Part F—Fossil Energy
§16291. Fossil energy
(a) Establishment
(1) 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.
(2) Objectives
The programs described in paragraph (1) shall take into consideration the following objectives:
(A) Increasing the energy conversion efficiency of all forms of fossil energy through improved technologies.
(B) Decreasing the cost of all fossil energy production, generation, and delivery.
(C) Promoting diversity of energy supply.
(D) Decreasing the dependence of the United States on foreign energy supplies.
(E) Improving United States energy security.
(F) 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.
(G) Increasing the export of fossil energy-related equipment, technology, including emissions control technologies, and services from the United States.
(H) Decreasing the cost of emissions control technologies for fossil energy production, generation, and delivery.
(I) Significantly lowering greenhouse gas emissions for all fossil fuel production, generation, delivery, and utilization technologies.
(J) 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.
(K) Improving the conversion, use, and storage of carbon oxides produced from fossil fuels.
(L) Reducing water use, improving water reuse, and minimizing surface and subsurface environmental impact in the development of unconventional domestic oil and natural gas resources.
(3) Priority
In carrying out the objectives described in subparagraphs (F) through (K) of paragraph (2), the Secretary shall prioritize activities and strategies that have the potential to significantly reduce emissions for each technology relevant to the applicable objective and the international commitments of the United States.
(b) Authorization of appropriations
There are authorized to be appropriated to the Secretary to carry out fossil energy research, development, demonstration, and commercial application activities, including activities authorized under this part—
(1) $611,000,000 for fiscal year 2007;
(2) $626,000,000 for fiscal year 2008; and
(3) $641,000,000 for fiscal year 2009.
(c) Allocations
From amounts authorized under subsection (a), the following sums are authorized:
(1) For activities under section 16292 1 of this title—
(A) $367,000,000 for fiscal year 2007;
(B) $376,000,000 for fiscal year 2008; and
(C) $394,000,000 for fiscal year 2009.
(2) For activities under
(A) $20,000,000 for fiscal year 2007;
(B) $25,000,000 for fiscal year 2008; and
(C) $30,000,000 for fiscal year 2009.
(3) For activities under
(A) $1,500,000 for fiscal year 2007; and
(B) $450,000 for each of fiscal years 2008 and 2009.
(4) For the Office of Arctic Energy under
(d) Extended authorization
There are authorized to be appropriated to the Secretary for the Office of Arctic Energy established under
(e) Limitations
(1) Uses
None of the funds authorized under this section may be used for Fossil Energy Environmental Restoration or Import/Export Authorization.
(2) Institutions of higher education
Of the funds authorized under subsection (c)(2), not less than 20 percent of the funds appropriated for each fiscal year shall be dedicated to research and development carried out at institutions of higher education.
(
Editorial Notes
References in Text
This part, referred to in subsecs. (a)(1) and (b), was in the original "this subtitle", meaning subtitle F (§§961–968) of title IX of
Amendments
2020—Subsec. (a).
Subsec. (a)(3).
1 See References in Text note below.
§16291a. Property interests
That for all programs funded under Fossil Energy appropriations in this and subsequent Acts, the Secretary may vest fee title or other property interests acquired under projects in any entity, including the United States.
(
Editorial Notes
Codification
Section was enacted as part of the Energy and Water Development and Related Agencies Appropriations Act, 2014, and also as part of the Consolidated Appropriations Act, 2014, and not as part of the Energy Policy Act of 2005 which comprises this chapter.
Statutory Notes and Related Subsidiaries
Definitions
For definition of "this [Act]", referred to in text, see section 3 of
§16292. Carbon capture 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 project application to commercial-scale demonstration or application.
(2) Natural gas
The term "natural gas" means any fuel consisting in whole or in part of—
(A) natural gas;
(B) liquid petroleum gas;
(C) synthetic gas derived from petroleum or natural gas liquids;
(D) any mixture of natural gas and synthetic gas; or
(E) biomethane.
(3) Natural gas electric generation facility
(A) In general
The term "natural gas electric generation facility" means a facility that generates electric energy using natural gas as the fuel.
(B) Inclusions
The term "natural gas electric generation facility" includes without limitation a new or existing—
(i) simple cycle plant;
(ii) combined cycle plant;
(iii) combined heat and power plant; or
(iv) steam methane reformer that produces hydrogen from natural gas for use in the production of electric energy.
(4) Program
The term "program" means the program established under subsection (b)(1).
(5) Transformational technology
(A) In general
The term "transformational technology" means a technology that represents a significant change in the methods used to convert energy that will enable a step change in performance, efficiency, cost of electricity, and reduction of emissions as compared to the technology in existence on December 27, 2020.
(B) Inclusions
The term "transformational technology" includes a broad range of potential 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) Carbon capture technology program
(1) In general
The Secretary shall establish a carbon capture technology program for the development of transformational technologies that will significantly improve the efficiency, effectiveness, costs, emissions reductions, and environmental performance of coal and natural gas use, including in manufacturing and industrial facilities.
(2) Requirements
The program shall include—
(A) a research and development program;
(B) large-scale pilot projects;
(C) demonstration projects, in accordance with paragraph (4);
(D) a front-end engineering and design program for carbon capture technologies; and
(E) a front-end engineering and design program for carbon dioxide transport infrastructure necessary to enable deployment of carbon capture, utilization, and storage technologies.
(3) Program goals and objectives
In consultation with the interested entities described in paragraph (6)(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 electric generation facilities and natural gas electric generation facilities, including by—
(i) ensuring reliable, low-cost power from new and existing coal electric generation facilities and natural gas electric generation facilities;
(ii) achieving high conversion efficiencies;
(iii) addressing emissions of carbon dioxide and other air pollutants;
(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 electric generation facilities and natural gas electric generation facilities, including by—
(i) accelerating the development, deployment, and commercialization of technologies to capture and sequester carbon dioxide emissions from new and existing coal electric generation facilities and natural gas electric generation facilities;
(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;
(vi) developing net-negative carbon dioxide emissions technologies; and
(vii) developing technologies for the capture of carbon dioxide produced during the production of hydrogen from natural gas.
(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 significantly decrease emissions from manufacturing and 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) Entering into cooperative agreements to carry out and expedite demonstration projects (including pilot projects) to demonstrate the technical and commercial viability of technologies to reduce carbon dioxide emissions released from coal electric generation facilities and natural gas electric generation facilities for commercial deployment.
(F) Identifying any barriers to the commercial deployment of any technologies under development for the capture of carbon dioxide produced by coal electric generation facilities and natural gas electric generation facilities.
(4) Demonstration projects
(A) In general
In carrying out the program, the Secretary shall establish a demonstration program under which the Secretary, through a competitive, merit-reviewed process, shall enter into cooperative agreements by not later than September 30, 2025, for demonstration projects to demonstrate the construction and operation of 6 facilities to capture carbon dioxide from coal electric generation facilities, natural gas electric generation facilities, and industrial facilities.
(B) Technical assistance
The Secretary, to the maximum extent practicable, shall provide technical assistance to any eligible entity seeking to enter into a cooperative agreement described in subparagraph (A) for the purpose of obtaining any necessary permits and licenses to demonstrate qualifying technologies.
(C) Eligible entities
The Secretary may enter into cooperative agreements under subparagraph (A) with industry stakeholders, including any industry stakeholder operating in partnership with the National Laboratories, institutions of higher education, multiinstitutional collaborations, and other appropriate entities.
(D) Commercial-scale demonstration projects
(i) In general
In carrying out the program, the Secretary shall establish a carbon capture technology commercialization program to demonstrate substantial improvements in the efficiency, effectiveness, cost, and environmental performance of carbon capture technologies for power, industrial, and other commercial applications.
(ii) Requirement
The program established under clause (i) shall include funding for commercial-scale carbon capture technology demonstrations of projects supported by the Department, including projects in addition to the projects described in subparagraph (A), including funding for not more than 2 projects to demonstrate substantial improvements in a particular technology type beyond the first of a kind demonstration and to account for considerations described in subparagraph (G).
(E) Requirement
Of the demonstration projects carried out under subparagraph (A)—
(i) 2 shall be designed to capture carbon dioxide from a natural gas electric generation facility;
(ii) 2 shall be designed to capture carbon dioxide from a coal electric generation facility; and
(iii) 2 shall be designed to capture carbon dioxide from an industrial facility not purposed for electric generation.
(F) Goals
Each demonstration project under the demonstration program under subparagraph (A)—
(i) shall be designed to further the development, deployment, and commercialization of technologies to capture and sequester carbon dioxide emissions from new and existing coal electric generation facilities, natural gas electric generation facilities, and industrial facilities;
(ii) shall be financed in part by the private sector; and
(iii) if necessary, shall secure agreements for the offtake of carbon dioxide emissions captured by qualifying technologies during the project.
(G) Applications
(i) In general
To be eligible to enter into an agreement with the Secretary for a demonstration project under subparagraphs (A) and (D), an entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.
(ii) Review of applications
In reviewing applications submitted under clause (i), the Secretary, to the maximum extent practicable, shall—
(I) ensure a broad geographic distribution of project sites;
(II) ensure that a broad selection of electric generation facilities are represented;
(III) ensure that a broad selection of technologies are represented; and
(IV) leverage existing public-private partnerships and Federal resources.
(H) GAO study and report
(i) Study and report
(I) In general
Not later than 1 year after December 27, 2020, the Comptroller General of the United States shall conduct, and 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 on the results of, a study of the successes, failures, practices, and improvements of the Department in carrying out demonstration projects under this paragraph.
(II) Considerations
In conducting the study under subclause (I), the Comptroller General of the United States shall consider—
(aa) applicant and contractor qualifications;
(bb) project management practices at the Department;
(cc) economic or market changes and other factors impacting project viability;
(dd) completion of third-party agreements, including power purchase agreements and carbon dioxide offtake agreements;
(ee) regulatory challenges; and
(ff) construction challenges.
(ii) Recommendations
The Secretary shall—
(I) consider any relevant recommendations, as determined by the Secretary, provided in the report required under clause (i)(I); and
(II) adopt such recommendations as the Secretary considers appropriate.
(I) Report
(i) In general
Not later than 180 days after the date on which the Secretary solicits applications under subparagraph (G), and annually thereafter, the Secretary shall submit to the appropriate committees of jurisdiction of the Senate and the House of Representatives a report that includes a detailed description of how the applications under the demonstration program established under subparagraph (A) were or will be solicited and how the applications were or will be evaluated, including—
(I) a list of any activities carried out by the Secretary to solicit or evaluate the applications; and
(II) a process for ensuring that any projects carried out under a cooperative agreement entered into under subparagraph (A) are designed to result in the development or demonstration of qualifying technologies.
(ii) Inclusions
The Secretary shall include—
(I) in the first report required under clause (i), a detailed list of technical milestones for the development and demonstration of each qualifying technology pursued under the demonstration program established under subparagraph (A);
(II) in each subsequent report required under clause (i), a description of the progress made towards achieving the technical milestones described in subclause (I) during the applicable period covered by the report; and
(III) in each report required under clause (i)—
(aa) an estimate of the cost of licensing, permitting, constructing, and operating each carbon capture facility expected to be constructed under the demonstration program established under subparagraph (A);
(bb) a schedule for the planned construction and operation of each demonstration or pilot project under the demonstration program; and
(cc) an estimate of any financial assistance, compensation, or incentives proposed to be paid by the host State, Indian Tribe, or local government with respect to each facility described in item (aa).
(5) Intraagency coordination for carbon capture, utilization, and sequestration activities
The carbon capture, utilization, and sequestration activities described in paragraph (3)(B) shall be carried out by the Assistant Secretary for Fossil Energy, in coordination with the heads of other relevant offices of the Department and the National Laboratories.
(6) Consultations required
In carrying out the program, the Secretary shall—
(A) undertake international collaborations, taking into consideration the recommendations of the National Coal Council and the National Petroleum 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 December 27, 2020, 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 2021 and 2022; and
(ii) $150,000,000 for each of fiscal years 2023 through 2025;
(B) subject to paragraph (2), for activities under the large-scale pilot projects program component described in subsection (b)(2)(B)—
(i) $225,000,000 for each of fiscal years 2021 and 2022;
(ii) $200,000,000 for each of fiscal years 2023 and 2024; and
(iii) $150,000,000 for fiscal year 2025;
(C) for activities under the demonstration projects program component described in subsection (b)(2)(C)—
(i) $500,000,000 for each of fiscal years 2021 though 2024; and
(ii) $600,000,000 for fiscal year 2025;
(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 2021 through 2024; and
(E) for activities under the front-end engineering and design program described in subsection (b)(2)(E), $100,000,000 for the period of fiscal years 2022 through 2026.
(2) Cost sharing for large-scale pilot projects
Activities under subsection (b)(2)(B) shall be subject to the cost-sharing requirements of
(e) Carbon capture test centers
(1) In general
Not later than 2 years after December 27, 2020, 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 distinct testing capabilities for innovative carbon capture technologies.
(2) Purpose
Each Center shall—
(A) advance research, development, demonstration, and commercial application of carbon capture technologies;
(B) support large-scale pilot projects and demonstration projects and test carbon capture technologies; and
(C) develop front-end engineering design and economic analysis.
(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 consideration of applicants that—
(i) have access to existing or planned research facilities for carbon capture technologies;
(ii) are institutions of higher education with established expertise in engineering for carbon capture 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.
(D) Existing centers
In selecting entities to receive grants under this subsection, the Secretary shall prioritize carbon capture test centers in existence on December 27, 2020.
(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.
(7) Authorization of appropriations
There is authorized to be appropriated to carry out this subsection $25,000,000 for each of fiscal years 2021 through 2025.
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Editorial Notes
Prior Provisions
A prior section 16292,
Amendments
2021—Subsec. (b)(2)(D).
Subsec. (b)(2)(E).
Subsec. (d)(1)(E).
Statutory Notes and Related Subsidiaries
Wage Rate Requirements
For provisions relating to rates of wages to be paid to laborers and mechanics on projects for construction, alteration, or repair work funded under div. D or an amendment by div. D of
Findings
"(1) the industrial sector is integral to the economy of the United States—
"(A) providing millions of jobs and essential products; and
"(B) demonstrating global leadership in manufacturing and innovation;
"(2) carbon capture and storage technologies are necessary for reducing hard-to-abate emissions from the industrial sector, which emits nearly 25 percent of carbon dioxide emissions in the United States;
"(3) carbon removal and storage technologies, including direct air capture, must be deployed at large-scale in the coming decades to remove carbon dioxide directly from the atmosphere;
"(4) large-scale deployment of carbon capture, removal, utilization, transport, and storage—
"(A) is critical for achieving mid-century climate goals; and
"(B) will drive regional economic development, technological innovation, and high-wage employment;
"(5) carbon capture, removal, and utilization technologies require a backbone system of shared carbon dioxide transport and storage infrastructure to enable large-scale deployment, realize economies of scale, and create an interconnected carbon management market;
"(6) carbon dioxide transport infrastructure and permanent geological storage are proven and safe technologies with existing Federal and State regulatory frameworks;
"(7) carbon dioxide transport and storage infrastructure share similar barriers to deployment previously faced by other types of critical national infrastructure, such as high capital costs and chicken-and-egg challenges, that require Federal and State support, in combination with private investment, to be overcome; and
"(8) each State should take into consideration, with respect to new carbon dioxide transportation infrastructure—
"(A) qualifying the infrastructure as pollution control devices under applicable laws (including regulations) of the State; and
"(B) establishing a waiver of ad valorem and property taxes for the infrastructure for a period of not less than 10 years."
§16293. Carbon storage validation and testing
(a) Definitions
In this section:
(1) Large-scale carbon sequestration
The term "large-scale carbon sequestration" means a scale that—
(A) demonstrates the ability to inject into geologic formations and sequester carbon dioxide; and
(B) has a goal of sequestering not less than 50 million metric tons of carbon dioxide.
(2) 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, demonstration, and commercialization 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;
(G) supporting cost and business model assessments to examine the economic viability of technologies and systems developed under the program;
(H) providing information to the Environmental Protection Agency, States, local governments, Tribal governments, and other appropriate entities, to ensure the protection of human health and the environment; and
(I) evaluating the quantity, location, and timing of geologic carbon storage deployment that may be needed, and developing strategies and resources to enable the deployment.
(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 December 27, 2020) 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 December 27, 2020, 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
(1) In general
The Secretary may 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 Secretary in seeking to transition large-scale carbon sequestration demonstration projects into integrated commercial storage complexes under 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) Large-scale carbon storage commercialization program
(1) In general
The Secretary shall establish a commercialization program under which the Secretary shall provide funding for the development of new or expanded commercial large-scale carbon sequestration projects and associated carbon dioxide transport infrastructure, including funding for the feasibility, site characterization, permitting, and construction stages of project development.
(2) Applications; selection
(A) In general
To be eligible to enter into an agreement with the Secretary for funding under paragraph (1), an entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary determines to be appropriate.
(B) Application process
The Secretary shall establish an application process that, to the maximum extent practicable—
(i) is open to projects at any stage of development described in paragraph (1); and
(ii) facilitates expeditious development of projects described in that paragraph.
(C) Project selection
In selecting projects for funding under paragraph (1), the Secretary shall give priority to—
(i) projects with substantial carbon dioxide storage capacity; or
(ii) projects that will store carbon dioxide from multiple carbon capture facilities.
(f) Preference in project selection from meritorious proposals
In making competitive awards under this section, subject to the requirements of
(1) with respect to the research, development, demonstration program components described in subsections (b) through (d) give preference to proposals from partnerships among industrial, academic, and government entities; and
(2) 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 section 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
(g) Cost sharing
Activities carried out under this section shall be subject to the cost-sharing requirements of
(h) Authorization of appropriations
There is authorized to be appropriated to the Secretary to carry out this section $2,500,000,000 for the period of fiscal years 2022 through 2026.
(
Editorial Notes
Amendments
2021—Subsec. (a)(1)(B).
Subsec. (b)(1).
Subsec. (b)(2)(I).
Subsec. (e).
Subsec. (f).
Subsec. (f)(1).
Subsec. (g).
Subsec. (h).
2020—
Subsecs. (a), (b).
Subsec. (c).
Subsec. (c)(4).
Subsec. (c)(5), (6).
Subsec. (d).
Subsec. (e).
Subsec. (f).
Subsec. (g).
2007—
Subsec. (a).
Subsec. (b)(5).
Subsecs. (c), (d).
"(1) $25,000,000 for fiscal year 2006;
"(2) $30,000,000 for fiscal year 2007; and
"(3) $35,000,000 for fiscal year 2008."
Statutory Notes and Related Subsidiaries
Effective Date of 2007 Amendment
Amendment by
Wage Rate Requirements
For provisions relating to rates of wages to be paid to laborers and mechanics on projects for construction, alteration, or repair work funded under div. D or an amendment by div. D of
§16294. Research and development for coal mining technologies
(a) Establishment
The Secretary shall carry out a program for research and development on coal mining technologies.
(b) Cooperation
In carrying out the program, the Secretary shall cooperate with appropriate Federal agencies, coal producers, trade associations, equipment manufacturers, institutions of higher education with mining engineering departments, and other relevant entities.
(c) Program
The research and development activities carried out under this section shall—
(1) be guided by the mining research and development priorities identified by the Mining Industry of the Future Program and in the recommendations from relevant reports of the National Academy of Sciences on mining technologies;
(2) include activities exploring minimization of contaminants in mined coal that contribute to environmental concerns including development and demonstration of electromagnetic wave imaging ahead of mining operations;
(3) develop and demonstrate coal bed electromagnetic wave imaging, spectroscopic reservoir analysis technology, and techniques for horizontal drilling in order to—
(A) identify areas of high coal gas content;
(B) increase methane recovery efficiency;
(C) prevent spoilage of domestic coal reserves; and
(D) minimize water disposal associated with methane extraction; and
(4) expand mining research capabilities at institutions of higher education.
(
§16295. Oil and gas research programs
(a) In general
The Secretary shall conduct a program of research, development, demonstration, and commercial application of oil and gas, including—
(1) exploration and production;
(2) gas hydrates;
(3) reservoir life and extension;
(4) transportation and distribution infrastructure;
(5) ultraclean fuels;
(6) heavy oil, oil shale, and tar sands; and
(7) related environmental research.
(b) Objectives
The objectives of this program shall include advancing the science and technology available to domestic petroleum producers, particularly independent operators, to minimize the economic dislocation caused by the decline of domestic supplies of oil and natural gas resources.
(c) Natural gas and oil deposits report
Not later than 2 years after August 8, 2005, and every 2 years thereafter, the Secretary of the Interior, in consultation with other appropriate Federal agencies, shall submit to Congress a report on the latest estimates of natural gas and oil reserves, reserves growth, and undiscovered resources in Federal and State waters off the coast of Louisiana, Texas, Alabama, and Mississippi.
(d) Integrated clean power and energy research
(1) Establishment of center
The Secretary shall establish a national center or consortium of excellence in clean energy and power generation, using the resources of the Clean Power and Energy Research Consortium in existence on August 8, 2005, to address the critical dependence of the United States on energy and the need to reduce emissions.
(2) Focus areas
The center or consortium shall conduct a program of research, development, demonstration, and commercial application on integrating the following 6 focus areas:
(A) Efficiency and reliability of gas turbines for power generation.
(B) Reduction in emissions from power generation.
(C) Promotion of energy conservation issues.
(D) Effectively using alternative fuels and renewable energy.
(E) Development of advanced materials technology for oil and gas exploration and use in harsh environments.
(F) Education on energy and power generation issues.
(
§16296. Low-volume oil and gas reservoir research program
(a) Definition of GIS
In this section, the term "GIS" means geographic information systems technology that facilitates the organization and management of data with a geographic component.
(b) Program
The Secretary shall establish a program of research, development, demonstration, and commercial application to maximize the productive capacity of marginal wells and reservoirs.
(c) Data collection
Under the program, the Secretary shall collect data on—
(1) the status and location of marginal wells and oil and gas reservoirs;
(2) the production capacity of marginal wells and oil and gas reservoirs;
(3) the location of low-pressure gathering facilities and pipelines; and
(4) the quantity of natural gas vented or flared in association with crude oil production.
(d) Analysis
Under the program, the Secretary shall—
(1) estimate the remaining producible reserves based on variable pipeline pressures; and
(2) recommend measures that will enable the continued production of those resources.
(e) Study
(1) In general
The Secretary may award a grant to an organization of States that contain significant numbers of marginal oil and natural gas wells to conduct an annual study of low-volume natural gas reservoirs.
(2) Organization with no GIS capabilities
If an organization receiving a grant under paragraph (1) does not have GIS capabilities, the organization shall contract with an institution of higher education with GIS capabilities.
(3) State geologists
The organization receiving a grant under paragraph (1) shall collaborate with the State geologist of each State being studied.
(f) Public information
The Secretary may use the data collected and analyzed under this section to produce maps and literature to disseminate to States to promote conservation of natural gas reserves.
(
§16297. Complex Well Technology Testing Facility
The Secretary, in coordination with industry leaders in extended research drilling technology, shall establish a Complex Well Technology Testing Facility at the Rocky Mountain Oilfield Testing Center to increase the range of extended drilling technologies.
(
§16298. Carbon utilization program
(a) In general
The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall carry out a program of research, development, demonstration, and commercialization relating to carbon utilization.
(b) Activities
Under the program described in subsection (a), the Secretary shall—
(1) 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
(2) identify and evaluate novel uses for carbon (including conversion of carbon oxides) that, on a full lifecycle basis, achieve a permanent reduction, or avoidance of a net increase, in carbon dioxide in the atmosphere, for use in commercial and industrial products such as—
(A) chemicals;
(B) plastics;
(C) building materials;
(D) fuels;
(E) cement;
(F) products of coal utilization in power systems or in other applications; and
(G) other products with demonstrated market value;
(3) identify and assess carbon capture technologies for industrial systems; and
(4) identify and assess alternative uses for coal that result in zero net emissions of carbon dioxide or other pollutants, including products derived from carbon engineering, carbon fiber, and coal conversion methods.
(c) Prioritization
In supporting demonstration and commercialization research under the program described in subsection (a), the Secretary shall prioritize consideration of projects that—
(1) have access to a carbon dioxide emissions stream generated by a stationary source in the United States that is capable of supplying not less than 250 metric tons per day of carbon dioxide for research;
(2) have access to equipment for testing small-scale carbon dioxide utilization technologies, with onsite access to larger test bays for scale-up; and
(3) have 1 or more existing partnerships with a National Laboratory, an institution of higher education, a private company, or a State or other government entity.
(d) Coordination
The Secretary shall coordinate the activities authorized under this section with the activities authorized in
(e) Authorization of appropriations
There is authorized to be appropriated to the Secretary to carry out this section $50,000,000, to remain available until expended.
(
§16298a. 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
(2) to identify and assess novel uses for carbon, including the conversion of carbon and carbon oxides for commercial and industrial products and other products with potential market value;
(3) to develop or obtain, in coordination with other applicable Federal agencies and standard-setting organizations, standards and certifications, as appropriate, to facilitate the commercialization of the products and technologies described in paragraph (2);
(4) to identify and assess carbon capture technologies for industrial systems; and
(5) to identify and assess alternative uses for raw coal and processed coal products in all phases that result in no significant emissions of carbon dioxide or other pollutants, including products derived from carbon engineering, carbon fiber, and coal conversion methods.
(b) Demonstration programs for the purpose of commercialization
(1) In general
Not later than 180 days after December 27, 2020, as part of the program established under subsection (a), the Secretary shall establish a 2-year demonstration program in each of the 2 major coal-producing regions of the United States for the purpose of partnering with private institutions in coal mining regions to accelerate the commercial deployment of coal-carbon products.
(2) Grant program
(A) In general
Not later than 1 year after November 15, 2021, the Secretary shall establish a program to provide grants to eligible entities to use in accordance with subparagraph (D).
(B) Eligible entities
To be eligible to receive a grant under this paragraph, an entity shall be—
(i) a State;
(ii) a unit of local government; or
(iii) a public utility or agency.
(C) Applications
Eligible entities desiring a grant under this paragraph shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary determines to be appropriate.
(D) Use of funds
An eligible entity shall use a grant received under this paragraph to procure and use commercial or industrial products that—
(i) use or are derived from anthropogenic carbon oxides; and
(ii) demonstrate significant net reductions in lifecycle greenhouse gas emissions compared to incumbent technologies, processes, and products.
(3) Cost sharing
Activities under this subsection shall be subject to the cost-sharing requirements of
(c) Carbon Utilization Research Center
(1) In general
In carrying out the program under subsection (a), the Secretary shall establish and operate a national Carbon Utilization Research Center (referred to in this subsection as the "Center"), which shall focus on early stage research and development activities including—
(A) post-combustion and pre-combustion capture of carbon dioxide;
(B) advanced compression technologies for new and existing fossil fuel-fired power plants;
(C) technologies to convert carbon dioxide to valuable products and commodities; and
(D) advanced carbon dioxide storage technologies that consider a range of storage regimes.
(2) Selection
The Secretary shall—
(A) select the Center under this subsection on a competitive, merit-reviewed basis; and
(B) consider applications from the National Laboratories, institutions of higher education, multiinstitutional collaborations, and other appropriate entities.
(3) Existing centers
In selecting the Center under this subsection, the Secretary shall prioritize carbon utilization research centers in existence on December 27, 2020.
(4) Duration
The Center established under this subsection shall receive support for a period of not more than 5 years, subject to the availability of appropriations.
(5) Renewal
On the expiration of any period of support of the Center, the Secretary may renew support for the Center, on a merit-reviewed basis, for a period of not more than 5 years.
(6) Termination
Consistent with the existing authorities of the Department, the Secretary may terminate the Center for cause during the performance period.
(d) Authorization of appropriations
There are authorized to be appropriated to the Secretary to carry out this section—
(1) $41,000,000 for fiscal year 2022;
(2) $65,250,000 for fiscal year 2023;
(3) $66,562,500 for fiscal year 2024;
(4) $67,940,625 for fiscal year 2025; and
(5) $69,387,656 for fiscal year 2026.
(e) Coordination
The Secretary shall coordinate the activities authorized in this section with the activities authorized in
(
Editorial Notes
Amendments
2021—Subsec. (a)(3) to (5).
Subsec. (b)(2), (3).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Wage Rate Requirements
For provisions relating to rates of wages to be paid to laborers and mechanics on projects for construction, alteration, or repair work funded under div. D or an amendment by div. D of
§16298b. High efficiency turbines
(a) In general
The Secretary, acting through the Assistant Secretary for Fossil Energy (referred to in this section as the "Secretary"), shall establish a multiyear, multiphase program (referred to in this section as the "program") of research, development, and technology demonstration to improve the efficiency of gas turbines used in power generation systems and aviation.
(b) Program elements
The program shall—
(1) support first-of-a-kind engineering and detailed gas turbine design for small-scale and utility-scale electric power generation, including—
(A) high temperature materials, including superalloys, coatings, and ceramics;
(B) improved heat transfer capability;
(C) manufacturing technology required to construct complex 3-dimensional geometry parts with improved aerodynamic capability;
(D) combustion technology to produce higher firing temperature while lowering nitrogen oxide and carbon monoxide emissions per unit of output;
(E) advanced controls and systems integration;
(F) advanced high performance compressor technology; and
(G) validation facilities for the testing of components and subsystems;
(2) include technology demonstration through component testing, subscale testing, and full-scale testing in existing fleets;
(3) include field demonstrations of the developed technology elements to demonstrate technical and economic feasibility;
(4) assess overall combined cycle and simple cycle system performance;
(5) increase fuel flexibility by enabling gas turbines to operate with high proportions of, or pure, hydrogen or other renewable gas fuels;
(6) enhance foundational knowledge needed for low-emission combustion systems that can work in high-pressure, high-temperature environments required for high-efficiency cycles;
(7) increase operational flexibility by reducing turbine start-up times and improving the ability to accommodate flexible power demand; and
(8) include any other elements necessary to achieve the goals described in subsection (c), as determined by the Secretary, in consultation with private industry.
(c) Program goals
(1) In general
The goals of the program shall be—
(A) in phase I, to develop a conceptual design of, and to develop and demonstrate the technology required for—
(i) advanced high efficiency gas turbines to achieve, on a lower heating value basis—
(I) a combined cycle efficiency of not less than 65 percent; or
(II) a simple cycle efficiency of not less than 47 percent; and
(ii) aviation gas turbines to achieve a 25 percent reduction in fuel burn by improving fuel efficiency to existing best-in-class turbo-fan engines; and
(B) in phase II, to develop a conceptual design of advanced high efficiency gas turbines that can achieve, on a lower heating value basis—
(i) a combined cycle efficiency of not less than 67 percent; or
(ii) a simple cycle efficiency of not less than 50 percent.
(2) Additional goals
If a goal described in paragraph (1) has been achieved, the Secretary, in consultation with private industry and the National Academy of Sciences, may develop additional goals or phases for advanced gas turbine research and development.
(d) Financial assistance
(1) In general
The Secretary may provide financial assistance, including grants, to carry out the program.
(2) Proposals
Not later than 180 days after December 27, 2020, the Secretary shall solicit proposals from industry, small businesses, universities, and other appropriate parties for conducting activities under this section.
(3) Considerations
In selecting proposed projects to receive financial assistance under this subsection, the Secretary shall give special consideration to the extent to which the proposed project will—
(A) stimulate the creation or increased retention of jobs in the United States; and
(B) promote and enhance technology leadership in the United States.
(4) Competitive awards
The Secretary shall provide financial assistance under this subsection on a competitive basis, with an emphasis on technical merit.
(5) Cost sharing
Financial assistance provided under this subsection shall be subject to the cost sharing requirements of
(e) Authorization of appropriations
There is authorized to be appropriated to carry out this section $50,000,000 for each of fiscal years 2021 through 2025.
(
§16298c. National Energy Technology Laboratory reforms
(a) Special hiring authority for scientific, engineering, and project management personnel
(1) In general
The Director of the National Energy Technology Laboratory (referred to in this section as the "Director") may—
(A) make appointments to positions in the National Energy Technology Laboratory to assist in meeting a specific project or research need, without regard to civil service laws, of individuals who—
(i) have an advanced scientific or engineering background; or
(ii) have a business background and can assist in specific technology-to-market needs;
(B) fix the basic pay of any employee appointed under subparagraph (A) at a rate not to exceed level II of the Executive Schedule under
(C) pay any employee appointed under subparagraph (A) payments in addition to the basic pay fixed under subparagraph (B), subject to the condition that the total amount of additional payments paid to an employee under this subparagraph for any 12-month period shall not exceed the least of—
(i) $25,000;
(ii) the amount equal to 25 percent of the annual rate of basic pay of that employee; and
(iii) the amount of the limitation that is applicable for a calendar year under
(2) Limitations
(A) In general
The term of any employee appointed under paragraph (1)(A) shall not exceed 3 years.
(B) Full-time employees
Not more than 10 full-time employees appointed under paragraph (1)(A) may be employed at the National Energy Technology Laboratory at any given time.
(b) Laboratory-directed research and development
(1) In general
Beginning in fiscal year 2021, the National Energy Technology Laboratory shall be eligible for laboratory-directed research and development funding.
(2) Authorization of funding
(A) In general
Each fiscal year, of funds made available to the National Energy Technology Laboratory, the Secretary may deposit an amount, not to exceed the rate made available to the National Laboratories for laboratory-directed research and development, in a special fund account.
(B) Use
Amounts in the account under subparagraph (A) shall only be available for laboratory-directed research and development.
(C) Requirements
The account under subparagraph (A)—
(i) shall be administered by the Secretary;
(ii) shall be available without fiscal year limitation; and
(iii) shall not be subject to appropriation.
(3) Requirement
The Director shall carry out laboratory-directed research and development activities at the National Energy Technology Laboratory consistent with Department of Energy Order 413.2C, dated August 2, 2018 (or a successor order).
(4) Annual report on use of authority
Annually, 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 on the use of the authority provided under this subsection during the preceding fiscal year.
(c) Laboratory operations
The Secretary shall delegate human resources operations of the National Energy Technology Laboratory to the Director to assist in carrying out this section.
(d) Review
Not later than 2 years after December 27, 2020, 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 assessing the management and research activities of the National Energy Technology Laboratory, which shall include—
(1) an assessment of the quality of science and research at the National Energy Technology Laboratory, relative to similar work at other National Laboratories;
(2) a review of the effectiveness of authorities provided in subsections (a) and (b); and
(3) recommendations for policy changes within the Department and legislative changes to provide the National Energy Technology Laboratory with the necessary tools and resources to advance the research mission of the National Energy Technology Laboratory.
(
§16298d. 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) Intraagency coordination
The Secretary shall ensure that the program 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 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 prize competitions
(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).
(C) Qualified carbon dioxide
(i) In general
The term "qualified carbon dioxide" means any carbon dioxide that—
(I) is captured directly from the ambient air; and
(II) is measured at the source of capture and verified at the point of disposal, injection, or utilization.
(ii) Inclusion
The term "qualified carbon dioxide" includes the initial deposit of captured carbon dioxide used as a tertiary injectant.
(iii) Exclusion
The term "qualified carbon dioxide" does not include carbon dioxide that is recaptured, recycled, and reinjected as part of the enhanced oil and natural gas recovery process.
(D) Qualified direct air capture facility
(i) In general
The term "qualified direct air capture facility" means any facility that—
(I) uses carbon capture equipment to capture carbon dioxide directly from the ambient air; and
(II) captures more than 50,000 metric tons of qualified carbon dioxide annually.
(ii) Exclusion
The term "qualified direct air capture facility" does not include any facility that captures carbon dioxide—
(I) that is deliberately released from naturally occurring subsurface springs; or
(II) using natural photosynthesis.
(2) Establishment
Not later than 2 years after December 27, 2020, 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—
(A) precommercial carbon dioxide capture from dilute media; and
(B) commercial applications of direct air capture technologies.
(3) Requirements
In carrying out this subsection, the Secretary, in accordance with
(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
(A) Precommercial air capture projects
With respect to projects described in paragraph (2)(A), to be eligible to be awarded a prize under the prize competition, a project shall—
(i) meet minimum performance standards set by the Secretary;
(ii) meet minimum levels set by the Secretary for the capture of carbon dioxide from dilute media; and
(iii) demonstrate in the application of the project for a prize—
(I) a design for a promising carbon capture technology that will—
(aa) be operated on a demonstration scale; and
(bb) 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.
(B) Commercial direct air capture projects
(i) In general
With respect to projects described in paragraph (2)(B), the Secretary shall award prizes under the prize competition to qualified direct air capture facilities for metric tons of qualified carbon dioxide captured and verified at the point of disposal, injection, or utilization.
(ii) Amount of award
The amount of the award per metric ton under clause (i)—
(I) shall be equal for each qualified direct air capture facility selected for a prize under the prize competition; and
(II) shall be determined by the Secretary and in any case shall not exceed—
(aa) $180 for qualified carbon dioxide captured and stored in saline storage formations;
(bb) a lesser amount, as determined by the Secretary, for qualified carbon dioxide captured and stored in conjunction with enhanced oil recovery operations; or
(cc) a lesser amount, as determined by the Secretary, for qualified carbon dioxide captured and utilized in any activity consistent with
(iii) Requirement
The Secretary shall make awards under this subparagraph until appropriated funds are expended.
(f) Direct air capture test center
(1) In general
Not later than 2 years after December 27, 2020, 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 distinct 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 large-scale pilot and demonstration projects and test direct air capture and storage technologies; and
(C) develop front-end engineering design and economic analysis.
(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 consideration of 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) Pilot and demonstration projects
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 collaboration
In carrying out the program, the Secretary shall encourage and promote collaborations among relevant offices and agencies within the Department.
(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.
(j) Regional direct air capture hubs
(1) Definitions
In this subsection:
(A) Eligible project
The term "eligible project" means a direct air capture project or a component project of a regional direct air capture hub.
(B) Regional direct air capture hub
The term "regional direct air capture hub" means a network of direct air capture projects, potential carbon dioxide utilization off-takers, connective carbon dioxide transport infrastructure, subsurface resources, and sequestration infrastructure located within a region.
(2) Establishment of program
(A) In general
The Secretary shall establish a program under which the Secretary shall provide funding for eligible projects that contribute to the development of 4 regional direct air capture hubs described in subparagraph (B).
(B) Regional direct air capture hubs
Each of the 4 regional direct air capture hubs developed under the program under subparagraph (A) shall be a regional direct air capture hub that—
(i) facilitates the deployment of direct air capture projects;
(ii) has the capacity to capture and sequester, utilize, or sequester and utilize at least 1,000,000 metric tons of carbon dioxide from the atmosphere annually from a single unit or multiple interconnected units;
(iii) demonstrates the capture, processing, delivery, and sequestration or end-use of captured carbon; and
(iv) could be developed into a regional or interregional carbon network to facilitate sequestration or carbon utilization.
(3) Selection of projects
(A) Solicitation of proposals
(i) In general
Not later than 180 days after November 15, 2021, the Secretary shall solicit applications for funding for eligible projects.
(ii) Additional solicitations
The Secretary shall solicit applications for funding for eligible projects on a recurring basis after the first round of applications is received under clause (i) until all amounts appropriated to carry out this subsection are expended.
(B) Selection of projects for the development of regional direct air capture hubs
Not later than 3 years after the date of the deadline for the submission of proposals under subparagraph (A)(i), the Secretary shall select eligible projects described in paragraph (2)(A).
(C) Criteria
The Secretary shall select eligible projects under subparagraph (B) using the following criteria:
(i) Carbon intensity of local industry
To the maximum extent practicable, each eligible project shall be located in a region with—
(I) existing carbon-intensive fuel production or industrial capacity; or
(II) carbon-intensive fuel production or industrial capacity that has retired or closed in the preceding 10 years.
(ii) Geographic diversity
To the maximum extent practicable, eligible projects shall contribute to the development of regional direct air capture hubs located in different regions of the United States.
(iii) Carbon potential
To the maximum extent practicable, eligible projects shall contribute to the development of regional direct air capture hubs located in regions with high potential for carbon sequestration or utilization.
(iv) Hubs in fossil-producing regions
To the maximum extent practicable, eligible projects shall contribute to the development of at least 2 regional direct air capture hubs located in economically distressed communities in the regions of the United States with high levels of coal, oil, or natural gas resources.
(v) Scalability
The Secretary shall give priority to eligible projects that, as compared to other eligible projects, will contribute to the development of regional direct air capture hubs with larger initial capacity, greater potential for expansion, and lower levelized cost per ton of carbon dioxide removed from the atmosphere.
(vi) Employment
The Secretary shall give priority to eligible projects that are likely to create opportunities for skilled training and long-term employment to the greatest number of residents of the region.
(vii) Additional criteria
The Secretary may take into consideration other criteria that, in the judgment of the Secretary, are necessary or appropriate to carry out this subsection.
(D) Coordination
To the maximum extent practicable, in carrying out the program under this subsection, the Secretary shall take into account and coordinate with activities of the carbon capture technology program established under
(E) Funding of eligible projects
The Secretary may make grants to, or enter into cooperative agreements or contracts with, each eligible project selected under subparagraph (B) to accelerate commercialization of, and demonstrate the removal, processing, transport, sequestration, and utilization of, carbon dioxide captured from the atmosphere.
(4) Authorization of appropriations
There is authorized to be appropriated to the Secretary to carry out this subsection $3,500,000,000 for the period of fiscal years 2022 through 2026, to remain available until expended.
(k) Authorization of appropriations
There are authorized to be appropriated to the Secretary to carry out this section—
(1) $175,000,000 for fiscal year 2021, of which—
(A) $15,000,000 shall be used to carry out subsection (e)(2)(A), to remain available until expended; and
(B) $100,000,000 shall be used to carry out subsection (e)(2)(B), to remain available until expended;
(2) $63,500,000 for fiscal year 2022;
(3) $66,150,000 for fiscal year 2023;
(4) $69,458,000 for fiscal year 2024; and
(5) $72,930,000 for fiscal year 2025.
(
Editorial Notes
Amendments
2021—Subsecs. (j), (k).
Statutory Notes and Related Subsidiaries
Wage Rate Requirements
For provisions relating to rates of wages to be paid to laborers and mechanics on projects for construction, alteration, or repair work funded under div. D or an amendment by div. D of
Application
Provisions of
§16298e. Carbon dioxide removal task force and report
(a) Definition of carbon dioxide removal
In this section, the term "carbon dioxide removal" means the capture of carbon dioxide directly from ambient air or, in dissolved form, from seawater, combined with the sequestration of that carbon dioxide, including through—
(1) direct air capture and sequestration;
(2) enhanced carbon mineralization;
(3) bioenergy with carbon capture and sequestration;
(4) forest restoration;
(5) soil carbon management; and
(6) direct ocean capture.
(b) Report
Not later than 180 days after December 27, 2020, the Secretary of Energy (in this section referred to as the "Secretary"), in consultation with the heads of any other relevant Federal agencies, shall prepare a report that—
(1) estimates the magnitude of excess carbon dioxide in the atmosphere that will need to be removed by 2050 to achieve net-zero emissions and stabilize the climate;
(2) inventories current and emerging approaches of carbon dioxide removal and evaluates the advantages and disadvantages of each of the approaches; and
(3) identifies recommendations for legislation, funding, rules, revisions to rules, financing mechanisms, or other policy tools that the Federal Government can use to sufficiently advance the deployment of carbon dioxide removal projects in order to meet, in the aggregate, the magnitude of needed removals estimated under paragraph (1), including policy tools, such as—
(A) grants;
(B) loans or loan guarantees;
(C) public-private partnerships;
(D) direct procurement;
(E) incentives, including subsidized Federal financing mechanisms available to project developers;
(F) advance market commitments;
(G) regulations; and
(H) any other policy mechanism determined by the Secretary to be beneficial for advancing carbon dioxide removal methods and the deployment of carbon dioxide removal projects.
(c) Submission; publication
The Secretary shall—
(1) submit the report prepared under subsection (b) to the Committee on Energy and Natural Resources of the Senate and the Committees on Energy and Commerce and Science, Space, and Technology of the House of Representatives; and
(2) as soon as practicable after completion of the report, make the report publicly available.
(d) Evaluation; revision
(1) In general
Not later than 2 years after the date on which the Secretary publishes the report under subsection (c)(2), and every 2 years thereafter, the Secretary shall evaluate the findings and recommendations of the report, or the most recent updated report submitted under paragraph (2)(B), as applicable, taking into consideration any issues and recommendations identified by the task force established under subsection (e)(1).
(2) Revision
After completing each evaluation under paragraph (1), the Secretary shall—
(A) revise the report as necessary; and
(B) if the Secretary revises the report under subparagraph (A), submit and publish the updated report in accordance with subsection (c).
(e) Task force
(1) Establishment and duties
Not later than 60 days after December 27, 2020, the Secretary shall establish a task force—
(A) to identify barriers to advancement of carbon dioxide removal methods and the deployment of carbon dioxide removal projects;
(B) to inventory existing or potential Federal legislation, rules, revisions to rules, financing mechanisms, or other policy tools that are capable of advancing carbon dioxide removal methods and the deployment of carbon dioxide removal projects;
(C) to assist in preparing the report described in subsection (b) and any updates to the report under subsection (d); and
(D) to advise the Secretary on matters pertaining to carbon dioxide removal.
(2) Members and selection
The Secretary shall—
(A) develop criteria for the selection of members to the task force established under paragraph (1); and
(B) select members for the task force in accordance with the criteria developed under subparagraph (A).
(3) Meetings
The task force shall meet not less frequently than once each year.
(4) Evaluation
Not later than 7 years after December 27, 2020, the Secretary shall—
(A) reevaluate the need for the task force established under paragraph (1); and
(B) submit to Congress a recommendation as to whether the task force should continue.
(
Editorial Notes
Codification
Section was enacted as part of the Energy Act of 2020, and not as part of the Energy Policy Act of 2005 which comprises this chapter.