```

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5745 Introduced in House (IH)]

<DOC>

115th CONGRESS
  2d Session
                                H. R. 5745

 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

                              May 10, 2018

Mr. Veasey (for himself, Mr. McKinley, and Ms. Eddie Bernice Johnson of 
    Texas) introduced the following bill; which was referred to the 
  Committee on Science, Space, and Technology, and in addition to the 
       Committees on Energy and Commerce, and Transportation and 
   Infrastructure, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
 To 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 2018''.
    (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. Repeal of clean coal power initiative.
Sec. 4. Fossil energy objectives.
Sec. 5. Carbon capture technologies for power systems.
Sec. 6. Carbon storage validation and testing.
Sec. 7. Carbon utilization.
Sec. 8. Advanced energy systems.
Sec. 9. Rare earth elements.
Sec. 10. Interagency task force on carbon dioxide pipelines.
Sec. 11. Methane hydrates research amendments.
Sec. 12. Carbon removal.
Sec. 13. Methane leak detection and mitigation.
Sec. 14. 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. REPEAL OF CLEAN COAL POWER INITIATIVE.

    (a) Repeal.--Subtitle A of title IV of the Energy Policy Act of 
2005 (42 U.S.C. 15801 note) is repealed.
    (b) Technical Amendment.--The table of contents for the Energy 
Policy Act of 2005 (42 U.S.C. 15801 note) is amended by striking the 
items related to subtitle A of title IV.

SEC. 4. FOSSIL ENERGY OBJECTIVES.

    Section 961 of the Energy Policy Act of 2005 (42 U.S.C. 16291) is 
amended--
            (1) in subsection (a), by adding at the end the following:
            ``(8) Improving the conversion, use, and storage of carbon 
        dioxide produced from fossil fuels.
            ``(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 utilization technologies, 
        products, and methods, including 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 2019;
            ``(2) $866,250,000 for fiscal year 2020;
            ``(3) $909,563,000 for fiscal year 2021;
            ``(4) $955,041,000 for fiscal year 2022; and
            ``(5) $1,002,793,000 for fiscal year 2023.''; and
            (3) by striking subsections (c) through (e) and inserting 
        the following:
    ``(c) Limitation.--None of the funds authorized under this section 
may be used for Fossil Energy Environmental Restoration or Import/
Export Authorization.''.

SEC. 5. CARBON CAPTURE TECHNOLOGIES FOR POWER SYSTEMS.

    (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 FOR POWER SYSTEMS.

    ``(a) In General.--The Secretary shall conduct a program of 
research, development, demonstration, and commercial application of 
carbon capture technologies, including to facilitate the development 
and use of--
            ``(1) carbon capture technologies for coal and natural gas;
            ``(2) innovations to improve the efficiency of, and 
        decrease emissions at, existing power plants; and
            ``(3) advanced separation technologies.
    ``(b) Prioritization.--The Secretary shall maintain robust 
investments in carbon capture technologies for coal applications.
    ``(c) Large-Scale Pilots.--In supporting technology development 
activities under this section, the Secretary is encouraged to support 
pilot projects that test carbon capture technologies on powers systems 
below the 100 megawatt scale, consistent with section 988(b).
    ``(d) Cost and Performance Goals.--In carrying out the development, 
demonstration, and commercial application activities under subsection 
(a), the Secretary shall consider cost and performance goals to assist 
in the transfer of carbon capture research to commercially viable 
technologies.
    ``(e) Carbon Capture Pilot Test Centers.--
            ``(1) In general.--Not later than 1 year after the date of 
        the enactment of the Fossil Energy Research and Development Act 
        of 2018, the Secretary shall award grants to one or more 
        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 systems.
            ``(2) Purpose.--The Centers shall--
                    ``(A) advance research, development, demonstration, 
                and commercial application of carbon capture 
                technologies for power 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) Criteria.--In selecting applications to operate the 
        Centers under this subsection, the Secretary shall prioritize 
        applicants that meet one or more of the following criteria:
                    ``(A) Applicants with access to existing or planned 
                research facilities with modular technology 
                capabilities.
                    ``(B) Institutions of higher education with 
                established expertise in engineering and design for 
                carbon capture technologies, or partnerships with such 
                institutions.
                    ``(C) Applicants with access to existing research 
                and test facilities for pre-combustion, post-
                combustion, or oxy-combustion technologies.
                    ``(D) Applicants with test capabilities to address 
                scaling challenges of integrating carbon capture 
                technologies with utility scale power plants.
            ``(5) Considerations.--In awarding funds 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 established using such funds 
                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) Cost sharing.--The Secretary shall require cost 
        sharing under this subsection in accordance with section 988.
            ``(8) 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.--The Secretary may fund large-scale 
        demonstration projects for power 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 system producing not less than 
                100 megawatts of power.
            ``(6) Cost sharing.--The Secretary shall require cost 
        sharing under this subsection in accordance with section 988.
    ``(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 2019;
            ``(2) $315,000,000 for fiscal year 2020;
            ``(3) $330,750,000 for fiscal year 2021;
            ``(4) $347,288,000 for fiscal year 2022; and
            ``(5) $364,652,000 for fiscal year 2023.''.
    (b) GAO Study.--
            (1) In general.--The Comptroller General of the United 
        States shall conduct a study of the Department's successes, 
        failures, practices, and improvements in carrying out 
        demonstration projects for carbon capture technologies for 
        power systems. In conducting the study, the Comptroller General 
        shall consider, at a minimum--
                    (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) Report.--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 the study required under paragraph (1).
            (3) Consideration.--The Secretary shall consider any 
        relevant recommendations, as determined by the Secretary, 
        provided in the study required under paragraph (1), and shall 
        adopt such recommendations as the Secretary considers 
        appropriate.
            (4) 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. 6. 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 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; and
            ``(7) 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, 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) deep saline formations;
            ``(7) deep 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) deep 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 
        2018, 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 to integrate geologic 
                sequestration sites and carbon utilization with large 
                sources of carbon dioxide in the United States economy.
            ``(5) Large-scale carbon sequestration.--For purposes of 
        this subsection, `large-scale carbon sequestration' means the 
        injection of more than 1,000,000 tons of carbon dioxide 
        annually or 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 purposes of transitioning the large-scale storage 
demonstrations 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 deems 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) $105,000,000 for fiscal year 2019;
            ``(2) $110,250,000 for fiscal year 2020;
            ``(3) $115,763,000 for fiscal year 2021;
            ``(4) $121,551,000 for fiscal year 2022; and
            ``(5) $127,628,000 for fiscal year 2023.''.

SEC. 7. 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 emissions, and other environmental safety 
        indicators of new technologies, practices, processes, or 
        methods, used in enhanced hydrocarbon recovery;
            ``(2) identify and evaluate novel uses for carbon, 
        including the conversion of carbon dioxide for commercial and 
        industrial products, such as--
                    ``(A) chemicals;
                    ``(B) plastics;
                    ``(C) building materials;
                    ``(D) fuels;
                    ``(E) cement; or
                    ``(F) products of coal utilization in power systems 
                (as such term is defined in section 962(e)), or other 
                applications; and
            ``(3) identify and develop alternative uses for coal, 
        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 2019;
            ``(2) $26,250,000 for fiscal year 2020;
            ``(3) $27,562,500 for fiscal year 2021;
            ``(4) $28,940,625 for fiscal year 2022; and
            ``(5) $30,387,656 for fiscal year 2023.''.
    (b) Study.--The Secretary shall enter into an agreement with the 
National Academies to conduct a study assessing the barriers and 
opportunities related to commercializing carbon dioxide in the United 
States. Such study shall--
            (1) analyze the technical feasibility and related 
        challenges to commercializing carbon dioxide, including--
                    (A) creating a national system of carbon dioxide 
                pipelines;
                    (B) mitigating environmental 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 impact of a well-integrated 
        national carbon dioxide pipeline 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 basic, 
        applied, 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. 8. 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 of 
research, development, demonstration, and commercial application to 
improve the efficiency and reliability of, and to reduce emissions 
from, fossil fuel power generation in the following areas:
            ``(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 performance, efficiency, or cost of 
electricity 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) $118,000,000 for fiscal year 2019;
            ``(2) $123,900,000 for fiscal year 2020;
            ``(3) $130,095,000 for fiscal year 2021;
            ``(4) $136,600,000 for fiscal year 2022; and
            ``(5) $143,430,000 for fiscal year 2023.''.

SEC. 9. 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; and
            ``(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.
    ``(b) Authorization of Appropriations.--For activities under this 
section, there are authorized to be appropriated to the Secretary--
            ``(1) $20,000,000 for fiscal year 2019;
            ``(2) $21,000,000 for fiscal year 2020;
            ``(3) $22,050,000 for fiscal year 2021;
            ``(4) $23,153,000 for fiscal year 2022; and
            ``(5) $24,310,000 for fiscal year 2023.''.

SEC. 10. INTERAGENCY TASK FORCE ON CARBON DIOXIDE PIPELINES.

    (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Secretary shall convene an interagency task force to 
assess the potential for a national system of carbon dioxide pipelines.
    (b) Membership.--The task force described in subsection (a) shall 
include representation from each of the following:
            (1) The Department of Energy.
            (2) The Department of the Interior.
            (3) The Environmental Protection Agency.
            (4) The Department of Transportation.
            (5) The Federal Energy Regulatory Commission.
            (6) Other Federal agencies identified by the Secretary.
            (7) State, local, or Tribal governments.
    (c) Duties.--The task force described in subsection (a) shall--
            (1) conduct annual workshops with relevant Federal agencies 
        to discuss the potential of and progress toward an accessible 
        and functioning national system of carbon dioxide pipelines, 
        open to representatives from--
                    (A) industry;
                    (B) State, local, and Tribal governments;
                    (C) academic researchers;
                    (D) environmental organizations; and
                    (E) other stakeholders as identified by the 
                Secretary;
            (2) the Secretary shall provide public notice not less than 
        60 days before conducting each workshop under paragraph (1), to 
        ensure all interested parties can attend;
            (3) 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 an annual report 
        summarizing the activities and progress of the task force; and
            (4) in place of the final such annual report, submit to the 
        relevant congressional committees a report laying out a roadmap 
        for the successful establishment of a national carbon dioxide 
        pipeline system, including aspects related to--
                    (A) engineering, building, siting, and maintenance 
                of the system;
                    (B) permitting and insuring pipelines;
                    (C) Federal and State policy challenges;
                    (D) incentives or resources to encourage the 
                utilization of the most advanced leak detection and 
                mitigation technologies and monitoring capabilities;
                    (E) regulating the national system to ensure safety 
                and minimal environmental impacts; and
                    (F) possible integrations into the current pipeline 
                systems.
    (d) Sunset.--The authority for the task force under this section 
expires on the date that is 5 years after the date on which the task 
force first convenes.

SEC. 11. METHANE HYDRATES 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 basic and applied research--
                            ``(i) to identify and assess deposits of 
                        methane hydrate; and
                            ``(ii) to identify the environmental, 
                        health, and safety impacts of methane hydrate 
                        development;
                    ``(B) assess and develop technologies to mitigate 
                environmental impacts of the commercial development of 
                methane hydrate as an energy resource and to reduce the 
                public health and safety risks of drilling through 
                methane hydrates;
                    ``(C) conduct basic and applied 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 2019 through 2023.''.

SEC. 12. 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 test, validate, or improve technologies 
and strategies to remove carbon dioxide from the atmosphere on a large 
scale. The program may include activities in--
            ``(1) direct air capture technologies;
            ``(2) bioenergy with carbon capture and sequestration;
            ``(3) enhanced geological weathering;
            ``(4) agricultural and grazing practices;
            ``(5) forest management and afforestation; and
            ``(6) planned or managed carbon sinks, including natural 
        and artificial.
    ``(b) Considerations.--The program under this section shall 
identify and develop carbon removal technologies and strategies that 
consider the following:
            ``(1) Land use changes.
            ``(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.
    ``(c) Prioritization.--In carrying out the program under 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) 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 media in 
which the concentration of carbon dioxide is less than 1 percent by 
volume (in this subsection, known as `dilute media'). In carrying out 
this subsection, the Secretary shall--
            ``(1) in accordance with section 24 of the Stevenson-Wydler 
        Technology Innovation Act of 1980, 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 dilute media 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) Intra-Agency Research.--The Secretary shall encourage and 
promote crosscutting research and development in bioenergy with carbon 
capture and sequestration within the Department.
    ``(g) Authorization of Appropriations.--For activities under this 
section, there are authorized to be appropriated to the Secretary--
            ``(1) $45,000,000 for fiscal year 2018, $15,000,000 of 
        which are authorized to carry out subsection (e);
            ``(2) $31,500,000 for fiscal year 2019;
            ``(3) $33,075,000 for fiscal year 2019;
            ``(4) $34,729,000 for fiscal year 2019; and
            ``(5) $36,465,000 for fiscal year 2020.''.

SEC. 13. METHANE LEAK DETECTION AND MITIGATION.

    (a) Program.--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 coordination with the 
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 
        methane leaks 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 well casings.
            ``(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) $20,000,000 for fiscal years 2019;
            ``(2) $21,000,000 for fiscal years 2020;
            ``(3) $22,050,000 for fiscal years 2021;
            ``(4) $23,153,000 for fiscal years 2022; and
            ``(5) $24,310,000 for fiscal years 2023.''.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary, in coordination with the Secretary of 
Transportation, shall submit to the Committee on Science, Space, and 
Technology, the Committee on Transportation and Infrastructure, and the 
Committee on Energy and Commerce of the House of Representatives and 
the Committee on Energy and Natural Resources and the Committee on 
Commerce, Science, and Transportation of the Senate a report on 
mitigating natural gas storage leaks. The report shall include the 
following:
            (1) A quantitative study to evaluate the key uncertainties 
        related to the costs and benefits of downhole safety valves for 
        the natural gas storage industry in the United States, 
        including--
                    (A) malfunction and failure rates of modern 
                downhole safety valve designs;
                    (B) the frequency of well failures; and
                    (C) alternative emergency valve designs.
            (2) A systematic assessment of casing wall thickness 
        assessment tools, which shall--
                    (A) consider multiple tool types and reference 
                wells; and
                    (B) rigorously test and compare the ability of 
                these tools and techniques to identify, locate, and 
                characterize corroded well casings.

SEC. 14. 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 of funds equal to an amount that 
        is 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) 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.
                                 <all>
```