I 

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. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Fossil Energy Research and Development Act of 2019’’. 

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

7 this Act is as follows: 


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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. 

1 SEC. 2. DEFINITIONS. 

2 For purposes of this Act: 

3 (1) DEPARTMENT.—The term ‘‘Department’’ 

4 means the Department of Energy. 

5 (2) SECRETARY.—The term ‘‘Secretary’’ means 

6 the Secretary of Energy. 

7 SEC. 3. FOSSIL ENERGY OBJECTIVES. 

8 Section 961 of the Energy Policy Act of 2005 (42 

9 U.S.C. 16291) is amended— 

10 (1) in subsection (a)— 

11 (A) by striking paragraph (2) and insert12 ing the following: 

13 ‘‘(2) Decreasing the cost of emissions control 

14 technologies for fossil energy production, generation, 

15 and delivery.’’; 

16 (B) by striking paragraph (7) and insert17 ing the following: 

18 ‘‘(7) Increasing the export of emissions control 

19 technologies from the United States for fossil enVerDate Sep 11 2014 23:26 Jul 11, 2019 Jkt 034408 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3607.IH H3607

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1 ergy-related equipment, technology, and services.’’; 

2 and 

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

4 ‘‘(8) Improving the conversion, use, and storage 

5 of carbon oxides. 

6 ‘‘(9) Lowering greenhouse gas emissions for all 

7 fossil fuel production, generation, delivery, and utili8 zation, to the maximum extent possible. 

9 ‘‘(10) Preventing, predicting, monitoring, and 

10 mitigating the unintended leaking of methane, car11 bon dioxide, or other fossil fuel-related emissions 

12 into the atmosphere. 

13 ‘‘(11) Reducing water use, improving water 

14 reuse, and minimizing the surface and subsurface 

15 environmental impact in the development of uncon16 ventional domestic oil and natural gas resources. 

17 ‘‘(12) Developing carbon removal and utiliza18 tion technologies, products, and methods that result 

19 in net reductions in greenhouse gas emissions, in20 cluding direct air capture and storage and carbon 

21 use and reuse for commercial application.’’; 

22 (2) in subsection (b), by striking paragraphs 

23 (1) through (3) and inserting the following: 

24 ‘‘(1) $825,000,000 for fiscal year 2020; 

25 ‘‘(2) $866,250,000 for fiscal year 2021; 


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1 ‘‘(3) $909,563,000 for fiscal year 2022; 

2 ‘‘(4) $955,041,000 for fiscal year 2023; and 

3 ‘‘(5) $1,002,793,000 for fiscal year 2024.’’; and 

4 (3) by striking subsections (c) through (e) and 

5 inserting the following: 

6 ‘‘(c) PRIORITIZATION.—In carrying out this section, 

7 the Secretary shall prioritize technologies and strategies 

8 that have the potential to meet emissions reduction goals 

9 in the agreement of the twenty-first session of the Con10 ference of the Parties to the United Nations Framework 

11 Convention on Climate Change. 

12 ‘‘(d) LIMITATION.—None of the funds authorized 

13 under this section may be used for Fossil Energy Environ14 mental Restoration or Import/Export Authorization.’’. 

15 SEC. 4. CARBON CAPTURE TECHNOLOGIES. 

16 (a) CARBON CAPTURE PROGRAM.—Section 962 of 

17 the Energy Policy Act of 2005 (42 U.S.C. 16292) is 

18 amended to read as follows: 

19 ‘‘SEC. 962. CARBON CAPTURE TECHNOLOGIES. 

20 ‘‘(a) IN GENERAL.—The Secretary shall conduct a 

21 program of research, development, demonstration, and 

22 commercial application of carbon capture technologies, 

23 which shall include facilitation of the development and use 

24 of— 


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1 ‘‘(1) carbon capture technologies for coal and 

2 natural gas; 

3 ‘‘(2) innovations to significantly decrease emis4 sions at existing power plants; and 

5 ‘‘(3) advanced separation technologies. 

6 ‘‘(b) INVESTMENT.—As a part of the program under 

7 subsection (a), the Secretary shall maintain robust invest8 ments in carbon capture technologies for coal and natural 

9 gas applications. 

10 ‘‘(c) LARGE-SCALE PILOTS.—In carrying out this 

11 section, the Secretary is encouraged to support pilot 

12 projects that test carbon capture technologies on coal and 

13 natural gas power and industrial systems below the 100 

14 megawatt scale, consistent with section 988(b). 

15 ‘‘(d) COST AND PERFORMANCE GOALS.—In carrying 

16 out the program under subsection (a), the Secretary shall 

17 establish cost and performance goals to assist in the tran18 sition of carbon capture research to commercially viable 

19 technologies. 

20 ‘‘(e) CARBON CAPTURE PILOT TEST CENTERS.— 

21 ‘‘(1) IN GENERAL.—As a part of the program 

22 under subsection (a), not later than 1 year after the 

23 date of the enactment of the Fossil Energy Research 

24 and Development Act of 2019, the Secretary shall 

25 award grants to eligible entities for the operation of 


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1 not less than three Carbon Capture Test Centers (in 

2 this subsection, known as the ‘Centers’) to provide 

3 unique testing capabilities for innovative carbon cap4 ture technologies for power and industrial systems. 

5 ‘‘(2) PURPOSE.—Each Center shall— 

6 ‘‘(A) advance research, development, dem7 onstration, and commercial application of car8 bon capture technologies for power and indus9 trial systems; and 

10 ‘‘(B) test technologies that represent the 

11 scale of technology development beyond labora12 tory testing, but not yet advanced to testing 

13 under operational conditions at commercial 

14 scale. 

15 ‘‘(3) APPLICATION.—An entity seeking to oper16 ate a Center under this subsection shall submit to 

17 the Secretary an application at such time and in 

18 such manner as the Secretary may require. 

19 ‘‘(4) PRIORITY CRITERIA.—In selecting applica20 tions to operate a Center under this subsection, the 

21 Secretary shall prioritize applicants that— 

22 ‘‘(A) have access to existing or planned re23 search facilities with modular technology capa24 bilities; 


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1 ‘‘(B) are institutions of higher education 

2 with established expertise in engineering and 

3 design for carbon capture technologies, or part4 nerships with such institutions; 

5 ‘‘(C) have access to existing research and 

6 test facilities for pre-combustion, post-combus7 tion, or oxy-combustion technologies; or 

8 ‘‘(D) have test capabilities to address scal9 ing challenges of integrating carbon capture 

10 technologies with utility scale power plants. 

11 ‘‘(5) CONSIDERATIONS.—In awarding grants 

12 for the operation of the Centers under this sub13 section, the Secretary shall ensure that— 

14 ‘‘(A) the portfolio of Centers includes a di15 verse representation of regional and resource 

16 characteristics; and 

17 ‘‘(B) each new Center demonstrates unique 

18 research capabilities, unique regional benefits, 

19 or new technology development opportunities. 

20 ‘‘(6) SCHEDULE.—Each grant to operate a 

21 Center under this subsection shall be awarded for a 

22 term of not more than 5 years, subject to the avail23 ability of appropriations. The Secretary may renew 

24 such 5-year term without limit, subject to a rigorous 

25 merit review. 


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1 ‘‘(7) TERMINATION.—To the extent otherwise 

2 authorized by law, the Secretary may eliminate a 

3 Center during any 5-year term described in para4 graph (6) if such Center is underperforming. 

5 ‘‘(f) DEMONSTRATIONS.— 

6 ‘‘(1) IN GENERAL.—As a part of the program 

7 under subsection (a), the Secretary may provide 

8 grants for large-scale demonstration projects for 

9 power and industrial systems that test the scale of 

10 technology necessary to gain the operational data 

11 needed to understand the technical and performance 

12 risks of the technology before the application of the 

13 technology at commercial scale, in accordance with 

14 this subsection. 

15 ‘‘(2) ENGINEERING AND DESIGN STUDIES.— 

16 The Secretary is authorized to fund front-end engi17 neering and design studies in addition to, or in ad18 vance of, issuing an award for a demonstration 

19 project under this subsection. 

20 ‘‘(3) APPLICATION.—An entity seeking an 

21 award to conduct a demonstration project under this 

22 subsection shall submit to the Secretary an applica23 tion at such time and in such manner as the Sec24 retary may require. 


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1 ‘‘(4) LIMITATIONS.—The Secretary shall only 

2 provide an award under this subsection after review3 ing each applicant and application regarding— 

4 ‘‘(A) financial strength; 

5 ‘‘(B) construction schedule; 

6 ‘‘(C) market risk; and 

7 ‘‘(D) contractor history. 

8 ‘‘(5) REQUIREMENTS.—A demonstration project 

9 funded under this subsection shall— 

10 ‘‘(A) utilize technologies that have com11 pleted pilot-scale testing or the equivalent, as 

12 determined by the Secretary; 

13 ‘‘(B) secure and maintain agreements for 

14 the utilization or sequestration of captured car15 bon dioxide; and 

16 ‘‘(C) upon completion, demonstrate carbon 

17 capture technologies on a power or industrial 

18 system capable of capturing not less than 

19 100,000 tons of carbon dioxide annually. 

20 ‘‘(g) DEFINITION OF POWER SYSTEM.—In this sec21 tion, the term ‘power system’ means any electricity gener22 ating unit that utilizes fossil fuels to generate electricity 

23 provided to the electric grid or directly to a consumer. 


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1 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—For ac2 tivities under this section, there are authorized to be ap3 propriated to the Secretary— 

4 ‘‘(1) $300,000,000 for fiscal year 2020; 

5 ‘‘(2) $315,000,000 for fiscal year 2021; 

6 ‘‘(3) $330,750,000 for fiscal year 2022; 

7 ‘‘(4) $347,288,000 for fiscal year 2023; and 

8 ‘‘(5) $364,652,000 for fiscal year 2024.’’. 

9 (b) GAO STUDY.— 

10 (1) IN GENERAL.—Not later than 1 year after 

11 the date of enactment of this Act, the Comptroller 

12 General of the United States shall submit to the 

13 Committee on Science, Space, and Technology of the 

14 House of Representatives and the Committee on En15 ergy and Natural Resources of the Senate a report 

16 on the results of a study of the Department’s suc17 cesses, failures, practices, and improvements in car18 rying out demonstration projects for carbon capture 

19 technologies for power and industrial systems. In 

20 conducting the study, the Comptroller General shall 

21 consider— 

22 (A) applicant and contractor qualifications; 

23 (B) project management practices at the 

24 Department; 


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1 (C) economic or market changes and other 

2 factors impacting project viability; 

3 (D) completion of third-party agreements, 

4 including power purchase agreements and car5 bon dioxide offtake agreements; 

6 (E) regulatory challenges; and 

7 (F) construction challenges. 

8 (2) CONSIDERATION.—The Secretary shall con9 sider any relevant recommendations, as determined 

10 by the Secretary, provided in the report required 

11 under paragraph (1), and shall adopt such rec12 ommendations as the Secretary considers appro13 priate. 

14 (3) POWER SYSTEM DEFINED.—In this section, 

15 the term ‘‘power system’’ means any electricity gen16 erating unit that utilizes fossil fuels to generate elec17 tricity provided to the electric grid or directly to a 

18 consumer. 

19 SEC. 5. CARBON STORAGE VALIDATION AND TESTING. 

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

21 U.S.C. 16293) is amended to read as follows: 

22 ‘‘SEC. 963. CARBON STORAGE VALIDATION AND TESTING. 

23 ‘‘(a) CARBON STORAGE.—The Secretary, in consulta24 tion with the Administrator of the Environmental Protec25 tion Agency, shall carry out a program of research, develVerDate Sep 11 2014 23:26 Jul 11, 2019 Jkt 034408 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3607.IH H3607

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1 opment, and demonstration for carbon storage. The pro2 gram shall— 

3 ‘‘(1) in coordination with relevant Federal agen4 cies, develop and maintain mapping tools and re5 sources that assess the capacity of geologic storage 

6 formations in the United States; 

7 ‘‘(2) develop monitoring tools, modeling of geo8 logic formations, and analyses to predict and verify 

9 carbon dioxide containment and account for seques10 tered carbon dioxide in geologic storage sites; 

11 ‘‘(3) research potential environmental, safety, 

12 and health impacts in the event of a leak to the at13 mosphere or to an aquifer, and any corresponding 

14 mitigation actions or responses to limit harmful con15 sequences; 

16 ‘‘(4) evaluate the interactions of carbon dioxide 

17 with formation solids and fluids, including the pro18 pensity of injections to induce seismic activity; 

19 ‘‘(5) assess and ensure the safety of operations 

20 related to geologic sequestration of carbon dioxide; 

21 ‘‘(6) determine the fate of carbon dioxide con22 current with and following injection into geologic 

23 formations; 

24 ‘‘(7) support cost and business model assess25 ments to examine the economic viability of techVerDate Sep 11 2014 23:26 Jul 11, 2019 Jkt 034408 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H3607.IH H3607

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1 nologies and systems developed under this program; 

2 and 

3 ‘‘(8) provide information to State, local, and 

4 Tribal governments, the Environmental Protection 

5 Agency, and other appropriate entities, to support 

6 development of a regulatory framework for commer7 cial-scale sequestration operations that ensure the 

8 protection of human health and the environment. 

9 ‘‘(b) GEOLOGIC SETTINGS.—In carrying out research 

10 activities under this section, the Secretary shall consider 

11 a variety of candidate geologic settings, both onshore and 

12 offshore, including— 

13 ‘‘(1) operating oil and gas fields; 

14 ‘‘(2) depleted oil and gas fields; 

15 ‘‘(3) residual oil zones; 

16 ‘‘(4) unconventional reservoirs and rock types; 

17 ‘‘(5) unmineable coal seams; 

18 ‘‘(6) saline formations in both sedimentary and 

19 basaltic geologies; 

20 ‘‘(7) geologic systems that may be used as engi21 neered reservoirs to extract economical quantities of 

22 brine from geothermal resources of low permeability 

23 or porosity; and 

24 ‘‘(8) geologic systems containing in situ carbon 

25 dioxide mineralization formations. 


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1 ‘‘(c) REGIONAL CARBON SEQUESTRATION PARTNER2 SHIPS.— 

3 ‘‘(1) IN GENERAL.—The Secretary shall carry 

4 out large-scale carbon sequestration demonstrations 

5 for geologic containment of carbon dioxide to collect 

6 and validate information on the cost and feasibility 

7 of commercial deployment of technologies for the 

8 geologic containment of carbon dioxide. The Sec9 retary may fund new demonstrations or expand the 

10 work completed at one or more of the existing re11 gional carbon sequestration partnerships. 

12 ‘‘(2) DEMONSTRATION COMPONENTS.—Each 

13 demonstration described in paragraph (1) shall in14 clude longitudinal tests involving carbon dioxide in15 jection and monitoring, mitigation, and verification 

16 operations. 

17 ‘‘(3) CLEARINGHOUSE.—The National Energy 

18 Technology Laboratory shall act as a clearinghouse 

19 of shared information and resources for the regional 

20 carbon sequestration partnerships and any new dem21 onstrations funded under this section. 

22 ‘‘(4) REPORT.—Not later than 1 year after the 

23 date of enactment of the Fossil Energy Research 

24 and Development Act of 2019, the Secretary shall 

25 provide to the Committee on Science, Space, and 


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1 Technology of the House of Representatives and the 

2 Committee on Energy and Natural Resources of the 

3 Senate a report that— 

4 ‘‘(A) assesses the progress of all regional 

5 carbon sequestration partnerships; 

6 ‘‘(B) identifies the remaining challenges in 

7 achieving carbon sequestration that is reliable 

8 and safe for the environment and public health; 

9 and 

10 ‘‘(C) creates a roadmap for Department of 

11 Energy carbon storage research and develop12 ment activities through 2030 with the goal of 

13 reducing economic and policy barriers to com14 mercial carbon sequestration. 

15 ‘‘(5) LARGE-SCALE CARBON SEQUESTRATION.— 

16 For purposes of this subsection, ‘large-scale carbon 

17 sequestration’ means a scale that demonstrates the 

18 ability to inject and sequester several million metric 

19 tons carbon dioxide for at least 10 years. 

20 ‘‘(d) INTEGRATED STORAGE PROJECTS.—The Sec21 retary may carry out a program for the purpose of 

22 transitioning the large-scale carbon sequestration dem23 onstration projects under subsection (c) into integrated, 

24 commercial storage complexes. The program shall focus 

25 on— 


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1 ‘‘(1) qualifying geologic storage sites in order to 

2 accept large volumes of carbon dioxide acceptable for 

3 commercial contracts; 

4 ‘‘(2) understanding the technical and commer5 cial viability of storage sites; 

6 ‘‘(3) developing the qualification processes that 

7 will be necessary for a diverse range of geologic stor8 age sites to commercially accept carbon dioxide; and 

9 ‘‘(4) any other activities the Secretary deter10 mines necessary to transition the large scale dem11 onstration storage projects into commercial ventures. 

12 ‘‘(e) COST SHARING.—The Secretary shall require 

13 cost sharing under this section in accordance with section 

14 988. 

15 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—For ac16 tivities under this section, there are authorized to be ap17 propriated to the Secretary— 

18 ‘‘(1) $120,000,000 for fiscal year 2020; 

19 ‘‘(2) $126,000,000 for fiscal year 2021; 

20 ‘‘(3) $132,300,000 for fiscal year 2022; 

21 ‘‘(4) $138,915,000 for fiscal year 2023; and 

22 ‘‘(5) $145,860,750 for fiscal year 2024.’’. 


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1 SEC. 6. CARBON UTILIZATION. 

2 (a) PROGRAM.—Subtitle F of title IX of the Energy 

3 Policy Act of 2005 (42 U.S.C. 16291 et seq.) is amended 

4 by adding at the end the following: 

5 ‘‘SEC. 969. CARBON UTILIZATION. 

6 ‘‘(a) IN GENERAL.—The Secretary shall carry out a 

7 program of research, development, and demonstration for 

8 carbon utilization. The program shall— 

9 ‘‘(1) assess and monitor potential changes in 

10 life cycle carbon dioxide and other greenhouse gas 

11 emissions, and other environmental safety indicators 

12 of new technologies, practices, processes, or meth13 ods, used in enhanced hydrocarbon recovery as part 

14 of the activities authorized in section 963 of the En15 ergy Policy Act of 2005 (42 U.S.C. 16293); 

16 ‘‘(2) identify and evaluate novel uses for car17 bon, including the conversion of carbon dioxide, in a 

18 manner that, on a full life-cycle basis, achieves a 

19 permanent reduction in, or avoidance of a net in20 crease in carbon dioxide in the atmosphere, for use 

21 in commercial and industrial products, such as— 

22 ‘‘(A) chemicals; 

23 ‘‘(B) plastics; 

24 ‘‘(C) building materials; 

25 ‘‘(D) fuels; 

26 ‘‘(E) cement; 


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1 ‘‘(F) products of coal utilization in power 

2 systems (as such term is defined in section 

3 962(e)), or other applications; or 

4 ‘‘(G) other products with demonstrated 

5 market value; 

6 ‘‘(3) carbon capture technologies for industrial 

7 systems; 

8 ‘‘(4) identify and assess alternative uses for 

9 coal that result in no net emissions of carbon dioxide 

10 or other pollutants, including products derived from 

11 carbon engineering, carbon fiber, and coal conversion 

12 methods. 

13 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—For ac14 tivities under this section, there are authorized to be ap15 propriated to the Secretary— 

16 ‘‘(1) $25,000,000 for fiscal year 2020; 

17 ‘‘(2) $26,250,000 for fiscal year 2021; 

18 ‘‘(3) $27,562,500 for fiscal year 2022; 

19 ‘‘(4) $28,940,625 for fiscal year 2023; and 

20 ‘‘(5) $30,387,656 for fiscal year 2024.’’. 

21 (b) STUDY.—The Secretary shall enter into an agree22 ment with the National Academies to conduct a study as23 sessing the barriers, and opportunities related to the com24 mercial application of carbon dioxide in the United States. 

25 Such study shall— 


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1 (1) analyze the technical feasibility, related 

2 challenges, and impacts to commercializing carbon 

3 dioxide, including— 

4 (A) creating a national system of carbon 

5 dioxide pipelines and geologic sequestration 

6 sites; 

7 (B) mitigating environmental and land8 owner impacts; and 

9 (C) regional economic challenges and op10 portunities; 

11 (2) identify potential markets, industries, or 

12 sectors that may benefit from greater access to com13 mercial carbon dioxide; 

14 (3) assess the current state of infrastructure 

15 and any necessary updates to allow for the integra16 tion of safe and reliable carbon dioxide transpor17 tation, utilization, and storage; 

18 (4) estimate the economic, climate, and environ19 mental impacts of any well-integrated national car20 bon dioxide pipeline system, including suggestions 

21 for policies that could improve the economic impact 

22 of the system; 

23 (5) assess the global status and progress of car24 bon utilization technologies (both chemical and bio25 logical) in practice today that utilize waste carbon 


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1 (including carbon dioxide, carbon monoxide, meth2 ane, and biogas) from power generation, biofuels 

3 production, and other industrial processes; 

4 (6) identify emerging technologies and ap5 proaches for carbon utilization that show promise 

6 for scale-up, demonstration, deployment, and com7 mercialization; 

8 (7) analyze the factors associated with making 

9 carbon utilization technologies viable at a commer10 cial scale, including carbon waste stream availability, 

11 economics, market capacity, energy and lifecycle re12 quirements; 

13 (8) assess the major technical challenges associ14 ated with increasing the commercial viability of car15 bon reuse technologies, and identify the research and 

16 development questions that will address those chal17 lenges; 

18 (9) assess current research efforts, including 

19 engineering and computational, that are addressing 

20 these challenges and identify gaps in the current re21 search portfolio; and 

22 (10) develop a comprehensive research agenda 

23 that addresses both long- and short-term research 

24 needs and opportunities. 


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1 SEC. 7. ADVANCED ENERGY SYSTEMS. 

2 Subtitle F of title IX of the Energy Policy Act of 

3 2005 (42 U.S.C. 16291 et seq.) is further amended by 

4 adding at the end the following: 

5 ‘‘SEC. 969A. ADVANCED ENERGY SYSTEMS. 

6 ‘‘(a) IN GENERAL.—The Secretary shall conduct a 

7 program, with the purpose of reducing emissions from fos8 sil fuel power generation by not less than 50 percent, of 

9 research, development, demonstration, and commercial ap10 plication with respect to the following: 

11 ‘‘(1) High-efficiency turbines for any advanced 

12 power system that will lead to natural gas turbine 

13 combined cycle efficiency of 67 percent or combus14 tion turbine efficiency of 50 percent. 

15 ‘‘(2) Supercritical and ultrasupercritical carbon 

16 dioxide, with an emphasis on developing directly17 fired and indirectly fired cycles in the next 10 years. 

18 ‘‘(3) Advanced combustion systems, including 

19 oxy-combustion systems and chemical looping. 

20 ‘‘(4) Fuel cell technologies for low-cost, high-ef21 ficiency, fuel-flexible, modular power systems, includ22 ing solid oxide fuel cell technology for commercial, 

23 residential, and distributed generation systems, 

24 using improved manufacturing production and proc25 esses. 


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1 ‘‘(5) Gasification systems to enable carbon cap2 ture, improve efficiency, and reduce capital and op3 erating costs. 

4 ‘‘(6) Thermal cycling with ramping or rapid 

5 black start capabilities that do not compromise effi6 ciency or environmental performance. 

7 ‘‘(7) Small-scale and modular coal-fired tech8 nologies with reduced carbon outputs or carbon cap9 ture that can support incremental power generation 

10 capacity additions. 

11 ‘‘(b) PRIORITY.—In carrying out the program under 

12 subsection (a), the Secretary is encouraged to prioritize 

13 transformational technologies that enable a step change 

14 in reduction of emissions as compared to the technology 

15 in existence on the date of enactment of this section. 

16 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—For ac17 tivities under this section, there are authorized to be ap18 propriated to the Secretary— 

19 ‘‘(1) $150,000,000 for fiscal year 2020; 

20 ‘‘(2) $157,500,000 for fiscal year 2021; 

21 ‘‘(3) $165,375,000 for fiscal year 2022; 

22 ‘‘(4) $173,643,750 for fiscal year 2023; and 

23 ‘‘(5) $182,325,938 for fiscal year 2024.’’. 


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1 SEC. 8. RARE EARTH ELEMENTS. 

2 Subtitle F of title IX of the Energy Policy Act of 

3 2005 (42 U.S.C. 16291 et seq.) is further amended by 

4 adding at the end the following: 

5 ‘‘SEC. 969B. RARE EARTH ELEMENTS. 

6 ‘‘(a) IN GENERAL.—In coordination with the relevant 

7 Federal agencies, the Secretary shall conduct research to 

8 develop and assess methods to separate and recover rare 

9 earth elements and other strategic minerals and coprod10 ucts from coal and coal byproduct streams. The program 

11 shall— 

12 ‘‘(1) develop advanced rare earth element sepa13 ration and extraction processes using coal-based re14 sources as feedstock materials; 

15 ‘‘(2) assess the technical and economic feasi16 bility of recovering rare earth elements from coal17 based resources and validate such feasibility with 

18 prototype systems producing salable, high-purity 

19 rare earth elements from coal-based resources; and 

20 ‘‘(3) assess and mitigate any environmental and 

21 public health impacts of recovering rare earth ele22 ments from coal-based resources. 

23 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—For ac24 tivities under this section, there are authorized to be ap25 propriated to the Secretary— 

26 ‘‘(1) $23,000,000 for fiscal year 2020; 


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1 ‘‘(2) $24,150,000 for fiscal year 2021; 

2 ‘‘(3) $25,357,500 for fiscal year 2022; 

3 ‘‘(4) $26,625,375 for fiscal year 2023; and 

4 ‘‘(5) $27,956,644 for fiscal year 2024.’’. 

5 SEC. 9. METHANE HYDRATE RESEARCH AMENDMENTS. 

6 (a) IN GENERAL.—Section 4(b) of the Methane Hy7 drate Research and Development Act of 2000 (30 U.S.C. 

8 2003(b)) is amended to read as follows: 

9 ‘‘(b) GRANTS, CONTRACTS, COOPERATIVE AGREE10 MENTS, INTERAGENCY FUNDS TRANSFER AGREEMENTS, 

11 AND FIELD WORK PROPOSALS.— 

12 ‘‘(1) ASSISTANCE AND COORDINATION.—In car13 rying out the program of methane hydrate research 

14 and development authorized by this section, the Sec15 retary may award grants, or enter into contracts or 

16 cooperative agreements to— 

17 ‘‘(A) conduct research to identify the envi18 ronmental, health, and safety impacts of meth19 ane hydrate development; 

20 ‘‘(B) assess and develop technologies to 

21 mitigate environmental impacts of the explo22 ration and commercial development of methane 

23 hydrates as an energy resource, including the 

24 use of seismic testing, and to reduce the public 


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1 health and safety risks of drilling through 

2 methane hydrates; 

3 ‘‘(C) conduct research to assess and miti4 gate the environmental impact of hydrate 

5 degassing (including natural degassing and 

6 degassing associated with commercial develop7 ment); or 

8 ‘‘(D) expand education and training pro9 grams in methane hydrate resource research 

10 and resource development through fellowships 

11 or other means for graduate education and 

12 training. 

13 ‘‘(2) ENVIRONMENTAL MONITORING AND RE14 SEARCH.—The Secretary shall conduct a long-term 

15 environmental monitoring and research program to 

16 study the effects of production from methane hy17 drate reservoirs. 

18 ‘‘(3) COMPETITIVE PEER REVIEW.—Funds 

19 made available to carry out paragraphs (1) and (2) 

20 shall be made available based on a competitive proc21 ess using external scientific peer review of proposed 

22 research.’’. 

23 (b) CONFORMING AMENDMENT.—Section 4(e) of 

24 such Act (30 U.S.C. 2003(e)) is amended in the matter 


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1 preceding paragraph (1) by striking ‘‘subsection (b)(1)’’ 

2 and inserting ‘‘paragraphs (1) and (2) of subsection (b)’’. 

3 (c) AUTHORIZATION OF APPROPRIATIONS.—Section 

4 7 of such Act (30 U.S.C. 2006) is amended to read as 

5 follows: 

6 ‘‘SEC. 7. AUTHORIZATION OF APPROPRIATIONS. 

7 ‘‘There are authorized to be appropriated to the Sec8 retary to carry out this Act $15,000,000, to remain avail9 able until expended, for each of fiscal years 2020 through 

10 2024.’’. 

11 SEC. 10. CARBON REMOVAL. 

12 Subtitle F of title IX of the Energy Policy Act of 

13 2005 (42 U.S.C. 16291 et seq.) is further amended by 

14 adding at the end the following: 

15 ‘‘SEC. 969C. CARBON REMOVAL. 

16 ‘‘(a) ESTABLISHMENT.—The Secretary, in coordina17 tion with the appropriate Federal agencies, shall establish 

18 a research, development, and demonstration program to 

19 remove carbon dioxide from the atmosphere on a large 

20 scale. The program may include activities in— 

21 ‘‘(1) direct air capture and storage technologies; 

22 ‘‘(2) enhanced carbon mineralization; 

23 ‘‘(3) bioenergy with carbon capture and seques24 tration; 

25 ‘‘(4) agricultural and grazing practices; 


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1 ‘‘(5) forest management and afforestation; and 

2 ‘‘(6) planned or managed carbon sinks, includ3 ing natural and artificial. 

4 ‘‘(b) PRIORITIZATION.—In carrying out the program 

5 established in subsection (a), the Secretary shall 

6 prioritize— 

7 ‘‘(1) the activities described in paragraphs (1) 

8 and (2) of subsection (a), acting through the Assist9 ant Secretary for Fossil Energy; and 

10 ‘‘(2) the activities described in subsection 

11 (a)(3), acting through the Assistant Secretary for 

12 Energy Efficiency and Renewable Energy and the 

13 Assistant Secretary for Fossil Energy. 

14 ‘‘(c) CONSIDERATIONS.—The program under this 

15 section shall identify and develop carbon removal tech16 nologies and strategies that consider the following: 

17 ‘‘(1) Land use changes, including impacts on 

18 natural and managed ecosystems. 

19 ‘‘(2) Ocean acidification. 

20 ‘‘(3) Net greenhouse gas emissions. 

21 ‘‘(4) Commercial viability. 

22 ‘‘(5) Potential for near-term impact. 

23 ‘‘(6) Potential for carbon reductions on a 

24 gigaton scale. 

25 ‘‘(7) Economic co-benefits. 


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1 ‘‘(d) ACCOUNTING.—The Department shall collabo2 rate with the Environmental Protection Agency and other 

3 relevant agencies to develop and improve accounting 

4 frameworks and tools to accurately measure carbon re5 moval and sequestration methods and technologies across 

6 the Federal Government. 

7 ‘‘(e) AIR CAPTURE TECHNOLOGY PRIZE.—Not later 

8 than 1 year after the date of enactment of this Act, as 

9 part of the program carried out under this section, the 

10 Secretary shall carry out a program to award competitive 

11 technology prizes for carbon dioxide capture from ambient 

12 air or water. In carrying out this subsection, the Secretary 

13 shall— 

14 ‘‘(1) in accordance with section 24 of the Ste15 venson-Wydler Technology Innovation Act of 1980 

16 (15 U.S.C. 3719), develop requirements for— 

17 ‘‘(A) the prize competition process; 

18 ‘‘(B) minimum performance standards for 

19 projects eligible to participate in the prize com20 petition; and 

21 ‘‘(C) monitoring and verification proce22 dures for projects selected to receive a prize 

23 award; 


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1 ‘‘(2) establish minimum levels for the capture of 

2 carbon dioxide from ambient air or water that are 

3 required to qualify for a prize award; and 

4 ‘‘(3) offer prize awards for any of the following: 

5 ‘‘(A) A design for a promising capture 

6 technology that will— 

7 ‘‘(i) be operated on a demonstration 

8 scale; and 

9 ‘‘(ii) have the potential to achieve sig10 nificant reduction in the level of carbon di11 oxide in the atmosphere. 

12 ‘‘(B) A successful bench-scale demonstra13 tion of a capture technology. 

14 ‘‘(C) An operational capture technology on 

15 a commercial scale. 

16 ‘‘(f) DIRECT AIR CAPTURE TEST CENTER.— 

17 ‘‘(1) IN GENERAL.—Not later than 1 year after 

18 the date of enactment of the Fossil Energy Research 

19 and Development Act of 2019, the Secretary shall 

20 award grants to one or more eligible entities for the 

21 operation of one or more test centers (in this sub22 section, known as ‘Centers’) to provide unique test23 ing capabilities for innovative direct air capture and 

24 storage technologies. 

25 ‘‘(2) PURPOSE.—Each Center shall— 


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1 ‘‘(A) advance research, development, dem2 onstration, and commercial application of direct 

3 air capture and storage technologies; 

4 ‘‘(B) support pilot plant and full-scale 

5 demonstration projects and test technologies 

6 that represent the scale of technology develop7 ment beyond laboratory testing but not yet ad8 vanced to test under operational conditions at 

9 commercial scale; 

10 ‘‘(C) develop front-end engineering design 

11 and economic analysis; and 

12 ‘‘(D) maintain a public record of pilot and 

13 full-scale plant performance. 

14 ‘‘(3) PRIORITY CRITERIA.—In selecting applica15 tions to operate a Center under this subsection, the 

16 Secretary shall prioritize applicants that— 

17 ‘‘(A) have access to existing or planned re18 search facilities; 

19 ‘‘(B) are institutions of higher education 

20 with established expertise in engineering for di21 rect air capture technologies, or partnerships 

22 with such institutions; or 

23 ‘‘(C) have access to existing research and 

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1 ing, component design and testing, or profes2 sional engineering design. 

3 ‘‘(4) SCHEDULE.—Each grant to operate a 

4 Center under this subsection shall be awarded for a 

5 term of not more than 5 years, subject to the avail6 ability of appropriations. The Secretary may renew 

7 such 5-year term without limit, subject to a rigorous 

8 merit review. 

9 ‘‘(5) TERMINATION.—To the extent otherwise 

10 authorized by law, the Secretary may eliminate the 

11 center during any 5-year term described in the last 

12 paragraph if it is underperforming. 

13 ‘‘(g) LARGE-SCALE PILOTS AND DEMONSTRA14 TIONS.—In supporting the technology development activi15 ties under this section, the Secretary is encouraged to sup16 port carbon removal pilot and demonstration projects, in17 cluding— 

18 ‘‘(1) pilot projects that test direct air capture 

19 systems capable of capturing 10 to 100 tonnes of 

20 carbon oxides per year to provide data for dem21 onstration-scale projects; and 

22 ‘‘(2) direct air capture demonstration projects 

23 capable of capturing greater than 1,000 tonnes of 

24 carbon oxides per year. 


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1 ‘‘(h) INTRA-AGENCY RESEARCH.—In carrying out 

2 the program established in (a), the Secretary shall encour3 age and promote collaborations among relevant offices and 

4 agencies within the Department. 

5 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—For ac6 tivities under this section, there are authorized to be ap7 propriated to the Secretary— 

8 ‘‘(1) $75,000,000 for fiscal year 2020, 

9 $15,000,000 of which are authorized to carry out 

10 subsection (e); 

11 ‘‘(2) $63,000,000 for fiscal year 2021; 

12 ‘‘(3) $66,150,000 for fiscal year 2022; 

13 ‘‘(4) $69,458,000 for fiscal year 2023; and 

14 ‘‘(5) $72,930,000 for fiscal year 2024.’’. 

15 SEC. 11. METHANE LEAK DETECTION AND MITIGATION. 

16 Subtitle F of title IX of the Energy Policy Act of 

17 2005 (42 U.S.C. 16291 et seq.) is further amended by 

18 adding at the end the following: 

19 ‘‘SEC. 969D. METHANE LEAK DETECTION AND MITIGATION. 

20 ‘‘(a) IN GENERAL.—The Secretary, in consultation 

21 with the Administrator of the Environmental Protection 

22 Agency and other appropriate Federal agencies, shall 

23 carry out a program of methane leak detection and mitiga24 tion research, development, demonstration, and commer25 cial application for technologies and methods that signifiVerDate Sep 11 2014 23:26 Jul 11, 2019 Jkt 034408 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\H3607.IH H3607

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1 cantly reduce emissions. In carrying out the program, the 

2 Secretary shall— 

3 ‘‘(1) develop cooperative agreements with State 

4 or local governments or private entities to provide 

5 technical assistance to— 

6 ‘‘(A) prevent or respond to methane leaks, 

7 including detection, mitigation, and identifica8 tion of leaks throughout the natural gas infra9 structure (which includes natural gas storage, 

10 pipelines, and natural gas production sites); and 

11 ‘‘(B) protect public health in the event of 

12 a major methane leak; 

13 ‘‘(2) promote demonstration and adoption of ef14 fective methane emissions-reduction technologies in 

15 the private sector; 

16 ‘‘(3) in coordination with representatives from 

17 private industry, State and local governments, and 

18 institutions of higher education, create a publicly ac19 cessible resource for best practices in the design, 

20 construction, maintenance, performance, monitoring, 

21 and incident response for— 

22 ‘‘(A) pipeline systems; 

23 ‘‘(B) wells; 

24 ‘‘(C) compressor stations; 

25 ‘‘(D) storage facilities; and 


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1 ‘‘(E) other vulnerable infrastructure; 

2 ‘‘(4) identify high-risk characteristics of pipe3 lines, wells, and materials, geologic risk factors, or 

4 other key factors that increase the likelihood of 

5 methane leaks; and 

6 ‘‘(5) in collaboration with private entities and 

7 institutions of higher education, quantify and map 

8 significant geologic methane seeps across the United 

9 States. 

10 ‘‘(b) CONSIDERATIONS.—In carrying out the pro11 gram under this section, the Secretary shall consider the 

12 following: 

13 ‘‘(1) Historical data of methane leaks. 

14 ‘‘(2) Public health consequences. 

15 ‘‘(3) Public safety. 

16 ‘‘(4) Novel materials and designs for pipelines, 

17 compressor stations, components, and wells (includ18 ing casing, cement, wellhead). 

19 ‘‘(5) Regional geologic traits. 

20 ‘‘(6) Induced and natural seismicity. 

21 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—For ac22 tivities under this section, there are authorized to be ap23 propriated to the Secretary— 

24 ‘‘(1) $22,000,000 for fiscal year 2020; 

25 ‘‘(2) $23,100,000 for fiscal year 2021; 


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1 ‘‘(3) $24,255,000 for fiscal year 2022; 

2 ‘‘(4) $25,467,750 for fiscal year 2023; and 

3 ‘‘(5) $26,741,138 for fiscal year 2024.’’. 

4 SEC. 12. WASTE GAS UTILIZATION. 

5 Subtitle F of title IX of the Energy Policy Act of 

6 2005 (42 U.S.C. 16291 et seq.) is further amended by 

7 adding at the end the following: 

8 ‘‘SEC. 969E. WASTE GAS UTILIZATION. 

9 ‘‘The Secretary shall carry out a program of research, 

10 development, and demonstration for waste gas utilization. 

11 The program shall— 

12 ‘‘(1) identify and evaluate novel uses for light 

13 hydrocarbons, such as methane, ethane, propane, 

14 butane, pentane, and hexane, produced during oil 

15 and shale gas production, including the production 

16 of chemicals or transportation fuels; 

17 ‘‘(2) develop advanced gas conversion tech18 nologies that are modular and compact, and may le19 verage advanced manufacturing technologies; 

20 ‘‘(3) support demonstration activities at oper21 ating oil and gas facilities to test the performance 

22 and cost-effectiveness of new gas conversion tech23 nologies; and 

24 ‘‘(4) assess and monitor potential changes in 

25 life cycle greenhouse gas emissions that may result 


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1 from the use of technologies developed under this 

2 program.’’. 

3 SEC. 13. NATIONAL ENERGY TECHNOLOGY LABORATORY 

4 REFORMS. 

5 (a) SPECIAL HIRING AUTHORITY FOR SCIENTIFIC, 

6 ENGINEERING, AND PROJECT MANAGEMENT PER7 SONNEL.— 

8 (1) IN GENERAL.—The Director of the National 

9 Energy Technology Laboratory shall have the au10 thority to— 

11 (A) make appointments to positions in the 

12 Laboratory to assist in meeting a specific 

13 project or research need, without regard to civil 

14 service laws, of individuals who— 

15 (i) have an advanced scientific or en16 gineering background; or 

17 (ii) have a business background and 

18 can assist in specific technology-to-market 

19 needs; 

20 (B) fix the basic pay of any employee ap21 pointed under this section at a rate not to ex22 ceed level II of the Executive Schedule; and 

23 (C) pay any employee appointed under this 

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1 ments paid to an employee under this sub2 section for any 12-month period shall not ex3 ceed the least of— 

4 (i) $25,000; 

5 (ii) the amount equal to 25 percent of 

6 the annual rate of basic pay of that em7 ployee; and 

8 (iii) the amount of the limitation that 

9 is applicable for a calendar year under sec10 tion 5307(a)(1) of title 5, United States 

11 Code. 

12 (2) LIMITATIONS.— 

13 (A) IN GENERAL.—The term of any em14 ployee appointed under this section shall not ex15 ceed 3 years. 

16 (B) FULL-TIME EMPLOYEES.—Not more 

17 than 10 full-time employees appointed under 

18 this subsection may be employed at the Na19 tional Energy Technology Laboratory at any 

20 given time. 

21 (b) DISCRETIONARY RESEARCH AND DEVELOP22 MENT.— 

23 (1) IN GENERAL.—The Secretary shall establish 

24 mechanisms under which the Director of the Na25 tional Energy Technology Laboratory may use an 


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1 amount that is, in total, not less than 2 percent and 

2 not more than 4 percent of all funds available to the 

3 Laboratory for the following purposes: 

4 (A) To fund innovative research that is 

5 conducted at the Laboratory and supports the 

6 mission of the Department. 

7 (B) To fund technology development pro8 grams that support the transition of tech9 nologies developed by the Laboratory into the 

10 commercial market. 

11 (C) To fund workforce development activi12 ties to strengthen external engineering and 

13 manufacturing partnerships to ensure safe, effi14 cient, productive, and useful fossil energy tech15 nology production. 

16 (D) To fund the revitalization, recapitaliza17 tion, or minor construction of the Laboratory 

18 infrastructure. 

19 (2) PRIORITIZATION.—The Director shall 

20 prioritize innovative experiments and proposals pro21 posed by scientists and researchers at the National 

22 Energy Technology Laboratory. 

23 (3) ANNUAL REPORT ON USE OF AUTHORITY.— 

24 Not later than March 1 of each year, the Secretary 

25 shall submit to the Committee on Science, Space, 


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1 and Technology of the House of Representatives and 

2 the Committee on Energy and Natural Resources of 

3 the Senate a report on the use of the authority 

4 under this subsection during the preceding fiscal 

5 year. 

6 (c) LABORATORY OPERATIONS.—The Secretary shall 

7 delegate human resources operations of the National En8 ergy Technology Laboratory to the Director of the Na9 tional Energy Technology Laboratory. 

10 (d) REVIEW.—Not later than 2 years after the date 

11 of enactment of this Act, the Secretary shall submit to 

12 the Committee on Science, Space, and Technology of the 

13 House of Representatives and the Committee on Energy 

14 and Natural Resources of the Senate a report assessing 

15 the National Energy Technology Laboratory’s manage16 ment and research. The report shall include— 

17 (1) an assessment of the quality of science and 

18 research at the National Energy Technology Labora19 tory relative to similar work at other national lab20 oratories; 

21 (2) a review of the effectiveness of authorities 

22 provided in subsections (a) and (b); and 

23 (3) recommendations for policy changes within 

24 the Department and legislative changes to provide 

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1 essary tools and resources to advance its research 

2 mission. 

Æ 


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