II 

113TH CONGRESS 

2D SESSION S. 2287 

To facilitate the development and commercial deployment of carbon capture 

and sequestration technologies, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 5, 2014 

Mr. ROCKEFELLER (for himself and Mr. WALSH) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To facilitate the development and commercial deployment 

of carbon capture and sequestration 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. 

4 This Act may be cited as the ‘‘Carbon Capture and 

5 Sequestration Deployment Act of 2014’’. 


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1 TITLE I—CARBON CAPTURE AND 

2 SEQUESTRATION INNOVA3 TION PROGRAM 

4 SEC. 101. PARTNERSHIPS FOR CARBON CAPTURE AND SE5 QUESTRATION. 

6 (a) ESTABLISHMENT OF PROGRAM.— 

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

8 the date of enactment of this Act, the Secretary of 

9 Energy (referred to in this Act as the ‘‘Secretary’’) 

10 shall establish a cooperative industry-government re11 search and development program, in addition to and 

12 in cooperation with the carbon capture and seques13 tration research and development program of the Of14 fice of Fossil Energy, to demonstrate novel and in15 novative technologies— 

16 (A) to capture or prevent carbon dioxide 

17 emissions from carbon-based fuels; 

18 (B) to enable the beneficial use of carbon 

19 dioxide; or 

20 (C) to enable the long-term storage of car21 bon dioxide. 

22 (2) PARTICIPATION OF NATIONAL LABORA23 TORIES AND UNIVERSITIES.—The program— 

24 (A) shall include the participation of the 

25 National Energy Technology Laboratory; and 


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1 (B) may include the participation of other 

2 National Laboratories, institutions of higher 

3 education, and other appropriate entities. 

4 (b) COST SHARING.—For purposes of developing and 

5 demonstrating the technologies or approaches referred to 

6 in subsection (a)(1)— 

7 (1) the Secretary shall provide at least 80 per8 cent of the cost of the development projects; and 

9 (2) the industry participant shall provide not 

10 more than 20 percent of the cost of the development 

11 projects. 

12 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated to the Secretary to carry 

14 out this section— 

15 (1) $110,000,000 for each of fiscal years 2015 

16 through 2019; 

17 (2) $60,000,000 for each of fiscal years 2020 

18 through 2024; and 

19 (3) $30,000,000 for each of fiscal years 2025 

20 through 2029. 

21 SEC. 102. ANNUAL DEPARTMENT OF ENERGY ASSESSMENT. 

22 (a) IN GENERAL.— 

23 (1) DEPARTMENT OF ENERGY REPORT.—Not 

24 later than 1 year after the date of enactment of this 

25 Act and annually thereafter until the Secretary deVerDate Mar 15 2010 23:18 May 05, 2014 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2287.IS S2287

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1 termines that technology preventing the emission of, 

2 capturing, transporting, permanently storing or se3 questering, or putting to beneficial use carbon diox4 ide is available to the commercial marketplace, the 

5 Secretary shall— 

6 (A) conduct an assessment in accordance 

7 with subsection (b) of the existing Federal pro8 grams supporting the technology; and 

9 (B) submit to the appropriate authorizing 

10 and appropriating committees of Congress a re11 port on the results of the assessment. 

12 (2) GOVERNMENT ACCOUNTABILITY OFFICE RE13 VIEW.—Not later than 1 year after the first report 

14 is provided to the appropriate authorizing and ap15 propriating committees of Congress under paragraph 

16 (1)(B) and subsequently as needed until technology 

17 preventing the emission of, capturing, transporting, 

18 permanently storing or sequestering, and putting to 

19 beneficial use carbon dioxide is available to the com20 mercial marketplace, the Comptroller General of the 

21 United States shall conduct a review of the report 

22 described in paragraph (1)(C) in accordance with 

23 subsection (c). 


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1 (b) DEPARTMENT OF ENERGY REPORT REQUIRE2 MENTS.—The Secretary shall include in the report re3 quired under subsection (a)(1)(B)— 

4 (1) a detailed description of the existing pro5 grams, including each major program area, that con6 duct or support research, development, demonstra7 tion, and deployment of technology— 

8 (A) to prevent the emission of carbon diox9 ide or to capture carbon dioxide from sources, 

10 including fossil fuel-based power plants; 

11 (B) to transport carbon dioxide; 

12 (C) to store or sequester captured carbon 

13 dioxide permanently; or 

14 (D) to put captured carbon dioxide to ben15 eficial use; 

16 (2) an assessment, based on Federal Govern17 ment laboratory research experience, available indus18 try research experience, and such other data and in19 formation as the Secretary considers useful and ap20 propriate, to determine whether each major program 

21 area and principal projects within the areas de22 scribed in paragraph (1) are designed to, and will 

23 advance fundamental knowledge or achieve signifi24 cant technical advancement and materially improve 

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1 tion of carbon dioxide emissions or capture of carbon 

2 dioxide or the transport, permanent storage, or ben3 eficial use of captured carbon dioxide; and 

4 (3) an assessment of the estimated timeframe 

5 and costs of the Secretary necessary to reasonably 

6 conclude that technology will be available to the 

7 commercial marketplace. 

8 (c) GOVERNMENT ACCOUNTABILITY OFFICE REVIEW

9 REQUIREMENTS.—The Comptroller General of the United 

10 States shall include in the review required under sub11 section (a)(2)— 

12 (1) an analysis of the estimated timeframes and 

13 costs of the Secretary, as reported pursuant to sub14 section (b)(3); 

15 (2) any recommendations that the Comptroller 

16 General of the United States considers appropriate 

17 and useful to improve the likelihood of achieving 

18 technological advancements to mitigate carbon diox19 ide emissions or to expedite the availability of carbon 

20 capture and sequestration technology for the com21 mercial marketplace; 

22 (3) an assessment of any legal or regulatory im23 pediment by any Federal agency or department that 

24 has arisen in relation to the deployment of carbon 

25 capture and storage technology, including any delays 


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1 in the permitting of the technology or the construc2 tion or operation of any facility; and 

3 (4) any other analyses the Comptroller General 

4 of the United States considers necessary or appro5 priate. 

6 (d) BUDGET REQUEST REPORT.—In the budget re7 quests for each of fiscal years 2016 through 2030, the 

8 President shall include in the budget request of the Sec9 retary for the Fossil Energy Program a report that as10 sesses— 

11 (1) the progress of the Secretary in imple12 menting the recommendations of the Comptroller 

13 General of the United States and compares the esti14 mated costs of completing implementation of those 

15 recommendations to the requested budget levels; and 

16 (2) the progress made for the preceding fiscal 

17 year toward achieving the goals of the program for 

18 which funding is requested. 

19 TITLE II—CARBON DIOXIDE 

20 SEQUESTRATION CREDIT 

21 SEC. 201. MODIFICATIONS TO CARBON DIOXIDE SEQUES22 TRATION CREDIT. 

23 (a) ALLOCATION AND CERTIFICATION OF CREDIT.— 


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1 (1) IN GENERAL.—Subsection (e) of section 

2 45Q of the Internal Revenue Code of 1986 is 

3 amended to read as follows: 

4 ‘‘(e) LIMITATION.— 

5 ‘‘(1) ALLOCATION LIMITATION.—No credit shall 

6 be allowed under subsection (a) with respect to 

7 qualified carbon dioxide captured by carbon capture 

8 equipment at a qualified facility for the amount of 

9 qualified carbon dioxide captured by such carbon 

10 capture equipment in excess of— 

11 ‘‘(A) the portion of the national limitation 

12 allocated with respect to such carbon capture 

13 equipment under subsection (f), over 

14 ‘‘(B) the amount of qualified carbon diox15 ide captured by such carbon capture equipment 

16 during periods before August 1, 2015, for 

17 which a credit under subsection (a) was al18 lowed. 

19 ‘‘(2) NATIONAL LIMITATION.—For purposes of 

20 paragraph (1)(A), the national limitation is the ex21 cess of— 

22 ‘‘(A) 75,000,000 metric tons of qualified 

23 carbon dioxide, over 

24 ‘‘(B) the number of metric tons of quali25 fied carbon dioxide captured before August 1, 


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1 2015, for which a credit under subsection (a) 

2 was allowed.’’. 

3 (2) ALLOCATION AND CERTIFICATION.—Section 

4 45Q of such Code is amended by adding at the end 

5 the following new subsection: 

6 ‘‘(f) ALLOCATION FOR AND CERTIFICATION OF CAR7 BON CAPTURE PROJECTS.— 

8 ‘‘(1) ESTABLISHMENT OF PROCEDURES.—Not 

9 later than July 1, 2015, the Secretary shall estab10 lish, by regulation, processes and procedures— 

11 ‘‘(A) for allocating the national limitation 

12 under subsection (e)(2) to projects for placing 

13 carbon capture equipment in service at qualified 

14 facilities, and 

15 ‘‘(B) for certifying projects for which an 

16 allocation has been made under subparagraph 

17 (A). 

18 ‘‘(2) ALLOCATIONS.— 

19 ‘‘(A) APPLICATION.—Each applicant for 

20 an allocation under this subsection shall submit 

21 an application to the Secretary under such 

22 terms and conditions as are established by the 

23 Secretary in regulations. 


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1 ‘‘(B) PRIORITY.—The Secretary shall rank 

2 applications received under subparagraph (A) in 

3 the following order: 

4 ‘‘(i) Applicants with applications re5 ceived by the Secretary on an earlier date 

6 shall be given higher priority than appli7 cants with applications received on a later 

8 date. For purposes of this clause, any ap9 plication received before the date that is 30 

10 days after the procedures and processes 

11 described in paragraph (1) are established 

12 shall be considered to have been received 

13 on such date. 

14 ‘‘(ii) In the case of applications re15 ceived on the same date, those applicants 

16 concurrently applying for certification shall 

17 be given higher priority. 

18 ‘‘(iii) In the case of applications re19 ceived on the same date and concurrently 

20 applying for certification, those projects 

21 with the earlier date by which construction 

22 commenced shall be given higher priority. 

23 ‘‘(C) ALLOCATION TO APPLICANTS.—Sub24 ject to subparagraph (D), the Secretary shall 

25 allocate tonnage to each applicant— 


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1 ‘‘(i) based on the amount requested 

2 on the application, and 

3 ‘‘(ii) in order of the rank of the appli4 cation under subparagraph (B), 

5 until the amount of tonnage available under 

6 this section is exhausted. Projects for which no 

7 or a partial allocation is made shall retain their 

8 ranking and shall be eligible to receive an allo9 cation of tonnage previously allocated that is 

10 forfeited or recaptured. 

11 ‘‘(D) LIMITATION.—The Secretary may 

12 not allocate to any project more than the lesser 

13 of— 

14 ‘‘(i) the number of metric tons of 

15 qualified carbon dioxide projected to be 

16 captured at the qualified facility under the 

17 project during the 10-year period begin18 ning on the date on which such project is 

19 placed in service, 

20 ‘‘(ii) the number of metric tons of 

21 qualified carbon dioxide projected to be 

22 captured at the qualified facility under the 

23 project— 

24 ‘‘(I) which are subject to a writ25 ten, binding contract for disposal in 


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1 secure geological storage (whether or 

2 not used as a tertiary injectant), or 

3 ‘‘(II) for which there is a plan for 

4 such disposal by the applicant, or 

5 ‘‘(iii) 15,000,000 metric tons of quali6 fied carbon dioxide. 

7 ‘‘(E) REDUCTION FOR PRIOR CREDITS.— 

8 The amount of any allocation under subpara9 graph (C) to any project shall be reduced by 

10 the number of metric tons of carbon dioxide 

11 captured by the carbon capture equipment with 

12 respect to such project before August 1, 2015, 

13 for which a credit was allowed under subsection 

14 (a). 

15 ‘‘(3) CERTIFICATION.— 

16 ‘‘(A) IN GENERAL.—No credit shall be al17 lowed under subsection (a) with respect to any 

18 project for using carbon capture equipment to 

19 capture qualified carbon dioxide at a qualified 

20 facility before the date on which such project is 

21 certified under this paragraph. 

22 ‘‘(B) APPLICATION FOR CERTIFICATION.— 

23 Each project which is allocated a portion of the 

24 national limitation shall submit an application 

25 for certification to the Secretary containing 


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1 such information as the Secretary may require. 

2 Such application shall be submitted— 

3 ‘‘(i) not later than— 

4 ‘‘(I) 6 months after the date on 

5 which such project receives an alloca6 tion, and 

7 ‘‘(II) 30 days after the later of 

8 the date on which the regulations, 

9 processes, and procedures are estab10 lished under paragraph (1) or the 

11 construction start date, and 

12 ‘‘(ii) not earlier than the construction 

13 start date. 

14 For purposes of this subparagraph, the term 

15 ‘construction start date’ means the earlier of 

16 the first date on which physical work on the 

17 project of a significant nature is undertaken or 

18 the date by which 5 percent or more of the total 

19 cost of the project has been spent. 

20 ‘‘(C) REVOCATION OF CERTIFICATION.— 

21 ‘‘(i) MATERIALLY INACCURATE REP22 RESENTATIONS.—The Secretary may re23 voke a certification under this paragraph if 

24 the Secretary determines that an applicant 


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1 has made a materially inaccurate represen2 tation with respect to the project. 

3 ‘‘(ii) FAILURE TO TIMELY PLACE

4 EQUIPMENT IN SERVICE.—A certification 

5 under this paragraph shall be revoked in 

6 any case in which carbon capture equip7 ment with respect to the project is not 

8 placed in service— 

9 ‘‘(I) before the date which is 5 

10 years after the date on which the allo11 cation was issued, in the case of a 

12 new industrial facility, or 

13 ‘‘(II) before the date which is 3 

14 years after the date on which the allo15 cation was issued, in the case of a 

16 modification of an existing industrial 

17 facility. 

18 ‘‘(D) REALLOCATION.—In any case— 

19 ‘‘(i) in which a certification is revoked 

20 under subparagraph (C), or 

21 ‘‘(ii) in which a taxpayer to whom an 

22 allocation is made under paragraph (2) 

23 fails to obtain certification for a project 

24 under this paragraph, 


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1 the amount of national limitation which was al2 located to such project under paragraph (2) 

3 shall be reallocated under such rules as estab4 lished by the Secretary under regulations. 

5 ‘‘(4) PUBLIC DISCLOSURE.— 

6 ‘‘(A) IN GENERAL.—The Secretary shall, 

7 within 30 days of making any allocation, certifi8 cation, revocation, or change in the ranking of 

9 projects, publicly disclose the amount of such 

10 allocation, a description of the project for which 

11 such allocation, certification, or revocation was 

12 made, and the change in the ranking of 

13 projects, as the case may be. 

14 ‘‘(B) ANNUAL REPORT.—The Secretary 

15 shall issue an annual report summarizing cred16 its allocated and available for allocation.’’. 

17 (3) CONFORMING AMENDMENTS.— 

18 (A) Paragraph (2) of section 45Q(c) of 

19 such Code is amended by inserting ‘‘which is 

20 part of a project which is certified under sub21 section (f)(3)’’ after ‘‘carbon capture equip22 ment’’. 

23 (B) Paragraph (3) of section 45Q(c) of 

24 such Code is amended by striking ‘‘which’’ and 


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1 inserting ‘‘at which such carbon capture equip2 ment’’. 

3 (b) 10-YEAR CREDIT LIMITATION.—Section 45Q(a) 

4 of the Internal Revenue Code of 1986 is amended— 

5 (1) in paragraph (1)(A), by inserting ‘‘during 

6 the 10-year period beginning on the later of the date 

7 on which the carbon capture equipment described in 

8 subsection (c)(1) is placed in service or the date on 

9 which the project with respect to such carbon cap10 ture equipment was certified under subsection 

11 (f)(3)’’ after ‘‘qualified facility’’, and 

12 (2) in paragraph (2)(A), by inserting ‘‘during 

13 the 10-year period beginning on the later of the date 

14 on which the carbon capture equipment described in 

15 subsection (c)(1) is placed in service or the date on 

16 which the project with respect to such carbon cap17 ture equipment was certified under subsection 

18 (f)(3)’’ after ‘‘qualified facility’’. 

19 (c) DEFINITION OF CARBON CAPTURE EQUIP20 MENT.—Section 45Q(d) of the Internal Revenue Code of 

21 1986 is amended by adding at the end the following new 

22 paragraph: 

23 ‘‘(8) CARBON CAPTURE EQUIPMENT.—The term 

24 ‘carbon capture equipment’ means equipment to cap25 ture and pressurize qualified carbon dioxide.’’. 


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1 (d) CREDIT ALLOWED TO TAXPAYER PERFORMING

2 CARBON CAPTURE.— 

3 (1) IN GENERAL.—Paragraph (5) of section 

4 45Q(d) of the Internal Revenue Code of 1986 is 

5 amended to read as follows: 

6 ‘‘(5) PERSON TO WHOM CREDIT IS ALLOW7 ABLE.— 

8 ‘‘(A) IN GENERAL.—Except as provided in 

9 subparagraph (B) or in regulations prescribed 

10 by the Secretary, any credit under this section 

11 shall be allowed to the taxpayer who— 

12 ‘‘(i) captures the qualified carbon di13 oxide, and 

14 ‘‘(ii) through contract or otherwise, 

15 disposes of the qualified carbon dioxide in 

16 a manner meeting the requirements of 

17 paragraph (1)(B) or (2)(C) of subsection 

18 (a), as the case may be. 

19 ‘‘(B) ELECTION TO ALLOW CREDIT TO

20 PERSON DISPOSING CARBON DIOXIDE.—If the 

21 person described in subparagraph (A) makes an 

22 election under this subparagraph in such man23 ner as the Secretary may prescribe by regula24 tions, the credit under this section— 


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1 ‘‘(i) shall be allowable to the person 

2 that disposes of qualified carbon dioxide in 

3 a manner meeting the requirements of 

4 paragraph (1)(B) or (2)(C) of subsection 

5 (a), as the case may be, and 

6 ‘‘(ii) shall not be allowable to the per7 son described in subparagraph (A).’’. 

8 (2) CONFORMING AMENDMENTS.— 

9 (A) Section 45Q(a) of such Code is amend10 ed by striking ‘‘by the taxpayer’’ each place it 

11 appears in paragraphs (1)(B), (2)(B), and 

12 (2)(C). 

13 (B) Section 45Q(c) of such Code, as 

14 amended by subsection (a), is amended by 

15 striking paragraph (1) and redesignating para16 graphs (2) and (3) as paragraphs (1) and (2), 

17 respectively. 

18 (e) RULES RELATING TO CREDIT RECAPTURE.— 

19 Paragraph (6) of section 45Q(d) of the Internal Revenue 

20 Code of 1986 is amended by adding at the end the fol21 lowing new sentence: ‘‘Notwithstanding section 7805(b), 

22 any regulation issued pursuant to this paragraph shall 

23 apply only with respect to qualified carbon dioxide cap24 tured or disposed of after the date on which such regula25 tion is filed with the Federal Register.’’. 


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1 (f) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to carbon dioxide captured after 

3 July 31, 2015. 

4 TITLE III—INCENTIVES FOR 

5 CARBON CAPTURE AND SE6 QUESTRATION PROJECTS 

7 SEC. 301. FEDERAL FINANCIAL INCENTIVES. 

8 (a) ELIGIBLE PROJECTS.—Section 1703 of the En9 ergy Policy Act of 2005 (42 U.S.C. 16513) is amended— 

10 (1) in subsection (b)(5), by inserting ‘‘and 

11 projects described in subsection (f)’’ before the pe12 riod at the end; and 

13 (2) by adding at the end the following: 

14 ‘‘(f) CARBON CAPTURE AND SEQUESTRATION

15 PROJECTS.— 

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

17 ‘‘(A) COMMERCIAL SCALE.—The term 

18 ‘commercial scale’ means, with respect to an 

19 electric generation unit, a unit that is de20 signed— 

21 ‘‘(i) to generate and sell electric power 

22 directly to consumers or for resale; and 

23 ‘‘(ii) with a carbon dioxide capture 

24 system having a useful life of not fewer 

25 than 15 years. 


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1 ‘‘(B) ELIGIBLE UNIT.—The term ‘eligible 

2 unit’ has the meaning given the term in section 

3 84E of the Internal Revenue Code of 1986. 

4 ‘‘(C) PERMANENT GEOLOGIC STORAGE

5 SITE.—The term ‘permanent geologic storage 

6 site’ means a site that— 

7 ‘‘(i) the Secretary determines is capa8 ble of storing carbon dioxide; and 

9 ‘‘(ii) is located in saline formations or 

10 other deep geologic storage structures. 

11 ‘‘(2) GUARANTEES AUTHORIZED.—Notwith12 standing subsection (a)(2), the Secretary may make 

13 guarantees in amounts totaling not more than 

14 $20,000,000,000 for the following carbon capture 

15 and sequestration projects: 

16 ‘‘(A) The construction of new industrial fa17 cility units or commercial scale electric genera18 tion units that are eligible units utilizing carbon 

19 capture and sequestration technology. 

20 ‘‘(B) The retrofit of existing industrial fa21 cility units or commercial scale electric genera22 tion units that are eligible units providing for 

23 carbon capture and sequestration. 

24 ‘‘(C) The construction of carbon dioxide 

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1 ide from carbon capture and sequestration fa2 cilities to— 

3 ‘‘(i) sequestration sites; or 

4 ‘‘(ii) sites where the carbon dioxide 

5 will be used for hydrocarbon recovery. 

6 ‘‘(3) CERTIFICATION OF ELIGIBLE UNITS.—A 

7 unit shall not be eligible to receive a guarantee 

8 under paragraph (2) unless the Secretary has cer9 tified the unit pursuant to a certification process es10 tablished by the Secretary by rule.’’. 

11 (b) ADDITIONAL AUTHORIZATION.—Section 1704 of 

12 the Energy Policy Act of 2005 (42 U.S.C. 16514) is 

13 amended by adding at the end the following: 

14 ‘‘(c) ADDITIONAL AUTHORIZATION.—In addition to 

15 other amounts made available under this section, there is 

16 authorized to be appropriated such sums as are necessary 

17 to cover the credit loan subsidy costs associated with the 

18 guarantees described in section 1703(f).’’. 

19 (c) TAX CREDITS.— 

20 (1) IN GENERAL.—Subpart E of part IV of 

21 subchapter A of chapter 1 of the Internal Revenue 

22 Code of 1986 is amended by inserting after section 

23 48D the following new section: 


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1 ‘‘SEC. 48E. PIONEER CCS FACILITIES. 

2 ‘‘(a) ADDITIONAL QUALIFYING ADVANCED COAL

3 PROJECT CREDIT.—For purposes of section 46, the quali4 fying advanced coal project credit for any taxable year 

5 shall also include an additional amount equal to the appli6 cable percentage (as determined under subsection (c)) of 

7 the incremental cost for carbon capture and sequestration 

8 systems for eligible units, determined as follows: 

9 ‘‘(1) For an eligible unit that is a new electric 

10 generation unit, the incremental costs shall be the 

11 amount by which the costs incurred by the taxpayer 

12 for the unit exceed the costs of construction of a 

13 comparable supercritical pulverized coal unit without 

14 carbon capture and sequestration technology. To es15 tablish incremental costs, the taxpayer shall obtain 

16 a certified report of a qualified independent engineer 

17 estimating the differential construction cost between 

18 the eligible unit and a comparably sized supercritical 

19 pulverized coal unit without carbon capture and se20 questration. The independent engineer shall utilize 

21 cost estimates for supercritical pulverized coal units 

22 available from Federal agencies, academia and/or the 

23 private sector, appropriately adjusted for size, fuel 

24 source and location. An engineering design of a hy25 pothetical supercritical pulverized coal unit shall not 

26 be required to establish the incremental costs. 


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1 ‘‘(2) For an eligible unit that is a new indus2 trial unit, the incremental costs shall be the amount 

3 by which the costs incurred by the taxpayer for the 

4 unit exceed the costs of construction of a comparable 

5 industrial unit without carbon capture and seques6 tration. 

7 ‘‘(3) For an eligible unit that retrofits a carbon 

8 capture, transportation, and sequestration system on 

9 an existing generation or industrial unit, the incre10 mental cost shall be the construction costs incurred 

11 by the taxpayer for the carbon capture and seques12 tration system. 

13 ‘‘(4) The Secretary of Energy shall certify the 

14 amount of incremental cost for carbon capture and 

15 sequestration systems for eligible units in each case, 

16 based on appropriate information. 

17 ‘‘(b) ELIGIBLE UNIT.—For purposes of this section, 

18 the term ‘eligible unit’ means an electric generation unit 

19 or industrial facility unit located in the United States 

20 that— 

21 ‘‘(1) uses coal or petroleum coke for at least 75 

22 percent of the fuel used by the unit, 

23 ‘‘(2) uses carbon capture technology to capture 

24 and sequester not less than 65 percent of the total 

25 carbon dioxide emissions of the unit, 


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1 ‘‘(3) transports such captured carbon dioxide to 

2 a permanent geologic storage site in the United 

3 States or to a site on the North American continent 

4 for use for hydrocarbon recovery, and 

5 ‘‘(4) provides for the permanent storage of such 

6 carbon dioxide in such site. 

7 ‘‘(c) APPLICABLE PERCENTAGE.— 

8 ‘‘(1) IN GENERAL.—For purposes of subsection 

9 (a), the applicable percentage shall be the amount 

10 (expressed as a percentage) equal to the sum of— 

11 ‘‘(A) 15 percent, and 

12 ‘‘(B) the amount (expressed as a percent13 age) which bears the same ratio to 15 percent 

14 as the captured emissions percentage (as deter15 mined under paragraph (2)) bears to 35 per16 cent. 

17 ‘‘(2) CARBON DIOXIDE EMISSIONS CAP18 TURED.—For purposes of paragraph (1), the cap19 tured emissions percentage shall be equal to— 

20 ‘‘(A) the percentage of total carbon dioxide 

21 emissions of the eligible unit that is captured 

22 and sequestered, minus 

23 ‘‘(B) 65 percentage points. 


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1 ‘‘(d) ELECTION.—No costs for which a credit has 

2 been provided under section 48A or section 48B shall be 

3 eligible for a credit under this section. 

4 ‘‘(e) RECAPTURE.—The Secretary shall, by regula5 tions, provide for recapturing the benefit of any credit al6 lowable under subsection (a) with respect to any unit that 

7 fails to attain or maintain the requirements under sub8 section (b).’’. 

9 (2) CLERICAL AMENDMENT.—The table of sec10 tions for subpart E of part IV of subchapter A of 

11 chapter 1 of such Code is amended by inserting 

12 after the item relating to section 48D the following 

13 new item: 

‘‘48E. Pioneer CCS facilities.’’. 

14 (d) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply with respect to— 

16 (1) new facilities placed in service after Decem17 ber 31, 2014, and before January 1, 2026; and 

18 (2) the retrofit of existing facilities that com19 mence operation with the retrofit after December 

20 31, 2014, and before January 1, 2026. 

Æ 


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