II 

Calendar No. 100 

112TH CONGRESS 

1ST SESSION S. 757 

[Report No. 112–33] 

To provide incentives to encourage the development and implementation of 

technology to capture carbon dioxide from dilute sources on a significant 

scale using direct air capture technologies. 

IN THE SENATE OF THE UNITED STATES 

APRIL 7 (legislative day, APRIL 5), 2011 

Mr. BARRASSO (for himself, Mr. BINGAMAN, Mr. ENZI, and Mr. HOEVEN) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources 

JULY 11, 2011 

Reported by Mr. BINGAMAN, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL 

To provide incentives to encourage the development and implementation of technology to capture carbon dioxide 

from dilute sources on a significant scale using direct 

air capture technologies. 

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


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1 SECTION 1. CARBON DIOXIDE CAPTURE TECHNOLOGY 

2 PRIZE. 

3 (a) FINDINGS.—Congress finds that— 

4 (1) flue gases from coal-fired electric generating 

5 facilities typically have carbon dioxide concentrations 

6 of approximately 17 percent by volume; 

7 (2) it is possible to separate carbon dioxide 

8 from dilute sources and even the atmosphere, which 

9 has a carbon dioxide concentration of 0.038 percent, 

10 but substantial advances in research and technology 

11 will be necessary to provide the separation in an eco12 nomical manner; 

13 (3) developing practical separations of carbon 

14 dioxide from dilute sources is important to the fu15 ture development of energy technology; 

16 (4) economical onsite separation of atmospheric 

17 carbon dioxide can help leverage the use of carbon 

18 dioxide in energy applications such as enhanced oil 

19 recovery and enhanced geothermal systems at re20 mote sites; and 

21 (5) authorizing the Secretary of Energy to pro22 vide a technology prize for separation of carbon di23 oxide from dilute sources can provide the impetus 

24 for developing the novel technologies that will be 

25 needed in the future as part of the national energy 

26 system of the United States. 


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1 (b) PURPOSE.—It is the purpose of this section to 

2 provide incentives to encourage the development and im3 plementation of technology to capture carbon dioxide from 

4 dilute sources on a significant scale using direct air cap5 ture technologies. 

6 (c) CARBON DIOXIDE CAPTURE TECHNOLOGY

7 PRIZE.—Section 1008 of the Energy Policy Act of 2005 

8 (42 U.S.C. 16396) is amended by adding at the end the 

9 following: 

10 ‘‘(g) CARBON DIOXIDE CAPTURE TECHNOLOGY

11 PRIZE.— 

12 ‘‘(1) DEFINITIONS.—In this subsection: 

13 ‘‘(A) BOARD.—The term ‘Board’ means 

14 the Carbon Dioxide Capture Technology Advi15 sory Board established by paragraph (6). 

16 ‘‘(B) DILUTE.—The term ‘dilute’ means a 

17 concentration of less than 1 percent by volume. 

18 ‘‘(C) INTELLECTUAL PROPERTY.—The 

19 term ‘intellectual property’ means— 

20 ‘‘(i) an invention that is patentable 

21 under title 35, United States Code; and 

22 ‘‘(ii) any patent on an invention de23 scribed in clause (i). 


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1 ‘‘(D) SECRETARY.—The term ‘Secretary’ 

2 means the Secretary of Energy or designee, in 

3 consultation with the Board. 

4 ‘‘(2) AUTHORITY.—Not later than 1 year after 

5 the date of enactment of this subsection, as part of 

6 the program carried out under this section, the Sec7 retary shall establish and award competitive tech8 nology financial awards for carbon dioxide capture 

9 from media in which the concentration of carbon di10 oxide is dilute. 

11 ‘‘(3) DUTIES.—In carrying out this subsection, 

12 the Secretary shall— 

13 ‘‘(A) subject to paragraph (4), develop spe14 cific requirements for— 

15 ‘‘(i) the competition process; 

16 ‘‘(ii) minimum performance standards 

17 for qualifying projects; and 

18 ‘‘(iii) monitoring and verification pro19 cedures for approved projects; 

20 ‘‘(B) establish minimum levels for the cap21 ture of carbon dioxide from a dilute medium 

22 that are required to be achieved to qualify for 

23 a financial award described in subparagraph 

24 (C); 

25 ‘‘(C) offer financial awards for— 


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1 ‘‘(i) a design for a promising capture 

2 technology; 

3 ‘‘(ii) a successful bench-scale dem4 onstration of a capture technology; 

5 ‘‘(iii) a design for a technology de6 scribed in clause (i) that will— 

7 ‘‘(I) be operated on a demonstra8 tion scale; and 

9 ‘‘(II) achieve significant reduc10 tion in the level of carbon dioxide; and 

11 ‘‘(iv) an operational capture tech12 nology on a commercial scale that meets 

13 the minimum levels described in subpara14 graph (B); and 

15 ‘‘(D) submit to Congress— 

16 ‘‘(i) an annual report that describes 

17 the progress made by the Board and re18 cipients of financial awards under this sub19 section in achieving the demonstration 

20 goals established under subparagraph (C); 

21 and 

22 ‘‘(ii) not later than 1 year after the 

23 date of enactment of this subsection, a re24 port that describes the levels of funding 


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1 that are necessary to achieve the purposes 

2 of this subsection. 

3 ‘‘(4) PUBLIC PARTICIPATION.—In carrying out 

4 paragraph (3)(A), the Board shall— 

5 ‘‘(A) provide notice of and, for a period of 

6 at least 60 days, an opportunity for public com7 ment on, any draft or proposed version of the 

8 requirements described in paragraph (3)(A); 

9 and 

10 ‘‘(B) take into account public comments 

11 received in developing the final version of those 

12 requirements. 

13 ‘‘(5) PEER REVIEW.—No financial awards may 

14 be provided under this subsection until the proposal 

15 for which the award is sought has been peer re16 viewed in accordance with such standards for peer 

17 review as are established by the Secretary. 

18 ‘‘(6) CARBON DIOXIDE CAPTURE TECHNOLOGY

19 ADVISORY BOARD.— 

20 ‘‘(A) ESTABLISHMENT.—There is estab21 lished an advisory board to be known as the 

22 ‘Carbon Dioxide Capture Technology Advisory 

23 Board’. 

24 ‘‘(B) COMPOSITION.—The Board shall be 

25 composed of 9 members appointed by the PresiVerDate Mar 15 2010 23:22 Jul 11, 2011 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6401 E:\BILLS\S757.RS S757

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1 dent, by and with the advice and consent of the 

2 Senate, who shall provide expertise in— 

3 ‘‘(i) climate science; 

4 ‘‘(ii) physics; 

5 ‘‘(iii) chemistry; 

6 ‘‘(iv) biology; 

7 ‘‘(v) engineering; 

8 ‘‘(vi) economics; 

9 ‘‘(vii) business management; and 

10 ‘‘(viii) such other disciplines as the 

11 Secretary determines to be necessary to 

12 achieve the purposes of this subsection. 

13 ‘‘(C) TERM; VACANCIES.— 

14 ‘‘(i) TERM.—A member of the Board 

15 shall serve for a term of 6 years. 

16 ‘‘(ii) VACANCIES.—A vacancy on the 

17 Board— 

18 ‘‘(I) shall not affect the powers of 

19 the Board; and 

20 ‘‘(II) shall be filled in the same 

21 manner as the original appointment 

22 was made. 

23 ‘‘(D) INITIAL MEETING.—Not later than 

24 30 days after the date on which all members of 


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1 the Board have been appointed, the Board shall 

2 hold the initial meeting of the Board. 

3 ‘‘(E) MEETINGS.—The Board shall meet 

4 at the call of the Chairperson. 

5 ‘‘(F) QUORUM.—A majority of the mem6 bers of the Board shall constitute a quorum, 

7 but a lesser number of members may hold hear8 ings. 

9 ‘‘(G) CHAIRPERSON AND VICE CHAIR10 PERSON.—The Board shall select a Chairperson 

11 and Vice Chairperson from among the members 

12 of the Board. 

13 ‘‘(H) COMPENSATION.—Each member of 

14 the Board may be compensated at not to exceed 

15 the daily equivalent of the annual rate of basic 

16 pay in effect for a position at level V of the Ex17 ecutive Schedule for each day during which the 

18 member is engaged in the actual performance of 

19 the duties of the Board. 

20 ‘‘(I) DUTIES.—The Board shall advise the 

21 Secretary on carrying out the duties of the Sec22 retary under this subsection. 

23 ‘‘(7) INTELLECTUAL PROPERTY.— 

24 ‘‘(A) IN GENERAL.—As a condition of re25 ceiving a financial award under this subsection, 


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1 an applicant shall agree to vest the intellectual 

2 property of the applicant derived from the tech3 nology in 1 or more entities that are incor4 porated in the United States. 

5 ‘‘(B) RESERVATION OF LICENSE.—The 

6 United States— 

7 ‘‘(i) may reserve a nonexclusive, non8 transferable, irrevocable, paid-up license, 

9 to have practiced for or on behalf of the 

10 United States, in connection with any in11 tellectual property described in subpara12 graph (A); but 

13 ‘‘(ii) shall not, in the exercise of a li14 cense reserved under clause (i), publicly 

15 disclose proprietary information relating to 

16 the license. 

17 ‘‘(C) TRANSFER OF TITLE.—Title to any 

18 intellectual property described in subparagraph 

19 (A) shall not be transferred or passed, except to 

20 an entity that is incorporated in the United 

21 States, until the expiration of the first patent 

22 obtained in connection with the intellectual 

23 property. 


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1 ‘‘(8) AUTHORIZATION OF APPROPRIATIONS.— 

2 There are authorized to be appropriated to carry out 

3 this subsection such sums as are necessary. 

4 ‘‘(9) TERMINATION OF AUTHORITY.—The 

5 Board and all authority provided under this sub6 section shall terminate on December 31, 2020.’’. 

7 SECTION 1. SHORT TITLE. 

8 This Act may be cited as the ‘‘Carbon Dioxide Capture 

9 Technology Prize Act of 2011’’. 

10 SEC. 2. FINDINGS AND PURPOSE. 

11 (a) FINDINGS.—Congress finds that— 

12 (1) flue gases from coal-fired electric generating 

13 facilities typically have carbon dioxide concentrations 

14 of approximately 17 percent by volume; 

15 (2) it is possible to separate carbon dioxide from 

16 dilute sources and even the atmosphere, which has a 

17 carbon dioxide concentration of 0.038 percent, but 

18 substantial advances in research and technology will 

19 be necessary to provide the separation in an economi20 cal manner; 

21 (3) developing practical separations of carbon 

22 dioxide from dilute sources is important to the future 

23 development of energy technology; 

24 (4) economical onsite separation of atmospheric 

25 carbon dioxide can help leverage the use of carbon diVerDate Mar 15 2010 23:22 Jul 11, 2011 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6203 E:\BILLS\S757.RS S757

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1 oxide in energy applications such as enhanced oil re2 covery and enhanced geothermal systems at remote 

3 sites; and 

4 (5) authorizing the Secretary of Energy to pro5 vide a technology prize for separation of carbon diox6 ide from dilute sources can provide the impetus for 

7 developing the novel technologies that will be needed 

8 in the future as part of the national energy system of 

9 the United States. 

10 (b) PURPOSE.—The purpose of this Act is to provide 

11 incentives to encourage the development and implementa12 tion of technology to capture carbon dioxide from dilute 

13 sources on a significant scale using direct air capture tech14 nologies. 

15 SEC. 3. CARBON DIOXIDE CAPTURE TECHNOLOGY PRIZE. 

16 Section 703 of the Energy Independence and Security 

17 Act of 2007 (42 U.S.C. 17251) is amended— 

18 (1) by redesignating subsection (b) as subsection 

19 (c); 

20 (2) by inserting after subsection (a) the fol21 lowing: 

22 ‘‘(b) CARBON DIOXIDE CAPTURE TECHNOLOGY

23 PRIZE.— 

24 ‘‘(1) DEFINITIONS.—In this subsection: 


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1 ‘‘(A) BOARD.—The term ‘Board’ means the 

2 Carbon Dioxide Capture Technology Advisory 

3 Board established by paragraph (6). 

4 ‘‘(B) DILUTE.—The term ‘dilute’ means a 

5 concentration of less than 1 percent by volume. 

6 ‘‘(C) INTELLECTUAL PROPERTY.—The term 

7 ‘intellectual property’ means— 

8 ‘‘(i) an invention that is patentable 

9 under title 35, United States Code; and 

10 ‘‘(ii) any patent on an invention de11 scribed in clause (i). 

12 ‘‘(D) SECRETARY.—The term ‘Secretary’ 

13 means the Secretary of Energy or designee, in 

14 consultation with the Board. 

15 ‘‘(2) AUTHORITY.—Not later than 1 year after 

16 the date of enactment of the Carbon Dioxide Capture 

17 Technology Prize Act of 2011, as part of the program 

18 carried out under this section, the Secretary shall es19 tablish and award competitive technology financial 

20 awards for carbon dioxide capture from media in 

21 which the concentration of carbon dioxide is dilute. 

22 ‘‘(3) DUTIES.—In carrying out this subsection, 

23 the Secretary shall— 

24 ‘‘(A) subject to paragraph (4), develop spe25 cific requirements for— 


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1 ‘‘(i) the competition process; 

2 ‘‘(ii) minimum performance standards 

3 for qualifying projects; and 

4 ‘‘(iii) monitoring and verification pro5 cedures for approved projects; 

6 ‘‘(B) establish minimum levels for the cap7 ture of carbon dioxide from a dilute medium 

8 that are required to be achieved to qualify for a 

9 financial award described in subparagraph (C); 

10 and 

11 ‘‘(C) offer financial awards for— 

12 ‘‘(i) a design for a promising capture 

13 technology; 

14 ‘‘(ii) a successful bench-scale dem15 onstration of a capture technology; 

16 ‘‘(iii) a design for a technology de17 scribed in clause (i) that will— 

18 ‘‘(I) be operated on a demonstra19 tion scale; and 

20 ‘‘(II) achieve significant reduction 

21 in the level of carbon dioxide; and 

22 ‘‘(iv) an operational capture tech23 nology on a commercial scale that meets the 

24 minimum levels described in subparagraph 

25 (B). 


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1 ‘‘(4) PUBLIC PARTICIPATION.—In carrying out 

2 paragraph (3)(A), the Board shall— 

3 ‘‘(A) provide notice of and, for a period of 

4 at least 60 days, an opportunity for public com5 ment on, any draft or proposed version of the re6 quirements described in paragraph (3)(A); and 

7 ‘‘(B) take into account public comments re8 ceived in developing the final version of those re9 quirements. 

10 ‘‘(5) PEER REVIEW.—No financial awards may 

11 be provided under this subsection until the proposal 

12 for which the award is sought has been peer reviewed 

13 in accordance with such standards for peer review as 

14 are established by the Secretary. 

15 ‘‘(6) CARBON DIOXIDE CAPTURE TECHNOLOGY

16 ADVISORY BOARD.— 

17 ‘‘(A) ESTABLISHMENT.—There is estab18 lished an advisory board to be known as the 

19 ‘Carbon Dioxide Capture Technology Advisory 

20 Board’. 

21 ‘‘(B) COMPOSITION.—The Board shall be 

22 composed of 7 members appointed by the Presi23 dent that provide expertise in— 

24 ‘‘(i) climate science; 

25 ‘‘(ii) physics; 


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1 ‘‘(iii) chemistry; 

2 ‘‘(iv) biology; 

3 ‘‘(v) engineering; 

4 ‘‘(vi) economics; 

5 ‘‘(vii) business management; and 

6 ‘‘(viii) such other disciplines as the 

7 Secretary determines to be necessary to 

8 achieve the purposes of this subsection. 

9 ‘‘(C) INITIAL MEETING.—Not later than 30 

10 days after the date on which all members of the 

11 Board have been appointed, the Board shall hold 

12 the initial meeting of the Board. 

13 ‘‘(D) MEETINGS.—The Board shall meet at 

14 the call of the Chairperson. 

15 ‘‘(E) QUORUM.—A majority of the members 

16 of the Board shall constitute a quorum, but a 

17 lesser number of members may hold hearings. 

18 ‘‘(F) CHAIRPERSON AND VICE CHAIR19 PERSON.—The Board shall select a Chairperson 

20 and Vice Chairperson from among the members 

21 of the Board. 

22 ‘‘(G) DUTIES.—The Board shall advise the 

23 Secretary on carrying out the duties of the Sec24 retary under this subsection. 

25 ‘‘(7) INTELLECTUAL PROPERTY.— 


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1 ‘‘(A) IN GENERAL.—As a condition of re2 ceiving a financial award under this subsection, 

3 an applicant shall agree to vest the intellectual 

4 property of the applicant derived from the tech5 nology in 1 or more entities that are incor6 porated in the United States. 

7 ‘‘(B) RESERVATION OF LICENSE.—The 

8 United States— 

9 ‘‘(i) may reserve a nonexclusive, non10 transferable, irrevocable, paid-up license, to 

11 have practiced for or on behalf of the United 

12 States, in connection with any intellectual 

13 property described in subparagraph (A); but 

14 ‘‘(ii) shall not, in the exercise of a li15 cense reserved under clause (i), publicly dis16 close proprietary information relating to the 

17 license. 

18 ‘‘(C) TRANSFER OF TITLE.—Title to any in19 tellectual property described in subparagraph 

20 (A) shall not be transferred or passed, except to 

21 an entity that is incorporated in the United 

22 States, until the expiration of the first patent ob23 tained in connection with the intellectual prop24 erty. 


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1 ‘‘(8) TERMINATION OF AUTHORITY.—The Board 

2 and all authority provided under this subsection shall 

3 terminate on the date that is 5 years after the date 

4 of enactment of the Carbon Dioxide Capture Tech5 nology Prize Act of 2011.’’; and 

6 (3) in subsection (c) (as redesignated by para7 graph (1))— 

8 (A) by striking ‘‘There is’’ and inserting the 

9 following: 

10 ‘‘(1) IN GENERAL.—There is’’; 

11 (B) by striking ‘‘this section’’ and inserting 

12 ‘‘subsection (a)’’; and 

13 (C) by striking ‘‘2013’’ and inserting ‘‘2011 

14 and $195,000,000 for each of fiscal years 2012 

15 and 2013’’; and 

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

17 ‘‘(2) CARBON DIOXIDE CAPTURE TECHNOLOGY

18 PRIZE.—There is authorized to be appropriated to the 

19 Secretary to carry out subsection (b) $10,000,000 for 

20 the period of fiscal years 2012 through 2016.’’. 


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Calendar No. 100 

112TH CONGRESS 

1ST SESSION S. 757 

[Report No. 112–33] 

A BILL 

To provide incentives to encourage the development 

scale using direct air capture technologies. bon dioxide from dilute sources on a significant and implementation of technology to capture carJULY 11, 2011 

Reported with an amendment 


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