I 

117TH CONGRESS 

1ST SESSION H. R. 1992 

To require the Secretary of Energy to establish programs for carbon dioxide 

capture, transport, utilization, and storage, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 17, 2021 

Mr. VEASEY (for himself, Mr. MCKINLEY, Mrs. BUSTOS, Mr. STAUBER, Ms. 

SEWELL, and Ms. CHENEY) introduced the following bill; which was referred to the Committee on Science, Space, and Technology, and in addition to the Committees on Energy and Commerce, and Transportation 

and Infrastructure, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To require the Secretary of Energy to establish programs 

for carbon dioxide capture, transport, utilization, and 

storage, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Storing CO2 and Lowering Emissions Act’’ or the 

6 ‘‘SCALE Act’’. 


kjohnson on DSK79L0C42PROD with BILLS
2 

•HR 1992 IH

1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

TITLE I—UTILIZATION OF CARBON OXIDES 

Sec. 101. Carbon utilization program. 

TITLE II—TRANSPORTATION OF CAPTURED CARBON 

Sec. 201. Carbon capture technology program. 

Sec. 202. Carbon dioxide transportation infrastructure finance and innovation. 

TITLE III—GEOLOGIC STORAGE OF CAPTURED CARBON 

Sec. 301. Carbon storage validation and testing. 

Sec. 302. Secure geologic storage permitting. 

3 SEC. 2. FINDINGS. 

4 Congress finds that— 

5 (1) the industrial sector is integral to the econ6 omy of the United States— 

7 (A) providing millions of jobs and essential 

8 products; and 

9 (B) demonstrating global leadership in 

10 manufacturing and innovation; 

11 (2) carbon capture and storage technologies are 

12 necessary for reducing hard-to-abate emissions from 

13 the industrial sector, which emits nearly 25 percent 

14 of carbon dioxide emissions in the United States; 

15 (3) carbon removal and storage technologies, in16 cluding direct air capture, must be deployed at 

17 large-scale in the coming decades to remove carbon 

18 dioxide directly from the atmosphere; 


kjohnson on DSK79L0C42PROD with BILLS
3 

•HR 1992 IH

1 (4) large-scale deployment of carbon capture, 

2 removal, utilization, transport, and storage— 

3 (A) is critical for achieving mid-century cli4 mate goals; and 

5 (B) will drive regional economic develop6 ment, technological innovation, and high-wage 

7 employment; 

8 (5) carbon capture, removal, and utilization 

9 technologies require a backbone system of shared 

10 carbon dioxide transport and storage infrastructure 

11 to enable large-scale deployment, realize economies 

12 of scale, and create an interconnected carbon man13 agement market; 

14 (6) carbon dioxide transport infrastructure and 

15 permanent geological storage are proven and safe 

16 technologies with existing Federal and State regu17 latory frameworks; 

18 (7) carbon dioxide transport and storage infra19 structure share similar barriers to deployment pre20 viously faced by other types of critical national infra21 structure, such as high capital costs and chicken22 and-egg challenges, that require Federal and State 

23 support, in combination with private investment, to 

24 be overcome; and 


kjohnson on DSK79L0C42PROD with BILLS
4 

•HR 1992 IH

1 (8) each State should take into consideration, 

2 with respect to new carbon dioxide transportation in3 frastructure— 

4 (A) qualifying the infrastructure as pollu5 tion control devices under applicable laws (in6 cluding regulations) of the State; and 

7 (B) establishing a waiver of ad valorem 

8 and property taxes for the infrastructure for a 

9 period of not less than 10 years. 

10 TITLE I—UTILIZATION OF 

11 CARBON OXIDES 

12 SEC. 101. CARBON UTILIZATION PROGRAM. 

13 Section 969A of the Energy Policy Act of 2005 (42 

14 U.S.C. 16298a) is amended— 

15 (1) in subsection (a)— 

16 (A) by redesignating paragraphs (3) and 

17 (4) as paragraphs (4) and (5), respectively; and 

18 (B) by inserting after paragraph (2) the 

19 following: 

20 ‘‘(3) to develop or obtain, in coordination with 

21 other applicable Federal agencies and standard-set22 ting organizations, standards and certifications, as 

23 appropriate, to facilitate the commercialization of 

24 the products and technologies described in para25 graph (2);’’; 


kjohnson on DSK79L0C42PROD with BILLS
5 

•HR 1992 IH

1 (2) in subsection (b)— 

2 (A) by redesignating paragraph (2) as 

3 paragraph (3); 

4 (B) by inserting after paragraph (1) the 

5 following: 

6 ‘‘(2) GRANT PROGRAM.— 

7 ‘‘(A) IN GENERAL.—Not later than 1 year 

8 after the date of enactment of the Storing CO2 

9 and Lowering Emissions Act, the Secretary 

10 shall establish a program to provide grants to 

11 eligible entities to use in accordance with sub12 paragraph (D). 

13 ‘‘(B) ELIGIBLE ENTITIES.—To be eligible 

14 to receive a grant under this paragraph, an en15 tity shall be— 

16 ‘‘(i) a State; 

17 ‘‘(ii) a unit of local government; or 

18 ‘‘(iii) a public utility or agency. 

19 ‘‘(C) APPLICATIONS.—Eligible entities de20 siring a grant under this paragraph shall sub21 mit to the Secretary an application at such 

22 time, in such manner, and containing such in23 formation as the Secretary determines to be ap24 propriate. 


kjohnson on DSK79L0C42PROD with BILLS
6 

•HR 1992 IH

1 ‘‘(D) USE OF FUNDS.—An eligible entity 

2 shall use a grant received under this paragraph 

3 to procure and use commercial or industrial 

4 products that— 

5 ‘‘(i) use or are derived from anthropo6 genic carbon oxides; and 

7 ‘‘(ii) demonstrate significant net re8 ductions in lifecycle greenhouse gas emis9 sions compared to incumbent technologies, 

10 processes, and products.’’; and 

11 (C) in paragraph (3) (as so redesignated), 

12 by striking ‘‘paragraph (1)’’ and inserting ‘‘this 

13 subsection’’; and 

14 (3) in subsection (d), by striking paragraphs 

15 (1) through (5) and inserting the following: 

16 ‘‘(1) $64,000,000 for fiscal year 2021; 

17 ‘‘(2) $65,250,000 for fiscal year 2022; 

18 ‘‘(3) $66,562,500 for fiscal year 2023; 

19 ‘‘(4) $67,940,625 for fiscal year 2024; and 

20 ‘‘(5) $69,387,656 for fiscal year 2025.’’. 

21 TITLE II—TRANSPORTATION OF 

22 CAPTURED CARBON 

23 SEC. 201. CARBON CAPTURE TECHNOLOGY PROGRAM. 

24 Section 962 of the Energy Policy Act of 2005 (42 

25 U.S.C. 16292) is amended— 


kjohnson on DSK79L0C42PROD with BILLS
7 

•HR 1992 IH

1 (1) in subsection (b)(2)— 

2 (A) in subparagraph (C), by striking 

3 ‘‘and’’ at the end; 

4 (B) in subparagraph (D), by striking ‘‘pro5 gram.’’ and inserting ‘‘program for carbon cap6 ture technologies; and’’; and 

7 (C) by adding at the end the following: 

8 ‘‘(E) a front-end engineering and design 

9 program for carbon dioxide transport infra10 structure necessary to enable deployment of 

11 carbon capture, utilization, and storage tech12 nologies.’’; and 

13 (2) in subsection (d)(1)— 

14 (A) in subparagraph (C)(ii), by striking 

15 ‘‘and’’ at the end; 

16 (B) in subparagraph (D), by striking the 

17 period at the end and inserting ‘‘; and’’; and 

18 (C) by adding at the end the following: 

19 ‘‘(E) for activities under the front-end en20 gineering and design program described in sub21 section (b)(2)(E), $20,000,000 for each of fis22 cal years 2022 through 2025.’’. 


kjohnson on DSK79L0C42PROD with BILLS
8 

•HR 1992 IH

1 SEC. 202. CARBON DIOXIDE TRANSPORTATION INFRA2 STRUCTURE FINANCE AND INNOVATION. 

3 (a) IN GENERAL.—Title IX of the Energy Policy Act 

4 of 2005 (42 U.S.C. 16181 et seq.) is amended by adding 

5 at the end the following: 

6 ‘‘Subtitle J—Carbon Dioxide Trans7 portation Infrastructure Fi8 nance and Innovation 

9 ‘‘SEC. 999A. DEFINITIONS. 

10 ‘‘In this subtitle: 

11 ‘‘(1) CIFIA PROGRAM.—The term ‘CIFIA pro12 gram’ means the carbon dioxide transportation in13 frastructure finance and innovation program estab14 lished under section 999B(a). 

15 ‘‘(2) COMMON CARRIER.—The term ‘common 

16 carrier’ means a transportation infrastructure oper17 ator or owner that— 

18 ‘‘(A) publishes a publicly available tariff 

19 containing the just and reasonable rates, terms, 

20 and conditions of nondiscriminatory service; 

21 and 

22 ‘‘(B) holds itself out to provide transpor23 tation services to the public for a fee. 

24 ‘‘(3) CONTINGENT COMMITMENT.—The term 

25 ‘contingent commitment’ means a commitment to 


kjohnson on DSK79L0C42PROD with BILLS
9 

•HR 1992 IH

1 obligate funds from future available budget author2 ity that is— 

3 ‘‘(A) contingent on those funds being made 

4 available in law at a future date; and 

5 ‘‘(B) not an obligation of the Federal Gov6 ernment. 

7 ‘‘(4) ELIGIBLE PROJECT COSTS.—The term ‘eli8 gible project costs’ means amounts substantially all 

9 of which are paid by, or for the account of, an obli10 gor in connection with a project, including— 

11 ‘‘(A) the cost of— 

12 ‘‘(i) development-phase activities, in13 cluding planning, feasibility analysis, rev14 enue forecasting, environmental review, 

15 permitting, preliminary engineering and 

16 design work, and other preconstruction ac17 tivities; 

18 ‘‘(ii) construction, reconstruction, re19 habilitation, replacement, and acquisition 

20 of real property (including land relating to 

21 the project and improvements to land), en22 vironmental mitigation, construction con23 tingencies, and acquisition and installation 

24 of equipment (including labor); and 


kjohnson on DSK79L0C42PROD with BILLS
10 

•HR 1992 IH

1 ‘‘(iii) capitalized interest necessary to 

2 meet market requirements, reasonably re3 quired reserve funds, capital issuance ex4 penses, and other carrying costs during 

5 construction; and 

6 ‘‘(B) transaction costs associated with fi7 nancing the project, including— 

8 ‘‘(i) the cost of legal counsel and tech9 nical consultants; and 

10 ‘‘(ii) any subsidy amount paid in ac11 cordance with section 999B(c)(3)(B)(ii) or 

12 section 999C(b)(6)(B)(ii). 

13 ‘‘(5) FEDERAL CREDIT INSTRUMENT.—The 

14 term ‘Federal credit instrument’ means a secured 

15 loan or loan guarantee authorized to be provided 

16 under the CIFIA program with respect to a project. 

17 ‘‘(6) LENDER.—The term ‘lender’ means any 

18 non-Federal qualified institutional buyer (as defined 

19 in section 230.144A(a) of title 17, Code of Federal 

20 Regulations (or a successor regulation), commonly 

21 known as Rule 144A(a) of the Securities and Ex22 change Commission and issued under the Securities 

23 Act of 1933 (15 U.S.C. 77a et seq.)), including— 

24 ‘‘(A) a qualified retirement plan (as de25 fined in section 4974(c) of the Internal Revenue 


kjohnson on DSK79L0C42PROD with BILLS
11 

•HR 1992 IH

1 Code of 1986) that is a qualified institutional 

2 buyer; and 

3 ‘‘(B) a governmental plan (as defined in 

4 section 414(d) of the Internal Revenue Code of 

5 1986) that is a qualified institutional buyer. 

6 ‘‘(7) LETTER OF INTEREST.—The term ‘letter 

7 of interest’ means a letter submitted by a potential 

8 applicant prior to an application for credit assistance 

9 in a format prescribed by the Secretary on the 

10 website of the CIFIA program that— 

11 ‘‘(A) describes the project and the location, 

12 purpose, and cost of the project; 

13 ‘‘(B) outlines the proposed financial plan, 

14 including the requested credit and grant assist15 ance and the proposed obligor; 

16 ‘‘(C) provides a status of environmental re17 view; and 

18 ‘‘(D) provides information regarding satis19 faction of other eligibility requirements of the 

20 CIFIA program. 

21 ‘‘(8) LOAN GUARANTEE.—The term ‘loan guar22 antee’ means any guarantee or other pledge by the 

23 Secretary to pay all or part of the principal of, and 

24 interest on, a loan or other debt obligation issued by 

25 an obligor and funded by a lender. 


kjohnson on DSK79L0C42PROD with BILLS
12 

•HR 1992 IH

1 ‘‘(9) MASTER CREDIT AGREEMENT.—The term 

2 ‘master credit agreement’ means a conditional agree3 ment that— 

4 ‘‘(A) is for the purpose of extending credit 

5 assistance for— 

6 ‘‘(i) a project of high priority under 

7 section 999B(c)(3)(A); or 

8 ‘‘(ii) a project covered under section 

9 999B(c)(3)(B); 

10 ‘‘(B) does not provide for a current obliga11 tion of Federal funds; and 

12 ‘‘(C) would— 

13 ‘‘(i) make a contingent commitment of 

14 a Federal credit instrument or grant at a 

15 future date, subject to— 

16 ‘‘(I) the availability of future 

17 funds being made available to carry 

18 out the CIFIA program; and 

19 ‘‘(II) the satisfaction of all condi20 tions for the provision of credit assist21 ance under the CIFIA program, in22 cluding section 999C(b); 

23 ‘‘(ii) establish the maximum amounts 

24 and general terms and conditions of the 

25 Federal credit instruments or grants; 


kjohnson on DSK79L0C42PROD with BILLS
13 

•HR 1992 IH

1 ‘‘(iii) identify the 1 or more revenue 

2 sources that will secure the repayment of 

3 the Federal credit instruments; 

4 ‘‘(iv) provide for the obligation of 

5 funds for the Federal credit instruments or 

6 grants after all requirements have been 

7 met for the projects subject to the agree8 ment, including— 

9 ‘‘(I) compliance with all applica10 ble requirements specified under the 

11 CIFIA program, including sections 

12 999B(d) and 999C(b)(1); and 

13 ‘‘(II) the availability of funds to 

14 carry out the CIFIA program; and 

15 ‘‘(v) require that contingent commit16 ments shall result in a financial close and 

17 obligation of credit or grant assistance by 

18 not later than 4 years after the date of 

19 entry into the agreement or release of the 

20 commitment, as applicable, unless other21 wise extended by the Secretary. 

22 ‘‘(10) OBLIGOR.—The term ‘obligor’ means a 

23 corporation, partnership, joint venture, trust, gov24 ernmental entity, agency, or instrumentality, or 

25 other entity that is primarily liable for payment of 


kjohnson on DSK79L0C42PROD with BILLS
14 

•HR 1992 IH

1 the principal of, or interest on, a Federal credit in2 strument. 

3 ‘‘(11) PRODUCED IN THE UNITED STATES.— 

4 The term ‘produced in the United States’, with re5 spect to iron and steel, means that all manufac6 turing processes for the iron and steel, including the 

7 application of any coating, occurs within the United 

8 States. 

9 ‘‘(12) PROJECT.—The term ‘project’ means a 

10 project for common carrier carbon dioxide transpor11 tation infrastructure or associated equipment, in12 cluding pipeline, shipping, rail, or other transpor13 tation infrastructure and associated equipment, that 

14 will transport or handle carbon dioxide captured 

15 from anthropogenic sources or ambient air, as the 

16 Secretary determines to be appropriate. 

17 ‘‘(13) PROJECT OBLIGATION.—The term 

18 ‘project obligation’ means any note, bond, debenture, 

19 or other debt obligation issued by an obligor in con20 nection with the financing of a project, other than 

21 a Federal credit instrument. 

22 ‘‘(14) SECURED LOAN.—The term ‘secured 

23 loan’ means a direct loan or other debt obligation 

24 issued by an obligor and funded by the Secretary in 


kjohnson on DSK79L0C42PROD with BILLS
15 

•HR 1992 IH

1 connection with the financing of a project under sec2 tion 999C. 

3 ‘‘(15) SUBSIDY AMOUNT.—The term ‘subsidy 

4 amount’ means the amount of budget authority suf5 ficient to cover the estimated long-term cost to the 

6 Federal Government of a Federal credit instru7 ment— 

8 ‘‘(A) calculated on a net present value 

9 basis; and 

10 ‘‘(B) excluding administrative costs and 

11 any incidental effects on governmental receipts 

12 or outlays in accordance with the Federal Cred13 it Reform Act of 1990 (2 U.S.C. 661 et seq.). 

14 ‘‘(16) SUBSTANTIAL COMPLETION.—The term 

15 ‘substantial completion’, with respect to a project, 

16 means the date— 

17 ‘‘(A) on which the project commences 

18 transportation of carbon dioxide; or 

19 ‘‘(B) of a comparable event to the event 

20 described in subparagraph (A), as determined 

21 by the Secretary and specified in the project 

22 credit agreement. 


kjohnson on DSK79L0C42PROD with BILLS
16 

•HR 1992 IH

1 ‘‘SEC. 999B. DETERMINATION OF ELIGIBILITY AND 

2 PROJECT SELECTION. 

3 ‘‘(a) ESTABLISHMENT OF PROGRAM.—The Secretary 

4 shall establish and carry out a carbon dioxide transpor5 tation infrastructure finance and innovation program, 

6 under which the Secretary shall provide for eligible 

7 projects in accordance with this subtitle— 

8 ‘‘(1) a Federal credit instrument under section 

9 999C; 

10 ‘‘(2) a grant under section 999D; or 

11 ‘‘(3) both a Federal credit instrument and a 

12 grant. 

13 ‘‘(b) ELIGIBILITY.— 

14 ‘‘(1) IN GENERAL.—A project shall be eligible 

15 to receive a Federal credit instrument or a grant 

16 under the CIFIA program if— 

17 ‘‘(A) the entity proposing to carry out the 

18 project submits a letter of interest prior to sub19 mission of an application under paragraph (3) 

20 for the project; and 

21 ‘‘(B) the project meets the criteria de22 scribed in this subsection. 

23 ‘‘(2) CREDITWORTHINESS.— 

24 ‘‘(A) IN GENERAL.—Each project and obli25 gor that receives a Federal credit instrument or 

26 a grant under the CIFIA program shall be 


kjohnson on DSK79L0C42PROD with BILLS
17 

•HR 1992 IH

1 creditworthy, such that there exists a reason2 able prospect of repayment of the principal and 

3 interest on the Federal credit instrument, as 

4 determined by the Secretary under subpara5 graph (B). 

6 ‘‘(B) REASONABLE PROSPECT OF REPAY7 MENT.—The Secretary shall base a determina8 tion of whether there is a reasonable prospect 

9 of repayment under subparagraph (A) on a 

10 comprehensive evaluation of whether the obligor 

11 has a reasonable prospect of repaying the Fed12 eral credit instrument for the eligible project, 

13 including evaluation of— 

14 ‘‘(i) the strength of the contractual 

15 terms of an eligible project (if available for 

16 the applicable market segment); 

17 ‘‘(ii) the forecast of noncontractual 

18 cash flows supported by market projections 

19 from reputable sources, as determined by 

20 the Secretary, and cash sweeps or other 

21 structural enhancements; 

22 ‘‘(iii) the projected financial strength 

23 of the obligor— 

24 ‘‘(I) at the time of loan close; 

25 and 


kjohnson on DSK79L0C42PROD with BILLS
18 

•HR 1992 IH

1 ‘‘(II) throughout the loan term, 

2 including after the project is com3 pleted; 

4 ‘‘(iv) the financial strength of the in5 vestors and strategic partners of the obli6 gor, if applicable; and 

7 ‘‘(v) other financial metrics and anal8 yses that are relied on by the private lend9 ing community and nationally recognized 

10 credit rating agencies, as determined ap11 propriate by the Secretary. 

12 ‘‘(3) APPLICATIONS.—To be eligible for assist13 ance under the CIFIA program, an obligor shall 

14 submit to the Secretary a project application at such 

15 time, in such manner, and containing such informa16 tion as the Secretary determines to be appropriate. 

17 ‘‘(4) ELIGIBLE PROJECT COSTS.—A project 

18 under the CIFIA program shall have eligible project 

19 costs that are reasonably anticipated to equal or ex20 ceed $100,000,000. 

21 ‘‘(5) REVENUE SOURCES.—The applicable Fed22 eral credit instrument shall be repayable, in whole or 

23 in part, from— 

24 ‘‘(A) user fees; 


kjohnson on DSK79L0C42PROD with BILLS
19 

•HR 1992 IH

1 ‘‘(B) payments owing to the obligor under 

2 a public-private partnership; or 

3 ‘‘(C) other revenue sources that also secure 

4 or fund the project obligations. 

5 ‘‘(6) OBLIGOR WILL BE IDENTIFIED LATER.— 

6 A State, local government, agency, or instrumen7 tality of a State or local government, or a public au8 thority, may submit to the Secretary an application 

9 under paragraph (3), under which a private party to 

10 a public-private partnership will be— 

11 ‘‘(A) the obligor; and 

12 ‘‘(B) identified at a later date through 

13 completion of a procurement and selection of 

14 the private party. 

15 ‘‘(7) BENEFICIAL EFFECTS.—The Secretary 

16 shall determine that financial assistance for each 

17 project under the CIFIA program will— 

18 ‘‘(A) attract public or private investment 

19 for the project; 

20 ‘‘(B) enable the project to proceed at an 

21 earlier date than the project would otherwise be 

22 able to proceed or reduce the lifecycle costs (in23 cluding debt service costs) of the project; or 


kjohnson on DSK79L0C42PROD with BILLS
20 

•HR 1992 IH

1 ‘‘(C) enable the transportation of carbon 

2 dioxide captured from anthropogenic sources or 

3 ambient air. 

4 ‘‘(8) PROJECT READINESS.—To be eligible for 

5 assistance under the CIFIA program, the applicant 

6 shall demonstrate a reasonable expectation that the 

7 contracting process for construction of the project 

8 can commence by not later than 90 days after the 

9 date on which a Federal credit instrument or grant 

10 is obligated for the project under the CIFIA pro11 gram. 

12 ‘‘(c) SELECTION AMONG ELIGIBLE PROJECTS.— 

13 ‘‘(1) ESTABLISHMENT OF APPLICATION PROC14 ESS.—The Secretary shall establish an application 

15 process under which projects that are eligible to re16 ceive assistance under subsection (b) may— 

17 ‘‘(A) receive credit assistance on terms ac18 ceptable to the Secretary, if adequate funds are 

19 available (including any funds provided on be20 half of an eligible project under paragraph 

21 (3)(B)(ii)) to cover the subsidy amount associ22 ated with the Federal credit instrument; and 

23 ‘‘(B) receive grants under section 999D 

24 if— 


kjohnson on DSK79L0C42PROD with BILLS
21 

•HR 1992 IH

1 ‘‘(i) adequate funds are available to 

2 cover the amount of the grant; and 

3 ‘‘(ii) the Secretary determines that 

4 the project is eligible under subsection (b) 

5 of that section. 

6 ‘‘(2) PRIORITY.—In selecting projects to receive 

7 credit assistance under subsection (b), the Secretary 

8 shall give priority to projects that— 

9 ‘‘(A) are large-capacity, common carrier 

10 infrastructure; 

11 ‘‘(B) have demonstrated demand for use of 

12 the infrastructure by associated projects that 

13 capture carbon dioxide from anthropogenic 

14 sources or ambient air; 

15 ‘‘(C) enable geographical diversity in asso16 ciated projects that capture carbon dioxide from 

17 anthropogenic sources or ambient air, with the 

18 goal of enabling projects in all major carbon di19 oxide-emitting regions of the United States; and 

20 ‘‘(D) are sited within, or adjacent to, exist21 ing pipeline or other linear infrastructure cor22 ridors, in a manner that minimizes environ23 mental disturbance and other siting concerns. 

24 ‘‘(3) MASTER CREDIT AGREEMENTS.— 


kjohnson on DSK79L0C42PROD with BILLS
22 

•HR 1992 IH

1 ‘‘(A) PRIORITY PROJECTS.—The Secretary 

2 may enter into a master credit agreement for a 

3 project that the Secretary determines— 

4 ‘‘(i) will likely be eligible for credit as5 sistance under subsection (b), on obtain6 ing— 

7 ‘‘(I) additional commitments 

8 from associated carbon capture 

9 projects to use the project; or 

10 ‘‘(II) all necessary permits and 

11 approvals; and 

12 ‘‘(ii) is a project of high priority, as 

13 determined in accordance with the criteria 

14 described in paragraph (2). 

15 ‘‘(B) ADEQUATE FUNDING NOT AVAIL16 ABLE.—If the Secretary fully obligates funding 

17 to eligible projects for a fiscal year and ade18 quate funding is not available to fund a Federal 

19 credit instrument, a project sponsor (including 

20 a unit of State or local government) of an eligi21 ble project may elect— 

22 ‘‘(i)(I) to enter into a master credit 

23 agreement in lieu of the Federal credit in24 strument; and 


kjohnson on DSK79L0C42PROD with BILLS
23 

•HR 1992 IH

1 ‘‘(II) to wait to execute a Federal 

2 credit instrument until the fiscal year for 

3 which additional funds are available to re4 ceive credit assistance; or 

5 ‘‘(ii) if the lack of adequate funding is 

6 solely with respect to amounts available for 

7 the subsidy amount, to pay the subsidy 

8 amount to fund the Federal credit instru9 ment. 

10 ‘‘(d) FEDERAL REQUIREMENTS.— 

11 ‘‘(1) IN GENERAL.—Nothing in this subtitle su12 persedes the applicability of any other requirement 

13 under Federal law (including regulations). 

14 ‘‘(2) NEPA.—Federal credit assistance may 

15 only be provided under this subtitle for a project 

16 that has received an environmental categorical exclu17 sion, a finding of no significant impact, or a record 

18 of decision under the National Environmental Policy 

19 Act of 1969 (42 U.S.C. 4321 et seq.). 

20 ‘‘(e) USE OF AMERICAN IRON, STEEL, AND MANU21 FACTURED GOODS.— 

22 ‘‘(1) IN GENERAL.—Except as provided in para23 graph (2), no Federal credit instrument or grant 

24 provided under the CIFIA program shall be made 

25 available for a project unless all iron, steel, and 


kjohnson on DSK79L0C42PROD with BILLS
24 

•HR 1992 IH

1 manufactured goods used in the project are pro2 duced in the United States. 

3 ‘‘(2) EXCEPTIONS.—Paragraph (1) shall not 

4 apply in any case or category of cases with respect 

5 to which the Secretary determines that— 

6 ‘‘(A) the application would be inconsistent 

7 with the public interest; 

8 ‘‘(B) iron, steel, or a relevant manufac9 tured good is not produced in the United States 

10 in sufficient and reasonably available quantity, 

11 or of a satisfactory quality; or 

12 ‘‘(C) the inclusion of iron, steel, or a man13 ufactured good produced in the United States 

14 will increase the cost of the overall project by 

15 more than 25 percent. 

16 ‘‘(3) WAIVERS.—If the Secretary receives a re17 quest for a waiver under this subsection, the Sec18 retary shall— 

19 ‘‘(A) make available to the public a copy of 

20 the request, together with any information 

21 available to the Secretary concerning the re22 quest— 

23 ‘‘(i) on an informal basis; and 


kjohnson on DSK79L0C42PROD with BILLS
25 

•HR 1992 IH

1 ‘‘(ii) by electronic means, including on 

2 the official public website of the Depart3 ment; 

4 ‘‘(B) allow for informal public comment re5 lating to the request for not fewer than 15 days 

6 before making a determination with respect to 

7 the request; and 

8 ‘‘(C) approve or disapprove the request by 

9 not later than the date that is 120 days after 

10 the date of receipt of the request. 

11 ‘‘(4) APPLICABILITY.—This subsection shall be 

12 applied in accordance with any applicable obligations 

13 of the United States under international agreements. 

14 ‘‘(f) PREVAILING RATE OF WAGE.— 

15 ‘‘(1) IN GENERAL.—The Secretary shall ensure 

16 that each laborer and mechanic employed by a con17 tractor or subcontractor for a project financed, in 

18 whole or in part, by a Federal credit instrument or 

19 grant provided under the CIFIA program shall be 

20 paid wages at rates not less than those prevailing on 

21 the same type of work on similar construction 

22 projects in the applicable locality, as determined by 

23 the Secretary of Labor under subchapter IV of chap24 ter 31 of part A of subtitle II of title 40, United 


kjohnson on DSK79L0C42PROD with BILLS
26 

•HR 1992 IH

1 States Code (commonly referred to as the ‘Davis2 Bacon Act’). 

3 ‘‘(2) AUTHORITY OF SECRETARY OF LABOR.— 

4 With respect to the labor standards described in 

5 paragraph (1), the Secretary of Labor shall have the 

6 authority and functions described in Reorganization 

7 Plan Numbered 14 of 1950 (64 Stat. 1267; 5 

8 U.S.C. App.) and section 3145 of title 40, United 

9 States Code. 

10 ‘‘(g) APPLICATION PROCESSING PROCEDURES.— 

11 ‘‘(1) NOTICE OF COMPLETE APPLICATION.— 

12 Not later than 30 days after the date of receipt of 

13 an application under this section, the Secretary shall 

14 provide to the applicant a written notice describing 

15 whether— 

16 ‘‘(A) the application is complete; or 

17 ‘‘(B) additional information or materials 

18 are needed to complete the application. 

19 ‘‘(2) APPROVAL OR DENIAL OF APPLICATION.— 

20 Not later than 60 days after the date of issuance of 

21 a written notice under paragraph (1), the Secretary 

22 shall provide to the applicant a written notice in23 forming the applicant whether the Secretary has ap24 proved or disapproved the application. 


kjohnson on DSK79L0C42PROD with BILLS
27 

•HR 1992 IH

1 ‘‘(h) DEVELOPMENT-PHASE ACTIVITIES.—Any Fed2 eral credit instrument provided under the CIFIA program 

3 may be used to finance up to 100 percent of the cost of 

4 development-phase activities, as described in section 

5 999A(4)(A). 

6 ‘‘SEC. 999C. SECURED LOANS. 

7 ‘‘(a) AGREEMENTS.— 

8 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

9 the Secretary may enter into agreements with 1 or 

10 more obligors to make secured loans, the proceeds of 

11 which shall be used— 

12 ‘‘(A) to finance eligible project costs of any 

13 project selected under section 999B; 

14 ‘‘(B) to refinance interim construction fi15 nancing of eligible project costs of any project 

16 selected under section 999B; or 

17 ‘‘(C) to refinance long-term project obliga18 tions or Federal credit instruments, if the refi19 nancing provides additional funding capacity for 

20 the completion, enhancement, or expansion of 

21 any project that— 

22 ‘‘(i) is selected under section 999B; or 

23 ‘‘(ii) otherwise meets the requirements 

24 of that section. 


kjohnson on DSK79L0C42PROD with BILLS
28 

•HR 1992 IH

1 ‘‘(2) RISK ASSESSMENT.—Before entering into 

2 an agreement under this subsection, the Secretary, 

3 in consultation with the Director of the Office of 

4 Management and Budget, shall determine an appro5 priate credit subsidy amount for each secured loan, 

6 taking into account all relevant factors, including the 

7 creditworthiness factors under section 999B(b)(2). 

8 ‘‘(b) TERMS AND LIMITATIONS.— 

9 ‘‘(1) IN GENERAL.—A secured loan under this 

10 section with respect to a project shall be on such 

11 terms and conditions and contain such covenants, 

12 representations, warranties, and requirements (in13 cluding requirements for audits) as the Secretary de14 termines to be appropriate. 

15 ‘‘(2) MAXIMUM AMOUNT.—The amount of a se16 cured loan under this section shall not exceed an 

17 amount equal to 80 percent of the reasonably antici18 pated eligible project costs. 

19 ‘‘(3) PAYMENT.—A secured loan under this sec20 tion shall be payable, in whole or in part, from— 

21 ‘‘(A) user fees; 

22 ‘‘(B) payments owing to the obligor under 

23 a public-private partnership; or 

24 ‘‘(C) other revenue sources that also secure 

25 or fund the project obligations. 


kjohnson on DSK79L0C42PROD with BILLS
29 

•HR 1992 IH

1 ‘‘(4) INTEREST RATE.— 

2 ‘‘(A) IN GENERAL.—Except as provided in 

3 subparagraph (B), the interest rate on a se4 cured loan under this section shall be not less 

5 than the yield on United States Treasury secu6 rities of a similar maturity to the maturity of 

7 the secured loan on the date of execution of the 

8 loan agreement. 

9 ‘‘(B) LIMITED BUYDOWNS.— 

10 ‘‘(i) IN GENERAL.—Subject to clause 

11 (ii), the Secretary may lower the interest 

12 rate of a secured loan under this section if 

13 the interest rate has increased between the 

14 period— 

15 ‘‘(I) beginning on, as applica16 ble— 

17 ‘‘(aa) the date on which an 

18 application acceptable to the Sec19 retary is submitted for the appli20 cable project; or 

21 ‘‘(bb) the date on which the 

22 Secretary entered into a master 

23 credit agreement for the applica24 ble project; and 


kjohnson on DSK79L0C42PROD with BILLS
30 

•HR 1992 IH

1 ‘‘(II) ending on the date on 

2 which the Secretary executes the Fed3 eral credit instrument for the applica4 ble project. 

5 ‘‘(ii) LIMITATION.—The interest rate 

6 of a secured loan may not be lowered pur7 suant to clause (i) by more than the lower 

8 of— 

‘‘(I) 11 9 ⁄2 percentage points (150 

10 basis points); and 

11 ‘‘(II) an amount equal to the 

12 amount of the increase in the interest 

13 rate described in that clause. 

14 ‘‘(5) MATURITY DATE.—The final maturity 

15 date of the secured loan shall be the earlier of— 

16 ‘‘(A) the date that is 35 years after the 

17 date of substantial completion of the project; 

18 and 

19 ‘‘(B) if the useful life of the capital asset 

20 being financed is of a lesser period, the date 

21 that is the end of the useful life of the asset. 

22 ‘‘(6) NONSUBORDINATION.— 

23 ‘‘(A) IN GENERAL.—Except as provided in 

24 subparagraph (B), the secured loan shall not be 

25 subordinated to the claims of any holder of 


kjohnson on DSK79L0C42PROD with BILLS
31 

•HR 1992 IH

1 project obligations in the event of bankruptcy, 

2 insolvency, or liquidation of the obligor. 

3 ‘‘(B) PREEXISTING INDENTURE.— 

4 ‘‘(i) IN GENERAL.—The Secretary 

5 shall waive the requirement under subpara6 graph (A) for a public agency borrower 

7 that is financing ongoing capital programs 

8 and has outstanding senior bonds under a 

9 preexisting indenture, if— 

10 ‘‘(I) the secured loan is rated in 

11 the A category or higher; and 

12 ‘‘(II) the secured loan is secured 

13 and payable from pledged revenues 

14 not affected by project performance, 

15 such as a tax-backed revenue pledge 

16 or a system-backed pledge of project 

17 revenues. 

18 ‘‘(ii) LIMITATION.—If the Secretary 

19 waives the nonsubordination requirement 

20 under this subparagraph— 

21 ‘‘(I) the maximum credit subsidy 

22 amount to be paid by the Federal 

23 Government shall be not more than 

24 10 percent of the principal amount of 

25 the secured loan; and 


kjohnson on DSK79L0C42PROD with BILLS
32 

•HR 1992 IH

1 ‘‘(II) the obligor shall be respon2 sible for paying the remainder of the 

3 subsidy amount, if any. 

4 ‘‘(7) FEES.—The Secretary may collect a fee on 

5 or after the date of the financial close of a Federal 

6 credit instrument under this section in an amount 

7 equal to not more than $1,000,000 to cover all or 

8 a portion of the costs to the Federal Government of 

9 providing the Federal credit instrument. 

10 ‘‘(8) MAXIMUM FEDERAL INVOLVEMENT.—The 

11 total Federal assistance provided for a project under 

12 the CIFIA program, including any grant provided 

13 under section 999D, shall not exceed an amount 

14 equal to 80 percent of the eligible project costs. 

15 ‘‘(c) REPAYMENT.— 

16 ‘‘(1) SCHEDULE.—The Secretary shall establish 

17 a repayment schedule for each secured loan under 

18 this section based on— 

19 ‘‘(A) the projected cash flow from project 

20 revenues and other repayment sources; and 

21 ‘‘(B) the useful life of the project. 

22 ‘‘(2) COMMENCEMENT.—Scheduled loan repay23 ments of principal or interest on a secured loan 

24 under this section shall commence not later than 5 


kjohnson on DSK79L0C42PROD with BILLS
33 

•HR 1992 IH

1 years after the date of substantial completion of the 

2 project. 

3 ‘‘(3) DEFERRED PAYMENTS.— 

4 ‘‘(A) IN GENERAL.—If, at any time after 

5 the date of substantial completion of a project, 

6 the project is unable to generate sufficient reve7 nues in excess of reasonable and necessary op8 erating expenses to pay the scheduled loan re9 payments of principal and interest on the se10 cured loan, the Secretary may, subject to sub11 paragraph (C), allow the obligor to add unpaid 

12 principal and interest to the outstanding bal13 ance of the secured loan. 

14 ‘‘(B) INTEREST.—Any payment deferred 

15 under subparagraph (A) shall— 

16 ‘‘(i) continue to accrue interest in ac17 cordance with subsection (b)(4) until fully 

18 repaid; and 

19 ‘‘(ii) be scheduled to be amortized 

20 over the remaining term of the loan. 

21 ‘‘(C) CRITERIA.— 

22 ‘‘(i) IN GENERAL.—Any payment de23 ferral under subparagraph (A) shall be 

24 contingent on the project meeting criteria 

25 established by the Secretary. 


kjohnson on DSK79L0C42PROD with BILLS
34 

•HR 1992 IH

1 ‘‘(ii) REPAYMENT STANDARDS.—The 

2 criteria established pursuant to clause (i) 

3 shall include standards for the reasonable 

4 prospect of repayment. 

5 ‘‘(4) PREPAYMENT.— 

6 ‘‘(A) USE OF EXCESS REVENUES.—Any 

7 excess revenues that remain after satisfying 

8 scheduled debt service requirements on the 

9 project obligations and secured loan and all de10 posit requirements under the terms of any trust 

11 agreement, bond resolution, or similar agree12 ment securing project obligations may be ap13 plied annually to prepay the secured loan, with14 out penalty. 

15 ‘‘(B) USE OF PROCEEDS OF REFI16 NANCING.—A secured loan may be prepaid at 

17 any time without penalty from the proceeds of 

18 refinancing from non-Federal funding sources. 

19 ‘‘(d) SALE OF SECURED LOANS.— 

20 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

21 as soon as practicable after substantial completion of 

22 a project and after notifying the obligor, the Sec23 retary may sell to another entity or reoffer into the 

24 capital markets a secured loan for the project if the 


kjohnson on DSK79L0C42PROD with BILLS
35 

•HR 1992 IH

1 Secretary determines that the sale or reoffering can 

2 be made on favorable terms. 

3 ‘‘(2) CONSENT OF OBLIGOR.—In making a sale 

4 or reoffering under paragraph (1), the Secretary 

5 may not change any original term or condition of the 

6 secured loan without the written consent of the obli7 gor. 

8 ‘‘(e) LOAN GUARANTEES.— 

9 ‘‘(1) IN GENERAL.—The Secretary may provide 

10 a loan guarantee to a lender in lieu of making a se11 cured loan under this section if the Secretary deter12 mines that the budgetary cost of the loan guarantee 

13 is substantially the same as, or less than, that of a 

14 secured loan. 

15 ‘‘(2) TERMS.—The terms of a loan guarantee 

16 under paragraph (1) shall be consistent with the 

17 terms required under this section for a secured loan, 

18 except that the rate on the guaranteed loan and any 

19 prepayment features shall be negotiated between the 

20 obligor and the lender, with the consent of the Sec21 retary. 

22 ‘‘SEC. 999D. FUTURE GROWTH GRANTS. 

23 ‘‘(a) ESTABLISHMENT.—The Secretary may provide 

24 grants to pay a portion of the cost differential, with re25 spect to any projected future increase in demand for carVerDate Sep 11 2014 01:47 May 13, 2021 Jkt 019200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\H1992.IH H1992

kjohnson on DSK79L0C42PROD with BILLS
36 

•HR 1992 IH

1 bon dioxide transportation by an infrastructure project de2 scribed in subsection (b), between— 

3 ‘‘(1) the cost of constructing the infrastructure 

4 asset with the capacity to transport an increased 

5 flow rate of carbon dioxide, as made practicable 

6 under the project; and 

7 ‘‘(2) the cost of constructing the infrastructure 

8 asset with the capacity to transport carbon dioxide 

9 at the flow rate initially required, based on commit10 ments for the use of the asset. 

11 ‘‘(b) ELIGIBILITY.—To be eligible to receive a grant 

12 under this section, an entity shall— 

13 ‘‘(1) be eligible to receive credit assistance 

14 under the CIFIA program; 

15 ‘‘(2) carry out, or propose to carry out, a 

16 project for large-capacity, common carrier infra17 structure with a probable future increase in demand 

18 for carbon dioxide transportation; and 

19 ‘‘(3) submit to the Secretary an application at 

20 such time, in such manner, and containing such in21 formation as the Secretary determines to be appro22 priate. 

23 ‘‘(c) USE OF FUNDS.—A grant provided under this 

24 section may be used only to pay the costs of any additional 

25 flow rate capacity of a carbon dioxide transportation infraVerDate Sep 11 2014 01:47 May 13, 2021 Jkt 019200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\H1992.IH H1992

kjohnson on DSK79L0C42PROD with BILLS
37 

•HR 1992 IH

1 structure asset that the project sponsor demonstrates to 

2 the satisfaction of the Secretary can reasonably be ex3 pected to be used during the 20-year period beginning on 

4 the date of substantial completion of the project described 

5 in subsection (b)(2). 

6 ‘‘(d) MAXIMUM AMOUNT.—The amount of a grant 

7 provided under this section may not exceed an amount 

8 equal to 80 percent of the cost of the additional capacity 

9 described in subsection (a). 

10 ‘‘SEC. 999E. PROGRAM ADMINISTRATION. 

11 ‘‘(a) REQUIREMENT.—The Secretary shall establish 

12 a uniform system to service the Federal credit instruments 

13 provided under the CIFIA program. 

14 ‘‘(b) FEES.—The Secretary may collect fees on or 

15 after the date of the financial close of a Federal credit 

16 instrument provided under the CIFIA program, contin17 gent on authority being provided in appropriations Acts, 

18 at a level that is sufficient to cover— 

19 ‘‘(1) the costs of services of expert firms re20 tained pursuant to subsection (d); and 

21 ‘‘(2) all or a portion of the costs to the Federal 

22 Government of servicing the Federal credit instru23 ments. 

24 ‘‘(c) SERVICER.— 


kjohnson on DSK79L0C42PROD with BILLS
38 

•HR 1992 IH

1 ‘‘(1) IN GENERAL.—The Secretary may appoint 

2 a financial entity to assist the Secretary in servicing 

3 the Federal credit instruments. 

4 ‘‘(2) DUTIES.—A servicer appointed under 

5 paragraph (1) shall act as the agent for the Sec6 retary. 

7 ‘‘(3) FEE.—A servicer appointed under para8 graph (1) shall receive a servicing fee, subject to ap9 proval by the Secretary. 

10 ‘‘(d) ASSISTANCE FROM EXPERT FIRMS.—The Sec11 retary may retain the services of expert firms, including 

12 counsel, in the field of municipal and project finance to 

13 assist in the underwriting and servicing of Federal credit 

14 instruments. 

15 ‘‘(e) EXPEDITED PROCESSING.—The Secretary shall 

16 implement procedures and measures to economize the time 

17 and cost involved in obtaining approval and the issuance 

18 of credit assistance under the CIFIA program. 

19 ‘‘SEC. 999F. STATE AND LOCAL PERMITS. 

20 ‘‘The provision of credit assistance under the CIFIA 

21 program with respect to a project shall not— 

22 ‘‘(1) relieve any recipient of the assistance of 

23 any project obligation to obtain any required State 

24 or local permit or approval with respect to the 

25 project; 


kjohnson on DSK79L0C42PROD with BILLS
39 

•HR 1992 IH

1 ‘‘(2) limit the right of any unit of State or local 

2 government to approve or regulate any rate of re3 turn on private equity invested in the project; or 

4 ‘‘(3) otherwise supersede any State or local law 

5 (including any regulation) applicable to the construc6 tion or operation of the project. 

7 ‘‘SEC. 999G. REGULATIONS. 

8 ‘‘The Secretary may promulgate such regulations as 

9 the Secretary determines to be appropriate to carry out 

10 the CIFIA program. 

11 ‘‘SEC. 999H. FUNDING. 

12 ‘‘(a) FUNDING.— 

13 ‘‘(1) IN GENERAL.—There are authorized to be 

14 appropriated to the Secretary to carry out this sub15 title, to remain available until expended— 

16 ‘‘(A) $600,000,000 for each of fiscal years 

17 2022 and 2023; and 

18 ‘‘(B) $300,000,000 for each of fiscal years 

19 2024 through 2026. 

20 ‘‘(2) SPENDING AND BORROWING AUTHOR21 ITY.—Spending and borrowing authority for a fiscal 

22 year to enter into Federal credit instruments shall 

23 be promptly apportioned to the Secretary on a fiscal24 year basis. 


kjohnson on DSK79L0C42PROD with BILLS
40 

•HR 1992 IH

1 ‘‘(3) REESTIMATES.—If the subsidy amount of 

2 a Federal credit instrument is reestimated, the cost 

3 increase or decrease of the reestimate shall be borne 

4 by, or benefit, the general fund of the Treasury, con5 sistent with section 504(f) of the Congressional 

6 Budget Act of 1974 (2 U.S.C. 661c(f)). 

7 ‘‘(4) ADMINISTRATIVE COSTS.—Of the amounts 

8 made available to carry out the CIFIA program, the 

9 Secretary may use not more than $9,000,000 (as in10 dexed for United States dollar inflation from the 

11 date of enactment of the Storing CO2 and Lowering 

12 Emissions Act (as measured by the Consumer Price 

13 Index)) each fiscal year for the administration of the 

14 CIFIA program. 

15 ‘‘(b) CONTRACT AUTHORITY.— 

16 ‘‘(1) IN GENERAL.—Notwithstanding any other 

17 provision of law, execution of a term sheet by the 

18 Secretary of a Federal credit instrument that uses 

19 amounts made available under the CIFIA program 

20 shall impose on the United States a contractual obli21 gation to fund the Federal credit investment. 

22 ‘‘(2) AVAILABILITY.—Amounts made available 

23 to carry out the CIFIA program for a fiscal year 

24 shall be available for obligation on October 1 of the 

25 fiscal year.’’. 


kjohnson on DSK79L0C42PROD with BILLS
41 

•HR 1992 IH

1 (b) TECHNICAL AMENDMENTS.—The table of con2 tents for the Energy Policy Act of 2005 (Public Law 109– 

3 58; 119 Stat. 600) is amended— 

4 (1) in the item relating to section 917, by strik5 ing ‘‘Efficiency’’; 

6 (2) by striking the items relating to subtitle J 

7 of title IX (relating to ultra-deepwater and uncon8 ventional natural gas and other petroleum resources) 

9 and inserting the following: 

‘‘Subtitle J—Carbon Dioxide Transportation Infrastructure Finance and 

Innovation 

‘‘Sec. 999A. Definitions. 

‘‘Sec. 999B. Determination of eligibility and project selection. 

‘‘Sec. 999C. Secured loans. 

‘‘Sec. 999D. Future growth grants. 

‘‘Sec. 999E. Program administration. 

‘‘Sec. 999F. State and local permits. 

‘‘Sec. 999G. Regulations. 

‘‘Sec. 999H. Funding.’’; 

10 and 

11 (3) by striking the item relating to section 

12 969B and inserting the following: 

‘‘Sec. 969B. High efficiency turbines.’’. 

13 TITLE III—GEOLOGIC STORAGE 

14 OF CAPTURED CARBON 

15 SEC. 301. CARBON STORAGE VALIDATION AND TESTING. 

16 Section 963 of the Energy Policy Act of 2005 (42 

17 U.S.C. 16293) is amended— 

18 (1) in subsection (a)(1)(B), by striking ‘‘over a 

19 10-year period’’; 


kjohnson on DSK79L0C42PROD with BILLS
42 

•HR 1992 IH

1 (2) in subsection (b)— 

2 (A) in paragraph (1), by striking ‘‘and 

3 demonstration’’ and inserting ‘‘demonstration, 

4 and commercialization’’; and 

5 (B) in paragraph (2)— 

6 (i) in subparagraph (G), by striking 

7 ‘‘and’’ at the end; 

8 (ii) in subparagraph (H), by striking 

9 the period at the end and inserting ‘‘; 

10 and’’; and 

11 (iii) by adding at the end the fol12 lowing: 

13 ‘‘(I) evaluating the quantity, lo14 cation, and timing of geologic carbon 

15 storage deployment that may be need16 ed, and developing strategies and re17 sources to enable the deployment.’’; 

18 (3) by redesignating subsections (e) through (g) 

19 as subsections (f) through (h), respectively; 

20 (4) by inserting after subsection (d) the fol21 lowing: 

22 ‘‘(e) LARGE-SCALE CARBON STORAGE COMMER23 CIALIZATION PROGRAM.— 

24 ‘‘(1) IN GENERAL.—The Secretary shall estab25 lish a commercialization program under which the 


kjohnson on DSK79L0C42PROD with BILLS
43 

•HR 1992 IH

1 Secretary shall provide funding for the development 

2 of new or expanded commercial large-scale carbon 

3 sequestration projects and associated carbon dioxide 

4 transport infrastructure, including funding for the 

5 feasibility, site characterization, permitting, and con6 struction stages of project development. 

7 ‘‘(2) APPLICATIONS; SELECTION.— 

8 ‘‘(A) IN GENERAL.—To be eligible to enter 

9 into an agreement with the Secretary for fund10 ing under paragraph (1), an entity shall submit 

11 to the Secretary an application at such time, in 

12 such manner, and containing such information 

13 as the Secretary determines to be appropriate. 

14 ‘‘(B) APPLICATION PROCESS.—The Sec15 retary shall establish an application process 

16 that, to the maximum extent practicable— 

17 ‘‘(i) is open to projects at any stage of 

18 development described in paragraph (1); 

19 and 

20 ‘‘(ii) facilitates expeditious develop21 ment of projects described in that para22 graph. 

23 ‘‘(C) PROJECT SELECTION.—In selecting 

24 projects for funding under paragraph (1), the 

25 Secretary shall give priority to— 


kjohnson on DSK79L0C42PROD with BILLS
44 

•HR 1992 IH

1 ‘‘(i) projects with substantial carbon 

2 dioxide storage capacity; or 

3 ‘‘(ii) projects that will store carbon di4 oxide from multiple carbon capture facili5 ties.’’; 

6 (5) in subsection (f) (as so redesignated), in 

7 paragraph (1), by inserting ‘‘with respect to the re8 search, development, demonstration program compo9 nents described in subsections (b) through (d)’’ be10 fore ‘‘give preference’’; and 

11 (6) in subsection (h) (as so redesignated)— 

12 (A) in paragraph (5), by striking the pe13 riod at the end and inserting ‘‘; and’’; 

14 (B) by redesignating paragraphs (1) 

15 through (5) as subparagraphs (A) through (E), 

16 respectively, and indenting appropriately; 

17 (C) by inserting before subparagraph (A) 

18 (as so redesignated) the following: 

19 ‘‘(1) for activities under the research, develop20 ment, demonstration program components described 

21 in subsections (b) through (d)—’’; and 

22 (D) by adding at the end the following: 

23 ‘‘(2) for activities under the commercialization 

24 program component described in subsection (e), to 


kjohnson on DSK79L0C42PROD with BILLS
45 

•HR 1992 IH

1 remain available until expended, $500,000,000 for 

2 each of fiscal years 2022 through 2026.’’. 

3 SEC. 302. SECURE GEOLOGIC STORAGE PERMITTING. 

4 (a) DEFINITIONS.—In this section: 

5 (1) ADMINISTRATOR.—The term ‘‘Adminis6 trator’’ means the Administrator of the Environ7 mental Protection Agency. 

8 (2) CLASS VI WELL.—The term ‘‘Class VI well’’ 

9 means a well described in section 144.6(f) of title 

10 40, Code of Federal Regulations (or successor regu11 lations). 

12 (b) GEOLOGIC SEQUESTRATION PERMITTING.—For 

13 the permitting of Class VI wells by the Administrator for 

14 the injection of carbon dioxide for the purpose of geologic 

15 sequestration in accordance with the requirements of the 

16 Safe Drinking Water Act (42 U.S.C. 300f et seq.) and 

17 the final rule of the Administrator entitled ‘‘Federal Re18 quirements Under the Underground Injection Control 

19 (UIC) Program for Carbon Dioxide (CO2) Geologic Se20 questration (GS) Wells’’ (75 Fed. Reg. 77230 (December 

21 10, 2010)), there is authorized to be appropriated for each 

22 of fiscal years 2022 through 2026, $5,000,000. 

23 (c) STATE PERMITTING PROGRAM GRANTS.— 

24 (1) ESTABLISHMENT.—The Administrator shall 

25 award grants to States that, pursuant to section 


kjohnson on DSK79L0C42PROD with BILLS
46 

•HR 1992 IH

1 1422 of the Safe Drinking Water Act (42 U.S.C. 

2 300h–1), receive the approval of the Administrator 

3 for a State underground injection control program 

4 for permitting Class VI wells for the injection of car5 bon dioxide. 

6 (2) USE OF FUNDS.—A State that receives a 

7 grant under paragraph (1) shall use the amounts re8 ceived under the grant to defray the expenses of the 

9 State related to the establishment and operation of 

10 a State underground injection control program de11 scribed in paragraph (1). 

12 (3) AUTHORIZATION OF APPROPRIATIONS.— 

13 There is authorized to be appropriated to carry out 

14 this subsection, for the period of fiscal years 2022 

15 through 2026, $50,000,000. 

Æ 


kjohnson on DSK79L0C42PROD with BILLS