across the 
Federal Government.
  ``(e) Air Capture Technology Prize.--Not later than 1 year after the 
date of enactment of this Act, as part of the program carried out under 
this section, the Secretary shall carry out a program to award 
competitive technology prizes for carbon dioxide capture from ambient 
air or water. In carrying out this subsection, the Secretary shall--
          ``(1) in accordance with section 24 of the Stevenson-Wydler 
        Technology Innovation Act of 1980 (15 U.S.C. 3719), develop 
        requirements for--
                  ``(A) the prize competition process;
                  ``(B) minimum performance standards for projects 
                eligible to participate in the prize competition; and
                  ``(C) monitoring and verification procedures for 
                projects selected to receive a prize award;
          ``(2) establish minimum levels for the capture of carbon 
        dioxide from ambient air or water that are required to qualify 
        for a prize award; and
          ``(3) offer prize awards for any of the following:
                  ``(A) A design for a promising capture technology 
                that will--
                          ``(i) be operated on a demonstration scale; 
                        and
                          ``(ii) have the potential to achieve 
                        significant reduction in the level of carbon 
                        dioxide in the atmosphere.
                  ``(B) A successful bench-scale demonstration of a 
                capture technology.
                  ``(C) An operational capture technology on a 
                commercial scale.
  ``(f) Direct Air Capture Test Center.--
          ``(1) In general.--Not later than 1 year after the date of 
        enactment of the Fossil Energy Research and Development Act of 
        2019, the Secretary shall award grants to one or more eligible 
        entities for the operation of one or more test centers (in this 
        subsection, known as `Centers') to provide unique testing 
        capabilities for innovative direct air capture and storage 
        technologies.
          ``(2) Purpose.--Each Center shall--
                  ``(A) advance research, development, demonstration, 
                and commercial application of direct air capture and 
                storage technologies;
                  ``(B) support pilot plant and full-scale 
                demonstration projects and test technologies that 
                represent the scale of technology development beyond 
                laboratory testing but not yet advanced to test under 
                operational conditions at commercial scale;
                  ``(C) develop front-end engineering design and 
                economic analysis; and
                  ``(D) maintain a public record of pilot and full-
                scale plant performance.
          ``(3) Priority criteria.--In selecting applications to 
        operate a Center under this subsection, the Secretary shall 
        prioritize applicants that--
                  ``(A) have access to existing or planned research 
                facilities;
                  ``(B) are institutions of higher education with 
                established expertise in engineering for direct air 
                capture technologies, or partnerships with such 
                institutions; or
                  ``(C) have access to existing research and test 
                facilities for bulk materials design and testing, 
                component design and testing, or professional 
                engineering design.
          ``(4) Schedule.--Each grant to operate a Center under this 
        subsection shall be awarded for a term of not more than 5 
        years, subject to the availability of appropriations. The 
        Secretary may renew such 5-year term without limit, subject to 
        a rigorous merit review.
          ``(5) Termination.--To the extent otherwise authorized by 
        law, the Secretary may eliminate the center during any 5-year 
        term described in the last paragraph if it is underperforming.
  ``(g) Large-scale Pilots and Demonstrations.--In supporting the 
technology development activities under this section, the Secretary is 
encouraged to support carbon removal pilot and demonstration projects, 
including--
          ``(1) pilot projects that test direct air capture systems 
        capable of capturing 10 to 100 tonnes of carbon oxides per year 
        to provide data for demonstration-scale projects; and
          ``(2) direct air capture demonstration projects capable of 
        capturing greater than 1,000 tonnes of carbon oxides per year.
  ``(h) Intra-Agency Research.--In carrying out the program established 
in (a), the Secretary shall encourage and promote collaborations among 
relevant offices and agencies within the Department.
  ``(i) Authorization of Appropriations.--Of the amounts made available 
under section 961, there are authorized to be appropriated to the 
Secretary for activities under this section--
          ``(1) $75,000,000 for fiscal year 2020, $15,000,000 of which 
        are authorized to carry out subsection (e);
          ``(2) $63,000,000 for fiscal year 2021;
          ``(3) $66,150,000 for fiscal year 2022;
          ``(4) $69,458,000 for fiscal year 2023; and
          ``(5) $72,930,000 for fiscal year 2024.''.

SEC. 12. METHANE LEAK DETECTION AND MITIGATION.

  Subtitle F of title IX of the Energy Policy Act of 2005 (42 U.S.C. 
16291 et seq.) is further amended by adding at the end the following:

``SEC. 969D. METHANE LEAK DETECTION AND MITIGATION.

  ``(a) In General.--The Secretary, in consultation with the 
Administrator of the Environmental Protection Agency and other 
appropriate Federal agencies, shall carry out a program of methane leak 
detection and mitigation research, development, demonstration, and 
commercial application for technologies and methods that significantly 
reduce emissions. In carrying out the program, the Secretary shall--
          ``(1) develop cooperative agreements with State or local 
        governments or private entities to provide technical assistance 
        to--
                  ``(A) prevent or respond to methane leaks, including 
                detection, mitigation, and identification of leaks 
                throughout the natural gas infrastructure (which 
                includes natural gas storage, pipelines, and natural 
                gas production sites); and
                  ``(B) protect public health in the event of a major 
                methane leak;
          ``(2) promote demonstration and adoption of effective methane 
        emissions-reduction technologies in the private sector;
          ``(3) in coordination with representatives from private 
        industry, State and local governments, and institutions of 
        higher education, create a publicly accessible resource for 
        best practices in the design, construction, maintenance, 
        performance, monitoring, and incident response for--
                  ``(A) pipeline systems;
                  ``(B) wells;
                  ``(C) compressor stations;
                  ``(D) storage facilities; and
                  ``(E) other vulnerable infrastructure;
          ``(4) identify high-risk characteristics of pipelines, wells, 
        and materials, geologic risk factors, or other key factors that 
        increase the likelihood of methane leaks; and
          ``(5) in collaboration with private entities and institutions 
        of higher education, quantify and map significant geologic 
        methane seeps across the United States.
  ``(b) Considerations.--In carrying out the program under this 
section, the Secretary shall consider the following:
          ``(1) Historical data of methane leaks.
          ``(2) Public health consequences.
          ``(3) Public safety.
          ``(4) Novel materials and designs for pipelines, compressor 
        stations, components, and wells (including casing, cement, 
        wellhead).
          ``(5) Regional geologic traits.
          ``(6) Induced and natural seismicity.
  ``(c) Authorization of Appropriations.--Of the amounts made available 
under section 961, there are authorized to be appropriated to the 
Secretary for activities under this section--
          ``(1) $22,000,000 for fiscal years 2020;
          ``(2) $23,100,000 for fiscal years 2021;
          ``(3) $24,255,000 for fiscal years 2022;
          ``(4) $25,467,750 for fiscal years 2023; and
          ``(5) $26,741,138 for fiscal years 2024.''.

SEC. 13. WASTE GAS UTILIZATION.

  Subtitle F of title IX of the Energy Policy Act of 2005 (42 U.S.C. 
16291 et seq.) is further amended by adding at the end the following:

``SEC. 969E. WASTE GAS UTILIZATION.

  ``The Secretary shall carry out a program of research, development, 
and demonstration for waste gas utilization. The program shall--
          ``(1) identify and evaluate novel uses for light 
        hydrocarbons, such as methane, ethane, propane, butane, pentane 
        and hexane, produced during oil and shale gas production, 
        including the production of chemicals or transportation fuels;
          ``(2) develop advanced gas conversion technologies that are 
        modular and compact, and may leverage advanced manufacturing 
        technologies;
          ``(3) support demonstration activities at operating oil and 
        gas facilities to test the performance and cost-effectiveness 
        of new gas conversion technologies; and
          ``(4) assess and monitor potential changes in life cycle 
        greenhouse gas emissions that may result from the use of 
        technologies developed under this program.''.

SEC. 14. NATIONAL ENERGY TECHNOLOGY LABORATORY REFORMS.

  (a) Special Hiring Authority for Scientific, Engineering, and Project 
Management Personnel.--
          (1) In general.--The Director of the National Energy 
        Technology Laboratory shall have the authority to--
                  (A) make appointments to positions in the Laboratory 
                to assist in meeting a specific project or research 
                need, without regard to civil service laws, of 
                individuals who--
                          (i) have an advanced scientific or 
                        engineering background; or
                          (ii) have a business background and can 
                        assist in specific technology-to-market needs;
                  (B) fix the basic pay of any employee appointed under 
                this section at a rate not to exceed level II of the 
                Executive Schedule; and
                  (C) pay any employee appointed under this section 
                payments in addition to basic pay, except that the 
                total amount of additional payments paid to an employee 
                under this subsection for any 12-month period shall not 
                exceed the least of--
                          (i) $25,000;
                          (ii) the amount equal to 25 percent of the 
                        annual rate of basic pay of that employee; and
                          (iii) the amount of the limitation that is 
                        applicable for a calendar year under section 
                        5307(a)(1) of title 5, United States Code.
          (2) Limitations.--
                  (A) In general.--The term of any employee appointed 
                under this section shall not exceed 3 years.
                  (B) Full-time employees.--Not more than 10 full-time 
                employees appointed under this subsection may be 
                employed at the National Energy Technology Laboratory 
                at any given time.
  (b) Discretionary Research and Development.--
          (1) In general.--The Secretary shall establish mechanisms 
        under which the Director of the National Energy Technology 
        Laboratory may use an amount that is, in total, not less than 2 
        percent and not more than 4 percent of all funds available to 
        the Laboratory for the following purposes:
                  (A) To fund innovative research that is conducted at 
                the Laboratory and supports the mission of the 
                Department.
                  (B) To fund technology development programs that 
                support the transition of technologies developed by the 
                Laboratory into the commercial market.
                  (C) To fund workforce development activities to 
                strengthen external engineering and manufacturing 
                partnerships to ensure safe, efficient, productive, and 
                useful fossil energy technology production.
                  (D) To fund the revitalization, recapitalization, or 
                minor construction of the Laboratory infrastructure.
          (2) Prioritization.--The Director shall prioritize innovative 
        experiments and proposals proposed by scientists and 
        researchers at the National Energy Technology Laboratory.
          (3) Annual report on use of authority.--Not later than March 
        1 of each year, the Secretary shall submit to the Committee on 
        Science, Space, and Technology of the House of Representatives 
        and the Committee on Energy and Natural Resources of the Senate 
        a report on the use of the authority under this subsection 
        during the preceding fiscal year.
  (c) Laboratory Operations.--The Secretary shall delegate human 
resources operations of the National Energy Technology Laboratory to 
the Director of the National Energy Technology Laboratory.
  (d) Review.--Not later than 2 years after the date of enactment of 
this Act, the Secretary shall submit to the Committee on Science, 
Space, and Technology of the House of Representatives and the Committee 
on Energy and Natural Resources of the Senate a report assessing the 
National Energy Technology Laboratory's management and research. The 
report shall include--
          (1) an assessment of the quality of science and research at 
        the National Energy Technology Laboratory relative to similar 
        work at other national laboratories;
          (2) a review of the effectiveness of authorities provided in 
        subsections (a) and (b); and
          (3) recommendations for policy changes within the Department 
        and legislative changes to provide the National Energy 
        Technology Laboratory the necessary tools and resources to 
        advance its research mission.

SEC. 15. CLIMATE SOLUTIONS CHALLENGES.

  (a) Authority.--Not later than 180 days after the date of enactment 
of this Act, the Secretary of Energy shall establish a program to be 
known as ``Fossil Energy Climate Solutions Challenges'' for carrying 
out prize competitions described under subsection (d) pursuant to 
section 24 of the Stevenson-Wydler Technology Innovation Act of 1980 
(15 U.S.C. 3719) relating to the climate and energy.
  (b) Prize Committees.--
          (1) In general.--The Secretary shall assemble a prize 
        committee that shall define the scope and detail of, and 
        provide the requirements for, the prize competitions under this 
        section. Such committee may be composed of--
                  (A) members from the Office of Fossil Energy, 
                Advanced Research Projects Energy, Office of Technology 
                Transitions, or other offices that most appropriately 
                corresponds with the topic of the prize competition; 
                and
                  (B) representatives of any other entities, as 
                determined appropriate by the Secretary, including 
                other Federal agencies, State and local governments, 
                and the private sector.
          (2) Defining topic areas.--The prize committee may modify and 
        define the scope of the prize areas described under subsection 
        (c), so long as such modification is in accordance with 
        descriptions in such subsection.
          (3) Incentive for prize competition.--The prize committee for 
        each prize competition shall determine the incentive for the 
        prize competition. In determining the incentive, the committee 
        shall consider--
                  (A) a cash prize;
                  (B) access to Government facilities, such as through 
                a lab-embedded entrepreneurship program of the 
                Department of Energy, a cooperative research and 
                development agreement, or other method;
                  (C) advance market commitments for technologies of 
                use or promise to the Federal Government; and
                  (D) any other incentive provided for by law.
          (4) Judging criteria.--The prize committee for each prize 
        competition shall establish judging criteria for the 
        competition that shall include, at a minimum--
                  (A) potential for the solution to become a commercial 
                product or service or advance knowledge to further the 
                public good;
                  (B) consideration of how likely the solution is to 
                lead to subsequent research, development, deployment, 
                or manufacturing in the United States;
                  (C) the degree to which the solution will lower the 
                climate footprint of the United States; and
                  (D) the degree to which the solution will lower the 
                global climate footprint.
          (5) Consideration.--In carrying out this section, the 
        committee shall take into consideration the best practices 
        provided for in the challenges and prizes toolkit made publicly 
        available on December 15, 2016, by the General Services 
        Administration.
  (c) Prize Competitions.--In carrying out the program, the Secretary 
shall offer prize awards for any of the following:
          (1) Solutions to capture carbon emissions from sources that 
        would otherwise be emitted to the atmosphere.
          (2) Solutions to convert carbon emissions to a beneficial use 
        that does not result in near-term re-release into the 
        atmosphere, unless such re-release offsets the emission of 
        additional carbon into the atmosphere, such that the net effect 
        of the solution is to reduce the overall amount of carbon being 
        emitted to the atmosphere.
          (3) Other solutions that have potential to achieve reduction 
        in greenhouse gas emissions associated with fossil-based energy 
        production.
  (d) Acceptance of Funds.--In addition to such sums as may be 
appropriated or otherwise made available to the Secretary to award 
prizes under this section, the Secretary may accept funds from other 
Federal agencies, private sector entities, and State and local 
governments to award prizes under this section. The Secretary may not 
give any special consideration relating to the selection of awards 
under the prize competition to any private sector entity or individual 
in return for a donation to the Secretary or prize committee.
  (e) Eligibility.--Notwithstanding section 24(g)(3) of the Stevenson-
Wydler Technology Innovation Act of 1980 (15 U.S.C. 3719(g)(3)), a 
group may be eligible for an award under this section if one or more 
members of such group is a citizen or permanent resident of the United 
States.
  (f) Completion of Prize Competitions.--The prize competitions carried 
out under this section shall be completed not later than the date that 
is 5 years after the program is established under subsection (a).
  (g) Authorization of Appropriations.--There is authorized to be 
appropriated $15,000,000 to carry out this section, to remain available 
until expended.

SEC. 16. TABLE OF CONTENTS AMENDMENTS.

  The table of contents for the Energy Policy Act of 2005 (42 U.S.C. 
15801 note) is amended by amending the items relating to subtitle F of 
title IX to read as follows:

``Sec. 961. Fossil energy.
``Sec. 962. Carbon capture technologies.
``Sec. 963. Carbon storage validation and testing.
``Sec. 963A. Carbon utilization.
``Sec. 964. Research and development for coal mining technologies.
``Sec. 965. Oil and gas research programs.
``Sec. 966. Low-volume oil and gas reservoir research program.
``Sec. 967. Complex well technology testing facility.
``Sec. 968. Methane hydrate research.
``Sec. 969. Natural gas carbon capture research, development, and 
demonstration program.
``Sec. 969A. Advanced energy systems.
``Sec. 969A-1. High efficiency gas turbines.
``Sec. 969B. Rare earth elements.
``Sec. 969C. Carbon removal.
``Sec. 969D. Methane leak detection and mitigation.
``Sec. 969E. Waste gas utilization.''.

                        II. Purpose of the Bill

    The purpose of H.R. 3607, the Fossil Energy Research and 
Development Act of 2019, sponsored by Mr. Veasey and 
cosponsored by Mr. Schweikert, Ms. Johnson, Mr. Fitzpatrick, 
Ms. Fletcher, Mr. McKinley, Mr. Lamb, Ms. Torres Small, Mr. 
Malinowski, and Mr. McAdams, is to direct federal research in 
fossil energy and to promote the development and demonstration 
of environmentally responsible coal and natural gas 
technologies.

              III. Background and Need for the Legislation

    The DOE Office of Fossil Energy (FE) supports research to 
develop new technologies and methods to reduce the 
environmental impact of fossil fuel production and use, with a 
major focus on the capture and storage of carbon dioxide 
emissions. A portion of this research also focuses on improving 
the efficiency of fossil fuel power plants. Coal and natural 
gas account for about 56% of electricity generation and will 
likely continue to be a major part of the U.S. energy portfolio 
in the decades to come.\1\ However, financial analysts have 
determined that greenhouse gas emissions and other pollution 
associated with fossil fuels add risk to investing in these 
technologies in the long-term.\2\ Developing environmental 
mitigation strategies for these resources is not only an 
environmental concern, but also an economic one for these 
industries.\3\ Moreover, while carbon emissions growth has 
leveled off in the United States in recent years, this is due 
mainly to the transition from coal to less expensive natural 
gas. Studies have found that this transition to natural gas 
alone is unlikely to be sufficient to mitigate the most 
significant potential impacts of climate change.\4\\5\\6\ The 
International Energy Agency has projected that deploying carbon 
capture on natural gas fired power plants will likely be 
critical to meeting meaningful emissions reductions targets in 
the long term.\7\
---------------------------------------------------------------------------
    \1\Annual Energy Outlook 2018, U.S. Energy Information 
Administration, https://www.eia.gov/outlooks/aeo/.
    \2\Morgan Stanley, ``Is the Climate Changing for Fossil Fuel 
Investments?'', October 9, 2018, https://www.morganstanley.com/
articles/fossil-fuels.
    \3\Risky Business: The Economic Risks of Climate Change in the 
United States, 2014, https://riskybusiness.org/report/national/; and 
Risky Business Project, From Risk to Return: Investing in a Clean 
Energy Economy, 2016, https://riskybusiness.org/fromrisktoreturn/.
    \4\Hirji, Zahra, ``Slowing Climate Change Will Require Vastly More 
Carbon Capture, Study Says,'' Inside Climate News, January 30, 2017, 
https://insideclimatenews.org/news/30012017/global-warming-carbon-
capture-paris-climate-agreement.
    \5\Harder, Amy, ``Natural gas is helping combat climate change--but 
not enough,'' Axios, June 10, 2019. https://www.axios.com/natural-gas-
is-helping-combat-climate-change-but-not-enough-bbad3dd2-b3f8 43bb-
827c-ffad24e145c9.html.
    \6\Roberts, David, ``More natural gas isn't a ``middle ground''--
it's a climate disaster,'' Vox, May 30, 2019. https://www.vox.com/
energy-and-environment/2019/5/30/18643819/climate-change-natural-gas-
middle-ground.
    \7\``Technology Roadmap--Carbon Capture and Storage,'' http://
www.iea.org/publications/freepublications/publication/
TechnologyRoadmapCarbonCaptureandStorage.pdf.
---------------------------------------------------------------------------
    In 2018, the Coal Utilization Research Council (CURC) and 
the Electric Power Research Institute, Inc. (EPRI) developed 
the CURC EPRI Advanced Fossil Energy Technology Roadmap, which 
identified several research, development, demonstration (RD&D) 
needs to commercialize carbon capture, utilization, and storage 
(CCUS) technologies.\8\ And last year, the National Academies 
produced a report entitled ``Negative Emissions Technologies 
and Reliable Sequestration: A Research Agenda'' which 
identified RD&D needs to explore the viability of various 
approaches to removing carbon emissions from the atmosphere.\9\
---------------------------------------------------------------------------
    \8\http://www.curc.net/curc-epri-advanced-technology-roadmap-1.
    \9\https://www.nap.edu/catalog/25259/negative-emissions-
technologies-and-reliable-sequestration-a-research-agenda.
---------------------------------------------------------------------------
    Both of these reports provided a framework for H.R. 3607. 
If enacted, this bill would reauthorize and expand RD&D of 
carbon capture technologies for power plants and industrial 
sources. It would also authorize R&D activities in carbon 
storage, carbon utilization, improvements in efficiency, and 
rare earth elements. In addition, the bill would launch new 
initiatives in carbon dioxide removal, waste gas utilization, 
and methane leak detection and mitigation. Finally, it would 
authorize special hiring authority and laboratory-directed 
research and development (LDRD) activities for the DOE Office 
of Fossil Energy's laboratory, the National Energy Technology 
Laboratory (NETL) located in West Virginia, Pennsylvania, and 
Oregon, providing the lab with similar tools that have enabled 
successful technology development initiatives at DOE's other 
national laboratories.\10\
---------------------------------------------------------------------------
    \10\NETL is unique among DOE's 17 national laboratories in that it 
is the only one that is government-owned, government-operated (GOGO). 
The others are all government-owned, contractor-operated (GOCO) labs. 
According to a 2015 report from the Congressionally-mandated Commission 
to Review the Effectiveness of the National Energy Laboratories 
(CRENEL), NETL has thus far been unable to use certain tools and 
processes that have enabled the flexibility and effectiveness of the 
other DOE labs. https://www.energy.gov/labcommission/downloads/final-
report-commission-review-effectiveness-national-energy-laboratories.
---------------------------------------------------------------------------
    The Act authorizes 5% annual funding increases over five 
years for fossil energy RD&D activities, beginning with $825 
million in Fiscal Year 2020 to carry out the Act.

                         IV. Committee Hearings

    Pursuant to Section 103(i) of H. Res. 6, the Committee 
designates the following hearings as having been used to 
develop or consider the legislation:
    The Energy Subcommittee held a hearing on June 19, 2019 to 
examine research and development needs to mitigate the 
environmental impacts of the extraction and use of fossil fuels 
in support of a draft of H.R. 3607.

                               WITNESSES

    Ms. Shannon Angielski, Principal, Van Ness Feldman LLP and 
Executive Director of the Carbon Utilization Research Council 
(CURC).
    Mr. Elgie Holstein, Senior Director for Strategic Planning, 
Environmental Defense Fund (EDF).
    Mr. Jeff Bobeck, Director of Energy Policy Engagement, 
Center for Climate and Energy Solutions (C2ES).
    Ms. Erin Burns, Director of Policy, Carbon180.
    Dr. Erik K. Webb, Senior Manager, Geoscience Research and 
Applications Group, Sandia National Laboratories.

                  V. Committee Consideration and Votes

    The Subcommittee on Energy met to consider H.R. 3607 on 
July 10, 2019.
    Chairman Lamb offered a Manager's amendment to include 
technical changes to the bill. The amendment was agreed to by 
voice vote.
    Mr. Lipinski offered an amendment which instructs the 
Secretary of Energy to establish a prize competition to be 
known as the ``Fossil Energy Climate Solutions Challenges.'' 
The amendment was agreed to by voice vote.
    Mr. Cloud offered an amendment which instructs the 
Administrator of the Environmental Protection Agency not to 
consider any technology, or level of emission reduction, that 
is demonstrated as a result of financial assistance under this 
Act for regulatory purposes, with certain exceptions. The 
amendment was withdrawn.
    H.R. 3607 was forwarded by the Subcommittee to the full 
Committee (as amended) by the Yeas and Nays: 7-5.
    The Full Committee met to consider H.R. 3607 on July 24, 
2019.
    Mr. Weber offered an amendment to alter the fossil energy 
program's mission areas, amongst other portions of the bill, to 
focus less on mitigating coal's and natural gas' environmental 
impacts. The amendment also lowers the amounts authorized to be 
appropriated to carry out the Act. The amendment was rejected 
by the Yeas and Nays: 13-21.
    Mr. Foster offered an amendment that instructs the 
Secretary of Energy to carry out research that improves the 
separation and purification of helium from fossil fuels. The 
amendment was agreed to by voice vote.
    Mr. Lucas offered an amendment to add a research, 
development, and demonstration program to improve the 
environmental impacts of natural gas technologies, particularly 
through advancing carbon capture technologies. The amendment 
was agreed to by voice vote.
    Mr. Tonko offered an amendment to expand the research, 
development, and demonstration activities carried out to 
advance high-efficiency gas turbines. The amendment was agreed 
to by voice vote.
    Mr. Weber offered an amendment to add a Sense of Congress 
stating that power produced by fossil fuels is essential for 
maintaining the U.S. economic growth and global 
competitiveness.

          Mr. Perlmutter offered a second-degree amendment to 
        replace the word, ``essential'' with, ``important'' in 
        Mr. Weber's amendment. The amendment was rejected by 
        the Yeas and Nays: 4-31.

    Mr. Weber's amendment was rejected by the Yeas and Nays: 
16-19.
    H.R. 3607 was forwarded by the full Committee to the full 
House (as amended) by the Yeas and Nays: 22-13.

              VI. Summary of Major Provisions of the Bill

    H.R. 3607 would reauthorize and expand research, 
development, and demonstration of carbon capture technologies 
for power plants and industrial sources. It would also 
authorize R&D activities in carbon storage, carbon utilization, 
improvements in efficiency, and rare earth elements. In 
addition, the bill would launch new initiatives in carbon 
dioxide removal, waste gas utilization, and methane leak 
detection and mitigation. Finally, it would authorize special 
hiring authority and laboratory-directed research and 
development (LDRD) activities for the DOE Office of Fossil 
Energy's laboratory, the National Energy Technology Laboratory 
(NETL) located in West Virginia, Pennsylvania, and Oregon, 
providing the lab with similar tools that have enabled 
successful technology development initiatives at DOE's other 
national laboratories.

        VII. Section-by-Section Analysis (By Title and Section)


Section. 1. Short title

    Fossil Energy Research and Development Act of 2019

Section. 2. Definitions

    Provides definitions for ``Department'' and ``Secretary''.

Section. 3. Fossil Energy Objectives

    Adds five new objectives to the current list of objectives 
in statute for DOE's fossil energy research activities. These 
additions expand the statutory scope of the Office of Fossil 
Energy by directing the Department to focus on improving 
conversion, use, and storage of carbon dioxide from fossil 
fuels, lowering greenhouse gas emissions across the fossil fuel 
lifecycle, preventing methane leaks, reducing water use, 
improving the separation and purification of helium from fossil 
fuel resources, and developing carbon removal and utilization 
technologies. Amends two objectives to focus on decreasing the 
cost and increasing the export of emissions control 
technologies.
    Authorizes five years of funding for fossil energy RD&D 
activities beginning with $825 million in Fiscal Year 2020, and 
including a 5% annual funding increase each year to account for 
inflation and growth.
    Prioritizes technologies and strategies that have the 
potential to meet emissions reduction goals in the Paris 
Agreement.

Section. 4. Carbon Capture Technologies

    Directs the Secretary to conduct research, development, 
demonstration, and commercial application activities for carbon 
capture technologies. Authorizes and encourages support for 
large-scale pilot projects.
    Authorizes the establishment of not less than three Carbon 
Capture Pilot Test Centers, which are intended to be public-
private partnerships to enable the development and testing of 
carbon capture technologies with the necessary scale and 
modular capabilities to yield meaningful results for commercial 
application of these technologies on power and industrial 
systems.
    Adds reforms and additional oversight to the establishment 
of new demonstration activities.
    Directs the Government Accountability Office to examine the 
Department's practices in carrying out demonstration projects 
for carbon capture technologies.
    Of the amounts authorized in Section 3, authorizes five 
years of funding for these activities beginning with $300 
million in Fiscal Year 2020, and including a 5% annual funding 
increase each year to account for inflation and growth.

Section 5. Natural Gas Carbon Capture Research, Development, 
        Demonstration, and Commercial Application Program

    Establishes a program to conduct research, development, and 
demonstration of technologies to capture carbon dioxide 
produced during the generation of electricity from natural gas 
power systems.
    Authorizes $50 million per year for five years for these 
activities.

Section. 6. Carbon Storage Validation and Testing

    Reauthorizes research, development, and demonstration 
activities in carbon storage. Removes the current limitation of 
seven large-scale carbon sequestration demonstrations to allow 
for additional demonstrations as the Secretary sees fit. 
Directs the National Energy Technology Laboratory to act as the 
clearinghouse of information for the regional sequestration 
partnerships. Directs DOE to submit a report to Congress 
detailing the progress and remaining challenges for carbon 
sequestration.
    Authorizes a program for integrated storage projects 
focusing on the qualification of storage sites and the 
technical and commercial viability of these locations and 
geologic structures.
    Of the amounts authorized in Section 3, authorizes five 
years of funding for these activities beginning with $120 
million in Fiscal Year 2020, and including a 5% annual funding 
increase each year to account for inflation and growth.

Section. 7. Carbon Utilization

    Establishes a research, development, and demonstration 
program for carbon utilization. This section authorizes 
research to identify and evaluate novel uses for carbon.
    Of the amounts authorized in Section 3, authorizes five 
years of funding for these activities beginning with $25 
million in Fiscal Year 2020, and including a 5% annual funding 
increase each year to account for inflation and growth.
    Directs the National Academies to conduct a study examining 
the barriers and opportunities related to commercial 
application of carbon dioxide.

Section. 8. Advanced Energy Systems

    Authorizes a program of research, development, 
demonstration, and commercial application to lower emissions 
and improve the efficiency of fossil fuel power generation. 
This includes R&D activities related to high-efficiency 
turbines, supercritical and ultrasupercritical CO2, 
advanced combustion systems, fuel cell technologies, 
gasification systems, thermal cycling, and modular coal-fired 
technologies with carbon capture.
    Of the amounts authorized in Section 3, authorizes five 
years of funding for these activities beginning with $150 
million in Fiscal Year 2020, and including a 5% annual funding 
increase each year to account for inflation and growth.

Section. 9. Rare Earth Elements

    Directs the Secretary to conduct research and development 
to separate and recover rare earth elements and strategic 
minerals from coal and coal byproduct streams, including 
research to assess and mitigate any environmental and public 
health impacts associated with these processes.
    Of the amounts authorized in Section 3, authorizes five 
years of funding for these activities beginning with $23 
million in Fiscal Year 2020, and including a 5% annual funding 
increase each year to account for inflation and growth.

Section. 10. Methane Hydrates Research Amendments

    Amends the Methane Hydrates Research and Development Act of 
2000 to add further considerations of environmental impacts as 
the Department of Energy pursues this area of research. Of the 
amounts authorized in Section 3, authorizes $15 million per 
year for five years for these activities.

Section. 11. Carbon Removal

    Establishes a research, development, and demonstration 
program to examine the methods, technologies, and strategies to 
remove carbon dioxide from the atmosphere at a large scale.
    Establishes an Air Capture Technology Prize and a Direct 
Air Capture Test Center.
    Of the amounts authorized in Section 3, authorizes five 
years of funding for these activities beginning with $60 
million (not including one-year funding for the prize 
competition) in Fiscal Year 2020, and including a 5% annual 
funding increase each year to account for inflation and growth. 
It also authorizes an additional $15 million in FY 2020 ($75 
million total for activities pursuant to this Section) for a 
prize competition to develop direct air capture technologies.

Section. 12. Methane Leak Detection and Mitigation

    Establishes a program at the Department of Energy, in 
coordination with the appropriate Federal agencies, to examine 
technologies and methods to detect and mitigate methane leaks. 
The section also authorizes the Department to develop 
cooperative agreements with State or local governments as well 
as private entities in order to provide technical assistance to 
prevent or respond to methane leaks and protect public health 
in the event of a major methane leak. The section directs DOE 
to create a publicly accessible resource for industry best 
practices to prevent methane leaks across the range of methane 
infrastructure and equipment.
    Of the amounts authorized in Section 3, authorizes five 
years of funding for these activities beginning with $23 
million in Fiscal Year 2020, and including a 5% annual funding 
increase each year to account for inflation and growth.

Section. 13. Waste gas Utilization

    Establishes a research, development, and demonstration 
program to examine technologies and methods that would utilize 
waste gases, including methane, ethane, propane, butane, 
pentane, and hexane, produced during oil and shale gas 
production, including the production of chemicals or 
transportation fuels.

Section. 14. National Energy Technology Laboratory Reforms

    Provides the Director of the National Energy Technology 
Laboratory (NETL) special hiring authority that would allow 
NETL to better recruit highly talented individuals for certain 
positions and add additional workforce flexibility to meet 
research needs. This authority allows the Director to hire 
employees for a term of three years without following the 
federal hiring process or the federal pay scale (with 
limitations to the latter). Along with these exceptions, the 
Director may also terminate the employee at any time due to 
performance or changing priorities. The subsection specifies 
that the special hiring authority be used for meeting specific 
project or research needs of the Department. The number of 
employees at the laboratory under special-hiring authority is 
capped at no more than ten at any given time.
    The section also provides NETL with a discretionary budget, 
the amount of which is to be between 2 and 4 percent of the 
laboratory's overall budget. These funds can be used for 
research, technology transition, workforce development or minor 
infrastructure improvements or construction. The Secretary is 
required to submit an annual report to Congress on the use of 
this authority.
    The final part of this section requires that the Secretary 
submit to Congress a review that includes an assessment of the 
quality of science and research at NETL relative to other 
national laboratories, an assessment of the new authorities 
authorized under this section, and recommendations for 
additional policy changes to better advance NETL's mission.

Section. 15. Climate Solutions Challenges

    Establishes a prize competition for solutions to reduce 
greenhouse gas emissions associated with fossil-based energy 
production.

                         VIII. Committee Views

    The Committee expects that the Department of Energy's 
Office of Fossil Energy will coordinate closely with other 
federal agencies and offices within the Department in carrying 
out relevant activities authorized in H.R. 3607. Such would 
include coordination with the Office of Energy Efficiency and 
Renewable Energy's Advanced Manufacturing Office on research, 
development, and demonstration activities in industrial carbon 
capture and coordination with the Bioenergy Technologies Office 
on research, development, and demonstration activities in 
bioenergy with carbon capture and sequestration.

                           IX. Cost Estimate

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives, the Committee adopts as its own the 
estimate of new budget authority, entitlement authority, or tax 
expenditures or revenues contained in the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974.

              X. Congressional Budget Office Cost Estimate


	[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    Bill summary: H.R. 3607 would authorize appropriations 
totaling $4.6 billion over the 2020-2025 period for the 
Department of Energy's (DOE's) fossil energy research and 
development activities. The bill would recodify existing 
activities under DOE's Office of Fossil Energy, and would 
direct the department to establish research, development, and 
demonstration programs for carbon removal, carbon utilization, 
and waste gas utilization. H.R. 3607 also would authorize the 
appropriation of $15 million for DOE to carry out prize 
competitions for ideas to reduce carbon emissions from fossil 
fuel-based energy production. The bill would permit DOE to 
collect and spend donations to award prizes.
    Estimated Federal cost: The estimated budgetary effect of 
H.R. 3607 is shown in Table 1. The costs of the legislation 
fall within budget function 270 (energy).

                                                   TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 3607a
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2020    2021    2022    2023    2024    2025    2026    2027    2028    2029   2020-2024  2020-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     Increases in Spending Subject to Appropriation
 
Fossil Energy Activities:
    Authorization.................................     825     866     910     955   1,003      50       0       0       0       0     4,559      4,609
    Estimated Outlays.............................      99     335     558     701     827     806     559     322     184      76     2,520      4,467
Prize Competitions:
    Authorization.................................      15       0       0       0       0       0       0       0       0       0        15         15
    Estimated Outlays.............................       1       2       4       4       4       0       0       0       0       0        15         15
Other Provisions:
    Estimated Authorization.......................       2       0       0       0       0       0       0       0       0       0         2          2
    Estimated Outlays.............................       2       0       0       0       0       0       0       0       0       0         2          2
Total Changes:
    Estimated Authorization.......................     842     866     910     955   1,003      50       0       0       0       0     4,576      4,626
    Estimated Outlays.............................     102     337     562     705     831     806     559     322     184      76     2,537      4,484
--------------------------------------------------------------------------------------------------------------------------------------------------------
aEnacting H.R. 3607 could affect direct spending; however, CBO estimates that the net effect would be negligible over the 2019-2029 period.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
3607 will be enacted near the start of 2020 and that the 
authorized and necessary amounts will be provided in each year. 
Estimated outlays are based on historical spending patterns for 
the affected and similar activities.
    H.R. 3607 would authorize appropriations totaling $4.6 
billion over the 2020-2025 period. CBO estimates that 
implementing the bill would cost $2.5 billion over the 2020-
2024 period.
    Fossil energy activities: Section 3 would authorize 
appropriations totaling $4.6 billion over the 2020-2024 period 
for activities under DOE's fossil energy program. The bill 
would direct DOE to carry out research, development, and 
demonstration programs for carbon capture and storage, carbon 
use, advanced energy systems, carbon removal, methane hydrates, 
methane leak detection and mitigation, use of waste gas, and 
the separation of rare earth elements from coal and coal 
byproducts. In addition, section 5 would direct DOE to use up 
to $50 million in 2025 for research, development, and 
demonstration projects related to the capture of carbon from 
natural gas.
    CBO estimates that implementing sections 3 and 5 would cost 
$2.5 billion over the 2020-2024 period. In 2019, DOE received 
an appropriation of $740 million for fossil energy research and 
development.
    Prize competitions: Section 15 would authorize the 
appropriation of $15 million for DOE to carry out prize 
competitions for ideas and solutions to capture, convert, and 
reduce carbon emissions from fossil fuel-based energy 
production. CBO estimates that implementing the prize 
competitions would cost $15 million over the 2020-2024 period.
    Other provisions: H.R. 3607 would authorize the Director of 
the National Energy Technology Laboratory to make appointments 
to certain positions within the laboratory. The bill would 
direct DOE to establish mechanisms for the laboratory to 
allocate a percentage of its funds toward innovative research, 
technology development, workforce development, and minor 
construction. In addition, H.R. 3607 would require a report by 
the Government Accountability Office on demonstration projects 
for carbon capture technologies, and would direct DOE to enter 
into an agreement with the National Academies to study the 
opportunities for and barriers to commercializing carbon 
dioxide. Based on the costs of similar tasks, CBO estimates 
that implementing those provisions would cost $2 million; such 
spending would be subject to the availability of appropriated 
funds.
    Pay-As-You-Go Considerations: H.R. 3607 would permit DOE to 
accept donations to award prizes for the prize competitions. 
CBO estimates that any donations, which would be recorded in 
the federal budget as offsetting receipts, would be 
insignificant and offset by an expenditure soon thereafter. 
Thus, we estimate that the net effect on direct spending would 
be negligible over the 2020-2029 period.
    Increase in long-term deficits: None.
    Mandates: None.
    Estimate prepared by: Federal Costs: Janani Shankaran and 
Kathleen Gramp; Mandates: Brandon Lever.
    Estimate reviewed by: Kim P. Cawley, Chief, Natural and 
Physical Resources Cost Estimates Unit. H. Samuel Papenfuss, 
Deputy Assistant Director for Budget Analysis.

                     XI. Federal Mandates Statement

    H.R. 3607 contains no unfunded mandates.

         XII. Committee Oversight Findings and Recommendations

    The Committee's oversight findings and recommendations are 
reflected in the body of the report.

      XIII. Statement on General Performance Goals and Objectives

    The objective of the legislation is to direct federal 
research to carry out research, development, demonstration, and 
commercial application programs in fossil energy with the goal 
of improving the efficiency, effectiveness, and environmental 
performance of fossil energy production, upgrading, conversion, 
and consumption.

               XIV. Federal Advisory Committee Statement

    H.R. 3607 does not create any advisory committees.

                  XV. Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 3607 establishes or reauthorizes a program of the 
federal government known to be duplicative of another federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

                      XVI. Earmark Identification

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 3607 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

             XVII. Applicability to the Legislative Branch

    The Committee finds that H.R. 3607 does not relate to the 
terms and conditions of employment or access to public services 
or accommodations within the meaning of section 102(b)(3) of 
the Congressional Accountability Act (Public Law 104-1).

     XVIII. Statement on Preemption of State, Local, or Tribal Law

    This bill is not intended to preempt any state, local, or 
tribal law.

       XIX. Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, 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 italics, and existing law in which no 
change is proposed is shown in roman):

                       ENERGY POLICY ACT OF 2005


SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Energy 
Policy Act of 2005''.
  (b) Table of Contents.--The table of contents for this Act is 
as follows:

Sec. 1. Short title; table of contents.
     * * * * * * *

                   TITLE IX--RESEARCH AND DEVELOPMENT

     * * * * * * *

                        Subtitle F--Fossil Energy

[Sec. 961. Fossil energy.
[Sec. 962. Coal and related technologies program.
[Sec. 963. Carbon capture and sequestration research, development, and 
          demonstration program.
[Sec. 964. Research and development for coal mining technologies.
[Sec. 965. Oil and gas research programs.
[Sec. 966. Low-volume oil and gas reservoir research program.
[Sec. 967. Complex well technology testing facility.
[Sec. 968. Methane hydrate research.]
Sec. 961. Fossil energy.
Sec. 962. Carbon capture technologies.
Sec. 963. Carbon storage validation and testing.
Sec. 963A. Carbon utilization.
Sec. 964. Research and development for coal mining technologies.
Sec. 965. Oil and gas research programs.
Sec. 966. Low-volume oil and gas reservoir research program.
Sec. 967. Complex well technology testing facility.
Sec. 968. Methane hydrate research.
Sec. 969. Natural gas carbon capture research, development, and 
          demonstration program.
Sec. 969A. Advanced energy systems.
Sec. 969A-1. High efficiency gas turbines.
Sec. 969B. Rare earth elements.
Sec. 969C. Carbon removal.
Sec. 969D. Methane leak detection and mitigation.
Sec. 969E. Waste gas utilization.

           *       *       *       *       *       *       *


TITLE IX--RESEARCH AND DEVELOPMENT

           *       *       *       *       *       *       *


                       Subtitle F--Fossil Energy

SEC. 961. FOSSIL ENERGY.

  (a) In General.--The Secretary shall carry out research, 
development, demonstration, and commercial application programs 
in fossil energy, including activities under this subtitle, 
with the goal of improving the efficiency, effectiveness, and 
environmental performance of fossil energy production, 
upgrading, conversion, and consumption. Such programs take into 
consideration the following objectives:
          (1) Increasing the energy conversion efficiency of 
        all forms of fossil energy through improved 
        technologies.
          [(2) Decreasing the cost of all fossil energy 
        production, generation, and delivery.]
          (2) Decreasing the cost of emissions control 
        technologies for fossil energy production, generation, 
        and delivery.
          (3) Promoting diversity of energy supply.
          (4) Decreasing the dependence of the United States on 
        foreign energy supplies.
          (5) Improving United States energy security.
          (6) Decreasing the environmental impact of energy-
        related activities.
          [(7) Increasing the export of fossil energy-related 
        equipment, technology, and services from the United 
        States.]
          (7) Increasing the export of emissions control 
        technologies from the United States for fossil energy-
        related equipment, technology, and services.
          (8) Improving the conversion, use, and storage of 
        carbon oxides.
          (9) Lowering greenhouse gas emissions for all fossil 
        fuel production, generation, delivery, and utilization, 
        to the maximum extent possible.
          (10) Preventing, predicting, monitoring, and 
        mitigating the unintended leaking of methane, carbon 
        dioxide, or other fossil fuel-related emissions into 
        the atmosphere.
          (11) Improving the separation and purification of 
        helium from fossil fuel resources.
          (12) Reducing water use, improving water reuse, and 
        minimizing the surface and subsurface environmental 
        impact in the development of unconventional domestic 
        oil and natural gas resources.
          (13) Developing carbon removal and utilization 
        technologies, products, and methods that result in net 
        reductions in greenhouse gas emissions, including 
        direct air capture and storage and carbon use and reuse 
        for commercial application.
  (b) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary to carry out fossil energy 
research, development, demonstration, and commercial 
application activities, including activities authorized under 
this subtitle--
          [(1) $611,000,000 for fiscal year 2007;
          [(2) $626,000,000 for fiscal year 2008; and
          [(3) $641,000,000 for fiscal year 2009.]
          (1) $825,000,000 for fiscal year 2020;
          (2) $866,250,000 for fiscal year 2021;
          (3) $909,563,000 for fiscal year 2022;
          (4) $955,041,000 for fiscal year 2023; and
          (5) $1,002,793,000 for fiscal year 2024.
  [(c) Allocations.--From amounts authorized under subsection 
(a), the following sums are authorized:
          [(1) For activities under section 962--
                  [(A) $367,000,000 for fiscal year 2007;
                  [(B) $376,000,000 for fiscal year 2008; and
                  [(C) $394,000,000 for fiscal year 2009.
          [(2) For activities under section 964--
                  [(A) $20,000,000 for fiscal year 2007;
                  [(B) $25,000,000 for fiscal year 2008; and
                  [(C) $30,000,000 for fiscal year 2009.
          [(3) For activities under section 966--
                  [(A) $1,500,000 for fiscal year 2007; and
                  [(B) $450,000 for each of fiscal years 2008 
                and 2009.
          [(4) For the Office of Arctic Energy under section 
        3197 of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001 (42 U.S.C. 
        7144d) $25,000,000 for each of fiscal years 2007 
        through 2009.
  [(d) Extended Authorization.--There are authorized to be 
appropriated to the Secretary for the Office of Arctic Energy 
established under section 3197 of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 (42 U.S.C. 
7144d) $25,000,000 for each of fiscal years 2010 through 2012.
  [(e) Limitations.--
          [(1) Uses.--None of the funds authorized under this 
        section may be used for Fossil Energy Environmental 
        Restoration or Import/Export Authorization.
          [(2) Institutions of higher education.--Of the funds 
        authorized under subsection (c)(2), not less than 20 
        percent of the funds appropriated for each fiscal year 
        shall be dedicated to research and development carried 
        out at institutions of higher education.]
  (c) Prioritization.--In carrying out this section, the 
Secretary shall prioritize technologies and strategies that 
have the potential to meet emissions reduction goals in the 
agreement of the twenty-first session of the Conference of the 
Parties to the United Nations Framework Convention on Climate 
Change.
  (d) Limitation.--None of the funds authorized under this 
section may be used for Fossil Energy Environmental Restoration 
or Import/Export Authorization.

[SEC. 962. COAL AND RELATED TECHNOLOGIES PROGRAM.

  [(a) In General.--In addition to the programs authorized 
under title IV, the Secretary shall conduct a program of 
technology research, development, demonstration, and commercial 
application for coal and power systems, including programs to 
facilitate production and generation of coal-based power 
through--
          [(1) innovations for existing plants (including 
        mercury removal);
          [(2) gasification systems;
          [(3) advanced combustion systems;
          [(4) turbines for synthesis gas derived from coal;
          [(5) carbon capture and sequestration research and 
        development;
          [(6) coal-derived chemicals and transportation fuels;
          [(7) liquid fuels derived from low rank coal water 
        slurry;
          [(8) solid fuels and feedstocks;
          [(9) advanced coal-related research;
          [(10) advanced separation technologies; and
          [(11) fuel cells for the operation of synthesis gas 
        derived from coal.
  [(b) Cost and Performance Goals.--
          [(1) In general.--In carrying out programs authorized 
        by this section, during each of calendar years 2008, 
        2010, 2012, and 2016, and during each fiscal year 
        beginning after September 30, 2021, the Secretary shall 
        identify cost and performance goals for coal-based 
        technologies that would permit the continued cost-
        competitive use of coal for the production of 
        electricity, chemical feedstocks, and transportation 
        fuels.
          [(2) Administration.--In establishing the cost and 
        performance goals, the Secretary shall--
                  [(A) consider activities and studies 
                undertaken as of the date of enactment of this 
                Act by industry in cooperation with the 
                Department in support of the identification of 
                the goals;
                  [(B) consult with interested entities, 
                including--
                          [(i) coal producers;
                          [(ii) industries using coal;
                          [(iii) organizations that promote 
                        coal and advanced coal technologies;
                          [(iv) environmental organizations;
                          [(v) organizations representing 
                        workers; and
                          [(vi) organizations representing 
                        consumers;
                  [(C) not later than 120 days after the date 
                of enactment of this Act, publish in the 
                Federal Register proposed draft cost and 
                performance goals for public comments; and
                  [(D) not later than 180 days after the date 
                of enactment of this Act and every 4 years 
                thereafter, submit to Congress a report 
                describing the final cost and performance goals 
                for the technologies that includes--
                          [(i) a list of technical milestones; 
                        and
                          [(ii) an explanation of how programs 
                        authorized in this section will not 
                        duplicate the activities authorized 
                        under the Clean Coal Power Initiative 
                        authorized under title IV.
  [(c) Powder River Basin and Fort Union Lignite Coal Mercury 
Removal.--
          [(1) In general.--In addition to the programs 
        authorized by subsection (a), the Secretary shall 
        establish a program to test and develop technologies to 
        control and remove mercury emissions from subbituminous 
        coal mined in the Powder River Basin, and Fort Union 
        lignite coals, that are used for the generation of 
        electricity.
          [(2) Efficacy of mercury removal technology.--In 
        carrying out the program under paragraph (1), the 
        Secretary shall examine the efficacy of mercury removal 
        technologies on coals described in that paragraph that 
        are blended with other types of coal.
  [(d) Fuel Cells.--
          [(1) In general.--The Secretary shall conduct a 
        program of research, development, demonstration, and 
        commercial application on fuel cells for low-cost, 
        high-efficiency, fuel-flexible, modular power systems.
          [(2) Demonstrations.--The demonstrations referred to 
        in paragraph (1) shall include solid oxide fuel cell 
        technology for commercial, residential, and 
        transportation applications, and distributed generation 
        systems, using improved manufacturing production and 
        processes.

[SEC. 963. CARBON CAPTURE AND SEQUESTRATION RESEARCH, DEVELOPMENT, AND 
                    DEMONSTRATION PROGRAM.

  [(a) In General.--The Secretary shall carry out a 10-year 
carbon capture and sequestration research, development, and 
demonstration program to develop carbon dioxide capture and 
sequestration technologies related to industrial sources of 
carbon dioxide for use--
          [(1) in new coal utilization facilities; and
          [(2) on the fleet of coal-based units in existence on 
        the date of enactment of this Act.
  [(b) Objectives.--The objectives of the program under 
subsection (a) shall be--
          [(1) to develop carbon dioxide capture technologies, 
        including adsorption and absorption techniques and 
        chemical processes, to remove the carbon dioxide from 
        gas streams containing carbon dioxide potentially 
        amenable to sequestration;
          [(2) to develop technologies that would directly 
        produce concentrated streams of carbon dioxide 
        potentially amenable to sequestration;
          [(3) to increase the efficiency of the overall system 
        to reduce the quantity of carbon dioxide emissions 
        released from the system per megawatt generated;
          [(4) in accordance with the carbon dioxide capture 
        program, to promote a robust carbon sequestration 
        program and continue the work of the Department, in 
        conjunction with the private sector, through regional 
        carbon sequestration partnerships; and
          [(5) to expedite and carry out large-scale testing of 
        carbon sequestration systems in a range of geologic 
        formations that will provide information on the cost 
        and feasibility of deployment of sequestration 
        technologies.
  [(c) Programmatic Activities.--
          [(1) Fundamental science and engineering research and 
        development and demonstration supporting carbon capture 
        and sequestration technologies and carbon use 
        activities.--
                  [(A) In general.--The Secretary shall carry 
                out fundamental science and engineering 
                research (including laboratory-scale 
                experiments, numeric modeling, and simulations) 
                to develop and document the performance of new 
                approaches to capture and sequester, or use 
                carbon dioxide to lead to an overall reduction 
                of carbon dioxide emissions.
                  [(B) Program integration.--The Secretary 
                shall ensure that fundamental research carried 
                out under this paragraph is appropriately 
                applied to energy technology development 
                activities, the field testing of carbon 
                sequestration, and carbon use activities, 
                including--
                          [(i) development of new or advanced 
                        technologies for the capture and 
                        sequestration of carbon dioxide;
                          [(ii) development of new or advanced 
                        technologies that reduce the cost and 
                        increase the efficacy of advanced 
                        compression of carbon dioxide required 
                        for the sequestration of carbon 
                        dioxide;
                          [(iii) modeling and simulation of 
                        geologic sequestration field 
                        demonstrations;
                          [(iv) quantitative assessment of 
                        risks relating to specific field sites 
                        for testing of sequestration 
                        technologies;
                          [(v) research and development of new 
                        and advanced technologies for carbon 
                        use, including recycling and reuse of 
                        carbon dioxide; and
                          [(vi) research and development of new 
                        and advanced technologies for the 
                        separation of oxygen from air.
          [(2) Field validation testing activities.--
                  [(A) In general.--The Secretary shall 
                promote, to the maximum extent practicable, 
                regional carbon sequestration partnerships to 
                conduct geologic sequestration tests involving 
                carbon dioxide injection and monitoring, 
                mitigation, and verification operations in a 
                variety of candidate geologic settings, 
                including--
                          [(i) operating oil and gas fields;
                          [(ii) depleted oil and gas fields;
                          [(iii) unmineable coal seams;
                          [(iv) deep saline formations;
                          [(v) deep geologic systems that may 
                        be used as engineered reservoirs to 
                        extract economical quantities of heat 
                        from geothermal resources of low 
                        permeability or porosity; and
                          [(vi) deep geologic systems 
                        containing basalt formations.
                  [(B) Objectives.--The objectives of tests 
                conducted under this paragraph shall be--
                          [(i) to develop and validate 
                        geophysical tools, analysis, and 
                        modeling to monitor, predict, and 
                        verify carbon dioxide containment;
                          [(ii) to validate modeling of 
                        geologic formations;
                          [(iii) to refine sequestration 
                        capacity estimated for particular 
                        geologic formations;
                          [(iv) to determine the fate of carbon 
                        dioxide concurrent with and following 
                        injection into geologic formations;
                          [(v) to develop and implement best 
                        practices for operations relating to, 
                        and monitoring of, carbon dioxide 
                        injection and sequestration in geologic 
                        formations;
                          [(vi) to assess and ensure the safety 
                        of operations related to geologic 
                        sequestration of carbon dioxide;
                          [(vii) to allow the Secretary to 
                        promulgate policies, procedures, 
                        requirements, and guidance to ensure 
                        that the objectives of this 
                        subparagraph are met in large-scale 
                        testing and deployment activities for 
                        carbon capture and sequestration that 
                        are funded by the Department of Energy; 
                        and
                          [(viii) to provide information to 
                        States, the Environmental Protection 
                        Agency, and other appropriate entities 
                        to support development of a regulatory 
                        framework for commercial-scale 
                        sequestration operations that ensure 
                        the protection of human health and the 
                        environment.
          [(3) Large-scale carbon dioxide sequestration 
        testing.--
                  [(A) In general.--The Secretary shall conduct 
                not less than 7 initial large-scale 
                sequestration tests, not including the 
                FutureGen project, for geologic containment of 
                carbon dioxide to collect and validate 
                information on the cost and feasibility of 
                commercial deployment of technologies for 
                geologic containment of carbon dioxide. These 7 
                tests may include any Regional Partnership 
                projects awarded as of the date of enactment of 
                the Department of Energy Carbon Capture and 
                Sequestration Research, Development, and 
                Demonstration Act of 2007.
                  [(B) Diversity of formations to be studied.--
                In selecting formations for study under this 
                paragraph, the Secretary shall consider a 
                variety of geologic formations across the 
                United States, and require characterization and 
                modeling of candidate formations, as determined 
                by the Secretary.
                  [(C) Source of carbon dioxide for large-scale 
                sequestration tests.--In the process of any 
                acquisition of carbon dioxide for sequestration 
                tests under subparagraph (A), the Secretary 
                shall give preference to sources of carbon 
                dioxide from industrial sources. To the extent 
                feasible, the Secretary shall prefer tests that 
                would facilitate the creation of an integrated 
                system of capture, transportation and 
                sequestration of carbon dioxide. The preference 
                provided for under this subparagraph shall not 
                delay the implementation of the large-scale 
                sequestration tests under this paragraph.
                  [(D) Definition.--For purposes of this 
                paragraph, the term ``large-scale'' means the 
                injection of more than 1,000,000 tons of carbon 
                dioxide from industrial sources annually or a 
                scale that demonstrates the ability to inject 
                and sequester several million metric tons of 
                industrial source carbon dioxide for a large 
                number of years.
          [(4) Preference in project selection from meritorious 
        proposals.--In making competitive awards under this 
        subsection, subject to the requirements of section 989, 
        the Secretary shall--
                  [(A) give preference to proposals from 
                partnerships among industrial, academic, and 
                government entities; and
                  [(B) require recipients to provide assurances 
                that all laborers and mechanics employed by 
                contractors and subcontractors in the 
                construction, repair, or alteration of new or 
                existing facilities performed in order to carry 
                out a demonstration or commercial application 
                activity authorized under this subsection shall 
                be paid wages at rates not less than those 
                prevailing on similar construction in the 
                locality, as determined by the Secretary of 
                Labor in accordance with subchapter IV of 
                chapter 31 of title 40, United States Code, and 
                the Secretary of Labor shall, with respect to 
                the labor standards in this paragraph, have the 
                authority and functions set forth in 
                Reorganization Plan Numbered 14 of 1950 (15 
                Fed. Reg. 3176; 5 U.S.C. Appendix) and section 
                3145 of title 40, United States Code.
          [(5) Cost sharing.--Activities under this subsection 
        shall be considered research and development activities 
        that are subject to the cost sharing requirements of 
        section 988(b).
          [(6) Program review and report.--During fiscal year 
        2011, the Secretary shall--
                  [(A) conduct a review of programmatic 
                activities carried out under this subsection; 
                and
                  [(B) make recommendations with respect to 
                continuation of the activities.
  [(d) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section--
          [(1) $240,000,000 for fiscal year 2008;
          [(2) $240,000,000 for fiscal year 2009;
          [(3) $240,000,000 for fiscal year 2010;
          [(4) $240,000,000 for fiscal year 2011; and
          [(5) $240,000,000 for fiscal year 2012.]

SEC. 962. CARBON CAPTURE TECHNOLOGIES.

  (a) In General.--The Secretary shall conduct a program of 
research, development, demonstration, and commercial 
application of carbon capture technologies, which shall include 
facilitation of the development and use of--
          (1) carbon capture technologies for coal and natural 
        gas;
          (2) innovations to significantly decrease emissions 
        at existing power plants; and
          (3) advanced separation technologies.
  (b) Investment.--As a part of the program under subsection 
(a), the Secretary shall maintain robust investments in carbon 
capture technologies for coal and natural gas applications.
  (c) Large-scale Pilots.--In carrying out this section, the 
Secretary is encouraged to support pilot projects that test 
carbon capture technologies on coal and natural gas power and 
industrial systems below the 100 megawatt scale, consistent 
with section 988(b).
  (d) Cost and Performance Goals.--In carrying out the program 
under subsection (a), the Secretary shall establish cost and 
performance goals to assist in the transition of carbon capture 
research to commercially viable technologies.
  (e) Carbon Capture Pilot Test Centers.--
          (1) In general.--As a part of the program under 
        subsection (a), not later than 1 year after the date of 
        the enactment of the Fossil Energy Research and 
        Development Act of 2019, the Secretary shall award 
        grants to eligible entities for the operation of not 
        less than three Carbon Capture Test Centers (in this 
        subsection, known as the ``Centers'') to provide unique 
        testing capabilities for innovative carbon capture 
        technologies for power and industrial systems.
          (2) Purpose.--Each Center shall--
                  (A) advance research, development, 
                demonstration, and commercial application of 
                carbon capture technologies for power and 
                industrial systems; and
                  (B) test technologies that represent the 
                scale of technology development beyond 
                laboratory testing, but not yet advanced to 
                testing under operational conditions at 
                commercial scale.
          (3) Application.--An entity seeking to operate a 
        Center under this subsection shall submit to the 
        Secretary an application at such time and in such 
        manner as the Secretary may require.
          (4) Priority criteria.--In selecting applications to 
        operate a Center under this subsection, the Secretary 
        shall prioritize applicants that--
                  (A) have access to existing or planned 
                research facilities with modular technology 
                capabilities;
                  (B) are institutions of higher education with 
                established expertise in engineering and design 
                for carbon capture technologies, or 
                partnerships with such institutions;
                  (C) have access to existing research and test 
                facilities for pre-combustion, post-combustion, 
                or oxy-combustion technologies; or
                  (D) have test capabilities to address scaling 
                challenges of integrating carbon capture 
                technologies with utility scale power plants.
          (5) Considerations.--In awarding grants for the 
        operation of the Centers under this subsection, the 
        Secretary shall ensure that--
                  (A) the portfolio of Centers includes a 
                diverse representation of regional and resource 
                characteristics; and
                  (B) each new Center demonstrates unique 
                research capabilities, unique regional 
                benefits, or new technology development 
                opportunities.
          (6) Schedule.--Each grant to operate a Center under 
        this subsection shall be awarded for a term of not more 
        than 5 years, subject to the availability of 
        appropriations. The Secretary may renew such 5-year 
        term without limit, subject to a rigorous merit review.
          (7) Termination.--To the extent otherwise authorized 
        by law, the Secretary may eliminate a Center during any 
        5-year term described in paragraph (6) if such Center 
        is underperforming.
  (f) Demonstrations.--
          (1) In general.--As a part of the program under 
        subsection (a), the Secretary may provide grants for 
        large-scale demonstration projects for power and 
        industrial systems that test the scale of technology 
        necessary to gain the operational data needed to 
        understand the technical and performance risks of the 
        technology before the application of the technology at 
        commercial scale, in accordance with this subsection.
          (2) Engineering and design studies.--The Secretary is 
        authorized to fund front-end engineering and design 
        studies in addition to, or in advance of, issuing an 
        award for a demonstration project under this 
        subsection.
          (3) Application.--An entity seeking an award to 
        conduct a demonstration project under this subsection 
        shall submit to the Secretary an application at such 
        time and in such manner as the Secretary may require.
          (4) Limitations.--The Secretary shall only provide an 
        award under this subsection after reviewing each 
        applicant and application regarding--
                  (A) financial strength;
                  (B) construction schedule;
                  (C) market risk; and
                  (D) contractor history.
          (5) Requirements.--A demonstration project funded 
        under this subsection shall--
                  (A) utilize technologies that have completed 
                pilot-scale testing or the equivalent, as 
                determined by the Secretary;
                  (B) secure and maintain agreements for the 
                utilization or sequestration of captured carbon 
                dioxide; and
                  (C) upon completion, demonstrate carbon 
                capture technologies on a power or industrial 
                system capable of capturing not less than 
                100,000 tons of carbon dioxide annually.
  (g) Definition of Power System.--In this section, the term 
``power system'' means any electricity generating unit that 
utilizes fossil fuels to generate electricity provided to the 
electric grid or directly to a consumer.
  (h) Authorization of Appropriations.--Of the amounts made 
available under section 961, there are authorized to be 
appropriated to the Secretary for activities under this 
section--
          (1) $300,000,000 for fiscal year 2020;
          (2) $315,000,000 for fiscal year 2021;
          (3) $330,750,000 for fiscal year 2022;
          (4) $347,288,000 for fiscal year 2023; and
          (5) $364,652,000 for fiscal year 2024.

SEC. 963. CARBON STORAGE VALIDATION AND TESTING.

  (a) Carbon Storage.--The Secretary, in consultation with the 
Administrator of the Environmental Protection Agency, shall 
carry out a program of research, development, and demonstration 
for carbon storage. The program shall--
          (1) in coordination with relevant Federal agencies, 
        develop and maintain mapping tools and resources that 
        assess the capacity of geologic storage formations in 
        the United States;
          (2) develop monitoring tools, modeling of geologic 
        formations, and analyses to predict and verify carbon 
        dioxide containment and account for sequestered carbon 
        dioxide in geologic storage sites;
          (3) research potential environmental, safety, and 
        health impacts in the event of a leak to the atmosphere 
        or to an aquifer, and any corresponding mitigation 
        actions or responses to limit harmful consequences;
          (4) evaluate the interactions of carbon dioxide with 
        formation solids and fluids, including the propensity 
        of injections to induce seismic activity;
          (5) assess and ensure the safety of operations 
        related to geologic sequestration of carbon dioxide;
          (6) determine the fate of carbon dioxide concurrent 
        with and following injection into geologic formations;
          (7) support cost and business model assessments to 
        examine the economic viability of technologies and 
        systems developed under this program; and
          (8) provide information to State, local, and Tribal 
        governments, the Environmental Protection Agency, and 
        other appropriate entities, to support development of a 
        regulatory framework for commercial-scale sequestration 
        operations that ensure the protection of human health 
        and the environment.
  (b) Geologic Settings.--In carrying out research activities 
under this section, the Secretary shall consider a variety of 
candidate geologic settings, both onshore and offshore, 
including--
          (1) operating oil and gas fields;
          (2) depleted oil and gas fields;
          (3) residual oil zones;
          (4) unconventional reservoirs and rock types;
          (5) unmineable coal seams;
          (6) saline formations in both sedimentary and 
        basaltic geologies;
          (7) geologic systems that may be used as engineered 
        reservoirs to extract economical quantities of brine 
        from geothermal resources of low permeability or 
        porosity; and
          (8) geologic systems containing in situ carbon 
        dioxide mineralization formations.
  (c) Regional Carbon Sequestration Partnerships.--
          (1) In general.--The Secretary shall carry out large-
        scale carbon sequestration demonstrations for geologic 
        containment of carbon dioxide to collect and validate 
        information on the cost and feasibility of commercial 
        deployment of technologies for the geologic containment 
        of carbon dioxide. The Secretary may fund new 
        demonstrations or expand the work completed at one or 
        more of the existing regional carbon sequestration 
        partnerships.
          (2) Demonstration components.--Each demonstration 
        described in paragraph (1) shall include longitudinal 
        tests involving carbon dioxide injection and 
        monitoring, mitigation, and verification operations.
          (3) Clearinghouse.--The National Energy Technology 
        Laboratory shall act as a clearinghouse of shared 
        information and resources for the regional carbon 
        sequestration partnerships and any new demonstrations 
        funded under this section.
          (4) Report.--Not later than 1 year after the date of 
        enactment of the Fossil Energy Research and Development 
        Act of 2019, the Secretary shall provide to the 
        Committee on Science, Space, and Technology of the 
        House of Representatives and the Committee on Energy 
        and Natural Resources of the Senate a report that--
                  (A) assesses the progress of all regional 
                carbon sequestration partnerships;
                  (B) identifies the remaining challenges in 
                achieving carbon sequestration that is reliable 
                and safe for the environment and public health; 
                and
                  (C) creates a roadmap for Department of 
                Energy carbon storage research and development 
                activities through 2030 with the goal of 
                reducing economic and policy barriers to 
                commercial carbon sequestration.
          (5) Large-scale carbon sequestration.--For purposes 
        of this subsection, ``large-scale carbon 
        sequestration'' means a scale that demonstrates the 
        ability to inject and sequester several million metric 
        tons carbon dioxide for at least 10 years.
  (d) Integrated Storage Projects.--The Secretary may carry out 
a program for the purpose of transitioning the large-scale 
carbon sequestration demonstration projects under subsection 
(c) into integrated, commercial storage complexes. The program 
shall focus on--
          (1) qualifying geologic storage sites in order to 
        accept large volumes of carbon dioxide acceptable for 
        commercial contracts;
          (2) understanding the technical and commercial 
        viability of storage sites;
          (3) developing the qualification processes that will 
        be necessary for a diverse range of geologic storage 
        sites to commercially accept carbon dioxide; and
          (4) any other activities the Secretary determines 
        necessary to transition the large scale demonstration 
        storage projects into commercial ventures.
  (e) Cost Sharing.--The Secretary shall require cost sharing 
under this section in accordance with section 988.
  (f) Authorization of Appropriations.--Of the amounts made 
available under section 961, there are authorized to be 
appropriated to the Secretary for activities under this 
section--
          (1) $120,000,000 for fiscal year 2020;
          (2) $126,000,000 for fiscal year 2021;
          (3) $132,300,000 for fiscal year 2022;
          (4) $138,915,000 for fiscal year 2023; and
          (5) $145,860,750 for fiscal year 2024.

SEC. 963A. CARBON UTILIZATION.

  (a) In General.--The Secretary shall carry out a program of 
research, development, and demonstration for carbon 
utilization. The program shall--
          (1) assess and monitor potential changes in life 
        cycle carbon dioxide and other greenhouse gas 
        emissions, and other environmental safety indicators of 
        new technologies, practices, processes, or methods, 
        used in enhanced hydrocarbon recovery as part of the 
        activities authorized in section 963 of the Energy 
        Policy Act of 2005 (42 U.S.C. 16293);
          (2) identify and evaluate novel uses for carbon, 
        including the conversion of carbon oxides, in a manner 
        that, on a full life-cycle basis, achieves a permanent 
        reduction in, or avoidance of a net increase in carbon 
        dioxide in the atmosphere, for use in commercial and 
        industrial products, such as--
                  (A) chemicals;
                  (B) plastics;
                  (C) building materials;
                  (D) fuels;
                  (E) cement;
                  (F) products of coal utilization in power 
                systems (as such term is defined in section 
                962(e)), or other applications; or
                  (G) other products with demonstrated market 
                value;
          (3) carbon capture technologies for industrial 
        systems;
          (4) identify and assess alternative uses for coal 
        that result in no net emissions of carbon dioxide or 
        other pollutants, including products derived from 
        carbon engineering, carbon fiber, and coal conversion 
        methods.
  (b) Authorization of Appropriations.--Of the amounts made 
available under section 961, there are authorized to be 
appropriated to the Secretary for activities under this 
section--
          (1) $25,000,000 for fiscal year 2020;
          (2) $26,250,000 for fiscal year 2021;
          (3) $27,562,500 for fiscal year 2022;
          (4) $28,940,625 for fiscal year 2023; and
          (5) $30,387,656 for fiscal year 2024.

           *       *       *       *       *       *       *


SEC. 969. NATURAL GAS CARBON CAPTURE RESEARCH, DEVELOPMENT, AND 
                    DEMONSTRATION PROGRAM.

  (a) Definitions.--In this section:
          (1) Natural gas.--The term ``natural gas'' includes 
        any fuel consisting in whole or in part of--
                  (A) natural gas;
                  (B) liquid petroleum gas;
                  (C) synthetic gas derived from petroleum or 
                natural gas liquids;
                  (D) any mixture of natural gas and synthetic 
                gas; or
                  (E) any product derived directly from natural 
                gas, including hydrogen.
          (2) Qualifying electric generation facility.--The 
        term ``qualifying electric generation facility'' means 
        a facility that generates electric energy through the 
        use of natural gas.
          (3) Qualifying technology.--The term ``qualifying 
        technology'' means any technology to capture carbon 
        dioxide produced during the generation of electricity 
        from natural gas power systems
  (b) Establishment of Research, Development, and Demonstration 
Program.--
          (1) In general.--The Secretary shall establish a 
        program under which the Secretary shall, through a 
        competitive, merit-reviewed process, award grants to 
        eligible entities to conduct research, development, and 
        demonstration of qualifying technologies.
          (2) Objectives.--The objectives of the program 
        established under paragraph (1) shall be--
                  (A) to conduct research to accelerate the 
                development of qualifying technologies to 
                reduce the quantity of carbon dioxide emissions 
                released from qualifying electric generation 
                facilities, including--
                          (i) pre- and post-combustion capture 
                        technologies; and
                          (ii) technologies to improve the 
                        thermodynamics, kinetics, scalability, 
                        durability, and flexibility of carbon 
                        capture technologies for use during the 
                        generation of electricity from natural 
                        gas power systems;
                  (B) to expedite and carry out demonstration 
                projects (including pilot projects) for 
                qualifying technologies in partnership with 
                qualifying electric generation facilities in 
                order to demonstrate the technical feasibility 
                and economic potential for commercial 
                deployment of technologies developed pursuant 
                to subparagraph (A); and
                  (C) to identify any barriers to the 
                commercial deployment of any qualifying 
                technologies under development pursuant to 
                research conducted pursuant to subparagraph 
                (A).
          (3) Eligible entities.-- An entity eligible to 
        receive a grant under this subsection is--
                  (A) a National Laboratory;
                  (B) an institution of higher education;
                  (C) a research facility;
                  (D) a multi-institutional collaboration; or
                  (E) another appropriate entity or combination 
                of any of the entities specified in 
                subparagraphs (A) through (D).
  (c) Carbon Capture Facilities Demonstration Program.--
          (1) Establishment.--As part of the program 
        established under paragraph (1), the Secretary shall 
        establish a demonstration program under which the 
        Secretary shall, through a competitive, merit-reviewed 
        process, enter into cooperative agreements with 
        entities that submit applications pursuant to paragraph 
        (4) for demonstration or pilot projects to construct 
        and operate, by not later than September 30, 2025, up 
        to five facilities to capture carbon dioxide from 
        qualifying electric generation facilities. The 
        Secretary shall, to the maximum extent practicable, 
        provide technical assistance to any entity seeking to 
        enter into such a cooperative agreement in obtaining 
        any necessary permits and licenses to demonstrate 
        qualifying technologies.
          (2) Cooperative agreements.--The Secretary may enter 
        into a cooperative agreement under this subsection with 
        industry stakeholders, including any such industry 
        stakeholder operating in partnership with National 
        Laboratories, institutions of higher education, multi-
        institutional collaborations, and other appropriate 
        entities.
          (3) Goals.--Each demonstration or pilot project 
        carried out pursuant to the demonstration program under 
        this subsection shall--
                  (A) be designed to further the development of 
                qualifying technologies that may be used by a 
                qualifying electric generation facility;
                  (B) be financed in part by the private 
                sector;
                  (C) if necessary, secure agreements for the 
                offtake of carbon dioxide emissions captured by 
                qualifying technologies during the project; and
                  (D) support energy production in the United 
                States.
          (4) Request for applications.--Not later than 120 
        days after the date of enactment of this Act, the 
        Secretary shall solicit applications for cooperative 
        agreements for projects--
                  (A) to demonstrate qualifying technologies at 
                up to five qualifying electric generation 
                facilities; and
                  (B) to construct and operate three or more 
                facilities to capture carbon dioxide from a 
                qualifying electric generation facility.
          (5) Review of applications.--In considering 
        applications submitted under paragraph (4), the 
        Secretary, to the maximum extent practicable, shall--
                  (A) ensure a broad geographic distribution of 
                project sites;
                  (B) ensure that a broad selection of 
                qualifying electric generation facilities are 
                represented;
                  (C) ensure that a broad selection of 
                qualifying technologies are represented;
                  (D) require information and knowledge gained 
                by each participant in the demonstration 
                program to be transferred and shared among all 
                participants in the demonstration program; and
                  (E) leverage existing--
                          (i) public-private partnerships; and
                          (ii) Federal resources.
  (d) Cost Sharing.--In carrying out this section, the 
Secretary shall require cost sharing in accordance with section 
988.
  (e) Report.--Not later than 180 days after the date on which 
the Secretary solicits applications under subsection (c)(3), 
and annually thereafter, the Secretary shall submit to the 
appropriate committees of jurisdiction of the Senate and the 
House of Representatives a report that includes--
          (1) a detailed description of how applications for 
        cooperative agreements under subsection (b) will be 
        solicited and evaluated, including--
                  (A) a list of any activities carried out by 
                the Secretary to solicit or evaluate 
                applications; and
                  (B) a process for ensuring that any projects 
                carried out under a cooperative agreement are 
                designed to result in the development or 
                demonstration of qualifying technologies;
          (2)(A) in the case of the first report under this 
        subsection, a detailed list of technical milestones for 
        the development and demonstration of each qualifying 
        technology pursued under subsection (b); and
          (B) in the case of each subsequent report under this 
        subsection, the progress made towards achieving such 
        technical milestones during the period covered by the 
        report; and
          (3) with respect to the demonstration program 
        established under subsection (c), includes--
                  (A) an estimate of the cost of licensing, 
                permitting, constructing, and operating each 
                carbon capture facility expected to be 
                constructed under that demonstration program;
                  (B) a schedule for the planned construction 
                and operation of each demonstration or pilot 
                project; and
                  (C) an estimate of any financial assistance, 
                compensation, or incentives proposed to be paid 
                by the host State, Indian Tribe, or local 
                government with respect to each facility.
  (f) Funding.--For each of fiscal years 2020 through 2025, out 
of any amounts appropriated to the Department to carry out 
fossil energy research and development activities and not 
otherwise obligated, the Secretary may use to carry out this 
section not more than $50,000,000.

SEC. 969A. ADVANCED ENERGY SYSTEMS.

  (a) In General.--The Secretary shall conduct a program, with 
the purpose of reducing emissions from fossil fuel power 
generation by not less than 50 percent, of research, 
development, demonstration, and commercial application with 
respect to the following:
          (1) High-efficiency turbines in accordance with the 
        program under section 969A-1.
          (2) Supercritical and ultrasupercritical carbon 
        dioxide, with an emphasis on developing directly-fired 
        and indirectly fired cycles in the next 10 years.
          (3) Advanced combustion systems, including oxy-
        combustion systems and chemical looping.
          (4) Fuel cell technologies for low-cost, high-
        efficiency, fuel-flexible, modular power systems, 
        including solid oxide fuel cell technology for 
        commercial, residential, and distributed generation 
        systems, using improved manufacturing production and 
        processes.
          (5) Gasification systems to enable carbon capture, 
        improve efficiency, and reduce capital and operating 
        costs.
          (6) Thermal cycling with ramping or rapid black start 
        capabilities that do not compromise efficiency or 
        environmental performance.
          (7) Small-scale and modular coal-fired technologies 
        with reduced carbon outputs or carbon capture that can 
        support incremental power generation capacity 
        additions.
  (b) Priority.--In carrying out the program under subsection 
(a), the Secretary is encouraged to prioritize transformational 
technologies that enable a step change in reduction of 
emissions as compared to the technology in existence on the 
date of enactment of this section.
  (c) Authorization of Appropriations.--Of the amounts made 
available under section 961, there are authorized to be 
appropriated to the Secretary for activities under this section 
and section 969A-1--
          (1) $150,000,000 for fiscal year 2020;
          (2) $157,500,000 for fiscal year 2021;
          (3) $165,375,000 for fiscal year 2022;
          (4) $173,643,750 for fiscal year 2023; and
          (5) $182,325,938 for fiscal year 2024.

SEC. 969A-1. HIGH EFFICIENCY GAS TURBINES.

  (a) In General.--The Secretary of Energy, through the Office 
of Fossil Energy, shall carry out a multiyear, multiphase 
program of research, development, and technology demonstration 
to improve the efficiency of gas turbines used in power 
generation systems and to identify the technologies that 
ultimately will lead to gas turbine combined cycle efficiency 
of 67 percent or simple cycle efficiency of 50 percent.
  (b) Program Elements.--The program under this section shall--
          (1) support first-of-a-kind engineering and detailed 
        gas turbine design for megawatt-scale and utility-scale 
        electric power generation, including--
                  (A) high temperature materials, including 
                superalloys, coatings, and ceramics;
                  (B) improved heat transfer capability;
                  (C) manufacturing technology required to 
                construct complex three-dimensional geometry 
                parts with improved aerodynamic capability;
                  (D) combustion technology to produce higher 
                firing temperature while lowering nitrogen 
                oxide and carbon monoxide emissions per unit of 
                output;
                  (E) advanced controls and systems 
                integration;
                  (F) advanced high performance compressor 
                technology; and
                  (G) validation facilities for the testing of 
                components and subsystems;
          (2) include technology demonstration through 
        component testing, subscale testing, and full-scale 
        testing in existing fleets;
          (3) include field demonstrations of the developed 
        technology elements so as to demonstrate technical and 
        economic feasibility; and
          (4) assess overall combined cycle and simple cycle 
        system performance.
  (c) Program Goals.--The goals of the multiphase program 
established under subsection (a) shall be--
          (1) in phase I--
                  (A) to develop the conceptual design of 
                advanced high efficiency gas turbines that can 
                achieve at least 65-percent combined cycle 
                efficiency or 47-percent simple cycle 
                efficiency on a lower heating value basis; and
                  (B) to develop and demonstrate the technology 
                required for advanced high efficiency gas 
                turbines that can achieve at least 65-percent 
                combined cycle efficiency or 47-percent simple 
                cycle efficiency on a lower heating value 
                basis; and
          (2) in phase II, to develop the conceptual design for 
        advanced high efficiency gas turbines that can achieve 
        at least 67-percent combined cycle efficiency or 50-
        percent simple cycle efficiency on a lower heating 
        value basis.
  (d) Proposals.--Within 180 days after the date of enactment 
of this Act, the Secretary shall solicit grant and contract 
proposals from industry, small businesses, universities, and 
other appropriate parties for conducting activities under this 
Act. In selecting proposals, the Secretary shall emphasize--
          (1) the extent to which the proposal will stimulate 
        the creation or increased retention of jobs in the 
        United States; and
          (2) the extent to which the proposal will promote and 
        enhance United States technology leadership.
  (e) Competitive Awards.--The provision of funding under this 
section shall be on a competitive basis with an emphasis on 
technical merit.
  (f) Cost Sharing.--Section 988 of the Energy Policy Act of 
2005 (42 U.S.C. 16352) shall apply to an award of financial 
assistance made under this section.
  (g) Limits on Participation.--The limits on participation 
applicable under section 999E of the Energy Policy Act of 2005 
(42 U.S.C. 16375) shall apply to financial assistance awarded 
under this section.

SEC. 969B. RARE EARTH ELEMENTS.

  (a) In General.--In coordination with the relevant Federal 
agencies, the Secretary shall conduct research to develop and 
assess methods to separate and recover rare earth elements and 
other strategic minerals and coproducts from coal and coal 
byproduct streams. The program shall--
          (1) develop advanced rare earth element separation 
        and extraction processes using coal-based resources as 
        feedstock materials;
          (2) assess the technical and economic feasibility of 
        recovering rare earth elements from coal-based 
        resources and validate such feasibility with prototype 
        systems producing salable, high-purity rare earth 
        elements from coal-based resources; and
          (3) assess and mitigate any environmental and public 
        health impacts of recovering rare earth elements from 
        coal-based resources.
  (b) Authorization of Appropriations.--Of the amounts made 
available under section 961, there are authorized to be 
appropriated to the Secretary for activities under this 
section--
          (1) $23,000,000 for fiscal year 2020;
          (2) $24,150,000 for fiscal year 2021;
          (3) $25,357,500 for fiscal year 2022;
          (4) $26,625,375 for fiscal year 2023; and
          (5) $27,956,644 for fiscal year 2024.

SEC. 969C. CARBON REMOVAL.

  (a) Establishment.--The Secretary, in coordination with the 
appropriate Federal agencies, shall establish a research, 
development, and demonstration program to remove carbon dioxide 
from the atmosphere on a large scale. The program may include 
activities in--
          (1) direct air capture and storage technologies;
          (2) enhanced carbon mineralization;
          (3) bioenergy with carbon capture and sequestration;
          (4) agricultural and grazing practices;
          (5) forest management and afforestation; and
          (6) planned or managed carbon sinks, including 
        natural and artificial.
  (b) Prioritization.--In carrying out the program established 
in subsection (a), the Secretary shall prioritize--
          (1) the activities described in paragraphs (1) and 
        (2) of subsection (a), acting through the Assistant 
        Secretary for Fossil Energy; and
          (2) the activities described in subsection (a)(3), 
        acting through the Assistant Secretary for Energy 
        Efficiency and Renewable Energy and the Assistant 
        Secretary for Fossil Energy.
  (c) Considerations.--The program under this section shall 
identify and develop carbon removal technologies and strategies 
that consider the following:
          (1) Land use changes, including impacts on natural 
        and managed ecosystems.
          (2) Ocean acidification.
          (3) Net greenhouse gas emissions.
          (4) Commercial viability.
          (5) Potential for near-term impact.
          (6) Potential for carbon reductions on a gigaton 
        scale.
          (7) Economic co-benefits.
  (d) Accounting.--The Department shall collaborate with the 
Environmental Protection Agency and other relevant agencies to 
develop and improve accounting frameworks and tools to 
accurately measure carbon removal and sequestration methods and 
technologies across the Federal Government.
  (e) Air Capture Technology Prize.--Not later than 1 year 
after the date of enactment of this Act, as part of the program 
carried out under this section, the Secretary shall carry out a 
program to award competitive technology prizes for carbon 
dioxide capture from ambient air or water. In carrying out this 
subsection, the Secretary shall--
          (1) in accordance with section 24 of the Stevenson-
        Wydler Technology Innovation Act of 1980 (15 U.S.C. 
        3719), develop requirements for--
                  (A) the prize competition process;
                  (B) minimum performance standards for 
                projects eligible to participate in the prize 
                competition; and
                  (C) monitoring and verification procedures 
                for projects selected to receive a prize award;
          (2) establish minimum levels for the capture of 
        carbon dioxide from ambient air or water that are 
        required to qualify for a prize award; and
          (3) offer prize awards for any of the following:
                  (A) A design for a promising capture 
                technology that will--
                          (i) be operated on a demonstration 
                        scale; and
                          (ii) have the potential to achieve 
                        significant reduction in the level of 
                        carbon dioxide in the atmosphere.
                  (B) A successful bench-scale demonstration of 
                a capture technology.
                  (C) An operational capture technology on a 
                commercial scale.
  (f) Direct Air Capture Test Center.--
          (1) In general.--Not later than 1 year after the date 
        of enactment of the Fossil Energy Research and 
        Development Act of 2019, the Secretary shall award 
        grants to one or more eligible entities for the 
        operation of one or more test centers (in this 
        subsection, known as ``Centers'') to provide unique 
        testing capabilities for innovative direct air capture 
        and storage technologies.
          (2) Purpose.--Each Center shall--
                  (A) advance research, development, 
                demonstration, and commercial application of 
                direct air capture and storage technologies;
                  (B) support pilot plant and full-scale 
                demonstration projects and test technologies 
                that represent the scale of technology 
                development beyond laboratory testing but not 
                yet advanced to test under operational 
                conditions at commercial scale;
                  (C) develop front-end engineering design and 
                economic analysis; and
                  (D) maintain a public record of pilot and 
                full-scale plant performance.
          (3) Priority criteria.--In selecting applications to 
        operate a Center under this subsection, the Secretary 
        shall prioritize applicants that--
                  (A) have access to existing or planned 
                research facilities;
                  (B) are institutions of higher education with 
                established expertise in engineering for direct 
                air capture technologies, or partnerships with 
                such institutions; or
                  (C) have access to existing research and test 
                facilities for bulk materials design and 
                testing, component design and testing, or 
                professional engineering design.
          (4) Schedule.--Each grant to operate a Center under 
        this subsection shall be awarded for a term of not more 
        than 5 years, subject to the availability of 
        appropriations. The Secretary may renew such 5-year 
        term without limit, subject to a rigorous merit review.
          (5) Termination.--To the extent otherwise authorized 
        by law, the Secretary may eliminate the center during 
        any 5-year term described in the last paragraph if it 
        is underperforming.
  (g) Large-scale Pilots and Demonstrations.--In supporting the 
technology development activities under this section, the 
Secretary is encouraged to support carbon removal pilot and 
demonstration projects, including--
          (1) pilot projects that test direct air capture 
        systems capable of capturing 10 to 100 tonnes of carbon 
        oxides per year to provide data for demonstration-scale 
        projects; and
          (2) direct air capture demonstration projects capable 
        of capturing greater than 1,000 tonnes of carbon oxides 
        per year.
  (h) Intra-agency Research.--In carrying out the program 
established in (a), the Secretary shall encourage and promote 
collaborations among relevant offices and agencies within the 
Department.
  (i) Authorization of Appropriations.--Of the amounts made 
available under section 961, there are authorized to be 
appropriated to the Secretary for activities under this 
section--
          (1) $75,000,000 for fiscal year 2020, $15,000,000 of 
        which are authorized to carry out subsection (e);
          (2) $63,000,000 for fiscal year 2021;
          (3) $66,150,000 for fiscal year 2022;
          (4) $69,458,000 for fiscal year 2023; and
          (5) $72,930,000 for fiscal year 2024.

SEC. 969D. METHANE LEAK DETECTION AND MITIGATION.

  (a) In General.--The Secretary, in consultation with the 
Administrator of the Environmental Protection Agency and other 
appropriate Federal agencies, shall carry out a program of 
methane leak detection and mitigation research, development, 
demonstration, and commercial application for technologies and 
methods that significantly reduce emissions. In carrying out 
the program, the Secretary shall--
          (1) develop cooperative agreements with State or 
        local governments or private entities to provide 
        technical assistance to--
                  (A) prevent or respond to methane leaks, 
                including detection, mitigation, and 
                identification of leaks throughout the natural 
                gas infrastructure (which includes natural gas 
                storage, pipelines, and natural gas production 
                sites); and
                  (B) protect public health in the event of a 
                major methane leak;
          (2) promote demonstration and adoption of effective 
        methane emissions-reduction technologies in the private 
        sector;
          (3) in coordination with representatives from private 
        industry, State and local governments, and institutions 
        of higher education, create a publicly accessible 
        resource for best practices in the design, 
        construction, maintenance, performance, monitoring, and 
        incident response for--
                  (A) pipeline systems;
                  (B) wells;
                  (C) compressor stations;
                  (D) storage facilities; and
                  (E) other vulnerable infrastructure;
          (4) identify high-risk characteristics of pipelines, 
        wells, and materials, geologic risk factors, or other 
        key factors that increase the likelihood of methane 
        leaks; and
          (5) in collaboration with private entities and 
        institutions of higher education, quantify and map 
        significant geologic methane seeps across the United 
        States.
  (b) Considerations.--In carrying out the program under this 
section, the Secretary shall consider the following:
          (1) Historical data of methane leaks.
          (2) Public health consequences.
          (3) Public safety.
          (4) Novel materials and designs for pipelines, 
        compressor stations, components, and wells (including 
        casing, cement, wellhead).
          (5) Regional geologic traits.
          (6) Induced and natural seismicity.
  (c) Authorization of Appropriations.--Of the amounts made 
available under section 961, there are authorized to be 
appropriated to the Secretary for activities under this 
section--
          (1) $22,000,000 for fiscal years 2020;
          (2) $23,100,000 for fiscal years 2021;
          (3) $24,255,000 for fiscal years 2022;
          (4) $25,467,750 for fiscal years 2023; and
          (5) $26,741,138 for fiscal years 2024.

SEC. 969E. WASTE GAS UTILIZATION.

  The Secretary shall carry out a program of research, 
development, and demonstration for waste gas utilization. The 
program shall--
          (1) identify and evaluate novel uses for light 
        hydrocarbons, such as methane, ethane, propane, butane, 
        pentane and hexane, produced during oil and shale gas 
        production, including the production of chemicals or 
        transportation fuels;
          (2) develop advanced gas conversion technologies that 
        are modular and compact, and may leverage advanced 
        manufacturing technologies;
          (3) support demonstration activities at operating oil 
        and gas facilities to test the performance and cost-
        effectiveness of new gas conversion technologies; and
          (4) assess and monitor potential changes in life 
        cycle greenhouse gas emissions that may result from the 
        use of technologies developed under this program.

           *       *       *       *       *       *       *

                              ----------                              


          METHANE HYDRATE RESEARCH AND DEVELOPMENT ACT OF 2000




           *       *       *       *       *       *       *
SEC. 4. METHANE HYDRATE RESEARCH AND DEVELOPMENT PROGRAM.

  (a) In General.--
          (1) Commencement of program.--Not later than 90 days 
        after the date of enactment of the Energy Research, 
        Development, Demonstration, and Commercial Application 
        Act of 2005, the Secretary, in consultation with the 
        Secretary of Commerce, the Secretary of Defense, the 
        Secretary of the Interior, and the Director, shall 
        commence a program of methane hydrate research and 
        development in accordance with this section.
          (2) Designations.--The Secretary, the Secretary of 
        Commerce, the Secretary of Defense, the Secretary of 
        the Interior, and the Director shall designate 
        individuals to carry out this section.
          (3) Coordination.--The individual designated by the 
        Secretary shall coordinate all activities within the 
        Department of Energy relating to methane hydrate 
        research and development.
          (4) Meetings.--The individuals designated under 
        paragraph (2) shall meet not later than 180 days after 
        the date of enactment of the Energy Research, 
        Development, Demonstration, and Commercial Application 
        Act of 2005 and not less frequently than every 180 days 
        thereafter to--
                  (A) review the progress of the program under 
                paragraph (1); and
                  (B) coordinate interagency research and 
                partnership efforts in carrying out the 
                program.
  [(b) Grants, Contracts, Cooperative Agreements, Interagency 
Funds Transfer Agreements, and Field Work Proposals.--
          [(1) Assistance and coordination.--In carrying out 
        the program of methane hydrate research and development 
        authorized by this section, the Secretary may award 
        grants to, or enter into contracts or cooperative 
        agreements with, institutions of higher education, 
        oceanographic institutions, and industrial enterprises 
        to--
                  [(A) conduct basic and applied research to 
                identify, explore, assess, and develop methane 
                hydrate as a commercially viable source of 
                energy;
                  [(B) identify methane hydrate resources 
                through remote sensing;
                  [(C) acquire and reprocess seismic data 
                suitable for characterizing methane hydrate 
                accumulations;
                  [(D) assist in developing technologies 
                required for efficient and environmentally 
                sound development of methane hydrate resources;
                  [(E) promote education and training in 
                methane hydrate resource research and resource 
                development through fellowships or other means 
                for graduate education and training;
                  [(F) conduct basic and applied research to 
                assess and mitigate the environmental impact of 
                hydrate degassing (including both natural 
                degassing and degassing associated with 
                commercial development);
                  [(G) develop technologies to reduce the risks 
                of drilling through methane hydrates; and
                  [(H) conduct exploratory drilling, well 
                testing, and production testing operations on 
                permafrost and non-permafrost gas hydrates in 
                support of the activities authorized by this 
                paragraph, including drilling of one or more 
                full-scale production test wells.
          [(2) Competitive peer review.--Funds made available 
        under paragraph (1) shall be made available based on a 
        competitive process using external scientific peer 
        review of proposed research.]
  (b) Grants, Contracts, Cooperative Agreements, Interagency 
Funds Transfer Agreements, and Field Work Proposals.--
          (1) Assistance and coordination.--In carrying out the 
        program of methane hydrate research and development 
        authorized by this section, the Secretary may award 
        grants, or enter into contracts or cooperative 
        agreements to--
                  (A) conduct research to identify the 
                environmental, health, and safety impacts of 
                methane hydrate development;
                  (B) assess and develop technologies to 
                mitigate environmental impacts of the 
                exploration and commercial development of 
                methane hydrates as an energy resource, 
                including the use of seismic testing, and to 
                reduce the public health and safety risks of 
                drilling through methane hydrates;
                  (C) conduct research to assess and mitigate 
                the environmental impact of hydrate degassing 
                (including natural degassing and degassing 
                associated with commercial development); or
                  (D) expand education and training programs in 
                methane hydrate resource research and resource 
                development through fellowships or other means 
                for graduate education and training.
          (2) Environmental monitoring and research.--The 
        Secretary shall conduct a long-term environmental 
        monitoring and research program to study the effects of 
        production from methane hydrate reservoirs.
          (3) Competitive peer review.--Funds made available to 
        carry out paragraphs (1) and (2) shall be made 
        available based on a competitive process using external 
        scientific peer review of proposed research.
  (c) Methane Hydrates Advisory Panel.--
          (1) In general.--The Secretary shall establish an 
        advisory panel (including the hiring of appropriate 
        staff) consisting of representatives of industrial 
        enterprises, institutions of higher education, 
        oceanographic institutions, State agencies, and 
        environmental organizations with knowledge and 
        expertise in the natural gas hydrates field, to--
                  (A) assist in developing recommendations and 
                broad programmatic priorities for the methane 
                hydrate research and development program 
                carried out under subsection (a)(1);
                  (B) provide scientific oversight for the 
                methane hydrates program, including assessing 
                progress toward program goals, evaluating 
                program balance, and providing recommendations 
                to enhance the quality of the program over 
                time; and
                  (C) not later than 2 years after the date of 
                enactment of the Energy Research, Development, 
                Demonstration, and Commercial Application Act 
                of 2005, and at such later dates as the panel 
                considers advisable, submit to Congress--
                          (i) an assessment of the methane 
                        hydrate research program; and
                          (ii) an assessment of the 5-year 
                        research plan of the Department of 
                        Energy.
          (2) Conflicts of interest.--In appointing each member 
        of the advisory panel established under paragraph (1), 
        the Secretary shall ensure, to the maximum extent 
        practicable, that the appointment of the member does 
        not pose a conflict of interest with respect to the 
        duties of the member under this Act.
          (3) Meetings.--The advisory panel shall--
                  (A) hold the initial meeting of the advisory 
                panel not later than 180 days after the date of 
                establishment of the advisory panel; and
                  (B) meet biennially thereafter.
          (4) Coordination.--The advisory panel shall 
        coordinate activities of the advisory panel with 
        program managers of the Department of Energy at 
        appropriate National Laboratories.
  (d) Construction Costs.--None of the funds made available to 
carry out this section may be used for the construction of a 
new building or the acquisition, expansion, remodeling, or 
alteration of an existing building (including site grading and 
improvement and architect fees).
  (e) Responsibilities of the Secretary.--In carrying out 
[subsection (b)(1)] paragraphs (1) and (2) of subsection (b), 
the Secretary shall--
          (1) facilitate and develop partnerships among 
        government, industrial enterprises, and institutions of 
        higher education to research, identify, assess, and 
        explore methane hydrate resources;
          (2) undertake programs to develop basic information 
        necessary for promoting long-term interest in methane 
        hydrate resources as an energy source;
          (3) ensure that the data and information developed 
        through the program are accessible and widely 
        disseminated as needed and appropriate;
          (4) promote cooperation among agencies that are 
        developing technologies that may hold promise for 
        methane hydrate resource development;
          (5) report annually to Congress on the results of 
        actions taken to carry out this Act; and
          (6) ensure, to the maximum extent practicable, 
        greater participation by the Department of Energy in 
        international cooperative efforts.

           *       *       *       *       *       *       *


[SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

   [There are authorized to be appropriated to the Secretary to 
carry out this Act, to remain available until expended--
          [(1) $15,000,000 for fiscal year 2006;
          [(2) $20,000,000 for fiscal year 2007;
          [(3) $30,000,000 for fiscal year 2008;
          [(4) $40,000,000 for fiscal year 2009; and
          [(5) $50,000,000 for fiscal year 2010.]

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

  Of the amounts made available under section 961 of the Energy 
Policy Act of 2005 (42 U.S.C. 16291), there are authorized to 
be appropriated to the Secretary to carry out this Act 
$15,000,000, to remain available until expended, for each of 
fiscal years 2020 through 2024.

                           XX. Minority Views

    It is the view of the minority that the use of domestic 
fossil energy resources is indispensable to the stability of 
critical U.S. infrastructure, and to the overall economic 
growth and national security of the United States. Basic and 
early-stage research and development are needed to improve and 
modernize fossil fuels' performance and reduce their 
environmental impact. Federal research agencies like the 
Department of Energy (DOE) should make targeted investments in 
innovative fossil energy technologies to develop a balanced 
portfolio of next-generation clean energy sources.
    It is the view of the minority that this legislation would 
unnecessarily narrow DOE's fossil energy research activities to 
focus on emissions control technologies. While the minority 
acknowledges the importance of this research as one component 
of the DOE fossil energy portfolio, transformational 
technologies in other areas are needed to meet long-term, 
mission-critical needs of future fossil-based power systems. 
Fossil fuels remain our most depended on energy source, and new 
approaches to find and develop these, like advanced analysis of 
complex subsurface dynamics, will help ensure the long-term 
stability of our clean energy future.
    It is the view of the minority that H.R. 3607 includes an 
unnecessary increase in authorization of appropriations for DOE 
work that is narrowly focused on emissions control, rather than 
a more balanced portfolio of research. The minority opposes the 
micromanaging of DOE's work in fossil energy research in H.R. 
3607, and believes more emphasis should be placed on the 
development of novel technologies, rather than emission 
controls.
                                   Frank D. Lucas,
                                           Ranking Member.
                                   Randy K. Weber, Sr.,
                                           Ranking Member Subcommittee 
                                               on Energy.
	
	
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