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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3607 Introduced in House (IH)]

<DOC>

116th CONGRESS
  1st Session
                                H. R. 3607

 To amend the Energy Policy Act of 2005 to direct Federal research in 
   fossil energy and to promote the development and demonstration of 
environmentally responsible coal and natural gas technologies, and for 
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              July 2, 2019

 Mr. Veasey (for himself, Mr. Schweikert, Mr. Lamb, Mrs. Fletcher, and 
Ms. Johnson of Texas) introduced the following bill; which was referred 
           to the Committee on Science, Space, and Technology

_______________________________________________________________________

                                 A BILL

 
 To amend the Energy Policy Act of 2005 to direct Federal research in 
   fossil energy and to promote the development and demonstration of 
environmentally responsible coal and natural gas technologies, 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 ``Fossil Energy 
Research and Development Act of 2019''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Fossil energy objectives.
Sec. 4. Carbon capture technologies.
Sec. 5. Carbon storage validation and testing.
Sec. 6. Carbon utilization.
Sec. 7. Advanced energy systems.
Sec. 8. Rare earth elements.
Sec. 9. Methane hydrate research amendments.
Sec. 10. Carbon removal.
Sec. 11. Methane leak detection and mitigation.
Sec. 12. Waste gas utilization.
Sec. 13. National energy technology laboratory reforms.

SEC. 2. DEFINITIONS.

    For purposes of this Act:
            (1) Department.--The term ``Department'' means the 
        Department of Energy.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 3. FOSSIL ENERGY OBJECTIVES.

    Section 961 of the Energy Policy Act of 2005 (42 U.S.C. 16291) is 
amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (2) and inserting the 
                following:
            ``(2) Decreasing the cost of emissions control technologies 
        for fossil energy production, generation, and delivery.'';
                    (B) by striking paragraph (7) and inserting the 
                following:
            ``(7) Increasing the export of emissions control 
        technologies from the United States for fossil energy-related 
        equipment, technology, and services.''; and
                    (C) by adding at the end the following:
            ``(8) Improving the conversion, use, and storage of carbon 
        oxides.
            ``(9) Lowering greenhouse gas emissions for all fossil fuel 
        production, generation, delivery, and utilization, to the 
        maximum extent possible.
            ``(10) Preventing, predicting, monitoring, and mitigating 
        the unintended leaking of methane, carbon dioxide, or other 
        fossil fuel-related emissions into the atmosphere.
            ``(11) Reducing water use, improving water reuse, and 
        minimizing the surface and subsurface environmental impact in 
        the development of unconventional domestic oil and natural gas 
        resources.
            ``(12) Developing carbon removal and utilization 
        technologies, products, and methods that result in net 
        reductions in greenhouse gas emissions, including direct air 
        capture and storage and carbon use and reuse for commercial 
        application.'';
            (2) in subsection (b), by striking paragraphs (1) through 
        (3) and inserting the following:
            ``(1) $825,000,000 for fiscal year 2020;
            ``(2) $866,250,000 for fiscal year 2021;
            ``(3) $909,563,000 for fiscal year 2022;
            ``(4) $955,041,000 for fiscal year 2023; and
            ``(5) $1,002,793,000 for fiscal year 2024.''; and
            (3) by striking subsections (c) through (e) and inserting 
        the following:
    ``(c) Prioritization.--In carrying out this section, the Secretary 
shall prioritize technologies and strategies that have the potential to 
meet emissions reduction goals in the agreement of the twenty-first 
session of the Conference of the Parties to the United Nations 
Framework Convention on Climate Change.
    ``(d) Limitation.--None of the funds authorized under this section 
may be used for Fossil Energy Environmental Restoration or Import/
Export Authorization.''.

SEC. 4. CARBON CAPTURE TECHNOLOGIES.

    (a) Carbon Capture Program.--Section 962 of the Energy Policy Act 
of 2005 (42 U.S.C. 16292) is amended to read as follows:

``SEC. 962. CARBON CAPTURE TECHNOLOGIES.

    ``(a) In General.--The Secretary shall conduct a program of 
research, development, demonstration, and commercial application of 
carbon capture technologies, which shall include facilitation of the 
development and use of--
            ``(1) carbon capture technologies for coal and natural gas;
            ``(2) innovations to significantly decrease emissions at 
        existing power plants; and
            ``(3) advanced separation technologies.
    ``(b) Investment.--As a part of the program under subsection (a), 
the Secretary shall maintain robust investments in carbon capture 
technologies for coal and natural gas applications.
    ``(c) Large-Scale Pilots.--In carrying out this section, the 
Secretary is encouraged to support pilot projects that test carbon 
capture technologies on coal and natural gas power and industrial 
systems below the 100 megawatt scale, consistent with section 988(b).
    ``(d) Cost and Performance Goals.--In carrying out the program 
under subsection (a), the Secretary shall establish cost and 
performance goals to assist in the transition of carbon capture 
research to commercially viable technologies.
    ``(e) Carbon Capture Pilot Test Centers.--
            ``(1) In general.--As a part of the program under 
        subsection (a), not later than 1 year after the date of the 
        enactment of the Fossil Energy Research and Development Act of 
        2019, the Secretary shall award grants to eligible entities for 
        the operation of not less than three Carbon Capture Test 
        Centers (in this subsection, known as the `Centers') to provide 
        unique testing capabilities for innovative carbon capture 
        technologies for power and industrial systems.
            ``(2) Purpose.--Each Center shall--
                    ``(A) advance research, development, demonstration, 
                and commercial application of carbon capture 
                technologies for power and industrial systems; and
                    ``(B) test technologies that represent the scale of 
                technology development beyond laboratory testing, but 
                not yet advanced to testing under operational 
                conditions at commercial scale.
            ``(3) Application.--An entity seeking to operate a Center 
        under this subsection shall submit to the Secretary an 
        application at such time and in such manner as the Secretary 
        may require.
            ``(4) Priority criteria.--In selecting applications to 
        operate a Center under this subsection, the Secretary shall 
        prioritize applicants that--
                    ``(A) have access to existing or planned research 
                facilities with modular technology capabilities;
                    ``(B) are institutions of higher education with 
                established expertise in engineering and design for 
                carbon capture technologies, or partnerships with such 
                institutions;
                    ``(C) have access to existing research and test 
                facilities for pre-combustion, post-combustion, or oxy-
                combustion technologies; or
                    ``(D) have test capabilities to address scaling 
                challenges of integrating carbon capture technologies 
                with utility scale power plants.
            ``(5) Considerations.--In awarding grants for the operation 
        of the Centers under this subsection, the Secretary shall 
        ensure that--
                    ``(A) the portfolio of Centers includes a diverse 
                representation of regional and resource 
                characteristics; and
                    ``(B) each new Center demonstrates unique research 
                capabilities, unique regional benefits, or new 
                technology development opportunities.
            ``(6) Schedule.--Each grant to operate a Center under this 
        subsection shall be awarded for a term of not more than 5 
        years, subject to the availability of appropriations. The 
        Secretary may renew such 5-year term without limit, subject to 
        a rigorous merit review.
            ``(7) Termination.--To the extent otherwise authorized by 
        law, the Secretary may eliminate a Center during any 5-year 
        term described in paragraph (6) if such Center is 
        underperforming.
    ``(f) Demonstrations.--
            ``(1) In general.--As a part of the program under 
        subsection (a), the Secretary may provide grants for large-
        scale demonstration projects for power and industrial systems 
        that test the scale of technology necessary to gain the 
        operational data needed to understand the technical and 
        performance risks of the technology before the application of 
        the technology at commercial scale, in accordance with this 
        subsection.
            ``(2) Engineering and design studies.--The Secretary is 
        authorized to fund front-end engineering and design studies in 
        addition to, or in advance of, issuing an award for a 
        demonstration project under this subsection.
            ``(3) Application.--An entity seeking an award to conduct a 
        demonstration project under this subsection shall submit to the 
        Secretary an application at such time and in such manner as the 
        Secretary may require.
            ``(4) Limitations.--The Secretary shall only provide an 
        award under this subsection after reviewing each applicant and 
        application regarding--
                    ``(A) financial strength;
                    ``(B) construction schedule;
                    ``(C) market risk; and
                    ``(D) contractor history.
            ``(5) Requirements.--A demonstration project funded under 
        this subsection shall--
                    ``(A) utilize technologies that have completed 
                pilot-scale testing or the equivalent, as determined by 
                the Secretary;
                    ``(B) secure and maintain agreements for the 
                utilization or sequestration of captured carbon 
                dioxide; and
                    ``(C) upon completion, demonstrate carbon capture 
                technologies on a power or industrial system capable of 
                capturing not less than 100,000 tons of carbon dioxide 
                annually.
    ``(g) Definition of Power System.--In this section, the term `power 
system' means any electricity generating unit that utilizes fossil 
fuels to generate electricity provided to the electric grid or directly 
to a consumer.
    ``(h) Authorization of Appropriations.--For activities under this 
section, there are authorized to be appropriated to the Secretary--
            ``(1) $300,000,000 for fiscal year 2020;
            ``(2) $315,000,000 for fiscal year 2021;
            ``(3) $330,750,000 for fiscal year 2022;
            ``(4) $347,288,000 for fiscal year 2023; and
            ``(5) $364,652,000 for fiscal year 2024.''.
    (b) GAO Study.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Comptroller General of the United 
        States shall submit to the Committee on Science, Space, and 
        Technology of the House of Representatives and the Committee on 
        Energy and Natural Resources of the Senate a report on the 
        results of a study of the Department's successes, failures, 
        practices, and improvements in carrying out demonstration 
        projects for carbon capture technologies for power and 
        industrial systems. In conducting the study, the Comptroller 
        General shall consider--
                    (A) applicant and contractor qualifications;
                    (B) project management practices at the Department;
                    (C) economic or market changes and other factors 
                impacting project viability;
                    (D) completion of third-party agreements, including 
                power purchase agreements and carbon dioxide offtake 
                agreements;
                    (E) regulatory challenges; and
                    (F) construction challenges.
            (2) Consideration.--The Secretary shall consider any 
        relevant recommendations, as determined by the Secretary, 
        provided in the report required under paragraph (1), and shall 
        adopt such recommendations as the Secretary considers 
        appropriate.
            (3) Power system defined.--In this section, the term 
        ``power system'' means any electricity generating unit that 
        utilizes fossil fuels to generate electricity provided to the 
        electric grid or directly to a consumer.

SEC. 5. CARBON STORAGE VALIDATION AND TESTING.

    Section 963 of the Energy Policy Act of 2005 (42 U.S.C. 16293) is 
amended to read as follows:

``SEC. 963. CARBON STORAGE VALIDATION AND TESTING.

    ``(a) Carbon Storage.--The Secretary, in consultation with the 
Administrator of the Environmental Protection Agency, shall carry out a 
program of research, development, and demonstration for carbon storage. 
The program shall--
            ``(1) in coordination with relevant Federal agencies, 
        develop and maintain mapping tools and resources that assess 
        the capacity of geologic storage formations in the United 
        States;
            ``(2) develop monitoring tools, modeling of geologic 
        formations, and analyses to predict and verify carbon dioxide 
        containment and account for sequestered carbon dioxide in 
        geologic storage sites;
            ``(3) research potential environmental, safety, and health 
        impacts in the event of a leak to the atmosphere or to an 
        aquifer, and any corresponding mitigation actions or responses 
        to limit harmful consequences;
            ``(4) evaluate the interactions of carbon dioxide with 
        formation solids and fluids, including the propensity of 
        injections to induce seismic activity;
            ``(5) assess and ensure the safety of operations related to 
        geologic sequestration of carbon dioxide;
            ``(6) determine the fate of carbon dioxide concurrent with 
        and following injection into geologic formations;
            ``(7) support cost and business model assessments to 
        examine the economic viability of technologies and systems 
        developed under this program; and
            ``(8) provide information to State, local, and Tribal 
        governments, the Environmental Protection Agency, and other 
        appropriate entities, to support development of a regulatory 
        framework for commercial-scale sequestration operations that 
        ensure the protection of human health and the environment.
    ``(b) Geologic Settings.--In carrying out research activities under 
this section, the Secretary shall consider a variety of candidate 
geologic settings, both onshore and offshore, including--
            ``(1) operating oil and gas fields;
            ``(2) depleted oil and gas fields;
            ``(3) residual oil zones;
            ``(4) unconventional reservoirs and rock types;
            ``(5) unmineable coal seams;
            ``(6) saline formations in both sedimentary and basaltic 
        geologies;
            ``(7) geologic systems that may be used as engineered 
        reservoirs to extract economical quantities of brine from 
        geothermal resources of low permeability or porosity; and
            ``(8) geologic systems containing in situ carbon dioxide 
        mineralization formations.
    ``(c) Regional Carbon Sequestration Partnerships.--
            ``(1) In general.--The Secretary shall carry out large-
        scale carbon sequestration demonstrations for geologic 
        containment of carbon dioxide to collect and validate 
        information on the cost and feasibility of commercial 
        deployment of technologies for the geologic containment of 
        carbon dioxide. The Secretary may fund new demonstrations or 
        expand the work completed at one or more of the existing 
        regional carbon sequestration partnerships.
            ``(2) Demonstration components.--Each demonstration 
        described in paragraph (1) shall include longitudinal tests 
        involving carbon dioxide injection and monitoring, mitigation, 
        and verification operations.
            ``(3) Clearinghouse.--The National Energy Technology 
        Laboratory shall act as a clearinghouse of shared information 
        and resources for the regional carbon sequestration 
        partnerships and any new demonstrations funded under this 
        section.
            ``(4) Report.--Not later than 1 year after the date of 
        enactment of the Fossil Energy Research and Development Act of 
        2019, the Secretary shall provide to the Committee on Science, 
        Space, and Technology of the House of Representatives and the 
        Committee on Energy and Natural Resources of the Senate a 
        report that--
                    ``(A) assesses the progress of all regional carbon 
                sequestration partnerships;
                    ``(B) identifies the remaining challenges in 
                achieving carbon sequestration that is reliable and 
                safe for the environment and public health; and
                    ``(C) creates a roadmap for Department of Energy 
                carbon storage research and development activities 
                through 2030 with the goal of reducing economic and 
                policy barriers to commercial carbon sequestration.
            ``(5) Large-scale carbon sequestration.--For purposes of 
        this subsection, `large-scale carbon sequestration' means a 
        scale that demonstrates the ability to inject and sequester 
        several million metric tons carbon dioxide for at least 10 
        years.
    ``(d) Integrated Storage Projects.--The Secretary may carry out a 
program for the purpose of transitioning the large-scale carbon 
sequestration demonstration projects under subsection (c) into 
integrated, commercial storage complexes. The program shall focus on--
            ``(1) qualifying geologic storage sites in order to accept 
        large volumes of carbon dioxide acceptable for commercial 
        contracts;
            ``(2) understanding the technical and commercial viability 
        of storage sites;
            ``(3) developing the qualification processes that will be 
        necessary for a diverse range of geologic storage sites to 
        commercially accept carbon dioxide; and
            ``(4) any other activities the Secretary determines 
        necessary to transition the large scale demonstration storage 
        projects into commercial ventures.
    ``(e) Cost Sharing.--The Secretary shall require cost sharing under 
this section in accordance with section 988.
    ``(f) Authorization of Appropriations.--For activities under this 
section, there are authorized to be appropriated to the Secretary--
            ``(1) $120,000,000 for fiscal year 2020;
            ``(2) $126,000,000 for fiscal year 2021;
            ``(3) $132,300,000 for fiscal year 2022;
            ``(4) $138,915,000 for fiscal year 2023; and
            ``(5) $145,860,750 for fiscal year 2024.''.

SEC. 6. CARBON UTILIZATION.

    (a) Program.--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.

    ``(a) In General.--The Secretary shall carry out a program of 
research, development, and demonstration for carbon utilization. The 
program shall--
            ``(1) assess and monitor potential changes in life cycle 
        carbon dioxide and other greenhouse gas emissions, and other 
        environmental safety indicators of new technologies, practices, 
        processes, or methods, used in enhanced hydrocarbon recovery as 
        part of the activities authorized in section 963 of the Energy 
        Policy Act of 2005 (42 U.S.C. 16293);
            ``(2) identify and evaluate novel uses for carbon, 
        including the conversion of carbon dioxide, in a manner that, 
        on a full life-cycle basis, achieves a permanent reduction in, 
        or avoidance of a net increase in carbon dioxide in the 
        atmosphere, for use in commercial and industrial products, such 
        as--
                    ``(A) chemicals;
                    ``(B) plastics;
                    ``(C) building materials;
                    ``(D) fuels;
                    ``(E) cement;
                    ``(F) products of coal utilization in power systems 
                (as such term is defined in section 962(e)), or other 
                applications; or
                    ``(G) other products with demonstrated market 
                value;
            ``(3) carbon capture technologies for industrial systems;
            ``(4) identify and assess alternative uses for coal that 
        result in no net emissions of carbon dioxide or other 
        pollutants, including products derived from carbon engineering, 
        carbon fiber, and coal conversion methods.
    ``(b) Authorization of Appropriations.--For activities under this 
section, there are authorized to be appropriated to the Secretary--
            ``(1) $25,000,000 for fiscal year 2020;
            ``(2) $26,250,000 for fiscal year 2021;
            ``(3) $27,562,500 for fiscal year 2022;
            ``(4) $28,940,625 for fiscal year 2023; and
            ``(5) $30,387,656 for fiscal year 2024.''.
    (b) Study.--The Secretary shall enter into an agreement with the 
National Academies to conduct a study assessing the barriers, and 
opportunities related to the commercial application of carbon dioxide 
in the United States. Such study shall--
            (1) analyze the technical feasibility, related challenges, 
        and impacts to commercializing carbon dioxide, including--
                    (A) creating a national system of carbon dioxide 
                pipelines and geologic sequestration sites;
                    (B) mitigating environmental and landowner impacts; 
                and
                    (C) regional economic challenges and opportunities;
            (2) identify potential markets, industries, or sectors that 
        may benefit from greater access to commercial carbon dioxide;
            (3) assess the current state of infrastructure and any 
        necessary updates to allow for the integration of safe and 
        reliable carbon dioxide transportation, utilization, and 
        storage;
            (4) estimate the economic, climate, and environmental 
        impacts of any well-integrated national carbon dioxide pipeline 
        system, including suggestions for policies that could improve 
        the economic impact of the system;
            (5) assess the global status and progress of carbon 
        utilization technologies (both chemical and biological) in 
        practice today that utilize waste carbon (including carbon 
        dioxide, carbon monoxide, methane, and biogas) from power 
        generation, biofuels production, and other industrial 
        processes;
            (6) identify emerging technologies and approaches for 
        carbon utilization that show promise for scale-up, 
        demonstration, deployment, and commercialization;
            (7) analyze the factors associated with making carbon 
        utilization technologies viable at a commercial scale, 
        including carbon waste stream availability, economics, market 
        capacity, energy and lifecycle requirements;
            (8) assess the major technical challenges associated with 
        increasing the commercial viability of carbon reuse 
        technologies, and identify the research and development 
        questions that will address those challenges;
            (9) assess current research efforts, including engineering 
        and computational, that are addressing these challenges and 
        identify gaps in the current research portfolio; and
            (10) develop a comprehensive research agenda that addresses 
        both long- and short-term research needs and opportunities.

SEC. 7. ADVANCED ENERGY SYSTEMS.

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

``SEC. 969A. ADVANCED ENERGY SYSTEMS.

    ``(a) In General.--The Secretary shall conduct a program, with the 
purpose of reducing emissions from fossil fuel power generation by not 
less than 50 percent, of research, development, demonstration, and 
commercial application with respect to the following:
            ``(1) High-efficiency turbines for any advanced power 
        system that will lead to natural gas turbine combined cycle 
        efficiency of 67 percent or combustion turbine efficiency of 50 
        percent.
            ``(2) Supercritical and ultrasupercritical carbon dioxide, 
        with an emphasis on developing directly-fired and indirectly 
        fired cycles in the next 10 years.
            ``(3) Advanced combustion systems, including oxy-combustion 
        systems and chemical looping.
            ``(4) Fuel cell technologies for low-cost, high-efficiency, 
        fuel-flexible, modular power systems, including solid oxide 
        fuel cell technology for commercial, residential, and 
        distributed generation systems, using improved manufacturing 
        production and processes.
            ``(5) Gasification systems to enable carbon capture, 
        improve efficiency, and reduce capital and operating costs.
            ``(6) Thermal cycling with ramping or rapid black start 
        capabilities that do not compromise efficiency or environmental 
        performance.
            ``(7) Small-scale and modular coal-fired technologies with 
        reduced carbon outputs or carbon capture that can support 
        incremental power generation capacity additions.
    ``(b) Priority.--In carrying out the program under subsection (a), 
the Secretary is encouraged to prioritize transformational technologies 
that enable a step change in reduction of emissions as compared to the 
technology in existence on the date of enactment of this section.
    ``(c) Authorization of Appropriations.--For activities under this 
section, there are authorized to be appropriated to the Secretary--
            ``(1) $150,000,000 for fiscal year 2020;
            ``(2) $157,500,000 for fiscal year 2021;
            ``(3) $165,375,000 for fiscal year 2022;
            ``(4) $173,643,750 for fiscal year 2023; and
            ``(5) $182,325,938 for fiscal year 2024.''.

SEC. 8. RARE EARTH ELEMENTS.

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

``SEC. 969B. RARE EARTH ELEMENTS.

    ``(a) In General.--In coordination with the relevant Federal 
agencies, the Secretary shall conduct research to develop and assess 
methods to separate and recover rare earth elements and other strategic 
minerals and coproducts from coal and coal byproduct streams. The 
program shall--
            ``(1) develop advanced rare earth element separation and 
        extraction processes using coal-based resources as feedstock 
        materials;
            ``(2) assess the technical and economic feasibility of 
        recovering rare earth elements from coal-based resources and 
        validate such feasibility with prototype systems producing 
        salable, high-purity rare earth elements from coal-based 
        resources; and
            ``(3) assess and mitigate any environmental and public 
        health impacts of recovering rare earth elements from coal-
        based resources.
    ``(b) Authorization of Appropriations.--For activities under this 
section, there are authorized to be appropriated to the Secretary--
            ``(1) $23,000,000 for fiscal year 2020;
            ``(2) $24,150,000 for fiscal year 2021;
            ``(3) $25,357,500 for fiscal year 2022;
            ``(4) $26,625,375 for fiscal year 2023; and
            ``(5) $27,956,644 for fiscal year 2024.''.

SEC. 9. METHANE HYDRATE RESEARCH AMENDMENTS.

    (a) In General.--Section 4(b) of the Methane Hydrate Research and 
Development Act of 2000 (30 U.S.C. 2003(b)) is amended to read as 
follows:
    ``(b) Grants, Contracts, Cooperative Agreements, Interagency Funds 
Transfer Agreements, and Field Work Proposals.--
            ``(1) Assistance and coordination.--In carrying out the 
        program of methane hydrate research and development authorized 
        by this section, the Secretary may award grants, or enter into 
        contracts or cooperative agreements to--
                    ``(A) conduct research to identify the 
                environmental, health, and safety impacts of methane 
                hydrate development;
                    ``(B) assess and develop technologies to mitigate 
                environmental impacts of the exploration and commercial 
                development of methane hydrates as an energy resource, 
                including the use of seismic testing, and to reduce the 
                public health and safety risks of drilling through 
                methane hydrates;
                    ``(C) conduct research to assess and mitigate the 
                environmental impact of hydrate degassing (including 
                natural degassing and degassing associated with 
                commercial development); or
                    ``(D) expand education and training programs in 
                methane hydrate resource research and resource 
                development through fellowships or other means for 
                graduate education and training.
            ``(2) Environmental monitoring and research.--The Secretary 
        shall conduct a long-term environmental monitoring and research 
        program to study the effects of production from methane hydrate 
        reservoirs.
            ``(3) Competitive peer review.--Funds made available to 
        carry out paragraphs (1) and (2) shall be made available based 
        on a competitive process using external scientific peer review 
        of proposed research.''.
    (b) Conforming Amendment.--Section 4(e) of such Act (30 U.S.C. 
2003(e)) is amended in the matter preceding paragraph (1) by striking 
``subsection (b)(1)'' and inserting ``paragraphs (1) and (2) of 
subsection (b)''.
    (c) Authorization of Appropriations.--Section 7 of such Act (30 
U.S.C. 2006) is amended to read as follows:

``SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to the Secretary to carry 
out this Act $15,000,000, to remain available until expended, for each 
of fiscal years 2020 through 2024.''.

SEC. 10. CARBON REMOVAL.

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

``SEC. 969C. CARBON REMOVAL.

    ``(a) Establishment.--The Secretary, in coordination with the 
appropriate Federal agencies, shall establish a research, development, 
and demonstration program to remove carbon dioxide from the atmosphere 
on a large scale. The program may include activities in--
            ``(1) direct air capture and storage technologies;
            ``(2) enhanced carbon mineralization;
            ``(3) bioenergy with carbon capture and sequestration;
            ``(4) agricultural and grazing practices;
            ``(5) forest management and afforestation; and
            ``(6) planned or managed carbon sinks, including natural 
        and artificial.
    ``(b) Prioritization.--In carrying out the program established in 
subsection (a), the Secretary shall prioritize--
            ``(1) the activities described in paragraphs (1) and (2) of 
        subsection (a), acting through the Assistant Secretary for 
        Fossil Energy; and
            ``(2) the activities described in subsection (a)(3), acting 
        through the Assistant Secretary for Energy Efficiency and 
        Renewable Energy and the Assistant Secretary for Fossil Energy.
    ``(c) Considerations.--The program under this section shall 
identify and develop carbon removal technologies and strategies that 
consider the following:
            ``(1) Land use changes, including impacts on natural and 
        managed ecosystems.
            ``(2) Ocean acidification.
            ``(3) Net greenhouse gas emissions.
            ``(4) Commercial viability.
            ``(5) Potential for near-term impact.
            ``(6) Potential for carbon reductions on a gigaton scale.
            ``(7) Economic co-benefits.
    ``(d) Accounting.--The Department shall collaborate with the 
Environmental Protection Agency and other relevant agencies to develop 
and improve accounting frameworks and tools to accurately measure 
carbon removal and sequestration methods and technologies across the 
Federal Government.
    ``(e) Air Capture Technology Prize.--Not later than 1 year after 
the date of enactment of this Act, as part of the program carried out 
under this section, the Secretary shall carry out a program to award 
competitive technology prizes for carbon dioxide capture from ambient 
air or water. In carrying out this subsection, the Secretary shall--
            ``(1) in accordance with section 24 of the Stevenson-Wydler 
        Technology Innovation Act of 1980 (15 U.S.C. 3719), develop 
        requirements for--
                    ``(A) the prize competition process;
                    ``(B) minimum performance standards for projects 
                eligible to participate in the prize competition; and
                    ``(C) monitoring and verification procedures for 
                projects selected to receive a prize award;
            ``(2) establish minimum levels for the capture of carbon 
        dioxide from ambient air or water that are required to qualify 
        for a prize award; and
            ``(3) offer prize awards for any of the following:
                    ``(A) A design for a promising capture technology 
                that will--
                            ``(i) be operated on a demonstration scale; 
                        and
                            ``(ii) have the potential to achieve 
                        significant reduction in the level of carbon 
                        dioxide in the atmosphere.
                    ``(B) A successful bench-scale demonstration of a 
                capture technology.
                    ``(C) An operational capture technology on a 
                commercial scale.
    ``(f) Direct Air Capture Test Center.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of the Fossil Energy Research and Development Act of 
        2019, the Secretary shall award grants to one or more eligible 
        entities for the operation of one or more test centers (in this 
        subsection, known as `Centers') to provide unique testing 
        capabilities for innovative direct air capture and storage 
        technologies.
            ``(2) Purpose.--Each Center shall--
                    ``(A) advance research, development, demonstration, 
                and commercial application of direct air capture and 
                storage technologies;
                    ``(B) support pilot plant and full-scale 
                demonstration projects and test technologies that 
                represent the scale of technology development beyond 
                laboratory testing but not yet advanced to test under 
                operational conditions at commercial scale;
                    ``(C) develop front-end engineering design and 
                economic analysis; and
                    ``(D) maintain a public record of pilot and full-
                scale plant performance.
            ``(3) Priority criteria.--In selecting applications to 
        operate a Center under this subsection, the Secretary shall 
        prioritize applicants that--
                    ``(A) have access to existing or planned research 
                facilities;
                    ``(B) are institutions of higher education with 
                established expertise in engineering for direct air 
                capture technologies, or partnerships with such 
                institutions; or
                    ``(C) have access to existing research and test 
                facilities for bulk materials design and testing, 
                component design and testing, or professional 
                engineering design.
            ``(4) Schedule.--Each grant to operate a Center under this 
        subsection shall be awarded for a term of not more than 5 
        years, subject to the availability of appropriations. The 
        Secretary may renew such 5-year term without limit, subject to 
        a rigorous merit review.
            ``(5) Termination.--To the extent otherwise authorized by 
        law, the Secretary may eliminate the center during any 5-year 
        term described in the last paragraph if it is underperforming.
    ``(g) Large-Scale Pilots and Demonstrations.--In supporting the 
technology development activities under this section, the Secretary is 
encouraged to support carbon removal pilot and demonstration projects, 
including--
            ``(1) pilot projects that test direct air capture systems 
        capable of capturing 10 to 100 tonnes of carbon oxides per year 
        to provide data for demonstration-scale projects; and
            ``(2) direct air capture demonstration projects capable of 
        capturing greater than 1,000 tonnes of carbon oxides per year.
    ``(h) Intra-Agency Research.--In carrying out the program 
established in (a), the Secretary shall encourage and promote 
collaborations among relevant offices and agencies within the 
Department.
    ``(i) Authorization of Appropriations.--For activities under this 
section, there are authorized to be appropriated to the Secretary--
            ``(1) $75,000,000 for fiscal year 2020, $15,000,000 of 
        which are authorized to carry out subsection (e);
            ``(2) $63,000,000 for fiscal year 2021;
            ``(3) $66,150,000 for fiscal year 2022;
            ``(4) $69,458,000 for fiscal year 2023; and
            ``(5) $72,930,000 for fiscal year 2024.''.

SEC. 11. METHANE LEAK DETECTION AND MITIGATION.

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

``SEC. 969D. METHANE LEAK DETECTION AND MITIGATION.

    ``(a) In General.--The Secretary, in consultation with the 
Administrator of the Environmental Protection Agency and other 
appropriate Federal agencies, shall carry out a program of methane leak 
detection and mitigation research, development, demonstration, and 
commercial application for technologies and methods that significantly 
reduce emissions. In carrying out the program, the Secretary shall--
            ``(1) develop cooperative agreements with State or local 
        governments or private entities to provide technical assistance 
        to--
                    ``(A) prevent or respond to methane leaks, 
                including detection, mitigation, and identification of 
                leaks throughout the natural gas infrastructure (which 
                includes natural gas storage, pipelines, and natural 
                gas production sites); and
                    ``(B) protect public health in the event of a major 
                methane leak;
            ``(2) promote demonstration and adoption of effective 
        methane emissions-reduction technologies in the private sector;
            ``(3) in coordination with representatives from private 
        industry, State and local governments, and institutions of 
        higher education, create a publicly accessible resource for 
        best practices in the design, construction, maintenance, 
        performance, monitoring, and incident response for--
                    ``(A) pipeline systems;
                    ``(B) wells;
                    ``(C) compressor stations;
                    ``(D) storage facilities; and
                    ``(E) other vulnerable infrastructure;
            ``(4) identify high-risk characteristics of pipelines, 
        wells, and materials, geologic risk factors, or other key 
        factors that increase the likelihood of methane leaks; and
            ``(5) in collaboration with private entities and 
        institutions of higher education, quantify and map significant 
        geologic methane seeps across the United States.
    ``(b) Considerations.--In carrying out the program under this 
section, the Secretary shall consider the following:
            ``(1) Historical data of methane leaks.
            ``(2) Public health consequences.
            ``(3) Public safety.
            ``(4) Novel materials and designs for pipelines, compressor 
        stations, components, and wells (including casing, cement, 
        wellhead).
            ``(5) Regional geologic traits.
            ``(6) Induced and natural seismicity.
    ``(c) Authorization of Appropriations.--For activities under this 
section, there are authorized to be appropriated to the Secretary--
            ``(1) $22,000,000 for fiscal year 2020;
            ``(2) $23,100,000 for fiscal year 2021;
            ``(3) $24,255,000 for fiscal year 2022;
            ``(4) $25,467,750 for fiscal year 2023; and
            ``(5) $26,741,138 for fiscal year 2024.''.

SEC. 12. WASTE GAS UTILIZATION.

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

``SEC. 969E. WASTE GAS UTILIZATION.

    ``The Secretary shall carry out a program of research, development, 
and demonstration for waste gas utilization. The program shall--
            ``(1) identify and evaluate novel uses for light 
        hydrocarbons, such as methane, ethane, propane, butane, 
        pentane, and hexane, produced during oil and shale gas 
        production, including the production of chemicals or 
        transportation fuels;
            ``(2) develop advanced gas conversion technologies that are 
        modular and compact, and may leverage advanced manufacturing 
        technologies;
            ``(3) support demonstration activities at operating oil and 
        gas facilities to test the performance and cost-effectiveness 
        of new gas conversion technologies; and
            ``(4) assess and monitor potential changes in life cycle 
        greenhouse gas emissions that may result from the use of 
        technologies developed under this program.''.

SEC. 13. NATIONAL ENERGY TECHNOLOGY LABORATORY REFORMS.

    (a) Special Hiring Authority for Scientific, Engineering, and 
Project Management Personnel.--
            (1) In general.--The Director of the National Energy 
        Technology Laboratory shall have the authority to--
                    (A) make appointments to positions in the 
                Laboratory to assist in meeting a specific project or 
                research need, without regard to civil service laws, of 
                individuals who--
                            (i) have an advanced scientific or 
                        engineering background; or
                            (ii) have a business background and can 
                        assist in specific technology-to-market needs;
                    (B) fix the basic pay of any employee appointed 
                under this section at a rate not to exceed level II of 
                the Executive Schedule; and
                    (C) pay any employee appointed under this section 
                payments in addition to basic pay, except that the 
                total amount of additional payments paid to an employee 
                under this subsection for any 12-month period shall not 
                exceed the least of--
                            (i) $25,000;
                            (ii) the amount equal to 25 percent of the 
                        annual rate of basic pay of that employee; and
                            (iii) the amount of the limitation that is 
                        applicable for a calendar year under section 
                        5307(a)(1) of title 5, United States Code.
            (2) Limitations.--
                    (A) In general.--The term of any employee appointed 
                under this section shall not exceed 3 years.
                    (B) Full-time employees.--Not more than 10 full-
                time employees appointed under this subsection may be 
                employed at the National Energy Technology Laboratory 
                at any given time.
    (b) Discretionary Research and Development.--
            (1) In general.--The Secretary shall establish mechanisms 
        under which the Director of the National Energy Technology 
        Laboratory may use an amount that is, in total, not less than 2 
        percent and not more than 4 percent of all funds available to 
        the Laboratory for the following purposes:
                    (A) To fund innovative research that is conducted 
                at the Laboratory and supports the mission of the 
                Department.
                    (B) To fund technology development programs that 
                support the transition of technologies developed by the 
                Laboratory into the commercial market.
                    (C) To fund workforce development activities to 
                strengthen external engineering and manufacturing 
                partnerships to ensure safe, efficient, productive, and 
                useful fossil energy technology production.
                    (D) To fund the revitalization, recapitalization, 
                or minor construction of the Laboratory infrastructure.
            (2) Prioritization.--The Director shall prioritize 
        innovative experiments and proposals proposed by scientists and 
        researchers at the National Energy Technology Laboratory.
            (3) Annual report on use of authority.--Not later than 
        March 1 of each year, the Secretary shall submit to the 
        Committee on Science, Space, and Technology of the House of 
        Representatives and the Committee on Energy and Natural 
        Resources of the Senate a report on the use of the authority 
        under this subsection during the preceding fiscal year.
    (c) Laboratory Operations.--The Secretary shall delegate human 
resources operations of the National Energy Technology Laboratory to 
the Director of the National Energy Technology Laboratory.
    (d) Review.--Not later than 2 years after the date of enactment of 
this Act, the Secretary shall submit to the Committee on Science, 
Space, and Technology of the House of Representatives and the Committee 
on Energy and Natural Resources of the Senate a report assessing the 
National Energy Technology Laboratory's management and research. The 
report shall include--
            (1) an assessment of the quality of science and research at 
        the National Energy Technology Laboratory relative to similar 
        work at other national laboratories;
            (2) a review of the effectiveness of authorities provided 
        in subsections (a) and (b); and
            (3) recommendations for policy changes within the 
        Department and legislative changes to provide the National 
        Energy Technology Laboratory the necessary tools and resources 
        to advance its research mission.
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