II 

111TH CONGRESS 

2D SESSION S. 3589 

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 Energy and 

Natural Resources 

A BILL 

To provide financial incentives and a regulatory framework 

to facilitate the development and early deployment of 

carbon capture and sequestration technologies, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

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

5 Sequestration Deployment Act of 2010’’. 

6 SEC. 2. TABLE OF CONTENTS. 

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


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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 

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. 

TITLE III—CCS TECHNOLOGY STANDARD FOR POWERPLANTS 

Sec. 301. CCS standards for coal-fueled power plants. 

Sec. 302. Consolidated review of Federal authorizations. 

TITLE IV—CARBON STORAGE STEWARDSHIP 

Sec. 401. Short title. 

Sec. 402. Purpose. 

Sec. 403. Definitions. 

Sec. 404. Stewardship responsibility. 

Sec. 405. Responsibility for payment of claims. 

Sec. 406. Carbon Storage Stewardship Trust Fund. 

Sec. 407. Payments from the Trust Fund. 

Sec. 408. Carbon Storage Stewardship Board. 

Sec. 409. Adjudication of public claims. 

Sec. 410. First mover projects. 

Sec. 411. Relationship to other law. 

1 TITLE I—CARBON CAPTURE AND 

2 SEQUESTRATION INNOVA3 TION PROGRAM 

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

6 (a) ESTABLISHMENT OF PROGRAM.— 

7 (1) IN GENERAL.—Within 12 months after the 

8 date of enactment of this Act, the Secretary of EnVerDate Mar 15 2010 04:15 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3589.IS S3589

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1 ergy shall establish a cooperative industry-govern2 ment research and development program, in addition 

3 to and in cooperation with the Office of Fossil Ener4 gy’s carbon capture and sequestration research and 

5 development program, to demonstrate novel and in6 novative technologies— 

7 (A) to capture or prevent carbon dioxide 

8 emissions from carbon-based fuels; 

9 (B) to enable the beneficial use of carbon 

10 dioxide; or 

11 (C) to enable the long-term storage of car12 bon dioxide. 

13 (2) PARTICIPATION OF NATIONAL LABORA14 TORIES AND UNIVERSITIES.—The program shall in15 clude the participation of the National Energy Tech16 nology Laboratory and may include the participation 

17 of other National Laboratories, universities, and 

18 other appropriate entities. 

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

20 demonstrating the technologies or approaches referred to 

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

22 percent of the cost of the development projects and the 

23 industry participant shall provide not more than 20 per24 cent of such cost. 


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1 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to the Secretary to carry 

3 out this section— 

4 (1) $100,000,000 for each of the fiscal years 

5 2011 through 2015; 

6 (2) $50,000,000 for each of the fiscal years 

7 2016 through 2020; and 

8 (3) $20,000,000 for each of the fiscal years 

9 2021 through 2025. 

10 SEC. 102. ANNUAL DEPARTMENT OF ENERGY ASSESSMENT. 

11 (a) IN GENERAL.— 

12 (1) DEPARTMENT OF ENERGY REPORT.—With13 in 1 year after the date of enactment of this Act and 

14 annually thereafter until the Secretary of Energy de15 termines that technology preventing the emission of, 

16 capturing, transporting, permanently storing or se17 questering, or putting to beneficial use carbon diox18 ide is available to the commercial marketplace, the 

19 Department of Energy shall conduct an assessment 

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

21 the existing Federal programs supporting such tech22 nology and report to the Secretary and the appro23 priate authorizing and appropriating committees of 

24 the Congress on the results of the assessment. 


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1 (2) GOVERNMENT ACCOUNTABILITY OFFICE RE2 VIEW.—Within 1 year after the first report is pro3 vided to the Secretary and to the appropriate au4 thorizing and appropriating committees of the Con5 gress under paragraph (1) and subsequently as 

6 needed until technology preventing the emission of, 

7 capturing, transporting, permanently storing or se8 questering, and putting to beneficial use carbon di9 oxide is available to the commercial marketplace, the 

10 Comptroller General shall conduct a review of the 

11 report described in paragraph (1) in accordance with 

12 subsection (c) of this section. 

13 (b) DEPARTMENT OF ENERGY REPORT REQUIRE14 MENTS.—The Department of Energy shall include in the 

15 report— 

16 (1) a detailed description of the existing pro17 grams, including each major program area, that con18 ducts or supports research, development, demonstra19 tion, and deployment of technology— 

20 (A) to prevent the emission of carbon diox21 ide or capture of carbon dioxide from sources, 

22 including fossil fuel-based power plants; 

23 (B) to transport carbon dioxide; 

24 (C) to store or sequester captured carbon 

25 dioxide permanently; or 


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1 (D) to put captured carbon dioxide to ben2 eficial use; 

3 (2) an assessment, based upon government lab4 oratory research experience, available industry re5 search experience, and such other data and informa6 tion as the Department of Energy deems useful and 

7 appropriate, to determine whether each major pro8 gram area and principal projects within these areas 

9 are designed to, and will, advance fundamental 

10 knowledge or achieve significant technical advance11 ment and materially improve the technology base to 

12 effectively address the prevention of carbon dioxide 

13 emissions or capture of carbon dioxide or the trans14 port, permanent storage, or beneficial use of cap15 tured carbon dioxide; and 

16 (3) an assessment of the Department of Ener17 gy’s estimated time frame and costs necessary to 

18 reasonably conclude that technology will be available 

19 to the commercial marketplace. 

20 (c) GOVERNMENT ACCOUNTABILITY OFFICE REVIEW

21 REQUIREMENTS.—The Government Accountability Office 

22 shall include in its review— 

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

24 estimated time frames and costs as reported pursu25 ant to subsection (b)(3) of this section; 


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1 (2) any recommendations that the Comptroller 

2 General deems appropriate and useful to improve 

3 the likelihood of achieving technological advance4 ments to mitigate carbon dioxide emissions or to ex5 pedite the availability of carbon capture and seques6 tration technology for the commercial marketplace; 

7 (3) an assessment of any legal or regulatory im8 pediment by any Federal agency or department that 

9 has arisen in relation to the deployment of carbon 

10 capture and storage technology, including any delays 

11 in the permitting of such technology or the construc12 tion or operation of any such facility; and 

13 (4) any other analyses the Government Ac14 countability Office deems necessary or appropriate. 

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

16 budget request for fiscal year 2012 and for each suc17 ceeding fiscal year through 2026, the President shall in18 clude in his budget request for the Department of Ener19 gy’s Fossil Energy Program a report that— 

20 (1) assesses the Department’s progress in im21 plementing the recommendations of the Government 

22 Accountability Office and compares the estimated 

23 costs of completing implementation of these rec24 ommendations to the requested budget levels; and 


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

2 preceding fiscal year toward achieving the goals of 

3 the program for which funding is requested. 

4 TITLE II—CARBON CAPTURE 

5 AND SEQUESTRATION 

6 PROJECTS 

7 SECTION 201. SHORT TITLE. 

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

9 ‘‘Carbon Capture and Sequestration Early and Effective 

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

11 ACT’’. 

12 SEC. 202. DEFINITIONS. 

13 (a) IN GENERAL.—In this subtitle: 

14 (1) CARBON CAPTURE.—The term ‘‘carbon cap15 ture’’ has the meaning given the term in section 

16 963(a) of the Energy Policy Act of 2005 (42 U.S.C. 

17 16293(a)). 

18 (2) CARBON SEQUESTRATION.—The term ‘‘car19 bon sequestration’’ has the meaning given the term 

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

21 (42 U.S.C. 16293(a)). 

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

23 Carbon Capture and Sequestration Program Part24 nership Council established under section 204(a). 


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

2 consumer’’ has the meaning given that term in sec3 tion 3 of the Public Utility Regulatory Policies Act 

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

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

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

7 3 of the Federal Power Act (16 U.S.C. 796). 

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

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

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

11 fuel. 

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

13 means coal, petroleum, or natural gas, or any deriv14 ative of coal, petroleum, or natural gas. 

15 (8) INSTITUTION OF HIGHER EDUCATION.—The 

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

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

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

19 (9) NATIONAL LABORATORY.—The term ‘‘Na20 tional Laboratory’’ has the meaning given the term 

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

22 U.S.C. 15801). 

23 (10) PROGRAM DIRECTOR.—The term ‘‘Pro24 gram Director’’ means the Program Director of the 


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1 special funding program appointed under section 

2 204(g). 

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

4 means the Secretary of Energy. 

5 (12) SPECIAL FUNDING PROGRAM.—The term 

6 ‘‘special funding program’’ means the special fund7 ing program for development and deployment of car8 bon capture, sequestration, and conversion tech9 nologies established in accordance with section 203. 

10 (13) STATE REGULATORY AUTHORITY.—The 

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

12 given the term in section 3 of the Public Utility Reg13 ulatory Policies Act of 1978 (16 U.S.C. 2602). 

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

15 States’’ means the States of the United States, the 

16 District of Columbia, and the territories and posses17 sions of the United States, including the territorial 

18 waters of the United States and the exclusive eco19 nomic zone. 

20 (b) MODIFICATION OF DEFINITIONS INCORPORATED

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

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

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

24 as subsections (b) through (e), respectively; and 


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1 (2) by inserting before subsection (b) (as so re2 designated) the following: 

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

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

5 capture’ means the process of capturing anthropo6 genic carbon dioxide from a stationary source or car7 bon dioxide in the ambient air. 

8 ‘‘(2) CARBON SEQUESTRATION.—The term ‘car9 bon sequestration’ means the act of storing carbon 

10 dioxide through physical, chemical, or biological 

11 processes that can prevent the carbon dioxide from 

12 reaching the atmosphere.’’; 

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

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

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

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

17 (b)’’. 

18 SEC. 203. SPECIAL FUNDING PROGRAM FOR DEVELOPMENT 

19 AND DEPLOYMENT OF CARBON CAPTURE, SE20 QUESTRATION, AND CONVERSION TECH21 NOLOGIES. 

22 (a) VIEWS OF STATE REGULATORY AUTHORITIES.— 

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

24 after the date of enactment of this Act, a State reg25 ulatory authority shall notify the Secretary in writVerDate Mar 15 2010 04:15 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S3589.IS S3589

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1 ing of the views of the State regulatory authority on 

2 the creation of the special funding program. 

3 (2) NOTICE OF TIMELINE.—As soon as prac4 ticable, but no later than 30 days after the date of 

5 enactment of this Act, the Secretary shall notify 

6 each State regulatory authority of the need to sub7 mit its views to the Secretary under paragraph (1) 

8 within 180 days after the date of enactment of this 

9 Act. 

10 (b) ESTABLISHMENT.—The Secretary shall establish 

11 the special funding program within one year after the date 

12 of enactment of this Act unless the State regulatory au13 thorities of at least 22 States (treating the District of Co14 lumbia and Puerto Rico as States for such purpose) sub15 mit written notices of disapproval by the deadline estab16 lished under subsection (a). 

17 (c) TERMINATION.— 

18 (1) ASSESSMENTS.—The authority of the Sec19 retary to collect assessments shall expire on the date 

20 that is 10 years after the date of the establishment 

21 of the special funding program. 

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

23 to make funding awards under this subtitle shall ex24 pire on the date that is 15 years after the date of 

25 the establishment of the special funding program. 


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

2 each year, the Secretary shall publish and submit to Con3 gress and each State regulatory authority a report that— 

4 (1) includes an identification and description of 

5 all programs and projects undertaken under the spe6 cial funding program during the previous fiscal year; 

7 and 

8 (2) describes the allocation or planned alloca9 tion of resources of the special funding program for 

10 each program and project in the current and subse11 quent fiscal year. 

12 SEC. 204. CARBON CAPTURE AND SEQUESTRATION PRO13 GRAM PARTNERSHIP COUNCIL. 

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

15 and appoint the members of, a Carbon Capture and Se16 questration Program Partnership Council to carry out du17 ties described in subsection (f). 

18 (b) VOTING MEMBERSHIP.— 

19 (1) TOTAL VOTING MEMBERSHIP; QUORUM.— 

20 The Council shall be composed of not more than 15 

21 voting members. A majority of the voting members 

22 shall constitute a quorum for official action of the 

23 Council. 


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1 (2) MINIMUM REPRESENTATION.—The voting 

2 membership of the Council shall include at least 1 

3 representative of each of the following: 

4 (A) Investor-owned utilities. 

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

6 local government. 

7 (C) Rural electric cooperatives. 

8 (D) Fossil fuel producers. 

9 (E) Nonprofit organizations. 

10 (F) Independent generators or wholesale 

11 power providers. 

12 (G) Consumer groups. 

13 (H) Employee organizations (as defined in 

14 section 3(4) of the Employee Retirement In15 come Security Act of 1974 (29 U.S.C. 

16 1002(4))). 

17 (3) REPRESENTATION OF ELECTRIC UTILI18 TIES.—A majority of the voting membership of the 

19 Council shall be representatives of electric utilities 

20 selling fossil fuel-based electricity to electric con21 sumers subject to assessment under section 206. 

22 (4) NOMINATIONS.—The Secretary shall ap23 point the Council members representing entities de24 scribed in subparagraphs (A), (B), (C), and (F) of 

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


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1 least 2 candidates for each vacancy to be filled, sub2 mitted by— 

3 (A) the Edison Electric Institute, on behalf 

4 of investor-owned utilities; 

5 (B) the American Public Power Associa6 tion, on behalf of utilities owned by a State 

7 agency or unit of local government; 

8 (C) the National Rural Electric Coopera9 tive Association, on behalf of rural electric co10 operatives; and 

11 (D) the Electric Power Supply Association, 

12 on behalf of independent generators or whole13 sale power providers. 

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

15 may not participate in the review or approval of an 

16 application from an entity with which the voting 

17 member is affiliated. 

18 (c) NONVOTING MEMBERSHIP.—The Secretary shall 

19 appoint to the Council as nonvoting members— 

20 (1) the Under Secretary for Science; 

21 (2) the Assistant Secretary with responsibility 

22 for research and development of fossil fuels; 

23 (3) 3 representatives of State regulatory au24 thorities, chosen to represent each different trans25 mission interconnection, submitted by the National 


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1 Association of Regulatory Utility Commissioners; 

2 and 

3 (4) such additional officers and employees of 

4 the Federal Government as the Secretary determines 

5 are necessary for the Council to carry out the func6 tions of the Council effectively. 

7 (d) TERMS.— 

8 (1) IN GENERAL.—Except as otherwise pro9 vided in this paragraph, a voting member of the 

10 Council— 

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

12 (B) may serve not more than 2 full con13 secutive terms. 

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

15 the unexpired term of a voting member may serve 

16 not more than a total of 8 consecutive years. 

17 (3) REAPPOINTMENT OF FORMER VOTING MEM18 BERS.—A former voting member of the Council may 

19 be reappointed if the member has not been a mem20 ber of the Council for a period of at least 2 years. 

21 (4) INITIAL APPOINTMENT.—The Secretary 

22 shall make initial appointments of voting members 

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

24 staggered to provide for the selection of 3 members 

25 each year, as determined by the Secretary. 


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

2 (A) shall not affect the powers of the 

3 Council; and 

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

5 the original appointment was made. 

6 (e) PERSONNEL MATTERS.— 

7 (1) COMPENSATION.— 

8 (A) NON-FEDERAL EMPLOYEES.—A mem9 ber of the Council who is not an officer or em10 ployee of the Federal Government may be com11 pensated at a rate equal to the daily equivalent 

12 of the annual rate of basic pay prescribed for 

13 level IV of the Executive Schedule under section 

14 5315 of title 5, United States Code, for each 

15 day (including travel time) during which the 

16 member is engaged in the performance of the 

17 duties of the Council. 

18 (B) FEDERAL EMPLOYEES.—A member of 

19 the Council who is an officer or employee of the 

20 Federal Government shall serve without com21 pensation in addition to the compensation re22 ceived for the services of the member as an offi23 cer or employee of the Federal Government. 

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

25 Council shall be allowed travel expenses, including 


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1 per diem in lieu of subsistence, at rates authorized 

2 for an employee of an agency under subchapter I of 

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

4 away from the home or regular place of business of 

5 the member in the performance of the duties of the 

6 Council. 

7 (3) CHAIR.—The Secretary shall appoint a vot8 ing member of the Council to serve as the Chair of 

9 the Council. 

10 (4) EXECUTIVE SECRETARY.—The Secretary 

11 shall appoint an Executive Secretary in the Depart12 ment of Energy to assist the Council in the conduct 

13 of the duties of the Council. 

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

15 (1) advise, assist, consult with, and make rec16 ommendations to the Secretary and the Program Di17 rector on matters related to the activities carried out 

18 by and through the special funding program; 

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

20 cooperative agreements, and other transactions for 

21 which the approval of the Council is required under 

22 section 5(b); and 

23 (B) vote on whether to recommend for approval 

24 the applications; 


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1 (3) review and make recommendations on any 

2 intellectual property policies required to advance the 

3 purposes of the special funding program and to en4 courage individual ingenuity and innovation, and en5 sure that inventors, whose contributions to the devel6 opment of clean coal technology are not subject to 

7 the protections afforded by section 14 of the Steven8 son-Wydler Technology Innovation Act of 1980 (15 

9 U.S.C. 3710c), are provided protection of their intel10 lectual property rights that is not less than that af11 forded to inventors provided protection under section 

12 14 of that Act; 

13 (4) collect information on projects being carried 

14 out by other programs to advance the development 

15 and deployment of technologies for carbon capture, 

16 sequestration, and conversion; 

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

18 special funding program and projects to be carried 

19 out under the special funding program; and 

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

21 each State regulatory authority a copy of the plan; 

22 and 

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

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1 tor, at a location subject to the approval of the Pro2 gram Director. 

3 (g) PROGRAM DIRECTOR AND SENIOR PROGRAM

4 MANAGERS.— 

5 (1) APPOINTMENT.—The Secretary, in con6 sultation with the Council, shall appoint a Program 

7 Director for the special funding program, who 

8 shall— 

9 (A) have a background and qualifications 

10 especially appropriate to managing the special 

11 funding program; and 

12 (B) report directly to the Secretary. 

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

14 Program Director shall not exceed the rate payable 

15 for level V of the Executive Schedule under section 

16 5316 of title 5, United States Code. 

17 (3) SENIOR PROGRAM MANAGERS.— 

18 (A) IN GENERAL.—Notwithstanding sec19 tions 3304 and 3309 through 3318 of title 5, 

20 United States Code, the Program Director may 

21 recruit and directly appoint up to 5 highly 

22 qualified scientists, engineers, or critical tech23 nical personnel into the competitive service, to 

24 help manage the special funding program. 


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1 (B) EXCEPTION.—The authority granted 

2 by subparagraph (A) shall not apply to posi3 tions in the excepted service or the Senior Exec4 utive Service. 

5 (C) REQUIREMENTS.—In exercising the 

6 authority granted by subparagraph (A), the 

7 Secretary shall ensure that any action taken by 

8 the Secretary— 

9 (i) is consistent with the merit prin10 ciples of section 2301 of title 5, United 

11 States Code; and 

12 (ii) complies with the public notice re13 quirements of section 3327 of title 5, 

14 United States Code. 

15 (h) TECHNICAL ADVISORY COMMITTEE.— 

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

17 through the Program Director, and in consultation 

18 with the Council, shall appoint a technical advisory 

19 committee to provide independent scientific review of 

20 applications for grants, contracts, cooperative agree21 ments, and other transactions to be funded under 

22 the special funding program. 

23 (2) MEMBERSHIP.—The technical advisory 

24 committee shall be composed of not less than 7 

25 members appointed from among— 


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1 (A) institutions of higher education; 

2 (B) National Laboratories; 

3 (C) independent research institutions; 

4 (D) the National Energy Technology Lab5 oratory; and 

6 (E) other qualified institutions; 

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

8 technical advisory committee may not be affiliated 

9 with, or employed by, any organization represented 

10 by voting members of the Council. 

11 (4) DUTIES.— 

12 (A) PEER REVIEW.—The technical advi13 sory committee shall provide independent as14 sessments and technical evaluations, and make 

15 recommendations to the Council, on all applica16 tions for funding under the special funding pro17 gram. 

18 (B) PROGRAMMATIC ASSESSMENTS.— 

19 (i) IN GENERAL.—The technical advi20 sory committee may provide an inde21 pendent review of other technical matters 

22 relating to the special funding program, in23 cluding— 

24 (I) approaches to prioritizing 

25 technologies; 


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1 (II) appropriateness of engineer2 ing techniques; 

3 (III) monitoring and verification 

4 technologies for sequestration; 

5 (IV) geological site selection; and 

6 (V) cost control measures for 

7 projects. 

8 (ii) RECOMMENDATIONS.—The tech9 nical advisory committee may make rec10 ommendations to the Secretary concerning 

11 the types of investments, scientific re12 search, or engineering practices that would 

13 best further the purposes of this subtitle. 

14 (C) PUBLIC AVAILABILITY.—Except for in15 formation exempt from disclosure under para16 graphs (4) and (6) of section 552(b) of title 5, 

17 United States Code, all reports and evaluations 

18 made by the technical advisory committee shall 

19 be made available to the public when the re20 ports and evaluations are received by the Coun21 cil. 

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

23 technical advisory committee shall be allowed travel 

24 expenses, including per diem in lieu of subsistence, 

25 at rates authorized for an employee of an agency 


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

2 States Code, while away from the home or regular 

3 place of business of the member in the performance 

4 of the duties of the committee. 

5 SEC. 205. FUNCTIONS AND ADMINISTRATION OF THE SPE6 CIAL FUNDING PROGRAM. 

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

8 support projects to accelerate the commercial availability 

9 of carbon capture and sequestration technologies and 

10 methods, including technologies that capture and seques11 ter, or capture and convert, carbon dioxide. In making 

12 awards under the program, the Program Director shall 

13 give priority to projects that include cost sharing, although 

14 cost sharing is not mandatory. 

15 (b) PROJECT APPROVAL.—The Program Director 

16 shall make awards for grants, contracts, cooperative 

17 agreements, and other transactions under this subtitle 

18 only if the award is— 

19 (1) recommended to the Council by the tech20 nical advisory committee established under section 

21 204(h), after scientific and technical peer review; 

22 (2) approved by the voting members of the 

23 Council; 

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

25 States; and 


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

2 high probability of carbon capture and sequestration 

3 development and deployment potential. 

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

5 Program Director shall ensure, to the maximum extent 

6 practicable, that grants, contracts, cooperative agree7 ments, and other transactions funded under the special 

8 funding program support demonstrations of carbon cap9 ture and sequestration technology projects that— 

10 (1) are capable of advancing the technologies to 

11 commercial readiness; 

12 (2) encompass each of the different coal types 

13 and other fossil fuel varieties; 

14 (3) are geographically diverse; 

15 (4) involve diverse sequestration media; 

16 (5) employ capture and sequestration, or cap17 ture and conversion, technologies potentially suitable 

18 for new or retrofit applications; and 

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

20 generation of at least 10 gigawatts. 

21 (d) ELIGIBLE ENTITIES.—Entities eligible for fund22 ing under this subtitle include— 

23 (1) electric utilities selling fossil fuel-based elec24 tricity; 

25 (2) institutions of higher education; 


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1 (3) National Laboratories; 

2 (4) Federal research agencies; 

3 (5) State research agencies; 

4 (6) nonprofit organizations; and 

5 (7) consortiums of 2 or more entities described 

6 in paragraphs (1) through (6). 

7 (e) PURCHASE OF CARBON DIOXIDE.—A grant, con8 tract, cooperative agreement, or other transaction under 

9 this subtitle may be used— 

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

11 sequestering carbon dioxide emissions, to purchase 

12 carbon dioxide if necessary to conduct tests of car13 bon sequestration sites; or 

14 (2) for other purposes consistent with this sub15 title. 

16 (f) ORGANIZATION OF FUNDING INTO TRANCHES.— 

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

18 the approval of the Council and the Secretary, may 

19 divide available funds into a series of tranches, each 

20 supporting the deployment of a specified quantity of 

21 electric generating capacity using carbon capture, se22 questration, or conversion technologies. 

23 (2) FORM OF FUNDING.—If the Program Direc24 tor, the Council, and the Secretary agree to dis25 tribute funds by tranche under this subsection, the 


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1 Program Director shall distribute funds to eligible 

2 projects through grants, contracts, cooperative 

3 agreements, and other transactions under this sub4 title in a manner that— 

5 (A) provides higher funding for projects 

6 that are designed to achieve higher levels of 

7 capture and sequestration or capture and con8 version; 

9 (B) takes into account the projected cost 

10 of electricity to capture carbon dioxide emis11 sions from the project; 

12 (C) decreases the funding available for 

13 projects in successive tranches; and 

14 (D) defrays the reasonable incremental 

15 capital and operating costs associated with im16 plementation of the carbon capture and seques17 tration or carbon capture and conversion tech18 nologies. 

19 (g) WAGE RATE ASSURANCES.— 

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

21 require recipients of awards under this subtitle to 

22 provide assurances that all laborers and mechanics 

23 employed by contractors and subcontractors in the 

24 construction, repair, or alteration of new or existing 

25 facilities performed in order to carry out a developVerDate Mar 15 2010 04:15 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S3589.IS S3589

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1 ment or deployment activity authorized under this 

2 subtitle shall be paid wages at rates not less than 

3 those prevailing on similar construction in the local4 ity, as determined by the Secretary of Labor in ac5 cordance with subchapter IV of chapter 31 of title 

6 40, United States Code. 

7 (2) AUTHORITY AND FUNCTIONS.—With re8 spect to the labor standards in this subsection, the 

9 Secretary of Labor shall have the authority and 

10 functions set forth in Reorganization Plan Num11 bered 14 of 1950 (15 Fed. Reg. 3176; 5 U.S.C. Ap12 pendix) and section 3145 of title 40, United States 

13 Code. 

14 (h) RELATION TO EXISTING AUTHORITIES.— 

15 Projects funded under this subtitle to inject carbon dioxide 

16 into geological formations shall be carried out in accord17 ance with this subtitle and section 963 of the Energy Pol18 icy Act of 2005 (42 U.S.C. 16293) and related provisions 

19 of that Act. 

20 (i) RESTRICTIONS ON FUNDING.— 

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

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

23 megawatts, shall not be eligible for support under 

24 the special funding program. 


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1 (2) DEDICATION OF FUNDS.—Except as pro2 vided in subsection (j), the special funding program 

3 shall use all funds derived from assessments under 

4 section 6 to fund grants, contracts, cooperative 

5 agreements, and other transactions under this sub6 title. 

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

8 percent of the funds collected for any fiscal year under 

9 section 6 may be used for the administrative expenses of 

10 carrying out the special funding program. 

11 SEC. 206. ASSESSMENTS AND FUNDING. 

12 (a) AMOUNT.— 

13 (1) IN GENERAL.—For each fiscal year fol14 lowing the establishment of the special funding pro15 gram, the Secretary shall collect an assessment on 

16 electric utilities for all fossil fuel-based electricity 

17 sold to electric consumers, as determined under sec18 tion 208. 

19 (2) FUEL TYPE RATE.—The assessments de20 scribed in paragraph (1) shall— 

21 (A) reflect the relative carbon dioxide emis22 sion rates of different fossil fuel-based elec23 tricity; and 

24 (B) initially shall be not less than the fol25 lowing amounts for coal, natural gas, and oil: 


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Fuel type rate of assessment per kilowatt hour 

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

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

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

1 (3) ADJUSTMENTS.—The Secretary may adjust 

2 the amount of assessments on fossil fuel-based elec3 tricity to reflect changes in the expected quantities 

4 of the electricity from different fuel types so that the 

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

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

7 year. 

8 (b) TREATMENT OF ASSESSMENTS.— 

9 (1) GENERAL RULE.—Notwithstanding section 

10 3302 of title 31, United States Code, all amounts 

11 collected by the Secretary under this section shall— 

12 (A) be credited as offsetting collections to 

13 carry out activities authorized under section 

14 205; 

15 (B) be available for expenditure only to 

16 pay the costs of carrying out the activities au17 thorized under section 205; 

18 (C) be available only to the extent provided 

19 for in advance in an appropriations Act; and 

20 (D) remain available until expended. 

21 (2) EXCEPTION.—Notwithstanding paragraph 

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

23 fiscal year whether an appropriations Act has approVerDate Mar 15 2010 04:15 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\S3589.IS S3589

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1 priated the total amount of actual fees collected in 

2 advance of that fiscal year by the Secretary under 

3 this section. If the amounts specified under this 

4 paragraph for that fiscal year have not been appro5 priated by such date for expenditure to carry out ac6 tivities under section 205, then such amounts shall 

7 be immediately available for such expenditure by the 

8 Board without fiscal year limitations and without 

9 further appropriations. 

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

11 other property interests acquired under projects conducted 

12 under this subtitle in any entity, including the United 

13 States. 

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

15 5 years after completion of the operations phase of a 

16 grant, contract, cooperative agreement, or other trans17 action under this subtitle the Secretary may provide ap18 propriate protections (including exemptions from sub19 chapter II of chapter 5 of title 5, United States Code) 

20 against the dissemination of information that— 

21 (1) results from demonstration activities carried 

22 out under this subtitle; and 

23 (2) would be a trade secret or commercial or fi24 nancial information that is privileged or confidential 

25 if the information had been obtained from and first 


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1 produced by a non-Federal party participating in the 

2 project. 

3 (e) REVERSION OF UNUSED FUNDS.—Effective be4 ginning on the date that is 7 years after the establishment 

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

6 through the Program Director, does not obligate at least 

7 75 percent of the available proceeds of the assessed fees 

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

9 or similar circumstances, the Secretary, without further 

10 appropriation, shall reimburse the remaining unobligated 

11 balance of the fees, less administrative and other expenses 

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

13 the fees were assessed, in proportion to the collected as14 sessments of the electric utilities. 

15 SEC. 207. ERCOT. 

16 (a) DEFINITIONS.—In this section: 

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

18 Electric Reliability Council of Texas. 

19 (2) LOAD-SERVING ENTITY.—The term ‘‘load20 serving entity’’ has the meaning given the term in 

21 ERCOT Protocols in effect on the date of enactment 

22 of this Act. 

23 (3) QUALIFIED SCHEDULING ENTITY.—The 

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


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1 given the term in ERCOT Protocols in effect on the 

2 date of enactment of this Act. 

3 (4) RENEWABLE ENERGY CREDIT.—The term 

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

5 term by the Public Utility Commission of Texas pur6 suant to section 39.904(b) of the State of Texas’s 

7 Public Utility Regulatory Act of 1999 as in effect on 

8 the date of enactment of this Act. 

9 (b) ASSESSMENT, COLLECTION, AND REMIT10 TANCE.— 

11 (1) IN GENERAL.—Notwithstanding any other 

12 provision of this subtitle, within ERCOT, the assess13 ment required under section 206 shall be— 

14 (A) levied directly on qualified scheduling 

15 entities, or successor entities of the qualified 

16 scheduling entities; 

17 (B) charged in an amount that is con18 sistent with other charges imposed on qualified 

19 scheduling entities as a fee on energy used by 

20 the load-serving entities; and 

21 (C) collected and remitted by ERCOT to 

22 the Secretary in the amounts and in the same 

23 manner as described in section 205. 

24 (2) REQUIREMENTS.—The assessment amounts 

25 referred to in paragraph (1) shall— 


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1 (A) be determined by the quantity and 

2 types of fossil fuel-based electricity delivered di3 rectly to all electric consumers in the prior cal4 endar year beginning with the year ending im5 mediately prior to the beginning of the period 

6 described in section 203(c); and 

7 (B) take into account the number of re8 newable energy credits retired by the load-serv9 ing entities represented by a qualified sched10 uling entity within the prior calendar year. 

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

12 percent of the funds collected for any fiscal year by 

13 ERCOT under this section may be used for the adminis14 trative expenses incurred in the determination, collection, 

15 and remittance of the assessments to the Secretary. 

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

17 a copy of the annual audit of ERCOT relating to the ad18 ministration of this section. 

19 SEC. 208. DETERMINATION OF FOSSIL FUEL-BASED ELEC20 TRICITY DELIVERIES. 

21 (a) FINDINGS.—Congress finds that— 

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

23 collected based on the quantity of fossil fuel-based 

24 electricity sold by each electric utility to electric con25 sumers; 


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1 (2) because many electric utilities purchase all 

2 or part of the electricity needed by the electric con3 sumers of the utilities from other entities, it may not 

4 be practicable to determine the precise fuel mix for 

5 the power sold by each individual electric utility; and 

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

7 often on a regional basis with reference to Regional 

8 Transmission Organization or North American Elec9 tric Reliability Corporation regions, to make the de10 terminations necessary for making the assessments. 

11 (b) PROPOSED REGULATION.— 

12 (1) IN GENERAL.—The Secretary, in consulta13 tion with the Energy Information Administration, 

14 shall issue for notice and comment a proposed regu15 lation to determine the level and type of fossil fuel16 based electricity delivered to electric consumers by 

17 each electric utility in the United States during the 

18 most recent calendar year or other period deter19 mined by the Secretary to be most appropriate. 

20 (2) BALANCING.—The proposed regulation shall 

21 balance the need to be efficient, reasonably precise 

22 and timely, taking into account the nature and cost 

23 of data currently available and the nature of mar24 kets and regulations in effect in various regions of 

25 the United States. 


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1 (3) VARYING METHODOLOGIES.—The Secretary 

2 may apply different methodologies in different re3 gions of the United States if appropriate to obtain 

4 the best balance of factors described in paragraph 

5 (2). 

6 (c) FINAL REGULATION.— 

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

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

9 opportunity for comment, the Secretary shall pro10 mulgate a final regulation under this section for de11 termining the level and type of fossil fuel-based elec12 tricity delivered to electric consumers by each elec13 tric utility in the United States during the appro14 priate period, as determined by the Secretary. 

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

16 final regulation, the Secretary may— 

17 (A) consider opportunities and costs to de18 velop new data sources in the future; and 

19 (B) issue recommendations for the Energy 

20 Information Administration or other agencies to 

21 collect the data. 

22 (3) UPDATES.—After notice and opportunity 

23 for comment, the Secretary may, by regulation, up24 date and modify the methodology for making deter25 minations under this section. 


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1 (d) ANNUAL DETERMINATIONS.— 

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

3 regulation promulgated under subsection (c), the 

4 Secretary shall— 

5 (A) make annual determinations of the 

6 quantities and types for each electric utility; 

7 and 

8 (B) publish the determinations in the Fed9 eral Register. 

10 (2) USE.—Determinations described in para11 graph (1) shall be used— 

12 (A) to conduct the referendum under sec13 tion 203(a); and 

14 (B) by the Secretary in applying any as15 sessment under this subtitle. 

16 (e) REHEARING AND JUDICIAL REVIEW.— 

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

18 any electric utility that believes that the Secretary 

19 has misapplied the methodology in the final regula20 tion in determining the quantity and types of fossil 

21 fuel-based electricity delivered by the electric utility 

22 may seek a rehearing of the determination not later 

23 than 30 days after publication of the determination 

24 in the Federal Register. 


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

2 a rehearing petition is formally requested, the Sec3 retary shall rule on the rehearing petition. 

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

5 Secretary under paragraph (2) shall be final and 

6 subject to judicial review in the United States Court 

7 of Appeals for the District of Columbia Circuit. 

8 SEC. 209. COMPLIANCE WITH ASSESSMENTS. 

9 (a) IN GENERAL.—The Secretary may bring an ac10 tion in the appropriate court of the United States to com11 pel compliance with an assessment levied by the Secretary 

12 under this subtitle. 

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

14 under this section may require payment by the defendant 

15 of the costs incurred by the Secretary in bringing the ac16 tion. 

17 SEC. 210. MIDCOURSE REVIEW. 

18 Not later than 5 years after the establishment of the 

19 special funding program, the Comptroller General of the 

20 United States shall submit to Congress a report that— 

21 (1) evaluates the activities of the special fund22 ing program, including— 

23 (A) project selection and methods of dis24 bursement of assessed fees; 


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1 (B) impacts on the prospects for commer2 cialization of carbon capture and sequestration 

3 technologies; and 

4 (C) the extent to which assessed fees sup5 port the qualified projects received by the Sec6 retary; and 

7 (2) makes such recommendations as the Comp8 troller General of the United States considers to be 

9 appropriate in each of those areas. 

10 SEC. 211. RECOVERY OF COSTS. 

11 (a) IN GENERAL.—An electric utility, the trans12 mission, delivery, or sales of electric energy of which are 

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

14 an opportunity to recover the full amount of the prudently 

15 incurred costs associated with complying with this subtitle, 

16 consistent with applicable State or Federal law. 

17 (b) RATEPAYER REBATES.—Regulatory authorities 

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

19 order rebates to ratepayers to the extent that electric utili20 ties selling fossil fuel-based electricity to electric con21 sumers are reimbursed undedicated or unassigned bal22 ances in accordance with section 206(c). 


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1 TITLE III—CCS TECHNOLOGY 

2 STANDARD FOR POWERPLANTS 

3 SEC. 301. CCS STANDARDS FOR COAL-FUELED POWER 

4 PLANTS. 

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

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

7 111 the following: 

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

9 PLANTS. 

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

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

12 means an electric utility generating unit that derives 

13 50 percent of its annual heat input from coal, petro14 leum coke, or any combination of these fuels. 

15 ‘‘(2) INITIALLY PERMITTED.—The term ‘ini16 tially permitted’ means, with respect to an electric 

17 utility generating unit, that the owner or operator of 

18 a unit has received a preconstruction approval or 

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

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

21 appeal of such approval or permit has not been ex22 hausted. A subsequent modification of any such ap23 proval or permit, ongoing administrative or court re24 view, appeals, or challenges, or the existence or toll25 ing of any time to pursue further review, appeals, or 


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1 challenges shall not affect the date on which a unit 

2 is considered to be initially permitted. 

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

4 term ‘treated generating capacity’ means the portion 

5 of the total generating capacity of an electric gener6 ating unit (or, in the case of an industrial unit, an 

7 equivalent capacity) for which the flue gas or fuel 

8 gas is treated by carbon capture and sequestration 

9 technology.’’. 

10 ‘‘(b) STANDARDS.— 

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

12 initially permitted on or after the date of the enact13 ment of the Carbon Capture and Sequestration De14 ployment Act of 2010 and before January 1, 2020, 

15 shall achieve, by the compliance date set forth in 

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

17 that reflects 50 percent reduction from the carbon 

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

19 an annual basis. 

20 ‘‘(2) COMPLIANCE.—Compliance with the re21 quirement set forth in paragraph (1) shall be re22 quired by the earlier of the following: 

23 ‘‘(A) Four years after the date the Admin24 istrator has published a report that there are in 

25 commercial operation in the United States elecVerDate Mar 15 2010 04:15 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\S3589.IS S3589

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1 tric generating units or other stationary sources 

2 equipped with carbon capture and sequestration 

3 technology that, in the aggregate— 

4 ‘‘(i) have a total of at least 10 

5 gigawatts of treated generating capacity; 

6 and 

7 ‘‘(ii) include electric generating units 

8 with at least 4 gigawatts of treated gener9 ating capacity which units are capturing 

10 and sequestering in deep geologic saline 

11 formations the aggregate at least 24 mil12 lion tons of carbon dioxide per year, cal13 culated on an aggregate annualized basis; 

14 or 

15 ‘‘(B) the later of— 

16 ‘‘(i) January 1, 2030; or 

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

18 under section 102(b) determines that it is 

19 reasonable to conclude that technology is 

20 available to the commercial marketplace. 

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

22 date of enactment of the Carbon Capture and Sequestra23 tion Deployment Act of 2010, the Administrator shall pro24 mulgate regulations to carry out the requirements of this 

25 section. 


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1 ‘‘(d) COMPLIANCE WITH STANDARDS.—Not with2 standing other provisions of law, no unit subject to stand3 ards under subsection (b) shall be deemed subject to sec4 tion 111 of this Act for emissions of carbon dioxide. Any 

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

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

7 for carbon dioxide.’’. 

8 (b) COMPLIANCE AND JUDICIAL REVIEW.—Sections 

9 114 and 307 of such Act are each amended by striking 

10 ‘‘section 111’’ in each place it appears and inserting ‘‘sec11 tion 111 or section 111A’’. 

12 SEC. 302. CONSOLIDATED REVIEW OF FEDERAL AUTHOR13 IZATIONS. 

14 (a) DESIGNATION OF LEAD AGENCY.— 

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

16 shall act as the lead agency for the purposes of co17 ordinating all applicable Federal authorizations and 

18 related environmental reviews with respect to an eli19 gible project, including any requirements of— 

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

21 seq.); 

22 (B) the Endangered Species Act of 1973 

23 (16 U.S.C. 1531 et seq.); 

24 (C) the Federal Water Pollution Control 

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


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1 (D) the National Environmental Policy Act 

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

3 (E) the Safe Drinking Water Act (42 

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

5 (2) OTHER AGENCIES.—Each Federal and 

6 State agency required to provide a Federal author7 ization for an eligible project shall cooperate with 

8 the Secretary and comply with the deadlines estab9 lished by the Secretary under subsection (b). 

10 (b) COORDINATION AND CONSOLIDATED REVIEW.— 

11 (1) SCHEDULE.—As the head of the lead agen12 cy, and in consultation with other agencies, the Sec13 retary shall establish a schedule for all Federal au14 thorizations with respect to each eligible project. In 

15 establishing the schedule, the Secretary shall— 

16 (A) set binding intermediate milestones 

17 and deadlines to ensure expeditious completion 

18 of all proceedings and final action on all Fed19 eral authorizations relating to the eligible 

20 project; 

21 (B) require that all permit decisions and 

22 related environmental reviews under applicable 

23 Federal laws shall be completed— 


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1 (i) within 1 year after the submission 

2 of a complete application for each permit 

3 decision or environmental review; or 

4 (ii) if an express requirement of an5 other provision of Federal law does not 

6 permit compliance with the 1-year deadline 

7 in clause (i), as soon thereafter as is prac8 ticable; and 

9 (C) coordinate, to the maximum extent 

10 practicable, any permitting and environmental 

11 reviews that apply to the eligible project only 

12 under State law. 

13 (2) MEMORANDUM OF UNDERSTANDING.—Not 

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

15 Act, the Secretary and the heads of all Federal 

16 agencies with authority to issue Federal authoriza17 tions shall execute a memorandum of understanding 

18 to ensure the coordinated and streamlined review 

19 and prompt issuance of Federal authorizations for 

20 eligible projects. 

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

22 shall establish and facilitate a pre-application review 

23 process to expedite the review of all Federal author24 izations, including permit decisions and related envi25 ronmental reviews, for any eligible project under apVerDate Mar 15 2010 04:15 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\S3589.IS S3589

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1 plicable Federal laws. The pre-application review 

2 process shall require each agency involved in the re3 view process to confer with prospective applicants 

4 and identify those issues of major concern to the 

5 agency and the general public regarding the eligible 

6 project. The pre-application review process shall re7 quire such agencies to provide a written response to 

8 an inquiry from a prospective applicant not later 

9 than 60 days after the completion of the pre-applica10 tion review process. 

11 (4) CONSOLIDATION OF ENVIRONMENTAL RE12 VIEWS.—The Secretary, in consultation with affected 

13 agencies, shall prepare a single environmental review 

14 document for assessing all major Federal actions re15 lated to any eligible project under section 102 of the 

16 National Environmental Policy Act of 1969 (42 

17 U.S.C. 4332). Agencies subject to such environ18 mental review requirements shall use the document 

19 as the basis for all decisions related to the eligible 

20 project. 

21 (5) FAILURE TO MEET SCHEDULE.—If a Fed22 eral or State agency does not complete a proceeding 

23 for an approval that is required for a Federal au24 thorization in accordance with the schedule estabVerDate Mar 15 2010 04:15 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\S3589.IS S3589

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1 lished by the Secretary under this subsection, the 

2 applicant may pursue remedies under subsection (d). 

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

4 with the cooperation of Federal and State agencies, main5 tain a complete consolidated record of all decisions made 

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

7 (or State agency acting under delegated Federal author8 ity) with respect to any Federal authorization. Such record 

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

10 of decisions made or actions taken of Federal and State 

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

12 record does not contain sufficient information, the Court 

13 may remand the proceeding to the Secretary for further 

14 development of the consolidated record. 

15 (d) JUDICIAL REVIEW.— 

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

17 Appeals for the circuit in which the eligible project 

18 is proposed to be constructed shall have original and 

19 exclusive jurisdiction over any civil action for the re20 view of— 

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

22 authorization, by a Federal agency (other than 

23 the Secretary) or State agency acting pursuant 

24 to Federal law to issue, including any order or 


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1 action to condition or deny any Federal author2 ization; and 

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

4 or State agency with respect to a Federal au5 thorization. 

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

7 authorization in accordance with the schedule estab8 lished by the Secretary under subsection (b)(1) shall 

9 be considered to be inconsistent with Federal law for 

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

11 (2) COURT ACTION.— 

12 (A) IN GENERAL.—The Court shall re13 mand the proceeding for a particular eligible 

14 project to the appropriate agency if the Court 

15 finds that— 

16 (i) there has occurred either— 

17 (I) an order or action described 

18 in paragraph (1)(A) that is incon19 sistent with the Federal law governing 

20 the Federal authorization for the eligi21 ble project; or 

22 (II) a failure to act as described 

23 in paragraph 1(B) with respect to the 

24 eligible project; and 


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

2 would prevent the siting, construction, or 

3 operation of the eligible project. 

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

5 order or action to the appropriate Federal or 

6 State agency under subparagraph (A), the 

7 Court shall provide specific direction to remedy 

8 any inconsistency with Federal law and set a 

9 reasonable schedule and appropriate deadlines 

10 for the agency to act on remand. 

11 (4) FILING CONSOLIDATED RECORD.—For any 

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

16 pursuant to subsection (c). 

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

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

20 (e) DEFINITIONS.—In this section: 

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

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

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


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

2 the amendments made by this Act. 

3 (3) FEDERAL AUTHORIZATION.—The term 

4 ‘‘Federal authorization’’— 

5 (A) means any authorization required 

6 under Federal law, whether administered by a 

7 Federal or State agency, with respect to the 

8 siting, construction, or operation of an eligible 

9 project; and 

10 (B) includes any permit, license, special 

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

14 siting, construction, or operation of an eligible 

15 project. 

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

17 the Secretary of Energy. 

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

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

22 section. 

23 (g) RELATIONSHIP TO OTHER LAWS.—Except as 

24 specifically provided, nothing in this section affects any 


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1 requirement of any Federal or State law, including the 

2 Federal laws described in subsection (a)(1). 

3 TITLE IV—CARBON STORAGE 

4 STEWARDSHIP 

5 SEC. 401. SHORT TITLE. 

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

8 SEC. 402. PURPOSE. 

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

11 (1) providing for long-term stewardship of 

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

15 (2) providing a system for compensation to any 

16 person that may suffer personal injury or property 

17 damage from stored carbon dioxide at such a site; 

18 (3) establishing financial responsibility and a 

19 dedicated funding mechanism for such stewardship 

20 and compensation; and 

21 (4) establishing a transitional program that 

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


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1 SEC. 403. DEFINITIONS. 

2 In this title: 

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

4 Carbon Storage Stewardship Board that is estab5 lished under section 408. 

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

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

10 the terms of the injection permits issued for the 

11 storage facility. 

12 (3) CERTIFICATE OF COMPLETION.—The term 

13 ‘‘certificate of completion’’ means a determination 

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

17 and any required monitoring and remediation at a 

18 storage facility, so that there is a reasonable basis 

19 to believe that carbon dioxide is and will continue to 

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

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

23 stewardship period. 

24 (4) CERTIFIED POST-CLOSURE STORAGE FACIL25 ITY.—The term ‘‘certified post closure storage facil26 ity’’ means a storage facility for which the reguVerDate Mar 15 2010 04:15 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\S3589.IS S3589

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1 latory authority has issued a certificate of comple2 tion. 

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

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

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

8 (A) any claim arising from breach of an 

9 express contract; and 

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

11 claim arising from— 

12 (i) willful violation of applicable rules 

13 of the regulatory authority; or 

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

16 of completion; and 

17 (iii) conduct that constitutes reckless 

18 or intentional misconduct by the project 

19 operator. 

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

24 (A) relates to health, safety, or the envi25 ronment that results from the injection of carVerDate Mar 15 2010 04:15 Jul 16, 2010 Jkt 089200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\S3589.IS S3589

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1 bon dioxide at a certified post-closure storage 

2 facility; 

3 (B) is authorized under Federal or State 

4 law; and 

5 (C) imposes an obligation relating to such 

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

8 (i) monitor the migration of carbon 

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

11 (ii) perform remediation at such facil12 ity; 

13 (iii) desist from any action that poses 

14 a health, safety, or environment risk; or 

15 (iv) take other such action that may 

16 be necessary to ensure the protection of 

17 health, safety or the environment. 

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

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

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

22 under section 408. 

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


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

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

4 the National Carbon Storage Stewardship Program 

5 established under section 407. 

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

7 operator’’ means the entity responsible for injection 

8 operations at a storage facility. 

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

10 claim’’— 

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

12 a third party for— 

13 (i) personal injury; 

14 (ii) property damage; 

15 (iii) trespass; or 

16 (iv) nuisance; but 

17 (B) does not include claims for punitive 

18 damages or non-economic losses. 

19 (12) REGULATORY AUTHORITY.—The term 

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

21 the State or Federal agency that issues an injection 

22 permit for such storage facility. If more than one 

23 agency has such authority with respect to a facility, 

24 the Board shall designate one of the permitting 


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1 agencies as the regulatory authority for such facility 

2 for purposes of carrying out this title. 

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

4 means action to remedy, mitigate, or correct any 

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

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

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

11 means the Secretary of Energy. 

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

14 stewardship responsibility under section 404. 

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

19 for the storage facility. 

20 (17) STEWARDSHIP RESPONSIBILITY.—The 

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

23 post-closure storage facilities in a State during the 

24 stewardship period, as provided in section 404. 


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

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

4 facility for enhanced oil or gas recovery, as provided 

5 by section 406(b)(1)(B). 

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

7 means the Carbon Storage Stewardship Trust Fund 

8 that is established under section 406. 

9 SEC. 404. STEWARDSHIP RESPONSIBILITY. 

10 (a) AGENCY RESPONSIBLE FOR STEWARDSHIP.—A 

11 State may accept stewardship responsibility for certified 

12 post-closure storage facilities in that State in accordance 

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

14 accept stewardship responsibility, then the Secretary shall 

15 have stewardship responsibility for certified post-closure 

16 storage facilities in that State. In accordance with such 

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

18 accepted stewardship responsibility fails to carry out such 

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

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

23 (1) RESPONSIBILITIES.—Upon issuance of the 

24 certificate of completion for a storage facility, the 

25 stewardship agency shall be responsible for providing 


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1 all monitoring and remediation of the carbon dioxide 

2 injected at that storage facility. The monitoring and 

3 remediation shall be conducted in accordance with 

4 standards prescribed by the Board under section 

5 407(c)(1). 

6 (2) REIMBURSEMENT OF AGENCY COSTS.—The 

7 Board shall reimburse the stewardship agency for all 

8 reasonable and verified costs that the stewardship 

9 agency has incurred for program administration and 

10 the performance of its stewardship responsibility, as 

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

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

15 (c) REIMBURSEMENT CONTRACTS.— 

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

17 agency that accepts stewardship responsibility for 

18 certified post-closure storage facilities within a State 

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

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

23 Section 1341 of title 31, United States Code shall 

24 not apply to any such contract. The contract shall 


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

2 States. 

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

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

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

8 SEC. 405. RESPONSIBILITY FOR PAYMENT OF CLAIMS. 

9 (a) CLAIMS AGAINST THE TRUST FUND.— 

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

12 claims related to the carbon dioxide injected at that 

13 certified post closure storage facility shall be filed 

14 with the Board and paid from Trust Fund. 

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

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

19 and remediation costs that may be incurred by such 

20 stewardship agency consistent with the standards es21 tablished under section 407(c) if— 

22 (A) the particular storage facility— 

23 (i) has completed injection operations 

24 at the storage facility; 


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1 (ii) has obtained all applicable permits 

2 for the injection of carbon dioxide into the 

3 storage facility and substantially complied 

4 with the requirements of those permits 

5 during the injection operations; 

6 (iii) has paid annual assessments into 

7 the Trust Fund, as required under section 

8 406(b), for a substantial majority of the 

9 carbon dioxide injected into the storage fa10 cility; and 

11 (iv) is unable to obtain a certificate of 

12 completion from the regulatory authority; 

13 and 

14 (B) a United States bankruptcy court has 

15 issued— 

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

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

20 storage facility; or 

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

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


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

3 (C) the Board determines that using the 

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

6 is in the public interest. 

7 (3) EXCLUSIVE BOARD JURISDICTION.—The 

8 Board shall have exclusive jurisdiction to adjudicate 

9 all public claims and petitions filed with Board 

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

11 409. 

12 (b) CLAIMS AGAINST STEWARDSHIP AGENCIES.— 

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

14 an agency that has stewardship responsibility for a 

15 certified post-closure storage facility is not subject to 

16 any civil claim as a result of assuming or carrying 

17 out its stewardship responsibility under this title. 

18 (2) FEDERAL AND STATE REQUIREMENTS.—An 

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

21 to— 

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

25 during the stewardship period; and 


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1 (B) civil claims for injunctive relief for the 

2 performance of— 

3 (i) all applicable Federal and State 

4 environmental requirements that relate 

5 to— 

6 (I) the ongoing monitoring, 

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

9 facility; and 

10 (II) maintaining the integrity of 

11 the storage facility during the stew12 ardship period; and 

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

15 stewardship period that is— 

16 (I) consistent with any applicable 

17 Federal or State environmental re18 quirements; and 

19 (II) necessary to remedy any 

20 breach in the integrity of the storage 

21 facility that is caused by the injection 

22 of carbon dioxide into such facility. 

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

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


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1 District Court of the United States in which the 

2 stewardship agency is located. 

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

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

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

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

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

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

16 against— 

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

18 the Board determines that there are insufficient 

19 funds in the Trust Fund to pay such claims, as pro20 vided in subsection (b)(5)(E) of section 406; 

21 (2) the owner of the facility; 

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

23 facility; 

24 (4) any transmission pipeline that transported 

25 carbon dioxide to the facility; or 


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1 (5) the generator of the carbon dioxide being 

2 handled by either the pipeline or storage facility. 

3 SEC. 406. CARBON STORAGE STEWARDSHIP TRUST FUND. 

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

5 Storage Stewardship Trust Fund is hereby established in 

6 the Treasury. The Trust Fund shall be administered by 

7 the Board. Notwithstanding section 3302 of title 31, 

8 United States Code, all assessments paid under subsection 

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

12 (1) covering the administrative costs of the 

13 Board under this title; and 

14 (2) making payments authorized by section 

15 407. 

16 (b) ASSESSMENTS.— 

17 (1) PAYMENT BY OPERATOR.— 

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

19 subparagraph (B), each project operator of a 

20 storage facility shall pay an annual assessment 

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

24 Act. The annual assessment shall be equal to 

25 the product of— 


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

5 (ii) the assessment amount, expressed 

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

8 the storage facility under paragraph (2). 

9 (B) ENHANCED OIL OR GAS RECOVERY.— 

10 In the case of the injection of carbon dioxide for 

11 the purpose of enhanced oil or gas recovery, the 

12 requirement to pay an annual assessment into 

13 the Trust Fund under subparagraph (A) shall 

14 apply— 

15 (i) solely to the net quantity of carbon 

16 dioxide injected into a storage facility for 

17 the purpose of the long-term geological 

18 storage of the carbon dioxide in order to 

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

21 regulatory program; and 

22 (ii) only to the extent that the project 

23 operator has relied upon geological storage 

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


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1 under a Federal or State regulatory pro2 gram. 

3 (C) SPECIAL RULE.— 

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

6 the Board may impose an assessment 

7 under subparagraph (A) upon any storage 

8 facility existing on the date of enactment 

9 of this Act for amounts of carbon dioxide 

10 injected prior to the establishment of the 

11 Trust Fund. The Board shall establish a 

12 reasonable schedule for the payment of the 

13 assessment authorized under the previous 

14 sentence, which shall not exceed 10 years. 

15 (ii) DEMONSTRATION PROJECTS.— 

16 The Board shall not impose an assessment 

17 under subparagraph (A) in the case of a 

18 demonstration project that— 

19 (I) injects carbon dioxide in 

20 amounts that are less than 1,000,000 

21 tons per year; 

22 (II) has an injection period of 5 

23 years or less; and 


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1 (III) poses a de minimis risk to 

2 health, safety, or the environment 

3 during the stewardship period. 

4 (iii) TRUST FUND COVERAGE.—In the 

5 case of a project that is exempted from the 

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

8 (I) perform any monitoring and 

9 remediation that may be necessary 

10 after the proper closure of the storage 

11 facility; 

12 (II) receive reimbursement for 

13 the reasonable costs for performing 

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

16 Board; and 

17 (III) be subject to civil claims for 

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

20 provided under section 405(b)(2)(B). 

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

23 taking into account the information, recommenda24 tions and guidance that the technical advisory com25 mittee may provide under section 408(g), the Board 


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1 shall determine by rule the assessment amount that 

2 applies to each ton of carbon dioxide injected into a 

3 storage facility in accordance with method prescribed 

4 in paragraph (3). 

5 (3) METHOD FOR CALCULATING ASSESSMENT

6 AMOUNT.—The Board shall establish by rule a 

7 method for calculating the assessment amount 

8 that— 

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

11 each type or class of storage facilities that the 

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

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

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

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

18 (C) accounts for the cumulative quantities 

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

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

24 make under section 407 at appropriate mile25 stones over the life of the Program for— 


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1 (i) reasonable future administrative 

2 costs that the Board expects to incur 

3 under the Act; 

4 (ii) reimbursement to stewardship 

5 agencies for the reasonable future costs 

6 that such agencies are likely to incur for 

7 program administration, monitoring, reme8 diation and the performance of other stew9 ardship responsibilities under section 404; 

10 and 

11 (iii) satisfaction of public claims on 

12 which the Board expects to make payment 

13 based on the reasonably anticipated risks 

14 of ultimate recovery against the Program 

15 for such costs under section 405; 

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

18 into the Trust Fund under this subsection at 

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

21 (F) reflects the best available engineering, 

22 geological, and scientific information, including 

23 the information, recommendations and guidance 

24 that the technical advisory committee may pro25 vide to the Board under section 408(g). 


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

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

6 a storage facility and categorize each identified 

7 formation into an appropriate type or class 

8 based on— 

9 (i) the type of formation, including 

10 depleted oil and gas formations, deep 

11 unmineable coal seems, and deep saline 

12 aquifers; 

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

15 (iii) proximity of the formation to 

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

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

20 (v) other factors that may affect the 

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

23 claims under section 408(g). 

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

25 class of geological formation identified under 


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1 subparagraph (A), the Board shall prepare a 

2 profile of the reasonably foreseeable risks that 

3 could result by the injection of carbon dioxide 

4 into such a formation. In developing such risk 

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

8 technical advisory committee may provide to the 

9 Board under section 408(g). 

10 (5) ADJUSTMENT OF ASSESSMENT AMOUNT.— 

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

13 amount established under paragraph (2) if the 

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

16 expected under section 407. The Board shall 

17 make its determination on the sufficiency of 

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

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

23 with the applicable provisions of this subsection 

24 and after opportunity for public notice and 

25 comment. 


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1 (B) LIMITS ON SIZE OF TRUST FUND.— 

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

4 balance for the Trust Fund and adjust the 

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

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

11 (I) apply the criteria prescribed 

12 in paragraph (3) for calculating the 

13 assessment amount; and 

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

18 408(g). 

19 (ii) REVIEW AND REVISION.—The 

20 Board shall review from time to time and 

21 revise as necessary and appropriate the 

22 minimum and maximum levels established 

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

24 subparagraph. The Board may make any 

25 revision to the minimum and maximum 


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1 levels only in accordance with applicable 

2 provisions of this subsection, including the 

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

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

7 project operators that have made payments into 

8 the Trust Fund under subsection (b) if the 

9 Board determines by rule that— 

10 (i) the Trust Fund is overfunded 

11 under subparagraph (A); 

12 (ii) a substantial reduction in future 

13 payments into the Trust Fund would be 

14 necessary to ensure that the amounts in 

15 the Trust Fund do not exceed maximum 

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

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

24 (D) INCREASES IN ASSESSMENT

25 AMOUNT.—The Board may increase the level of 


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

6 apply prospectively to annual assessments for 

7 carbon dioxide injected during the operation of 

8 a storage facility under paragraph (2). 

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

10 The project operator shall be responsible to pay 

11 claims under section 405 that are related to, or 

12 arising from, the injection and sequestration of 

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

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

18 by subparagraph (D). 

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

20 Secretary of the Treasury may invest any part of the 

21 amounts in the Trust Fund in interest-bearing securities 

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

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

24 shall be deposited in the Trust Fund. 


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

2 Trust Fund are insufficient to cover current obligations 

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

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

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

9 SEC. 407. PAYMENTS FROM THE TRUST FUND. 

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

11 administer the National Carbon Storage Stewardship Pro12 gram to— 

13 (1) reimburse agencies (or the Secretary as pro14 vided under section 404) for the costs incurred for 

15 program administration and in performing their 

16 stewardship responsibilities with respect to certified 

17 post-closure storage facilities, as provided in con18 tracts executed under section 404(c); and 

19 (2) make payments to satisfy— 

20 (A) public claims made with respect to cer21 tified post-closure storage facilities, as author22 ized by section 405(a)(1); and 

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

25 authorized by section 405(a)(2). 


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1 The payment of these expenditures by the Board 

2 shall be funded from the Trust Fund in accordance 

3 with provisions of this title. 

4 (b) PAYMENT SCHEDULES FOR PUBLIC CLAIMS.— 

5 The Board shall by rule prescribe payment schedules for 

6 determining the nature and amount of compensation that 

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

8 under section 405(a)(1). The payment schedules shall re9 flect the best available engineering, geological, and sci10 entific information, including the information, rec11 ommendations and guidance that the technical advisory 

12 committee may provide to the Board under section 408(g). 

13 (c) MONITORING AND REMEDIATION.— 

14 (1) STANDARDS.—The Board shall prescribe 

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

17 carbon dioxide injected at a certified post-closure 

18 storage facility. The standards shall— 

19 (A) be based on the applicable Federal and 

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

23 and 

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


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1 are necessary to protect the health, safety, and 

2 the environment during the stewardship period. 

3 (2) REIMBURSEMENT.— 

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

6 Fund for the costs that it has incurred for the 

7 monitoring and remediation in accordance with 

8 the standards established under paragraph (1) 

9 and contracts entered into under section 404. 

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

14 reimbursement contracts executed under section 

15 404(c). 

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

17 Board shall not pay claims otherwise authorized under 

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

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

22 with private insurers to provide claim adjustment services 

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


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1 is available for certified post-closure storage facilities at 

2 reasonable cost and on reasonable terms, the Board may 

3 purchase such insurance from private sources. 

4 SEC. 408. CARBON STORAGE STEWARDSHIP BOARD. 

5 (a) ESTABLISHMENT.—There is hereby established 

6 within the Department of Energy an independent agency 

7 to be know as the Carbon Storage Stewardship Board. 

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

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

14 (c) ORGANIZATION.— 

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

16 7 members, of which— 

17 (A) 4 shall be appointed by the President 

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

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

21 designated by the President in accordance with 

22 paragraph (6). 

23 (2) QUALIFICATIONS FOR MEMBERSHIP.—Each 

24 member of the Board shall— 

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


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

3 (i) carbon capture technologies; 

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

6 (iii) electric power generation; or 

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

9 or the environment (including drinking 

10 water supplies) by the injection of carbon 

11 dioxide into underground formations; and 

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

15 capacity for the Federal agency on one or more 

16 of the areas enumerated in subparagraph (B). 

17 (3) APPOINTMENT AND DESIGNATION.—Not 

18 later than 180 days after the date of enactment of 

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

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

22 (4) TERM OF SERVICE.— 

23 (A) IN GENERAL.—Except as provided 

24 under subparagraph (B), each non-Federal 

25 member of the Board shall serve for a term of 


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1 12 years and may be removed by the President 

2 only for neglect of duty, malfeasance, or other 

3 just cause for dismissal. Members of the Board 

4 who are full-time Federal employees shall serve 

5 at the pleasure of the President. 

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

7 the non-Federal members that the President 

8 first appoints to the Board— 

9 (i) the Chairperson shall serve a term 

10 of 6 years; and 

11 (ii) the 3 remaining non-Federal 

12 members to the Board (other than the 

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

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

16 (C) SERVICE UNTIL NEW APPOINTMENT.— 

17 The term of a non-Federal Board member shall 

18 continue after the expiration of the term of the 

19 member until the date on which a replacement 

20 is appointed by the President and confirmed by 

21 the Senate. 

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

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

25 that term. 


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1 (E) REAPPOINTMENT.—An individual who 

2 has served as a Board member for a term of 

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

5 (5) CHAIRPERSON.— 

6 (A) DESIGNATION.—The President shall 

7 designate a Chairperson from the non-Federal 

8 Board members that are representatives from 

9 industry under paragraph (6)(E). 

10 (B) TERM OF SERVICE.—The Chairperson 

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

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

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

14 consist of— 

15 (A) 1 employee from the Department of 

16 Energy; 

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

19 (C) 1 employee from the Department of 

20 Interior; 

21 (D) 1 representative from a public utility 

22 commission or other state governmental agency; 

23 and 


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

4 (7) LEVEL OF SERVICE.— 

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

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

9 the capacity of Chairperson. 

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

11 Board who are not serving as the Chair12 person— 

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

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

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

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

20 (iii) in the case of each individual who 

21 is employee of a Federal agency, may be 

22 assigned to serve on the Board without re23 imbursement to the Federal agency. 


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1 (8) COMPENSATION.—Non-Federal members of 

2 the Board shall be compensated at the rate pre3 scribed for Level IV of the Executive Schedule. 

4 (d) DUTIES AND RESPONSIBILITIES OF THE CHAIR5 PERSON.—The Chairperson shall be responsible on behalf 

6 of the Board for the executive and administrative oper7 ation of the Board. 

8 (e) FUNCTIONS.—The Board shall— 

9 (1) prescribe the form of cost reimbursement 

10 agreements under section 404(c), offer such agree11 ments to agencies that have stewardship responsi12 bility, and execute such agreements on behalf of the 

13 United States; 

14 (2) evaluate the adequacy of the Trust Fund 

15 and adjust the level of the assessment as authorized 

16 under section 406(b); 

17 (3) prescribe payment schedules for public 

18 claims under section 407(b) and monitoring and re19 mediation standards under section 407(c)(1); 

20 (4) determine, as provided in section 409, the 

21 extent to which— 

22 (A) public claims filed with the Board are 

23 payable under section 405(a)(1) in accordance 

24 with applicable payment schedules; and 


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1 (B) petitions to cover monitoring and re2 mediation costs incurred at storage facilities are 

3 payable under section 405(a)(2). 

4 (5) determine whether monitoring and remedi5 ation is required at a certified post-closure storage 

6 facility prescribed under section 407(c); 

7 (6) make payments under cost reimbursement 

8 agreements (including payments for monitoring and 

9 remediation costs) under section 404(c); and 

10 (7) exercise such other authorities as may be 

11 necessary or appropriate to carry out its functions 

12 under the preceding paragraphs of this subsection or 

13 other provisions of this title, including assignment of 

14 employees from other Federal agencies, employment 

15 of personnel, and entering into contracts. 

16 (f) POWERS.—The Board has the authority to— 

17 (1) prescribe, by rule or order, such require18 ments for monitoring certified post-closure storage 

19 facilities and for making such inspections and re20 ports as may be necessary or appropriate to carry 

21 out this title; 

22 (2) enter onto the premises or property of any 

23 storage facility to carry out this title; 


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1 (3) issue an order requiring a person to comply 

2 with order, rule or requirement that the Board has 

3 established under the Act; 

4 (4) commence a civil action in the United 

5 States District Court to recover from any project op6 erator any fees or assessments not paid when due, 

7 after notice and an opportunity to cure any defi8 ciency within 30 days of such notice; 

9 (5) bring an action against any person in the 

10 United States District Court to enforce the provi11 sions of this title or rules or orders thereunder, and 

12 to obtain appropriate injunctive or other relief; and 

13 (6) seek civil or criminal penalties for violations 

14 of provisions of this title, as provided under sub15 section (h). 

16 (g) TECHNICAL ADVISORY COMMITTEE.— 

17 (1) ESTABLISHMENT.—The Board shall estab18 lish an independent technical advisory committee 

19 composed of 7 members, each of whom has dem20 onstrated knowledge and expertise with respect to 

21 engineering, geological, or environmental matters re22 lated to the storage of carbon dioxide in suitable un23 derground formations. 

24 (2) FUNCTION.—The committee established 

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1 ommendations and guidance to the Board on tech2 nical matters related to— 

3 (A) the amount and duration of the assess4 ment that a project operator of a storage facil5 ity should pay under section 406(b) to cover fu6 ture anticipated payments from the Trust Fund 

7 for the purposes described under section 407; 

8 (B) the profile of reasonably foreseeable 

9 risks that the Board must develop for each type 

10 or class of geological formation under section 

11 406(b)(4)(B); 

12 (C) payment schedules for determining the 

13 nature and amount of compensation that the 

14 Board will pay from the Trust Fund for public 

15 claims, as provided under section 407(b); 

16 (D) standards for determining whether and 

17 to the extent that monitoring and remediation 

18 will be required for carbon dioxide injected at a 

19 certified post-closure storage facility, as pro20 vided under section 407(c); and 

21 (E) other determinations or actions that 

22 the Board must perform to carry out its re23 sponsibilities and duties under this title. 

24 (3) ADDITIONAL RESEARCH.—The committee 

25 established under paragraph (1) shall advise the 


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1 Board as to additional research and technical stud2 ies that may be necessary to perform the functions 

3 described under paragraph (2). 

4 (h) PENALTIES.— 

5 (1) CIVIL PENALTIES.—Any person that know6 ingly violates any provision of this title or any rule 

7 or order thereunder shall be subject to a civil pen8 alty of $10,000 per violation. 

9 (2) CRIMINAL PENALTIES.—Any person that 

10 knowingly and willfully violates any provision of this 

11 title or any rule or order thereunder shall be subject 

12 to a fine of $50,000 or imprisonment for a term of 

13 2 years, or both. 

14 (i) PUBLIC COMMENT AND JUDICIAL REVIEW.—In 

15 prescribing rules of general applicability under this title, 

16 the Secretary and the Board shall provide an opportunity 

17 for public notice and comment. Those rules shall be sub18 ject to review by the United States Courts of Appeal in 

19 accordance with chapter 158 of title 28, United States 

20 Code. All other agency actions under this title shall be re21 viewed in accordance with chapter 7 of title 5, United 

22 States Code. 

23 SEC. 409. ADJUDICATION OF PUBLIC CLAIMS. 

24 (a) PUBLIC CLAIMS OFFICE.— 


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1 (1) ESTABLISHMENT.—There is established 

2 within the Department of Energy an Office of Public 

3 Claims, which shall be composed of administrative 

4 law judges who are responsible for adjudicating pub5 lic claims filed with the Board under section 405(a). 

6 (2) APPOINTMENT.—After the first storage fa7 cility receives a certificate of completion from the 

8 appropriate regulatory authority, the Chairperson of 

9 the Board shall begin to appoint as many adminis10 trative law judges as are necessary to adjudicate 

11 public claims pending before the Board and may se12 lect for appointment qualified administrative law 

13 judges who are contracted from the Department of 

14 Energy or other Federal agencies. 

15 (3) INDEPENDENCE FROM BOARD.—The ad16 ministrative law judges within the Office of Public 

17 Claims shall establish and implement procedures to 

18 ensure the separation and independence of the Office 

19 of Public Claims from the Board. 

20 (b) ADJUDICATORY PROCEDURES.—In adjudicating 

21 each public claim or petition filed with the Board under 

22 section 405(a), the administrative law judge shall— 

23 (1) in the case of public claims made with re24 spect to certified post-closure storage facilities under 

25 section 405(a)(1), apply the appropriate payment 


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1 schedules for compensation that the Board has es2 tablished under section 407(b); 

3 (2) in the case of petitions for the reimburse4 ment of monitoring and remediation costs incurred 

5 at storage facilities under section 405(a)(2), deter6 mine the reasonable costs for performing the appro7 priate standards established for monitoring and re8 mediation under section 407(c); and 

9 (3) issue a decision that is determined on the 

10 record after opportunity for an agency hearing in ac11 cordance with sections 554, 555, and 556 of title 5, 

12 United States Code. 

13 (c) APPEALS.—An aggrieved person or the Board 

14 may file an appeal of a decision issued under subsection 

15 (b) to the United States Court of Federal Claims. The 

16 appeal of such a decision shall be— 

17 (1) filed within 60 days after the date that the 

18 decision was issued by the administrative law judge; 

19 and 

20 (2) reviewed in accordance with chapter 7 of 

21 title 5, United States Code. 

22 (d) FINAL ORDERS.— 

23 (1) IN GENERAL.—A decision issued under sub24 section (b) shall become a final order of the Board 

25 60 days after the issuance of the decision unless 


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1 within such 60-day period an aggrieved person or 

2 the Board files an appeal of the decision under sub3 section (c). 

4 (2) JUDICIAL REVIEW.—A decision for which 

5 an appeal is not filed within the 60-day period pro6 vided under subsection (c) becomes a final order 

7 that is not subject to judicial review by any court or 

8 tribunal. 

9 (e) BOARD ACTION.—The Board shall, as expedi10 tiously as practicable, make payment to each claimant and 

11 perform other actions that may be required by a final 

12 order issued under subsection (d). 

13 SEC. 410. FIRST MOVER PROJECTS. 

14 (a) PROJECT SELECTION.— 

15 (1) IN GENERAL.—The Secretary shall competi16 tively select 10 carbon capture and geological se17 questration projects as first mover projects in ac18 cordance with the criteria prescribed in paragraph 

19 (2). Each first mover project selected under this 

20 paragraph shall be indemnified from liabilities aris21 ing from the injection of carbon dioxide into the 

22 storage facility in accordance with an agreement exe23 cuted under subsection (b). 

24 (2) ELIGIBILITY CRITERIA.—A carbon capture 

25 and geological sequestration project shall be eligible 


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1 for selection as a first mover project under para2 graph (1) if the project— 

3 (A) demonstrates the commercial applica4 tion of an integrated system for the capture, in5 jection, monitoring, and long term geological 

6 storage of carbon dioxide; 

7 (B) injects at least 1,000,000 tons of car8 bon dioxide each year into a proposed geological 

9 storage site that is capable of long-term storage 

10 of the injected carbon dioxide, as provided 

11 under paragraph (3); 

12 (C) possesses the land or interests in land 

13 necessary for the injection and storage of the 

14 carbon dioxide at the geological storage site; 

15 (D) obtains all necessary permits for the 

16 injection of carbon dioxide into a suitable un17 derground formation and complies with the con18 ditions of any necessary permits that protect 

19 health, environment and safety; and 

20 (E) commits to maintain the financial pro21 tection for remediation and civil claims, as de22 scribed in subsection (b)(2). 

23 (3) PHASED DEVELOPMENT OF PROJECT.—A 

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1 tion requirement of paragraph (2)(B) through a 

2 phased development, so long as— 

3 (A) the Secretary establishes a legally 

4 binding schedule for the phase-in of the project; 

5 and 

6 (B) such schedule requires the project to 

7 achieve an annual injection level of 1,000,000 

8 tons by no later than January 1, 2020. 

9 (b) INDEMNIFICATION AGREEMENTS.— 

10 (1) IN GENERAL.—Notwithstanding section 

11 1341 of title 31, United States Code, but subject to 

12 limitations in appropriation Acts, the Secretary shall 

13 execute indemnification agreements for the 10 first 

14 mover projects that the Secretary has selected under 

15 subsection (a). Each agreement executed under this 

16 paragraph shall indemnify owners and operators of 

17 the first mover project for all or part of the costs 

18 incurred to satisfy remediation and civil claims 

19 (whenever made) that arise from injection of carbon 

20 dioxide into a storage facility, as determined by the 

21 Secretary in accordance with the requirements of 

22 this section. 

23 (2) SCOPE OF INDEMNIFICATION.—The owners 

24 and operators of a first mover project shall maintain 

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1 ceptable to the Secretary. The indemnification au2 thorized under paragraph (1) shall apply to the costs 

3 incurred for remediation and civil claims that are in 

4 excess of the amount of liability covered by financial 

5 protection maintained for the project under para6 graph (1). 

7 (3) CONDITIONS AND REQUIREMENTS.—The 

8 Secretary may impose such conditions on indem9 nification agreements executed under paragraph (1) 

10 as may be necessary or appropriate to protect the fi11 nancial interest of the United States, including a re12 quirement to limit the indemnification provided to 

13 each first mover project under this section during 

14 the stewardship period to the extent that the Sec15 retary determines that potential long-term liabilities 

16 can be adequately addressed through the coverage 

17 provided by the Trust Fund under other provisions 

18 of this title. 

19 (c) CONSOLIDATION OF ENVIRONMENTAL RE20 VIEWS.—In performing environmental reviews that may 

21 apply to an indemnification agreement for a particular 

22 first mover project under subsection (b), the Secretary 

23 shall rely on prior environmental reviews that were per24 formed to assess other major Federal actions relating to 

25 the development or operation of that first mover project 


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1 under 102 of the National Environmental Policy Act of 

2 1969 (42 U.S.C. 4332). 

3 SEC. 411. RELATIONSHIP TO OTHER LAW. 

4 (a) PRIOR TO STEWARDSHIP PERIOD.—This title 

5 does not affect the application of any Federal or State 

6 law to any storage facility for which a regulatory authority 

7 has not issued certificate of completion. 

8 (b) DURING THE STEWARDSHIP PERIOD.—This title 

9 does not affect the application to the Trust Fund, the 

10 Board or any stewardship agency of any Federal or State 

11 environmental law with respect to the injection of carbon 

12 dioxide at any certified post-closure facility. 

13 (c) STATE STEWARDSHIP LAWS.—This title does not 

14 affect the application of any State law related to geologic 

15 sequestration trust funds that may apply to a storage fa16 cility during the operational or post-injection phase prior 

17 to the stewardship period. 

Æ 


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