[Senate Report 116-115]
[From the U.S. Government Publishing Office]
Calendar No. 218
116th Congress } { Report
SENATE
1st Session } { 116-115
======================================================================
ENHANCING FOSSIL FUEL ENERGY CARBON TECHNOLOGY ACT OF 2019
_______
September 24, 2019.--Ordered to be printed
_______
Ms. Murkowski, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 1201]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 1201) to amend the fossil energy research
and development provisions of the Energy Policy Act of 2005 to
enhance fossil fuel technology, and for other purposes, having
considered the same, reports favorably thereon with an
amendment (in the nature of a substitute) and recommends that
the bill, as amended, do pass.
Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Enhancing Fossil Fuel Energy Carbon
Technology Act of 2019'' or the ``EFFECT Act of 2019''.
SEC. 2. ESTABLISHMENT OF COAL AND NATURAL GAS TECHNOLOGY PROGRAM.
(a) In General.--The Energy Policy Act of 2005 is amended by
striking section 962 (42 U.S.C. 16292) and inserting the following:
``SEC. 962. COAL AND NATURAL GAS TECHNOLOGY PROGRAM.
``(a) Definitions.--In this section:
``(1) Large-scale pilot project.--The term `large-scale pilot
project' means a pilot project that--
``(A) represents the scale of technology development
beyond laboratory development and bench scale testing,
but not yet advanced to the point of being tested under
real operational conditions at commercial scale;
``(B) represents 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 that technology at commercial
scale or in commercial-scale demonstration; and
``(C) is large enough--
``(i) to validate scaling factors; and
``(ii) to demonstrate the interaction between
major components so that control philosophies
for a new process can be developed and enable
the technology to advance from large-scale
pilot plant application to commercial-scale
demonstration or application.
``(2) Net-negative carbon dioxide emissions technology.--
The term `net-negative carbon dioxide emissions technology'
means technology--
``(A) for thermochemical co-conversion of coal and
biomass fuels that--
``(i) uses a carbon capture system; and
``(ii) with carbon dioxide removal, the
Secretary determines can provide electricity,
fuels, or chemicals with net-negative carbon
dioxide emissions from production and
consumption of the end products, while removing
atmospheric carbon dioxide; and
``(B) through which each use of coal will be combined
with the use of biomass energy, provided on a renewable
basis, that is sufficient in quantity to allow for net-
negative emissions of carbon dioxide (in combination
with a carbon capture system), while avoiding impacts
on food production activities.
``(3) Program.--The term `program' means the program
established under subsection (b)(1).
``(4) Transformational technology.--
``(A) In General.--The term `transformational
technology' means a power generation technology that
represents a significant change in the methods used to
convert energy that will enable a step change in
performance, efficiency, and cost of electricity as
compared to the technology in existence on the date of
enactment of the Enhancing Fossil Fuel Energy Carbon
Technology Act of 2019.
``(B) Inclusions.--The term `transformational
technology' includes a broad range of technology
improvements, including--
``(i) thermodynamic improvements in energy
conversion and heat transfer, including--
``(I) advanced combustion systems,
including oxygen combustion systems and
chemical looping; and
``(II) the replacement of steam
cycles with supercritical carbon
dioxide cycles;
``(ii) improvements in steam or carbon
dioxide turbine technology;
``(iii) improvements in carbon capture,
utilization, and storage systems technology;
``(iv) improvements in small-scale and modular coal-
fired technologies with reduced carbon output or carbon
capture that can support incremental power generation
capacity additions;
``(v) fuel cell technologies for low-cost,
high-efficiency modular power systems;
``(vi) advanced gasification systems;
``(vii) thermal cycling technologies; and
``(viii) any other technology the Secretary
recognizes as transformational technology.
``(b) Coal and Natural Gas Technology Program.--
``(1) In general.--The Secretary shall establish a coal and
natural gas technology program to ensure the continued use of
the abundant domestic coal and natural gas resources of the
United States through the development of transformational
technologies that will significantly improve the efficiency,
effectiveness, costs, and environmental performance of coal and
natural gas use.
``(2) Requirements.--The program shall include--
``(A) a research and development program;
``(B) large-scale pilot projects;
``(C) demonstration projects; and
``(D) a front-end engineering and design program.
``(3) Program goals and objectives.--In consultation with
the interested entities described in paragraph (5)(C), the
Secretary shall develop goals and objectives for the program to
be applied to the transformational technologies developed
within the program, taking into consideration the following:
``(A) Increasing the performance of coal and natural
gas plants, including by
``(i) ensuring reliable, low-cost power from
new and existing coal and natural gas plants;
``(ii) achieving high conversion
efficiencies;
``(iii) addressing emissions of carbon
dioxide through high-efficiency platforms;
``(iv) developing small-scale and modular
technologies to support incremental capacity
additions and load following generation, in
addition to large-scale generation
technologies;
``(v) supporting dispatchable operations for
new and existing applications of coal and
natural gas generation; and ``(vi) accelerating
the development of technologies that have
transformational energy conversion
characteristics.
``(B) Using carbon capture, utilization, and
sequestration technologies to decrease the carbon
dioxide emissions, and the environmental impact from
carbon dioxide emissions, from new and existing coal
and natural gas plants, including by--
``(i) accelerating the development,
deployment, and commercialization of
technologies to capture and sequester carbon
dioxide emissions from new and existing coal
and natural gas plants;
``(ii) supporting sites for safe geological
storage of large volumes of anthropogenic
sources of carbon dioxide and the development
of the infrastructure needed to support a
carbon dioxide utilization and storage
industry;
``(iii) improving the conversion,
utilization, and storage of carbon dioxide
produced from fossil fuels and other
anthropogenic sources of carbon dioxide;
``(iv) lowering greenhouse gas emissions for
all fossil fuel production, generation,
delivery, and use, to the maximum extent
practicable;
``(v) developing carbon utilization
technologies, products, and methods, including
carbon use and reuse for commercial
application; and
``(vi) developing net-negative carbon dioxide
emissions technologies.
``(C) Decreasing the non-carbon dioxide relevant
environmental impacts of coal and natural gas
production, including by--
``(i) further reducing non-carbon dioxide air
emissions; and
``(ii) reducing the use, and managing the
discharge, of water in power plant operations.
``(D) Accelerating the development of technologies to
capture carbon dioxide emissions from industrial
facilities, including
``(i) nontraditional fuel manufacturing
facilities, including ethanol or other biofuel
production plants or hydrogen production
plants; and
``(ii) energy-intensive manufacturing
facilities that produce carbon dioxide as a
byproduct of operations.
``(E) Examining methods of converting coal and
natural gas to other valuable products and commodities
in addition to electricity, including hydrogen.
``(4) Cross-cutting direction for carbon capture,
utilization, and sequestration activities.--The carbon capture,
utilization, and sequestration activities described in
paragraph (3)(B) shall be--
``(A) cross-cutting in nature; and
``(B) carried out by the Assistant Secretary for
Fossil Energy, in coordination with the heads of other
relevant offices of the Department, including the
Director of the Office of Science and the Assistant
Secretary for Energy Efficiency and Renewable Energy.
``(5) Consultations required.--In carrying out the program,
the Secretary shall--
``(A) undertake international collaborations, taking
into consideration the recommendations of the National
Coal Council;
``(B) use existing authorities to encourage
international cooperation; and
``(C) consult with interested entities, including--
``(i) coal and natural gas producers;
``(ii) industries that use coal and natural
gas;
``(iii) organizations that promote coal,
advanced coal, and natural gas technologies;
``(iv) environmental organizations;
``(v) organizations representing workers; and
``(vi) organizations representing consumers.
``(c) Report.
``(1) In general.--Not later than 18 months after the date of
enactment of the Enhancing Fossil Fuel Energy Carbon Technology
Act of 2019, the Secretary shall submit to Congress a report
describing the program goals and objectives adopted under
subsection (b)(3).
``(2) update.--Not less frequently than once every 2 years
after the initial report is submitted under paragraph (1), the
Secretary shall submit to Congress a report describing the
progress made towards achieving the program goals and
objectives adopted under subsection (b)(3).
``(d) Funding.
``(1) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary to carry
out this section, to remain available until expended--
``(A) for activities under the research and
development program component described in subsection
(b)(2)(A)--
``(i) $230,000,000 for each of fiscal years
2020 and 2021; and
``(ii) $150,000,000 for each of fiscal years
2022 through 2024;
``(B) subject to paragraph (2), for activities under
the large-scale pilot projects program component
described in subsection (b)(2)(B)--
``(i) $347,000,000 for each of fiscal years
2020 and 2021;
``(ii) $272,000,000 for each of fiscal years
2022 and 2023; and
``(iii) $250,000,000 for fiscal year 2024;
``(C) for activities under the demonstration projects
program component described in subsection (b)(2)(C)
``(i) $100,000,000 for each of fiscal years
2020 and 2021; and
``(ii) $500,000,000 for each of fiscal years
2022 through 2024; and
``(D) for activities under the front-end engineering
and design program described in subsection (b)(2)(D),
$50,000,000 for each of fiscal years 2020 through 2023.
``(2) Cost sharing for large-scale pilot projects.--
Activities under subsection (b)(2)(B) shall be subject to the
cost-sharing requirements of section 988(b).''.
(b) Technical Amendment.--The table of contents for the Energy
Policy Act of 2005 (Public Law 109-58; 119 Stat. 600) is amended by
striking the item relating to section 962 and inserting the following:
``Sec. 962. Coal and natural gas technology program.''.
SEC. 3. CARBON STORAGE VALIDATION AND TESTING.
(a) In General.--The Energy Policy Act of 2005 is amended by
striking section 963 (42 U.S. C. 16293) and inserting the following:
``SEC. 963. CARBON STORAGE VALIDATION AND TESTING.
``(a) Definitions.--In this section:
``(1) Electric generation unit.--The term `electric
generation unit' means an electric generation unit that--
``(A) uses coal- or natural gas-based generation
technology; and
``(B) is capable of capturing carbon dioxide
emissions from the unit.
``(2) Large-scale carbon sequestration.--The term `large-
scale carbon sequestration' means a scale that demonstrates the
ability to inject into geologic formations and sequester
several million metric tons of carbon dioxide for not less than
a 10-year period.
``(3) Program.--The term `program' means the program
established under subsection (b)(1).
``(b) Carbon Storage Program.--
``(1) In general.--The Secretary shall establish a
program of research, development, and demonstration for
carbon storage.
``(2) Program activities.--Activities under the
program shall include--
``(A) in coordination with relevant Federal agencies,
developing and maintaining mapping tools and resources
that assess the capacity of geologic storage formation
in the United States;
``(B) developing monitoring tools, modeling of
geologic formations, and analyses
``(i) to predict carbon dioxide containment;
and
``(ii) to account for sequestered carbon
dioxide in geologic storage sites;
``(C) researching--
``(i) potential environmental, safety, and
health impacts in the event of a leak into the
atmosphere or to an aquifer; and
``(ii) any corresponding mitigation actions
or responses to limit harmful consequences of
such a leak;
``(D) evaluating the interactions of carbon dioxide
with formation solids and fluids, including the
propensity of injections to induce seismic activity;
``(E) assessing and ensuring the safety of operations
relating to geologic sequestration of carbon dioxide;
``(F) determining the fate of carbon dioxide
concurrent with and following injection into geologic
formations; and
``(G) supporting cost and business model assessments
to examine the economic viability of technologies and
systems developed under the program.
``(3) Geologic settings.--In carrying out research activities
under this subsection, the Secretary shall consider a variety
of candidate onshore and offshore geologic settings,
including--
``(A) operating oil and gas fields;
``(B) depleted oil and gas fields;
``(C) residual oil zones;
``(D) unconventional reservoirs and rock types;
``(E) unmineable coal seams;
``(F) saline formations in both sedimentary and
basaltic geologies;
``(G) geologic systems that may be used as engineered
reservoirs to extract economical quantities of brine
from geothermal resources of low permeability or
porosity; and
``(H) geologic systems containing in situ carbon
dioxide mineralization formations.
``(c) Large-Scale Carbon Sequestration Demonstration Program.--
``(1) In general.--The Secretary shall establish a
demonstration program under which the Secretary shall provide
funding for demonstration projects to collect and validate
information on the cost and feasibility of commercial
deployment of large-scale carbon sequestration technologies.
``(2) Existing regional carbon sequestration partnerships.--
In carrying out paragraph (1), the Secretary may provide
additional funding to regional carbon sequestration
partnerships that are carrying out or have completed a large-
scale carbon sequestration demonstration project under this
section (as in effect on the day before the date of enactment
of the Enhancing Fossil Fuel Energy Carbon Technology Act of
2019) for additional work on that project.
``(3) Demonstration components.--Each demonstration project
carried out under this subsection shall include longitudinal
tests involving carbon dioxide injection and monitoring,
mitigation, and verification operations.
``(4) Clearinghouse.--The National Energy Technology
Laboratory shall act as a clearinghouse of shared information
and resources for--
``(A) existing or completed demonstration projects
receiving additional funding under paragraph (2); and
``(B) any new demonstration projects funded under
this subsection.
``(5) Report.--Not later than 1 year after the date of
enactment of the Enhancing Fossil Fuel Energy Carbon Technology
Act of 2019, the Secretary shall submit to the Committee on
Energy and Natural Resources of the Senate and the Committee on
Science, Space, and Technology of the House of Representatives
a report that--
``(A) assesses the progress of all regional carbon
sequestration partnerships carrying out a demonstration
project under this subsection;
``(B) identifies the remaining challenges in
achieving large-scale carbon sequestration that is
reliable and safe for the environment and public
health; and
``(C) creates a roadmap for carbon storage research
and development activities of the Department through
2025, with the goal of reducing economic and policy
barriers to commercial carbon sequestration.
``(d) Integrated Storage Program.
``(1) In general.--The Secretary may establish a program to
transition large-scale carbon sequestration demonstration
projects under subsection (c) into integrated commercial
storage complexes.
``(2) Goals and objectives.--The goals and objectives of the
program described in paragraph (1) shall be--
``(A) to identify geologic storage sites that are
able to accept large volumes of carbon dioxide
acceptable for commercial contracts;
``(B) to understand the technical and commercial
viability of carbon dioxide geologic storage sites; and
``(C) to carry out any other activities necessary to
transition the large-scale carbon sequestration
demonstration projects under subsection (c) into
integrated commercial storage complexes.
``(e) Cost Sharing.--Activities carried out under this section
shall be subject to the cost-sharing requirements of section 988.
``(f) Report on Carbon Dioxide Capture Contracting Authority.--
``(1) Report.--Not later than 180 days after the date of
enactment of the Enhancing Fossil Fuel Energy Carbon Technology
Act of 2019, the Secretary shall submit to the Committee on
Energy and Natural Resources of the Senate and the Committee on
Science, Space, and Technology of the House of Representatives
a report that--
``(A) describes the costs and benefits of entering
into long-term binding contracts on behalf of the
Federal Government with qualified parties to provide
support for capturing carbon dioxide from electricity
generated at an electric generation unit or carbon
dioxide captured from an electric generation unit and
sold to a purchaser for--
``(i) the recovery of crude oil; or
``(ii) other purposes for which a commercial
market exists;
``(B) contains an analysis of how the Department
would establish, implement, and maintain a contracting
program described in subparagraph (A); and
``(C) outlines options for how contracts may be
structured, and regulations that would be necessary, to
implement a contracting program described in
subparagraph (A).
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section--
``(1) $105,000,000 for fiscal year 2020;
``(2) $110,250,000 for fiscal year 2021;
``(3) $115,763,000 for fiscal year 2022;
``(4) $121,551,000 for fiscal year 2023; and
``(5) $127,628,000 for fiscal year 2024.''.
(b) Technical Amendment.--The table of contents for the Energy
Policy Act of 2005 (Public Law 109-58; 119 Stat. 600; 121 Stat. 1708)
is amended by striking the item relating to section 963 and inserting
the following:
``Sec.963.Carbon storage validation and testing.''.
SEC. 4. CARBON UTILIZATION PROGRAM.
(a) Carbon Utilization Program.--
(1) 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. CARBON UTILIZATION PROGRAM.
``(a) In General.--The Secretary shall establish a program of
research, development, and demonstration for carbon utilization--
``(1) to assess and monitor--
``(A) potential changes in lifecycle carbon dioxide
and other greenhouse gas emissions; and
``(B) other environmental safety indicators of new
technologies, practices, processes, or methods used in
enhanced hydrocarbon recovery as part of the activities
authorized under section 963;
``(2) to identify and assess novel uses for carbon, including
the conversion of carbon oxides for commercial and industrial
products, such as--
``(A) chemicals;
``(B) plastics;
``(C) building materials;
``(D) fuels;
``(E) cement;
``(F) products of coal use in power systems or other
applications; or
``(G) other products with demonstrated market value;
``(3) to identify and assess carbon capture technologies for
industrial systems; and
``(4) to identify and assess alternative uses for coal,
including products derived from carbon engineering, carbon
fiber, and coal conversion methods.
``(b) Authorization of Appropriations.--There are authorized to be
appropriated to the
Secretary to carry out 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.''.
(2) Technical amendment.--The table of contents for the
Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 600) is
amended by adding at the end of the items relating to subtitle
F of title IX the following:
``Sec. 969. Carbon utilization program.''.
(b) Study.
(1) In general.--The Secretary of Energy shall enter into an
agreement with the National Academies of Sciences, Engineering,
and Medicine under which the National Academies of Sciences,
Engineering, and Medicine shall conduct a study to assess any
barriers and opportunities relating to commercializing carbon
dioxide in the United States.
(2) Requirements.--The study under paragraph (1) shall--
(A) analyze challenges to commercializing carbon
dioxide, including--
(i) expanding carbon dioxide pipeline
capacity;
(ii) mitigating environmental impacts;
(iii) access to capital;
(iv) geographic barriers; and
(v) regional economic challenges and
opportunities;
(B) identify potential markets, industries, or
sectors that may benefit from greater access to
commercial carbon dioxide;
(C) assess--
(i) the state of infrastructure as of the
date of the study; and
(ii) any necessary updates to infrastructure
to allow for the integration of safe and
reliable carbon dioxide transportation, use,
and storage;
(D) describe the economic, climate, and environmental
impacts of any well-integrated national carbon dioxide
pipeline system, including suggestions for policies
that could--
(i) improve the economic impact of the
system; and
(ii) mitigate impacts of the system;
(E) assess the global status and progress of chemical
and biological carbon utilization technologies in
practice as of the date of the study that utilize
anthropogenic carbon, including carbon dioxide, carbon
monoxide, methane, and biogas, from power generation,
biofuels production, and other industrial processes;
(F) identify emerging technologies and approaches for
carbon utilization that show promise for scale-up,
demonstration, deployment, and commercialization;
(G) 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;
(H)(i) assess the major technical challenges
associated with increasing the commercial viability of
carbon reuse technologies; and
(ii) identify the research and development questions
that will address the challenges described in clause
(i);
(I)(i) assess research efforts being carried out as
of the date of the study, including basic, applied,
engineering, and computational research efforts, that
are addressing the challenges described in subparagraph
(H)(i); and
(ii) identify gaps in the research efforts under
clause (i);
(J) develop a comprehensive research agenda that
addresses long- and short-term research needs and
opportunities; and
(K)(i) identify appropriate Federal agencies with
capabilities to support small business entities; and
(ii) determine what assistance the Federal agencies
identified under clause (i) could provide to small
business entities to further the development and
commercial deployment of carbon dioxide-based products.
(3) Deadline.--Not later than 180 days after the date of
enactment of this Act, the National Academies of Sciences,
Engineering, and Medicine shall submit to the Secretary of
Energy a report describing the results of the study under
paragraph (1).
SEC. 5. CARBON REMOVAL.
(a) In General.--Subtitle F of title IX of the Energy Policy Act of
2005 (42 U.S.C. 16291 et seq.) (as amended by section 4(a)(1)) is
amended by adding at the end the following:
``SEC. 969A. CARBON REMOVAL.
``(a) Establishment.--The Secretary, in coordination with the heads
of appropriate Federal agencies, including the Secretary of
Agriculture, shall establish a research, development, and demonstration
program (referred to in this section as the `program') to tesf,
validate, or improve technologies and strategies to remove carbon
dioxide from the atmosphere on a large scale.
``(b) Cross-Cutting Direction.--The Secretary shall ensure that the
program--
``(1) is cross-cutting in nature; and
``(2) includes the coordinated participation of the Office of
Fossil Energy, the Office of Science, and the Office of Energy
Efficiency and Renewable Energy.
``(c) Program Activities.--The program may include research,
development, and demonstration activities relating to--
``(1) direct air capture and storage technologies;
``(2) bioenergy with carbon capture and sequestration;
``(3) enhanced geological weathering;
``(4) agricultural and grazing practices;
``(5) forest management and afforestation; and
``(6) planned or managed carbon sinks, including natural and
artificial.
``(d) Requirements.--In developing and identifying carbon removal
technologies and strategies under the program, the Secretary shall
consider--
``(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; and
``(7) economic cobenefits.
``(e) Air Capture Technology Prize Competition.--
``(1) Definitions.--In this subsection:
``(A) Dilute media.--The term `dilute media' means
media in which the concentration of carbon dioxide is
less than 1 percent by volume.
``(B) Prize competition.--The term `prize
competition' means the competitive technology prize
competition established under paragraph (2).
``(2) Establishment.--Not later than 1 year after the date of
enactment of the Enhancing Fossil Fuel Energy Carbon Technology
Act of 2019, the Secretary, in consultation with the
Administrator of the Environmental Protection Agency, shall
establish as part of the program a competitive technology prize
competition to award prizes for carbon dioxide capture from
dilute media.
``(3) Requirements.--In carrying out this subsection, the
Secretary, in accordance with section 24 of the Stevenson-
Wydler Technology Innovation Act of 1980 (15 U.S.C. 3719),
shall develop requirements for--
``(A) the prize competition process; and
``(B) monitoring and verification procedures for
projects selected to receive a prize under the prize
competition.
``(4) Eligible projects.--To be eligible to be awarded a
prize under the prize competition, a project shall--
``(A) meet minimum performance standards set by the
Secretary;
``(B) meet minimum levels set by the Secretary for
the capture of carbon dioxide from dilute media; and
``(C) demonstrate in the application of the project
for a prize--
``(i) a design for a promising carbon 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;
``(ii) a successful bench-scale demonstration
of a carbon capture technology; or
``(iii) an operational carbon 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 Enhancing Fossil Fuel Energy Carbon Technology
Act of 2019, the Secretary shall award grants to 1 or more
entities for the operation of 1 or more test centers (referred
to in this subsection as a `Center') 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 direct air capture and
storage 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) Selection.--
``(A) In general.--The Secretary shall select
entities to receive grants under this subsection
according to such criteria as the Secretary may
develop.
``(B) Competitive basis.--The Secretary shall select
entities to receive grants under this subsection on a
competitive basis.
``(C) Priority criteria.--In selecting entities to
receive grants under this subsection, the Secretary
shall prioritize applicants that
``(i) have access to existing or planned
research facilities for direct air capture and
storage technologies;
``(ii) are institutions of higher education
with established expertise in engineering for
direct air capture and storage technologies, or
partnerships with such institutions of higher
education; or
``(iii) have access to existing research and
test facilities for bulk materials design and
testing, component design and testing, or
professional engineering design.
``(4) Formula for awarding grants.--The Secretary may develop
a formula for awarding grants under this subsection.
``(5) Schedule.--
``(A) In general.--Each grant awarded under this
subsection shall be for a term of not more than 5
years, subject to the availability of appropriations.
``(B) Renewal.--The Secretary may renew a grant for 1
or more additional 5-year terms, subject to a
competitive merit review and the availability of
appropriations.
``(6) Termination.--To the extent otherwise authorized by
law, the Secretary may eliminate, and terminate grant funding
under this subsection for, a Center during any 5-year term
described in paragraph (5) if the Secretary determines that the
Center is underperforming.
``(g) Large-Scale Pilots and Demonstration.--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) Intraagency Coordination.--The direct air capture activities
carried out under subsections (c)(1) and (e) shall be carried out in
coordination with, and leveraging lessons learned from, the coal and
natural gas technology program established under section 962(b)(1).
``(i) Accounting.--The Secretary shall collaborate with the
Administrator of the Environmental Protection Agency and the heads of
other relevant Federal agencies to develop and improve accounting
frameworks and tools to accurately measure carbon removal and
sequestration methods and technologies across the Federal Government.
``(j) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section--
``(1) $75,000,000 for fiscal year 2020, of which $15,000,000
shall be used to carry out subsection (e);
``(2) $63,500,000 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.''.
(b) Technical Amendment.--The table of contents for the Energy
Policy Act of 2005 (Public Law 109-58; 119 Stat. 600) (as amended by
section 4(a)(2)) is amended by adding at the end of the items relating
to subtitle F of title IX the following:
``Sec. 969A. Carbon removal.''.
SEC. 6. FOSSIL ENERGY.
Section 961(a) of the Energy Policy Act of 2005 (42 U.S.C.
16291(a)) is amended--
(1) in paragraph (6), by inserting ``, including technology
development to reduce emissions of carbon dioxide and
associated emissions of heavy metals within coal combustion
residues and gas streams resulting from fossil fuel use and
production'' before the period at the end; and
(2) by striking paragraph (7) and inserting the following:
``(7) Increasing the export of fossil energy-related
equipment, technology, including emissions control
technologies, and services from the United States.
``(8) 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.
``(9) Improving the conversion, use, and storage of carbon
dioxide produced from fossil fuels.''.
Purpose
The purpose of S. 1201 is to amend the fossil energy
research and development provisions of the Energy Policy Act of
2005 (EPAct 2005, Public Law 109-58) to enhance fossil fuel
technology.
Background and Need
According to a 2019 report by the International Energy
Agency, deployment of innovative clean energy technologies is
essential to offset the increased greenhouse gas emissions
resulting from increased global energy demand. These
technologies include carbon capture, utilization, and
sequestration (CCUS), a process by which manmade carbon dioxide
is captured at its source and is either stored permanently in a
geological formation or reused to prevent its release into the
atmosphere.
Many facilities across the globe demonstrate the technical
and commercial viability of CCUS technologies. In total, there
are 18 large-scale CCUS facilities in commercial operation,
which are collectively capturing 40 metric tons of carbon
dioxide per year, with many more in development. One facility
in operation, NRG Energy's 240 megawatt Petra Nova--W.A. Parish
Generating Station located near Houston, utilizes post-
combustion CCUS technology to capture, condition, and transport
emitted flue gas down an 82-mile pipeline to an oil field for
enhanced oil recovery. Petra Nova cost a total of approximately
$1 billion, $190 million of which came from the Department of
Energy (DOE). The facility began operations in January 2017,
and within the first 10 months captured more than one million
tons of carbon dioxide.
DOE has long supported research, development,
demonstration, and deployment of CCUS technologies within the
Office of Fossil Energy. DOE's CCUS research and development
(R&D) program was originally authorized in EPAct 2005.
Specifically, section 962 of EPAct 2005 authorizes a coal and
related technologies program, which includes R&D of coal and
power systems that utilize CCUS, gasification systems, and
other innovative technologies. Section 963 of EPAct 2005
authorizes a 10-year R&D program to capture and store carbon
dioxide from new and existing coal-fired power plants.
In order to increase deployment and commercialization of
emissions-reducing CCUS technologies, S. 1201, the Enhancing
Fossil Fuel Energy Carbon Technology Act of 2019 (EFFECT Act)
expands and modernizes DOE's CCUS R&D programs. Specifically,
the EFFECT Act replaces section 962 of EPAct 2005 with a broad
coal and natural gas technology research, development,
demonstration, and commercialization program to improve the
efficiency, effectiveness, costs, and environmental performance
of coal and natural gas use. It also replaces section 963 of
EPAct with a carbon storage validation and testing program to
develop commercial storage sites for captured carbon dioxide.
It also adds a new section 969 to EPAct 2005 to authorize a
carbon utilization program to identify and assess novel uses
for carbon, and a new section 969A to develop technologies to
remove carbon dioxide directly from the atmosphere on a large
scale.
Section 402(i) of EPAct 2005 states that no technology or
emissions reduction achieved by any facility receiving
financial assistance under sections 962 and 963, as well as any
other section of EPAct 2005, shall be considered adequately
demonstrated for purposes of section 111 of the Clean Air Act
(CAA) (Public Law 95-95); achievable for purposes of section
169 of the CAA; or achievable in practice for purposes of
section 171 of the CAA. Because the EFFECT Act amends EPAct
2005, section 402(i) of EPAct 2005 applies to all technologies
or emissions reductions that are achieved by any facility
receiving assistance under the EFFECT Act.
Legislative History
S. 1201 was introduced by Senators Manchin, Murkowski,
Capito, Cramer, and Daines on April 11, 2019. Senators Jones,
Alexander, Hoeven, and Coons were added as cosponsors. The
Committee on Energy and Natural Resources held a legislative
hearing on S. 1201 on May 16, 2019.
Similar legislation, H.R. 3607, was introduced by
Representative Veasey in the House of Representatives on July
10, 2019, and referred to the Science, Space, and Technology
Committee.
The Senate Committee on Energy and Natural Resources met in
open business session on July 16, 2019, and ordered S. 1201
favorably reported, as amended.
Committee Recommendation and Tabulation of Votes
The Senate Committee on Energy and Natural Resources, in
open business session on July 16, 2019, by a majority vote of a
quorum present, recommends that the Senate pass S. 1201, if
amended as described herein.
The roll call vote on reporting the measure was 18 yeas, 2
nays as follows:
YEAS NAYS
Ms. Murkowski Mr. Lee
Mr. Barrasso Mr. Sanders*
Mr. Risch
Mr. Daines
Mr. Cassidy
Mr. Gardner
Mrs. Hyde-Smith*
Ms. McSally
Mr. Alexander*
Mr. Hoeven
Mr. Manchin
Mr. Wyden*
Ms. Cantwell
Ms. Stabenow
Mr. Heinrich
Ms. Hirono*
Mr. King
Ms. Cortez Masto
*Indicates vote by proxy.
Committee Amendment
During its consideration of S. 1201, the Committee adopted
an amendment in the nature of a substitute. The substitute
amendment clarifies that the focus of the coal and natural gas
technology program under section 2(a) should focus on
``transformational technologies'' (as defined by the bill), and
that the goals and objectives of the program should include
deployment and commercialization of carbon capture and
sequestration technologies as well as their development. It
also adds hydrogen production to the carbon utilization
technologies that the Secretary should consider in developing
the program's goals and objectives.
The substitute amendment also clarifies that the Secretary
shall consider both offshore and onshore geologic settings in
carrying out the carbon storage validation and testing program
established under section 3, and it adds a requirement that the
study of barriers and opportunities to commercializing carbon
dioxide utilization required under section 4 identify the
assistance that Federal agencies could provide to small
business to further development and commercial deployment of
carbon dioxide-based products.
The substitute amendment adds a new provision to require
the Secretary of Energy to award grants to create one or more
test centers for research, development, demonstration and
commercial application of direct air capture technologies,
encourages the Secretary to carry out pilot projects for direct
air capture systems, and increases the authorization levels for
the carbon removal program established pursuant to section 5.
Finally, in section 6, the substitute clarifies that one of the
objectives of DOE's fossil energy R&D program is to increase
exports of emissions control technologies.
Section-by-Section Analysis
Section 1. Short title
Section 1 sets forth the short title.
Sec. 2. Establishment of coal and natural gas technology programs
Section 2 strikes section 962 of EPAct 2005 and adds a new
section 962 which directs the Secretary to establish a coal and
natural gas technology program to significantly improve the
efficiency, effectiveness, costs, and environmental performance
of coal and natural gas use. The program includes subprograms
for R&D, large-scale pilot projects, demonstration projects,
and front-end engineering and design. The program seeks to
improve the performance of coal and natural gas-fired power
plants and develop technologies to reduce carbon dioxide
emissions and other environmental impacts from such plants and
industrial facilities. The section is authorized at $727
million in fiscal year (FY) 2020, and $4.3 billion total
through FY 2024.
Sec. 3. Carbon storage validation and testing
This section strikes section 963 of EPAct 2005 and adds a
new section 963 which directs the Secretary to establish a
research, development, and demonstration carbon storage
program, a large-scale carbon sequestration demonstration
program, and an integrated storage program. The carbon storage
program assesses geologic storage capacity in the United
States, develops tools to monitor carbon dioxide containment,
and supports business model assessments to examine the economic
viability of technologies and systems developed under the
program. The large-scale carbon sequestration demonstration
program provides funding for demonstration projects on the cost
and feasibility of commercial deployment of large-scale carbon
sequestration technologies. The integrated storage program
transitions a large-scale demonstration project into an
integrated commercial storage complex. This section is
authorized at $105 million in FY 2020, and about $580 million
total through FY 2024.
Sec. 4. Carbon utilization program
This section adds a new section 969 to EPAct 2005 which
directs the Secretary to establish a program of research,
development, and demonstration for carbon utilization. The
purposes of the program are to identify and assess novel uses
for carbon, carbon capture technologies for industrial systems,
and alternative uses for coal. The program is authorized at $25
million in FY 2020, and about $138 million total through FY
2024. This section also directs DOE to work with the National
Academies of Science, Engineering, and Medicine on a study to
assess barriers and opportunities related to commercializing
carbon dioxide.
Sec. 5. Carbon removal
This section adds a new section 969A to EPAct 2005 to
establish a program to develop technologies to remove carbon
dioxide from the atmosphere on a large scale. The program
includes research, development, and demonstration of direct air
capture and storage technologies, bioenergy with carbon capture
and sequestration, enhanced geological weathering, agricultural
and grazing practices, forest management, and carbon sinks. The
program also establishes an air capture technology prize
competition, a direct air capture test center, and a direct air
capture pilot program. This section is authorized at $75
million in FY 2020, and about $347 million total through FY
2024.
Sec. 6. Fossil energy
This section amends section 961(a) of EPAct 2005 to include
the purposes of the EFFECT Act in DOE's fossil energy R&D
authorization.
Cost and Budgetary Considerations
The Congressional Budget Office estimate of the costs of
this measure has been requested but was not received at the
time the report was filed. When the Congressional Budget Office
completes its cost estimate, it will be posted on the internet
at www.cbo.gov.
Regulatory Impact Evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. 1201. The bill is not a regulatory measure in
the sense of imposing Government-established standards or
significant economic responsibilities on private individuals
and businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of S. 1201, as ordered reported.
Congressionally Directed Spending
S. 1201, as ordered reported, does not contain any
congressionally directed spending items, limited tax benefits,
or limited tariff benefits as defined in rule XLIV of the
Standing Rules of the Senate.
Executive Communications
The testimony provided by the Department of Energy at the
May 16, 2019, hearing on S. 1201 follows:
Testimony of Steven E. Winberg, Assistant Secretary for Fossil Energy,
U.S. Department of Energy
Thank you, Chairman Murkowski, Ranking Member Manchin, and
Members of the Committee. I appreciate the opportunity to be
here today, and it is my pleasure to appear before you to
discuss how the Department of Energy (DOE) is advancing an
important part of DOE's Fossil Energy (FE) research and
development (R&D) portfolio--the commercial deployment of
carbon capture, utilization, and storage (CCUS) technologies.
With the Committee's ongoing support, we are backing up our
commitment to CCUS with the R&D necessary to advance these
technologies, improve our environmental footprint, and advance
U.S. world leadership in this critical area.
With respect to S. 1201, the Enhancing Fossil Fuel Energy
Carbon Technology Act of 2019, the Administration is currently
reviewing this legislation and no position has been taken on
this bill. S. 1201 directs the Department of Energy to support
four programs focused on fossil energy R&D and carbon capture,
utilization, and storage:
A Coal and Natural Gas Technology Program to
support large-scale pilot projects, demonstration
projects, and the ``development of technologies to
improve the efficiency, effectiveness, costs, and
environmental performance of coal and natural gas
use.''
A Carbon Storage Validation and Testing
Program to conduct research, development, and
demonstration projects for carbon storage and establish
a large-scale carbon sequestration demonstration
program, with the possibility of transitioning to an
integrated commercial storage complex.
A Carbon Utilization Program to identify and
assess novel uses for carbon, carbon capture
technologies for industrial systems, and alternative
uses for coal.
A Carbon Removal Program for technologies
and strategies to remove atmospheric carbon dioxide on
a large scale.
As always, the Administration is ready to provide technical
assistance as needed on this legislation moving forward.
All informed experts agree, commercializing and deploying
CCUS technologies is a realistic path to reducing CO2 emissions
on a large scale. An integral piece to ``jumpstart'' this
deployment is financial incentives, such as section 45Q of the
Internal Revenue Service code, which provides a tax credit on a
per-ton (metric) basis for storing or utilizing captured CO2.
DOE is currently working with the Internal Revenue Service, the
Department of the Treasury, the Department of the Interior, and
the Environmental Protection Agency to resolve uncertainties
regarding implementation.
FE's robust CCUS R&D program has produced some impressive
successes, but technical hurdles to commercializing these
technologies remain. The most significant hurdle is the cost
associated with carbon capture, which needs to be reduced by
about 50 percent to $30 a metric ton by 2030 to be competitive
with alternative energy sources. That is a challenging goal,
and we have made great progress by exploring early-stage R&D on
advanced technologies that have the potential to reach our cost
reduction goals.
Over the last four decades, DOE has demonstrated a proven
track record in significantly reducing emissions from fossil
fuel combustion, resulting in a cleaner environment for all
Americans. The technologies developed through this R&D program
are not only applicable to coal and natural gas-fired power
plants, but can also be used with industrial sources such as
refineries and steel, cement, chemical and ethanol plants.
These technologies can be used to capture CO2 directly from the
atmosphere.
Funding provided by Congress through FE has resulted in
commercial operation of the world's three largest CCUS
demonstration projects in their respective industrial sectors
(Petra Nova, Air Products, and Archer Daniels Midland). In
total, these projects have captured, utilized, and stored
almost 9 million metric tons of CO2.
Petra Nova: Retrofitted onto the existing
W.A. Parish coal-fired unit 8, the 240-megawatt Petra
Nova project near Houston, Texas, captures
approximately 90 percent of the CO2 from the unit's
flue stream and permanently stores about 1.4 million
metric tons of CO2 per year for EOR in a depleted oil
field approximately 80 miles away. As of March 2019,
Petra Nova has captured and sent for storage over 2.4
million metric tons of CO2, and West Ranch Oil Field
has produced over 2.8 million barrels of oil through
EOR.
Air Products: The Air Products and Chemicals
project at a petroleum refining facility in Port
Arthur, Texas, captures over 90 percent of the CO2
produced from the two steam methane reformers for
hydrogen production. Air Products has successfully
captured and stored over 5 million metric tons of CO2
for EOR.
Archer Daniels Midland: The Archer Daniels
Midland Company project near Decatur, Illinois,
demonstrates an integrated system for capturing CO2
from an ethanol production plant and geologically
sequestering it in the Mount Simon Sandstone
formation--one of the largest saline reservoirs in the
world for CO2 storage. As of April 2019, 1.2 million
metric tons of CO2 have been injected into the Mount
Simon Sandstone.
DOE's FY 2020 budget represents a purposeful shift away
from later-stage R&D such as development and scale-up of 2nd
generation capture technologies to prioritize early-stage
research and development to reflect the proper role of the
Federal Government. Industry is better positioned to make
decisions on what technologies can be commercialized and how to
develop and scale these technologies for cost-competitive
deployment.
One important element of FE's R&D effort is Direct Air
Capture (DAC). FE was one of the cofunders of the recent
National Academy of Sciences (NAS) report on developing a
research agenda for negative emissions technologies, which
included DAC. The focus of DAC R&D is on improving capture
efficiency, reducing energy and capital costs (current cost
estimates range between $200-$800/ton CO2), and decreasing
water resource demands. FE is conducting technoeconomic
analyses to establish a cost baseline for DAC technologies, and
is funding exploratory research studies in this area. FE
currently has three DAC R&D projects with:
1. Ohio State University--``Novel Carbon Dioxide (CO2)--
Selective Membranes for CO2 Capture from less than 1% CO2
Sources'';
2. Carbon Engineering, Ltd.--``Dilute Source Carbon Dioxide
(CO2) Capture: Management of Atmospheric Coal-Produced Legacy
Emissions''; and
3. InnoSepra, LLC--``Process for CO2 Capture from Low
Concentration Sources.''
DAC technologies (e.g., advanced sorbents, membranes, and
solvents) are built upon FE's R&D and are adapted to address
issues specific to DAC, such as accelerating reaction kinetics.
Existing resources in the FE program can be leveraged to
develop new materials and design processes specific to DAC,
optimize DAC performance using advanced supercomputers, and
validate laboratory R&D through pilot-scale testing. FE takes a
holistic approach to DAC specific R&D by developing the
technologies, system(s), logistics, and cost reductions to make
DAC implementation a reality. Further, FE recognizes the
important role that stakeholders play in this area and is
planning a workshop later this year to strengthen that
engagement. Low concentrations of CO2 associated with DAC
create unique challenges, but FE's 19-plus years of CO2 capture
expertise will help commercialize DAC.
In addition to DAC R&D, FE is also investigating ways to
extract an economic benefit, or additional value, from the
captured CO2 through the development of products and services.
For example, FE is working on CO2 utilization as a feedstock
for commonly used chemicals such as methanol, synthetic fuels,
and baking soda, as well as advanced materials like improved
concrete and carbon fiber. While EOR is the most near-term
application of CO2, the development of these advanced materials
offers opportunities to monetize the captured CO2 and drive
domestic innovation.
In the area of Carbon Storage, DOE's goal is to better see
the subsurface to improve site selection for geologic storage
of CO2; improve CO2 storage and utilization efficiency for
enhanced oil recovery; and increase the certainty of secure
containment and environmental protection. Previous investments
in an initiative called the Regional Carbon Sequestration
Partnerships identified CO2 sources and sinks on a regional
basis throughout the country and conducted large-scale
injection projects. This resulted in over 10 million metric
tons of CO2 stored. The work from this effort has been captured
in Best Practice Manuals to disseminate that knowledge to
industry partners.
Since 2016 DOE has invested over $70 million in the
CarbonSAFE initiative, which builds on findings from pilot and
field demonstration projects to advance site selection and
storage operations at commercial-scale. There are currently six
active CarbonSAFE projects regionally distributed throughout
the US to determine the feasibility for commercial-scale
storage complexes that can store greater than 50 million metric
tons of CO2.
We appreciate the Committee's interest, support, and
commitment to providing DOE with the tools necessary to advance
CCUS technologies, and I look forward to answering any
questions you may have.
Thank you.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the changes in existing law made
by S. 1201, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
ENERGY POLICY ACT OF 2005
Public Law 109-58, as Amended
* * * * * * *
SECTION 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. 962. Coal and natural gas technology program.
[Sec. 963. Carbon capture research and development program.]
Sec. 963. Carbon storage validation and testing.
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. Carbon utilization program
Sec. 969A. Carbon removal
* * * * * * *
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 part, 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.
(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, including technology development to
reduce emissions of carbon dioxide and associated
emissions of heavy metals within coal combustion
residues and gas streams resulting from fossil fuel use
and production.
[(7) Increasing the export of fossil energy-related
equipment, technology, and services from the United
States.]
(7) Increasing the export of fossil energy-related
equipment, technology, including emissions control
technologies, and services from the United States.
(8) 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.
(9) Improving the conversion, use, and storage of
carbon dioxide produced from fossil fuels.
* * * * * * *
[SEC. 962. COAL AND RELATED TECHNOLOGIES PROGRAM
[(a) In General.--In addition to the programs authorized
under subchapter 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 August 8, 2005, 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 August 8,
2005, publish in the Federal Register proposed
draft cost and performance goals for public
comments; and
[(D) not later than 180 days after August 8,
2005, 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 subchapter 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. 962. COAL AND NATURAL GAS TECHNOLOGY PROGRAM.
(a) Definitions.--In this section:
(1) Large-scale pilot project.--The term `large-scale
pilot project' means a pilot project that--
(A) represents the scale of technology
development beyond laboratory development and
bench scale testing, but not yet advanced to
the point of being tested under real
operational conditions at commercial scale;
(B) represents 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 that technology at commercial scale or in
commercial-scale demonstration; and
(C) is large enough--
(i) to validate scaling factors; and
(ii) to demonstrate the interaction
between major components so that
control philosophies for a new process
can be developed and enable the
technology to advance from large-scale
pilot plant application to commercial-
scale demonstration or application.
(2) Net-negative carbon dioxide emissions
technology.--The term `net-negative carbon dioxide
emissions technology' means technology--
(A) for thermochemical co-conversion of coal
and biomass fuels that--
(i) uses a carbon capture system; and
(ii) with carbon dioxide removal, the
Secretary determines can provide
electricity, fuels, or chemicals with
net-negative carbon dioxide emissions
from production and consumption of the
end products, while removing
atmospheric carbon dioxide; and
(B) through which each use of coal will be
combined with the use of biomass energy,
provided on a renewable basis, that is
sufficient in quantity to allow for net-
negative emissions of carbon dioxide (in
combination with a carbon capture system),
while avoiding impacts on food production
activities.
(3) Program.--The term `program' means the program
established under subsection (b)(1).
(4) Transformational technology.--
(A) In general.--The term `transformational
technology' means a power generation technology
that represents a significant change in the
methods used to convert energy that will enable
a step change in performance, efficiency, and
cost of electricity as compared to the
technology in existence on the date of
enactment of the Enhancing Fossil Fuel Energy
Carbon Technology Act of 2019.
(B) Inclusions.--The term `transformational
technology' includes a broad range of
technology improvements, including--
(i) thermodynamic improvements in
energy conversion and heat transfer,
including--
(I) advanced combustion
systems, including oxygen
combustion systems and chemical
looping; and
(II) the replacement of steam
cycles with supercritical
carbon dioxide cycles;
(ii) improvements in steam or carbon
dioxide turbine technology;
(iii) improvements in carbon capture,
utilization, and storage systems
technology;
(iv) improvements in small-scale and
modular coal-fired technologies with
reduced carbon output or carbon capture
that can support incremental power
generation capacity additions;
(v) fuel cell technologies for low-
cost, high-efficiency modular power
systems;
(vi) advanced gasification systems;
(vii) thermal cycling technologies;
and
(viii) any other technology the
Secretary recognizes as
transformational technology.
(b) Coal and Natural Gas Technology Program.--
(1) In general.--The Secretary shall establish a coal
and natural gas technology program to ensure the
continued use of the abundant domestic coal and natural
gas resources of the United States through the
development of transformational technologies that will
significantly improve the efficiency, effectiveness,
costs, and environmental performance of coal and
natural gas use.
(2) Requirements.--The program shall include--
(A) a research and development program;
(B) large-scale pilot projects;
(C) demonstration projects; and
(D) a front-end engineering and design
program.
(3) Program goals and objectives.--In consultation
with the interested entities described in paragraph
(5)(C), the Secretary shall develop goals and
objectives for the program to be applied to the
transformational technologies developed within the
program, taking into consideration the following:
(A) Increasing the performance of coal and
natural gas plants, including by--
(i) ensuring reliable, low-cost power
from new and existing coal and natural
gas plants;
(ii) achieving high conversion
efficiencies;
(iii) addressing emissions of carbon
dioxide through high-efficiency
platforms;
(iv) developing small-scale and
modular technologies to support
incremental capacity additions and load
following generation, in addition to
large-scale generation technologies;
(v) supporting dispatchable
operations for new and existing
applications of coal and natural gas
generation; and
(vi) accelerating the development of
technologies that have transformational
energy conversion characteristics.
(B) Using carbon capture, utilization, and
sequestration technologies to decrease the
carbon dioxide emissions, and the environmental
impact from carbon dioxide emissions, from new
and existing coal and natural gas plants,
including by--
(i) accelerating the development,
deployment, and commercialization of
technologies to capture and sequester
carbon dioxide emissions from new and
existing coal and natural gas plants;
(ii) supporting sites for safe
geological storage of large volumes of
anthropogenic sources of carbon dioxide
and the development of the
infrastructure needed to support a
carbon dioxide utilization and storage
industry;
(iii) improving the conversion,
utilization, and storage of carbon
dioxide produced from fossil fuels and
other anthropogenic sources of carbon
dioxide;
(iv) lowering greenhouse gas
emissions for all fossil fuel
production, generation, delivery, and
use, to the maximum extent practicable;
(v) developing carbon utilization
technologies, products, and methods,
including carbon use and reuse for
commercial application; and
(vi) developing net-negative carbon
dioxide emissions technologies.
(C) Decreasing the non-carbon dioxide
relevant environmental impacts of coal and
natural gas production, including by--
(i) further reducing non-carbon
dioxide air emissions; and
(ii) reducing the use, and managing
the discharge, of water in power plant
operations.
(D) Accelerating the development of
technologies to capture carbon dioxide
emissions from industrial facilities,
including--
(i) nontraditional fuel manufacturing
facilities, including ethanol or other
biofuel production plants or hydrogen
production plants; and
(ii) energy-intensive manufacturing
facilities that produce carbon dioxide
as a byproduct of operations.
(E) Examining methods of converting coal and
natural gas to other valuable products and
commodities in addition to electricity,
including hydrogen.
(4) Cross-cutting direction for carbon capture,
utilization, and sequestration activities.--The carbon
capture, utilization, and sequestration activities
described in paragraph (3)(B) shall be--
(A) cross-cutting in nature; and
(B) carried out by the Assistant Secretary
for Fossil Energy, in coordination with the
heads of other relevant offices of the
Department, including the Director of the
Office of Science and the Assistant Secretary
for Energy Efficiency and Renewable Energy.
(5) Consultations required.--In carrying out the
program, the Secretary shall--
(A) undertake international collaborations,
taking into consideration the recommendations
of the National Coal Council;
(B) use existing authorities to encourage
international cooperation; and
(C) consult with interested entities,
including--
(i) coal and natural gas producers;
(ii) industries that use coal and
natural gas;
(iii) organizations that promote
coal, advanced coal, and natural gas
technologies;
(iv) environmental organizations;
(v) organizations representing
workers; and
(vi) organizations representing
consumers.
(c) Report.--
(1) In general.--Not later than 18 months after the
date of enactment of the Enhancing Fossil Fuel Energy
Carbon Technology Act of 2019, the Secretary shall
submit to Congress a report describing the program
goals and objectives adopted under subsection (b)(3).
(2) Update.--Not less frequently than once every 2
years after the initial report is submitted under
paragraph (1), the Secretary shall submit to Congress a
report describing the progress made towards achieving
the program goals and objectives adopted under
subsection (b)(3).
(d) Funding.--
(1) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary to carry
out this section, to remain available until expended--
(A) for activities under the research and
development program component described in
subsection (b)(2)(A)--
(i) $230,000,000 for each of fiscal
years 2020 and 2021; and
(ii) $150,000,000 for each of fiscal
years 2022 through 2024;
(B) subject to paragraph (2), for activities
under the large-scale pilot projects program
component described in subsection (b)(2)(B)--
(i) $347,000,000 for each of fiscal
years 2020 and 2021;
(ii) $272,000,000 for each of fiscal
years 2022 and 2023; and
(iii) $250,000,000 for fiscal year
2024;
(C) for activities under the demonstration
projects program component described in
subsection (b)(2)(C)--
(i) $100,000,000 for each of fiscal
years 2020 and 2021; and
(ii) $500,000,000 for each of fiscal
years 2022 through 2024; and
(D) for activities under the front-end
engineering and design program described in
subsection (b)(2)(D), $50,000,000 for each of
fiscal years 2020 through 2023.
(2) Cost sharing for large-scale pilot projects.--
Activities under subsection (b)(2)(B) shall be subject
to the cost-sharing requirements of section 988(b).
[SEC. 963. CARBON CAPTURE RESEARCH AND DEVELOPMENT 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
August 8, 2005.
[(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 December 19, 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
16353 of this title, 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, 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.
[(5) Cost sharing.--Activities under this subsection
shall be considered research and development activities
that are subject to the cost sharing requirements of
section 16352(b) of this title.
[(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. 963. CARBON STORAGE VALIDATION AND TESTING.
(a) Definitions.--In this section:
(1) Electric generation unit.--The term ``electric
generation unit'' means an electric generation unit
that--
(A) uses coal- or natural gas-based
generation technology; and
(B) is capable of capturing carbon dioxide
emissions from the unit.
(2) Large-scale carbon sequestration.--The term
``large-scale carbon sequestration'' means a scale that
demonstrates the ability to inject into geologic
formations and sequester several million metric tons of
carbon dioxide for not less than a 10-year period.
(3) Program.--The term ``program'' means the program
established under subsection (b)(1).
(b) Carbon Storage Program.--
(1) In general.--The Secretary shall establish a
program of research, development, and demonstration for
carbon storage.
(2) Program activities.--Activities under the program
shall include--
(A) in coordination with relevant Federal
agencies, developing and maintaining mapping
tools and resources that assess the capacity of
geologic storage formation in the United
States;
(B) developing monitoring tools, modeling of
geologic formations, and analyses--
(i) to predict carbon dioxide
containment; and
(ii) to account for sequestered
carbon dioxide in geologic storage
sites;
(C) researching--
(i) potential environmental, safety,
and health impacts in the event of a
leak into the atmosphere or to an
aquifer; and
(ii) any corresponding mitigation
actions or responses to limit harmful
consequences of such a leak;
(D) evaluating the interactions of carbon
dioxide with formation solids and fluids,
including the propensity of injections to
induce seismic activity;
(E) assessing and ensuring the safety of
operations relating to geologic sequestration
of carbon dioxide;
(F) determining the fate of carbon dioxide
concurrent with and following injection into
geologic formations; and
(G) supporting cost and business model
assessments to examine the economic viability
of technologies and systems developed under the
program.
(3) Geologic settings.--In carrying out research
activities under this subsection, the Secretary shall
consider a variety of candidate onshore and offshore
geologic settings, including--
(A) operating oil and gas fields;
(B) depleted oil and gas fields;
(C) residual oil zones;
(D) unconventional reservoirs and rock types;
(E) unmineable coal seams;
(F) saline formations in both sedimentary and
basaltic geologies;
(G) geologic systems that may be used as
engineered reservoirs to extract economical
quantities of brine from geothermal resources
of low permeability or porosity; and
(H) geologic systems containing in situ
carbon dioxide mineralization formations.
(c) Large-Scale Carbon Sequestration Demonstration
Program.--
(1) In general.--The Secretary shall establish a
demonstration program under which the Secretary shall
provide funding for demonstration projects to collect
and validate information on the cost and feasibility of
commercial deployment of large-scale carbon
sequestration technologies.
(2) Existing regional carbon sequestration
partnerships.--In carrying out paragraph (1), the
Secretary may provide additional funding to regional
carbon sequestration partnerships that are carrying out
or have completed a large-scale carbon sequestration
demonstration project under this section (as in effect
on the day before the date of enactment of the
Enhancing Fossil Fuel Energy Carbon Technology Act of
2019) for additional work on that project.
(3) Demonstration components.--Each demonstration
project carried out under this subsection shall include
longitudinal tests involving carbon dioxide injection
and monitoring, mitigation, and verification
operations.
(4) Clearinghouse.--The National Energy Technology
Laboratory shall act as a clearinghouse of shared
information and resources for--
(A) existing or completed demonstration
projects receiving additional funding under
paragraph (2); and
(B) any new demonstration projects funded
under this subsection.
(5) Report.--Not later than 1 year after the date of
enactment of the Enhancing Fossil Fuel Energy Carbon
Technology Act of 2019, the Secretary shall submit to
the Committee on Energy and Natural Resources of the
Senate and the Committee on Science, Space, and
Technology of the House of Representatives a report
that--
(A) assesses the progress of all regional carbon
sequestration partnerships carrying out a demonstration
project under this subsection;
(B) identifies the remaining challenges in achieving
large-scale carbon sequestration that is reliable and
safe for the environment and public health; and
(C) creates a roadmap for carbon storage research and
development activities of the Department through 2025,
with the goal of reducing economic and policy barriers
to commercial carbon sequestration.
(d) Integrated Storage Program.--
(1) In general.--The Secretary may establish a
program to transition large-scale carbon sequestration
demonstration projects under subsection (c) into
integrated commercial storage complexes.
(2) Goals and objectives.--The goals and objectives
of the program described in paragraph (1) shall be--
(A) to identify geologic storage sites that
are able to accept large volumes of carbon
dioxide acceptable for commercial contracts;
(B) to understand the technical and
commercial viability of carbon dioxide geologic
storage sites; and
(C) to carry out any other activities
necessary to transition the large-scale carbon
sequestration demonstration projects under
subsection (c) into integrated commercial
storage complexes.
(e) Cost Sharing.--Activities carried out under this
section shall be subject to the cost-sharing requirements of
section 988.
(f) Report on Carbon Dioxide Capture Contracting
Authority.--
(1) Report.--Not later than 180 days after the date
of enactment of the Enhancing Fossil Fuel Energy Carbon
Technology Act of 2019, the Secretary shall submit to
the Committee on Energy and Natural Resources of the
Senate and the Committee on Science, Space, and
Technology of the House of Representatives a report
that--
(A) describes the costs and benefits of
entering into long-term binding contracts on
behalf of the Federal Government with qualified
parties to provide support for capturing carbon
dioxide from electricity generated at an
electric generation unit or carbon dioxide
captured from an electric generation unit and
sold to a purchaser for--
(i) the recovery of crude oil; or
(ii) other purposes for which a
commercial market exists;
(B) contains an analysis of how the
Department would establish, implement, and
maintain a contracting program described in
subparagraph (A); and
(C) outlines options for how contracts may be
structured, and regulations that would be
necessary, to implement a contracting program
described in subparagraph (A).
(g) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out this section--
(1) $105,000,000 for fiscal year 2020;
(2) $110,250,000 for fiscal year 2021;
(3) $115,763,000 for fiscal year 2022;
(4) $121,551,000 for fiscal year 2023; and
(5) $127,628,000 for fiscal year 2024.
* * * * * * *
SEC. 969. CARBON UTILIZATION PROGRAM.
(a) In General.--The Secretary shall establish a program of
research, development, and demonstration for carbon utilization
(1) to assess and monitor--
(A) potential changes in lifecycle carbon
dioxide and other greenhouse gas emissions; and
(B) other environmental safety indicators of
new technologies, practices, processes, or
methods used in enhanced hydrocarbon recovery
as part of the activities authorized under
section 963;
(2) to identify and assess novel uses for carbon,
including the conversion of carbon oxides for
commercial and industrial products, such as--
(A) chemicals;
(B) plastics;
(C) building materials;
(D) fuels;
(E) cement;
(F) products of coal use in power systems or
other applications; or
(G) other products with demonstrated market
value;
(3) to identify and assess carbon capture
technologies for industrial systems; and
(4) to identify and assess alternative uses for coal,
including products derived from carbon engineering,
carbon fiber, and coal conversion methods.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out 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. 969A. CARBON REMOVAL.
(a) Establishment.--The Secretary, in coordination with the
heads of appropriate Federal agencies, including the Secretary
of Agriculture, shall establish a research, development, and
demonstration program (referred to in this section as the
`program') to test, validate, or improve technologies and
strategies to remove carbon dioxide from the atmosphere on a
large scale.
(b) Cross-Cutting Direction.--The Secretary shall ensure
that the program--
(1) is cross-cutting in nature; and
(2) includes the coordinated participation of the
Office of Fossil Energy, the Office of Science, and the
Office of Energy Efficiency and Renewable Energy.
(c) Program Activities.--The program may include research,
development, and demonstration activities relating to--
(1) direct air capture and storage technologies;
(2) bioenergy with carbon capture and sequestration;
(3) enhanced geological weathering;
(4) agricultural and grazing practices;
(5) forest management and afforestation; and
(6) planned or managed carbon sinks, including
natural and artificial.
(d) Requirements.--In developing and identifying carbon
removal technologies and strategies under the program, the
Secretary shall consider--
(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; and
(7) economic cobenefits.
(e) Air Capture Technology Prize Competition.--
(1) Definitions.--In this subsection:
(A) Dilute media.--The term `dilute media'
means media in which the concentration of
carbon dioxide is less than 1 percent by
volume.
(B) Prize competition.--The term `prize
competition' means the competitive technology
prize competition established under paragraph
(2).
(2) Establishment.--Not later than 1 year after the
date of enactment of the Enhancing Fossil Fuel Energy
Carbon Technology Act of 2019, the Secretary, in
consultation with the Administrator of the
Environmental Protection Agency, shall establish as
part of the program a competitive technology prize
competition to award prizes for carbon dioxide capture
from dilute media.
(3) Requirements.--In carrying out this subsection,
the Secretary, in accordance with section 24 of the
Stevenson-Wydler Technology Innovation Act of 1980 (15
U.S.C. 3719), shall develop requirements for--
(A) the prize competition process; and
(B) monitoring and verification procedures
for projects selected to receive a prize under
the prize competition.
(4) Eligible projects.--To be eligible to be awarded
a prize under the prize competition, a project shall--
(A) meet minimum performance standards set by
the Secretary;
(B) meet minimum levels set by the Secretary
for the capture of carbon dioxide from dilute
media; and
(C) demonstrate in the application of the
project for a prize--
(i) a design for a promising carbon
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;
(ii) a successful bench-scale
demonstration of a carbon capture
technology; or
(iii) an operational carbon 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 Enhancing Fossil Fuel Energy Carbon
Technology Act of 2019, the Secretary shall award
grants to 1 or more entities for the operation of 1 or
more test centers (referred to in this subsection as a
`Center') 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 direct air
capture and storage 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) Selection.
(A) In general.--The Secretary shall select
entities to receive grants under this
subsection according to such criteria as the
Secretary may develop.
(B) Competitive basis.--The Secretary shall
select entities to receive grants under this
subsection on a competitive basis.
(C) Priority criteria.--In selecting entities
to receive grants under this subsection, the
Secretary shall prioritize applicants that--
(i) have access to existing or
planned research facilities for direct
air capture and storage technologies;
(ii) are institutions of higher
education with established expertise in
engineering for direct air capture and
storage technologies, or partnerships
with such institutions of higher
education; or
(iii) have access to existing
research and test facilities for bulk
materials design and testing, component
design and testing, or professional
engineering design.
(4) Formula for awarding grants.--The Secretary may
develop a formula for awarding grants under this
subsection.
(5) Schedule.--
(A) In general.--Each grant awarded under
this subsection shall be for a term of not more
than 5 years, subject to the availability of
appropriations.
(B) Renewal.--The Secretary may renew a grant
for 1 or more additional 5-year terms, subject
to a competitive merit review and the
availability of appropriations.
(6) Termination.--To the extent otherwise authorized
by law, the Secretary may eliminate, and terminate
grant funding under this subsection for, a Center
during any 5-year term described in paragraph (5) if
the Secretary determines that the Center is
underperforming.
(g) Large-Scale Pilots and Demonstration.--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) Intraagency Coordination.--The direct air capture
activities carried out under subsections (c)(1) and (e) shall
be carried out in coordination with, and leveraging lessons
learned from, the coal and natural gas technology program
established under section 962(b)(1).
(i) Accounting.--The Secretary shall collaborate with the
Administrator of the Environmental Protection Agency and the
heads of other relevant Federal agencies to develop and improve
accounting frameworks and tools to accurately measure carbon
removal and sequestration methods and technologies across the
Federal Government.
(j) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out this section--
(1) $75,000,000 for fiscal year 2020, of which
$15,000,000 shall be used to carry out subsection (e);
(2) $63,500,000 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.
* * * * * * *
[all]