[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.

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