II 

111TH CONGRESS 

1ST SESSION S. 1013 

To authorize the Secretary of Energy to carry out a program to demonstrate 

the commercial application of integrated systems for long-term geological 

storage of carbon dioxide, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 7, 2009 

Mr. BINGAMAN (for himself, Mr. BARRASSO, Mr. DORGAN, Mr. TESTER, Mr. 

BAYH, Ms. LANDRIEU, Mr. CASEY, and Mr. VOINOVICH) introduced the 

following bill; which was read twice and referred to the Committee on Energy and Natural Resources 

A BILL 

To authorize the Secretary of Energy to carry out a program 

to demonstrate the commercial application of integrated 

systems for long-term geological storage of carbon dioxide, 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. 

4 This Act may be cited as the ‘‘Department of Energy 

5 Carbon Capture and Sequestration Program Amendments 

6 Act of 2009’’. 


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1 SEC. 2. LARGE-SCALE CARBON STORAGE PROGRAM. 

2 (a) IN GENERAL.—Subtitle F of title IX of the En3 ergy Policy Act of 2005 (42 U.S.C. 16291 et seq.) is 

4 amended by inserting after section 963 (42 U.S.C. 16293) 

5 the following: 

6 ‘‘SEC. 963A. LARGE-SCALE CARBON STORAGE PROGRAM. 

7 ‘‘(a) DEFINITIONS.—In this section: 

8 ‘‘(1) INDUSTRIAL SOURCE.—The term ‘indus9 trial source’ means any source of carbon dioxide that 

10 is not naturally occurring. 

11 ‘‘(2) LARGE-SCALE.—The term ‘large-scale’ 

12 means the injection of over 1,000,000 tons of carbon 

13 dioxide each year from industrial sources into a geo14 logical formation. 

15 ‘‘(3) SECRETARY CONCERNED.—The term ‘Sec16 retary concerned’ means— 

17 ‘‘(A) the Secretary of Agriculture (acting 

18 through the Chief of the Forest Service), with 

19 respect to National Forest System land; and 

20 ‘‘(B) the Secretary of the Interior, with re21 spect to land managed by the Bureau of Land 

22 Management (including land held for the ben23 efit of an Indian tribe). 

24 ‘‘(b) PROGRAM.—In addition to the research, develop25 ment, and demonstration program authorized by section 

26 963, the Secretary shall carry out a program to demVerDate Nov 24 2008 03:32 May 09, 2009 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1013.IS S1013

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1 onstrate the commercial application of integrated systems 

2 for the capture, injection, monitoring, and long-term geo3 logical storage of carbon dioxide from industrial sources. 

4 ‘‘(c) AUTHORIZED ASSISTANCE.—In carrying out the 

5 program, the Secretary may enter into cooperative agree6 ments to provide financial and technical assistance to up 

7 to 10 demonstration projects. 

8 ‘‘(d) PROJECT SELECTION.—The Secretary shall 

9 competitively select recipients of cooperative agreements 

10 under this section from among applicants that— 

11 ‘‘(1) provide the Secretary with sufficient geo12 logical site information (including hydrogeological 

13 and geophysical information) to establish that the 

14 proposed geological storage unit is capable of long15 term storage of the injected carbon dioxide, includ16 ing— 

17 ‘‘(A) the location, extent, and storage ca18 pacity of the geological storage unit at the site 

19 into which the carbon dioxide will be injected; 

20 ‘‘(B) the principal potential modes of 

21 geomechanical failure in the geological storage 

22 unit; 

23 ‘‘(C) the ability of the geological storage 

24 unit to retain injected carbon dioxide; and 


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1 ‘‘(D) the measurement, monitoring, and 

2 verification requirements necessary to ensure 

3 adequate information on the operation of the 

4 geological storage unit during and after the in5 jection of carbon dioxide; 

6 ‘‘(2) possess the land or interests in land nec7 essary for— 

8 ‘‘(A) the injection and storage of the car9 bon dioxide at the proposed geological storage 

10 unit; and 

11 ‘‘(B) the closure, monitoring, and long12 term stewardship of the geological storage unit; 

13 ‘‘(3) possess or have a reasonable expectation of 

14 obtaining all necessary permits and authorizations 

15 under applicable Federal and State laws (including 

16 regulations); and 

17 ‘‘(4) agree to comply with each requirement of 

18 subsection (e). 

19 ‘‘(e) TERMS AND CONDITIONS.—The Secretary shall 

20 condition receipt of financial assistance pursuant to a co21 operative agreement under this section on the recipient 

22 agreeing to— 

23 ‘‘(1) comply with all applicable Federal and 

24 State laws (including regulations), including a cer25 tification by the appropriate regulatory authority 


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1 that the project will comply with Federal and State 

2 requirements to protect drinking water supplies; 

3 ‘‘(2) in the case of industrial sources subject to 

4 the Clean Air Act (42 U.S.C. 7401 et seq.), inject 

5 only carbon dioxide captured from industrial sources 

6 in compliance with that Act; 

7 ‘‘(3) comply with all applicable construction and 

8 operating requirements for deep injection wells; 

9 ‘‘(4) measure, monitor, and test to verify that 

10 carbon dioxide injected into the injection zone is 

11 not— 

12 ‘‘(A) escaping from or migrating beyond 

13 the confinement zone; or 

14 ‘‘(B) endangering an underground source 

15 of drinking water; 

16 ‘‘(5) comply with applicable well-plugging, 

17 postinjection site care, and site closure requirements, 

18 including— 

19 ‘‘(A)(i) maintaining financial assurances 

20 during the postinjection closure and monitoring 

21 phase until a certificate of closure is issued by 

22 the Secretary; and 

23 ‘‘(ii) promptly undertaking remediation ac24 tivities for any leak from the geological storage 


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1 unit that would endanger public health or safe2 ty or natural resources; and 

3 ‘‘(B) complying with subsection (f); 

4 ‘‘(6) comply with applicable long-term care re5 quirements; 

6 ‘‘(7) maintain financial protection in a form 

7 and in an amount acceptable to— 

8 ‘‘(A) the Secretary; 

9 ‘‘(B) the Secretary with jurisdiction over 

10 the land; and 

11 ‘‘(C) the Administrator of the Environ12 mental Protection Agency; and 

13 ‘‘(8) provide the assurances described in section 

14 963(d)(4)(B). 

15 ‘‘(f) POSTINJECTION CLOSURE AND MONITORING

16 ELEMENTS.—In assessing whether a project complies with 

17 site closure requirements under subsection (e)(5), the Sec18 retary, in consultation with the Administrator of the Envi19 ronmental Protection Agency, shall determine whether the 

20 recipient of financial assistance has demonstrated contin21 uous compliance with each of the following over a period 

22 of not less than 10 consecutive years after the plume of 

23 carbon dioxide has come into equilibrium with the geologic 

24 formation that comprises the geologic storage unit fol25 lowing the cessation of injection activities: 


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1 ‘‘(1) The estimated location and extent of the 

2 project footprint (including the detectable plume of 

3 carbon dioxide and the area of elevated pressure re4 sulting from the project) has not substantially 

5 changed. 

6 ‘‘(2) There is no leakage of either carbon diox7 ide or displaced fluid in the geologic storage unit 

8 that is endangering public health and safety, includ9 ing underground sources of drinking water and nat10 ural resources. 

11 ‘‘(3) The injected or displaced fluids are not ex12 pected to migrate in the future in a manner that en13 counters a potential leakage pathway. 

14 ‘‘(4) The injection wells at the site completed 

15 into or through the injection zone or confining zone 

16 are plugged and abandoned in accordance with the 

17 applicable requirements of Federal or State law gov18 erning the wells. 

19 ‘‘(g) INDEMNIFICATION AGREEMENTS.— 

20 ‘‘(1) DEFINITION OF LIABILITY.—In this sub21 section, the term ‘liability’ means any legal liability 

22 for— 

23 ‘‘(A) bodily injury, sickness, disease, or 

24 death; 


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1 ‘‘(B) loss of or damage to property, or loss 

2 of use of property; or 

3 ‘‘(C) injury to or destruction or loss of nat4 ural resources, including fish, wildlife, and 

5 drinking water supplies. 

6 ‘‘(2) AGREEMENTS.—The Secretary may agree 

7 to indemnify and hold harmless the recipient of a co8 operative agreement under this section from liability 

9 arising out of or resulting from a demonstration 

10 project in excess of the amount of liability covered 

11 by financial protection maintained by the recipient 

12 under subsection (e)(7). 

13 ‘‘(3) EXCEPTION FOR GROSS NEGLIGENCE AND

14 INTENTIONAL MISCONDUCT.—Notwithstanding para15 graph (1), the Secretary may not indemnify the re16 cipient of a cooperative agreement under this section 

17 from liability arising out of conduct of a recipient 

18 that is grossly negligent or that constitutes inten19 tional misconduct. 

20 ‘‘(4) COLLECTION OF FEES.— 

21 ‘‘(A) IN GENERAL.—The Secretary shall 

22 collect a fee from any person with whom an 

23 agreement for indemnification is executed under 

24 this subsection in an amount that is equal to 

25 the net present value of payments made by the 


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1 United States to cover liability under the in2 demnification agreement. 

3 ‘‘(B) AMOUNT.—The Secretary shall estab4 lish, by regulation, criteria for determining the 

5 amount of the fee, taking into account— 

6 ‘‘(i) the likelihood of an incident re7 sulting in liability to the United States 

8 under the indemnification agreement; and 

9 ‘‘(ii) other factors pertaining to the 

10 hazard of the indemnified project. 

11 ‘‘(C) USE OF FEES.—Fees collected under 

12 this paragraph shall be deposited in the Treas13 ury and credited to miscellaneous receipts. 

14 ‘‘(5) CONTRACTS IN ADVANCE OF APPROPRIA15 TIONS.—The Secretary may enter into agreements 

16 of indemnification under this subsection in advance 

17 of appropriations and incur obligations without re18 gard to section 1341 of title 31, United States Code 

19 (commonly known as the ‘Anti-Deficiency Act’), or 

20 section 11 of title 41, United States Code (com21 monly known as the ‘Adequacy of Appropriations 

22 Act’). 

23 ‘‘(6) CONDITIONS OF AGREEMENTS OF INDEM24 NIFICATION.— 


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1 ‘‘(A) IN GENERAL.—An agreement of in2 demnification under this subsection may con3 tain such terms as the Secretary considers ap4 propriate to carry out the purposes of this sec5 tion. 

6 ‘‘(B) ADMINISTRATION.—The agreement 

7 shall provide that, if the Secretary makes a de8 termination the United States will probably be 

9 required to make indemnity payments under the 

10 agreement, the Attorney General— 

11 ‘‘(i) shall collaborate with the recipi12 ent of an award under this subsection; and 

13 ‘‘(ii) may— 

14 ‘‘(I) approve the payment of any 

15 claim under the agreement of indem16 nification; 

17 ‘‘(II) appear on behalf of the re18 cipient; 

19 ‘‘(III) take charge of an action; 

20 and 

21 ‘‘(IV) settle or defend an action. 

22 ‘‘(C) SETTLEMENT OF CLAIMS.— 

23 ‘‘(i) IN GENERAL.—The Attorney 

24 General shall have final authority on behalf 

25 of the United States to settle or approve 


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1 the settlement of any claim under this sub2 section on a fair and reasonable basis with 

3 due regard for the purposes of this sub4 section. 

5 ‘‘(ii) EXPENSES.—The settlement 

6 shall not include expenses in connection 

7 with the claim incurred by the recipient. 

8 ‘‘(h) FEDERAL LAND.— 

9 ‘‘(1) IN GENERAL.—The Secretary concerned 

10 may authorize the siting of a project on Federal 

11 land under the jurisdiction of the Secretary con12 cerned in a manner consistent with applicable laws 

13 and land management plans and subject to such 

14 terms and conditions as the Secretary concerned de15 termines to be necessary. 

16 ‘‘(2) FRAMEWORK FOR GEOLOGICAL CARBON

17 SEQUESTRATION ON PUBLIC LAND.—In determining 

18 whether to authorize a project on Federal land, the 

19 Secretary concerned shall take into account the 

20 framework for geological carbon sequestration on 

21 public land prepared in accordance with section 714 

22 of the Energy Independence and Security Act of 

23 2007 (Public Law 110–140; 121 Stat. 1715). 

24 ‘‘(i) ACCEPTANCE OF TITLE AND LONG-TERM MONI25 TORING.— 


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1 ‘‘(1) IN GENERAL.—As a condition of a cooper2 ative agreement under this section, the Secretary 

3 may accept title to, or transfer of administrative ju4 risdiction from another Federal agency over, any 

5 land or interest in land necessary for the monitoring, 

6 remediation, or long-term stewardship of a project 

7 site. 

8 ‘‘(2) LONG-TERM MONITORING ACTIVITIES.— 

9 After accepting title to, or transfer of, a site closed 

10 in accordance with this section, the Secretary shall 

11 monitor the site and conduct any remediation activi12 ties to ensure the geological integrity of the site and 

13 prevent any endangerment of public health or safety. 

14 ‘‘(3) FUNDING.—There is appropriated to the 

15 Secretary, out of funds of the Treasury not other16 wise appropriated, such sums as are necessary to 

17 carry out paragraph (2).’’. 

18 (b) CONFORMING AMENDMENTS.— 

19 (1) Section 963 of the Energy Policy Act of 

20 2005 (42 U.S.C. 16293) is amended— 

21 (A) by redesignating subsections (a) 

22 through (d) as subsections (b) through (e), re23 spectively; 

24 (B) by inserting before subsection (b) (as 

25 so redesignated) the following: 


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1 ‘‘(a) DEFINITIONS.—In this section: 

2 ‘‘(1) INDUSTRIAL SOURCE.—The term ‘indus3 trial source’ means any source of carbon dioxide that 

4 is not naturally occurring. 

5 ‘‘(2) LARGE-SCALE.—The term ‘large-scale’ 

6 means the injection of over 1,000,000 tons of carbon 

7 dioxide from industrial sources over the lifetime of 

8 the project.’’; 

9 (C) in subsection (b) (as so redesignated), 

10 by striking ‘‘IN GENERAL’’ and inserting ‘‘PRO11 GRAM’’; 

12 (D) in subsection (c) (as so redesignated), 

13 by striking ‘‘subsection (a)’’ and inserting ‘‘sub14 section (b)’’; and 

15 (E) in subsection (d)(3) (as so redesig16 nated), by striking subparagraph (D). 

17 (2) Sections 703(a)(3) and 704 of the Energy 

18 Independence and Security Act of 2007 (42 U.S.C. 

19 17251(a)(3), 17252) are amended by striking ‘‘sec20 tion 963(c)(3) of the Energy Policy Act of 2005 (42 

21 U.S.C. 16293(c)(3))’’ each place it appears and in22 serting ‘‘section 963(d)(3) of the Energy Policy Act 

23 of 2005 (42 U.S.C. 16293(d)(3))’’. 


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1 SEC. 3. TRAINING PROGRAM FOR STATE AGENCIES. 

2 (a) ESTABLISHMENT.—The Secretary of Energy, in 

3 consultation with the Administrator of the Environmental 

4 Protection Agency and the Secretary of Transportation, 

5 shall establish a program to provide grants for employee 

6 training purposes to State agencies involved in permitting, 

7 management, inspection, and oversight of carbon capture, 

8 transportation, and storage projects. 

9 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

10 authorized to be appropriated to the Secretary of Energy 

11 to carry out this section $10,000,000 for each of fiscal 

12 years 2010 through 2020. 

Æ 


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