```

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3591 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Carbon Capture and Sequestration 
Deployment Act of 2010''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

      TITLE I--CARBON CAPTURE AND SEQUESTRATION INNOVATION PROGRAM

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.

      TITLE I--CARBON CAPTURE AND SEQUESTRATION INNOVATION PROGRAM

SEC. 101. PARTNERSHIPS FOR CARBON CAPTURE AND SEQUESTRATION.

    (a) Establishment of Program.--
            (1) In general.--Within 12 months after the date of 
        enactment of this Act, the Secretary of Energy shall establish 
        a cooperative industry-government research and development 
        program, in addition to and in cooperation with the Office of 
        Fossil Energy's carbon capture and sequestration research and 
        development program, to demonstrate novel and innovative 
        technologies--
                    (A) to capture or prevent carbon dioxide emissions 
                from carbon-based fuels;
                    (B) to enable the beneficial use of carbon dioxide; 
                or
                    (C) to enable the long-term storage of carbon 
                dioxide.
            (2) Participation of national laboratories and 
        universities.--The program shall include the participation of 
        the National Energy Technology Laboratory and may include the 
        participation of other National Laboratories, universities, and 
        other appropriate entities.
    (b) Cost Sharing.--For purposes of developing and demonstrating the 
technologies or approaches referred to in subsection (a), the Secretary 
shall provide at least 80 percent of the cost of the development 
projects and the industry participant shall provide not more than 20 
percent of such cost.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section--
            (1) $100,000,000 for each of the fiscal years 2011 through 
        2015;
            (2) $50,000,000 for each of the fiscal years 2016 through 
        2020; and
            (3) $20,000,000 for each of the fiscal years 2021 through 
        2025.

SEC. 102. ANNUAL DEPARTMENT OF ENERGY ASSESSMENT.

    (a) In General.--
            (1) Department of energy report.--Within 1 year after the 
        date of enactment of this Act and annually thereafter until the 
        Secretary of Energy determines that technology preventing the 
        emission of, capturing, transporting, permanently storing or 
        sequestering, or putting to beneficial use carbon dioxide is 
        available to the commercial marketplace, the Department of 
        Energy shall conduct an assessment in accordance with 
        subsection (b) of this section of the existing Federal programs 
        supporting such technology and report to the Secretary and the 
        appropriate authorizing and appropriating committees of the 
        Congress on the results of the assessment.
            (2) Government accountability office review.--Within 1 year 
        after the first report is provided to the Secretary and to the 
        appropriate authorizing and appropriating committees of the 
        Congress under paragraph (1) and subsequently as needed until 
        technology preventing the emission of, capturing, transporting, 
        permanently storing or sequestering, and putting to beneficial 
        use carbon dioxide is available to the commercial marketplace, 
        the Comptroller General shall conduct a review of the report 
        described in paragraph (1) in accordance with subsection (c) of 
        this section.
    (b) Department of Energy Report Requirements.--The Department of 
Energy shall include in the report--
            (1) a detailed description of the existing programs, 
        including each major program area, that conducts or supports 
        research, development, demonstration, and deployment of 
        technology--
                    (A) to prevent the emission of carbon dioxide or 
                capture of carbon dioxide from sources, including 
                fossil fuel-based power plants;
                    (B) to transport carbon dioxide;
                    (C) to store or sequester captured carbon dioxide 
                permanently; or
                    (D) to put captured carbon dioxide to beneficial 
                use;
            (2) an assessment, based upon government laboratory 
        research experience, available industry research experience, 
        and such other data and information as the Department of Energy 
        deems useful and appropriate, to determine whether each major 
        program area and principal projects within these areas are 
        designed to, and will, advance fundamental knowledge or achieve 
        significant technical advancement and materially improve the 
        technology base to effectively address the prevention of carbon 
        dioxide emissions or capture of carbon dioxide or the 
        transport, permanent storage, or beneficial use of captured 
        carbon dioxide; and
            (3) an assessment of the Department of Energy's estimated 
        time frame and costs necessary to reasonably conclude that 
        technology will be available to the commercial marketplace.
    (c) Government Accountability Office Review Requirements.--The 
Government Accountability Office shall include in its review--
            (1) an analysis of the Department of Energy's estimated 
        time frames and costs as reported pursuant to subsection (b)(3) 
        of this section;
            (2) any recommendations that the Comptroller General deems 
        appropriate and useful to improve the likelihood of achieving 
        technological advancements to mitigate carbon dioxide emissions 
        or to expedite the availability of carbon capture and 
        sequestration technology for the commercial marketplace;
            (3) an assessment of any legal or regulatory impediment by 
        any Federal agency or department that has arisen in relation to 
        the deployment of carbon capture and storage technology, 
        including any delays in the permitting of such technology or 
        the construction or operation of any such facility; and
            (4) any other analyses the Government Accountability Office 
        deems necessary or appropriate.
    (d) Budget Request Report.--Beginning with the budget request for 
fiscal year 2012 and for each succeeding fiscal year through 2026, the 
President shall include in his budget request for the Department of 
Energy's Fossil Energy Program a report that--
            (1) assesses the Department's progress in implementing the 
        recommendations of the Government Accountability Office and 
        compares the estimated costs of completing implementation of 
        these recommendations to the requested budget levels; and
            (2) an assessment of the progress made in the preceding 
        fiscal year toward achieving the goals of the program for which 
        funding is requested.

          TITLE II--CARBON CAPTURE AND SEQUESTRATION PROJECTS

   SUBTITLE A--CARBON CAPTURE AND SEQUESTRATION EARLY AND EFFECTIVE 
                     DEPLOYMENT FUNDING ACT OF 2010

SECTION 201. SHORT TITLE.

    (a) Short Title.--This subtitle may be cited as the ``Carbon 
Capture and Sequestration Early and Effective Deployment Fund Act of 
2010'' or the ``CC SEED FUND ACT''.

SEC. 202. DEFINITIONS.

    (a) In General.--In this subtitle:
            (1) Carbon capture.--The term ``carbon capture'' has the 
        meaning given the term in section 963(a) of the Energy Policy 
        Act of 2005 (42 U.S.C. 16293(a)).
            (2) Carbon sequestration.--The term ``carbon 
        sequestration'' has the meaning given the term in section 
        963(a) of the Energy Policy Act of 2005 (42 U.S.C. 16293(a)).
            (3) Council.--The term ``Council'' means the Carbon Capture 
        and Sequestration Program Partnership Council established under 
        section 204(a).
            (4) Electric consumer.--The term ``electric consumer'' has 
        the meaning given that term in section 3 of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2602).
            (5) Electric utility.--The term ``electric utility'' has 
        the meaning given the term in section 3 of the Federal Power 
        Act (16 U.S.C. 796).
            (6) Fossil fuel-based electricity.--The term ``fossil fuel-
        based electricity'' means electricity that is produced, in 
        whole or in part, from a fossil fuel.
            (7) Fossil fuel.--The term ``fossil fuel'' means coal, 
        petroleum, or natural gas, or any derivative of coal, 
        petroleum, or natural gas.
            (8) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            (9) National laboratory.--The term ``National Laboratory'' 
        has the meaning given the term in section 2 of the Energy 
        Policy Act of 2005 (42 U.S.C. 15801).
            (10) Program director.--The term ``Program Director'' means 
        the Program Director of the special funding program appointed 
        under section 204(g).
            (11) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (12) Special funding program.--The term ``special funding 
        program'' means the special funding program for development and 
        deployment of carbon capture, sequestration, and conversion 
        technologies established in accordance with section 203.
            (13) State regulatory authority.--The term ``State 
        regulatory authority'' has the meaning given the term in 
        section 3 of the Public Utility Regulatory Policies Act of 1978 
        (16 U.S.C. 2602).
            (14) United states.--The term ``United States'' means the 
        States of the United States, the District of Columbia, and the 
        territories and possessions of the United States, including the 
        territorial waters of the United States and the exclusive 
        economic zone.
    (b) Modification of Definitions Incorporated by Reference.--Section 
963 of the Energy Policy Act of 2005 (42 U.S.C. 16293) is amended--
            (1) by redesignating subsections (a) through (d) as 
        subsections (b) through (e), respectively;
            (2) by inserting before subsection (b) (as so redesignated) 
        the following:
    ``(a) Definitions.--In this section:
            ``(1) Carbon capture.--The term `carbon capture' means the 
        process of capturing anthropogenic carbon dioxide from a 
        stationary source or carbon dioxide in the ambient air.
            ``(2) Carbon sequestration.--The term `carbon 
        sequestration' means the act of storing carbon dioxide through 
        physical, chemical, or biological processes that can prevent 
        the carbon dioxide from reaching the atmosphere.'';
            (3) in subsection (b) (as so redesignated), by striking 
        ``In General'' and inserting ``Program''; and
            (4) in subsection (c) (as so redesignated), by striking 
        ``subsection (a)'' and inserting ``subsection (b)''.

SEC. 203. SPECIAL FUNDING PROGRAM FOR DEVELOPMENT AND DEPLOYMENT OF 
              CARBON CAPTURE, SEQUESTRATION, AND CONVERSION 
              TECHNOLOGIES.

    (a) Views of State Regulatory Authorities.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, a State regulatory authority shall 
        notify the Secretary in writing of the views of the State 
        regulatory authority on the creation of the special funding 
        program.
            (2) Notice of timeline.--As soon as practicable, but no 
        later than 30 days after the date of enactment of this Act, the 
        Secretary shall notify each State regulatory authority of the 
        need to submit its views to the Secretary under paragraph (1) 
        within 180 days after the date of enactment of this Act.
    (b) Establishment.--The Secretary shall establish the special 
funding program within one year after the date of enactment of this Act 
unless the State regulatory authorities of at least 22 States (treating 
the District of Columbia and Puerto Rico as States for such purpose) 
submit written notices of disapproval by the deadline established under 
subsection (a).
    (c) Termination.--
            (1) Assessments.--The authority of the Secretary to collect 
        assessments shall expire on the date that is 10 years after the 
        date of the establishment of the special funding program.
            (2) Awards.--The authority of the Secretary to make funding 
        awards under this subtitle shall expire on the date that is 15 
        years after the date of the establishment of the special 
        funding program.
    (d) Annual Report.--Not later than February 1 of each year, the 
Secretary shall publish and submit to Congress and each State 
regulatory authority a report that--
            (1) includes an identification and description of all 
        programs and projects undertaken under the special funding 
        program during the previous fiscal year; and
            (2) describes the allocation or planned allocation of 
        resources of the special funding program for each program and 
        project in the current and subsequent fiscal year.

SEC. 204. CARBON CAPTURE AND SEQUESTRATION PROGRAM PARTNERSHIP COUNCIL.

    (a) Establishment.--The Secretary shall establish, and appoint the 
members of, a Carbon Capture and Sequestration Program Partnership 
Council to carry out duties described in subsection (f).
    (b) Voting Membership.--
            (1) Total voting membership; quorum.--The Council shall be 
        composed of not more than 15 voting members. A majority of the 
        voting members shall constitute a quorum for official action of 
        the Council.
            (2) Minimum representation.--The voting membership of the 
        Council shall include at least 1 representative of each of the 
        following:
                    (A) Investor-owned utilities.
                    (B) Utilities owned by a State or unit of local 
                government.
                    (C) Rural electric cooperatives.
                    (D) Fossil fuel producers.
                    (E) Nonprofit organizations.
                    (F) Independent generators or wholesale power 
                providers.
                    (G) Consumer groups.
                    (H) Employee organizations (as defined in section 
                3(4) of the Employee Retirement Income Security Act of 
                1974 (29 U.S.C. 1002(4))).
            (3) Representation of electric utilities.--A majority of 
        the voting membership of the Council shall be representatives 
        of electric utilities selling fossil fuel-based electricity to 
        electric consumers subject to assessment under section 206.
            (4) Nominations.--The Secretary shall appoint the Council 
        members representing entities described in subparagraphs (A), 
        (B), (C), and (F) of paragraph (2) from slates of nominees, 
        containing at least 2 candidates for each vacancy to be filled, 
        submitted by--
                    (A) the Edison Electric Institute, on behalf of 
                investor-owned utilities;
                    (B) the American Public Power Association, on 
                behalf of utilities owned by a State agency or unit of 
                local government;
                    (C) the National Rural Electric Cooperative 
                Association, on behalf of rural electric cooperatives; 
                and
                    (D) the Electric Power Supply Association, on 
                behalf of independent generators or wholesale power 
                providers.
            (5) Recusal.--A voting member of the Council may not 
        participate in the review or approval of an application from an 
        entity with which the voting member is affiliated.
    (c) Nonvoting Membership.--The Secretary shall appoint to the 
Council as nonvoting members--
            (1) the Under Secretary for Science;
            (2) the Assistant Secretary with responsibility for 
        research and development of fossil fuels;
            (3) 3 representatives of State regulatory authorities, 
        chosen to represent each different transmission 
        interconnection, submitted by the National Association of 
        Regulatory Utility Commissioners; and
            (4) such additional officers and employees of the Federal 
        Government as the Secretary determines are necessary for the 
        Council to carry out the functions of the Council effectively.
    (d) Terms.--
            (1) In general.--Except as otherwise provided in this 
        paragraph, a voting member of the Council--
                    (A) shall serve a term of 4 years; and
                    (B) may serve not more than 2 full consecutive 
                terms.
            (2) Unexpired terms.--A member who fills the unexpired term 
        of a voting member may serve not more than a total of 8 
        consecutive years.
            (3) Reappointment of former voting members.--A former 
        voting member of the Council may be reappointed if the member 
        has not been a member of the Council for a period of at least 2 
        years.
            (4) Initial appointment.--The Secretary shall make initial 
        appointments of voting members of the Council for terms of 1, 
        2, 3, and 4 years, staggered to provide for the selection of 3 
        members each year, as determined by the Secretary.
            (5) Vacancies.--A vacancy on the Council--
                    (A) shall not affect the powers of the Council; and
                    (B) shall be filled in the same manner as the 
                original appointment was made.
    (e) Personnel Matters.--
            (1) Compensation.--
                    (A) Non-federal employees.--A member of the Council 
                who is not an officer or employee of the Federal 
                Government may be compensated at a rate equal to the 
                daily equivalent of the annual rate of basic pay 
                prescribed for level IV of the Executive Schedule under 
                section 5315 of title 5, United States Code, for each 
                day (including travel time) during which the member is 
                engaged in the performance of the duties of the 
                Council.
                    (B) Federal employees.--A member of the Council who 
                is an officer or employee of the Federal Government 
                shall serve without compensation in addition to the 
                compensation received for the services of the member as 
                an officer or employee of the Federal Government.
            (2) Travel expenses.--A member of the Council shall be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for an employee of an agency 
        under subchapter I of chapter 57 of title 5, United States 
        Code, while away from the home or regular place of business of 
        the member in the performance of the duties of the Council.
            (3) Chair.--The Secretary shall appoint a voting member of 
        the Council to serve as the Chair of the Council.
            (4) Executive secretary.--The Secretary shall appoint an 
        Executive Secretary in the Department of Energy to assist the 
        Council in the conduct of the duties of the Council.
    (f) Council Duties.--The Council shall--
            (1) advise, assist, consult with, and make recommendations 
        to the Secretary and the Program Director on matters related to 
        the activities carried out by and through the special funding 
        program;
            (2)(A) review applications for grants, contracts, 
        cooperative agreements, and other transactions for which the 
        approval of the Council is required under section 5(b); and
            (B) vote on whether to recommend for approval the 
        applications;
            (3) review and make recommendations on any intellectual 
        property policies required to advance the purposes of the 
        special funding program and to encourage individual ingenuity 
        and innovation, and ensure that inventors, whose contributions 
        to the development of clean coal technology are not subject to 
        the protections afforded by section 14 of the Stevenson-Wydler 
        Technology Innovation Act of 1980 (15 U.S.C. 3710c), are 
        provided protection of their intellectual property rights that 
        is not less than that afforded to inventors provided protection 
        under section 14 of that Act;
            (4) collect information on projects being carried out by 
        other programs to advance the development and deployment of 
        technologies for carbon capture, sequestration, and conversion;
            (5)(A) approve an annual overall plan for the special 
        funding program and projects to be carried out under the 
        special funding program; and
            (B) submit to Congress, the Secretary, and each State 
        regulatory authority a copy of the plan; and
            (6) meet at least 3 times each year, at the call of the 
        Chair or on the request of the Program Director, at a location 
        subject to the approval of the Program Director.
    (g) Program Director and Senior Program Managers.--
            (1) Appointment.--The Secretary, in consultation with the 
        Council, shall appoint a Program Director for the special 
        funding program, who shall--
                    (A) have a background and qualifications especially 
                appropriate to managing the special funding program; 
                and
                    (B) report directly to the Secretary.
            (2) Compensation.--The rate of pay for the Program Director 
        shall not exceed the rate payable for level V of the Executive 
        Schedule under section 5316 of title 5, United States Code.
            (3) Senior program managers.--
                    (A) In general.--Notwithstanding sections 3304 and 
                3309 through 3318 of title 5, United States Code, the 
                Program Director may recruit and directly appoint up to 
                5 highly qualified scientists, engineers, or critical 
                technical personnel into the competitive service, to 
                help manage the special funding program.
                    (B) Exception.--The authority granted by 
                subparagraph (A) shall not apply to positions in the 
                excepted service or the Senior Executive Service.
                    (C) Requirements.--In exercising the authority 
                granted by subparagraph (A), the Secretary shall ensure 
                that any action taken by the Secretary--
                            (i) is consistent with the merit principles 
                        of section 2301 of title 5, United States Code; 
                        and
                            (ii) complies with the public notice 
                        requirements of section 3327 of title 5, United 
                        States Code.
    (h) Technical Advisory Committee.--
            (1) In general.--The Secretary, acting through the Program 
        Director, and in consultation with the Council, shall appoint a 
        technical advisory committee to provide independent scientific 
        review of applications for grants, contracts, cooperative 
        agreements, and other transactions to be funded under the 
        special funding program.
            (2) Membership.--The technical advisory committee shall be 
        composed of not less than 7 members appointed from among--
                    (A) institutions of higher education;
                    (B) National Laboratories;
                    (C) independent research institutions;
                    (D) the National Energy Technology Laboratory; and
                    (E) other qualified institutions;
            (3) Conflicts of interest.--Members of the technical 
        advisory committee may not be affiliated with, or employed by, 
        any organization represented by voting members of the Council.
            (4) Duties.--
                    (A) Peer review.--The technical advisory committee 
                shall provide independent assessments and technical 
                evaluations, and make recommendations to the Council, 
                on all applications for funding under the special 
                funding program.
                    (B) Programmatic assessments.--
                            (i) In general.--The technical advisory 
                        committee may provide an independent review of 
                        other technical matters relating to the special 
                        funding program, including--
                                    (I) approaches to prioritizing 
                                technologies;
                                    (II) appropriateness of engineering 
                                techniques;
                                    (III) monitoring and verification 
                                technologies for sequestration;
                                    (IV) geological site selection; and
                                    (V) cost control measures for 
                                projects.
                            (ii) Recommendations.--The technical 
                        advisory committee may make recommendations to 
                        the Secretary concerning the types of 
                        investments, scientific research, or 
                        engineering practices that would best further 
                        the purposes of this subtitle.
                    (C) Public availability.--Except for information 
                exempt from disclosure under paragraphs (4) and (6) of 
                section 552(b) of title 5, United States Code, all 
                reports and evaluations made by the technical advisory 
                committee shall be made available to the public when 
                the reports and evaluations are received by the 
                Council.
            (5) Travel expenses.--A member of the technical advisory 
        committee shall be allowed travel expenses, including per diem 
        in lieu of subsistence, at rates authorized for an employee of 
        an agency under subchapter I of chapter 57 of title 5, United 
        States Code, while away from the home or regular place of 
        business of the member in the performance of the duties of the 
        committee.

SEC. 205. FUNCTIONS AND ADMINISTRATION OF THE SPECIAL FUNDING PROGRAM.

    (a) In General.--The special funding program shall support projects 
to accelerate the commercial availability of carbon capture and 
sequestration technologies and methods, including technologies that 
capture and sequester, or capture and convert, carbon dioxide. In 
making awards under the program, the Program Director shall give 
priority to projects that include cost sharing, although cost sharing 
is not mandatory.
    (b) Project Approval.--The Program Director shall make awards for 
grants, contracts, cooperative agreements, and other transactions under 
this subtitle only if the award is--
            (1) recommended to the Council by the technical advisory 
        committee established under section 204(h), after scientific 
        and technical peer review;
            (2) approved by the voting members of the Council;
            (3) for a project to be carried out in the United States; 
        and
            (4) prioritized in regions of the country with a high 
        probability of carbon capture and sequestration development and 
        deployment potential.
    (c) Specific Purposes.--In making awards, the Program Director 
shall ensure, to the maximum extent practicable, that grants, 
contracts, cooperative agreements, and other transactions funded under 
the special funding program support demonstrations of carbon capture 
and sequestration technology projects that--
            (1) are capable of advancing the technologies to commercial 
        readiness;
            (2) encompass each of the different coal types and other 
        fossil fuel varieties;
            (3) are geographically diverse;
            (4) involve diverse sequestration media;
            (5) employ capture and sequestration, or capture and 
        conversion, technologies potentially suitable for new or 
        retrofit applications; and
            (6) result in a capture of emissions from the generation of 
        at least 10 gigawatts.
    (d) Eligible Entities.--Entities eligible for funding under this 
subtitle include--
            (1) electric utilities selling fossil fuel-based 
        electricity;
            (2) institutions of higher education;
            (3) National Laboratories;
            (4) Federal research agencies;
            (5) State research agencies;
            (6) nonprofit organizations; and
            (7) consortiums of 2 or more entities described in 
        paragraphs (1) through (6).
    (e) Purchase of Carbon Dioxide.--A grant, contract, cooperative 
agreement, or other transaction under this subtitle may be used--
            (1) in the case of established projects that are 
        sequestering carbon dioxide emissions, to purchase carbon 
        dioxide if necessary to conduct tests of carbon sequestration 
        sites; or
            (2) for other purposes consistent with this subtitle.
    (f) Organization of Funding Into Tranches.--
            (1) In general.--The Program Director, with the approval of 
        the Council and the Secretary, may divide available funds into 
        a series of tranches, each supporting the deployment of a 
        specified quantity of electric generating capacity using carbon 
        capture, sequestration, or conversion technologies.
            (2) Form of funding.--If the Program Director, the Council, 
        and the Secretary agree to distribute funds by tranche under 
        this subsection, the Program Director shall distribute funds to 
        eligible projects through grants, contracts, cooperative 
        agreements, and other transactions under this subtitle in a 
        manner that--
                    (A) provides higher funding for projects that are 
                designed to achieve higher levels of capture and 
                sequestration or capture and conversion;
                    (B) takes into account the projected cost of 
                electricity to capture carbon dioxide emissions from 
                the project;
                    (C) decreases the funding available for projects in 
                successive tranches; and
                    (D) defrays the reasonable incremental capital and 
                operating costs associated with implementation of the 
                carbon capture and sequestration or carbon capture and 
                conversion technologies.
    (g) Wage Rate Assurances.--
            (1) In general.--The Program Director shall require 
        recipients of awards under this subtitle to provide assurances 
        that all laborers and mechanics employed by contractors and 
        subcontractors in the construction, repair, or alteration of 
        new or existing facilities performed in order to carry out a 
        development or deployment activity authorized under this 
        subtitle shall be paid wages at rates not less than those 
        prevailing on similar construction in the locality, as 
        determined by the Secretary of Labor in accordance with 
        subchapter IV of chapter 31 of title 40, United States Code.
            (2) Authority and functions.--With respect to the labor 
        standards in this subsection, the Secretary of Labor shall have 
        the authority and functions set forth in Reorganization Plan 
        Numbered 14 of 1950 (15 Fed. Reg. 3176; 5 U.S.C. Appendix) and 
        section 3145 of title 40, United States Code.
    (h) Relation to Existing Authorities.--Projects funded under this 
subtitle to inject carbon dioxide into geological formations shall be 
carried out in accordance with this subtitle and section 963 of the 
Energy Policy Act of 2005 (42 U.S.C. 16293) and related provisions of 
that Act.
    (i) Restrictions on Funding.--
            (1) No small-scale projects.--A pilot-scale project, or 
        similar small-scale project, under 100 megawatts, shall not be 
        eligible for support under the special funding program.
            (2) Dedication of funds.--Except as provided in subsection 
        (j), the special funding program shall use all funds derived 
        from assessments under section 6 to fund grants, contracts, 
        cooperative agreements, and other transactions under this 
        subtitle.
    (j) Administrative Expenses.--Not more than 5 percent of the funds 
collected for any fiscal year under section 6 may be used for the 
administrative expenses of carrying out the special funding program.

SEC. 206. ASSESSMENTS AND FUNDING.

    (a) Amount.--
            (1) In general.--For each fiscal year following the 
        establishment of the special funding program, the Secretary 
        shall collect an assessment on electric utilities for all 
        fossil fuel-based electricity sold to electric consumers, as 
        determined under section 208.
            (2) Fuel type rate.--The assessments described in paragraph 
        (1) shall--
                    (A) reflect the relative carbon dioxide emission 
                rates of different fossil fuel-based electricity; and
                    (B) initially shall be not less than the following 
                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.
 

            (3) Adjustments.--The Secretary may adjust the amount of 
        assessments on fossil fuel-based electricity to reflect changes 
        in the expected quantities of the electricity from different 
        fuel types so that the assessments generate not less than 
        $2,000,000,000 and not more than $2,100,000,000 for each fiscal 
        year.
    (b) Treatment of Assessments.--
            (1) General rule.--Notwithstanding section 3302 of title 
        31, United States Code, all amounts collected by the Secretary 
        under this section shall--
                    (A) be credited as offsetting collections to carry 
                out activities authorized under section 205;
                    (B) be available for expenditure only to pay the 
                costs of carrying out the activities authorized under 
                section 205;
                    (C) be available only to the extent provided for in 
                advance in an appropriations Act; and
                    (D) remain available until expended.
            (2) Exception.--Notwithstanding paragraph (1), the 
        Secretary shall determine by April 1 of each fiscal year 
        whether an appropriations Act has appropriated the total amount 
        of actual fees collected in advance of that fiscal year by the 
        Secretary under this section. If the amounts specified under 
        this paragraph for that fiscal year have not been appropriated 
        by such date for expenditure to carry out activities under 
        section 205, then such amounts shall be immediately available 
        for such expenditure by the Board without fiscal year 
        limitations and without further appropriations.
    (c) Fee Title.--The Secretary may vest fee title or other property 
interests acquired under projects conducted under this subtitle in any 
entity, including the United States.
    (d) Data Protection.--For a period not exceeding 5 years after 
completion of the operations phase of a grant, contract, cooperative 
agreement, or other transaction under this subtitle the Secretary may 
provide appropriate protections (including exemptions from subchapter 
II of chapter 5 of title 5, United States Code) against the 
dissemination of information that--
            (1) results from demonstration activities carried out under 
        this subtitle; and
            (2) would be a trade secret or commercial or financial 
        information that is privileged or confidential if the 
        information had been obtained from and first produced by a non-
        Federal party participating in the project.
    (e) Reversion of Unused Funds.--Effective beginning on the date 
that is 7 years after the establishment of the special funding program, 
if the Secretary, acting through the Program Director, does not 
obligate at least 75 percent of the available proceeds of the assessed 
fees for any fiscal year due to an absence of qualified projects or 
similar circumstances, the Secretary, without further appropriation, 
shall reimburse the remaining unobligated balance of the fees, less 
administrative and other expenses authorized by this subtitle, to the 
electric utilities on which the fees were assessed, in proportion to 
the collected assessments of the electric utilities.

SEC. 207. ERCOT.

    (a) Definitions.--In this section:
            (1) ERCOT.--The term ``ERCOT'' means the Electric 
        Reliability Council of Texas.
            (2) Load-serving entity.--The term ``load-serving entity'' 
        has the meaning given the term in ERCOT Protocols in effect on 
        the date of enactment of this Act.
            (3) Qualified scheduling entity.--The term ``qualified 
        scheduling entity'' has the meaning given the term in ERCOT 
        Protocols in effect on the date of enactment of this Act.
            (4) Renewable energy credit.--The term ``renewable energy 
        credit'' has the meaning given the term by the Public Utility 
        Commission of Texas pursuant to section 39.904(b) of the State 
        of Texas's Public Utility Regulatory Act of 1999 as in effect 
        on the date of enactment of this Act.
    (b) Assessment, Collection, and Remittance.--
            (1) In general.--Notwithstanding any other provision of 
        this subtitle, within ERCOT, the assessment required under 
        section 206 shall be--
                    (A) levied directly on qualified scheduling 
                entities, or successor entities of the qualified 
                scheduling entities;
                    (B) charged in an amount that is consistent with 
                other charges imposed on qualified scheduling entities 
                as a fee on energy used by the load-serving entities; 
                and
                    (C) collected and remitted by ERCOT to the 
                Secretary in the amounts and in the same manner as 
                described in section 205.
            (2) Requirements.--The assessment amounts referred to in 
        paragraph (1) shall--
                    (A) be determined by the quantity and types of 
                fossil fuel-based electricity delivered directly to all 
                electric consumers in the prior calendar year beginning 
                with the year ending immediately prior to the beginning 
                of the period described in section 203(c); and
                    (B) take into account the number of renewable 
                energy credits retired by the load-serving entities 
                represented by a qualified scheduling entity within the 
                prior calendar year.
    (c) Administration Expenses.--Not more than 1 percent of the funds 
collected for any fiscal year by ERCOT under this section may be used 
for the administrative expenses incurred in the determination, 
collection, and remittance of the assessments to the Secretary.
    (d) Audit.--ERCOT shall submit to the Secretary a copy of the 
annual audit of ERCOT relating to the administration of this section.

SEC. 208. DETERMINATION OF FOSSIL FUEL-BASED ELECTRICITY DELIVERIES.

    (a) Findings.--Congress finds that--
            (1) the assessments under section 206 are to be collected 
        based on the quantity of fossil fuel-based electricity sold by 
        each electric utility to electric consumers;
            (2) because many electric utilities purchase all or part of 
        the electricity needed by the electric consumers of the 
        utilities from other entities, it may not be practicable to 
        determine the precise fuel mix for the power sold by each 
        individual electric utility; and
            (3) it may be necessary to use average data, often on a 
        regional basis with reference to Regional Transmission 
        Organization or North American Electric Reliability Corporation 
        regions, to make the determinations necessary for making the 
        assessments.
    (b) Proposed Regulation.--
            (1) In general.--The Secretary, in consultation with the 
        Energy Information Administration, shall issue for notice and 
        comment a proposed regulation to determine the level and type 
        of fossil fuel-based electricity delivered to electric 
        consumers by each electric utility in the United States during 
        the most recent calendar year or other period determined by the 
        Secretary to be most appropriate.
            (2) Balancing.--The proposed regulation shall balance the 
        need to be efficient, reasonably precise and timely, taking 
        into account the nature and cost of data currently available 
        and the nature of markets and regulations in effect in various 
        regions of the United States.
            (3) Varying methodologies.--The Secretary may apply 
        different methodologies in different regions of the United 
        States if appropriate to obtain the best balance of factors 
        described in paragraph (2).
    (c) Final Regulation.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, and after opportunity for comment, the 
        Secretary shall promulgate a final regulation under this 
        section for determining the level and type of fossil fuel-based 
        electricity delivered to electric consumers by each electric 
        utility in the United States during the appropriate period, as 
        determined by the Secretary.
            (2) New data sources.--In promulgating the final 
        regulation, the Secretary may--
                    (A) consider opportunities and costs to develop new 
                data sources in the future; and
                    (B) issue recommendations for the Energy 
                Information Administration or other agencies to collect 
                the data.
            (3) Updates.--After notice and opportunity for comment, the 
        Secretary may, by regulation, update and modify the methodology 
        for making determinations under this section.
    (d) Annual Determinations.--
            (1) In general.--In accordance with the final regulation 
        promulgated under subsection (c), the Secretary shall--
                    (A) make annual determinations of the quantities 
                and types for each electric utility; and
                    (B) publish the determinations in the Federal 
                Register.
            (2) Use.--Determinations described in paragraph (1) shall 
        be used--
                    (A) to conduct the referendum under section 203(a); 
                and
                    (B) by the Secretary in applying any assessment 
                under this subtitle.
    (e) Rehearing and Judicial Review.--
            (1) In general.--The owner or operator of any electric 
        utility that believes that the Secretary has misapplied the 
        methodology in the final regulation in determining the quantity 
        and types of fossil fuel-based electricity delivered by the 
        electric utility may seek a rehearing of the determination not 
        later than 30 days after publication of the determination in 
        the Federal Register.
            (2) Deadline.--Not later than 30 days after a rehearing 
        petition is formally requested, the Secretary shall rule on the 
        rehearing petition.
            (3) Judicial review.--A determination of the Secretary 
        under paragraph (2) shall be final and subject to judicial 
        review in the United States Court of Appeals for the District 
        of Columbia Circuit.

SEC. 209. COMPLIANCE WITH ASSESSMENTS.

    (a) In General.--The Secretary may bring an action in the 
appropriate court of the United States to compel compliance with an 
assessment levied by the Secretary under this subtitle.
    (b) Payment.--A successful action for compliance under this section 
may require payment by the defendant of the costs incurred by the 
Secretary in bringing the action.

SEC. 210. MIDCOURSE REVIEW.

    Not later than 5 years after the establishment of the special 
funding program, the Comptroller General of the United States shall 
submit to Congress a report that--
            (1) evaluates the activities of the special funding 
        program, including--
                    (A) project selection and methods of disbursement 
                of assessed fees;
                    (B) impacts on the prospects for commercialization 
                of carbon capture and sequestration technologies; and
                    (C) the extent to which assessed fees support the 
                qualified projects received by the Secretary; and
            (2) makes such recommendations as the Comptroller General 
        of the United States considers to be appropriate in each of 
        those areas.

SEC. 211. RECOVERY OF COSTS.

    (a) In General.--An electric utility, the transmission, delivery, 
or sales of electric energy of which are subject to any form of rate 
regulation, may not be denied an opportunity to recover the full amount 
of the prudently incurred costs associated with complying with this 
subtitle, consistent with applicable State or Federal law.
    (b) Ratepayer Rebates.--Regulatory authorities that approve cost 
recovery pursuant to subsection (a) may order rebates to ratepayers to 
the extent that electric utilities selling fossil fuel-based 
electricity to electric consumers are reimbursed undedicated or 
unassigned balances in accordance with section 206(c).

       SUBTITLE B--SEQUESTRATION TAX CREDIT; CAPACITY INCENTIVES

SEC. 251. CARBON SEQUESTRATION TAX CREDIT AMENDMENTS.

    (a) In General.--Section 45Q of the Internal Revenue Code of 1986 
is amended--
            (1) by inserting ``or converted to a stable form in which 
        it is securely and permanently sequestered'' after ``secure 
        geological storage'' in subparagraph (B) of section 45Q(a)(1);
            (2) by striking subsection (a)(2) an inserting the 
        following:
            ``(2) $10 per metric ton of qualified carbon dioxide which 
        is captured at a qualified facility and used as a tertiary 
        injectant in a qualified enhanced oil or natural gas recovery 
        project, and
                    ``(A) disposed of in secure geologic storage, or
                    ``(B) converted to a stable form to enable 
                permanent sequestration, including the beneficial use 
                of such converted carbon dioxide.'';
            (3) by striking the words ``by the taxpayer'' each place 
        they appear in subsection (a);
            (4) by striking ``would otherwise'' in subsection (b)(1)(A) 
        and inserting ``would, but for the capture and use or 
        sequestration,'';
            (5) by striking paragraph (1) of subsection (c) and 
        redesignating paragraphs (2) and (3) as paragraphs (1) and (2), 
        respectively;
            (6) by striking paragraph (5) of subsection (d) and 
        inserting the following:
            ``(5) Credit attributable to taxpayer.--Any credit under 
        this section shall be attributable to the person that captures 
        the qualified carbon dioxide, except to the extent provided in 
        regulations prescribed by the Secretary.'';
            (7) by adding at the end of subsection (d) the following:
            ``(8) Placed in service.--Carbon capture equipment is 
        placed in service on the date qualified carbon dioxide is first 
        captured at a qualified facility and either--
                    ``(A) injected in secure geologic storage or 
                converted to a stable form, or
                    ``(B) used as an injectant in a qualified enhanced 
                hydrocarbon recovery project or converted to a stable 
                form.
            ``(9) Transferability of credit.--The credit under this 
        section may be transferred to any other person by the person to 
        which the credit is attributable.'';
            (8) by striking subsection (e) and inserting the following:
    ``(e) Application of section.--The credit under this section shall 
apply with respect to qualified carbon dioxide captured at a qualified 
facility at which carbon capture equipment is placed in service prior 
to January 1, 2019. The taxpayer may claim the credit for a 10-year 
period commencing with the date the carbon capture equipment is placed 
in service.''; and
            (9) by inserting ``or conversion to a stable form'' after 
        ``geological storage'' in subsection (d)(2).
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to carbon dioxide captured after the date of enactment of this 
Act.

SEC. 252. FEDERAL FINANCIAL INCENTIVES FOR ADDITIONAL 10 GW OF 
              CAPACITY.

    (a) Additional Authorization.--Section 1704 of the Energy Policy 
Act of 2005 (42 U.S.C. 16514) is amended--
            (1) by adding the following at the end of subsection (a): 
        ``In addition to other amounts made available under this 
        section, there are authorized $20,000,000,000 to be used only 
        for guarantees under this title for--
            ``(1) the construction of new commercial scale electric 
        generation units, or industrial facility units, that are 
        eligible units utilizing carbon capture and sequestration 
        technology;
            ``(2) the retrofit of existing commercial scale electric 
        generation units, or industrial facility units, that are 
        eligible units providing for carbon capture and sequestration; 
        and
            ``(3) the construction of carbon dioxide transmission 
        pipelines to transport carbon dioxide to sequestration sites or 
        to sites where such carbon dioxide will be used for hydrocarbon 
        recovery.''; and
            (2) by adding at the end thereof the following:
    ``(c) Definitions.--In this section:
            ``(1) Commercial scale.--The term `commercial scale' means, 
        with respect to an electric generation unit, that the unit is 
        designed to generate and sell electric power directly to 
        consumers, or for resale, with a carbon dioxide capture system 
        having a useful life of at least 15 years.
            ``(2) Permanent geologic storage site.--The term `permanent 
        geologic storage site' means a site that the Secretary 
        determines is capable of storing carbon dioxide in saline or 
        other deep geologic storage structures.
            ``(3) Eligible unit.--The term `eligible unit' means an 
        electric generation unit or industrial facility unit located in 
        the United States that--
                    ``(A) uses coal or petroleum coke for at least 75 
                percent of the fuel used by the unit;
                    ``(B) uses carbon capture technology to treat at 
                least--
                            ``(i) 20 percent of the carbon dioxide 
                        emissions of the unit; or
                            ``(ii) an amount of carbon dioxide 
                        emissions that is attributable to 200 megawatts 
                        of the total nameplate generating capacity of 
                        the unit;
                    ``(C) captures at least 80 percent of the carbon 
                dioxide emissions from the treated emissions of the 
                unit;
                    ``(D) transports such captured carbon dioxide to a 
                permanent geologic storage site in the United States or 
                to a site on the North American continent for use for 
                hydrocarbon recovery;
                    ``(E) provides for the permanent storage of such 
                carbon dioxide in such site; and
                    ``(F) has been approved by the Secretary as 
                eligible under this subsection.
    ``(d) Eligible Units.--
            ``(1) Certification.--No unit shall be an eligible unit 
        under subsection (c) unless the Secretary has certified such 
        unit as meeting the requirements of such subsection (c) 
        pursuant to a certification process established by the 
        Secretary by rule.
            ``(2) Limitation.--The Secretary may certify eligible units 
        under this subsection which total in the aggregate no more than 
        10 gigawatts of treated generating capacity, of which not more 
        than the equivalent of 5 gigawatts of capacity may be for 
        industrial units. For purposes of determining equivalency under 
        this subsection, an industrial unit with uncontrolled carbon 
        dioxide emissions equal to the uncontrolled carbon dioxide 
        emissions of a 500 megawatt electric generation unit shall be 
        treated as having installed capacity equivalent to such 500 
        megawatt unit.''.
    (b) Tax Credits.--
            (1) In general.--Subpart E of part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 is amended by 
        adding at the end thereof the following:

``SEC. 48E. PIONEER CCS FACILITIES.

    ``(a) Additional Qualifying Advanced Coal Project Credit.--For 
purposes of section 46, the qualifying advanced coal project credit for 
any taxable year shall also include an additional amount equal to 30 
percent of the incremental cost for carbon capture and sequestration 
systems for eligible units, determined as follows:
            ``(1) For an eligible unit that is a new electric 
        generation unit, the incremental costs shall be the amount by 
        which the costs incurred by the taxpayer for the unit exceed 
        the costs of construction of a comparable supercritical 
        pulverized coal unit without carbon capture and sequestration 
        technology. To establish incremental costs, the taxpayer shall 
        obtain a certified report of a qualified independent engineer 
        estimating the differential construction cost between the 
        eligible unit and a comparably-sized supercritical pulverized 
        coal unit without carbon capture and sequestration. The 
        independent engineer shall utilize cost estimates for 
        supercritical pulverized coal units available from Federal 
        agencies, academia and/or the private sector, appropriately 
        adjusted for size, fuel source and location. An engineering 
        design of a hypothetical supercritical pulverized coal unit 
        shall not be required to establish the incremental costs.
            ``(2) For an eligible unit that is a new industrial unit, 
        the incremental costs shall be the amount by which the costs 
        incurred by the taxpayer for the unit exceed the costs of 
        construction of a comparable industrial unit without carbon 
        capture and sequestration.
            ``(3) For an eligible unit that retrofits a carbon capture, 
        transportation, and sequestration system on an existing 
        generation or industrial unit, the incremental cost shall be 
        the construction costs incurred by the taxpayer for the carbon 
        capture and sequestration system.
     ``(b) Definitions.--For purposes of this section, the term 
`eligible unit' means an electric generation unit or industrial 
facility unit located in the United States that--
            ``(A) uses coal or petroleum coke for at least 75 percent 
        of the fuel used by the unit;
            ``(B) uses carbon capture technology to treat at least--
                    ``(i) 20 percent of the carbon dioxide emissions of 
                the unit; or
                    ``(ii) an amount of carbon dioxide emissions that 
                is attributable to 200 megawatts of the total nameplate 
                generating capacity of the unit;
            ``(C) captures at least 80 percent of the carbon dioxide 
        emissions from the treated emissions of the unit;
            ``(D) transports such captured carbon dioxide to a 
        permanent geologic storage site in the United States or to a 
        site on the North American continent for use for hydrocarbon 
        recovery; and
            ``(E) provides for the permanent storage of such carbon 
        dioxide in such site.
    ``(c) Election.--No costs for which a credit has been provided 
under section 48A or section 48B shall be eligible for a credit under 
this section.''.
            (2) Clerical amendment.--The table of contents for such 
        subpart E is amended by adding at the end thereof the 
        following:

``48E. Pioneer CCS facilities.''.
            (3) Effective Date.--The amendments made by this subsection 
        shall apply with respect to--
                    (A) new facilities placed in service after December 
                31, 2010, and before January 1, 2025; and
                    (B) the retrofit of existing facilities that 
                commence operation with such retrofit after December 
                31, 2010, and before January 1, 2025.

      TITLE III--62 GW EARLY ADOPTER PROGRAM; SEQUESTRATION BONDS

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

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
thereof the following:

``SEC. 45S. CREDIT FOR EARLY ADOPTION OF CCS.

    ``(a) Early Adoption Credit.--For purposes of section 38, the 
carbon dioxide sequestration credit for any taxable year shall be the 
amount set forth in subsection (b), in the case of certified new or 
retrofit electric utility units or certified new or retrofit industrial 
units in providing for carbon capture and sequestration in secure 
geologic storage, adjusted as provided in subsection (c).
    ``(b) Determination of Amount.--
            ``(1) 65 percent capture rate.--Except as provided in 
        paragraph (2) and adjusted in subsection (c), the amount of the 
        credit under subsection (a) shall be $67 per ton of carbon 
        dioxide captured and sequestered in the case of a certified new 
        or retrofit electric utility unit or a certified new or 
        retrofit industrial unit that--
                    ``(A) is placed in service before January 1, 2025, 
                and
                    ``(B) captures and sequesters at least 65 percent 
                of the carbon dioxide emissions in the treated portion 
                of the flue gas or fuel gas stream.
            ``(2) Higher capture rate.--The amount of credit provided 
        under paragraph (1) shall be increased by $1.15 per ton for 
        each percent of additional carbon dioxide emissions captured 
        and sequestered above such 65 percent capture rate, up to a 
        maximum credit of $96 per ton for a capture and sequestration 
        rate of 90 percent or more.
    ``(c) Adjustment for Later Commencement.--The amount of the credit 
determined under subsection (b) shall be reduced by $1 per ton of 
carbon dioxide for each year after the calendar year 2024 in which the 
carbon capture and sequestration equipment is placed in service.
    ``(d) Placed in Service.--For purposes of this section, the term 
`placed in service' with respect to a certified new or retrofit 
electric utility unit or a certified new or retrofit industrial unit is 
the date on which such unit first captures and sequesters carbon 
dioxide in secure geologic storage.
    ``(e) Certification of 62 GW.--No credit shall be allowed under 
this section unless the electric utility unit or industrial unit with 
respect to which a credit is applied has been certified by the 
Secretary. Upon application of any taxpayer for certification under 
this section, the Secretary shall certify the unit in accordance with 
the certification program under subsection (g).
    ``(f) Limitation.--The Secretary shall certify eligible new or 
retrofit units under this subsection which total in the aggregate no 
more than 62 gigawatts of treated generating capacity, of which not 
more than 10 percent of this capacity may be for industrial units. For 
purposes of determining gigawatt equivalency under this subsection, 6 
million metric tonnes per year of captured and sequestered carbon 
dioxide emissions from industrial units shall be treated as having the 
capacity equivalent of 1 gigawatt of treated generating capacity.
    ``(g) Certification Program.--
            ``(1) The Secretary shall establish a program for the 
        certification of new or retrofit electric units and new or 
        retrofit industrial units utilizing carbon capture and 
        sequestration technology eligible to apply for a credit under 
        this section. A facility shall be certified only if the owner 
        or operator of the unit--
                    ``(A) specifies the capacity of the unit subject to 
                carbon capture and sequestration, and
                    ``(B) commits to place the unit, or equipment in 
                the case of a retrofit, in service within 7 years after 
                the date of the certification and to comply with such 
                interim development milestones (including the issuance 
                of all necessary Federal, State, and local permits) as 
                the Secretary shall, by rule, prescribe.
            ``(2) Failure to comply with the 7-year date set forth in 
        this subsection or with any significant milestone or other 
        requirement established by the Secretary under paragraph (1) 
        shall result in the termination of the certification. The 7-
        year date shall be extended by the period of any delay caused 
        by challenges or litigation related to permits required for the 
        facility. No unit for which a certification has been terminated 
        shall be eligible for a new certification under this section.
    ``(h) Application of Section.--The credit under this section shall 
apply to carbon dioxide captured and sequestered in secure geologic 
storage from a certified new or retrofit electric utility unit or from 
a certified new or retrofit industrial unit. The taxpayer may claim the 
credit for a 10-year period commencing on the date the unit is placed 
in service.
    ``(i) Other Credits.--Carbon dioxide from equipment for which 
carbon dioxide storage credit has been allowed under section 45Q or an 
investment credit has been allowed under section 48E shall not be 
eligible for a credit under this section.
    ``(j) Definitions.--In this section:
            ``(1) Retrofit.--The term `retrofit' means the application 
        of carbon capture and sequestration technology to an existing 
        unit, provided that such technology treats at least--
                    ``(A) 20 percent of the carbon dioxide emissions of 
                the unit; or
                    ``(B) an amount of carbon dioxide emissions that is 
                attributable to 200 megawatts of the total nameplate 
                generating capacity (or, in the case of an industrial 
                unit, an equivalent capacity).
            (2) Industrial unit.--The term `industrial unit' means a 
        unit that--
                    ``(A) is not a qualifying electric generating unit;
                    ``(B) uses coal or petroleum coke for at least 75 
                percent of the fuel used by the unit; and
                    ``(C) absent carbon capture and sequestration, 
                would emit greater than 500,000 tons per year of carbon 
                dioxide.
            ``(3) Treated generating capacity.--The term `treated 
        generating capacity' means the portion of the total generating 
        capacity of an electric generating unit (or, in the case of an 
        industrial unit, an equivalent capacity) for which the flue gas 
        or fuel gas is treated by carbon capture and sequestration 
        technology.''.
    (b) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end thereof the following:

``45S. Credit for early adoption of CCS.''.

SEC. 302. CARBON SEQUESTRATION BONDS.

    (a) In General.--Part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subpart:

                ``Subpart K--Carbon Sequestration Bonds

``Sec. 54BB. Carbon Sequestration bonds.

``SEC. 54BB. CARBON SEQUESTRATION BONDS.

    ``(a) In General.--If a taxpayer holds a carbon sequestration bond 
on one or more interest payment dates of the bond during any taxable 
year, there shall be allowed as a credit against the tax imposed by 
this chapter for the taxable year an amount equal to the sum of the 
credits determined under subsection (b) with respect to such dates.
    ``(b) Amount of Credit.--The amount of the credit determined under 
this subsection with respect to any interest payment date for a carbon 
sequestration bond is 70 percent of the amount of interest payable by 
the issuer with respect to such date.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than subpart C and this subpart).
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed by 
        paragraph (1) for such taxable year, such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year 
        (determined before the application of paragraph (1) for such 
        succeeding taxable year).
    ``(d) Carbon Sequestration Bond.--
            ``(1) In general.--For purposes of this section, the term 
        `carbon sequestration bond' means any obligation issued as part 
        of an issue if--
                    ``(A) 95 percent of the available project proceeds 
                (as defined in section 54A) of such issue, in excess of 
                the amounts in a reasonably required reserve (within 
                the meaning of section 150(a)(3)) for such issue, are 
                to be used for qualified carbon sequestration costs 
                incurred by public power providers or cooperative 
                electric companies,
                    ``(B) the obligation is issued by a qualified 
                issuer, and
                    ``(C) the issuer makes an irrevocable election to 
                have this section apply.
            ``(2) Applicable rules.--For purposes of applying paragraph 
        (1)--
                    ``(A) an issue shall not be treated as meeting the 
                requirements of paragraph (1) unless the issue 
                satisfies the requirements of section 148 with respect 
                to the proceeds of the issue,
                    ``(B) for purposes of applying section 148 to such 
                an issue, the yield on a carbon sequestration bond 
                shall be determined without regard to the credit 
                allowed under subsection (a),
                    ``(C) an issue shall not be treated as meeting the 
                requirements of this paragraph unless the issuer of the 
                carbon sequestration bonds submits reports similar to 
                the reports required under section 149(e), and
                    ``(D) a bond shall not be treated as a carbon 
                sequestration bond if the issue price has more than a 
                de minimis amount (determined under rules similar to 
                the rules of section 1273(a)(3)) of premium over the 
                stated principal amount of the bond.
    ``(e) Limitation on Amount of Bonds Designated.--
            ``(1) In general.--There is a national carbon sequestration 
        bond limitation of $5,000,000,000.
            ``(2) Allocation by secretary.--The Secretary shall make 
        allocations of the amount of the national carbon sequestration 
        bond limitation in such manner as the Secretary determines 
        appropriate.
    ``(f) Interest Payment Date.--For purposes of this section, the 
term `interest payment date' means any date on which the holder of 
record of the carbon sequestration bond is entitled to a payment of 
interest under such bond.
    ``(g) Special Rules.--
            ``(1) Interest on carbon sequestration bonds includible in 
        gross income for federal income tax purposes.--For purposes of 
        this title, interest on any carbon sequestration bond shall be 
        includible in gross income.
            ``(2) Application of certain rules.--Rules similar to the 
        rules of subsections (f), (g), (h), and (i) of section 54A 
        shall apply for purposes of the credit allowed under subsection 
        (a).
    ``(h) Special Rule for Qualified Carbon Sequestration Bonds.--In 
the case of a qualified carbon sequestration bond--
            ``(1) Issuer allowed refundable credit.--In lieu of any 
        credit allowed under this section with respect to such bond, 
        the issuer of such bond shall be allowed a credit as provided 
        in section 6432.
            ``(2) Qualified carbon sequestration bond.--In this 
        subsection, the term `qualified carbon sequestration bond' 
        means any carbon sequestration bond issued as part of an issue 
        if the issuer makes an irrevocable election to have this 
        subsection apply.
    ``(i) Definitions.--In this section:
            ``(1) Qualified carbon sequestration costs.--The term 
        `qualified carbon sequestration costs' means the incremental 
        costs for carbon capture and sequestration systems as described 
        in section 48E (without regard to any placed in service date), 
        which systems are owned by a public power provider or a 
        cooperative electric company.
            ``(2) Public power provider.--The term `public power 
        provider' means a State utility with a service obligation, as 
        such terms are defined in section 217 of the Federal Power Act 
        (as in effect on the date of the enactment of the Carbon 
        Capture and Sequestration Deployment Act of 2010).
            ``(3) Cooperative electric company.--The term `cooperative 
        electric company' means a mutual or cooperative electric 
        company described in section 501(c)(12) or section 1381 
        (a)(2)(C).
            ``(4) Qualified issuer.--The term `qualified issuer' means 
        a public power provider, a cooperative electric company, a 
        clean renewable energy bond lender, or a not-for-profit 
        electric utility which has received a loan or loan guarantee 
        under the Rural Electrification Act.
    ``(j) Regulations.--The Secretary may prescribe such regulations 
and other guidance as may be necessary or appropriate to carry out this 
section and section 6431.''.
    (b) Credit for Qualified Carbon Sequestration Bonds.--Subchapter B 
of chapter 65 of such Code is amended by adding at the end the 
following new section:

``SEC. 6432. CREDIT FOR QUALIFIED CARBON SEQUESTRATION BONDS ALLOWED TO 
              ISSUER.

    ``(a) In General.--In the case of a qualified carbon sequestration 
bond, the issuer of such bond shall be allowed a credit with respect to 
each interest payment under such bond which shall be payable by the 
Secretary as provided in subsection (b).
    ``(b) Payment of Credit.--The Secretary shall pay 
(contemporaneously with each interest payment date under such bond) to 
the issuer of such bond (or to any person who makes such interest 
payments on behalf of the issuer) 65 percent of the interest payable 
under such bond on such date.
    ``(c) Definitions.--In this section:
            ``(1) Interest payment date.--The term `interest payment 
        date' means each date on which interest is payable by the 
        issuer under the terms of the bond.
            ``(2) Qualified carbon sequestration bond.--The term 
        `qualified carbon sequestration bond' has the meaning given 
        such term in section 54BB(h)(2).
    ``(d) Application of Arbitrage Rules.--For purposes of section 148, 
the yield on a qualified bond shall be reduced by the credit allowed 
under this section.''.
    (c) Conforming Amendments.--
            (1) Section 1324(b)(2) of title 31, United States Code, is 
        amended by striking ``or 6431'' and inserting ``6431, or 
        6432,''.
            (2) Section 54A(c)(1)(B) of the Internal Revenue Code of 
        1986 is amended by striking ``subparts C and J'' and inserting 
        ``subparts C, J, and K''.
            (3) Sections 54(c)(2), 1397E(c)(2), and 1400N(l)(3)(B) of 
        such Code are each amended by striking ``and J'' and inserting 
        ``J, and K''.
            (4) Section 6211(b)(4)(A) of such Code is amended by 
        striking ``and 6431'' and inserting ``6431, and 6432''.
            (5) Section 6401(b)(1) of such Code is amended by striking 
        ``and J'' and inserting ``J, and K''.
            (6) The table of subparts for part IV of subchapter A of 
        chapter 1 of such Code is amended by adding at the end the 
        following new item:

              ``subpart k. carbon sequestration bonds.''.

            (7) The table of sections for subchapter B of chapter 65 of 
        such Code is amended by adding at the end the following new 
        item:

``Sec. 6432. Credit for qualified carbon sequestration bonds allowed to 
                            issuer.''.
    (d) Transitional Coordination With State Law.--Except as otherwise 
provided by a State after the date of the enactment of this Act, the 
interest on any carbon sequestration bond (as defined in section 54BB 
of the Internal Revenue Code of 1986, as added by this section) and the 
amount of any credit determined under such section with respect to such 
bond shall be treated for purposes of the income tax laws of such State 
as being exempt from Federal income tax.
    (e) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

           TITLE IV--CCS TECHNOLOGY STANDARD FOR POWERPLANTS

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

    (a) In General.--Title I of the Clean Air Act (42 U.S.C. 7401 et 
seq.) is amended by inserting after section 111 the following:

``SEC. 111A. CCS STANDARDS FOR NEW COAL-FIRED POWER PLANTS.

    ``(a) Definitions.--In this section:
            ``(1) Covered units.--The term `covered unit' means an 
        electric utility generating unit that derives 50 percent of its 
        annual heat input from coal, petroleum coke, or any combination 
        of these fuels.
            ``(2) Initially permitted.--The term `initially permitted' 
        means, with respect to an electric utility generating unit, 
        that the owner or operator of a unit has received a 
        preconstruction approval or permit under this Act, for the 
        covered unit as a new (not a modified) source, but 
        administrative review or appeal of such approval or permit has 
        not been exhausted. A subsequent modification of any such 
        approval or permit, ongoing administrative or court review, 
        appeals, or challenges, or the existence or tolling of any time 
        to pursue further review, appeals, or challenges shall not 
        affect the date on which a unit is considered to be initially 
        permitted.
            ``(3) Treated generating capacity.--The term `treated 
        generating capacity' means the portion of the total generating 
        capacity of an electric generating unit (or, in the case of an 
        industrial unit, an equivalent capacity) for which the flue gas 
        or fuel gas is treated by carbon capture and sequestration 
        technology.''.
    ``(b) Standards.--
            ``(1) Emission limit.--A covered unit that is initially 
        permitted on or after the date of the enactment of the Carbon 
        Capture and Sequestration Deployment Act of 2010 and before 
        January 1, 2020, shall achieve, by the compliance date set 
        forth in paragraph (2), an emission limit for carbon dioxide 
        that reflects 50 percent reduction from the carbon content of 
        the fuel used by the unit, as measured on an annual basis.
            ``(2) Compliance.--Compliance with the requirement set 
        forth in paragraph (1) shall be required by the earlier of the 
        following:
                    ``(A) Four years after the date the Administrator 
                has published a report that there are in commercial 
                operation in the United States electric generating 
                units or other stationary sources equipped with carbon 
                capture and sequestration technology that, in the 
                aggregate--
                            ``(i) have a total of at least 10 gigawatts 
                        of treated generating capacity; and
                            ``(ii) include electric generating units 
                        with at least 4 gigawatts of treated generating 
                        capacity which units are capturing and 
                        sequestering in deep geologic saline formations 
                        the aggregate at least 24 million tons of 
                        carbon dioxide per year, calculated on an 
                        aggregate annualized basis; or
                    ``(B) the later of--
                            ``(i) January 1, 2030; or
                            ``(ii) the date by which the assessment 
                        under section 102(b) determines that it is 
                        reasonable to conclude that technology is 
                        available to the commercial marketplace.
    ``(c) Regulations.--Not later than 2 years after the date of 
enactment of the Carbon Capture and Sequestration Deployment Act of 
2010, the Administrator shall promulgate regulations to carry out the 
requirements of this section.
    ``(d) Compliance With Standards.--Not withstanding other provisions 
of law, no unit subject to standards under subsection (b) shall be 
deemed subject to section 111 of this Act for emissions of carbon 
dioxide. Any unit subject to standards under subsection (b) shall be 
deemed to have met the requirements of section 169(3) for carbon 
dioxide.''.
    (b) Compliance and Judicial Review.--Sections 114 and 307 of such 
Act are each amended by striking ``section 111'' in each place it 
appears and inserting ``section 111 or section 111A''.

SEC. 402. CONSOLIDATED REVIEW OF FEDERAL AUTHORIZATIONS.

    (a) Designation of Lead Agency.--
            (1) In general.--The Department of Energy shall act as the 
        lead agency for the purposes of coordinating all applicable 
        Federal authorizations and related environmental reviews with 
        respect to an eligible project, including any requirements of--
                    (A) the Clean Air Act (42 U.S.C. 7401 et seq.);
                    (B) the Endangered Species Act of 1973 (16 U.S.C. 
                1531 et seq.);
                    (C) the Federal Water Pollution Control Act (33 
                U.S.C. 1251 et seq.);
                    (D) the National Environmental Policy Act of 1969 
                (42 U.S.C. 4321 et seq.); or
                    (E) the Safe Drinking Water Act (42 U.S.C. 300f et 
                seq.).
            (2) Other agencies.--Each Federal and State agency required 
        to provide a Federal authorization for an eligible project 
        shall cooperate with the Secretary and comply with the 
        deadlines established by the Secretary under subsection (b).
    (b) Coordination and Consolidated Review.--
            (1) Schedule.--As the head of the lead agency, and in 
        consultation with other agencies, the Secretary shall establish 
        a schedule for all Federal authorizations with respect to each 
        eligible project. In establishing the schedule, the Secretary 
        shall--
                    (A) set binding intermediate milestones and 
                deadlines to ensure expeditious completion of all 
                proceedings and final action on all Federal 
                authorizations relating to the eligible project;
                    (B) require that all permit decisions and related 
                environmental reviews under applicable Federal laws 
                shall be completed--
                            (i) within 1 year after the submission of a 
                        complete application for each permit decision 
                        or environmental review; or
                            (ii) if an express requirement of another 
                        provision of Federal law does not permit 
                        compliance with the 1-year deadline in clause 
                        (i), as soon thereafter as is practicable; and
                    (C) coordinate, to the maximum extent practicable, 
                any permitting and environmental reviews that apply to 
                the eligible project only under State law.
            (2) Memorandum of understanding.--Not later than 1 year 
        after the date of enactment of this Act, the Secretary and the 
        heads of all Federal agencies with authority to issue Federal 
        authorizations shall execute a memorandum of understanding to 
        ensure the coordinated and streamlined review and prompt 
        issuance of Federal authorizations for eligible projects.
            (3) Pre-application review.--The Secretary shall establish 
        and facilitate a pre-application review process to expedite the 
        review of all Federal authorizations, including permit 
        decisions and related environmental reviews, for any eligible 
        project under applicable Federal laws. The pre-application 
        review process shall require each agency involved in the review 
        process to confer with prospective applicants and identify 
        those issues of major concern to the agency and the general 
        public regarding the eligible project. The pre-application 
        review process shall require such agencies to provide a written 
        response to an inquiry from a prospective applicant not later 
        than 60 days after the completion of the pre-application review 
        process.
            (4) Consolidation of environmental reviews.--The Secretary, 
        in consultation with affected agencies, shall prepare a single 
        environmental review document for assessing all major Federal 
        actions related to any eligible project under section 102 of 
        the National Environmental Policy Act of 1969 (42 U.S.C. 4332). 
        Agencies subject to such environmental review requirements 
        shall use the document as the basis for all decisions related 
        to the eligible project.
            (5) Failure to meet schedule.--If a Federal or State agency 
        does not complete a proceeding for an approval that is required 
        for a Federal authorization in accordance with the schedule 
        established by the Secretary under this subsection, the 
        applicant may pursue remedies under subsection (d).
    (c) Consolidated Record.--The Secretary shall, with the cooperation 
of Federal and State agencies, maintain a complete consolidated record 
of all decisions made or actions taken by the Secretary or by a Federal 
agency (or State agency acting under delegated Federal authority) with 
respect to any Federal authorization. Such record shall be the record 
for judicial review under subsection (d) of decisions made or actions 
taken of Federal and State agencies, except that, if the Court 
determines that the record does not contain sufficient information, the 
Court may remand the proceeding to the Secretary for further 
development of the consolidated record.
    (d) Judicial Review.--
            (1) In general.--The United States Court of Appeals for the 
        circuit in which the eligible project is proposed to be 
        constructed shall have original and exclusive jurisdiction over 
        any civil action for the review of--
                    (A) an order or action related to a Federal 
                authorization, by a Federal agency (other than the 
                Secretary) or State agency acting pursuant to Federal 
                law to issue, including any order or action to 
                condition or deny any Federal authorization; and
                    (B) an alleged failure to act by a Federal or State 
                agency with respect to a Federal authorization.
        The failure of an agency to take action on a Federal 
        authorization in accordance with the schedule established by 
        the Secretary under subsection (b)(1) shall be considered to be 
        inconsistent with Federal law for the purposes of paragraph (2) 
        of this subsection.
            (2) Court action.--
                    (A) In general.--The Court shall remand the 
                proceeding for a particular eligible project to the 
                appropriate agency if the Court finds that--
                            (i) there has occurred either--
                                    (I) an order or action described in 
                                paragraph (1)(A) that is inconsistent 
                                with the Federal law governing the 
                                Federal authorization for the eligible 
                                project; or
                                    (II) a failure to act as described 
                                in paragraph 1(B) with respect to the 
                                eligible project; and
                            (ii) the order, action, or failure to act 
                        would prevent the siting, construction, or 
                        operation of the eligible project.
                    (B) Remand.--If the Court remands the order or 
                action to the appropriate Federal or State agency under 
                subparagraph (A), the Court shall provide specific 
                direction to remedy any inconsistency with Federal law 
                and set a reasonable schedule and appropriate deadlines 
                for the agency to act on remand.
            (4) Filing consolidated record.--For any civil action 
        described in this subsection, the Secretary shall promptly file 
        with the Court the consolidated record of the order or action 
        to which the appeal hereunder relates, as compiled by the 
        Secretary pursuant to subsection (c).
            (5) Expedited review.--The Court shall set any action 
        brought under this subsection for expedited consideration.
    (e) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Eligible project.--The term ``eligible project'' means 
        any project that is eligible to receive a financial incentive 
        under title II or III this Act or the amendments made by this 
        Act.
            (3) Federal authorization.--The term ``Federal 
        authorization''--
                    (A) means any authorization required under Federal 
                law, whether administered by a Federal or State agency, 
                with respect to the siting, construction, or operation 
                of an eligible project; and
                    (B) includes any permit, license, special use 
                authorizations, certifications, opinions, concurrence, 
                or other approvals that may be required under Federal 
                law with respect to the siting, construction, or 
                operation of an eligible project.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (f) Regulations.--Not later than 18 months after the date of 
enactment of this Act, the Secretary shall establish by rule, after 
notice and public opportunity to comment, regulations that are 
necessary to implement this section.
    (g) Relationship to other Laws.--Except as specifically provided, 
nothing in this section affects any requirement of any Federal or State 
law, including the Federal laws described in subsection (a)(1).

                  TITLE V--CARBON STORAGE STEWARDSHIP

SEC. 501. SHORT TITLE.

    This title may be cited as the ``Carbon Storage Stewardship Act''.

SEC. 502. PURPOSE.

    The purpose of this title is to facilitate carbon capture and 
storage in suitable underground formations by--
            (1) providing for long-term stewardship of closed carbon 
        dioxide storage sites to ensure continuing protection of 
        health, safety, and the environment during the stewardship 
        period;
            (2) providing a system for compensation to any person that 
        may suffer personal injury or property damage from stored 
        carbon dioxide at such a site;
            (3) establishing financial responsibility and a dedicated 
        funding mechanism for such stewardship and compensation; and
            (4) establishing a transitional program that provides 
        limited indemnification for owners and operators of qualifying 
        first mover projects to demonstrate the capture and geological 
        storage of carbon dioxide.

SEC. 503. DEFINITIONS.

    In this title:
            (1) Board.--The term ``Board'' means the Carbon Storage 
        Stewardship Board that is established under section 508.
            (2) Carbon dioxide.--The term ``carbon dioxide'' means 
        carbon dioxide that is segregated for purposes of geologic 
        storage, including small quantities of other compounds to the 
        extent authorized by the terms of the injection permits issued 
        for the storage facility.
            (3) Certificate of completion.--The term ``certificate of 
        completion'' means a determination issued with respect to a 
        storage facility by the regulatory authority that certifies 
        that the project operator has completed injection operations, 
        well closure, and any required monitoring and remediation at a 
        storage facility, so that there is a reasonable basis to 
        believe that carbon dioxide is and will continue to be safely 
        stored at the site and will not present an unreasonable risk to 
        health, safety, or the environment (including drinking water 
        supplies) during the stewardship period.
            (4) Certified post-closure storage facility.--The term 
        ``certified post closure storage facility'' means a storage 
        facility for which the regulatory authority has issued a 
        certificate of completion.
            (5) Civil claim.--The term ``civil claim'' means any claim 
        for civil relief with respect to a facility that arises from 
        migration of carbon dioxide from such facility or is otherwise 
        related to the injection of carbon dioxide at such facility, 
        excluding--
                    (A) any claim arising from breach of an express 
                contract; and
                    (B) in the case of a project operator, any claim 
                arising from--
                            (i) willful violation of applicable rules 
                        of the regulatory authority; or
                            (ii) any false statement or 
                        misrepresentation in an application for a 
                        certificate of completion; and
                            (iii) conduct that constitutes reckless or 
                        intentional misconduct by the project operator.
            (6) Federal or state environmental requirement.--The term 
        ``Federal or State environmental requirement'' means a 
        requirement of a Federal or State agency that--
                    (A) relates to health, safety, or the environment 
                that results from the injection of carbon dioxide at a 
                certified post-closure storage facility;
                    (B) is authorized under Federal or State law; and
                    (C) imposes an obligation relating to such 
                injection of carbon dioxide during the stewardship 
                period to--
                            (i) monitor the migration of carbon dioxide 
                        within and from a certified post-closure 
                        storage facility;
                            (ii) perform remediation at such facility;
                            (iii) desist from any action that poses a 
                        health, safety, or environment risk; or
                            (iv) take other such action that may be 
                        necessary to ensure the protection of health, 
                        safety or the environment.
            (7) First mover project.--The term ``first mover project'' 
        is a project involving the large-scale capture and geological 
        sequestration of carbon dioxide that the Secretary selects for 
        indemnification under section 508.
            (8) Non-federal member.--The term ``non-Federal member'' 
        means any member of the Board who is not otherwise employed by 
        the Federal government.
            (9) Program.--The term ``Program'' means the National 
        Carbon Storage Stewardship Program established under section 
        507.
            (10) Project operator.--The term ``project operator'' means 
        the entity responsible for injection operations at a storage 
        facility.
            (11) Public claim.--The term ``public claim''--
                    (A) means a civil claim that is asserted by a third 
                party for--
                            (i) personal injury;
                            (ii) property damage;
                            (iii) trespass; or
                            (iv) nuisance; but
                    (B) does not include claims for punitive damages or 
                non-economic losses.
            (12) Regulatory authority.--The term ``regulatory 
        authority'' for a storage facility means the State or Federal 
        agency that issues an injection permit for such storage 
        facility. If more than one agency has such authority with 
        respect to a facility, the Board shall designate one of the 
        permitting agencies as the regulatory authority for such 
        facility for purposes of carrying out this title.
            (13) Remediation.--The term ``remediation'' means action to 
        remedy, mitigate, or correct any danger to health, safety, or 
        the environment (including any damage to underground drinking 
        water supplies) that occurs as a result of prior injection of 
        carbon dioxide at a certified post-closure storage facility.
            (14) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (15) Stewardship agency.--The term ``stewardship agency'' 
        means the agency that has assumed stewardship responsibility 
        under section 504.
            (16) Stewardship period.--The term ``stewardship period'' 
        for a storage facility means the period of time that begins 
        upon the date that the regulatory authority issues the 
        certificate of completion for the storage facility.
            (17) Stewardship responsibility.--The term ``stewardship 
        responsibility'' means responsibility for monitoring and 
        remediation of certified post-closure storage facilities in a 
        State during the stewardship period, as provided in section 
        504.
            (18) Storage facility.--The term ``storage facility'' means 
        a facility for long-term geologic storage and sequestration of 
        carbon dioxide, including a facility for enhanced oil or gas 
        recovery, as provided by section 506(b)(1)(B).
            (19) Trust fund.--The term ``Trust Fund'' means the Carbon 
        Storage Stewardship Trust Fund that is established under 
        section 506.

SEC. 504. STEWARDSHIP RESPONSIBILITY.

    (a) Agency Responsible for Stewardship.--A State may accept 
stewardship responsibility for certified post-closure storage 
facilities in that State in accordance with regulations of the 
Secretary. If a State declines to accept stewardship responsibility, 
then the Secretary shall have stewardship responsibility for certified 
post-closure storage facilities in that State. In accordance with such 
rules as the Secretary may prescribe, if a State that has accepted 
stewardship responsibility fails to carry out such responsibility, the 
Secretary shall, after notice and opportunity for comment, assume such 
responsibility.
    (b) Administration, Monitoring and Remediation.--
            (1) Responsibilities.--Upon issuance of the certificate of 
        completion for a storage facility, the stewardship agency shall 
        be responsible for providing all monitoring and remediation of 
        the carbon dioxide injected at that storage facility. The 
        monitoring and remediation shall be conducted in accordance 
        with standards prescribed by the Board under section 507(c)(1).
            (2) Reimbursement of agency costs.--The Board shall 
        reimburse the stewardship agency for all reasonable and 
        verified costs that the stewardship agency has incurred for 
        program administration and the performance of its stewardship 
        responsibility, as described in paragraph (1). The Board shall 
        pay such costs from the Trust Fund through the Program and in 
        accordance with a reimbursement contract entered into under 
        subsection (c).
    (c) Reimbursement Contracts.--
            (1) In general.--The Board shall offer each agency that 
        accepts stewardship responsibility for certified post-closure 
        storage facilities within a State a contract under which the 
        Board provides reimbursement for costs of administration, 
        monitoring, and remediation of such facilities during the 
        stewardship period as determined under paragraph (2). Section 
        1341 of title 31, United States Code shall not apply to any 
        such contract. The contract shall be backed by the full faith 
        and credit of the United States.
            (2) Rules.--The Board shall prescribe rules for 
        reimbursement of all reasonable costs of administration, 
        monitoring, and remediation incurred by agencies that have 
        stewardship responsibility for certified post-closure storage 
        facilities.

SEC. 505. RESPONSIBILITY FOR PAYMENT OF CLAIMS.

    (a) Claims Against the Trust Fund.--
            (1) Public claims.--Upon issuance of the certificate of 
        completion for a storage facility, all public claims related to 
        the carbon dioxide injected at that certified post closure 
        storage facility shall be filed with the Board and paid from 
        Trust Fund.
            (2) Orphan storage facilities.--A stewardship agency having 
        jurisdiction over a particular storage facility may petition 
        the Board for reimbursement from the Trust Fund of the 
        monitoring and remediation costs that may be incurred by such 
        stewardship agency consistent with the standards established 
        under section 507(c) if--
                    (A) the particular storage facility--
                            (i) has completed injection operations at 
                        the storage facility;
                            (ii) has obtained all applicable permits 
                        for the injection of carbon dioxide into the 
                        storage facility and substantially complied 
                        with the requirements of those permits during 
                        the injection operations;
                            (iii) has paid annual assessments into the 
                        Trust Fund, as required under section 506(b), 
                        for a substantial majority of the carbon 
                        dioxide injected into the storage facility; and
                            (iv) is unable to obtain a certificate of 
                        completion from the regulatory authority; and
                    (B) a United States bankruptcy court has issued--
                            (i) a bankruptcy discharge that releases 
                        the owners, operators, and any other 
                        potentially responsible parties from the 
                        financial liabilities related to the particular 
                        storage facility; or
                            (ii) other determination that the owners, 
                        operators, and any other potentially 
                        responsible parties of the particular storage 
                        are financially unable to fulfill conditions 
                        and requirements necessary to obtain a 
                        certificate of completion for the particular 
                        storage facility; and
                    (C) the Board determines that using the Trust Fund 
                to fund monitoring and remediation activities at the 
                particular storage facility is in the public interest.
            (3) Exclusive board jurisdiction.--The Board shall have 
        exclusive jurisdiction to adjudicate all public claims and 
        petitions filed with Board under paragraphs (1) and (2), as 
        provided by section 509.
    (b) Claims Against Stewardship Agencies.--
            (1) Civil claims.--Subject to paragraph (2), an agency that 
        has stewardship responsibility for a certified post-closure 
        storage facility is not subject to any civil claim as a result 
        of assuming or carrying out its stewardship responsibility 
        under this title.
            (2) Federal and state requirements.--An agency that has 
        stewardship responsibility for a certified post-closure storage 
        facility shall be subject to--
                    (A) all applicable Federal and State environmental 
                requirements that relate to the injection of carbon 
                dioxide at that storage facility during the stewardship 
                period; and
                    (B) civil claims for injunctive relief for the 
                performance of--
                            (i) all applicable Federal and State 
                        environmental requirements that relate to--
                                    (I) the ongoing monitoring, 
                                measurement, and verification of carbon 
                                dioxide injected at that storage 
                                facility; and
                                    (II) maintaining the integrity of 
                                the storage facility during the 
                                stewardship period; and
                            (ii) any requirement to provide remediation 
                        at the storage facility during the stewardship 
                        period that is--
                                    (I) consistent with any applicable 
                                Federal or State environmental 
                                requirements; and
                                    (II) necessary to remedy any breach 
                                in the integrity of the storage 
                                facility that is caused by the 
                                injection of carbon dioxide into such 
                                facility.
            (3) Venue.--Civil claims brought for injunctive relief 
        under paragraph (2)(B) shall be filed in the District Court of 
        the United States in which the stewardship agency is located.
            (4) Conflicting requirements.--If a standard or requirement 
        established by the Board differs from any Federal or State 
        environmental requirement, compliance with the Board standard 
        or requirement shall be deemed to satisfy the obligation of a 
        stewardship agency to comply with the corresponding State or 
        Federal environmental requirement.
    (c) Claims Against Operators, Property Owners, Transporters, and 
Generators.--Upon issuance of the certificate of completion for a 
storage facility, civil claims related to the carbon dioxide injected 
at that certified post-closure storage facility may not be brought 
against--
            (1) the project operator of the facility, except if the 
        Board determines that there are insufficient funds in the Trust 
        Fund to pay such claims, as provided in subsection (b)(5)(E) of 
        section 506;
            (2) the owner of the facility;
            (3) a holder of a real property interest in the facility;
            (4) any transmission pipeline that transported carbon 
        dioxide to the facility; or
            (5) the generator of the carbon dioxide being handled by 
        either the pipeline or storage facility.

SEC. 506. CARBON STORAGE STEWARDSHIP TRUST FUND.

    (a) Establishment of Trust Fund.--The Carbon Storage Stewardship 
Trust Fund is hereby established in the Treasury. The Trust Fund shall 
be administered by the Board. Notwithstanding section 3302 of title 31, 
United States Code, all assessments paid under subsection (b) shall be 
deposited in the Trust Fund and shall be available without fiscal year 
limitation and without further appropriation solely for the purpose 
of--
            (1) covering the administrative costs of the Board under 
        this title; and
            (2) making payments authorized by section 507.
    (b) Assessments.--
            (1) Payment by operator.--
                    (A) In general.--Except as provided in subparagraph 
                (B), each project operator of a storage facility shall 
                pay an annual assessment into the Trust Fund for the 
                carbon dioxide injected into a storage facility during 
                a given calendar year after the date of enactment of 
                this Act. The annual assessment shall be equal to the 
                product of--
                            (i) the number of tons of carbon dioxide 
                        that are injected into the storage facility for 
                        a particular year during the operational phase 
                        of the facility; and
                            (ii) the assessment amount, expressed on a 
                        dollar-per-ton of carbon dioxide injected, that 
                        the Board has established for the storage 
                        facility under paragraph (2).
                    (B) Enhanced oil or gas recovery.--In the case of 
                the injection of carbon dioxide for the purpose of 
                enhanced oil or gas recovery, the requirement to pay an 
                annual assessment into the Trust Fund under 
                subparagraph (A) shall apply--
                            (i) solely to the net quantity of carbon 
                        dioxide injected into a storage facility for 
                        the purpose of the long-term geological storage 
                        of the carbon dioxide in order to meet a 
                        greenhouse gas reduction compliance obligation 
                        under a Federal or State regulatory program; 
                        and
                            (ii) only to the extent that the project 
                        operator has relied upon geological storage of 
                        the carbon dioxide for meeting a greenhouse gas 
                        reduction compliance obligation under a Federal 
                        or State regulatory program.
                    (C) Special rule.--
                            (i) Extended payment schedule.--Except as 
                        provided by clause (ii), the Board may impose 
                        an assessment under subparagraph (A) upon any 
                        storage facility existing on the date of 
                        enactment of this Act for amounts of carbon 
                        dioxide injected prior to the establishment of 
                        the Trust Fund. The Board shall establish a 
                        reasonable schedule for the payment of the 
                        assessment authorized under the previous 
                        sentence, which shall not exceed 10 years.
                            (ii) Demonstration projects.--The Board 
                        shall not impose an assessment under 
                        subparagraph (A) in the case of a demonstration 
                        project that--
                                    (I) injects carbon dioxide in 
                                amounts that are less than 1,000,000 
                                tons per year;
                                    (II) has an injection period of 5 
                                years or less; and
                                    (III) poses a de minimis risk to 
                                health, safety, or the environment 
                                during the stewardship period.
                            (iii) Trust fund coverage.--In the case of 
                        a project that is exempted from the assessment 
                        under clause (ii) of this subparagraph, the 
                        stewardship agency shall--
                                    (I) perform any monitoring and 
                                remediation that may be necessary after 
                                the proper closure of the storage 
                                facility;
                                    (II) receive reimbursement for the 
                                reasonable costs for performing such 
                                monitoring and remediation activities 
                                from the Trust Fund by the Board; and
                                    (III) be subject to civil claims 
                                for injunctive relief to perform 
                                appropriate monitoring and remediation, 
                                as provided under section 505(b)(2)(B).
            (2) Assessment amount.--After providing opportunity for 
        public notice and comment and after taking into account the 
        information, recommendations and guidance that the technical 
        advisory committee may provide under section 508(g), the Board 
        shall determine by rule the assessment amount that applies to 
        each ton of carbon dioxide injected into a storage facility in 
        accordance with method prescribed in paragraph (3).
            (3) Method for calculating assessment amount.--The Board 
        shall establish by rule a method for calculating the assessment 
        amount that--
                    (A) establishes a specific dollar-per-ton 
                assessment for the injection of carbon dioxide into 
                each type or class of storage facilities that the Board 
                has identified under paragraph (4)(A);
                    (B) reflects the degree of risk that substantial 
                remediation costs and public claims might be incurred 
                for each type or class of storage facilities for which 
                the Board has developed a risk profile under paragraph 
                (4)(B);
                    (C) accounts for the cumulative quantities of 
                carbon dioxide that project operators are expected to 
                inject into storage facilities at appropriate 
                milestones over the life of the Program;
                    (D) calculates the net present value of cumulative 
                payments that the Board expects to make under section 
                507 at appropriate milestones over the life of the 
                Program for--
                            (i) reasonable future administrative costs 
                        that the Board expects to incur under the Act;
                            (ii) reimbursement to stewardship agencies 
                        for the reasonable future costs that such 
                        agencies are likely to incur for program 
                        administration, monitoring, remediation and the 
                        performance of other stewardship 
                        responsibilities under section 504; and
                            (iii) satisfaction of public claims on 
                        which the Board expects to make payment based 
                        on the reasonably anticipated risks of ultimate 
                        recovery against the Program for such costs 
                        under section 505;
                    (E) calculates the net present value of payments 
                that the Board expects to be deposited into the Trust 
                Fund under this subsection at appropriate milestones 
                over the life of the Program; and
                    (F) reflects the best available engineering, 
                geological, and scientific information, including the 
                information, recommendations and guidance that the 
                technical advisory committee may provide to the Board 
                under section 508(g).
            (4) Types and classes of storage facilities.--
                    (A) Identification and categorization.--The Board 
                shall identify those geological formations that may 
                potentially be used as a storage facility and 
                categorize each identified formation into an 
                appropriate type or class based on--
                            (i) the type of formation, including 
                        depleted oil and gas formations, deep 
                        unmineable coal seems, and deep saline 
                        aquifers;
                            (ii) depth of injection of carbon dioxide 
                        into the formation;
                            (iii) proximity of the formation to 
                        drinking water sources, human settlements, or 
                        ecologically sensitive areas;
                            (iv) proximity of the formation to 
                        seismically active geological faults; and
                            (v) other factors that may affect the 
                        probability that the Board may incur 
                        substantial costs for remediation and public 
                        claims under section 508(g).
                    (B) Risk profiles.--For each type or class of 
                geological formation identified under subparagraph (A), 
                the Board shall prepare a profile of the reasonably 
                foreseeable risks that could result by the injection of 
                carbon dioxide into such a formation. In developing 
                such risk profiles, the Board shall rely on the best 
                available scientific information, including the 
                information, recommendations and guidance that the 
                technical advisory committee may provide to the Board 
                under section 508(g).
            (5) Adjustment of assessment amount.--
                    (A) In general.--The Board shall prescribe rules 
                for adjusting the assessment amount established under 
                paragraph (2) if the Board determines that the Trust 
                Fund is underfunded or overfunded to cover the payments 
                expected under section 507. The Board shall make its 
                determination on the sufficiency of such funds in the 
                Trust Fund based on actuarial studies to be conducted 
                at least every 5 years, beginning 10 years after the 
                date of enactment of this Act, and any change in the 
                assessment amount shall be made in accordance with the 
                applicable provisions of this subsection and after 
                opportunity for public notice and comment.
                    (B) Limits on size of trust fund.--
                            (i) In general.--The Board shall establish 
                        by rule a minimum and maximum balance for the 
                        Trust Fund and adjust the amount of the 
                        assessment amount to ensure that the amounts in 
                        Trust Fund remain within the minimum and 
                        maximum fund levels established under this 
                        subparagraph. In setting the minimum and 
                        maximum fund levels, the Board shall--
                                    (I) apply the criteria prescribed 
                                in paragraph (3) for calculating the 
                                assessment amount; and
                                    (II) take into account the 
                                information, recommendations and 
                                guidance that the technical advisory 
                                committee may provide under section 
                                508(g).
                            (ii) Review and revision.--The Board shall 
                        review from time to time and revise as 
                        necessary and appropriate the minimum and 
                        maximum levels established for the Trust Fund 
                        under clause (i) of this subparagraph. The 
                        Board may make any revision to the minimum and 
                        maximum levels only in accordance with 
                        applicable provisions of this subsection, 
                        including the requirements of clause (i) of 
                        this subparagraph.
                    (C) Rebates if trust fund is overfunded.--The Board 
                may provide rebates to project operators that have made 
                payments into the Trust Fund under subsection (b) if 
                the Board determines by rule that--
                            (i) the Trust Fund is overfunded under 
                        subparagraph (A);
                            (ii) a substantial reduction in future 
                        payments into the Trust Fund would be necessary 
                        to ensure that the amounts in the Trust Fund do 
                        not exceed maximum balance levels established 
                        under subparagraph (B); and
                            (iii) a rebate of past payments, combined 
                        with a downward adjustment of future payments, 
                        into the Trust Fund is appropriate to ensure a 
                        fair and equitable assessment on all project 
                        operators contributing to the Trust Fund.
                    (D) Increases in assessment amount.--The Board may 
                increase the level of the assessment amount for carbon 
                dioxide injected into a storage facility if the Board 
                determines by rule that the Trust Fund is underfunded 
                under subparagraph (A). Any such increase in the 
                assessment amount shall only apply prospectively to 
                annual assessments for carbon dioxide injected during 
                the operation of a storage facility under paragraph 
                (2).
                    (E) Claims in excess of trust fund.--The project 
                operator shall be responsible to pay claims under 
                section 505 that are related to, or arising from, the 
                injection and sequestration of carbon dioxide at its 
                certified post-closure storage facility if the Board 
                determines that insufficient funds are available to pay 
                such claims even after the application of a prospective 
                increase of the assessment amount, as authorized by 
                subparagraph (D).
    (c) Investment.--At the request of the Board, the Secretary of the 
Treasury may invest any part of the amounts in the Trust Fund in 
interest-bearing securities of the United States Government. The 
interest on, and the proceeds from the sale or redemption of, the 
securities shall be deposited in the Trust Fund.
    (d) Repayable Advances.--If amounts in the Trust Fund are 
insufficient to cover current obligations of the Board under this Act, 
there are authorized to be appropriated to the Trust Fund as interest-
bearing repayable advances, such sums as may be necessary to carry out 
the purposes of such Trust Fund. The terms and conditions of such 
advances shall be as specified in appropriation Acts.

SEC. 507. PAYMENTS FROM THE TRUST FUND.

    (a) Establishment.--The Board shall establish and administer the 
National Carbon Storage Stewardship Program to--
            (1) reimburse agencies (or the Secretary as provided under 
        section 504) for the costs incurred for program administration 
        and in performing their stewardship responsibilities with 
        respect to certified post-closure storage facilities, as 
        provided in contracts executed under section 504(c); and
            (2) make payments to satisfy--
                    (A) public claims made with respect to certified 
                post-closure storage facilities, as authorized by 
                section 505(a)(1); and
                    (B) petitions to cover monitoring and remediation 
                costs incurred at storage facilities, as authorized by 
                section 505(a)(2).
        The payment of these expenditures by the Board shall be funded 
        from the Trust Fund in accordance with provisions of this 
        title.
    (b) Payment Schedules for Public Claims.--The Board shall by rule 
prescribe payment schedules for determining the nature and amount of 
compensation that the Board will pay from the Trust Fund for public 
claims under section 505(a)(1). The payment schedules shall reflect the 
best available engineering, geological, and scientific information, 
including the information, recommendations and guidance that the 
technical advisory committee may provide to the Board under section 
508(g).
    (c) Monitoring and Remediation.--
            (1) Standards.--The Board shall prescribe standards for 
        determining whether and to what extent monitoring and 
        remediation will be required for carbon dioxide injected at a 
        certified post-closure storage facility. The standards shall--
                    (A) be based on the applicable Federal and State 
                environmental requirements for the monitoring and 
                remediation of carbon dioxide injected at a certified 
                post closure storage facility; and
                    (B) reflect any other monitoring or remediation 
                requirements that the Board determines are necessary to 
                protect the health, safety, and the environment during 
                the stewardship period.
            (2) Reimbursement.--
                    (A) In general.--The Board shall reimburse the 
                stewardship agency from the Trust Fund for the costs 
                that it has incurred for the monitoring and remediation 
                in accordance with the standards established under 
                paragraph (1) and contracts entered into under section 
                504.
                    (B) Contractual disputes.--The stewardship agency 
                or the Board may bring an action in the United States 
                District Court to obtain relief on disputes relating to 
                provisions of reimbursement contracts executed under 
                section 504(c).
    (d) Limitation on Payment of Claims.--The Board shall not pay 
claims otherwise authorized under this section if the claim for 
reimbursement or compensation arose from conduct of the project 
operator that constitutes reckless or intentional misconduct.
    (e) Private Insurers.--The Board may contract with private insurers 
to provide claim adjustment services for public claims. In addition, to 
the extent the Board determines that insurance from private sources to 
cover reasonably anticipated costs of public claims and remediation is 
available for certified post-closure storage facilities at reasonable 
cost and on reasonable terms, the Board may purchase such insurance 
from private sources.

SEC. 508. CARBON STORAGE STEWARDSHIP BOARD.

    (a) Establishment.--There is hereby established within the 
Department of Energy an independent agency to be know as the Carbon 
Storage Stewardship Board.
    (b) Purpose.--The purpose of the Board is to advance, in the most 
efficient and effective manner, the widespread deployment of carbon 
capture and storage technologies by providing for the long-term 
stewardship of closed storage sites in a manner that achieves the 
objectives and requirements of this title.
    (c) Organization.--
            (1) Membership.--The Board shall consist of 7 members, of 
        which--
                    (A) 4 shall be appointed by the President by and 
                with the advice and consent of the Senate; and
                    (B) 3 shall be full-time Federal employees 
                designated by the President in accordance with 
                paragraph (6).
            (2) Qualifications for membership.--Each member of the 
        Board shall--
                    (A) be a citizen of the United States;
                    (B) have demonstrated knowledge and expertise in 
                the fields relating to--
                            (i) carbon capture technologies;
                            (ii) geological storage of carbon dioxide 
                        in underground formations;
                            (iii) electric power generation; or
                            (iv) qualitative and quantitative 
                        evaluation of the risk posed to health, safety, 
                        or the environment (including drinking water 
                        supplies) by the injection of carbon dioxide 
                        into underground formations; and
                    (C) in the case of members that are full-time 
                Federal employees designated under subparagraph 
                (c)(1)(B), be serving in a technical capacity for the 
                Federal agency on one or more of the areas enumerated 
                in subparagraph (B).
            (3) Appointment and designation.--Not later than 180 days 
        after the date of enactment of this Act, the President shall 
        appoint or designate (as the case may be) the members to the 
        Board in accordance with the requirements of this subsection.
            (4) Term of service.--
                    (A) In general.--Except as provided under 
                subparagraph (B), each non-Federal member of the Board 
                shall serve for a term of 12 years and may be removed 
                by the President only for neglect of duty, malfeasance, 
                or other just cause for dismissal. Members of the Board 
                who are full-time Federal employees shall serve at the 
                pleasure of the President.
                    (B) First appointments.--In the case of the non-
                Federal members that the President first appoints to 
                the Board,
                            (i) the Chairperson shall serve a term of 6 
                        years; and
                            (ii) the 3 remaining non-Federal members to 
                        the Board (other than the Chairperson) shall 
                        serve for terms of 8, 10, and 12 years, as 
                        designated by the President at the time of 
                        appointment.
                    (C) Service until new appointment.--The term of a 
                non-Federal Board member shall continue after the 
                expiration of the term of the member until the date on 
                which a replacement is appointed by the President and 
                confirmed by the Senate.
                    (D) Vacancy.--Any non-Federal Board member 
                appointed to fill a vacancy in an unexpired term shall 
                serve only for the remainder of that term.
                    (E) Reappointment.--An individual who has served as 
                a Board member for a term of more than 8 years shall 
                not be eligible for reappointment.
            (5) Chairperson.--
                    (A) Designation.--The President shall designate a 
                Chairperson from the non-Federal Board members that are 
                representatives from industry under paragraph (6)(E).
                    (B) Term of service.--The Chairperson of the Board 
                shall serve for a term of 6 years and may be 
                reappointed for a second-year term.
            (6) Composition of board.--The Board shall consist of--
                    (A) 1 employee from the Department of Energy;
                    (B) 1 employee from Environmental Protection 
                Agency;
                    (C) 1 employee from the Department of Interior;
                    (D) 1 representative from a public utility 
                commission or other state governmental agency; and
                    (E) 3 representatives from industry, including 2 
                individuals who have substantial experience in the 
                electric power sector.
            (7) Level of service.--
                    (A) Full-time service.--The Chairperson of the 
                Board shall serve on a full-time basis and may not 
                engage in any other business, vocation, or employment 
                while serving in the capacity of Chairperson.
                    (B) Part-time service.--Members of the Board who 
                are not serving as the Chairperson--
                            (i) shall serve on part-time basis, as 
                        needed to perform the functions and 
                        responsibilities of the Board;
                            (ii) may engage in other business, 
                        vocation, or employment so long as there is no 
                        direct conflict of interest with their official 
                        work responsibilities of Board; and
                            (iii) in the case of each individual who is 
                        employee of a Federal agency, may be assigned 
                        to serve on the Board without reimbursement to 
                        the Federal agency.
            (8) Compensation.--Non-Federal members of the Board shall 
        be compensated at the rate prescribed for Level IV of the 
        Executive Schedule.
    (d) Duties and Responsibilities of the Chairperson.--The 
Chairperson shall be responsible on behalf of the Board for the 
executive and administrative operation of the Board.
    (e) Functions.--The Board shall--
            (1) prescribe the form of cost reimbursement agreements 
        under section 504(c), offer such agreements to agencies that 
        have stewardship responsibility, and execute such agreements on 
        behalf of the United States;
            (2) evaluate the adequacy of the Trust Fund and adjust the 
        level of the assessment as authorized under section 506(b);
            (3) prescribe payment schedules for public claims under 
        section 507(b) and monitoring and remediation standards under 
        section 507(c)(1);
            (4) determine, as provided in section 509, the extent to 
        which--
                    (A) public claims filed with the Board are payable 
                under section 505(a)(1) in accordance with applicable 
                payment schedules; and
                    (B) petitions to cover monitoring and remediation 
                costs incurred at storage facilities are payable under 
                section 505(a)(2).
            (5) determine whether monitoring and remediation is 
        required at a certified post-closure storage facility 
        prescribed under section 507(c);
            (6) make payments under cost reimbursement agreements 
        (including payments for monitoring and remediation costs) under 
        section 504(c); and
            (7) exercise such other authorities as may be necessary or 
        appropriate to carry out its functions under the preceding 
        paragraphs of this subsection or other provisions of this 
        title, including assignment of employees from other Federal 
        agencies, employment of personnel, and entering into contracts.
    (f) Powers.--The Board has the authority to--
            (1) prescribe, by rule or order, such requirements for 
        monitoring certified post-closure storage facilities and for 
        making such inspections and reports as may be necessary or 
        appropriate to carry out this title;
            (2) enter onto the premises or property of any storage 
        facility to carry out this title;
            (3) issue an order requiring a person to comply with order, 
        rule or requirement that the Board has established under the 
        Act;
            (4) commence a civil action in the United States District 
        Court to recover from any project operator any fees or 
        assessments not paid when due, after notice and an opportunity 
        to cure any deficiency within 30 days of such notice;
            (5) bring an action against any person in the United States 
        District Court to enforce the provisions of this title or rules 
        or orders thereunder, and to obtain appropriate injunctive or 
        other relief; and
            (6) seek civil or criminal penalties for violations of 
        provisions of this title, as provided under subsection (h).
    (g) Technical Advisory Committee.--
            (1) Establishment.--The Board shall establish an 
        independent technical advisory committee composed of 7 members, 
        each of whom has demonstrated knowledge and expertise with 
        respect to engineering, geological, or environmental matters 
        related to the storage of carbon dioxide in suitable 
        underground formations.
            (2) Function.--The committee established under paragraph 
        (1) shall provide information, recommendations and guidance to 
        the Board on technical matters related to--
                    (A) the amount and duration of the assessment that 
                a project operator of a storage facility should pay 
                under section 506(b) to cover future anticipated 
                payments from the Trust Fund for the purposes described 
                under section 507;
                    (B) the profile of reasonably foreseeable risks 
                that the Board must develop for each type or class of 
                geological formation under section 506(b)(4)(B);
                    (C) payment schedules for determining the nature 
                and amount of compensation that the Board will pay from 
                the Trust Fund for public claims, as provided under 
                section 507(b);
                    (D) standards for determining whether and to the 
                extent that monitoring and remediation will be required 
                for carbon dioxide injected at a certified post-closure 
                storage facility, as provided under section 507(c); and
                    (E) other determinations or actions that the Board 
                must perform to carry out its responsibilities and 
                duties under this title.
            (3) Additional research.--The committee established under 
        paragraph (1) shall advise the Board as to additional research 
        and technical studies that may be necessary to perform the 
        functions described under paragraph (2).
    (h) Penalties.--
            (1) Civil penalties.--Any person that knowingly violates 
        any provision of this title or any rule or order thereunder 
        shall be subject to a civil penalty of $10,000 per violation.
            (2) Criminal penalties.--Any person that knowingly and 
        willfully violates any provision of this title or any rule or 
        order thereunder shall be subject to a fine of $50,000 or 
        imprisonment for a term of 2 years, or both.
    (i) Public Comment and Judicial Review.--In prescribing rules of 
general applicability under this title, the Secretary and the Board 
shall provide an opportunity for public notice and comment. Those rules 
shall be subject to review by the United States Courts of Appeal in 
accordance with chapter 158 of title 28, United States Code. All other 
agency actions under this title shall be reviewed in accordance with 
chapter 7 of title 5, United States Code.

SEC. 509. ADJUDICATION OF PUBLIC CLAIMS.

    (a) Public Claims Office.--
            (1) Establishment.--There is established within the 
        Department of Energy an Office of Public Claims, which shall be 
        composed of administrative law judges who are responsible for 
        adjudicating public claims filed with the Board under section 
        505(a).
            (2) Appointment.--After the first storage facility receives 
        a certificate of completion from the appropriate regulatory 
        authority, the Chairperson of the Board shall begin to appoint 
        as many administrative law judges as are necessary to 
        adjudicate public claims pending before the Board and may 
        select for appointment qualified administrative law judges who 
        are contracted from the Department of Energy or other Federal 
        agencies.
            (3) Independence from board.--The administrative law judges 
        within the Office of Public Claims shall establish and 
        implement procedures to ensure the separation and independence 
        of the Office of Public Claims from the Board.
    (b) Adjudicatory Procedures.--In adjudicating each public claim or 
petition filed with the Board under section 505(a), the administrative 
law judge shall--
            (1) in the case of public claims made with respect to 
        certified post-closure storage facilities under section 
        505(a)(1), apply the appropriate payment schedules for 
        compensation that the Board has established under section 
        507(b);
            (2) in the case of petitions for the reimbursement of 
        monitoring and remediation costs incurred at storage facilities 
        under section 505(a)(2), determine the reasonable costs for 
        performing the appropriate standards established for monitoring 
        and remediation under section 507(c); and
            (3) issue a decision that is determined on the record after 
        opportunity for an agency hearing in accordance with sections 
        554, 555, and 556 of title 5, United States Code.-
    (c) Appeals.--An aggrieved person or the Board may file an appeal 
of a decision issued under subsection (b) to the United States Court of 
Federal Claims. The appeal of such a decision shall be--
            (1) filed within 60 days after the date that the decision 
        was issued by the administrative law judge; and
            (2) reviewed in accordance with chapter 7 of title 5, 
        United States Code.
    (d) Final Orders.--
            (1) In general.--A decision issued under subsection (b) 
        shall become a final order of the Board 60 days after the 
        issuance of the decision unless within such 60-day period an 
        aggrieved person or the Board files an appeal of the decision 
        under subsection (c).
            (2) Judicial review.--A decision for which an appeal is not 
        filed within the 60-day period provided under subsection (c) 
        becomes a final order that is not subject to judicial review by 
        any court or tribunal.
    (e) Board Action.--The Board shall, as expeditiously as 
practicable, make payment to each claimant and perform other actions 
that may be required by a final order issued under subsection (d).

SEC. 510. FIRST MOVER PROJECTS.

    (a) Project Selection.--
            (1) In general.--The Secretary shall competitively select 
        10 carbon capture and geological sequestration projects as 
        first mover projects in accordance with the criteria prescribed 
        in paragraph (2). Each first mover project selected under this 
        paragraph shall be indemnified from liabilities arising from 
        the injection of carbon dioxide into the storage facility in 
        accordance with an agreement executed under subsection (b).
            (2) Eligibility criteria.--A carbon capture and geological 
        sequestration project shall be eligible for selection as a 
        first mover project under paragraph (1) if the project--
                    (A) demonstrates the commercial application of an 
                integrated system for the capture, injection, 
                monitoring, and long term geological storage of carbon 
                dioxide;
                    (B) injects at least 1,000,000 tons of carbon 
                dioxide each year into a proposed geological storage 
                site that is capable of long-term storage of the 
                injected carbon dioxide, as provided under paragraph 
                (3);
                    (C) possesses the land or interests in land 
                necessary for the injection and storage of the carbon 
                dioxide at the geological storage site;
                    (D) obtains all necessary permits for the injection 
                of carbon dioxide into a suitable underground formation 
                and complies with the conditions of any necessary 
                permits that protect health, environment and safety; 
                and
                    (E) commits to maintain the financial protection 
                for remediation and civil claims, as described in 
                subsection (b)(2).
            (3) Phased development of project.--A project may satisfy 
        the annual carbon dioxide injection requirement of paragraph 
        (2)(B) through a phased development, so long as--
                    (A) the Secretary establishes a legally binding 
                schedule for the phase-in of the project; and
                    (B) such schedule requires the project to achieve 
                an annual injection level of 1,000,000 tons by no later 
                than January 1, 2020.
    (b) Indemnification Agreements.--
            (1) In general.--Notwithstanding section 1341 of title 31, 
        United States Code, but subject to limitations in appropriation 
        Acts, the Secretary shall execute indemnification agreements 
        for the 10 first mover projects that the Secretary has selected 
        under subsection (a). Each agreement executed under this 
        paragraph shall indemnify owners and operators of the first 
        mover project for all or part of the costs incurred to satisfy 
        remediation and civil claims (whenever made) that arise from 
        injection of carbon dioxide into a storage facility, as 
        determined by the Secretary in accordance with the requirements 
        of this section.
            (2) Scope of indemnification.--The owners and operators of 
        a first mover project shall maintain financial protection in a 
        form and in an amount acceptable to the Secretary. The 
        indemnification authorized under paragraph (1) shall apply to 
        the costs incurred for remediation and civil claims that are in 
        excess of the amount of liability covered by financial 
        protection maintained for the project under paragraph (1).
            (3) Conditions and requirements.--The Secretary may impose 
        such conditions on indemnification agreements executed under 
        paragraph (1) as may be necessary or appropriate to protect the 
        financial interest of the United States, including a 
        requirement to limit the indemnification provided to each first 
        mover project under this section during the stewardship period 
        to the extent that the Secretary determines that potential 
        long-term liabilities can be adequately addressed through the 
        coverage provided by the Trust Fund under other provisions of 
        this title.
    (c) Consolidation of Environmental Reviews.--In performing 
environmental reviews that may apply to an indemnification agreement 
for a particular first mover project under subsection (b), the 
Secretary shall rely on prior environmental reviews that were performed 
to assess other major Federal actions relating to the development or 
operation of that first mover project under 102 of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332).

SEC. 511. RELATIONSHIP TO OTHER LAW.

    (a) Prior to Stewardship Period.--This title does not affect the 
application of any Federal or State law to any storage facility for 
which a regulatory authority has not issued certificate of completion.
    (b) During the Stewardship Period.--This title does not affect the 
application to the Trust Fund, the Board or any stewardship agency of 
any Federal or State environmental law with respect to the injection of 
carbon dioxide at any certified post-closure facility.
    (c) State Stewardship Laws.--This title does not affect the 
application of any State law related to geologic sequestration trust 
funds that may apply to a storage facility during the operational or 
post-injection phase prior to the stewardship period.
                                 <all>
```