II 

111TH CONGRESS 

2D SESSION S. 3591 

To provide financial incentives and a regulatory framework to facilitate the 

development and early deployment of carbon capture and sequestration 

technologies, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 14, 2010 

Mr. ROCKEFELLER (for himself and Mr. VOINOVICH) introduced the following 

bill; which was read twice and referred to the Committee on Finance 

A BILL 

To provide financial incentives and a regulatory framework 

to facilitate the development and early 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 2010’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 

TITLE I—CARBON CAPTURE AND SEQUESTRATION INNOVATION 

PROGRAM 


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Sec. 101. Partnerships for carbon capture and sequestration. 

Sec. 102. Annual Department of Energy assessment. 

TITLE II—CARBON CAPTURE AND SEQUESTRATION PROJECTS 

SUBTITLE A—CARBON CAPTURE AND SEQUESTRATION EARLY 

AND EFFECTIVE DEPLOYMENT FUNDING ACT OF 2010 

Sec. 201. Short title. 

Sec. 202. Definitions. 

Sec. 203. Special funding program for development and deployment of carbon 

capture, sequestration, and conversion technologies. 

Sec. 204. Carbon capture and sequestration program partnership council. 

Sec. 205. Functions and administration of the special funding program. 

Sec. 206. Assessments and funding. 

Sec. 207. ERCOT. 

Sec. 208. Determination of fossil fuel-based electricity deliveries. 

Sec. 209. Compliance with assessments. 

Sec. 210. Midcourse review. 

Sec. 211. Recovery of costs. 

SUBTITLE B—SEQUESTRATION TAX CREDIT AND CAPACITY 

INCENTIVES 

Sec. 251. Carbon sequestration tax credit amendments. 

Sec. 252. Federal financial incentives for additional 10 GW of capacity. 

TITLE III—62-GW EARLY ADOPTER PROGRAM; SEQUESTRATION 

BONDS 

Sec. 301. Tax credit for early adoption of CCS. 

Sec. 302. Carbon sequestration bonds. 

TITLE IV—CCS TECHNOLOGY STANDARD FOR POWERPLANTS 

Sec. 401. CCS standards for coal-fueled power plants. 

Sec. 402. Consolidated review of Federal authorizations. 

TITLE V—CARBON STORAGE STEWARDSHIP 

Sec. 501. Short title. 

Sec. 502. Purpose. 

Sec. 503. Definitions. 

Sec. 504. Stewardship responsibility. 

Sec. 505. Responsibility for payment of claims. 

Sec. 506. Carbon Storage Stewardship Trust Fund. 

Sec. 507. Payments from the Trust Fund. 

Sec. 508. Carbon Storage Stewardship Board. 

Sec. 509. Adjudication of public claims. 

Sec. 510. First mover projects. 

Sec. 511. Relationship to other law. 


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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.—Within 12 months after the 

8 date of enactment of this Act, the Secretary of En9 ergy shall establish a cooperative industry-govern10 ment research and development program, in addition 

11 to and in cooperation with the Office of Fossil Ener12 gy’s carbon capture and sequestration research and 

13 development program, to demonstrate novel and in14 novative technologies— 

15 (A) to capture or prevent carbon dioxide 

16 emissions from carbon-based fuels; 

17 (B) to enable the beneficial use of carbon 

18 dioxide; or 

19 (C) to enable the long-term storage of car20 bon dioxide. 

21 (2) PARTICIPATION OF NATIONAL LABORA22 TORIES AND UNIVERSITIES.—The program shall in23 clude the participation of the National Energy Tech24 nology Laboratory and may include the participation 


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1 of other National Laboratories, universities, and 

2 other appropriate entities. 

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

4 demonstrating the technologies or approaches referred to 

5 in subsection (a), the Secretary shall provide at least 80 

6 percent of the cost of the development projects and the 

7 industry participant shall provide not more than 20 per8 cent of such cost. 

9 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

10 are authorized to be appropriated to the Secretary to carry 

11 out this section— 

12 (1) $100,000,000 for each of the fiscal years 

13 2011 through 2015; 

14 (2) $50,000,000 for each of the fiscal years 

15 2016 through 2020; and 

16 (3) $20,000,000 for each of the fiscal years 

17 2021 through 2025. 

18 SEC. 102. ANNUAL DEPARTMENT OF ENERGY ASSESSMENT. 

19 (a) IN GENERAL.— 

20 (1) DEPARTMENT OF ENERGY REPORT.—With21 in 1 year after the date of enactment of this Act and 

22 annually thereafter until the Secretary of Energy de23 termines that technology preventing the emission of, 

24 capturing, transporting, permanently storing or se25 questering, or putting to beneficial use carbon dioxVerDate Mar 15 2010 04:16 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3591.IS S3591

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1 ide is available to the commercial marketplace, the 

2 Department of Energy shall conduct an assessment 

3 in accordance with subsection (b) of this section of 

4 the existing Federal programs supporting such tech5 nology and report to the Secretary and the appro6 priate authorizing and appropriating committees of 

7 the Congress on the results of the assessment. 

8 (2) GOVERNMENT ACCOUNTABILITY OFFICE RE9 VIEW.—Within 1 year after the first report is pro10 vided to the Secretary and to the appropriate au11 thorizing and appropriating committees of the Con12 gress under paragraph (1) and subsequently as 

13 needed until technology preventing the emission of, 

14 capturing, transporting, permanently storing or se15 questering, and putting to beneficial use carbon di16 oxide is available to the commercial marketplace, the 

17 Comptroller General shall conduct a review of the 

18 report described in paragraph (1) in accordance with 

19 subsection (c) of this section. 

20 (b) DEPARTMENT OF ENERGY REPORT REQUIRE21 MENTS.—The Department of Energy shall include in the 

22 report— 

23 (1) a detailed description of the existing pro24 grams, including each major program area, that conVerDate Mar 15 2010 04:16 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3591.IS S3591

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1 ducts or supports research, development, demonstra2 tion, and deployment of technology— 

3 (A) to prevent the emission of carbon diox4 ide or capture of carbon dioxide from sources, 

5 including fossil fuel-based power plants; 

6 (B) to transport carbon dioxide; 

7 (C) to store or sequester captured carbon 

8 dioxide permanently; or 

9 (D) to put captured carbon dioxide to ben10 eficial use; 

11 (2) an assessment, based upon government lab12 oratory research experience, available industry re13 search experience, and such other data and informa14 tion as the Department of Energy deems useful and 

15 appropriate, to determine whether each major pro16 gram area and principal projects within these areas 

17 are designed to, and will, advance fundamental 

18 knowledge or achieve significant technical advance19 ment and materially improve the technology base to 

20 effectively address the prevention of carbon dioxide 

21 emissions or capture of carbon dioxide or the trans22 port, permanent storage, or beneficial use of cap23 tured carbon dioxide; and 

24 (3) an assessment of the Department of Ener25 gy’s estimated time frame and costs necessary to 


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1 reasonably conclude that technology will be available 

2 to the commercial marketplace. 

3 (c) GOVERNMENT ACCOUNTABILITY OFFICE REVIEW

4 REQUIREMENTS.—The Government Accountability Office 

5 shall include in its review— 

6 (1) an analysis of the Department of Energy’s 

7 estimated time frames and costs as reported pursu8 ant to subsection (b)(3) of this section; 

9 (2) any recommendations that the Comptroller 

10 General deems appropriate and useful to improve 

11 the likelihood of achieving technological advance12 ments to mitigate carbon dioxide emissions or to ex13 pedite the availability of carbon capture and seques14 tration technology for the commercial marketplace; 

15 (3) an assessment of any legal or regulatory im16 pediment by any Federal agency or department that 

17 has arisen in relation to the deployment of carbon 

18 capture and storage technology, including any delays 

19 in the permitting of such technology or the construc20 tion or operation of any such facility; and 

21 (4) any other analyses the Government Ac22 countability Office deems necessary or appropriate. 

23 (d) BUDGET REQUEST REPORT.—Beginning with the 

24 budget request for fiscal year 2012 and for each suc25 ceeding fiscal year through 2026, the President shall inVerDate Mar 15 2010 04:16 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3591.IS S3591

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1 clude in his budget request for the Department of Ener2 gy’s Fossil Energy Program a report that— 

3 (1) assesses the Department’s progress in im4 plementing the recommendations of the Government 

5 Accountability Office and compares the estimated 

6 costs of completing implementation of these rec7 ommendations to the requested budget levels; and 

8 (2) an assessment of the progress made in the 

9 preceding fiscal year toward achieving the goals of 

10 the program for which funding is requested. 

11 TITLE II—CARBON CAPTURE 

12 AND SEQUESTRATION 

13 PROJECTS 

14 SUBTITLE A—CARBON CAPTURE 

15 AND SEQUESTRATION EARLY 

16 AND EFFECTIVE DEPLOY17 MENT FUNDING ACT OF 2010 

18 SECTION 201. SHORT TITLE. 

19 (a) SHORT TITLE.—This subtitle may be cited as the 

20 ‘‘Carbon Capture and Sequestration Early and Effective 

21 Deployment Fund Act of 2010’’ or the ‘‘CC SEED FUND 

22 ACT’’. 

23 SEC. 202. DEFINITIONS. 

24 (a) IN GENERAL.—In this subtitle: 


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1 (1) CARBON CAPTURE.—The term ‘‘carbon cap2 ture’’ has the meaning given the term in section 

3 963(a) of the Energy Policy Act of 2005 (42 U.S.C. 

4 16293(a)). 

5 (2) CARBON SEQUESTRATION.—The term ‘‘car6 bon sequestration’’ has the meaning given the term 

7 in section 963(a) of the Energy Policy Act of 2005 

8 (42 U.S.C. 16293(a)). 

9 (3) COUNCIL.—The term ‘‘Council’’ means the 

10 Carbon Capture and Sequestration Program Part11 nership Council established under section 204(a). 

12 (4) ELECTRIC CONSUMER.—The term ‘‘electric 

13 consumer’’ has the meaning given that term in sec14 tion 3 of the Public Utility Regulatory Policies Act 

15 of 1978 (16 U.S.C. 2602). 

16 (5) ELECTRIC UTILITY.—The term ‘‘electric 

17 utility’’ has the meaning given the term in section 

18 3 of the Federal Power Act (16 U.S.C. 796). 

19 (6) FOSSIL FUEL-BASED ELECTRICITY.—The 

20 term ‘‘fossil fuel-based electricity’’ means electricity 

21 that is produced, in whole or in part, from a fossil 

22 fuel. 

23 (7) FOSSIL FUEL.—The term ‘‘fossil fuel’’ 

24 means coal, petroleum, or natural gas, or any deriv25 ative of coal, petroleum, or natural gas. 


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1 (8) INSTITUTION OF HIGHER EDUCATION.—The 

2 term ‘‘institution of higher education’’ has the 

3 meaning given the term in section 101(a) of the 

4 Higher Education Act of 1965 (20 U.S.C. 1001(a)). 

5 (9) NATIONAL LABORATORY.—The term ‘‘Na6 tional Laboratory’’ has the meaning given the term 

7 in section 2 of the Energy Policy Act of 2005 (42 

8 U.S.C. 15801). 

9 (10) PROGRAM DIRECTOR.—The term ‘‘Pro10 gram Director’’ means the Program Director of the 

11 special funding program appointed under section 

12 204(g). 

13 (11) SECRETARY.—The term ‘‘Secretary’’ 

14 means the Secretary of Energy. 

15 (12) SPECIAL FUNDING PROGRAM.—The term 

16 ‘‘special funding program’’ means the special fund17 ing program for development and deployment of car18 bon capture, sequestration, and conversion tech19 nologies established in accordance with section 203. 

20 (13) STATE REGULATORY AUTHORITY.—The 

21 term ‘‘State regulatory authority’’ has the meaning 

22 given the term in section 3 of the Public Utility Reg23 ulatory Policies Act of 1978 (16 U.S.C. 2602). 

24 (14) UNITED STATES.—The term ‘‘United 

25 States’’ means the States of the United States, the 


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1 District of Columbia, and the territories and posses2 sions of the United States, including the territorial 

3 waters of the United States and the exclusive eco4 nomic zone. 

5 (b) MODIFICATION OF DEFINITIONS INCORPORATED

6 BY REFERENCE.—Section 963 of the Energy Policy Act 

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

8 (1) by redesignating subsections (a) through (d) 

9 as subsections (b) through (e), respectively; 

10 (2) by inserting before subsection (b) (as so re11 designated) the following: 

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

13 ‘‘(1) CARBON CAPTURE.—The term ‘carbon 

14 capture’ means the process of capturing anthropo15 genic carbon dioxide from a stationary source or car16 bon dioxide in the ambient air. 

17 ‘‘(2) CARBON SEQUESTRATION.—The term ‘car18 bon sequestration’ means the act of storing carbon 

19 dioxide through physical, chemical, or biological 

20 processes that can prevent the carbon dioxide from 

21 reaching the atmosphere.’’; 

22 (3) in subsection (b) (as so redesignated), by 

23 striking ‘‘In General’’ and inserting ‘‘Program’’; and 


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1 (4) in subsection (c) (as so redesignated), by 

2 striking ‘‘subsection (a)’’ and inserting ‘‘subsection 

3 (b)’’. 

4 SEC. 203. SPECIAL FUNDING PROGRAM FOR DEVELOPMENT 

5 AND DEPLOYMENT OF CARBON CAPTURE, SE6 QUESTRATION, AND CONVERSION TECH7 NOLOGIES. 

8 (a) VIEWS OF STATE REGULATORY AUTHORITIES.— 

9 (1) IN GENERAL.—Not later than 180 days 

10 after the date of enactment of this Act, a State reg11 ulatory authority shall notify the Secretary in writ12 ing of the views of the State regulatory authority on 

13 the creation of the special funding program. 

14 (2) NOTICE OF TIMELINE.—As soon as prac15 ticable, but no later than 30 days after the date of 

16 enactment of this Act, the Secretary shall notify 

17 each State regulatory authority of the need to sub18 mit its views to the Secretary under paragraph (1) 

19 within 180 days after the date of enactment of this 

20 Act. 

21 (b) ESTABLISHMENT.—The Secretary shall establish 

22 the special funding program within one year after the date 

23 of enactment of this Act unless the State regulatory au24 thorities of at least 22 States (treating the District of Co25 lumbia and Puerto Rico as States for such purpose) subVerDate Mar 15 2010 04:16 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S3591.IS S3591

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1 mit written notices of disapproval by the deadline estab2 lished under subsection (a). 

3 (c) TERMINATION.— 

4 (1) ASSESSMENTS.—The authority of the Sec5 retary to collect assessments shall expire on the date 

6 that is 10 years after the date of the establishment 

7 of the special funding program. 

8 (2) AWARDS.—The authority of the Secretary 

9 to make funding awards under this subtitle shall ex10 pire on the date that is 15 years after the date of 

11 the establishment of the special funding program. 

12 (d) ANNUAL REPORT.—Not later than February 1 of 

13 each year, the Secretary shall publish and submit to Con14 gress and each State regulatory authority a report that— 

15 (1) includes an identification and description of 

16 all programs and projects undertaken under the spe17 cial funding program during the previous fiscal year; 

18 and 

19 (2) describes the allocation or planned alloca20 tion of resources of the special funding program for 

21 each program and project in the current and subse22 quent fiscal year. 


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1 SEC. 204. CARBON CAPTURE AND SEQUESTRATION PRO2 GRAM PARTNERSHIP COUNCIL. 

3 (a) ESTABLISHMENT.—The Secretary shall establish, 

4 and appoint the members of, a Carbon Capture and Se5 questration Program Partnership Council to carry out du6 ties described in subsection (f). 

7 (b) VOTING MEMBERSHIP.— 

8 (1) TOTAL VOTING MEMBERSHIP; QUORUM.— 

9 The Council shall be composed of not more than 15 

10 voting members. A majority of the voting members 

11 shall constitute a quorum for official action of the 

12 Council. 

13 (2) MINIMUM REPRESENTATION.—The voting 

14 membership of the Council shall include at least 1 

15 representative of each of the following: 

16 (A) Investor-owned utilities. 

17 (B) Utilities owned by a State or unit of 

18 local government. 

19 (C) Rural electric cooperatives. 

20 (D) Fossil fuel producers. 

21 (E) Nonprofit organizations. 

22 (F) Independent generators or wholesale 

23 power providers. 

24 (G) Consumer groups. 

25 (H) Employee organizations (as defined in 

26 section 3(4) of the Employee Retirement InVerDate Mar 15 2010 04:16 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S3591.IS S3591

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1 come Security Act of 1974 (29 U.S.C. 

2 1002(4))). 

3 (3) REPRESENTATION OF ELECTRIC UTILI4 TIES.—A majority of the voting membership of the 

5 Council shall be representatives of electric utilities 

6 selling fossil fuel-based electricity to electric con7 sumers subject to assessment under section 206. 

8 (4) NOMINATIONS.—The Secretary shall ap9 point the Council members representing entities de10 scribed in subparagraphs (A), (B), (C), and (F) of 

11 paragraph (2) from slates of nominees, containing at 

12 least 2 candidates for each vacancy to be filled, sub13 mitted by— 

14 (A) the Edison Electric Institute, on behalf 

15 of investor-owned utilities; 

16 (B) the American Public Power Associa17 tion, on behalf of utilities owned by a State 

18 agency or unit of local government; 

19 (C) the National Rural Electric Coopera20 tive Association, on behalf of rural electric co21 operatives; and 

22 (D) the Electric Power Supply Association, 

23 on behalf of independent generators or whole24 sale power providers. 


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1 (5) RECUSAL.—A voting member of the Council 

2 may not participate in the review or approval of an 

3 application from an entity with which the voting 

4 member is affiliated. 

5 (c) NONVOTING MEMBERSHIP.—The Secretary shall 

6 appoint to the Council as nonvoting members— 

7 (1) the Under Secretary for Science; 

8 (2) the Assistant Secretary with responsibility 

9 for research and development of fossil fuels; 

10 (3) 3 representatives of State regulatory au11 thorities, chosen to represent each different trans12 mission interconnection, submitted by the National 

13 Association of Regulatory Utility Commissioners; 

14 and 

15 (4) such additional officers and employees of 

16 the Federal Government as the Secretary determines 

17 are necessary for the Council to carry out the func18 tions of the Council effectively. 

19 (d) TERMS.— 

20 (1) IN GENERAL.—Except as otherwise pro21 vided in this paragraph, a voting member of the 

22 Council— 

23 (A) shall serve a term of 4 years; and 

24 (B) may serve not more than 2 full con25 secutive terms. 


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1 (2) UNEXPIRED TERMS.—A member who fills 

2 the unexpired term of a voting member may serve 

3 not more than a total of 8 consecutive years. 

4 (3) REAPPOINTMENT OF FORMER VOTING MEM5 BERS.—A former voting member of the Council may 

6 be reappointed if the member has not been a mem7 ber of the Council for a period of at least 2 years. 

8 (4) INITIAL APPOINTMENT.—The Secretary 

9 shall make initial appointments of voting members 

10 of the Council for terms of 1, 2, 3, and 4 years, 

11 staggered to provide for the selection of 3 members 

12 each year, as determined by the Secretary. 

13 (5) VACANCIES.—A vacancy on the Council— 

14 (A) shall not affect the powers of the 

15 Council; and 

16 (B) shall be filled in the same manner as 

17 the original appointment was made. 

18 (e) PERSONNEL MATTERS.— 

19 (1) COMPENSATION.— 

20 (A) NON-FEDERAL EMPLOYEES.—A mem21 ber of the Council who is not an officer or em22 ployee of the Federal Government may be com23 pensated at a rate equal to the daily equivalent 

24 of the annual rate of basic pay prescribed for 

25 level IV of the Executive Schedule under section 


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1 5315 of title 5, United States Code, for each 

2 day (including travel time) during which the 

3 member is engaged in the performance of the 

4 duties of the Council. 

5 (B) FEDERAL EMPLOYEES.—A member of 

6 the Council who is an officer or employee of the 

7 Federal Government shall serve without com8 pensation in addition to the compensation re9 ceived for the services of the member as an offi10 cer or employee of the Federal Government. 

11 (2) TRAVEL EXPENSES.—A member of the 

12 Council shall be allowed travel expenses, including 

13 per diem in lieu of subsistence, at rates authorized 

14 for an employee of an agency under subchapter I of 

15 chapter 57 of title 5, United States Code, while 

16 away from the home or regular place of business of 

17 the member in the performance of the duties of the 

18 Council. 

19 (3) CHAIR.—The Secretary shall appoint a vot20 ing member of the Council to serve as the Chair of 

21 the Council. 

22 (4) EXECUTIVE SECRETARY.—The Secretary 

23 shall appoint an Executive Secretary in the Depart24 ment of Energy to assist the Council in the conduct 

25 of the duties of the Council. 


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1 (f) COUNCIL DUTIES.—The Council shall— 

2 (1) advise, assist, consult with, and make rec3 ommendations to the Secretary and the Program Di4 rector on matters related to the activities carried out 

5 by and through the special funding program; 

6 (2)(A) review applications for grants, contracts, 

7 cooperative agreements, and other transactions for 

8 which the approval of the Council is required under 

9 section 5(b); and 

10 (B) vote on whether to recommend for approval 

11 the applications; 

12 (3) review and make recommendations on any 

13 intellectual property policies required to advance the 

14 purposes of the special funding program and to en15 courage individual ingenuity and innovation, and en16 sure that inventors, whose contributions to the devel17 opment of clean coal technology are not subject to 

18 the protections afforded by section 14 of the Steven19 son-Wydler Technology Innovation Act of 1980 (15 

20 U.S.C. 3710c), are provided protection of their intel21 lectual property rights that is not less than that af22 forded to inventors provided protection under section 

23 14 of that Act; 

24 (4) collect information on projects being carried 

25 out by other programs to advance the development 


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1 and deployment of technologies for carbon capture, 

2 sequestration, and conversion; 

3 (5)(A) approve an annual overall plan for the 

4 special funding program and projects to be carried 

5 out under the special funding program; and 

6 (B) submit to Congress, the Secretary, and 

7 each State regulatory authority a copy of the plan; 

8 and 

9 (6) meet at least 3 times each year, at the call 

10 of the Chair or on the request of the Program Direc11 tor, at a location subject to the approval of the Pro12 gram Director. 

13 (g) PROGRAM DIRECTOR AND SENIOR PROGRAM

14 MANAGERS.— 

15 (1) APPOINTMENT.—The Secretary, in con16 sultation with the Council, shall appoint a Program 

17 Director for the special funding program, who 

18 shall— 

19 (A) have a background and qualifications 

20 especially appropriate to managing the special 

21 funding program; and 

22 (B) report directly to the Secretary. 

23 (2) COMPENSATION.—The rate of pay for the 

24 Program Director shall not exceed the rate payable 


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1 for level V of the Executive Schedule under section 

2 5316 of title 5, United States Code. 

3 (3) SENIOR PROGRAM MANAGERS.— 

4 (A) IN GENERAL.—Notwithstanding sec5 tions 3304 and 3309 through 3318 of title 5, 

6 United States Code, the Program Director may 

7 recruit and directly appoint up to 5 highly 

8 qualified scientists, engineers, or critical tech9 nical personnel into the competitive service, to 

10 help manage the special funding program. 

11 (B) EXCEPTION.—The authority granted 

12 by subparagraph (A) shall not apply to posi13 tions in the excepted service or the Senior Exec14 utive Service. 

15 (C) REQUIREMENTS.—In exercising the 

16 authority granted by subparagraph (A), the 

17 Secretary shall ensure that any action taken by 

18 the Secretary— 

19 (i) is consistent with the merit prin20 ciples of section 2301 of title 5, United 

21 States Code; and 

22 (ii) complies with the public notice re23 quirements of section 3327 of title 5, 

24 United States Code. 

25 (h) TECHNICAL ADVISORY COMMITTEE.— 


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1 (1) IN GENERAL.—The Secretary, acting 

2 through the Program Director, and in consultation 

3 with the Council, shall appoint a technical advisory 

4 committee to provide independent scientific review of 

5 applications for grants, contracts, cooperative agree6 ments, and other transactions to be funded under 

7 the special funding program. 

8 (2) MEMBERSHIP.—The technical advisory 

9 committee shall be composed of not less than 7 

10 members appointed from among— 

11 (A) institutions of higher education; 

12 (B) National Laboratories; 

13 (C) independent research institutions; 

14 (D) the National Energy Technology Lab15 oratory; and 

16 (E) other qualified institutions; 

17 (3) CONFLICTS OF INTEREST.—Members of the 

18 technical advisory committee may not be affiliated 

19 with, or employed by, any organization represented 

20 by voting members of the Council. 

21 (4) DUTIES.— 

22 (A) PEER REVIEW.—The technical advi23 sory committee shall provide independent as24 sessments and technical evaluations, and make 

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1 tions for funding under the special funding pro2 gram. 

3 (B) PROGRAMMATIC ASSESSMENTS.— 

4 (i) IN GENERAL.—The technical advi5 sory committee may provide an inde6 pendent review of other technical matters 

7 relating to the special funding program, in8 cluding— 

9 (I) approaches to prioritizing 

10 technologies; 

11 (II) appropriateness of engineer12 ing techniques; 

13 (III) monitoring and verification 

14 technologies for sequestration; 

15 (IV) geological site selection; and 

16 (V) cost control measures for 

17 projects. 

18 (ii) RECOMMENDATIONS.—The tech19 nical advisory committee may make rec20 ommendations to the Secretary concerning 

21 the types of investments, scientific re22 search, or engineering practices that would 

23 best further the purposes of this subtitle. 

24 (C) PUBLIC AVAILABILITY.—Except for in25 formation exempt from disclosure under paraVerDate Mar 15 2010 04:16 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S3591.IS S3591

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1 graphs (4) and (6) of section 552(b) of title 5, 

2 United States Code, all reports and evaluations 

3 made by the technical advisory committee shall 

4 be made available to the public when the re5 ports and evaluations are received by the Coun6 cil. 

7 (5) TRAVEL EXPENSES.—A member of the 

8 technical advisory committee shall be allowed travel 

9 expenses, including per diem in lieu of subsistence, 

10 at rates authorized for an employee of an agency 

11 under subchapter I of chapter 57 of title 5, United 

12 States Code, while away from the home or regular 

13 place of business of the member in the performance 

14 of the duties of the committee. 

15 SEC. 205. FUNCTIONS AND ADMINISTRATION OF THE SPE16 CIAL FUNDING PROGRAM. 

17 (a) IN GENERAL.—The special funding program shall 

18 support projects to accelerate the commercial availability 

19 of carbon capture and sequestration technologies and 

20 methods, including technologies that capture and seques21 ter, or capture and convert, carbon dioxide. In making 

22 awards under the program, the Program Director shall 

23 give priority to projects that include cost sharing, although 

24 cost sharing is not mandatory. 


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1 (b) PROJECT APPROVAL.—The Program Director 

2 shall make awards for grants, contracts, cooperative 

3 agreements, and other transactions under this subtitle 

4 only if the award is— 

5 (1) recommended to the Council by the tech6 nical advisory committee established under section 

7 204(h), after scientific and technical peer review; 

8 (2) approved by the voting members of the 

9 Council; 

10 (3) for a project to be carried out in the United 

11 States; and 

12 (4) prioritized in regions of the country with a 

13 high probability of carbon capture and sequestration 

14 development and deployment potential. 

15 (c) SPECIFIC PURPOSES.—In making awards, the 

16 Program Director shall ensure, to the maximum extent 

17 practicable, that grants, contracts, cooperative agree18 ments, and other transactions funded under the special 

19 funding program support demonstrations of carbon cap20 ture and sequestration technology projects that— 

21 (1) are capable of advancing the technologies to 

22 commercial readiness; 

23 (2) encompass each of the different coal types 

24 and other fossil fuel varieties; 

25 (3) are geographically diverse; 


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1 (4) involve diverse sequestration media; 

2 (5) employ capture and sequestration, or cap3 ture and conversion, technologies potentially suitable 

4 for new or retrofit applications; and 

5 (6) result in a capture of emissions from the 

6 generation of at least 10 gigawatts. 

7 (d) ELIGIBLE ENTITIES.—Entities eligible for fund8 ing under this subtitle include— 

9 (1) electric utilities selling fossil fuel-based elec10 tricity; 

11 (2) institutions of higher education; 

12 (3) National Laboratories; 

13 (4) Federal research agencies; 

14 (5) State research agencies; 

15 (6) nonprofit organizations; and 

16 (7) consortiums of 2 or more entities described 

17 in paragraphs (1) through (6). 

18 (e) PURCHASE OF CARBON DIOXIDE.—A grant, con19 tract, cooperative agreement, or other transaction under 

20 this subtitle may be used— 

21 (1) in the case of established projects that are 

22 sequestering carbon dioxide emissions, to purchase 

23 carbon dioxide if necessary to conduct tests of car24 bon sequestration sites; or 


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1 (2) for other purposes consistent with this sub2 title. 

3 (f) ORGANIZATION OF FUNDING INTO TRANCHES.— 

4 (1) IN GENERAL.—The Program Director, with 

5 the approval of the Council and the Secretary, may 

6 divide available funds into a series of tranches, each 

7 supporting the deployment of a specified quantity of 

8 electric generating capacity using carbon capture, se9 questration, or conversion technologies. 

10 (2) FORM OF FUNDING.—If the Program Direc11 tor, the Council, and the Secretary agree to dis12 tribute funds by tranche under this subsection, the 

13 Program Director shall distribute funds to eligible 

14 projects through grants, contracts, cooperative 

15 agreements, and other transactions under this sub16 title in a manner that— 

17 (A) provides higher funding for projects 

18 that are designed to achieve higher levels of 

19 capture and sequestration or capture and con20 version; 

21 (B) takes into account the projected cost 

22 of electricity to capture carbon dioxide emis23 sions from the project; 

24 (C) decreases the funding available for 

25 projects in successive tranches; and 


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1 (D) defrays the reasonable incremental 

2 capital and operating costs associated with im3 plementation of the carbon capture and seques4 tration or carbon capture and conversion tech5 nologies. 

6 (g) WAGE RATE ASSURANCES.— 

7 (1) IN GENERAL.—The Program Director shall 

8 require recipients of awards under this subtitle to 

9 provide assurances that all laborers and mechanics 

10 employed by contractors and subcontractors in the 

11 construction, repair, or alteration of new or existing 

12 facilities performed in order to carry out a develop13 ment or deployment activity authorized under this 

14 subtitle shall be paid wages at rates not less than 

15 those prevailing on similar construction in the local16 ity, as determined by the Secretary of Labor in ac17 cordance with subchapter IV of chapter 31 of title 

18 40, United States Code. 

19 (2) AUTHORITY AND FUNCTIONS.—With re20 spect to the labor standards in this subsection, the 

21 Secretary of Labor shall have the authority and 

22 functions set forth in Reorganization Plan Num23 bered 14 of 1950 (15 Fed. Reg. 3176; 5 U.S.C. Ap24 pendix) and section 3145 of title 40, United States 

25 Code. 


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1 (h) RELATION TO EXISTING AUTHORITIES.— 

2 Projects funded under this subtitle to inject carbon dioxide 

3 into geological formations shall be carried out in accord4 ance with this subtitle and section 963 of the Energy Pol5 icy Act of 2005 (42 U.S.C. 16293) and related provisions 

6 of that Act. 

7 (i) RESTRICTIONS ON FUNDING.— 

8 (1) NO SMALL-SCALE PROJECTS.—A pilot-scale 

9 project, or similar small-scale project, under 100 

10 megawatts, shall not be eligible for support under 

11 the special funding program. 

12 (2) DEDICATION OF FUNDS.—Except as pro13 vided in subsection (j), the special funding program 

14 shall use all funds derived from assessments under 

15 section 6 to fund grants, contracts, cooperative 

16 agreements, and other transactions under this sub17 title. 

18 (j) ADMINISTRATIVE EXPENSES.—Not more than 5 

19 percent of the funds collected for any fiscal year under 

20 section 6 may be used for the administrative expenses of 

21 carrying out the special funding program. 

22 SEC. 206. ASSESSMENTS AND FUNDING. 

23 (a) AMOUNT.— 

24 (1) IN GENERAL.—For each fiscal year fol25 lowing the establishment of the special funding proVerDate Mar 15 2010 04:16 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S3591.IS S3591

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1 gram, the Secretary shall collect an assessment on 

2 electric utilities for all fossil fuel-based electricity 

3 sold to electric consumers, as determined under sec4 tion 208. 

5 (2) FUEL TYPE RATE.—The assessments de6 scribed in paragraph (1) shall— 

7 (A) reflect the relative carbon dioxide emis8 sion rates of different fossil fuel-based elec9 tricity; and 

10 (B) initially shall be not less than the fol11 lowing amounts for coal, natural gas, and oil: 

Fuel type rate of assessment per kilowatt hour 

Coal ............................................................................................ $0.00091 

Natural Gas ............................................................................... $0.00046 

Oil .............................................................................................. $0.00068. 

12 (3) ADJUSTMENTS.—The Secretary may adjust 

13 the amount of assessments on fossil fuel-based elec14 tricity to reflect changes in the expected quantities 

15 of the electricity from different fuel types so that the 

16 assessments generate not less than $2,000,000,000 

17 and not more than $2,100,000,000 for each fiscal 

18 year. 

19 (b) TREATMENT OF ASSESSMENTS.— 

20 (1) GENERAL RULE.—Notwithstanding section 

21 3302 of title 31, United States Code, all amounts 

22 collected by the Secretary under this section shall— 


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1 (A) be credited as offsetting collections to 

2 carry out activities authorized under section 

3 205; 

4 (B) be available for expenditure only to 

5 pay the costs of carrying out the activities au6 thorized under section 205; 

7 (C) be available only to the extent provided 

8 for in advance in an appropriations Act; and 

9 (D) remain available until expended. 

10 (2) EXCEPTION.—Notwithstanding paragraph 

11 (1), the Secretary shall determine by April 1 of each 

12 fiscal year whether an appropriations Act has appro13 priated the total amount of actual fees collected in 

14 advance of that fiscal year by the Secretary under 

15 this section. If the amounts specified under this 

16 paragraph for that fiscal year have not been appro17 priated by such date for expenditure to carry out ac18 tivities under section 205, then such amounts shall 

19 be immediately available for such expenditure by the 

20 Board without fiscal year limitations and without 

21 further appropriations. 

22 (c) FEE TITLE.—The Secretary may vest fee title or 

23 other property interests acquired under projects conducted 

24 under this subtitle in any entity, including the United 

25 States. 


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1 (d) DATA PROTECTION.—For a period not exceeding 

2 5 years after completion of the operations phase of a 

3 grant, contract, cooperative agreement, or other trans4 action under this subtitle the Secretary may provide ap5 propriate protections (including exemptions from sub6 chapter II of chapter 5 of title 5, United States Code) 

7 against the dissemination of information that— 

8 (1) results from demonstration activities carried 

9 out under this subtitle; and 

10 (2) would be a trade secret or commercial or fi11 nancial information that is privileged or confidential 

12 if the information had been obtained from and first 

13 produced by a non-Federal party participating in the 

14 project. 

15 (e) REVERSION OF UNUSED FUNDS.—Effective be16 ginning on the date that is 7 years after the establishment 

17 of the special funding program, if the Secretary, acting 

18 through the Program Director, does not obligate at least 

19 75 percent of the available proceeds of the assessed fees 

20 for any fiscal year due to an absence of qualified projects 

21 or similar circumstances, the Secretary, without further 

22 appropriation, shall reimburse the remaining unobligated 

23 balance of the fees, less administrative and other expenses 

24 authorized by this subtitle, to the electric utilities on which 


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1 the fees were assessed, in proportion to the collected as2 sessments of the electric utilities. 

3 SEC. 207. ERCOT. 

4 (a) DEFINITIONS.—In this section: 

5 (1) ERCOT.—The term ‘‘ERCOT’’ means the 

6 Electric Reliability Council of Texas. 

7 (2) LOAD-SERVING ENTITY.—The term ‘‘load8 serving entity’’ has the meaning given the term in 

9 ERCOT Protocols in effect on the date of enactment 

10 of this Act. 

11 (3) QUALIFIED SCHEDULING ENTITY.—The 

12 term ‘‘qualified scheduling entity’’ has the meaning 

13 given the term in ERCOT Protocols in effect on the 

14 date of enactment of this Act. 

15 (4) RENEWABLE ENERGY CREDIT.—The term 

16 ‘‘renewable energy credit’’ has the meaning given the 

17 term by the Public Utility Commission of Texas pur18 suant to section 39.904(b) of the State of Texas’s 

19 Public Utility Regulatory Act of 1999 as in effect on 

20 the date of enactment of this Act. 

21 (b) ASSESSMENT, COLLECTION, AND REMIT22 TANCE.— 

23 (1) IN GENERAL.—Notwithstanding any other 

24 provision of this subtitle, within ERCOT, the assess25 ment required under section 206 shall be— 


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1 (A) levied directly on qualified scheduling 

2 entities, or successor entities of the qualified 

3 scheduling entities; 

4 (B) charged in an amount that is con5 sistent with other charges imposed on qualified 

6 scheduling entities as a fee on energy used by 

7 the load-serving entities; and 

8 (C) collected and remitted by ERCOT to 

9 the Secretary in the amounts and in the same 

10 manner as described in section 205. 

11 (2) REQUIREMENTS.—The assessment amounts 

12 referred to in paragraph (1) shall— 

13 (A) be determined by the quantity and 

14 types of fossil fuel-based electricity delivered di15 rectly to all electric consumers in the prior cal16 endar year beginning with the year ending im17 mediately prior to the beginning of the period 

18 described in section 203(c); and 

19 (B) take into account the number of re20 newable energy credits retired by the load-serv21 ing entities represented by a qualified sched22 uling entity within the prior calendar year. 

23 (c) ADMINISTRATION EXPENSES.—Not more than 1 

24 percent of the funds collected for any fiscal year by 

25 ERCOT under this section may be used for the adminisVerDate Mar 15 2010 04:16 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\S3591.IS S3591

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1 trative expenses incurred in the determination, collection, 

2 and remittance of the assessments to the Secretary. 

3 (d) AUDIT.—ERCOT shall submit to the Secretary 

4 a copy of the annual audit of ERCOT relating to the ad5 ministration of this section. 

6 SEC. 208. DETERMINATION OF FOSSIL FUEL-BASED ELEC7 TRICITY DELIVERIES. 

8 (a) FINDINGS.—Congress finds that— 

9 (1) the assessments under section 206 are to be 

10 collected based on the quantity of fossil fuel-based 

11 electricity sold by each electric utility to electric con12 sumers; 

13 (2) because many electric utilities purchase all 

14 or part of the electricity needed by the electric con15 sumers of the utilities from other entities, it may not 

16 be practicable to determine the precise fuel mix for 

17 the power sold by each individual electric utility; and 

18 (3) it may be necessary to use average data, 

19 often on a regional basis with reference to Regional 

20 Transmission Organization or North American Elec21 tric Reliability Corporation regions, to make the de22 terminations necessary for making the assessments. 

23 (b) PROPOSED REGULATION.— 

24 (1) IN GENERAL.—The Secretary, in consulta25 tion with the Energy Information Administration, 


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1 shall issue for notice and comment a proposed regu2 lation to determine the level and type of fossil fuel3 based electricity delivered to electric consumers by 

4 each electric utility in the United States during the 

5 most recent calendar year or other period deter6 mined by the Secretary to be most appropriate. 

7 (2) BALANCING.—The proposed regulation shall 

8 balance the need to be efficient, reasonably precise 

9 and timely, taking into account the nature and cost 

10 of data currently available and the nature of mar11 kets and regulations in effect in various regions of 

12 the United States. 

13 (3) VARYING METHODOLOGIES.—The Secretary 

14 may apply different methodologies in different re15 gions of the United States if appropriate to obtain 

16 the best balance of factors described in paragraph 

17 (2). 

18 (c) FINAL REGULATION.— 

19 (1) IN GENERAL.—Not later than 180 days 

20 after the date of enactment of this Act, and after 

21 opportunity for comment, the Secretary shall pro22 mulgate a final regulation under this section for de23 termining the level and type of fossil fuel-based elec24 tricity delivered to electric consumers by each elecVerDate Mar 15 2010 04:16 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S3591.IS S3591

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1 tric utility in the United States during the appro2 priate period, as determined by the Secretary. 

3 (2) NEW DATA SOURCES.—In promulgating the 

4 final regulation, the Secretary may— 

5 (A) consider opportunities and costs to de6 velop new data sources in the future; and 

7 (B) issue recommendations for the Energy 

8 Information Administration or other agencies to 

9 collect the data. 

10 (3) UPDATES.—After notice and opportunity 

11 for comment, the Secretary may, by regulation, up12 date and modify the methodology for making deter13 minations under this section. 

14 (d) ANNUAL DETERMINATIONS.— 

15 (1) IN GENERAL.—In accordance with the final 

16 regulation promulgated under subsection (c), the 

17 Secretary shall— 

18 (A) make annual determinations of the 

19 quantities and types for each electric utility; 

20 and 

21 (B) publish the determinations in the Fed22 eral Register. 

23 (2) USE.—Determinations described in para24 graph (1) shall be used— 


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1 (A) to conduct the referendum under sec2 tion 203(a); and 

3 (B) by the Secretary in applying any as4 sessment under this subtitle. 

5 (e) REHEARING AND JUDICIAL REVIEW.— 

6 (1) IN GENERAL.—The owner or operator of 

7 any electric utility that believes that the Secretary 

8 has misapplied the methodology in the final regula9 tion in determining the quantity and types of fossil 

10 fuel-based electricity delivered by the electric utility 

11 may seek a rehearing of the determination not later 

12 than 30 days after publication of the determination 

13 in the Federal Register. 

14 (2) DEADLINE.—Not later than 30 days after 

15 a rehearing petition is formally requested, the Sec16 retary shall rule on the rehearing petition. 

17 (3) JUDICIAL REVIEW.—A determination of the 

18 Secretary under paragraph (2) shall be final and 

19 subject to judicial review in the United States Court 

20 of Appeals for the District of Columbia Circuit. 

21 SEC. 209. COMPLIANCE WITH ASSESSMENTS. 

22 (a) IN GENERAL.—The Secretary may bring an ac23 tion in the appropriate court of the United States to com24 pel compliance with an assessment levied by the Secretary 

25 under this subtitle. 


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1 (b) PAYMENT.—A successful action for compliance 

2 under this section may require payment by the defendant 

3 of the costs incurred by the Secretary in bringing the ac4 tion. 

5 SEC. 210. MIDCOURSE REVIEW. 

6 Not later than 5 years after the establishment of the 

7 special funding program, the Comptroller General of the 

8 United States shall submit to Congress a report that— 

9 (1) evaluates the activities of the special fund10 ing program, including— 

11 (A) project selection and methods of dis12 bursement of assessed fees; 

13 (B) impacts on the prospects for commer14 cialization of carbon capture and sequestration 

15 technologies; and 

16 (C) the extent to which assessed fees sup17 port the qualified projects received by the Sec18 retary; and 

19 (2) makes such recommendations as the Comp20 troller General of the United States considers to be 

21 appropriate in each of those areas. 

22 SEC. 211. RECOVERY OF COSTS. 

23 (a) IN GENERAL.—An electric utility, the trans24 mission, delivery, or sales of electric energy of which are 

25 subject to any form of rate regulation, may not be denied 


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1 an opportunity to recover the full amount of the prudently 

2 incurred costs associated with complying with this subtitle, 

3 consistent with applicable State or Federal law. 

4 (b) RATEPAYER REBATES.—Regulatory authorities 

5 that approve cost recovery pursuant to subsection (a) may 

6 order rebates to ratepayers to the extent that electric utili7 ties selling fossil fuel-based electricity to electric con8 sumers are reimbursed undedicated or unassigned bal9 ances in accordance with section 206(c). 

10 SUBTITLE B—SEQUESTRATION 

11 TAX CREDIT; CAPACITY IN12 CENTIVES 

13 SEC. 251. CARBON SEQUESTRATION TAX CREDIT AMEND14 MENTS. 

15 (a) IN GENERAL.—Section 45Q of the Internal Rev16 enue Code of 1986 is amended— 

17 (1) by inserting ‘‘or converted to a stable form 

18 in which it is securely and permanently sequestered’’ 

19 after ‘‘secure geological storage’’ in subparagraph 

20 (B) of section 45Q(a)(1); 

21 (2) by striking subsection (a)(2) an inserting 

22 the following: 

23 ‘‘(2) $10 per metric ton of qualified carbon di24 oxide which is captured at a qualified facility and 


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1 used as a tertiary injectant in a qualified enhanced 

2 oil or natural gas recovery project, and 

3 ‘‘(A) disposed of in secure geologic storage, 

4 or 

5 ‘‘(B) converted to a stable form to enable 

6 permanent sequestration, including the bene7 ficial use of such converted carbon dioxide.’’; 

8 (3) by striking the words ‘‘by the taxpayer’’ 

9 each place they appear in subsection (a); 

10 (4) by striking ‘‘would otherwise’’ in subsection 

11 (b)(1)(A) and inserting ‘‘would, but for the capture 

12 and use or sequestration,’’; 

13 (5) by striking paragraph (1) of subsection (c) 

14 and redesignating paragraphs (2) and (3) as para15 graphs (1) and (2), respectively; 

16 (6) by striking paragraph (5) of subsection (d) 

17 and inserting the following: 

18 ‘‘(5) CREDIT ATTRIBUTABLE TO TAXPAYER.— 

19 Any credit under this section shall be attributable to 

20 the person that captures the qualified carbon diox21 ide, except to the extent provided in regulations pre22 scribed by the Secretary.’’; 

23 (7) by adding at the end of subsection (d) the 

24 following: 


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1 ‘‘(8) PLACED IN SERVICE.—Carbon capture 

2 equipment is placed in service on the date qualified 

3 carbon dioxide is first captured at a qualified facility 

4 and either— 

5 ‘‘(A) injected in secure geologic storage or 

6 converted to a stable form, or 

7 ‘‘(B) used as an injectant in a qualified en8 hanced hydrocarbon recovery project or con9 verted to a stable form. 

10 ‘‘(9) TRANSFERABILITY OF CREDIT.—The cred11 it under this section may be transferred to any other 

12 person by the person to which the credit is attrib13 utable.’’; 

14 (8) by striking subsection (e) and inserting the 

15 following: 

16 ‘‘(e) APPLICATION OF SECTION.—The credit under 

17 this section shall apply with respect to qualified carbon 

18 dioxide captured at a qualified facility at which carbon 

19 capture equipment is placed in service prior to January 

20 1, 2019. The taxpayer may claim the credit for a 10-year 

21 period commencing with the date the carbon capture 

22 equipment is placed in service.’’; and 

23 (9) by inserting ‘‘or conversion to a stable 

24 form’’ after ‘‘geological storage’’ in subsection 

25 (d)(2). 


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

2 subsection (a) shall apply to carbon dioxide captured after 

3 the date of enactment of this Act. 

4 SEC. 252. FEDERAL FINANCIAL INCENTIVES FOR ADDI5 TIONAL 10 GW OF CAPACITY. 

6 (a) ADDITIONAL AUTHORIZATION.—Section 1704 of 

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

8 amended— 

9 (1) by adding the following at the end of sub10 section (a): ‘‘In addition to other amounts made 

11 available under this section, there are authorized 

12 $20,000,000,000 to be used only for guarantees 

13 under this title for— 

14 ‘‘(1) the construction of new commercial scale 

15 electric generation units, or industrial facility units, 

16 that are eligible units utilizing carbon capture and 

17 sequestration technology; 

18 ‘‘(2) the retrofit of existing commercial scale 

19 electric generation units, or industrial facility units, 

20 that are eligible units providing for carbon capture 

21 and sequestration; and 

22 ‘‘(3) the construction of carbon dioxide trans23 mission pipelines to transport carbon dioxide to se24 questration sites or to sites where such carbon diox25 ide will be used for hydrocarbon recovery.’’; and 


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1 (2) by adding at the end thereof the following: 

2 ‘‘(c) DEFINITIONS.—In this section: 

3 ‘‘(1) COMMERCIAL SCALE.—The term ‘commer4 cial scale’ means, with respect to an electric genera5 tion unit, that the unit is designed to generate and 

6 sell electric power directly to consumers, or for re7 sale, with a carbon dioxide capture system having a 

8 useful life of at least 15 years. 

9 ‘‘(2) PERMANENT GEOLOGIC STORAGE SITE.— 

10 The term ‘permanent geologic storage site’ means a 

11 site that the Secretary determines is capable of stor12 ing carbon dioxide in saline or other deep geologic 

13 storage structures. 

14 ‘‘(3) ELIGIBLE UNIT.—The term ‘eligible unit’ 

15 means an electric generation unit or industrial facil16 ity unit located in the United States that— 

17 ‘‘(A) uses coal or petroleum coke for at 

18 least 75 percent of the fuel used by the unit; 

19 ‘‘(B) uses carbon capture technology to 

20 treat at least— 

21 ‘‘(i) 20 percent of the carbon dioxide 

22 emissions of the unit; or 

23 ‘‘(ii) an amount of carbon dioxide 

24 emissions that is attributable to 200 


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1 megawatts of the total nameplate gener2 ating capacity of the unit; 

3 ‘‘(C) captures at least 80 percent of the 

4 carbon dioxide emissions from the treated emis5 sions of the unit; 

6 ‘‘(D) transports such captured carbon di7 oxide to a permanent geologic storage site in 

8 the United States or to a site on the North 

9 American continent for use for hydrocarbon re10 covery; 

11 ‘‘(E) provides for the permanent storage of 

12 such carbon dioxide in such site; and 

13 ‘‘(F) has been approved by the Secretary 

14 as eligible under this subsection. 

15 ‘‘(d) ELIGIBLE UNITS.— 

16 ‘‘(1) CERTIFICATION.—No unit shall be an eli17 gible unit under subsection (c) unless the Secretary 

18 has certified such unit as meeting the requirements 

19 of such subsection (c) pursuant to a certification 

20 process established by the Secretary by rule. 

21 ‘‘(2) LIMITATION.—The Secretary may certify 

22 eligible units under this subsection which total in the 

23 aggregate no more than 10 gigawatts of treated gen24 erating capacity, of which not more than the equiva25 lent of 5 gigawatts of capacity may be for industrial 


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1 units. For purposes of determining equivalency 

2 under this subsection, an industrial unit with uncon3 trolled carbon dioxide emissions equal to the uncon4 trolled carbon dioxide emissions of a 500 megawatt 

5 electric generation unit shall be treated as having in6 stalled capacity equivalent to such 500 megawatt 

7 unit.’’. 

8 (b) TAX CREDITS.— 

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

10 subchapter A of chapter 1 of the Internal Revenue 

11 Code of 1986 is amended by adding at the end 

12 thereof the following: 

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

14 ‘‘(a) ADDITIONAL QUALIFYING ADVANCED COAL

15 PROJECT CREDIT.—For purposes of section 46, the quali16 fying advanced coal project credit for any taxable year 

17 shall also include an additional amount equal to 30 per18 cent of the incremental cost for carbon capture and se19 questration systems for eligible units, determined as fol20 lows: 

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

22 generation unit, the incremental costs shall be the 

23 amount by which the costs incurred by the taxpayer 

24 for the unit exceed the costs of construction of a 

25 comparable supercritical pulverized coal unit without 


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1 carbon capture and sequestration technology. To es2 tablish incremental costs, the taxpayer shall obtain 

3 a certified report of a qualified independent engineer 

4 estimating the differential construction cost between 

5 the eligible unit and a comparably-sized supercritical 

6 pulverized coal unit without carbon capture and se7 questration. The independent engineer shall utilize 

8 cost estimates for supercritical pulverized coal units 

9 available from Federal agencies, academia and/or the 

10 private sector, appropriately adjusted for size, fuel 

11 source and location. An engineering design of a hy12 pothetical supercritical pulverized coal unit shall not 

13 be required to establish the incremental costs. 

14 ‘‘(2) For an eligible unit that is a new indus15 trial unit, the incremental costs shall be the amount 

16 by which the costs incurred by the taxpayer for the 

17 unit exceed the costs of construction of a comparable 

18 industrial unit without carbon capture and seques19 tration. 

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

21 capture, transportation, and sequestration system on 

22 an existing generation or industrial unit, the incre23 mental cost shall be the construction costs incurred 

24 by the taxpayer for the carbon capture and seques25 tration system. 


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1 ‘‘(b) DEFINITIONS.—For purposes of this section, the 

2 term ‘eligible unit’ means an electric generation unit or 

3 industrial facility unit located in the United States that— 

4 ‘‘(A) uses coal or petroleum coke for at least 75 

5 percent of the fuel used by the unit; 

6 ‘‘(B) uses carbon capture technology to treat at 

7 least— 

8 ‘‘(i) 20 percent of the carbon dioxide emis9 sions of the unit; or 

10 ‘‘(ii) an amount of carbon dioxide emis11 sions that is attributable to 200 megawatts of 

12 the total nameplate generating capacity of the 

13 unit; 

14 ‘‘(C) captures at least 80 percent of the carbon 

15 dioxide emissions from the treated emissions of the 

16 unit; 

17 ‘‘(D) transports such captured carbon dioxide 

18 to a permanent geologic storage site in the United 

19 States or to a site on the North American continent 

20 for use for hydrocarbon recovery; and 

21 ‘‘(E) provides for the permanent storage of 

22 such carbon dioxide in such site. 

23 ‘‘(c) ELECTION.—No costs for which a credit has 

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

25 eligible for a credit under this section.’’. 


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1 (2) CLERICAL AMENDMENT.—The table of con2 tents for such subpart E is amended by adding at 

3 the end thereof the following: 

‘‘48E. Pioneer CCS facilities.’’. 

4 (3) EFFECTIVE DATE.—The amendments made 

5 by this subsection shall apply with respect to— 

6 (A) new facilities placed in service after 

7 December 31, 2010, and before January 1, 

8 2025; and 

9 (B) the retrofit of existing facilities that 

10 commence operation with such retrofit after De11 cember 31, 2010, and before January 1, 2025. 

12 TITLE III—62 GW EARLY ADOPT13 ER PROGRAM; SEQUESTRA14 TION BONDS 

15 SEC. 301. TAX CREDIT FOR EARLY ADOPTION OF CCS. 

16 (a) IN GENERAL.—Subpart D of part IV of sub17 chapter A of chapter 1 of the Internal Revenue Code of 

18 1986 is amended by adding at the end thereof the fol19 lowing: 

20 ‘‘SEC. 45S. CREDIT FOR EARLY ADOPTION OF CCS. 

21 ‘‘(a) EARLY ADOPTION CREDIT.—For purposes of 

22 section 38, the carbon dioxide sequestration credit for any 

23 taxable year shall be the amount set forth in subsection 

24 (b), in the case of certified new or retrofit electric utility 

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1 viding for carbon capture and sequestration in secure geo2 logic storage, adjusted as provided in subsection (c). 

3 ‘‘(b) DETERMINATION OF AMOUNT.— 

4 ‘‘(1) 65 PERCENT CAPTURE RATE.—Except as 

5 provided in paragraph (2) and adjusted in sub6 section (c), the amount of the credit under sub7 section (a) shall be $67 per ton of carbon dioxide 

8 captured and sequestered in the case of a certified 

9 new or retrofit electric utility unit or a certified new 

10 or retrofit industrial unit that— 

11 ‘‘(A) is placed in service before January 1, 

12 2025, and 

13 ‘‘(B) captures and sequesters at least 65 

14 percent of the carbon dioxide emissions in the 

15 treated portion of the flue gas or fuel gas 

16 stream. 

17 ‘‘(2) HIGHER CAPTURE RATE.—The amount of 

18 credit provided under paragraph (1) shall be in19 creased by $1.15 per ton for each percent of addi20 tional carbon dioxide emissions captured and seques21 tered above such 65 percent capture rate, up to a 

22 maximum credit of $96 per ton for a capture and 

23 sequestration rate of 90 percent or more. 

24 ‘‘(c) ADJUSTMENT FOR LATER COMMENCEMENT.— 

25 The amount of the credit determined under subsection (b) 


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1 shall be reduced by $1 per ton of carbon dioxide for each 

2 year after the calendar year 2024 in which the carbon cap3 ture and sequestration equipment is placed in service. 

4 ‘‘(d) PLACED IN SERVICE.—For purposes of this sec5 tion, the term ‘placed in service’ with respect to a certified 

6 new or retrofit electric utility unit or a certified new or 

7 retrofit industrial unit is the date on which such unit first 

8 captures and sequesters carbon dioxide in secure geologic 

9 storage. 

10 ‘‘(e) CERTIFICATION OF 62 GW.—No credit shall be 

11 allowed under this section unless the electric utility unit 

12 or industrial unit with respect to which a credit is applied 

13 has been certified by the Secretary. Upon application of 

14 any taxpayer for certification under this section, the Sec15 retary shall certify the unit in accordance with the certifi16 cation program under subsection (g). 

17 ‘‘(f) LIMITATION.—The Secretary shall certify eligi18 ble new or retrofit units under this subsection which total 

19 in the aggregate no more than 62 gigawatts of treated 

20 generating capacity, of which not more than 10 percent 

21 of this capacity may be for industrial units. For purposes 

22 of determining gigawatt equivalency under this subsection, 

23 6 million metric tonnes per year of captured and seques24 tered carbon dioxide emissions from industrial units shall 


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1 be treated as having the capacity equivalent of 1 gigawatt 

2 of treated generating capacity. 

3 ‘‘(g) CERTIFICATION PROGRAM.— 

4 ‘‘(1) The Secretary shall establish a program 

5 for the certification of new or retrofit electric units 

6 and new or retrofit industrial units utilizing carbon 

7 capture and sequestration technology eligible to 

8 apply for a credit under this section. A facility shall 

9 be certified only if the owner or operator of the 

10 unit— 

11 ‘‘(A) specifies the capacity of the unit sub12 ject to carbon capture and sequestration, and 

13 ‘‘(B) commits to place the unit, or equip14 ment in the case of a retrofit, in service within 

15 7 years after the date of the certification and 

16 to comply with such interim development mile17 stones (including the issuance of all necessary 

18 Federal, State, and local permits) as the Sec19 retary shall, by rule, prescribe. 

20 ‘‘(2) Failure to comply with the 7-year date set 

21 forth in this subsection or with any significant mile22 stone or other requirement established by the Sec23 retary under paragraph (1) shall result in the termi24 nation of the certification. The 7-year date shall be 

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1 lenges or litigation related to permits required for 

2 the facility. No unit for which a certification has 

3 been terminated shall be eligible for a new certifi4 cation under this section. 

5 ‘‘(h) APPLICATION OF SECTION.—The credit under 

6 this section shall apply to carbon dioxide captured and se7 questered in secure geologic storage from a certified new 

8 or retrofit electric utility unit or from a certified new or 

9 retrofit industrial unit. The taxpayer may claim the credit 

10 for a 10-year period commencing on the date the unit is 

11 placed in service. 

12 ‘‘(i) OTHER CREDITS.—Carbon dioxide from equip13 ment for which carbon dioxide storage credit has been al14 lowed under section 45Q or an investment credit has been 

15 allowed under section 48E shall not be eligible for a credit 

16 under this section. 

17 ‘‘(j) DEFINITIONS.—In this section: 

18 ‘‘(1) RETROFIT.—The term ‘retrofit’ means the 

19 application of carbon capture and sequestration 

20 technology to an existing unit, provided that such 

21 technology treats at least— 

22 ‘‘(A) 20 percent of the carbon dioxide 

23 emissions of the unit; or 

24 ‘‘(B) an amount of carbon dioxide emis25 sions that is attributable to 200 megawatts of 


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1 the total nameplate generating capacity (or, in 

2 the case of an industrial unit, an equivalent ca3 pacity). 

4 (2) INDUSTRIAL UNIT.—The term ‘industrial 

5 unit’ means a unit that— 

6 ‘‘(A) is not a qualifying electric generating 

7 unit; 

8 ‘‘(B) uses coal or petroleum coke for at 

9 least 75 percent of the fuel used by the unit; 

10 and 

11 ‘‘(C) absent carbon capture and sequestra12 tion, would emit greater than 500,000 tons per 

13 year of carbon dioxide. 

14 ‘‘(3) TREATED GENERATING CAPACITY.—The 

15 term ‘treated generating capacity’ means the portion 

16 of the total generating capacity of an electric gener17 ating unit (or, in the case of an industrial unit, an 

18 equivalent capacity) for which the flue gas or fuel 

19 gas is treated by carbon capture and sequestration 

20 technology.’’. 

21 (b) CLERICAL AMENDMENT.—The table of sections 

22 for subpart D of part IV of subchapter A of chapter 1 

23 of the Internal Revenue Code of 1986 is amended by add24 ing at the end thereof the following: 

‘‘45S. Credit for early adoption of CCS.’’. 


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1 SEC. 302. CARBON SEQUESTRATION BONDS. 

2 (a) IN GENERAL.—Part IV of subchapter A of chap3 ter 1 of the Internal Revenue Code of 1986 is amended 

4 by adding at the end the following new subpart: 

5 ‘‘Subpart K—Carbon Sequestration Bonds 

‘‘Sec. 54BB. Carbon Sequestration bonds. 

6 ‘‘SEC. 54BB. CARBON SEQUESTRATION BONDS. 

7 ‘‘(a) IN GENERAL.—If a taxpayer holds a carbon se8 questration bond on one or more interest payment dates 

9 of the bond during any taxable year, there shall be allowed 

10 as a credit against the tax imposed by this chapter for 

11 the taxable year an amount equal to the sum of the credits 

12 determined under subsection (b) with respect to such 

13 dates. 

14 ‘‘(b) AMOUNT OF CREDIT.—The amount of the credit 

15 determined under this subsection with respect to any in16 terest payment date for a carbon sequestration bond is 

17 70 percent of the amount of interest payable by the issuer 

18 with respect to such date. 

19 ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— 

20 ‘‘(1) IN GENERAL.—The credit allowed under 

21 subsection (a) for any taxable year shall not exceed 

22 the excess of— 

23 ‘‘(A) the sum of the regular tax liability 

24 (as defined in section 26(b)) plus the tax im25 posed by section 55, over 


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1 ‘‘(B) the sum of the credits allowable 

2 under this part (other than subpart C and this 

3 subpart). 

4 ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 

5 credit allowable under subsection (a) exceeds the 

6 limitation imposed by paragraph (1) for such taxable 

7 year, such excess shall be carried to the succeeding 

8 taxable year and added to the credit allowable under 

9 subsection (a) for such taxable year (determined be10 fore the application of paragraph (1) for such suc11 ceeding taxable year). 

12 ‘‘(d) CARBON SEQUESTRATION BOND.— 

13 ‘‘(1) IN GENERAL.—For purposes of this sec14 tion, the term ‘carbon sequestration bond’ means 

15 any obligation issued as part of an issue if— 

16 ‘‘(A) 95 percent of the available project 

17 proceeds (as defined in section 54A) of such 

18 issue, in excess of the amounts in a reasonably 

19 required reserve (within the meaning of section 

20 150(a)(3)) for such issue, are to be used for 

21 qualified carbon sequestration costs incurred by 

22 public power providers or cooperative electric 

23 companies, 

24 ‘‘(B) the obligation is issued by a qualified 

25 issuer, and 


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1 ‘‘(C) the issuer makes an irrevocable elec2 tion to have this section apply. 

3 ‘‘(2) APPLICABLE RULES.—For purposes of ap4 plying paragraph (1)— 

5 ‘‘(A) an issue shall not be treated as meet6 ing the requirements of paragraph (1) unless 

7 the issue satisfies the requirements of section 

8 148 with respect to the proceeds of the issue, 

9 ‘‘(B) for purposes of applying section 148 

10 to such an issue, the yield on a carbon seques11 tration bond shall be determined without regard 

12 to the credit allowed under subsection (a), 

13 ‘‘(C) an issue shall not be treated as meet14 ing the requirements of this paragraph unless 

15 the issuer of the carbon sequestration bonds 

16 submits reports similar to the reports required 

17 under section 149(e), and 

18 ‘‘(D) a bond shall not be treated as a car19 bon sequestration bond if the issue price has 

20 more than a de minimis amount (determined 

21 under rules similar to the rules of section 

22 1273(a)(3)) of premium over the stated prin23 cipal amount of the bond. 

24 ‘‘(e) LIMITATION ON AMOUNT OF BONDS DES25 IGNATED.— 


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1 ‘‘(1) IN GENERAL.—There is a national carbon 

2 sequestration bond limitation of $5,000,000,000. 

3 ‘‘(2) ALLOCATION BY SECRETARY.—The Sec4 retary shall make allocations of the amount of the 

5 national carbon sequestration bond limitation in 

6 such manner as the Secretary determines appro7 priate. 

8 ‘‘(f) INTEREST PAYMENT DATE.—For purposes of 

9 this section, the term ‘interest payment date’ means any 

10 date on which the holder of record of the carbon sequestra11 tion bond is entitled to a payment of interest under such 

12 bond. 

13 ‘‘(g) SPECIAL RULES.— 

14 ‘‘(1) INTEREST ON CARBON SEQUESTRATION

15 BONDS INCLUDIBLE IN GROSS INCOME FOR FED16 ERAL INCOME TAX PURPOSES.—For purposes of this 

17 title, interest on any carbon sequestration bond shall 

18 be includible in gross income. 

19 ‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 

20 similar to the rules of subsections (f), (g), (h), and 

21 (i) of section 54A shall apply for purposes of the 

22 credit allowed under subsection (a). 

23 ‘‘(h) SPECIAL RULE FOR QUALIFIED CARBON SE24 QUESTRATION BONDS.—In the case of a qualified carbon 

25 sequestration bond— 


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1 ‘‘(1) ISSUER ALLOWED REFUNDABLE CRED2 IT.—In lieu of any credit allowed under this section 

3 with respect to such bond, the issuer of such bond 

4 shall be allowed a credit as provided in section 6432. 

5 ‘‘(2) QUALIFIED CARBON SEQUESTRATION

6 BOND.—In this subsection, the term ‘qualified car7 bon sequestration bond’ means any carbon seques8 tration bond issued as part of an issue if the issuer 

9 makes an irrevocable election to have this subsection 

10 apply. 

11 ‘‘(i) DEFINITIONS.—In this section: 

12 ‘‘(1) QUALIFIED CARBON SEQUESTRATION

13 COSTS.—The term ‘qualified carbon sequestration 

14 costs’ means the incremental costs for carbon cap15 ture and sequestration systems as described in sec16 tion 48E (without regard to any placed in service 

17 date), which systems are owned by a public power 

18 provider or a cooperative electric company. 

19 ‘‘(2) PUBLIC POWER PROVIDER.—The term 

20 ‘public power provider’ means a State utility with a 

21 service obligation, as such terms are defined in sec22 tion 217 of the Federal Power Act (as in effect on 

23 the date of the enactment of the Carbon Capture 

24 and Sequestration Deployment Act of 2010). 


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1 ‘‘(3) COOPERATIVE ELECTRIC COMPANY.—The 

2 term ‘cooperative electric company’ means a mutual 

3 or cooperative electric company described in section 

4 501(c)(12) or section 1381 (a)(2)(C). 

5 ‘‘(4) QUALIFIED ISSUER.—The term ‘qualified 

6 issuer’ means a public power provider, a cooperative 

7 electric company, a clean renewable energy bond 

8 lender, or a not-for-profit electric utility which has 

9 received a loan or loan guarantee under the Rural 

10 Electrification Act. 

11 ‘‘(j) REGULATIONS.—The Secretary may prescribe 

12 such regulations and other guidance as may be necessary 

13 or appropriate to carry out this section and section 

14 6431.’’. 

15 (b) CREDIT FOR QUALIFIED CARBON SEQUESTRA16 TION BONDS.—Subchapter B of chapter 65 of such Code 

17 is amended by adding at the end the following new section: 

18 ‘‘SEC. 6432. CREDIT FOR QUALIFIED CARBON SEQUESTRA19 TION BONDS ALLOWED TO ISSUER. 

20 ‘‘(a) IN GENERAL.—In the case of a qualified carbon 

21 sequestration bond, the issuer of such bond shall be al22 lowed a credit with respect to each interest payment under 

23 such bond which shall be payable by the Secretary as pro24 vided in subsection (b). 


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1 ‘‘(b) PAYMENT OF CREDIT.—The Secretary shall pay 

2 (contemporaneously with each interest payment date 

3 under such bond) to the issuer of such bond (or to any 

4 person who makes such interest payments on behalf of the 

5 issuer) 65 percent of the interest payable under such bond 

6 on such date. 

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

8 ‘‘(1) INTEREST PAYMENT DATE.—The term ‘in9 terest payment date’ means each date on which in10 terest is payable by the issuer under the terms of 

11 the bond. 

12 ‘‘(2) QUALIFIED CARBON SEQUESTRATION

13 BOND.—The term ‘qualified carbon sequestration 

14 bond’ has the meaning given such term in section 

15 54BB(h)(2). 

16 ‘‘(d) APPLICATION OF ARBITRAGE RULES.—For pur17 poses of section 148, the yield on a qualified bond shall 

18 be reduced by the credit allowed under this section.’’. 

19 (c) CONFORMING AMENDMENTS.— 

20 (1) Section 1324(b)(2) of title 31, United 

21 States Code, is amended by striking ‘‘or 6431’’ and 

22 inserting ‘‘6431, or 6432,’’. 

23 (2) Section 54A(c)(1)(B) of the Internal Rev24 enue Code of 1986 is amended by striking ‘‘subparts 

25 C and J’’ and inserting ‘‘subparts C, J, and K’’. 


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1 (3) Sections 54(c)(2), 1397E(c)(2), and 

2 1400N(l)(3)(B) of such Code are each amended by 

3 striking ‘‘and J’’ and inserting ‘‘J, and K’’. 

4 (4) Section 6211(b)(4)(A) of such Code is 

5 amended by striking ‘‘and 6431’’ and inserting 

6 ‘‘6431, and 6432’’. 

7 (5) Section 6401(b)(1) of such Code is amend8 ed by striking ‘‘and J’’ and inserting ‘‘J, and K’’. 

9 (6) The table of subparts for part IV of sub10 chapter A of chapter 1 of such Code is amended by 

11 adding at the end the following new item: 

‘‘SUBPART K. CARBON SEQUESTRATION BONDS.’’. 

12 (7) The table of sections for subchapter B of 

13 chapter 65 of such Code is amended by adding at 

14 the end the following new item: 

‘‘Sec. 6432. Credit for qualified carbon sequestration bonds allowed to issuer.’’. 

15 (d) TRANSITIONAL COORDINATION WITH STATE

16 LAW.—Except as otherwise provided by a State after the 

17 date of the enactment of this Act, the interest on any car18 bon sequestration bond (as defined in section 54BB of the 

19 Internal Revenue Code of 1986, as added by this section) 

20 and the amount of any credit determined under such sec21 tion with respect to such bond shall be treated for pur22 poses of the income tax laws of such State as being exempt 

23 from Federal income tax. 


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

2 this section shall apply to obligations issued after the date 

3 of the enactment of this Act. 

4 TITLE IV—CCS TECHNOLOGY 

5 STANDARD FOR POWERPLANTS 

6 SEC. 401. CCS STANDARDS FOR COAL-FUELED POWER 

7 PLANTS. 

8 (a) IN GENERAL.—Title I of the Clean Air Act (42 

9 U.S.C. 7401 et seq.) is amended by inserting after section 

10 111 the following: 

11 ‘‘SEC. 111A. CCS STANDARDS FOR NEW COAL-FIRED POWER 

12 PLANTS. 

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

14 ‘‘(1) COVERED UNITS.—The term ‘covered unit’ 

15 means an electric utility generating unit that derives 

16 50 percent of its annual heat input from coal, petro17 leum coke, or any combination of these fuels. 

18 ‘‘(2) INITIALLY PERMITTED.—The term ‘ini19 tially permitted’ means, with respect to an electric 

20 utility generating unit, that the owner or operator of 

21 a unit has received a preconstruction approval or 

22 permit under this Act, for the covered unit as a new 

23 (not a modified) source, but administrative review or 

24 appeal of such approval or permit has not been ex25 hausted. A subsequent modification of any such apVerDate Mar 15 2010 04:16 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\S3591.IS S3591

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1 proval or permit, ongoing administrative or court re2 view, appeals, or challenges, or the existence or toll3 ing of any time to pursue further review, appeals, or 

4 challenges shall not affect the date on which a unit 

5 is considered to be initially permitted. 

6 ‘‘(3) TREATED GENERATING CAPACITY.—The 

7 term ‘treated generating capacity’ means the portion 

8 of the total generating capacity of an electric gener9 ating unit (or, in the case of an industrial unit, an 

10 equivalent capacity) for which the flue gas or fuel 

11 gas is treated by carbon capture and sequestration 

12 technology.’’. 

13 ‘‘(b) STANDARDS.— 

14 ‘‘(1) EMISSION LIMIT.—A covered unit that is 

15 initially permitted on or after the date of the enact16 ment of the Carbon Capture and Sequestration De17 ployment Act of 2010 and before January 1, 2020, 

18 shall achieve, by the compliance date set forth in 

19 paragraph (2), an emission limit for carbon dioxide 

20 that reflects 50 percent reduction from the carbon 

21 content of the fuel used by the unit, as measured on 

22 an annual basis. 

23 ‘‘(2) COMPLIANCE.—Compliance with the re24 quirement set forth in paragraph (1) shall be re25 quired by the earlier of the following: 


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1 ‘‘(A) Four years after the date the Admin2 istrator has published a report that there are in 

3 commercial operation in the United States elec4 tric generating units or other stationary sources 

5 equipped with carbon capture and sequestration 

6 technology that, in the aggregate— 

7 ‘‘(i) have a total of at least 10 

8 gigawatts of treated generating capacity; 

9 and 

10 ‘‘(ii) include electric generating units 

11 with at least 4 gigawatts of treated gener12 ating capacity which units are capturing 

13 and sequestering in deep geologic saline 

14 formations the aggregate at least 24 mil15 lion tons of carbon dioxide per year, cal16 culated on an aggregate annualized basis; 

17 or 

18 ‘‘(B) the later of— 

19 ‘‘(i) January 1, 2030; or 

20 ‘‘(ii) the date by which the assessment 

21 under section 102(b) determines that it is 

22 reasonable to conclude that technology is 

23 available to the commercial marketplace. 

24 ‘‘(c) REGULATIONS.—Not later than 2 years after the 

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1 tion Deployment Act of 2010, the Administrator shall pro2 mulgate regulations to carry out the requirements of this 

3 section. 

4 ‘‘(d) COMPLIANCE WITH STANDARDS.—Not with5 standing other provisions of law, no unit subject to stand6 ards under subsection (b) shall be deemed subject to sec7 tion 111 of this Act for emissions of carbon dioxide. Any 

8 unit subject to standards under subsection (b) shall be 

9 deemed to have met the requirements of section 169(3) 

10 for carbon dioxide.’’. 

11 (b) COMPLIANCE AND JUDICIAL REVIEW.—Sections 

12 114 and 307 of such Act are each amended by striking 

13 ‘‘section 111’’ in each place it appears and inserting ‘‘sec14 tion 111 or section 111A’’. 

15 SEC. 402. CONSOLIDATED REVIEW OF FEDERAL AUTHOR16 IZATIONS. 

17 (a) DESIGNATION OF LEAD AGENCY.— 

18 (1) IN GENERAL.—The Department of Energy 

19 shall act as the lead agency for the purposes of co20 ordinating all applicable Federal authorizations and 

21 related environmental reviews with respect to an eli22 gible project, including any requirements of— 

23 (A) the Clean Air Act (42 U.S.C. 7401 et 

24 seq.); 


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1 (B) the Endangered Species Act of 1973 

2 (16 U.S.C. 1531 et seq.); 

3 (C) the Federal Water Pollution Control 

4 Act (33 U.S.C. 1251 et seq.); 

5 (D) the National Environmental Policy Act 

6 of 1969 (42 U.S.C. 4321 et seq.); or 

7 (E) the Safe Drinking Water Act (42 

8 U.S.C. 300f et seq.). 

9 (2) OTHER AGENCIES.—Each Federal and 

10 State agency required to provide a Federal author11 ization for an eligible project shall cooperate with 

12 the Secretary and comply with the deadlines estab13 lished by the Secretary under subsection (b). 

14 (b) COORDINATION AND CONSOLIDATED REVIEW.— 

15 (1) SCHEDULE.—As the head of the lead agen16 cy, and in consultation with other agencies, the Sec17 retary shall establish a schedule for all Federal au18 thorizations with respect to each eligible project. In 

19 establishing the schedule, the Secretary shall— 

20 (A) set binding intermediate milestones 

21 and deadlines to ensure expeditious completion 

22 of all proceedings and final action on all Fed23 eral authorizations relating to the eligible 

24 project; 


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1 (B) require that all permit decisions and 

2 related environmental reviews under applicable 

3 Federal laws shall be completed— 

4 (i) within 1 year after the submission 

5 of a complete application for each permit 

6 decision or environmental review; or 

7 (ii) if an express requirement of an8 other provision of Federal law does not 

9 permit compliance with the 1-year deadline 

10 in clause (i), as soon thereafter as is prac11 ticable; and 

12 (C) coordinate, to the maximum extent 

13 practicable, any permitting and environmental 

14 reviews that apply to the eligible project only 

15 under State law. 

16 (2) MEMORANDUM OF UNDERSTANDING.—Not 

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

18 Act, the Secretary and the heads of all Federal 

19 agencies with authority to issue Federal authoriza20 tions shall execute a memorandum of understanding 

21 to ensure the coordinated and streamlined review 

22 and prompt issuance of Federal authorizations for 

23 eligible projects. 

24 (3) PRE-APPLICATION REVIEW.—The Secretary 

25 shall establish and facilitate a pre-application review 


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1 process to expedite the review of all Federal author2 izations, including permit decisions and related envi3 ronmental reviews, for any eligible project under ap4 plicable Federal laws. The pre-application review 

5 process shall require each agency involved in the re6 view process to confer with prospective applicants 

7 and identify those issues of major concern to the 

8 agency and the general public regarding the eligible 

9 project. The pre-application review process shall re10 quire such agencies to provide a written response to 

11 an inquiry from a prospective applicant not later 

12 than 60 days after the completion of the pre-applica13 tion review process. 

14 (4) CONSOLIDATION OF ENVIRONMENTAL RE15 VIEWS.—The Secretary, in consultation with affected 

16 agencies, shall prepare a single environmental review 

17 document for assessing all major Federal actions re18 lated to any eligible project under section 102 of the 

19 National Environmental Policy Act of 1969 (42 

20 U.S.C. 4332). Agencies subject to such environ21 mental review requirements shall use the document 

22 as the basis for all decisions related to the eligible 

23 project. 

24 (5) FAILURE TO MEET SCHEDULE.—If a Fed25 eral or State agency does not complete a proceeding 


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1 for an approval that is required for a Federal au2 thorization in accordance with the schedule estab3 lished by the Secretary under this subsection, the 

4 applicant may pursue remedies under subsection (d). 

5 (c) CONSOLIDATED RECORD.—The Secretary shall, 

6 with the cooperation of Federal and State agencies, main7 tain a complete consolidated record of all decisions made 

8 or actions taken by the Secretary or by a Federal agency 

9 (or State agency acting under delegated Federal author10 ity) with respect to any Federal authorization. Such record 

11 shall be the record for judicial review under subsection (d) 

12 of decisions made or actions taken of Federal and State 

13 agencies, except that, if the Court determines that the 

14 record does not contain sufficient information, the Court 

15 may remand the proceeding to the Secretary for further 

16 development of the consolidated record. 

17 (d) JUDICIAL REVIEW.— 

18 (1) IN GENERAL.—The United States Court of 

19 Appeals for the circuit in which the eligible project 

20 is proposed to be constructed shall have original and 

21 exclusive jurisdiction over any civil action for the re22 view of— 

23 (A) an order or action related to a Federal 

24 authorization, by a Federal agency (other than 

25 the Secretary) or State agency acting pursuant 


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1 to Federal law to issue, including any order or 

2 action to condition or deny any Federal author3 ization; and 

4 (B) an alleged failure to act by a Federal 

5 or State agency with respect to a Federal au6 thorization. 

7 The failure of an agency to take action on a Federal 

8 authorization in accordance with the schedule estab9 lished by the Secretary under subsection (b)(1) shall 

10 be considered to be inconsistent with Federal law for 

11 the purposes of paragraph (2) of this subsection. 

12 (2) COURT ACTION.— 

13 (A) IN GENERAL.—The Court shall re14 mand the proceeding for a particular eligible 

15 project to the appropriate agency if the Court 

16 finds that— 

17 (i) there has occurred either— 

18 (I) an order or action described 

19 in paragraph (1)(A) that is incon20 sistent with the Federal law governing 

21 the Federal authorization for the eligi22 ble project; or 

23 (II) a failure to act as described 

24 in paragraph 1(B) with respect to the 

25 eligible project; and 


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1 (ii) the order, action, or failure to act 

2 would prevent the siting, construction, or 

3 operation of the eligible project. 

4 (B) REMAND.—If the Court remands the 

5 order or action to the appropriate Federal or 

6 State agency under subparagraph (A), the 

7 Court shall provide specific direction to remedy 

8 any inconsistency with Federal law and set a 

9 reasonable schedule and appropriate deadlines 

10 for the agency to act on remand. 

11 (4) FILING CONSOLIDATED RECORD.—For any 

12 civil action described in this subsection, the Sec13 retary shall promptly file with the Court the consoli14 dated record of the order or action to which the ap15 peal hereunder relates, as compiled by the Secretary 

16 pursuant to subsection (c). 

17 (5) EXPEDITED REVIEW.—The Court shall set 

18 any action brought under this subsection for expe19 dited consideration. 

20 (e) DEFINITIONS.—In this section: 

21 (1) ADMINISTRATOR.—The term ‘‘Adminis22 trator’’ means the Administrator of the Environ23 mental Protection Agency. 

24 (2) ELIGIBLE PROJECT.—The term ‘‘eligible 

25 project’’ means any project that is eligible to receive 


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1 a financial incentive under title II or III this Act or 

2 the amendments made by this Act. 

3 (3) FEDERAL AUTHORIZATION.—The term 

4 ‘‘Federal authorization’’— 

5 (A) means any authorization required 

6 under Federal law, whether administered by a 

7 Federal or State agency, with respect to the 

8 siting, construction, or operation of an eligible 

9 project; and 

10 (B) includes any permit, license, special 

11 use authorizations, certifications, opinions, con12 currence, or other approvals that may be re13 quired under Federal law with respect to the 

14 siting, construction, or operation of an eligible 

15 project. 

16 (4) SECRETARY.—The term ‘‘Secretary’’ means 

17 the Secretary of Energy. 

18 (f) REGULATIONS.—Not later than 18 months after 

19 the date of enactment of this Act, the Secretary shall es20 tablish by rule, after notice and public opportunity to com21 ment, regulations that are necessary to implement this 

22 section. 

23 (g) RELATIONSHIP TO OTHER LAWS.—Except as spe24 cifically provided, nothing in this section affects any reVerDate Mar 15 2010 04:16 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00073 Fmt 6652 Sfmt 6201 E:\BILLS\S3591.IS S3591

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1 quirement of any Federal or State law, including the Fed2 eral laws described in subsection (a)(1). 

3 TITLE V—CARBON STORAGE 

4 STEWARDSHIP 

5 SEC. 501. SHORT TITLE. 

6 This title may be cited as the ‘‘Carbon Storage Stew7 ardship Act’’. 

8 SEC. 502. PURPOSE. 

9 The purpose of this title is to facilitate carbon cap10 ture and storage in suitable underground formations by— 

11 (1) providing for long-term stewardship of 

12 closed carbon dioxide storage sites to ensure con13 tinuing protection of health, safety, and the environ14 ment during the stewardship period; 

15 (2) providing a system for compensation to any 

16 person that may suffer personal injury or property 

17 damage from stored carbon dioxide at such a site; 

18 (3) establishing financial responsibility and a 

19 dedicated funding mechanism for such stewardship 

20 and compensation; and 

21 (4) establishing a transitional program that 

22 provides limited indemnification for owners and op23 erators of qualifying first mover projects to dem24 onstrate the capture and geological storage of car25 bon dioxide. 


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1 SEC. 503. DEFINITIONS. 

2 In this title: 

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

4 Carbon Storage Stewardship Board that is estab5 lished under section 508. 

6 (2) CARBON DIOXIDE.—The term ‘‘carbon diox7 ide’’ means carbon dioxide that is segregated for 

8 purposes of geologic storage, including small quan9 tities of other compounds to the extent authorized by 

10 the terms of the injection permits issued for the 

11 storage facility. 

12 (3) CERTIFICATE OF COMPLETION.—The term 

13 ‘‘certificate of completion’’ means a determination 

14 issued with respect to a storage facility by the regu15 latory authority that certifies that the project oper16 ator has completed injection operations, well closure, 

17 and any required monitoring and remediation at a 

18 storage facility, so that there is a reasonable basis 

19 to believe that carbon dioxide is and will continue to 

20 be safely stored at the site and will not present an 

21 unreasonable risk to health, safety, or the environ22 ment (including drinking water supplies) during the 

23 stewardship period. 

24 (4) CERTIFIED POST-CLOSURE STORAGE FACIL25 ITY.—The term ‘‘certified post closure storage facil26 ity’’ means a storage facility for which the reguVerDate Mar 15 2010 04:16 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00075 Fmt 6652 Sfmt 6201 E:\BILLS\S3591.IS S3591

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1 latory authority has issued a certificate of comple2 tion. 

3 (5) CIVIL CLAIM.—The term ‘‘civil claim’’ 

4 means any claim for civil relief with respect to a fa5 cility that arises from migration of carbon dioxide 

6 from such facility or is otherwise related to the in7 jection of carbon dioxide at such facility, excluding— 

8 (A) any claim arising from breach of an 

9 express contract; and 

10 (B) in the case of a project operator, any 

11 claim arising from— 

12 (i) willful violation of applicable rules 

13 of the regulatory authority; or 

14 (ii) any false statement or misrepre15 sentation in an application for a certificate 

16 of completion; and 

17 (iii) conduct that constitutes reckless 

18 or intentional misconduct by the project 

19 operator. 

20 (6) FEDERAL OR STATE ENVIRONMENTAL RE21 QUIREMENT.—The term ‘‘Federal or State environ22 mental requirement’’ means a requirement of a Fed23 eral or State agency that— 

24 (A) relates to health, safety, or the envi25 ronment that results from the injection of carVerDate Mar 15 2010 04:16 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00076 Fmt 6652 Sfmt 6201 E:\BILLS\S3591.IS S3591

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1 bon dioxide at a certified post-closure storage 

2 facility; 

3 (B) is authorized under Federal or State 

4 law; and 

5 (C) imposes an obligation relating to such 

6 injection of carbon dioxide during the steward7 ship period to— 

8 (i) monitor the migration of carbon 

9 dioxide within and from a certified post10 closure storage facility; 

11 (ii) perform remediation at such facil12 ity; 

13 (iii) desist from any action that poses 

14 a health, safety, or environment risk; or 

15 (iv) take other such action that may 

16 be necessary to ensure the protection of 

17 health, safety or the environment. 

18 (7) FIRST MOVER PROJECT.—The term ‘‘first 

19 mover project’’ is a project involving the large-scale 

20 capture and geological sequestration of carbon diox21 ide that the Secretary selects for indemnification 

22 under section 508. 

23 (8) NON-FEDERAL MEMBER.—The term ‘‘non24 Federal member’’ means any member of the Board 


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1 who is not otherwise employed by the Federal gov2 ernment. 

3 (9) PROGRAM.—The term ‘‘Program’’ means 

4 the National Carbon Storage Stewardship Program 

5 established under section 507. 

6 (10) PROJECT OPERATOR.—The term ‘‘project 

7 operator’’ means the entity responsible for injection 

8 operations at a storage facility. 

9 (11) PUBLIC CLAIM.—The term ‘‘public 

10 claim’’— 

11 (A) means a civil claim that is asserted by 

12 a third party for— 

13 (i) personal injury; 

14 (ii) property damage; 

15 (iii) trespass; or 

16 (iv) nuisance; but 

17 (B) does not include claims for punitive 

18 damages or non-economic losses. 

19 (12) REGULATORY AUTHORITY.—The term 

20 ‘‘regulatory authority’’ for a storage facility means 

21 the State or Federal agency that issues an injection 

22 permit for such storage facility. If more than one 

23 agency has such authority with respect to a facility, 

24 the Board shall designate one of the permitting 


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1 agencies as the regulatory authority for such facility 

2 for purposes of carrying out this title. 

3 (13) REMEDIATION.—The term ‘‘remediation’’ 

4 means action to remedy, mitigate, or correct any 

5 danger to health, safety, or the environment (includ6 ing any damage to underground drinking water sup7 plies) that occurs as a result of prior injection of 

8 carbon dioxide at a certified post-closure storage fa9 cility. 

10 (14) SECRETARY.—The term ‘‘Secretary’’ 

11 means the Secretary of Energy. 

12 (15) STEWARDSHIP AGENCY.—The term ‘‘stew13 ardship agency’’ means the agency that has assumed 

14 stewardship responsibility under section 504. 

15 (16) STEWARDSHIP PERIOD.—The term ‘‘stew16 ardship period’’ for a storage facility means the pe17 riod of time that begins upon the date that the regu18 latory authority issues the certificate of completion 

19 for the storage facility. 

20 (17) STEWARDSHIP RESPONSIBILITY.—The 

21 term ‘‘stewardship responsibility’’ means responsi22 bility for monitoring and remediation of certified 

23 post-closure storage facilities in a State during the 

24 stewardship period, as provided in section 504. 


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1 (18) STORAGE FACILITY.—The term ‘‘storage 

2 facility’’ means a facility for long-term geologic stor3 age and sequestration of carbon dioxide, including a 

4 facility for enhanced oil or gas recovery, as provided 

5 by section 506(b)(1)(B). 

6 (19) TRUST FUND.—The term ‘‘Trust Fund’’ 

7 means the Carbon Storage Stewardship Trust Fund 

8 that is established under section 506. 

9 SEC. 504. STEWARDSHIP RESPONSIBILITY. 

10 (a) AGENCY RESPONSIBLE FOR STEWARDSHIP.—A 

11 State may accept stewardship responsibility for certified 

12 post-closure storage facilities in that State in accordance 

13 with regulations of the Secretary. If a State declines to 

14 accept stewardship responsibility, then the Secretary shall 

15 have stewardship responsibility for certified post-closure 

16 storage facilities in that State. In accordance with such 

17 rules as the Secretary may prescribe, if a State that has 

18 accepted stewardship responsibility fails to carry out such 

19 responsibility, the Secretary shall, after notice and oppor20 tunity for comment, assume such responsibility. 

21 (b) ADMINISTRATION, MONITORING AND REMEDI22 ATION.— 

23 (1) RESPONSIBILITIES.—Upon issuance of the 

24 certificate of completion for a storage facility, the 

25 stewardship agency shall be responsible for providing 


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1 all monitoring and remediation of the carbon dioxide 

2 injected at that storage facility. The monitoring and 

3 remediation shall be conducted in accordance with 

4 standards prescribed by the Board under section 

5 507(c)(1). 

6 (2) REIMBURSEMENT OF AGENCY COSTS.—The 

7 Board shall reimburse the stewardship agency for all 

8 reasonable and verified costs that the stewardship 

9 agency has incurred for program administration and 

10 the performance of its stewardship responsibility, as 

11 described in paragraph (1). The Board shall pay 

12 such costs from the Trust Fund through the Pro13 gram and in accordance with a reimbursement con14 tract entered into under subsection (c). 

15 (c) REIMBURSEMENT CONTRACTS.— 

16 (1) IN GENERAL.—The Board shall offer each 

17 agency that accepts stewardship responsibility for 

18 certified post-closure storage facilities within a State 

19 a contract under which the Board provides reim20 bursement for costs of administration, monitoring, 

21 and remediation of such facilities during the stew22 ardship period as determined under paragraph (2). 

23 Section 1341 of title 31, United States Code shall 

24 not apply to any such contract. The contract shall 


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1 be backed by the full faith and credit of the United 

2 States. 

3 (2) RULES.—The Board shall prescribe rules 

4 for reimbursement of all reasonable costs of adminis5 tration, monitoring, and remediation incurred by 

6 agencies that have stewardship responsibility for cer7 tified post-closure storage facilities. 

8 SEC. 505. RESPONSIBILITY FOR PAYMENT OF CLAIMS. 

9 (a) CLAIMS AGAINST THE TRUST FUND.— 

10 (1) PUBLIC CLAIMS.—Upon issuance of the cer11 tificate of completion for a storage facility, all public 

12 claims related to the carbon dioxide injected at that 

13 certified post closure storage facility shall be filed 

14 with the Board and paid from Trust Fund. 

15 (2) ORPHAN STORAGE FACILITIES.—A steward16 ship agency having jurisdiction over a particular 

17 storage facility may petition the Board for reim18 bursement from the Trust Fund of the monitoring 

19 and remediation costs that may be incurred by such 

20 stewardship agency consistent with the standards es21 tablished under section 507(c) if— 

22 (A) the particular storage facility— 

23 (i) has completed injection operations 

24 at the storage facility; 


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1 (ii) has obtained all applicable permits 

2 for the injection of carbon dioxide into the 

3 storage facility and substantially complied 

4 with the requirements of those permits 

5 during the injection operations; 

6 (iii) has paid annual assessments into 

7 the Trust Fund, as required under section 

8 506(b), for a substantial majority of the 

9 carbon dioxide injected into the storage fa10 cility; and 

11 (iv) is unable to obtain a certificate of 

12 completion from the regulatory authority; 

13 and 

14 (B) a United States bankruptcy court has 

15 issued— 

16 (i) a bankruptcy discharge that re17 leases the owners, operators, and any other 

18 potentially responsible parties from the fi19 nancial liabilities related to the particular 

20 storage facility; or 

21 (ii) other determination that the own22 ers, operators, and any other potentially 

23 responsible parties of the particular stor24 age are financially unable to fulfill condi25 tions and requirements necessary to obtain 


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1 a certificate of completion for the par2 ticular storage facility; and 

3 (C) the Board determines that using the 

4 Trust Fund to fund monitoring and remedi5 ation activities at the particular storage facility 

6 is in the public interest. 

7 (3) EXCLUSIVE BOARD JURISDICTION.—The 

8 Board shall have exclusive jurisdiction to adjudicate 

9 all public claims and petitions filed with Board 

10 under paragraphs (1) and (2), as provided by section 

11 509. 

12 (b) CLAIMS AGAINST STEWARDSHIP AGENCIES.— 

13 (1) CIVIL CLAIMS.—Subject to paragraph (2), 

14 an agency that has stewardship responsibility for a 

15 certified post-closure storage facility is not subject to 

16 any civil claim as a result of assuming or carrying 

17 out its stewardship responsibility under this title. 

18 (2) FEDERAL AND STATE REQUIREMENTS.—An 

19 agency that has stewardship responsibility for a cer20 tified post-closure storage facility shall be subject 

21 to— 

22 (A) all applicable Federal and State envi23 ronmental requirements that relate to the injec24 tion of carbon dioxide at that storage facility 

25 during the stewardship period; and 


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1 (B) civil claims for injunctive relief for the 

2 performance of— 

3 (i) all applicable Federal and State 

4 environmental requirements that relate 

5 to— 

6 (I) the ongoing monitoring, 

7 measurement, and verification of car8 bon dioxide injected at that storage 

9 facility; and 

10 (II) maintaining the integrity of 

11 the storage facility during the stew12 ardship period; and 

13 (ii) any requirement to provide reme14 diation at the storage facility during the 

15 stewardship period that is— 

16 (I) consistent with any applicable 

17 Federal or State environmental re18 quirements; and 

19 (II) necessary to remedy any 

20 breach in the integrity of the storage 

21 facility that is caused by the injection 

22 of carbon dioxide into such facility. 

23 (3) VENUE.—Civil claims brought for injunctive 

24 relief under paragraph (2)(B) shall be filed in the 


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1 District Court of the United States in which the 

2 stewardship agency is located. 

3 (4) CONFLICTING REQUIREMENTS.—If a stand4 ard or requirement established by the Board differs 

5 from any Federal or State environmental require6 ment, compliance with the Board standard or re7 quirement shall be deemed to satisfy the obligation 

8 of a stewardship agency to comply with the cor9 responding State or Federal environmental require10 ment. 

11 (c) CLAIMS AGAINST OPERATORS, PROPERTY OWN12 ERS, TRANSPORTERS, AND GENERATORS.—Upon issuance 

13 of the certificate of completion for a storage facility, civil 

14 claims related to the carbon dioxide injected at that cer15 tified post-closure storage facility may not be brought 

16 against— 

17 (1) the project operator of the facility, except if 

18 the Board determines that there are insufficient 

19 funds in the Trust Fund to pay such claims, as pro20 vided in subsection (b)(5)(E) of section 506; 

21 (2) the owner of the facility; 

22 (3) a holder of a real property interest in the 

23 facility; 

24 (4) any transmission pipeline that transported 

25 carbon dioxide to the facility; or 


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1 (5) the generator of the carbon dioxide being 

2 handled by either the pipeline or storage facility. 

3 SEC. 506. CARBON STORAGE STEWARDSHIP TRUST FUND. 

4 (a) ESTABLISHMENT OF TRUST FUND.—The Carbon 

5 Storage Stewardship Trust Fund is hereby established in 

6 the Treasury. The Trust Fund shall be administered by 

7 the Board. Notwithstanding section 3302 of title 31, 

8 United States Code, all assessments paid under subsection 

9 (b) shall be deposited in the Trust Fund and shall be avail10 able without fiscal year limitation and without further ap11 propriation solely for the purpose of— 

12 (1) covering the administrative costs of the 

13 Board under this title; and 

14 (2) making payments authorized by section 

15 507. 

16 (b) ASSESSMENTS.— 

17 (1) PAYMENT BY OPERATOR.— 

18 (A) IN GENERAL.—Except as provided in 

19 subparagraph (B), each project operator of a 

20 storage facility shall pay an annual assessment 

21 into the Trust Fund for the carbon dioxide in22 jected into a storage facility during a given cal23 endar year after the date of enactment of this 

24 Act. The annual assessment shall be equal to 

25 the product of— 


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1 (i) the number of tons of carbon diox2 ide that are injected into the storage facil3 ity for a particular year during the oper4 ational phase of the facility; and 

5 (ii) the assessment amount, expressed 

6 on a dollar-per-ton of carbon dioxide in7 jected, that the Board has established for 

8 the storage facility under paragraph (2). 

9 (B) ENHANCED OIL OR GAS RECOVERY.— 

10 In the case of the injection of carbon dioxide for 

11 the purpose of enhanced oil or gas recovery, the 

12 requirement to pay an annual assessment into 

13 the Trust Fund under subparagraph (A) shall 

14 apply— 

15 (i) solely to the net quantity of carbon 

16 dioxide injected into a storage facility for 

17 the purpose of the long-term geological 

18 storage of the carbon dioxide in order to 

19 meet a greenhouse gas reduction compli20 ance obligation under a Federal or State 

21 regulatory program; and 

22 (ii) only to the extent that the project 

23 operator has relied upon geological storage 

24 of the carbon dioxide for meeting a green25 house gas reduction compliance obligation 


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1 under a Federal or State regulatory pro2 gram. 

3 (C) SPECIAL RULE.— 

4 (i) EXTENDED PAYMENT SCHED5 ULE.—Except as provided by clause (ii), 

6 the Board may impose an assessment 

7 under subparagraph (A) upon any storage 

8 facility existing on the date of enactment 

9 of this Act for amounts of carbon dioxide 

10 injected prior to the establishment of the 

11 Trust Fund. The Board shall establish a 

12 reasonable schedule for the payment of the 

13 assessment authorized under the previous 

14 sentence, which shall not exceed 10 years. 

15 (ii) DEMONSTRATION PROJECTS.— 

16 The Board shall not impose an assessment 

17 under subparagraph (A) in the case of a 

18 demonstration project that— 

19 (I) injects carbon dioxide in 

20 amounts that are less than 1,000,000 

21 tons per year; 

22 (II) has an injection period of 5 

23 years or less; and 


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1 (III) poses a de minimis risk to 

2 health, safety, or the environment 

3 during the stewardship period. 

4 (iii) TRUST FUND COVERAGE.—In the 

5 case of a project that is exempted from the 

6 assessment under clause (ii) of this sub7 paragraph, the stewardship agency shall— 

8 (I) perform any monitoring and 

9 remediation that may be necessary 

10 after the proper closure of the storage 

11 facility; 

12 (II) receive reimbursement for 

13 the reasonable costs for performing 

14 such monitoring and remediation ac15 tivities from the Trust Fund by the 

16 Board; and 

17 (III) be subject to civil claims for 

18 injunctive relief to perform appro19 priate monitoring and remediation, as 

20 provided under section 505(b)(2)(B). 

21 (2) ASSESSMENT AMOUNT.—After providing op22 portunity for public notice and comment and after 

23 taking into account the information, recommenda24 tions and guidance that the technical advisory com25 mittee may provide under section 508(g), the Board 


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1 shall determine by rule the assessment amount that 

2 applies to each ton of carbon dioxide injected into a 

3 storage facility in accordance with method prescribed 

4 in paragraph (3). 

5 (3) METHOD FOR CALCULATING ASSESSMENT

6 AMOUNT.—The Board shall establish by rule a 

7 method for calculating the assessment amount 

8 that— 

9 (A) establishes a specific dollar-per-ton as10 sessment for the injection of carbon dioxide into 

11 each type or class of storage facilities that the 

12 Board has identified under paragraph (4)(A); 

13 (B) reflects the degree of risk that sub14 stantial remediation costs and public claims 

15 might be incurred for each type or class of stor16 age facilities for which the Board has developed 

17 a risk profile under paragraph (4)(B); 

18 (C) accounts for the cumulative quantities 

19 of carbon dioxide that project operators are ex20 pected to inject into storage facilities at appro21 priate milestones over the life of the Program; 

22 (D) calculates the net present value of cu23 mulative payments that the Board expects to 

24 make under section 507 at appropriate mile25 stones over the life of the Program for— 


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1 (i) reasonable future administrative 

2 costs that the Board expects to incur 

3 under the Act; 

4 (ii) reimbursement to stewardship 

5 agencies for the reasonable future costs 

6 that such agencies are likely to incur for 

7 program administration, monitoring, reme8 diation and the performance of other stew9 ardship responsibilities under section 504; 

10 and 

11 (iii) satisfaction of public claims on 

12 which the Board expects to make payment 

13 based on the reasonably anticipated risks 

14 of ultimate recovery against the Program 

15 for such costs under section 505; 

16 (E) calculates the net present value of pay17 ments that the Board expects to be deposited 

18 into the Trust Fund under this subsection at 

19 appropriate milestones over the life of the Pro20 gram; and 

21 (F) reflects the best available engineering, 

22 geological, and scientific information, including 

23 the information, recommendations and guidance 

24 that the technical advisory committee may pro25 vide to the Board under section 508(g). 


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1 (4) TYPES AND CLASSES OF STORAGE FACILI2 TIES.— 

3 (A) IDENTIFICATION AND CATEGORIZA4 TION.—The Board shall identify those geologi5 cal formations that may potentially be used as 

6 a storage facility and categorize each identified 

7 formation into an appropriate type or class 

8 based on— 

9 (i) the type of formation, including 

10 depleted oil and gas formations, deep 

11 unmineable coal seems, and deep saline 

12 aquifers; 

13 (ii) depth of injection of carbon diox14 ide into the formation; 

15 (iii) proximity of the formation to 

16 drinking water sources, human settle17 ments, or ecologically sensitive areas; 

18 (iv) proximity of the formation to seis19 mically active geological faults; and 

20 (v) other factors that may affect the 

21 probability that the Board may incur sub22 stantial costs for remediation and public 

23 claims under section 508(g). 

24 (B) RISK PROFILES.—For each type or 

25 class of geological formation identified under 


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1 subparagraph (A), the Board shall prepare a 

2 profile of the reasonably foreseeable risks that 

3 could result by the injection of carbon dioxide 

4 into such a formation. In developing such risk 

5 profiles, the Board shall rely on the best avail6 able scientific information, including the infor7 mation, recommendations and guidance that the 

8 technical advisory committee may provide to the 

9 Board under section 508(g). 

10 (5) ADJUSTMENT OF ASSESSMENT AMOUNT.— 

11 (A) IN GENERAL.—The Board shall pre12 scribe rules for adjusting the assessment 

13 amount established under paragraph (2) if the 

14 Board determines that the Trust Fund is un15 derfunded or overfunded to cover the payments 

16 expected under section 507. The Board shall 

17 make its determination on the sufficiency of 

18 such funds in the Trust Fund based on actu19 arial studies to be conducted at least every 5 

20 years, beginning 10 years after the date of en21 actment of this Act, and any change in the as22 sessment amount shall be made in accordance 

23 with the applicable provisions of this subsection 

24 and after opportunity for public notice and 

25 comment. 


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1 (B) LIMITS ON SIZE OF TRUST FUND.— 

2 (i) IN GENERAL.—The Board shall es3 tablish by rule a minimum and maximum 

4 balance for the Trust Fund and adjust the 

5 amount of the assessment amount to en6 sure that the amounts in Trust Fund re7 main within the minimum and maximum 

8 fund levels established under this subpara9 graph. In setting the minimum and max10 imum fund levels, the Board shall— 

11 (I) apply the criteria prescribed 

12 in paragraph (3) for calculating the 

13 assessment amount; and 

14 (II) take into account the infor15 mation, recommendations and guid16 ance that the technical advisory com17 mittee may provide under section 

18 508(g). 

19 (ii) REVIEW AND REVISION.—The 

20 Board shall review from time to time and 

21 revise as necessary and appropriate the 

22 minimum and maximum levels established 

23 for the Trust Fund under clause (i) of this 

24 subparagraph. The Board may make any 

25 revision to the minimum and maximum 


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1 levels only in accordance with applicable 

2 provisions of this subsection, including the 

3 requirements of clause (i) of this subpara4 graph. 

5 (C) REBATES IF TRUST FUND IS OVER6 FUNDED.—The Board may provide rebates to 

7 project operators that have made payments into 

8 the Trust Fund under subsection (b) if the 

9 Board determines by rule that— 

10 (i) the Trust Fund is overfunded 

11 under subparagraph (A); 

12 (ii) a substantial reduction in future 

13 payments into the Trust Fund would be 

14 necessary to ensure that the amounts in 

15 the Trust Fund do not exceed maximum 

16 balance levels established under subpara17 graph (B); and 

18 (iii) a rebate of past payments, com19 bined with a downward adjustment of fu20 ture payments, into the Trust Fund is ap21 propriate to ensure a fair and equitable as22 sessment on all project operators contrib23 uting to the Trust Fund. 

24 (D) INCREASES IN ASSESSMENT

25 AMOUNT.—The Board may increase the level of 


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1 the assessment amount for carbon dioxide in2 jected into a storage facility if the Board deter3 mines by rule that the Trust Fund is under4 funded under subparagraph (A). Any such in5 crease in the assessment amount shall only 

6 apply prospectively to annual assessments for 

7 carbon dioxide injected during the operation of 

8 a storage facility under paragraph (2). 

9 (E) CLAIMS IN EXCESS OF TRUST FUND.— 

10 The project operator shall be responsible to pay 

11 claims under section 505 that are related to, or 

12 arising from, the injection and sequestration of 

13 carbon dioxide at its certified post-closure stor14 age facility if the Board determines that insuffi15 cient funds are available to pay such claims 

16 even after the application of a prospective in17 crease of the assessment amount, as authorized 

18 by subparagraph (D). 

19 (c) INVESTMENT.—At the request of the Board, the 

20 Secretary of the Treasury may invest any part of the 

21 amounts in the Trust Fund in interest-bearing securities 

22 of the United States Government. The interest on, and 

23 the proceeds from the sale or redemption of, the securities 

24 shall be deposited in the Trust Fund. 


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1 (d) REPAYABLE ADVANCES.—If amounts in the 

2 Trust Fund are insufficient to cover current obligations 

3 of the Board under this Act, there are authorized to be 

4 appropriated to the Trust Fund as interest-bearing repay5 able advances, such sums as may be necessary to carry 

6 out the purposes of such Trust Fund. The terms and con7 ditions of such advances shall be as specified in appropria8 tion Acts. 

9 SEC. 507. PAYMENTS FROM THE TRUST FUND. 

10 (a) ESTABLISHMENT.—The Board shall establish and 

11 administer the National Carbon Storage Stewardship Pro12 gram to— 

13 (1) reimburse agencies (or the Secretary as pro14 vided under section 504) for the costs incurred for 

15 program administration and in performing their 

16 stewardship responsibilities with respect to certified 

17 post-closure storage facilities, as provided in con18 tracts executed under section 504(c); and 

19 (2) make payments to satisfy— 

20 (A) public claims made with respect to cer21 tified post-closure storage facilities, as author22 ized by section 505(a)(1); and 

23 (B) petitions to cover monitoring and re24 mediation costs incurred at storage facilities, as 

25 authorized by section 505(a)(2). 


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1 The payment of these expenditures by the Board 

2 shall be funded from the Trust Fund in accordance 

3 with provisions of this title. 

4 (b) PAYMENT SCHEDULES FOR PUBLIC CLAIMS.— 

5 The Board shall by rule prescribe payment schedules for 

6 determining the nature and amount of compensation that 

7 the Board will pay from the Trust Fund for public claims 

8 under section 505(a)(1). The payment schedules shall re9 flect the best available engineering, geological, and sci10 entific information, including the information, rec11 ommendations and guidance that the technical advisory 

12 committee may provide to the Board under section 508(g). 

13 (c) MONITORING AND REMEDIATION.— 

14 (1) STANDARDS.—The Board shall prescribe 

15 standards for determining whether and to what ex16 tent monitoring and remediation will be required for 

17 carbon dioxide injected at a certified post-closure 

18 storage facility. The standards shall— 

19 (A) be based on the applicable Federal and 

20 State environmental requirements for the moni21 toring and remediation of carbon dioxide in22 jected at a certified post closure storage facility; 

23 and 

24 (B) reflect any other monitoring or remedi25 ation requirements that the Board determines 


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1 are necessary to protect the health, safety, and 

2 the environment during the stewardship period. 

3 (2) REIMBURSEMENT.— 

4 (A) IN GENERAL.—The Board shall reim5 burse the stewardship agency from the Trust 

6 Fund for the costs that it has incurred for the 

7 monitoring and remediation in accordance with 

8 the standards established under paragraph (1) 

9 and contracts entered into under section 504. 

10 (B) CONTRACTUAL DISPUTES.—The stew11 ardship agency or the Board may bring an ac12 tion in the United States District Court to ob13 tain relief on disputes relating to provisions of 

14 reimbursement contracts executed under section 

15 504(c). 

16 (d) LIMITATION ON PAYMENT OF CLAIMS.—The 

17 Board shall not pay claims otherwise authorized under 

18 this section if the claim for reimbursement or compensa19 tion arose from conduct of the project operator that con20 stitutes reckless or intentional misconduct. 

21 (e) PRIVATE INSURERS.—The Board may contract 

22 with private insurers to provide claim adjustment services 

23 for public claims. In addition, to the extent the Board de24 termines that insurance from private sources to cover rea25 sonably anticipated costs of public claims and remediation 


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1 is available for certified post-closure storage facilities at 

2 reasonable cost and on reasonable terms, the Board may 

3 purchase such insurance from private sources. 

4 SEC. 508. CARBON STORAGE STEWARDSHIP BOARD. 

5 (a) ESTABLISHMENT.—There is hereby established 

6 within the Department of Energy an independent agency 

7 to be know as the Carbon Storage Stewardship Board. 

8 (b) PURPOSE.—The purpose of the Board is to ad9 vance, in the most efficient and effective manner, the wide10 spread deployment of carbon capture and storage tech11 nologies by providing for the long-term stewardship of 

12 closed storage sites in a manner that achieves the objec13 tives and requirements of this title. 

14 (c) ORGANIZATION.— 

15 (1) MEMBERSHIP.—The Board shall consist of 

16 7 members, of which— 

17 (A) 4 shall be appointed by the President 

18 by and with the advice and consent of the Sen19 ate; and 

20 (B) 3 shall be full-time Federal employees 

21 designated by the President in accordance with 

22 paragraph (6). 

23 (2) QUALIFICATIONS FOR MEMBERSHIP.—Each 

24 member of the Board shall— 

25 (A) be a citizen of the United States; 


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1 (B) have demonstrated knowledge and ex2 pertise in the fields relating to— 

3 (i) carbon capture technologies; 

4 (ii) geological storage of carbon diox5 ide in underground formations; 

6 (iii) electric power generation; or 

7 (iv) qualitative and quantitative eval8 uation of the risk posed to health, safety, 

9 or the environment (including drinking 

10 water supplies) by the injection of carbon 

11 dioxide into underground formations; and 

12 (C) in the case of members that are full13 time Federal employees designated under sub14 paragraph (c)(1)(B), be serving in a technical 

15 capacity for the Federal agency on one or more 

16 of the areas enumerated in subparagraph (B). 

17 (3) APPOINTMENT AND DESIGNATION.—Not 

18 later than 180 days after the date of enactment of 

19 this Act, the President shall appoint or designate (as 

20 the case may be) the members to the Board in ac21 cordance with the requirements of this subsection. 

22 (4) TERM OF SERVICE.— 

23 (A) IN GENERAL.—Except as provided 

24 under subparagraph (B), each non-Federal 

25 member of the Board shall serve for a term of 


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1 12 years and may be removed by the President 

2 only for neglect of duty, malfeasance, or other 

3 just cause for dismissal. Members of the Board 

4 who are full-time Federal employees shall serve 

5 at the pleasure of the President. 

6 (B) FIRST APPOINTMENTS.—In the case of 

7 the non-Federal members that the President 

8 first appoints to the Board, 

9 (i) the Chairperson shall serve a term 

10 of 6 years; and 

11 (ii) the 3 remaining non-Federal 

12 members to the Board (other than the 

13 Chairperson) shall serve for terms of 8, 10, 

14 and 12 years, as designated by the Presi15 dent at the time of appointment. 

16 (C) SERVICE UNTIL NEW APPOINTMENT.— 

17 The term of a non-Federal Board member shall 

18 continue after the expiration of the term of the 

19 member until the date on which a replacement 

20 is appointed by the President and confirmed by 

21 the Senate. 

22 (D) VACANCY.—Any non-Federal Board 

23 member appointed to fill a vacancy in an unex24 pired term shall serve only for the remainder of 

25 that term. 


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1 (E) REAPPOINTMENT.—An individual who 

2 has served as a Board member for a term of 

3 more than 8 years shall not be eligible for re4 appointment. 

5 (5) CHAIRPERSON.— 

6 (A) DESIGNATION.—The President shall 

7 designate a Chairperson from the non-Federal 

8 Board members that are representatives from 

9 industry under paragraph (6)(E). 

10 (B) TERM OF SERVICE.—The Chairperson 

11 of the Board shall serve for a term of 6 years 

12 and may be reappointed for a second-year term. 

13 (6) COMPOSITION OF BOARD.—The Board shall 

14 consist of— 

15 (A) 1 employee from the Department of 

16 Energy; 

17 (B) 1 employee from Environmental Pro18 tection Agency; 

19 (C) 1 employee from the Department of 

20 Interior; 

21 (D) 1 representative from a public utility 

22 commission or other state governmental agency; 

23 and 


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1 (E) 3 representatives from industry, in2 cluding 2 individuals who have substantial expe3 rience in the electric power sector. 

4 (7) LEVEL OF SERVICE.— 

5 (A) FULL-TIME SERVICE.—The Chair6 person of the Board shall serve on a full-time 

7 basis and may not engage in any other busi8 ness, vocation, or employment while serving in 

9 the capacity of Chairperson. 

10 (B) PART-TIME SERVICE.—Members of the 

11 Board who are not serving as the Chair12 person— 

13 (i) shall serve on part-time basis, as 

14 needed to perform the functions and re15 sponsibilities of the Board; 

16 (ii) may engage in other business, vo17 cation, or employment so long as there is 

18 no direct conflict of interest with their offi19 cial work responsibilities of Board; and 

20 (iii) in the case of each individual who 

21 is employee of a Federal agency, may be 

22 assigned to serve on the Board without re23 imbursement to the Federal agency. 


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1 (8) COMPENSATION.—Non-Federal members of 

2 the Board shall be compensated at the rate pre3 scribed for Level IV of the Executive Schedule. 

4 (d) DUTIES AND RESPONSIBILITIES OF THE CHAIR5 PERSON.—The Chairperson shall be responsible on behalf 

6 of the Board for the executive and administrative oper7 ation of the Board. 

8 (e) FUNCTIONS.—The Board shall— 

9 (1) prescribe the form of cost reimbursement 

10 agreements under section 504(c), offer such agree11 ments to agencies that have stewardship responsi12 bility, and execute such agreements on behalf of the 

13 United States; 

14 (2) evaluate the adequacy of the Trust Fund 

15 and adjust the level of the assessment as authorized 

16 under section 506(b); 

17 (3) prescribe payment schedules for public 

18 claims under section 507(b) and monitoring and re19 mediation standards under section 507(c)(1); 

20 (4) determine, as provided in section 509, the 

21 extent to which— 

22 (A) public claims filed with the Board are 

23 payable under section 505(a)(1) in accordance 

24 with applicable payment schedules; and 


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1 (B) petitions to cover monitoring and re2 mediation costs incurred at storage facilities are 

3 payable under section 505(a)(2). 

4 (5) determine whether monitoring and remedi5 ation is required at a certified post-closure storage 

6 facility prescribed under section 507(c); 

7 (6) make payments under cost reimbursement 

8 agreements (including payments for monitoring and 

9 remediation costs) under section 504(c); and 

10 (7) exercise such other authorities as may be 

11 necessary or appropriate to carry out its functions 

12 under the preceding paragraphs of this subsection or 

13 other provisions of this title, including assignment of 

14 employees from other Federal agencies, employment 

15 of personnel, and entering into contracts. 

16 (f) POWERS.—The Board has the authority to— 

17 (1) prescribe, by rule or order, such require18 ments for monitoring certified post-closure storage 

19 facilities and for making such inspections and re20 ports as may be necessary or appropriate to carry 

21 out this title; 

22 (2) enter onto the premises or property of any 

23 storage facility to carry out this title; 


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1 (3) issue an order requiring a person to comply 

2 with order, rule or requirement that the Board has 

3 established under the Act; 

4 (4) commence a civil action in the United 

5 States District Court to recover from any project op6 erator any fees or assessments not paid when due, 

7 after notice and an opportunity to cure any defi8 ciency within 30 days of such notice; 

9 (5) bring an action against any person in the 

10 United States District Court to enforce the provi11 sions of this title or rules or orders thereunder, and 

12 to obtain appropriate injunctive or other relief; and 

13 (6) seek civil or criminal penalties for violations 

14 of provisions of this title, as provided under sub15 section (h). 

16 (g) TECHNICAL ADVISORY COMMITTEE.— 

17 (1) ESTABLISHMENT.—The Board shall estab18 lish an independent technical advisory committee 

19 composed of 7 members, each of whom has dem20 onstrated knowledge and expertise with respect to 

21 engineering, geological, or environmental matters re22 lated to the storage of carbon dioxide in suitable un23 derground formations. 

24 (2) FUNCTION.—The committee established 

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1 ommendations and guidance to the Board on tech2 nical matters related to— 

3 (A) the amount and duration of the assess4 ment that a project operator of a storage facil5 ity should pay under section 506(b) to cover fu6 ture anticipated payments from the Trust Fund 

7 for the purposes described under section 507; 

8 (B) the profile of reasonably foreseeable 

9 risks that the Board must develop for each type 

10 or class of geological formation under section 

11 506(b)(4)(B); 

12 (C) payment schedules for determining the 

13 nature and amount of compensation that the 

14 Board will pay from the Trust Fund for public 

15 claims, as provided under section 507(b); 

16 (D) standards for determining whether and 

17 to the extent that monitoring and remediation 

18 will be required for carbon dioxide injected at a 

19 certified post-closure storage facility, as pro20 vided under section 507(c); and 

21 (E) other determinations or actions that 

22 the Board must perform to carry out its re23 sponsibilities and duties under this title. 

24 (3) ADDITIONAL RESEARCH.—The committee 

25 established under paragraph (1) shall advise the 


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1 Board as to additional research and technical stud2 ies that may be necessary to perform the functions 

3 described under paragraph (2). 

4 (h) PENALTIES.— 

5 (1) CIVIL PENALTIES.—Any person that know6 ingly violates any provision of this title or any rule 

7 or order thereunder shall be subject to a civil pen8 alty of $10,000 per violation. 

9 (2) CRIMINAL PENALTIES.—Any person that 

10 knowingly and willfully violates any provision of this 

11 title or any rule or order thereunder shall be subject 

12 to a fine of $50,000 or imprisonment for a term of 

13 2 years, or both. 

14 (i) PUBLIC COMMENT AND JUDICIAL REVIEW.—In 

15 prescribing rules of general applicability under this title, 

16 the Secretary and the Board shall provide an opportunity 

17 for public notice and comment. Those rules shall be sub18 ject to review by the United States Courts of Appeal in 

19 accordance with chapter 158 of title 28, United States 

20 Code. All other agency actions under this title shall be re21 viewed in accordance with chapter 7 of title 5, United 

22 States Code. 

23 SEC. 509. ADJUDICATION OF PUBLIC CLAIMS. 

24 (a) PUBLIC CLAIMS OFFICE.— 


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1 (1) ESTABLISHMENT.—There is established 

2 within the Department of Energy an Office of Public 

3 Claims, which shall be composed of administrative 

4 law judges who are responsible for adjudicating pub5 lic claims filed with the Board under section 505(a). 

6 (2) APPOINTMENT.—After the first storage fa7 cility receives a certificate of completion from the 

8 appropriate regulatory authority, the Chairperson of 

9 the Board shall begin to appoint as many adminis10 trative law judges as are necessary to adjudicate 

11 public claims pending before the Board and may se12 lect for appointment qualified administrative law 

13 judges who are contracted from the Department of 

14 Energy or other Federal agencies. 

15 (3) INDEPENDENCE FROM BOARD.—The ad16 ministrative law judges within the Office of Public 

17 Claims shall establish and implement procedures to 

18 ensure the separation and independence of the Office 

19 of Public Claims from the Board. 

20 (b) ADJUDICATORY PROCEDURES.—In adjudicating 

21 each public claim or petition filed with the Board under 

22 section 505(a), the administrative law judge shall— 

23 (1) in the case of public claims made with re24 spect to certified post-closure storage facilities under 

25 section 505(a)(1), apply the appropriate payment 


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1 schedules for compensation that the Board has es2 tablished under section 507(b); 

3 (2) in the case of petitions for the reimburse4 ment of monitoring and remediation costs incurred 

5 at storage facilities under section 505(a)(2), deter6 mine the reasonable costs for performing the appro7 priate standards established for monitoring and re8 mediation under section 507(c); and 

9 (3) issue a decision that is determined on the 

10 record after opportunity for an agency hearing in ac11 cordance with sections 554, 555, and 556 of title 5, 

12 United States Code. 

13 (c) APPEALS.—An aggrieved person or the Board 

14 may file an appeal of a decision issued under subsection 

15 (b) to the United States Court of Federal Claims. The 

16 appeal of such a decision shall be— 

17 (1) filed within 60 days after the date that the 

18 decision was issued by the administrative law judge; 

19 and 

20 (2) reviewed in accordance with chapter 7 of 

21 title 5, United States Code. 

22 (d) FINAL ORDERS.— 

23 (1) IN GENERAL.—A decision issued under sub24 section (b) shall become a final order of the Board 

25 60 days after the issuance of the decision unless 


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1 within such 60-day period an aggrieved person or 

2 the Board files an appeal of the decision under sub3 section (c). 

4 (2) JUDICIAL REVIEW.—A decision for which 

5 an appeal is not filed within the 60-day period pro6 vided under subsection (c) becomes a final order 

7 that is not subject to judicial review by any court or 

8 tribunal. 

9 (e) BOARD ACTION.—The Board shall, as expedi10 tiously as practicable, make payment to each claimant and 

11 perform other actions that may be required by a final 

12 order issued under subsection (d). 

13 SEC. 510. FIRST MOVER PROJECTS. 

14 (a) PROJECT SELECTION.— 

15 (1) IN GENERAL.—The Secretary shall competi16 tively select 10 carbon capture and geological se17 questration projects as first mover projects in ac18 cordance with the criteria prescribed in paragraph 

19 (2). Each first mover project selected under this 

20 paragraph shall be indemnified from liabilities aris21 ing from the injection of carbon dioxide into the 

22 storage facility in accordance with an agreement exe23 cuted under subsection (b). 

24 (2) ELIGIBILITY CRITERIA.—A carbon capture 

25 and geological sequestration project shall be eligible 


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1 for selection as a first mover project under para2 graph (1) if the project— 

3 (A) demonstrates the commercial applica4 tion of an integrated system for the capture, in5 jection, monitoring, and long term geological 

6 storage of carbon dioxide; 

7 (B) injects at least 1,000,000 tons of car8 bon dioxide each year into a proposed geological 

9 storage site that is capable of long-term storage 

10 of the injected carbon dioxide, as provided 

11 under paragraph (3); 

12 (C) possesses the land or interests in land 

13 necessary for the injection and storage of the 

14 carbon dioxide at the geological storage site; 

15 (D) obtains all necessary permits for the 

16 injection of carbon dioxide into a suitable un17 derground formation and complies with the con18 ditions of any necessary permits that protect 

19 health, environment and safety; and 

20 (E) commits to maintain the financial pro21 tection for remediation and civil claims, as de22 scribed in subsection (b)(2). 

23 (3) PHASED DEVELOPMENT OF PROJECT.—A 

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1 tion requirement of paragraph (2)(B) through a 

2 phased development, so long as— 

3 (A) the Secretary establishes a legally 

4 binding schedule for the phase-in of the project; 

5 and 

6 (B) such schedule requires the project to 

7 achieve an annual injection level of 1,000,000 

8 tons by no later than January 1, 2020. 

9 (b) INDEMNIFICATION AGREEMENTS.— 

10 (1) IN GENERAL.—Notwithstanding section 

11 1341 of title 31, United States Code, but subject to 

12 limitations in appropriation Acts, the Secretary shall 

13 execute indemnification agreements for the 10 first 

14 mover projects that the Secretary has selected under 

15 subsection (a). Each agreement executed under this 

16 paragraph shall indemnify owners and operators of 

17 the first mover project for all or part of the costs 

18 incurred to satisfy remediation and civil claims 

19 (whenever made) that arise from injection of carbon 

20 dioxide into a storage facility, as determined by the 

21 Secretary in accordance with the requirements of 

22 this section. 

23 (2) SCOPE OF INDEMNIFICATION.—The owners 

24 and operators of a first mover project shall maintain 

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1 ceptable to the Secretary. The indemnification au2 thorized under paragraph (1) shall apply to the costs 

3 incurred for remediation and civil claims that are in 

4 excess of the amount of liability covered by financial 

5 protection maintained for the project under para6 graph (1). 

7 (3) CONDITIONS AND REQUIREMENTS.—The 

8 Secretary may impose such conditions on indem9 nification agreements executed under paragraph (1) 

10 as may be necessary or appropriate to protect the fi11 nancial interest of the United States, including a re12 quirement to limit the indemnification provided to 

13 each first mover project under this section during 

14 the stewardship period to the extent that the Sec15 retary determines that potential long-term liabilities 

16 can be adequately addressed through the coverage 

17 provided by the Trust Fund under other provisions 

18 of this title. 

19 (c) CONSOLIDATION OF ENVIRONMENTAL RE20 VIEWS.—In performing environmental reviews that may 

21 apply to an indemnification agreement for a particular 

22 first mover project under subsection (b), the Secretary 

23 shall rely on prior environmental reviews that were per24 formed to assess other major Federal actions relating to 

25 the development or operation of that first mover project 


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1 under 102 of the National Environmental Policy Act of 

2 1969 (42 U.S.C. 4332). 

3 SEC. 511. RELATIONSHIP TO OTHER LAW. 

4 (a) PRIOR TO STEWARDSHIP PERIOD.—This title 

5 does not affect the application of any Federal or State 

6 law to any storage facility for which a regulatory authority 

7 has not issued certificate of completion. 

8 (b) DURING THE STEWARDSHIP PERIOD.—This title 

9 does not affect the application to the Trust Fund, the 

10 Board or any stewardship agency of any Federal or State 

11 environmental law with respect to the injection of carbon 

12 dioxide at any certified post-closure facility. 

13 (c) STATE STEWARDSHIP LAWS.—This title does not 

14 affect the application of any State law related to geologic 

15 sequestration trust funds that may apply to a storage fa16 cility during the operational or post-injection phase prior 

17 to the stewardship period. 

Æ 


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