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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7054 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 7054

 To require the Secretary of Energy to remove carbon dioxide directly 
         from ambient air or seawater, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 18, 2024

 Mr. Tonko (for himself and Mr. Peters) introduced the following bill; 
       which was referred to the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL

 
 To require the Secretary of Energy to remove carbon dioxide directly 
         from ambient air or seawater, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Carbon Dioxide Removal Leadership 
Act of 2024''.

SEC. 2. FEDERAL REQUIREMENT TO REMOVE CARBON DIOXIDE.

    (a) Required Amounts.--The Secretary shall, to the extent 
economically feasible as provided in subsection (d), remove--
            (1) 50,000 net metric tons of carbon dioxide, calculated on 
        a lifecycle basis, for each of fiscal years 2024 through 2025;
            (2) 500,000 net metric tons of carbon dioxide, calculated 
        on a lifecycle basis, for each of fiscal years 2026 through 
        2028;
            (3) 5,000,000 net metric tons of carbon dioxide, calculated 
        on a lifecycle basis, for each of fiscal years 2029 through 
        2034; and
            (4) 10,000,000 net metric tons of carbon dioxide, 
        calculated on a lifecycle basis, for fiscal year 2035 and each 
        fiscal year thereafter.
    (b) Timing.--The Secretary shall remove each amount of carbon 
dioxide required under subsection (a) by not later than 3 years after 
the beginning of the fiscal year for which such removal is required.
    (c) Small Removal Project Set-Aside.--To the extent practicable, at 
least 20 percent of the net metric tons of carbon dioxide required to 
be removed for each of fiscal years 2024 through 2034 under subsection 
(a) shall be removed by small removal projects.
    (d) Economic Feasibility.--
            (1) In general.--The removal of carbon dioxide under this 
        section shall be considered economically feasible if such 
        removal can be accomplished or, in the case of a contract, 
        purchased--
                    (A) with respect to such removal carried out for 
                any of fiscal years 2024 through 2025, at a price per 
                metric ton of carbon dioxide of not more than $750 
                (which the Secretary may adjust for inflation);
                    (B) with respect to such removal carried out for 
                any of fiscal years 2026 through 2028, at a price per 
                metric ton of carbon dioxide of not more than $500 
                (which the Secretary may adjust for inflation);
                    (C) with respect to such removal carried out for 
                any of fiscal years 2029 through 2031, at a price per 
                metric ton of carbon dioxide of not more than $300 
                (which the Secretary may adjust for inflation);
                    (D) with respect to such removal carried out for 
                any of fiscal years 2032 through 2034, at a price per 
                metric ton of carbon dioxide of not more than $200 
                (which the Secretary may adjust for inflation); and
                    (E) with respect to such removal carried out for 
                fiscal year 2035 and each fiscal year thereafter, at a 
                price per metric ton of carbon dioxide of not more than 
                $150 (which the Secretary may adjust for inflation).
            (2) Inclusion of monitoring, reporting, and verification 
        costs.--In determining whether the removal of carbon dioxide is 
        considered economically feasible under paragraph (1), the price 
        for such removal shall include any costs associated with the 
        monitoring, reporting, and verification required under 
        subsection (f)(1).
            (3) Multi-year contracts.--Notwithstanding paragraph (1), 
        the removal of carbon dioxide carried out pursuant to a multi-
        year contract entered into under subsection (h) shall be 
        considered economically feasible if such removal can be 
        accomplished at the applicable dollar amount for the first 
        fiscal year of the contract, as provided in paragraph (1), 
        through the entire length of such contract.
    (e) Federal Assistance.--Funds received pursuant to a contract 
entered into under subsection (h) shall not be considered Federal 
assistance or otherwise affect eligibility for any Federal assistance, 
including tax incentives.
    (f) Monitoring, Reporting, and Verification.--
            (1) In general.--The Secretary, or an entity the Secretary 
        enters into a contract with under subsection (h), shall 
        monitor, report, and verify the net metric tons of carbon 
        dioxide the Secretary or such entity, as applicable, removed 
        for purposes of this section.
            (2) Standards.--Not later than 1 year after the date of 
        enactment of this section, the Secretary, in consultation with 
        the Administrator of the National Oceanic and Atmospheric 
        Administration, the Administrator of the Environmental 
        Protection Agency, the Secretary of the Department of 
        Agriculture, and other relevant Federal agencies as determined 
        appropriate by the Secretary, shall establish standards for the 
        monitoring, reporting, and verification of net metric tons of 
        carbon dioxide removed pursuant to this section. Such standards 
        shall--
                    (A) require the use of the best available practices 
                used by similar carbon dioxide removal projects;
                    (B) ensure safe, effective, and efficient removal 
                of carbon dioxide;
                    (C) require independent, third-party verification 
                of carbon dioxide removal;
                    (D) ensure additionality, permanence, and net-
                negativity of carbon dioxide removal;
                    (E) include criteria to determine whether the 
                storage of captured carbon dioxide is permanent;
                    (F) ensure scientifically rigorous and transparent 
                methods for monitoring, reporting, and verifying under 
                paragraph (1); and
                    (G) be regularly reviewed and, as necessary, 
                updated to account for scientific and technological 
                advancements.
            (3) Prohibition on double counting.--Carbon dioxide that is 
        removed for the purposes of compliance with any other 
        greenhouse gas emissions management program, including any 
        foreign, Federal, State, local, or private greenhouse gas 
        emissions management program, as determined by the Secretary, 
        may not be considered removed under subsection (a) for purposes 
        of meeting the requirements of such subsection.
    (g) Priorities.--In carrying out this section, the Secretary shall 
give priority to a project for the removal of carbon dioxide based on 
the degree to which the project--
            (1) minimizes the amount of greenhouse gas emissions 
        released by carrying out such project;
            (2) supports the commercialization of innovative removal 
        technologies;
            (3) increases the diversity of commercially available 
        eligible technologies;
            (4) may provide for domestic job creation, with a further 
        preference for partnerships with labor organizations, small 
        businesses, minority-owned businesses, and women-owned 
        businesses across value chains;
            (5) results in economic development or economic 
        diversification in regions or localities that have historically 
        generated significant economic activity from the production, 
        processing, transportation, or combustion of fossil fuels, 
        including through the use of coal mines, fossil fuel-fired 
        electricity generating units, and petroleum refining 
        facilities;
            (6) quantifies and mitigates risks from carbon dioxide 
        removal activities on, and provides measurable co-benefits to, 
        environmental justice communities, the environment, 
        agriculture, and public health, including by--
                    (A) improving local air quality, water quality, and 
                soil quality;
                    (B) minimizing land, water, and energy footprints; 
                and
                    (C) using zero-emission energy; and
            (7) includes robust public engagement and community 
        benefits.
    (h) Contracts.--
            (1) In general.--After a transparent and competitive 
        process, the Secretary may enter into a contract to meet the 
        requirements of subsection (a).
            (2) Length.--A contract entered into under this subsection 
        may not be for a term of more than 15 years.
            (3) Maintenance of removal commitments.--The Secretary 
        shall include as a term or condition in each contract entered 
        into under this subsection that the entity that enters into the 
        contract shall permanently store an additional amount of carbon 
        dioxide that is equal to any amount of carbon dioxide that is 
        released after permanent storage by such entity.
            (4) Limitation.--To the extent that there is a sufficient 
        number of entities capable of removing carbon dioxide in a 
        manner that meets the standards and requirements of this 
        section under a contract entered into pursuant to this 
        subsection, the Secretary shall ensure that no one entity is 
        responsible for removing more than 25 percent of the net metric 
        tons of carbon dioxide required under subsection (a) in any 
        fiscal year.
    (i) Report.--Not later than January 1, 2027, and every 2 years 
thereafter, the Secretary shall submit to Congress, and release to the 
public, a report on the progress of carrying out the requirements of 
this section, which such report shall include--
            (1) the amounts verified under subsection (f)(1) and the 
        corresponding names of each entity that provided such verified 
        amount;
            (2) the total price, and price per metric ton, to remove 
        carbon dioxide for the applicable fiscal year as required under 
        subsection (a);
            (3) the methods associated with the monitoring, reporting, 
        and verification required under subsection (f)(1);
            (4) an estimate of how removing carbon dioxide under this 
        section affects environmental justice communities, the 
        environment, agriculture, and public health;
            (5) information on potential labor impacts and job creation 
        resulting from fulfilling the requirements of subsection (a); 
        and
            (6) an explanation of how the Secretary prioritized 
        projects under subsection (g).
    (j) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.
    (k) Definitions.--In this section:
            (1) Eligible technology.--
                    (A) In general.--The term ``eligible technology'' 
                means, as determined by the Secretary, any equipment, 
                technique, or technology that--
                            (i) was placed into service after January 
                        1, 2022; and
                            (ii) removes carbon dioxide directly from 
                        ambient air or seawater.
                    (B) Exclusion.--The term ``eligible technology'' 
                does not include any equipment, technique, or 
                technology that--
                            (i) removes carbon dioxide which is 
                        deliberately released from naturally occurring 
                        subsurface springs;
                            (ii) removes carbon dioxide using natural 
                        photosynthesis, except as provided in 
                        subparagraph (C); or
                            (iii) uses captured carbon dioxide in 
                        enhanced oil recovery.
                    (C) Expansion of eligible technology.--
                Notwithstanding subparagraph (B)(ii), any equipment, 
                technique, or technology that removes carbon dioxide 
                using gasification, pyrolysis, or sequestration of 
                solid, nonhazardous, and cellulosic waste materials may 
                be considered an eligible technology under this section 
                if the Secretary, by rule--
                            (i) determines an entity that carries out a 
                        removal project under this section is able to 
                        adequately monitor, report, and verify the 
                        amount of greenhouse gas emissions, calculated 
                        on a lifecycle basis (including direct 
                        emissions and significant indirect emissions), 
                        removed using such equipment, technique, or 
                        technology;
                            (ii) determines an entity that carries out 
                        a removal project under this section is able to 
                        adequately mitigate the environmental impacts 
                        (including impacts on biodiversity, land use, 
                        and air and water quality) associated with such 
                        equipment, technique, or technology; and
                            (iii) requires an entity carrying out a 
                        removal project under this section to--
                                    (I) adequately monitor, report, and 
                                verify the amount and storage 
                                permanence of greenhouse gas emissions, 
                                calculated on a lifecycle basis 
                                (including direct emissions and 
                                significant indirect emissions), 
                                associated with using such equipment, 
                                technique, or technology; and
                                    (II) adequately mitigate the 
                                environmental impacts (including 
                                impacts on biodiversity, land use, and 
                                air, soil, and water quality) 
                                associated with using such equipment, 
                                technique, or technology.
            (2) Lifecycle basis.--The term ``lifecycle basis'' means 
        the net sum of all greenhouse gas emissions (using mass values 
        for all greenhouse gases that are adjusted to account for their 
        relative global warming potential, in consultation with the 
        Administrator of the Environmental Protection Agency) and 
        removals associated with carbon dioxide removal activity from 
        cradle to grave, including any emissions associated with--
                    (A) energy and feedstock inputs;
                    (B) the carbon dioxide removal process;
                    (C) carbon dioxide storage, including use and 
                disposal of any materials or products associated with 
                carbon dioxide storage; and
                    (D) embodied emissions of the equipment.
            (3) Remove.--The term ``remove'' means to--
                    (A) capture carbon dioxide using eligible 
                technology; and
                    (B) permanently store such captured carbon 
                dioxide--
                            (i) in dedicated subsurface geologic 
                        storage reported under sections 98.440 and 
                        146.91(e) of title 40, Code of Federal 
                        Regulations (or successor regulations);
                            (ii) in building materials and mineralized 
                        carbon materials; or
                            (iii) using other permanent storage 
                        methods, as determined by the Secretary.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (5) Small removal project.--The term ``small removal 
        project'' means a project for the removal of carbon dioxide 
        that does not remove more than 5 percent of the net metric tons 
        of carbon dioxide required to be removed for the applicable 
        fiscal year under subsection (a).

SEC. 3. STUDY ON THE LONG-TERM FUTURE OF FEDERAL CARBON DIOXIDE REMOVAL 
              MANAGEMENT.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary of Energy, in consultation with the Administrator of the 
National Oceanic and Atmospheric Administration, the Administrator of 
the Environmental Protection Agency, the Secretary of the Department of 
Agriculture, and other relevant Federal agencies, shall submit to the 
Committee on Energy and Commerce of the House of Representatives and 
the Committee on Energy and Natural Resources of the Senate a report 
that evaluates and makes recommendations for potential program design 
elements and financing options for a Federal carbon dioxide removal 
offtake program that can be scaled to achieve carbon dioxide removal 
from the atmosphere and the oceans at a gigaton scale annually by 2050. 
Such report shall include consideration of potential management and 
organizational structures for the program, including--
            (1) a government sponsored enterprise;
            (2) a government corporation;
            (3) a program office with the Department of Energy or other 
        Federal agency; and
            (4) a contracted service provider.
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