```

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8995 Introduced in House (IH)]

<DOC>

116th CONGRESS
  2d Session
                                H. R. 8995

  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

                           December 16, 2020

 Mr. Veasey (for himself, Mr. McKinley, Mrs. Bustos, and Mr. Stauber) 
 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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Storing CO2 And 
Lowering Emissions Act'' or the ``SCALE Act''.
    (b) Table of Contents.--The table of contents for 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 and carbon-to-value infrastructure 
                            development.
              TITLE II--TRANSPORTATION OF CAPTURED CARBON

Sec. 201. Carbon dioxide transportation infrastructure finance and 
                            innovation.
             TITLE III--GEOLOGIC STORAGE OF CAPTURED CARBON

Sec. 301. Secure geologic storage infrastructure development program.
Sec. 302. Secure geologic storage permitting.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the industrial sector is integral to the economy of the 
        United States, providing millions of jobs, essential products, 
        and 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 one quarter of the United States 
        carbon dioxide emissions;
            (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 is critical for achieving 
        mid-century climate goals and 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 such 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 such infrastructure for a period of 
                not less than 10 years.

                 TITLE I--UTILIZATION OF CARBON OXIDES

SEC. 101. CARBON UTILIZATION PROGRAM AND CARBON-TO-VALUE INFRASTRUCTURE 
              DEVELOPMENT.

    (a) In General.--Subtitle F of title IX of the Energy Policy Act of 
2005 (42 U.S.C. 16291 et seq.) is amended by adding at the end the 
following:

``SEC. 969. CARBON UTILIZATION PROGRAM.

    ``(a) In General.--The Secretary shall establish a program of 
research, development, and demonstration for carbon utilization--
            ``(1) to identify and assess technologies and processes to 
        produce products of commercial value, including chemicals, 
        materials, and advanced fuels, that--
                    ``(A) use or are derived from anthropogenic carbon 
                oxides; and
                    ``(B) will achieve significant net reductions in 
                lifecycle greenhouse gas emissions compared to 
                incumbent technologies, processes, and products;
            ``(2) to develop or obtain, in coordination with the heads 
        of other applicable Federal agencies and standard-setting 
        organizations, standards and certifications, as appropriate, to 
        facilitate the commercialization of the technologies and 
        products described in paragraph (1); and
            ``(3) to assess the lifecycle greenhouse gas emissions 
        associated with the technologies, processes, and products 
        described in paragraph (1).
    ``(b) Carbon-to-Value Research, Development, and Demonstration 
Center.--Not later than 1 year after the date of enactment of this 
section, the Secretary shall establish a research, development, and 
demonstration center to support the program established under 
subsection (a).
    ``(c) Grant Program.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, the Secretary shall establish a 
        program to provide grants to eligible entities to use in 
        accordance with paragraph (4).
            ``(2) Eligible entities.--An entity eligible to receive a 
        grant under this subsection is--
                    ``(A) a State; or
                    ``(B) a unit of local government.
            ``(3) Applications.--To be eligible to receive a grant 
        under this subsection, an eligible 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.
            ``(4) Use of funds.--An eligible entity shall use a grant 
        under this subsection to procure and use products of commercial 
        value, including chemicals, materials, and advanced fuels, 
        that--
                    ``(A) use or are derived from anthropogenic carbon 
                oxides; and
                    ``(B) demonstrate significant net reductions in 
                lifecycle greenhouse gas emissions compared to 
                incumbent technologies, processes, and products.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $40,000,000 for 
each of fiscal years 2021 through 2025.''.
    (b) Clerical Amendment.--The table of contents for the Energy 
Policy Act of 2005 (Public Law 109-58; 119 Stat. 600) is amended by 
adding at the end of the items relating to subtitle F of title IX the 
following:

``Sec. 969. Carbon utilization program.''.

              TITLE II--TRANSPORTATION OF CAPTURED CARBON

SEC. 201. CARBON DIOXIDE TRANSPORTATION INFRASTRUCTURE FINANCE AND 
              INNOVATION.

    (a) In General.--Title IX of the Energy Policy Act of 2005 (42 
U.S.C. 16181 et seq.) is amended by adding at the end the following:

``Subtitle J--Carbon Dioxide Transportation Infrastructure Finance and 
                               Innovation

``SEC. 999A. DEFINITIONS.

    ``In this subtitle:
            ``(1) CIFIA program.--The term `CIFIA program' means the 
        carbon dioxide transportation infrastructure finance and 
        innovation program established under section 999B(a).
            ``(2) Common carrier.--The term `common carrier' means a 
        transportation infrastructure operator that--
                    ``(A) publishes a publicly available tariff 
                containing the rates, terms, and conditions of non-
                discriminatory service; and
                    ``(B) holds itself out to provide transportation 
                services to the public for a fee.
            ``(3) Contingent commitment.--The term `contingent 
        commitment' means a commitment to obligate funds from future 
        available budget authority that is--
                    ``(A) contingent on those funds being made 
                available in law at a future date; and
                    ``(B) not an obligation of the Federal Government.
            ``(4) Eligible project costs.--The term `eligible project 
        costs' means amounts substantially all of which are paid by, or 
        for the account of, an obligor in connection with a project, 
        including the cost of--
                    ``(A) development-phase activities, including 
                planning, feasibility analysis, revenue forecasting, 
                environmental review, permitting, preliminary 
                engineering and design work, and other preconstruction 
                activities;
                    ``(B) construction, reconstruction, rehabilitation, 
                replacement, and acquisition of real property 
                (including land relating to the project and 
                improvements to land), environmental mitigation, 
                construction contingencies, and acquisition and 
                installation of equipment (including labor); and
                    ``(C) capitalized interest necessary to meet market 
                requirements, reasonably required reserve funds, 
                capital issuance expenses, and other carrying costs 
                during construction.
            ``(5) Federal credit instrument.--The term `Federal credit 
        instrument' means a secured loan or loan guarantee authorized 
        to be made available under the CIFIA program with respect to a 
        project.
            ``(6) Lender.--The term `lender' means any non-Federal 
        qualified institutional buyer (as defined in section 
        230.144A(a) of title 17, Code of Federal Regulations (or a 
        successor regulation), commonly known as Rule 144A(a) of the 
        Securities and Exchange Commission and issued under the 
        Securities Act of 1933 (15 U.S.C. 77a et seq.)), including--
                    ``(A) a qualified retirement plan (as defined in 
                section 4974(c) of the Internal Revenue Code of 1986) 
                that is a qualified institutional buyer; and
                    ``(B) a governmental plan (as defined in section 
                414(d) of the Internal Revenue Code of 1986) that is a 
                qualified institutional buyer.
            ``(7) Letter of interest.--The term `letter of interest' 
        means a letter submitted by a potential applicant prior to an 
        application for credit assistance in a format prescribed by the 
        Secretary on the website of the CIFIA program that--
                    ``(A) describes the project and the location, 
                purpose, and cost of the project;
                    ``(B) outlines the proposed financial plan, 
                including the requested credit and grant assistance and 
                the proposed obligor;
                    ``(C) provides a status of environmental review; 
                and
                    ``(D) provides information regarding satisfaction 
                of other eligibility requirements of the CIFIA program.
            ``(8) Loan guarantee.--The term `loan guarantee' means any 
        guarantee or other pledge by the Secretary to pay all or part 
        of the principal of, and interest on, a loan or other debt 
        obligation issued by an obligor and funded by a lender.
            ``(9) Master credit agreement.--The term `master credit 
        agreement' means a conditional agreement that--
                    ``(A) is for the purpose of extending credit 
                assistance for--
                            ``(i) a project of high priority under 
                        section 999B(c)(3)(A); or
                            ``(ii) a project covered under section 
                        999B(c)(3)(B);
                    ``(B) does not provide for a current obligation of 
                Federal funds; and
                    ``(C) would--
                            ``(i) make a contingent commitment of a 
                        secured loan or other Federal credit 
                        instrument, or grant at a future date, subject 
                        to--
                                    ``(I) the availability of future 
                                funds being made available to carry out 
                                the CIFIA program; and
                                    ``(II) the satisfaction of all 
                                conditions for the provision of credit 
                                assistance under the CIFIA program, 
                                including section 999C(b);
                            ``(ii) establish the maximum amounts and 
                        general terms and conditions of the secured 
                        loans, other Federal credit instruments, or 
                        grants;
                            ``(iii) identify the one or more dedicated 
                        revenue sources that will secure the repayment 
                        of the secured loans or secured Federal credit 
                        instruments;
                            ``(iv) provide for the obligation of funds 
                        for the secured loans, secured Federal credit 
                        instruments, or grants after all requirements 
                        have been met for the projects subject to the 
                        master credit agreement, including--
                                    ``(I) an environmental categorical 
                                exclusion, a finding of no significant 
                                impact, or a record of decision under 
                                the National Environmental Policy Act 
                                of 1969 (42 U.S.C. 4321 et seq.);
                                    ``(II) compliance with all 
                                applicable requirements specified under 
                                the CIFIA program, including sections 
                                999B(d) and 999C(b)(1); and
                                    ``(III) the availability of funds 
                                to carry out the CIFIA program; and
                            ``(v) require that contingent commitments 
                        shall result in a financial close and 
                        obligation of credit or grant assistance by not 
                        later than 3 years after the date of entry into 
                        the master credit agreement or release of the 
                        commitment, as applicable, unless otherwise 
                        extended by the Secretary.
            ``(10) Obligor.--The term `obligor' means a corporation, 
        partnership, joint venture, trust, governmental entity, agency, 
        or instrumentality, or other entity that is primarily liable 
        for payment of the principal of, or interest on, a Federal 
        credit instrument.
            ``(11) Produced in the united states.--The term `produced 
        in the United States' means, in the case of iron or steel, that 
        all manufacturing processes, including the application of a 
        coating, occur in the United States.
            ``(12) Project.--The term `project' means a project for 
        common carrier carbon dioxide transportation infrastructure and 
        associated equipment, including pipeline, shipping, rail, or 
        other transportation infrastructure and associated equipment, 
        that will transport or handle carbon dioxide captured from 
        anthropogenic sources or ambient air, as the Secretary 
        determines to be appropriate.
            ``(13) Project obligation.--The term `project obligation' 
        means any note, bond, debenture, or other debt obligation 
        issued by an obligor in connection with the financing of a 
        project, other than a Federal credit instrument.
            ``(14) Secured loan.--The term `secured loan' means a 
        direct loan or other debt obligation issued by an obligor and 
        funded by the Secretary in connection with the financing of a 
        project under section 999C.
            ``(15) Subsidy amount.--The term `subsidy amount' means the 
        amount of budget authority sufficient to cover the estimated 
        long-term cost to the Federal Government of a Federal credit 
        instrument--
                    ``(A) calculated on a net present value basis; and
                    ``(B) excluding administrative costs and any 
                incidental effects on governmental receipts or outlays 
                in accordance with the Federal Credit Reform Act of 
                1990 (2 U.S.C. 661 et seq.).
            ``(16) Substantial completion.--The term `substantial 
        completion', with respect to a project, means the date--
                    ``(A) on which the project commences transportation 
                of carbon dioxide; or
                    ``(B) of a comparable event to the event described 
                in subparagraph (A), as determined by the Secretary and 
                specified in the project credit agreement.

``SEC. 999B. DETERMINATION OF ELIGIBILITY AND PROJECT SELECTION.

    ``(a) In General.--The Secretary shall establish and carry out a 
carbon dioxide transportation infrastructure finance and innovation 
program, under which the Secretary shall provide Federal credit 
instruments and grants for eligible projects in accordance with this 
subtitle.
    ``(b) Eligibility.--
            ``(1) In general.--A project shall be eligible to receive 
        credit assistance and a grant under the CIFIA program if--
                    ``(A) the entity proposing to carry out the project 
                submits a letter of interest prior to submission of a 
                formal application for the project; and
                    ``(B) the project meets the criteria described in 
                this subsection.
            ``(2) Creditworthiness.--
                    ``(A) In general.--Each project and obligor that 
                receives credit assistance or a grant under the CIFIA 
                program shall be creditworthy, such that there exists a 
                reasonable prospect of repayment of the principal and 
                interest on the Federal credit instrument, as 
                determined by the Secretary.
                    ``(B) Considerations.--In determining the 
                creditworthiness of a project or obligor for purposes 
                of this paragraph, the Secretary shall take into 
                consideration relevant factors, including--
                            ``(i) the terms, conditions, financial 
                        structure, and security features of the 
                        applicable proposed financing;
                            ``(ii) the dedicated revenue sources that 
                        will contribute to the project obligations;
                            ``(iii) the financial assumptions on which 
                        the project is based; and
                            ``(iv) the financial soundness and credit 
                        history of the obligor.
                    ``(C) Security features.--The Secretary shall 
                ensure that any financing provided for a project under 
                the CIFIA program has in effect appropriate security 
                features supporting the project obligations to ensure 
                repayment.
            ``(3) Application.--To be eligible for assistance under the 
        CIFIA program, a State, local government, public authority, 
        public-private partnership, or any other legal entity carrying 
        out the project and authorized by the Secretary, shall submit 
        to the Secretary a project application at such time, in such 
        manner, and containing such information as the Secretary 
        determines to be appropriate.
            ``(4) Eligible project costs.--A project under the CIFIA 
        program shall have eligible project costs that are reasonably 
        anticipated to equal or exceed $200,000,000.
            ``(5) Dedicated revenue sources.--The applicable Federal 
        credit instrument shall be repayable, in whole or in part, 
        from--
                    ``(A) user fees;
                    ``(B) payments owing to the obligor under a public-
                private partnership; or
                    ``(C) other dedicated revenue sources that also 
                secure or fund the project obligations.
            ``(6) Obligor will be identified later.--A State, local 
        government, agency, or instrumentality of a State or local 
        government, or public authority may submit to the Secretary an 
        application under paragraph (3), under which a private party to 
        a public-private partnership will be--
                    ``(A) the obligor; and
                    ``(B) identified at a later date through completion 
                of a procurement and selection of the private party.
            ``(7) Beneficial effects.--The Secretary shall determine 
        that financial assistance for each project under the CIFIA 
        program will--
                    ``(A) foster, if appropriate, partnerships that 
                attract public or private investment for the project;
                    ``(B) enable the project to proceed at an earlier 
                date than the project would otherwise be able to 
                proceed or reduce the lifecycle costs (including debt 
                service costs) of the project; and
                    ``(C) enable any associated project that--
                            ``(i) captures carbon dioxide from an 
                        anthropogenic source or ambient air; and
                            ``(ii) uses the transportation 
                        infrastructure project supported by the CIFIA 
                        program.
            ``(8) Project readiness.--To be eligible for assistance 
        under the CIFIA program, the applicant shall demonstrate a 
        reasonable expectation that the contracting process for 
        construction of the project can commence by not later than 90 
        days after the date on which a Federal credit instrument or 
        grant is obligated for the project under the CIFIA program.
    ``(c) Selection Among Eligible Projects.--
            ``(1) Establishment of application process.--The Secretary 
        shall establish an application process under which projects 
        that are eligible to receive assistance under subsection (b) 
        may--
                    ``(A) receive credit assistance on terms acceptable 
                to the Secretary, if adequate funds are available 
                (including any funds provided on behalf of an eligible 
                project under paragraph (3)(B)(ii)) to cover the 
                subsidy amount associated with the Federal credit 
                instrument; and
                    ``(B) receive grants under section 999D if--
                            ``(i) adequate funds are available to cover 
                        the amount of the grant; and
                            ``(ii) the Secretary determines that the 
                        project is eligible under subsection (b) of 
                        that section.
            ``(2) Priority.--In selecting projects to receive credit 
        assistance under subsection (b), the Secretary shall give 
        priority to projects that--
                    ``(A) are large-capacity, common carrier 
                infrastructure;
                    ``(B) have demonstrated demand for use of the 
                infrastructure by multiple associated projects that 
                capture carbon dioxide from anthropogenic sources or 
                ambient air;
                    ``(C) enable geographical diversity in associated 
                projects that capture carbon dioxide from anthropogenic 
                sources or ambient air, with the goal of enabling 
                projects in all major carbon dioxide-emitting regions 
                of the United States; and
                    ``(D) are located within, or adjacent to, existing 
                pipeline or other linear infrastructure corridors, in a 
                manner that minimizes environmental disturbance and 
                other siting concerns.
            ``(3) Master credit agreements.--
                    ``(A) Priority projects.--The Secretary may enter 
                into a master credit agreement for a project that the 
                Secretary determines--
                            ``(i) will likely be eligible for credit 
                        assistance under subsection (b), on obtaining--
                                    ``(I) additional firm commitments 
                                from associated carbon capture projects 
                                to use the project; or
                                    ``(II) all necessary permits and 
                                approvals; and
                            ``(ii) is a project of high priority, as 
                        determined in accordance with the criteria 
                        described in paragraph (2).
                    ``(B) Adequate funding not available.--If the 
                Secretary fully obligates funding to eligible projects 
                for a fiscal year and adequate funding is not available 
                to fund a Federal credit instrument, a project sponsor 
                (including a unit of State or local government) of an 
                eligible project may elect--
                            ``(i)(I) to enter into a master credit 
                        agreement in lieu of the Federal credit 
                        instrument; and
                            ``(II) to wait to execute a Federal credit 
                        instrument until the fiscal year for which 
                        additional funds are available to receive 
                        credit assistance; or
                            ``(ii) to pay the subsidy amount to fund 
                        the Federal credit instrument.
    ``(d) Federal Requirements.--
            ``(1) In general.--Nothing in this subtitle supersedes the 
        applicability of any other requirement under Federal law 
        (including regulations).
            ``(2) NEPA.--Federal credit assistance may only be provided 
        under this subtitle for a project that has received an 
        environmental categorical exclusion, a finding of no 
        significant impact, or a record of decision under the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
    ``(e) Use of American Iron, Steel, and Manufactured Goods.--
            ``(1) No Federal credit instrument or grant authorized to 
        be made available under this section shall be made available 
        with respect to a project unless all of the iron, steel, and 
        manufactured goods used in the project are produced in the 
        United States.
            ``(2) Paragraph (1) shall not apply in any case or category 
        of cases in which the Secretary finds that--
                    ``(A) applying paragraph (1) would be inconsistent 
                with the public interest;
                    ``(B) iron, steel, and the relevant manufactured 
                goods are not produced in the United States in 
                sufficient and reasonably available quantities and of a 
                satisfactory quality; or
                    ``(C) inclusion of iron, steel, and manufactured 
                goods produced in the United States will increase the 
                cost of the overall project by more than 25 percent.
            ``(3) If the Secretary receives a request for a waiver of 
        applicability of paragraph (1) under this subsection, the 
        Secretary shall make available to the public on an informal 
        basis a copy of the request and information available to the 
        Secretary concerning the request, and shall allow for informal 
        public input on the request for at least 15 days prior to 
        making a determination based on the request. The Secretary 
        shall make the request and accompanying information available 
        by electronic means, including on the official public website 
        of the Department of Energy, and shall make a determination 
        concerning the request for a waiver within 120 days of its 
        receipt.
            ``(4) This subsection shall be applied in a manner 
        consistent with the United States obligations under 
        international agreements.
    ``(f) Prevailing Rate of Wage.--
            ``(1) In general.--The Secretary shall ensure that laborers 
        and mechanics employed by contractors and subcontractors on a 
        project financed in whole or in part by credit assistance, a 
        loan, or a grant made available under this section, section 
        999C, or section 999D will be paid wages at rates not less than 
        those prevailing on similar construction in the locality, as 
        determined by the Secretary of Labor under subchapter IV of 
        chapter 31 of title 40.
            ``(2) Authority of the secretary of labor.--With respect to 
        the labor standards specified in paragraph (1), the Secretary 
        of Labor shall have the authority and functions set forth in 
        Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176) and 
        section 3145 of title 40, United States Code.
    ``(g) Application Processing Procedures.--
            ``(1) Notice of complete application.--Not later than 30 
        days after the date of receipt of an application under this 
        section, the Secretary shall provide to the applicant a written 
        notice describing whether--
                    ``(A) the application is complete; or
                    ``(B) additional information or materials are 
                needed to complete the application.
            ``(2) Approval or denial of application.--Not later than 60 
        days after the date of issuance of a written notice under 
        paragraph (1), the Secretary shall provide to the applicant a 
        written notice informing the applicant whether the Secretary 
        has approved or disapproved the application.
    ``(h) Development-Phase Activities.--Any Federal credit instrument 
secured under the CIFIA program may be used to finance up to 100 
percent of the cost of development-phase activities, as described in 
section 999A(4)(A).

``SEC. 999C. SECURED LOANS.

    ``(a) Agreements.--
            ``(1) In general.--Subject to paragraphs (2) and (3), the 
        Secretary may enter into agreements with one or more obligors 
        to make secured loans, the proceeds of which shall be used--
                    ``(A) to finance eligible project costs of any 
                project selected under section 999B;
                    ``(B) to refinance interim construction financing 
                of eligible project costs of any project selected under 
                section 999B; or
                    ``(C) to refinance long-term project obligations or 
                Federal credit instruments, if the refinancing provides 
                additional funding capacity for the completion, 
                enhancement, or expansion of any project that--
                            ``(i) is selected under section 999B; or
                            ``(ii) otherwise meets the requirements of 
                        that section.
            ``(2) Limitation on refinancing of interim construction 
        financing.--A loan under paragraph (1) shall not refinance 
        interim construction financing under paragraph (1)(B) if the 
        maturity of that interim construction financing is later than 1 
        year after the substantial completion of the project.
            ``(3) Risk assessment.--Before entering into an agreement 
        under this subsection, the Secretary, in consultation with the 
        Director of the Office of Management and Budget, shall 
        determine an appropriate credit subsidy amount for each secured 
        loan, taking into account all relevant factors, including the 
        creditworthiness factors in section 999B(b)(2).
    ``(b) Terms and Limitations.--
            ``(1) In general.--A secured loan under this section with 
        respect to a project shall be on such terms and conditions and 
        contain such covenants, representations, warranties, and 
        requirements (including requirements for audits) as the 
        Secretary determines to be appropriate.
            ``(2) Maximum amount.--The amount of a secured loan under 
        this section shall not exceed an amount equal to 80 percent of 
        the reasonably anticipated eligible project costs.
            ``(3) Payment.--A secured loan under this section shall--
                    ``(A) be payable, in whole or in part, from--
                            ``(i) user fees;
                            ``(ii) payments owing to the obligor under 
                        a public-private partnership; or
                            ``(iii) other dedicated revenue sources 
                        that also secure the senior project 
                        obligations; and
                    ``(B) include a coverage requirement or similar 
                security feature supporting the project obligations.
            ``(4) Interest rate.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the interest rate on a secured loan 
                under this section shall be not less than the yield on 
                United States Treasury securities of a similar maturity 
                to the maturity of the secured loan on the date of 
                execution of the loan agreement.
                    ``(B) Limited buydowns.--
                            ``(i) In general.--Subject to clause (ii), 
                        the Secretary may lower the interest rate of a 
                        secured loan under this section if the interest 
                        rate has increased between the period--
                                    ``(I) beginning on, as applicable--
                                            ``(aa) the date on which an 
                                        application acceptable to the 
                                        Secretary is submitted for the 
                                        applicable project; or
                                            ``(bb) the date on which 
                                        the Secretary entered into a 
                                        master credit agreement for the 
                                        applicable project; and
                                    ``(II) ending on the date on which 
                                the Secretary executes the Federal 
                                credit instrument for the applicable 
                                project.
                            ``(ii) Limitation.--The interest rate of a 
                        secured loan may not be lowered pursuant to 
                        clause (i) by more than the lower of--
                                    ``(I) 1\1/2\ percentage points (150 
                                basis points); and
                                    ``(II) an amount equal to the 
                                amount of the increase in the interest 
                                rate described in that clause.
            ``(5) Maturity date.--The final maturity date of the 
        secured loan shall be the earlier of--
                    ``(A) the date that is 35 years after the date of 
                substantial completion of the project; and
                    ``(B) if the useful life of the capital asset being 
                financed is of a lesser period, the date that is the 
                end of the useful life of the asset.
            ``(6) Nonsubordination.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the secured loan shall not be 
                subordinated to the claims of any holder of project 
                obligations in the event of bankruptcy, insolvency, or 
                liquidation of the obligor.
                    ``(B) Preexisting indenture.--
                            ``(i) In general.--The Secretary shall 
                        waive the requirement under subparagraph (A) 
                        for a public agency borrower that is financing 
                        ongoing capital programs and has outstanding 
                        senior bonds under a preexisting indenture, 
                        if--
                                    ``(I) the secured loan is rated in 
                                the A category or higher; and
                                    ``(II) the secured loan is secured 
                                and payable from pledged revenues not 
                                affected by project performance, such 
                                as a tax-backed revenue pledge or a 
                                system-backed pledge of project 
                                revenues.
                            ``(ii) Limitation.--If the Secretary waives 
                        the nonsubordination requirement under this 
                        subparagraph--
                                    ``(I) the maximum credit subsidy 
                                amount to be paid by the Federal 
                                Government shall be not more than 10 
                                percent of the principal amount of the 
                                secured loan; and
                                    ``(II) the obligor shall be 
                                responsible for paying the remainder of 
                                the subsidy amount, if any.
            ``(7) Fees.--The Secretary may establish a fee, in an 
        amount equal to not more than $1,000,000, to cover all or a 
        portion of the costs to the Federal Government of making a 
        secured loan under this section.
            ``(8) Maximum federal involvement.--The total Federal 
        assistance provided for a project under the CIFIA program, 
        including any grant provided under section 999D, shall not 
        exceed an amount equal to 80 percent of the total project cost.
    ``(c) Repayment.--
            ``(1) Schedule.--The Secretary shall establish a repayment 
        schedule for each secured loan under this section based on--
                    ``(A) the projected cash flow from project revenues 
                and other repayment sources; and
                    ``(B) the useful life of the project.
            ``(2) Commencement.--Scheduled loan repayments of principal 
        or interest on a secured loan under this section shall commence 
        not later than 5 years after the date of substantial completion 
        of the project.
            ``(3) Deferred payments.--
                    ``(A) In general.--If, at any time after the date 
                of substantial completion of a project, the project is 
                unable to generate sufficient revenues in excess of 
                reasonable and necessary operating expenses to pay the 
                scheduled loan repayments of principal and interest on 
                the secured loan, the Secretary may, subject to 
                subparagraph (C), allow the obligor to add unpaid 
                principal and interest to the outstanding balance of 
                the secured loan.
                    ``(B) Interest.--Any payment deferred under 
                subparagraph (A) shall--
                            ``(i) continue to accrue interest in 
                        accordance with subsection (b)(4) until fully 
                        repaid; and
                            ``(ii) be scheduled to be amortized over 
                        the remaining term of the loan.
                    ``(C) Criteria.--
                            ``(i) In general.--Any payment deferral 
                        under subparagraph (A) shall be contingent on 
                        the project meeting criteria established by the 
                        Secretary.
                            ``(ii) Repayment standards.--The criteria 
                        established pursuant to clause (i) shall 
                        include standards for reasonable assurance of 
                        repayment.
            ``(4) Prepayment.--
                    ``(A) Use of excess revenues.--Any excess revenues 
                that remain after satisfying scheduled debt service 
                requirements on the project obligations and secured 
                loan and all deposit requirements under the terms of 
                any trust agreement, bond resolution, or similar 
                agreement securing project obligations may be applied 
                annually to prepay the secured loan, without penalty.
                    ``(B) Use of proceeds of refinancing.--A secured 
                loan may be prepaid at any time without penalty from 
                the proceeds of refinancing from non-Federal funding 
                sources.
    ``(d) Sale of Secured Loans.--
            ``(1) In general.--Subject to paragraph (2), as soon as 
        practicable after substantial completion of a project and after 
        notifying the obligor, the Secretary may sell to another entity 
        or reoffer into the capital markets a secured loan for the 
        project if the Secretary determines that the sale or reoffering 
        can be made on favorable terms.
            ``(2) Consent of obligor.--In making a sale or reoffering 
        under paragraph (1), the Secretary may not change any original 
        term or condition of the secured loan without the written 
        consent of the obligor.
    ``(e) Loan Guarantees.--
            ``(1) In general.--The Secretary may provide a loan 
        guarantee to a lender in lieu of making a secured loan under 
        this section if the Secretary determines that the budgetary 
        cost of the loan guarantee is substantially the same as that of 
        a secured loan.
            ``(2) Terms.--The terms of a loan guarantee under paragraph 
        (1) shall be consistent with the terms required under this 
        section for a secured loan, except that the rate on the 
        guaranteed loan and any prepayment features shall be negotiated 
        between the obligor and the lender, with the consent of the 
        Secretary.

``SEC. 999D. CARBON DIOXIDE TRANSPORTATION INFRASTRUCTURE FUTURE GROWTH 
              GRANT PROGRAM.

    ``(a) Establishment.--The Secretary shall establish a program under 
which the Secretary may provide grants to pay a portion of the cost 
differential, with respect to any projected future increase in demand 
for carbon dioxide transportation by an infrastructure project 
described in subsection (b), between--
            ``(1) the cost of constructing the infrastructure asset 
        with the capacity to transport an increased flow rate of carbon 
        dioxide, as made practicable under the project; and
            ``(2) the cost of constructing the infrastructure asset 
        with the capacity to transport carbon dioxide at the flow rate 
        initially required, based on commitments for the use of the 
        asset.
    ``(b) Eligibility.--To be eligible to receive a grant under the 
program under this section, an entity shall--
            ``(1) be eligible to receive credit assistance under the 
        CIFIA program;
            ``(2) carry out, or propose to carry out, a project for 
        large-capacity, common carrier infrastructure with a probable 
        future increase in demand for carbon dioxide transportation; 
        and
            ``(3) submit to the Secretary an application at such time, 
        in such manner, and containing such information as the 
        Secretary determines to be appropriate.
    ``(c) Use of Funds.--A grant provided under this section may be 
used only to pay the costs of any additional flow rate capacity of a 
carbon dioxide transportation infrastructure asset that the project 
sponsor demonstrates to the satisfaction of the Secretary can 
reasonably be expected to be used during the 20-year period beginning 
on the date of substantial completion of the project described in 
subsection (b)(2).
    ``(d) Maximum Amount.--The amount of a grant provided under this 
section may not exceed an amount equal to 80 percent of the cost of the 
additional capacity described in subsection (a).

``SEC. 999E. PROGRAM ADMINISTRATION.

    ``(a) Requirement.--The Secretary shall establish a uniform system 
to service the Federal credit instruments made available under the 
CIFIA program.
    ``(b) Fees.--The Secretary may collect and spend fees, contingent 
on authority being provided in appropriations Acts, at a level that is 
sufficient to cover--
            ``(1) the costs of services of expert firms retained 
        pursuant to subsection (d); and
            ``(2) all or a portion of the costs to the Federal 
        Government of servicing the Federal credit instruments.
    ``(c) Servicer.--
            ``(1) In general.--The Secretary may appoint a financial 
        entity to assist the Secretary in servicing the Federal credit 
        instruments.
            ``(2) Duties.--A servicer appointed under paragraph (1) 
        shall act as the agent for the Secretary.
            ``(3) Fee.--A servicer appointed under paragraph (1) shall 
        receive a servicing fee, subject to approval by the Secretary.
    ``(d) Assistance From Expert Firms.--The Secretary may retain the 
services of expert firms, including counsel, in the field of municipal 
and project finance to assist in the underwriting and servicing of 
Federal credit instruments.
    ``(e) Expedited Processing.--The Secretary shall implement 
procedures and measures to economize the time and cost involved in 
obtaining approval and the issuance of credit assistance under the 
CIFIA program.

``SEC. 999F. STATE AND LOCAL PERMITS.

    ``The provision of credit assistance under the CIFIA program with 
respect to a project shall not--
            ``(1) relieve any recipient of the assistance of any 
        project obligation to obtain any required State or local permit 
        or approval with respect to the project;
            ``(2) limit the right of any unit of State or local 
        government to approve or regulate any rate of return on private 
        equity invested in the project; or
            ``(3) otherwise supersede any State or local law (including 
        any regulation) applicable to the construction or operation of 
        the project.

``SEC. 999G. REGULATIONS.

    ``The Secretary may promulgate such regulations as the Secretary 
determines to be appropriate to carry out--
            ``(1) the CIFIA program; and
            ``(2) the carbon dioxide transportation infrastructure 
        future growth grant program established under section 999D(a).

``SEC. 999H. FUNDING.

    ``(a) Funding.--
            ``(1) In general.--There are authorized to be appropriated 
        to the Secretary to carry out this subtitle, to remain 
        available until expended--
                    ``(A) $600,000,000 for each of fiscal years 2021 
                and 2022; and
                    ``(B) $300,000,000 for each of fiscal years 2023 
                through 2025.
            ``(2) Spending and borrowing authority.--Spending and 
        borrowing authority for a fiscal year to enter into Federal 
        credit instruments shall be promptly apportioned to the 
        Secretary on a fiscal-year basis.
            ``(3) Reestimates.--If the subsidy amount of a Federal 
        credit instrument is reestimated, the cost increase or decrease 
        of the reestimate shall be borne by, or benefit, the general 
        fund of the Treasury, consistent with section 504(f) of the 
        Congressional Budget Act of 1974 (2 U.S.C. 661c(f)).
            ``(4) Availability.--Amounts made available under this 
        subsection shall remain available until expended.
            ``(5) Administrative costs.--Of the amounts made available 
        to carry out the CIFIA program, the Secretary may use not more 
        than $8,500,000 (as indexed for United States dollar inflation 
        from the date of enactment of the Storing CO2 and Lowering 
        Emissions Act (as measured by the Consumer Price Index)) for 
        the administration of the CIFIA program.
    ``(b) Contract Authority.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, execution of a term sheet by the Secretary of a Federal 
        credit instrument that uses amounts made available under the 
        CIFIA program shall impose on the United States a contractual 
        obligation to fund the Federal credit investment.
            ``(2) Availability.--Amounts made available to carry out 
        the CIFIA program for a fiscal year shall be available for 
        obligation on October 1 of the fiscal year.''.
    (b) Technical Amendment.--The table of contents for the Energy 
Policy Act of 2005 (Public Law 109-58; 119 Stat. 600) is amended--
            (1) in the item relating to section 917, by striking 
        ``Efficiency'';
            (2) in the items relating to sections 957 through 959, by 
        inserting ``Sec.'' before ``95'' each place it appears; and
            (3) by striking the items relating to subtitle J of title 
        IX (relating to ultra-deepwater and unconventional natural gas 
        and other petroleum resources) 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. Carbon dioxide transportation infrastructure future growth 
                            grant program.
``Sec. 999E. Program administration.
``Sec. 999F. State and local permits.
``Sec. 999G. Regulations.
``Sec. 999H. Funding.''.

             TITLE III--GEOLOGIC STORAGE OF CAPTURED CARBON

SEC. 301. SECURE GEOLOGIC STORAGE INFRASTRUCTURE DEVELOPMENT PROGRAM.

    Section 963 of the Energy Policy Act of 2005 (42 U.S.C. 16293) is 
amended by adding at the end the following:
    ``(e) Large-Scale Carbon Storage Commercialization Program.--
            ``(1) In general.--The Secretary shall establish a program 
        to fund the development of dedicated commercial geologic carbon 
        dioxide storage sites that are designed to store not fewer than 
        50,000,000 metric tons of carbon dioxide, including by funding 
        activities to explore, characterize, and develop the storage 
        sites and associated carbon dioxide transport infrastructure.
            ``(2) Priority.--In carrying out the program established 
        under paragraph (1), the Secretary shall extend subsection 
        (c)(4)(B) to any project concerning a new or existing 
        commercial geological carbon dioxide storage site under this 
        subsection, and shall give priority to projects--
                    ``(A) with the largest carbon dioxide storage 
                capacity; or
                    ``(B) that will store carbon dioxide from multiple 
                carbon capture facilities.
            ``(3) Cost share.--The Secretary shall require cost sharing 
        for projects under the program established under paragraph (1) 
        in accordance with section 988.
            ``(4) Funding.--There are authorized to be appropriated to 
        carry out this subsection--
                    ``(A) for each of fiscal years 2021 through 2025, 
                $500,000,000; and
                    ``(B) for each of fiscal years 2026 through 2030, 
                such sums as may be necessary.''.

SEC. 302. SECURE GEOLOGIC STORAGE PERMITTING.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Class vi well.--The term ``Class VI well'' means a well 
        described in section 144.6(f) of title 40, Code of Federal 
        Regulations (or successor regulations).
    (b) Geologic Sequestration Permitting.--For the permitting of Class 
VI wells by the Administrator for the injection of carbon dioxide for 
the purpose of geologic sequestration in accordance with the 
requirements of the Safe Drinking Water Act (42 U.S.C. 300f et seq.) 
and the final rule of the Administrator entitled ``Federal Requirements 
Under the Underground Injection Control (UIC) Program for Carbon 
Dioxide (CO2) Geologic Sequestration (GS) Wells'' (75 Fed. Reg. 77230 
(December 10, 2010)), there are authorized to be appropriated--
            (1) for each of fiscal years 2021 through 2025, $5,000,000; 
        and
            (2) for each of fiscal years 2026 through 2030, such sums 
        as may be necessary.
    (c) State Permitting Program Grants.--
            (1) Establishment.--The Administrator shall award grants to 
        States that, pursuant to section 1422 of the Safe Drinking 
        Water Act (42 U.S.C. 300h-1), receive the approval of the 
        Administrator for a State underground injection control program 
        for permitting Class VI wells for the injection of carbon 
        dioxide.
            (2) Use of funds.--A State that receives a grant under 
        paragraph (1) shall use the amounts received under the grant to 
        defray the expenses of the State related to the establishment 
        and operation of a State underground injection control program 
        described in paragraph (1).
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subsection--
                    (A) for the period of fiscal years 2021 through 
                2025, $50,000,000; and
                    (B) for the period of fiscal years 2026 through 
                2030, such sums as may be necessary.
                                 <all>
```