```

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1201 Reported in Senate (RS)]

<DOC>

                                                       Calendar No. 218
116th CONGRESS
  1st Session
                                S. 1201

                          [Report No. 116-115]

 To amend the fossil energy research and development provisions of the 
 Energy Policy Act of 2005 to enhance fossil fuel technology, and for 
                            other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 11, 2019

 Mr. Manchin (for himself, Ms. Murkowski, Mrs. Capito, Mr. Cramer, Mr. 
Daines, Mr. Jones, Mr. Alexander, Mr. Hoeven, and Mr. Coons) introduced 
the following bill; which was read twice and referred to the Committee 
                    on Energy and Natural Resources

                           September 24, 2019

              Reported by Ms. Murkowski, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
 To amend the fossil energy research and development provisions of the 
 Energy Policy Act of 2005 to enhance fossil fuel technology, and for 
                            other purposes.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Enhancing Fossil Fuel 
Energy Carbon Technology Act of 2019''.</DELETED>

<DELETED>SEC. 2. ESTABLISHMENT OF COAL AND NATURAL GAS TECHNOLOGY 
              PROGRAM.</DELETED>

<DELETED>    (a) In General.--The Energy Policy Act of 2005 is amended 
by striking section 962 (42 U.S.C. 16292) and inserting the 
following:</DELETED>

<DELETED>``SEC. 962. COAL AND NATURAL GAS TECHNOLOGY PROGRAM.</DELETED>

<DELETED>    ``(a) Definitions.--In this section:</DELETED>
        <DELETED>    ``(1) Large-scale pilot project.--The term `large-
        scale pilot project' means a pilot project that--</DELETED>
                <DELETED>    ``(A) represents the scale of technology 
                development beyond laboratory development and bench 
                scale testing, but not yet advanced to the point of 
                being tested under real operational conditions at 
                commercial scale;</DELETED>
                <DELETED>    ``(B) represents the scale of technology 
                necessary to gain the operational data needed to 
                understand the technical and performance risks of the 
                technology before the application of that technology at 
                commercial scale or in commercial-scale demonstration; 
                and</DELETED>
                <DELETED>    ``(C) is large enough--</DELETED>
                        <DELETED>    ``(i) to validate scaling factors; 
                        and</DELETED>
                        <DELETED>    ``(ii) to demonstrate the 
                        interaction between major components so that 
                        control philosophies for a new process can be 
                        developed and enable the technology to advance 
                        from large-scale pilot plant application to 
                        commercial-scale demonstration or 
                        application.</DELETED>
        <DELETED>    ``(2) Net-negative carbon dioxide emissions 
        technology.--The term `net-negative carbon dioxide emissions 
        technology' means technology--</DELETED>
                <DELETED>    ``(A) for thermochemical co-conversion of 
                coal and biomass fuels that--</DELETED>
                        <DELETED>    ``(i) uses a carbon capture 
                        system; and</DELETED>
                        <DELETED>    ``(ii) with carbon dioxide 
                        removal, the Secretary determines can provide 
                        electricity, fuels, or chemicals with net-
                        negative carbon dioxide emissions from 
                        production and consumption of the end products, 
                        while removing atmospheric carbon dioxide; 
                        and</DELETED>
                <DELETED>    ``(B) through which each use of coal will 
                be combined with the use of a regionally indigenous 
                form of biomass energy, provided on a renewable basis, 
                that is sufficient in quantity to allow for net-
                negative emissions of carbon dioxide (in combination 
                with a carbon capture system), while avoiding impacts 
                on food production activities.</DELETED>
        <DELETED>    ``(3) Program.--The term `program' means the 
        program established under subsection (b)(1).</DELETED>
        <DELETED>    ``(4) Transformational technology.--</DELETED>
                <DELETED>    ``(A) In general.--The term 
                `transformational technology' means a power generation 
                technology that represents a significant change in the 
                methods used to convert energy that will enable a step 
                change in performance, efficiency, and cost of 
                electricity as compared to the technology in existence 
                on the date of enactment of the Enhancing Fossil Fuel 
                Energy Carbon Technology Act of 2019.</DELETED>
                <DELETED>    ``(B) Inclusions.--The term 
                `transformational technology' includes a broad range of 
                technology improvements, including--</DELETED>
                        <DELETED>    ``(i) thermodynamic improvements 
                        in energy conversion and heat transfer, 
                        including--</DELETED>
                                <DELETED>    ``(I) advanced combustion 
                                systems, including oxygen combustion 
                                systems and chemical looping; 
                                and</DELETED>
                                <DELETED>    ``(II) the replacement of 
                                steam cycles with supercritical carbon 
                                dioxide cycles;</DELETED>
                        <DELETED>    ``(ii) improvements in steam or 
                        carbon dioxide turbine technology;</DELETED>
                        <DELETED>    ``(iii) improvements in carbon 
                        capture, utilization, and storage systems 
                        technology;</DELETED>
                        <DELETED>    ``(iv) improvements in small-scale 
                        and modular coal-fired technologies with 
                        reduced carbon output or carbon capture that 
                        can support incremental power generation 
                        capacity additions;</DELETED>
                        <DELETED>    ``(v) fuel cell technologies for 
                        low-cost, high-efficiency, fuel-flexible 
                        modular power systems;</DELETED>
                        <DELETED>    ``(vi) advanced gasification 
                        systems;</DELETED>
                        <DELETED>    ``(vii) thermal cycling 
                        technologies; and</DELETED>
                        <DELETED>    ``(viii) any other technology the 
                        Secretary recognizes as transformational 
                        technology.</DELETED>
<DELETED>    ``(b) Coal and Natural Gas Technology Program.--</DELETED>
        <DELETED>    ``(1) In general.--The Secretary shall establish a 
        coal and natural gas technology program to ensure the continued 
        use of the abundant domestic coal and natural gas resources of 
        the United States through the development of technologies that 
        will significantly improve the efficiency, effectiveness, 
        costs, and environmental performance of coal and natural gas 
        use.</DELETED>
        <DELETED>    ``(2) Requirements.--The program shall include--
        </DELETED>
                <DELETED>    ``(A) a research and development 
                program;</DELETED>
                <DELETED>    ``(B) large-scale pilot 
                projects;</DELETED>
                <DELETED>    ``(C) demonstration projects; 
                and</DELETED>
                <DELETED>    ``(D) a front-end engineering and design 
                program.</DELETED>
        <DELETED>    ``(3) Program goals and objectives.--In 
        consultation with the interested entities described in 
        paragraph (5)(C), the Secretary shall develop goals and 
        objectives for the program to be applied to the technologies 
        developed within the program, taking into consideration the 
        following:</DELETED>
                <DELETED>    ``(A) Increasing the performance of coal 
                and natural gas plants, including by--</DELETED>
                        <DELETED>    ``(i) ensuring reliable, low-cost 
                        power from new and existing coal and natural 
                        gas plants;</DELETED>
                        <DELETED>    ``(ii) achieving high conversion 
                        efficiencies;</DELETED>
                        <DELETED>    ``(iii) addressing emissions of 
                        carbon dioxide through high-efficiency 
                        platforms;</DELETED>
                        <DELETED>    ``(iv) developing small-scale and 
                        modular technologies to support incremental 
                        capacity additions and load following 
                        generation, in addition to large-scale 
                        generation technologies;</DELETED>
                        <DELETED>    ``(v) supporting dispatchable 
                        operations for new and existing applications of 
                        coal and natural gas generation; and</DELETED>
                        <DELETED>    ``(vi) accelerating the 
                        development of technologies that have 
                        transformational energy conversion 
                        characteristics.</DELETED>
                <DELETED>    ``(B) Using carbon capture, utilization, 
                and sequestration technologies to decrease the carbon 
                dioxide emissions, and the environmental impact from 
                carbon dioxide emissions, from new and existing coal 
                and natural gas plants, including by--</DELETED>
                        <DELETED>    ``(i) accelerating the development 
                        of technologies to capture carbon dioxide 
                        emissions from new and existing coal and 
                        natural gas plants;</DELETED>
                        <DELETED>    ``(ii) accelerating the 
                        development of technologies to capture carbon 
                        dioxide emissions from industrial facilities, 
                        including--</DELETED>
                                <DELETED>    ``(I) nontraditional fuel 
                                manufacturing facilities, including 
                                ethanol or other biofuel production 
                                plants; and</DELETED>
                                <DELETED>    ``(II) energy-intensive 
                                manufacturing facilities that produce 
                                carbon dioxide as a byproduct of 
                                operations;</DELETED>
                        <DELETED>    ``(iii) supporting sites for safe 
                        geological storage of large volumes of 
                        anthropogenic sources of carbon dioxide and the 
                        development of the infrastructure needed to 
                        support a carbon dioxide utilization and 
                        storage industry;</DELETED>
                        <DELETED>    ``(iv) improving the conversion, 
                        utilization, and storage of carbon dioxide 
                        produced from fossil fuels and other 
                        anthropogenic sources of carbon 
                        dioxide;</DELETED>
                        <DELETED>    ``(v) lowering greenhouse gas 
                        emissions for all fossil fuel production, 
                        generation, delivery, and use, to the maximum 
                        extent practicable;</DELETED>
                        <DELETED>    ``(vi) developing carbon 
                        utilization technologies, products, and 
                        methods, including carbon use and reuse for 
                        commercial application; and</DELETED>
                        <DELETED>    ``(vii) developing net-negative 
                        carbon dioxide emissions 
                        technologies.</DELETED>
                <DELETED>    ``(C) Decreasing the non-carbon dioxide 
                relevant environmental impacts of coal and natural gas 
                production, including by--</DELETED>
                        <DELETED>    ``(i) further reducing non-carbon 
                        dioxide air emissions; and</DELETED>
                        <DELETED>    ``(ii) reducing the use, and 
                        managing the discharge, of water in power plant 
                        operations.</DELETED>
                <DELETED>    ``(D) Examining methods of converting coal 
                and natural gas to other valuable products and 
                commodities in addition to electricity.</DELETED>
        <DELETED>    ``(4) Cross-cutting direction for carbon capture, 
        utilization, and sequestration activities.--The carbon capture, 
        utilization, and sequestration activities described in 
        paragraph (3)(B) shall be--</DELETED>
                <DELETED>    ``(A) cross-cutting in nature; 
                and</DELETED>
                <DELETED>    ``(B) carried out by the Assistant 
                Secretary for Fossil Energy, in coordination with the 
                heads of other relevant offices of the Department, 
                including the Director of the Office of Science and the 
                Assistant Secretary for Energy Efficiency and Renewable 
                Energy.</DELETED>
        <DELETED>    ``(5) Consultations required.--In carrying out the 
        program, the Secretary shall--</DELETED>
                <DELETED>    ``(A) undertake international 
                collaborations, taking into consideration the 
                recommendations of the National Coal Council;</DELETED>
                <DELETED>    ``(B) use existing authorities to 
                encourage international cooperation; and</DELETED>
                <DELETED>    ``(C) consult with interested entities, 
                including--</DELETED>
                        <DELETED>    ``(i) coal and natural gas 
                        producers;</DELETED>
                        <DELETED>    ``(ii) industries that use coal 
                        and natural gas;</DELETED>
                        <DELETED>    ``(iii) organizations that promote 
                        coal, advanced coal, and natural gas 
                        technologies;</DELETED>
                        <DELETED>    ``(iv) environmental 
                        organizations;</DELETED>
                        <DELETED>    ``(v) organizations representing 
                        workers; and</DELETED>
                        <DELETED>    ``(vi) organizations representing 
                        consumers.</DELETED>
<DELETED>    ``(c) Report.--</DELETED>
        <DELETED>    ``(1) In general.--Not later than 18 months after 
        the date of enactment of the Enhancing Fossil Fuel Energy 
        Carbon Technology Act of 2019, the Secretary shall submit to 
        Congress a report describing the program goals and objectives 
        adopted under subsection (b)(3).</DELETED>
        <DELETED>    ``(2) Update.--Not less frequently than once every 
        2 years after the initial report is submitted under paragraph 
        (1), the Secretary shall submit to Congress a report describing 
        the progress made towards achieving the program goals and 
        objectives adopted under subsection (b)(3).</DELETED>
<DELETED>    ``(d) Funding.--</DELETED>
        <DELETED>    ``(1) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary to carry out 
        this section, to remain available until expended--</DELETED>
                <DELETED>    ``(A) for activities under the research 
                and development program component described in 
                subsection (b)(2)(A)--</DELETED>
                        <DELETED>    ``(i) $230,000,000 for each of 
                        fiscal years 2020 and 2021; and</DELETED>
                        <DELETED>    ``(ii) $150,000,000 for each of 
                        fiscal years 2022 through 2024;</DELETED>
                <DELETED>    ``(B) subject to paragraph (2), for 
                activities under the large-scale pilot projects program 
                component described in subsection (b)(2)(B)--</DELETED>
                        <DELETED>    ``(i) $347,000,000 for each of 
                        fiscal years 2020 and 2021;</DELETED>
                        <DELETED>    ``(ii) $272,000,000 for each of 
                        fiscal years 2022 and 2023; and</DELETED>
                        <DELETED>    ``(iii) $250,000,000 for fiscal 
                        year 2024;</DELETED>
                <DELETED>    ``(C) for activities under the 
                demonstration projects program component described in 
                subsection (b)(2)(C)--</DELETED>
                        <DELETED>    ``(i) $100,000,000 for each of 
                        fiscal years 2020 and 2021; and</DELETED>
                        <DELETED>    ``(ii) $500,000,000 for each of 
                        fiscal years 2022 through 2024; and</DELETED>
                <DELETED>    ``(D) for activities under the front-end 
                engineering and design program described in subsection 
                (b)(2)(D), $50,000,000 for each of fiscal years 2020 
                through 2023.</DELETED>
        <DELETED>    ``(2) Cost sharing for large-scale pilot 
        projects.--Activities under subsection (b)(2)(B) shall be 
        subject to the cost-sharing requirements of section 
        988(b).''.</DELETED>
<DELETED>    (b) Technical Amendment.--The table of contents for the 
Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 600) is amended 
by striking the item relating to section 962 and inserting the 
following:</DELETED>

<DELETED>``Sec. 962. Coal and natural gas technology program.''.

<DELETED>SEC. 3. CARBON STORAGE VALIDATION AND TESTING.</DELETED>

<DELETED>    (a) In General.--The Energy Policy Act of 2005 is amended 
by striking section 963 (42 U.S. C. 16293) and inserting the 
following:</DELETED>

<DELETED>``SEC. 963. CARBON STORAGE VALIDATION AND TESTING.</DELETED>

<DELETED>    ``(a) Definitions.--In this section:</DELETED>
        <DELETED>    ``(1) Electric generation unit.--The term 
        `electric generation unit' means an electric generation unit 
        that--</DELETED>
                <DELETED>    ``(A) uses coal- or natural gas-based 
                generation technology; and</DELETED>
                <DELETED>    ``(B) is capable of capturing carbon 
                dioxide emissions from the unit.</DELETED>
        <DELETED>    ``(2) Large-scale carbon sequestration.--The term 
        `large-scale carbon sequestration' means a scale that 
        demonstrates the ability to inject into geologic formations and 
        sequester several million metric tons of carbon dioxide for not 
        less than a 10-year period.</DELETED>
        <DELETED>    ``(3) Program.--The term `program' means the 
        program established under subsection (b)(1).</DELETED>
<DELETED>    ``(b) Carbon Storage Program.--</DELETED>
        <DELETED>    ``(1) In general.--The Secretary shall establish a 
        program of research, development, and demonstration for carbon 
        storage.</DELETED>
        <DELETED>    ``(2) Program activities.--Activities under the 
        program shall include--</DELETED>
                <DELETED>    ``(A) in coordination with relevant 
                Federal agencies, developing and maintaining mapping 
                tools and resources that assess the capacity of 
                geologic storage formation in the United 
                States;</DELETED>
                <DELETED>    ``(B) developing monitoring tools, 
                modeling of geologic formations, and analyses--
                </DELETED>
                        <DELETED>    ``(i) to predict and verify carbon 
                        dioxide containment; and</DELETED>
                        <DELETED>    ``(ii) to account for sequestered 
                        carbon dioxide in geologic storage 
                        sites;</DELETED>
                <DELETED>    ``(C) researching--</DELETED>
                        <DELETED>    ``(i) potential environmental, 
                        safety, and health impacts in the event of a 
                        leak into the atmosphere or to an aquifer; 
                        and</DELETED>
                        <DELETED>    ``(ii) any corresponding 
                        mitigation actions or responses to limit 
                        harmful consequences of such a leak;</DELETED>
                <DELETED>    ``(D) evaluating the interactions of 
                carbon dioxide with formation solids and fluids, 
                including the propensity of injections to induce 
                seismic activity;</DELETED>
                <DELETED>    ``(E) assessing and ensuring the safety of 
                operations relating to geologic sequestration of carbon 
                dioxide;</DELETED>
                <DELETED>    ``(F) determining the fate of carbon 
                dioxide concurrent with and following injection into 
                geologic formations; and</DELETED>
                <DELETED>    ``(G) supporting cost and business model 
                assessments to examine the economic viability of 
                technologies and systems developed under the 
                program.</DELETED>
        <DELETED>    ``(3) Geologic settings.--In carrying out research 
        activities under this subsection, the Secretary shall consider 
        a variety of candidate geologic settings, including--</DELETED>
                <DELETED>    ``(A) operating oil and gas 
                fields;</DELETED>
                <DELETED>    ``(B) depleted oil and gas 
                fields;</DELETED>
                <DELETED>    ``(C) residual oil zones;</DELETED>
                <DELETED>    ``(D) unconventional reservoirs and rock 
                types;</DELETED>
                <DELETED>    ``(E) unmineable coal seams;</DELETED>
                <DELETED>    ``(F) saline formations in both 
                sedimentary and basaltic geologies;</DELETED>
                <DELETED>    ``(G) geologic systems that may be used as 
                engineered reservoirs to extract economical quantities 
                of brine from geothermal resources of low permeability 
                or porosity; and</DELETED>
                <DELETED>    ``(H) geologic systems containing in situ 
                carbon dioxide mineralization formations.</DELETED>
<DELETED>    ``(c) Large-Scale Carbon Sequestration Demonstration 
Program.--</DELETED>
        <DELETED>    ``(1) In general.--The Secretary shall establish a 
        demonstration program under which the Secretary shall provide 
        funding for demonstration projects to collect and validate 
        information on the cost and feasibility of commercial 
        deployment of large-scale carbon sequestration 
        technologies.</DELETED>
        <DELETED>    ``(2) Existing regional carbon sequestration 
        partnerships.--In carrying out paragraph (1), the Secretary may 
        provide additional funding to regional carbon sequestration 
        partnerships that are carrying out or have completed a large-
        scale carbon sequestration demonstration project under this 
        section (as in effect on the day before the date of enactment 
        of the Enhancing Fossil Fuel Energy Carbon Technology Act of 
        2019) for additional work on that project.</DELETED>
        <DELETED>    ``(3) Demonstration components.--Each 
        demonstration project carried out under this subsection shall 
        include longitudinal tests involving carbon dioxide injection 
        and monitoring, mitigation, and verification 
        operations.</DELETED>
        <DELETED>    ``(4) Clearinghouse.--The National Energy 
        Technology Laboratory shall act as a clearinghouse of shared 
        information and resources for--</DELETED>
                <DELETED>    ``(A) existing or completed demonstration 
                projects receiving additional funding under paragraph 
                (2); and</DELETED>
                <DELETED>    ``(B) any new demonstration projects 
                funded under this subsection.</DELETED>
        <DELETED>    ``(5) Report.--Not later than 1 year after the 
        date of enactment of the Enhancing Fossil Fuel Energy Carbon 
        Technology Act of 2019, the Secretary shall submit to the 
        Committee on Energy and Natural Resources of the Senate and the 
        Committee on Science, Space, and Technology of the House of 
        Representatives a report that--</DELETED>
                <DELETED>    ``(A) assesses the progress of all 
                regional carbon sequestration partnerships carrying out 
                a demonstration project under this 
                subsection;</DELETED>
                <DELETED>    ``(B) identifies the remaining challenges 
                in achieving large-scale carbon sequestration that is 
                reliable and safe for the environment and public 
                health; and</DELETED>
                <DELETED>    ``(C) creates a roadmap for carbon storage 
                research and development activities of the Department 
                through 2025, with the goal of reducing economic and 
                policy barriers to commercial carbon 
                sequestration.</DELETED>
<DELETED>    ``(d) Integrated Storage Program.--</DELETED>
        <DELETED>    ``(1) In general.--The Secretary may establish a 
        program to transition large-scale carbon sequestration 
        demonstration projects under subsection (c) into integrated 
        commercial storage complexes.</DELETED>
        <DELETED>    ``(2) Goals and objectives.--The goals and 
        objectives of the program described in paragraph (1) shall be--
        </DELETED>
                <DELETED>    ``(A) to identify geologic storage sites 
                that are able to accept large volumes of carbon dioxide 
                acceptable for commercial contracts;</DELETED>
                <DELETED>    ``(B) to understand the technical and 
                commercial viability of carbon dioxide geologic storage 
                sites; and</DELETED>
                <DELETED>    ``(C) to carry out any other activities 
                necessary to transition the large-scale carbon 
                sequestration demonstration projects under subsection 
                (c) into integrated commercial storage 
                complexes.</DELETED>
<DELETED>    ``(e) Cost Sharing.--Activities carried out under this 
section shall be subject to the cost-sharing requirements of section 
988.</DELETED>
<DELETED>    ``(f) Report on Carbon Dioxide Capture Contracting 
Authority.--</DELETED>
        <DELETED>    ``(1) Report.--Not later than 180 days after the 
        date of enactment of the Enhancing Fossil Fuel Energy Carbon 
        Technology Act of 2019, the Secretary shall submit to the 
        Committee on Energy and Natural Resources of the Senate and the 
        Committee on Science, Space, and Technology of the House of 
        Representatives a report that--</DELETED>
                <DELETED>    ``(A) describes the costs and benefits of 
                entering into long-term binding contracts on behalf of 
                the Federal Government with qualified parties to 
                provide support for capturing carbon dioxide from 
                electricity generated at an electric generation unit or 
                carbon dioxide captured from an electric generation 
                unit and sold to a purchaser for--</DELETED>
                        <DELETED>    ``(i) the recovery of crude oil; 
                        or</DELETED>
                        <DELETED>    ``(ii) other purposes for which a 
                        commercial market exists;</DELETED>
                <DELETED>    ``(B) contains an analysis of how the 
                Department would establish, implement, and maintain a 
                contracting program described in subparagraph (A); 
                and</DELETED>
                <DELETED>    ``(C) outlines options for how contracts 
                may be structured, and regulations that would be 
                necessary, to implement a contracting program described 
                in subparagraph (A).</DELETED>
<DELETED>    ``(g) Authorization of Appropriations.--There are 
authorized to be appropriated to the Secretary to carry out this 
section--</DELETED>
        <DELETED>    ``(1) $105,000,000 for fiscal year 2020;</DELETED>
        <DELETED>    ``(2) $110,250,000 for fiscal year 2021;</DELETED>
        <DELETED>    ``(3) $115,763,000 for fiscal year 2022;</DELETED>
        <DELETED>    ``(4) $121,551,000 for fiscal year 2023; 
        and</DELETED>
        <DELETED>    ``(5) $127,628,000 for fiscal year 
        2024.''.</DELETED>
<DELETED>    (b) Technical Amendment.--The table of contents for the 
Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 600; 121 Stat. 
1708) is amended by striking the item relating to section 963 and 
inserting the following:</DELETED>

<DELETED>``Sec. 963. Carbon storage validation and testing.''.

<DELETED>SEC. 4. CARBON UTILIZATION PROGRAM.</DELETED>

<DELETED>    (a) Carbon Utilization Program.--</DELETED>
        <DELETED>    (1) In general.--Subtitle F of title IX of the 
        Energy Policy Act of 2005 (42 U.S.C. 16291 et seq.) is amended 
        by adding at the end the following:</DELETED>

<DELETED>``SEC. 969. CARBON UTILIZATION PROGRAM.</DELETED>

<DELETED>    ``(a) In General.--The Secretary shall establish a program 
of research, development, and demonstration for carbon utilization--
</DELETED>
        <DELETED>    ``(1) to assess and monitor--</DELETED>
                <DELETED>    ``(A) potential changes in lifecycle 
                carbon dioxide and other greenhouse gas emissions; 
                and</DELETED>
                <DELETED>    ``(B) other environmental safety 
                indicators of new technologies, practices, processes, 
                or methods used in enhanced hydrocarbon recovery as 
                part of the activities authorized under section 
                963;</DELETED>
        <DELETED>    ``(2) to identify and assess novel uses for 
        carbon, including the conversion of carbon dioxide for 
        commercial and industrial products, such as--</DELETED>
                <DELETED>    ``(A) chemicals;</DELETED>
                <DELETED>    ``(B) plastics;</DELETED>
                <DELETED>    ``(C) building materials;</DELETED>
                <DELETED>    ``(D) fuels;</DELETED>
                <DELETED>    ``(E) cement;</DELETED>
                <DELETED>    ``(F) products of coal use in power 
                systems or other applications; or</DELETED>
                <DELETED>    ``(G) other products with demonstrated 
                market value;</DELETED>
        <DELETED>    ``(3) to identify and assess carbon capture 
        technologies for industrial systems; and</DELETED>
        <DELETED>    ``(4) to identify and assess alternative uses for 
        coal, including products derived from carbon engineering, 
        carbon fiber, and coal conversion methods.</DELETED>
<DELETED>    ``(b) Authorization of Appropriations.--There are 
authorized to be appropriated to the Secretary to carry out this 
section--</DELETED>
        <DELETED>    ``(1) $25,000,000 for fiscal year 2020;</DELETED>
        <DELETED>    ``(2) $26,250,000 for fiscal year 2021;</DELETED>
        <DELETED>    ``(3) $27,562,500 for fiscal year 2022;</DELETED>
        <DELETED>    ``(4) $28,940,625 for fiscal year 2023; 
        and</DELETED>
        <DELETED>    ``(5) $30,387,656 for fiscal year 
        2024.''.</DELETED>
        <DELETED>    (2) Technical amendment.--The table of contents 
        for the Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 
        600) is amended by adding at the end of the items relating to 
        subtitle F of title IX the following:</DELETED>

<DELETED>``Sec. 969. Carbon utilization program.''.
<DELETED>    (b) Study.--</DELETED>
        <DELETED>    (1) In general.--The Secretary of Energy shall 
        enter into an agreement with the National Academies of 
        Sciences, Engineering, and Medicine under which the National 
        Academies of Sciences, Engineering, and Medicine shall conduct 
        a study to assess any barriers and opportunities relating to 
        commercializing carbon dioxide in the United States.</DELETED>
        <DELETED>    (2) Requirements.--The study under paragraph (1) 
        shall--</DELETED>
                <DELETED>    (A) analyze challenges to commercializing 
                carbon dioxide, including--</DELETED>
                        <DELETED>    (i) expanding carbon dioxide 
                        pipeline capacity;</DELETED>
                        <DELETED>    (ii) mitigating environmental 
                        impacts;</DELETED>
                        <DELETED>    (iii) access to capital;</DELETED>
                        <DELETED>    (iv) geographic barriers; 
                        and</DELETED>
                        <DELETED>    (v) regional economic challenges 
                        and opportunities;</DELETED>
                <DELETED>    (B) identify potential markets, 
                industries, or sectors that may benefit from greater 
                access to commercial carbon dioxide;</DELETED>
                <DELETED>    (C) assess--</DELETED>
                        <DELETED>    (i) the state of infrastructure as 
                        of the date of the study; and</DELETED>
                        <DELETED>    (ii) any necessary updates to 
                        infrastructure to allow for the integration of 
                        safe and reliable carbon dioxide 
                        transportation, use, and storage;</DELETED>
                <DELETED>    (D) describe the economic, climate, and 
                environmental impacts of any well-integrated national 
                carbon dioxide pipeline system, including suggestions 
                for policies that could--</DELETED>
                        <DELETED>    (i) improve the economic impact of 
                        the system; and</DELETED>
                        <DELETED>    (ii) mitigate impacts of the 
                        system;</DELETED>
                <DELETED>    (E) assess the global status and progress 
                of chemical and biological carbon utilization 
                technologies in practice as of the date of the study 
                that utilize anthropogenic carbon, including carbon 
                dioxide, carbon monoxide, methane, and biogas, from 
                power generation, biofuels production, and other 
                industrial processes;</DELETED>
                <DELETED>    (F) identify emerging technologies and 
                approaches for carbon utilization that show promise for 
                scale-up, demonstration, deployment, and 
                commercialization;</DELETED>
                <DELETED>    (G) analyze the factors associated with 
                making carbon utilization technologies viable at a 
                commercial scale, including carbon waste stream 
                availability, economics, market capacity, energy, and 
                lifecycle requirements;</DELETED>
                <DELETED>    (H)(i) assess the major technical 
                challenges associated with increasing the commercial 
                viability of carbon reuse technologies; and</DELETED>
                <DELETED>    (ii) identify the research and development 
                questions that will address the challenges described in 
                clause (i);</DELETED>
                <DELETED>    (I)(i) assess research efforts being 
                carried out as of the date of the study, including 
                basic, applied, engineering, and computational research 
                efforts, that are addressing the challenges described 
                in subparagraph (H)(i); and</DELETED>
                <DELETED>    (ii) identify gaps in the research efforts 
                under clause (i); and</DELETED>
                <DELETED>    (J) develop a comprehensive research 
                agenda that addresses long- and short-term research 
                needs and opportunities.</DELETED>
        <DELETED>    (3) Deadline.--Not later than 180 days after the 
        date of enactment of this Act, the National Academies of 
        Sciences, Engineering, and Medicine shall submit to the 
        Secretary of Energy a report describing the results of the 
        study under paragraph (1).</DELETED>

<DELETED>SEC. 5. CARBON REMOVAL.</DELETED>

<DELETED>    (a) In General.--Subtitle F of title IX of the Energy 
Policy Act of 2005 (42 U.S.C. 16291 et seq.) (as amended by section 
4(a)(1)) is amended by adding at the end the following:</DELETED>

<DELETED>``SEC. 969A. CARBON REMOVAL.</DELETED>

<DELETED>    ``(a) Establishment.--The Secretary, in coordination with 
the heads of appropriate Federal agencies, including the Secretary of 
Agriculture, shall establish a research, development, and demonstration 
program (referred to in this section as the `program') to test, 
validate, or improve technologies and strategies to remove carbon 
dioxide from the atmosphere on a large scale.</DELETED>
<DELETED>    ``(b) Cross-Cutting Direction.--The Secretary shall ensure 
that the program--</DELETED>
        <DELETED>    ``(1) is cross-cutting in nature; and</DELETED>
        <DELETED>    ``(2) includes the coordinated participation of 
        the Office of Fossil Energy, the Office of Science, and the 
        Office of Energy Efficiency and Renewable Energy.</DELETED>
<DELETED>    ``(c) Program Activities.--The program may include 
research, development, and demonstration activities relating to--
</DELETED>
        <DELETED>    ``(1) direct air capture and storage 
        technologies;</DELETED>
        <DELETED>    ``(2) bioenergy with carbon capture and 
        sequestration;</DELETED>
        <DELETED>    ``(3) enhanced geological weathering;</DELETED>
        <DELETED>    ``(4) agricultural and grazing 
        practices;</DELETED>
        <DELETED>    ``(5) forest management and afforestation; 
        and</DELETED>
        <DELETED>    ``(6) planned or managed carbon sinks, including 
        natural and artificial.</DELETED>
<DELETED>    ``(d) Requirements.--In developing and identifying carbon 
removal technologies and strategies under the program, the Secretary 
shall consider--</DELETED>
        <DELETED>    ``(1) land use changes, including impacts on 
        natural and managed ecosystems;</DELETED>
        <DELETED>    ``(2) ocean acidification;</DELETED>
        <DELETED>    ``(3) net greenhouse gas emissions;</DELETED>
        <DELETED>    ``(4) commercial viability;</DELETED>
        <DELETED>    ``(5) potential for near-term impact;</DELETED>
        <DELETED>    ``(6) potential for carbon reductions on a gigaton 
        scale; and</DELETED>
        <DELETED>    ``(7) economic cobenefits.</DELETED>
<DELETED>    ``(e) Air Capture Technology Prize Competition.--
</DELETED>
        <DELETED>    ``(1) Definitions.--In this subsection:</DELETED>
                <DELETED>    ``(A) Dilute media.--The term `dilute 
                media' means media in which the concentration of carbon 
                dioxide is less than 1 percent by volume.</DELETED>
                <DELETED>    ``(B) Prize competition.--The term `prize 
                competition' means the competitive technology prize 
                competition established under paragraph (2).</DELETED>
        <DELETED>    ``(2) Establishment.--Not later than 1 year after 
        the date of enactment of the Enhancing Fossil Fuel Energy 
        Carbon Technology Act of 2019, the Secretary, in consultation 
        with the Administrator of the Environmental Protection Agency, 
        shall establish as part of the program a competitive technology 
        prize competition to award prizes for carbon dioxide capture 
        from dilute media.</DELETED>
        <DELETED>    ``(3) Requirements.--In carrying out this 
        subsection, the Secretary, in accordance with section 24 of the 
        Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
        3719), shall develop requirements for--</DELETED>
                <DELETED>    ``(A) the prize competition process; 
                and</DELETED>
                <DELETED>    ``(B) monitoring and verification 
                procedures for projects selected to receive a prize 
                under the prize competition.</DELETED>
        <DELETED>    ``(4) Eligible projects.--To be eligible to be 
        awarded a prize under the prize competition, a project shall--
        </DELETED>
                <DELETED>    ``(A) meet minimum performance standards 
                set by the Secretary;</DELETED>
                <DELETED>    ``(B) meet minimum levels set by the 
                Secretary for the capture of carbon dioxide from dilute 
                media; and</DELETED>
                <DELETED>    ``(C) demonstrate in the application of 
                the project for a prize--</DELETED>
                        <DELETED>    ``(i) a design for a promising 
                        carbon capture technology that will--</DELETED>
                                <DELETED>    ``(I) be operated on a 
                                demonstration scale; and</DELETED>
                                <DELETED>    ``(II) have the potential 
                                to achieve significant reduction in the 
                                level of carbon dioxide in the 
                                atmosphere;</DELETED>
                        <DELETED>    ``(ii) a successful bench-scale 
                        demonstration of a carbon capture technology; 
                        or</DELETED>
                        <DELETED>    ``(iii) an operational carbon 
                        capture technology on a commercial 
                        scale.</DELETED>
<DELETED>    ``(f) Intraagency Coordination.--The direct air capture 
activities carried out under subsections (c)(1) and (e) shall be 
carried out in coordination with, and leveraging lessons learned from, 
the coal and natural gas technology program established under section 
962(b)(1).</DELETED>
<DELETED>    ``(g) Accounting.--The Secretary shall collaborate with 
the Administrator of the Environmental Protection Agency and the heads 
of other relevant Federal agencies to develop and improve accounting 
frameworks and tools to accurately measure carbon removal and 
sequestration methods and technologies across the Federal 
Government.</DELETED>
<DELETED>    ``(h) Authorization of Appropriations.--There are 
authorized to be appropriated to the Secretary to carry out this 
section--</DELETED>
        <DELETED>    ``(1) $45,000,000 for fiscal year 2020, of which 
        $15,000,000 shall be used to carry out subsection 
        (e);</DELETED>
        <DELETED>    ``(2) $31,500,000 for fiscal year 2021;</DELETED>
        <DELETED>    ``(3) $33,075,000 for fiscal year 2022;</DELETED>
        <DELETED>    ``(4) $34,729,000 for fiscal year 2023; 
        and</DELETED>
        <DELETED>    ``(5) $36,465,000 for fiscal year 
        2024.''.</DELETED>
<DELETED>    (b) Technical Amendment.--The table of contents for the 
Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 600) (as 
amended by section 4(a)(2)) is amended by adding at the end of the 
items relating to subtitle F of title IX the following:</DELETED>

<DELETED>``Sec. 969A. Carbon removal.''.

<DELETED>SEC. 6. FOSSIL ENERGY.</DELETED>

<DELETED>    Section 961(a) of the Energy Policy Act of 2005 (42 U.S.C. 
16291(a)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (6), by inserting ``, including 
        technology development to reduce emissions of carbon dioxide 
        and associated emissions of heavy metals within coal combustion 
        residues and gas streams resulting from fossil fuel use and 
        production'' before the period at the end; and</DELETED>
        <DELETED>    (2) by striking paragraph (7) and inserting the 
        following:</DELETED>
        <DELETED>    ``(7) Increasing the export of emissions control 
        technologies from the United States for fossil energy-related 
        equipment, technology, and services.</DELETED>
        <DELETED>    ``(8) Developing carbon removal and utilization 
        technologies, products, and methods that result in net 
        reductions in greenhouse gas emissions, including direct air 
        capture and storage, and carbon use and reuse for commercial 
        application.</DELETED>
        <DELETED>    ``(9) Improving the conversion, use, and storage 
        of carbon dioxide produced from fossil fuels.''.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Enhancing Fossil Fuel Energy Carbon 
Technology Act of 2019'' or the ``EFFECT Act of 2019''.

SEC. 2. ESTABLISHMENT OF COAL AND NATURAL GAS TECHNOLOGY PROGRAM.

    (a) In General.--The Energy Policy Act of 2005 is amended by 
striking section 962 (42 U.S.C. 16292) and inserting the following:

``SEC. 962. COAL AND NATURAL GAS TECHNOLOGY PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Large-scale pilot project.--The term `large-scale 
        pilot project' means a pilot project that--
                    ``(A) represents the scale of technology 
                development beyond laboratory development and bench 
                scale testing, but not yet advanced to the point of 
                being tested under real operational conditions at 
                commercial scale;
                    ``(B) represents the scale of technology necessary 
                to gain the operational data needed to understand the 
                technical and performance risks of the technology 
                before the application of that technology at commercial 
                scale or in commercial-scale demonstration; and
                    ``(C) is large enough--
                            ``(i) to validate scaling factors; and
                            ``(ii) to demonstrate the interaction 
                        between major components so that control 
                        philosophies for a new process can be developed 
                        and enable the technology to advance from 
                        large-scale pilot plant application to 
                        commercial-scale demonstration or application.
            ``(2) Net-negative carbon dioxide emissions technology.--
        The term `net-negative carbon dioxide emissions technology' 
        means technology--
                    ``(A) for thermochemical co-conversion of coal and 
                biomass fuels that--
                            ``(i) uses a carbon capture system; and
                            ``(ii) with carbon dioxide removal, the 
                        Secretary determines can provide electricity, 
                        fuels, or chemicals with net-negative carbon 
                        dioxide emissions from production and 
                        consumption of the end products, while removing 
                        atmospheric carbon dioxide; and
                    ``(B) through which each use of coal will be 
                combined with the use of biomass energy, provided on a 
                renewable basis, that is sufficient in quantity to 
                allow for net-negative emissions of carbon dioxide (in 
                combination with a carbon capture system), while 
                avoiding impacts on food production activities.
            ``(3) Program.--The term `program' means the program 
        established under subsection (b)(1).
            ``(4) Transformational technology.--
                    ``(A) In general.--The term `transformational 
                technology' means a power generation technology that 
                represents a significant change in the methods used to 
                convert energy that will enable a step change in 
                performance, efficiency, and cost of electricity as 
                compared to the technology in existence on the date of 
                enactment of the Enhancing Fossil Fuel Energy Carbon 
                Technology Act of 2019.
                    ``(B) Inclusions.--The term `transformational 
                technology' includes a broad range of technology 
                improvements, including--
                            ``(i) thermodynamic improvements in energy 
                        conversion and heat transfer, including--
                                    ``(I) advanced combustion systems, 
                                including oxygen combustion systems and 
                                chemical looping; and
                                    ``(II) the replacement of steam 
                                cycles with supercritical carbon 
                                dioxide cycles;
                            ``(ii) improvements in steam or carbon 
                        dioxide turbine technology;
                            ``(iii) improvements in carbon capture, 
                        utilization, and storage systems technology;
                            ``(iv) improvements in small-scale and 
                        modular coal-fired technologies with reduced 
                        carbon output or carbon capture that can 
                        support incremental power generation capacity 
                        additions;
                            ``(v) fuel cell technologies for low-cost, 
                        high-efficiency modular power systems;
                            ``(vi) advanced gasification systems;
                            ``(vii) thermal cycling technologies; and
                            ``(viii) any other technology the Secretary 
                        recognizes as transformational technology.
    ``(b) Coal and Natural Gas Technology Program.--
            ``(1) In general.--The Secretary shall establish a coal and 
        natural gas technology program to ensure the continued use of 
        the abundant domestic coal and natural gas resources of the 
        United States through the development of transformational 
        technologies that will significantly improve the efficiency, 
        effectiveness, costs, and environmental performance of coal and 
        natural gas use.
            ``(2) Requirements.--The program shall include--
                    ``(A) a research and development program;
                    ``(B) large-scale pilot projects;
                    ``(C) demonstration projects; and
                    ``(D) a front-end engineering and design program.
            ``(3) Program goals and objectives.--In consultation with 
        the interested entities described in paragraph (5)(C), the 
        Secretary shall develop goals and objectives for the program to 
        be applied to the transformational technologies developed 
        within the program, taking into consideration the following:
                    ``(A) Increasing the performance of coal and 
                natural gas plants, including by--
                            ``(i) ensuring reliable, low-cost power 
                        from new and existing coal and natural gas 
                        plants;
                            ``(ii) achieving high conversion 
                        efficiencies;
                            ``(iii) addressing emissions of carbon 
                        dioxide through high-efficiency platforms;
                            ``(iv) developing small-scale and modular 
                        technologies to support incremental capacity 
                        additions and load following generation, in 
                        addition to large-scale generation 
                        technologies;
                            ``(v) supporting dispatchable operations 
                        for new and existing applications of coal and 
                        natural gas generation; and
                            ``(vi) accelerating the development of 
                        technologies that have transformational energy 
                        conversion characteristics.
                    ``(B) Using carbon capture, utilization, and 
                sequestration technologies to decrease the carbon 
                dioxide emissions, and the environmental impact from 
                carbon dioxide emissions, from new and existing coal 
                and natural gas plants, including by--
                            ``(i) accelerating the development, 
                        deployment, and commercialization of 
                        technologies to capture and sequester carbon 
                        dioxide emissions from new and existing coal 
                        and natural gas plants;
                            ``(ii) supporting sites for safe geological 
                        storage of large volumes of anthropogenic 
                        sources of carbon dioxide and the development 
                        of the infrastructure needed to support a 
                        carbon dioxide utilization and storage 
                        industry;
                            ``(iii) improving the conversion, 
                        utilization, and storage of carbon dioxide 
                        produced from fossil fuels and other 
                        anthropogenic sources of carbon dioxide;
                            ``(iv) lowering greenhouse gas emissions 
                        for all fossil fuel production, generation, 
                        delivery, and use, to the maximum extent 
                        practicable;
                            ``(v) developing carbon utilization 
                        technologies, products, and methods, including 
                        carbon use and reuse for commercial 
                        application; and
                            ``(vi) developing net-negative carbon 
                        dioxide emissions technologies.
                    ``(C) Decreasing the non-carbon dioxide relevant 
                environmental impacts of coal and natural gas 
                production, including by--
                            ``(i) further reducing non-carbon dioxide 
                        air emissions; and
                            ``(ii) reducing the use, and managing the 
                        discharge, of water in power plant operations.
                    ``(D) Accelerating the development of technologies 
                to capture carbon dioxide emissions from industrial 
                facilities, including--
                            ``(i) nontraditional fuel manufacturing 
                        facilities, including ethanol or other biofuel 
                        production plants or hydrogen production 
                        plants; and
                            ``(ii) energy-intensive manufacturing 
                        facilities that produce carbon dioxide as a 
                        byproduct of operations.
                    ``(E) Examining methods of converting coal and 
                natural gas to other valuable products and commodities 
                in addition to electricity, including hydrogen.
            ``(4) Cross-cutting direction for carbon capture, 
        utilization, and sequestration activities.--The carbon capture, 
        utilization, and sequestration activities described in 
        paragraph (3)(B) shall be--
                    ``(A) cross-cutting in nature; and
                    ``(B) carried out by the Assistant Secretary for 
                Fossil Energy, in coordination with the heads of other 
                relevant offices of the Department, including the 
                Director of the Office of Science and the Assistant 
                Secretary for Energy Efficiency and Renewable Energy.
            ``(5) Consultations required.--In carrying out the program, 
        the Secretary shall--
                    ``(A) undertake international collaborations, 
                taking into consideration the recommendations of the 
                National Coal Council;
                    ``(B) use existing authorities to encourage 
                international cooperation; and
                    ``(C) consult with interested entities, including--
                            ``(i) coal and natural gas producers;
                            ``(ii) industries that use coal and natural 
                        gas;
                            ``(iii) organizations that promote coal, 
                        advanced coal, and natural gas technologies;
                            ``(iv) environmental organizations;
                            ``(v) organizations representing workers; 
                        and
                            ``(vi) organizations representing 
                        consumers.
    ``(c) Report.--
            ``(1) In general.--Not later than 18 months after the date 
        of enactment of the Enhancing Fossil Fuel Energy Carbon 
        Technology Act of 2019, the Secretary shall submit to Congress 
        a report describing the program goals and objectives adopted 
        under subsection (b)(3).
            ``(2) Update.--Not less frequently than once every 2 years 
        after the initial report is submitted under paragraph (1), the 
        Secretary shall submit to Congress a report describing the 
        progress made towards achieving the program goals and 
        objectives adopted under subsection (b)(3).
    ``(d) Funding.--
            ``(1) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary to carry out 
        this section, to remain available until expended--
                    ``(A) for activities under the research and 
                development program component described in subsection 
                (b)(2)(A)--
                            ``(i) $230,000,000 for each of fiscal years 
                        2020 and 2021; and
                            ``(ii) $150,000,000 for each of fiscal 
                        years 2022 through 2024;
                    ``(B) subject to paragraph (2), for activities 
                under the large-scale pilot projects program component 
                described in subsection (b)(2)(B)--
                            ``(i) $347,000,000 for each of fiscal years 
                        2020 and 2021;
                            ``(ii) $272,000,000 for each of fiscal 
                        years 2022 and 2023; and
                            ``(iii) $250,000,000 for fiscal year 2024;
                    ``(C) for activities under the demonstration 
                projects program component described in subsection 
                (b)(2)(C)--
                            ``(i) $100,000,000 for each of fiscal years 
                        2020 and 2021; and
                            ``(ii) $500,000,000 for each of fiscal 
                        years 2022 through 2024; and
                    ``(D) for activities under the front-end 
                engineering and design program described in subsection 
                (b)(2)(D), $50,000,000 for each of fiscal years 2020 
                through 2023.
            ``(2) Cost sharing for large-scale pilot projects.--
        Activities under subsection (b)(2)(B) shall be subject to the 
        cost-sharing requirements of section 988(b).''.
    (b) Technical Amendment.--The table of contents for the Energy 
Policy Act of 2005 (Public Law 109-58; 119 Stat. 600) is amended by 
striking the item relating to section 962 and inserting the following:

``Sec. 962. Coal and natural gas technology program.''.

SEC. 3. CARBON STORAGE VALIDATION AND TESTING.

    (a) In General.--The Energy Policy Act of 2005 is amended by 
striking section 963 (42 U.S. C. 16293) and inserting the following:

``SEC. 963. CARBON STORAGE VALIDATION AND TESTING.

    ``(a) Definitions.--In this section:
            ``(1) Electric generation unit.--The term `electric 
        generation unit' means an electric generation unit that--
                    ``(A) uses coal- or natural gas-based generation 
                technology; and
                    ``(B) is capable of capturing carbon dioxide 
                emissions from the unit.
            ``(2) Large-scale carbon sequestration.--The term `large-
        scale carbon sequestration' means a scale that demonstrates the 
        ability to inject into geologic formations and sequester 
        several million metric tons of carbon dioxide for not less than 
        a 10-year period.
            ``(3) Program.--The term `program' means the program 
        established under subsection (b)(1).
    ``(b) Carbon Storage Program.--
            ``(1) In general.--The Secretary shall establish a program 
        of research, development, and demonstration for carbon storage.
            ``(2) Program activities.--Activities under the program 
        shall include--
                    ``(A) in coordination with relevant Federal 
                agencies, developing and maintaining mapping tools and 
                resources that assess the capacity of geologic storage 
                formation in the United States;
                    ``(B) developing monitoring tools, modeling of 
                geologic formations, and analyses--
                            ``(i) to predict carbon dioxide 
                        containment; and
                            ``(ii) to account for sequestered carbon 
                        dioxide in geologic storage sites;
                    ``(C) researching--
                            ``(i) potential environmental, safety, and 
                        health impacts in the event of a leak into the 
                        atmosphere or to an aquifer; and
                            ``(ii) any corresponding mitigation actions 
                        or responses to limit harmful consequences of 
                        such a leak;
                    ``(D) evaluating the interactions of carbon dioxide 
                with formation solids and fluids, including the 
                propensity of injections to induce seismic activity;
                    ``(E) assessing and ensuring the safety of 
                operations relating to geologic sequestration of carbon 
                dioxide;
                    ``(F) determining the fate of carbon dioxide 
                concurrent with and following injection into geologic 
                formations; and
                    ``(G) supporting cost and business model 
                assessments to examine the economic viability of 
                technologies and systems developed under the program.
            ``(3) Geologic settings.--In carrying out research 
        activities under this subsection, the Secretary shall consider 
        a variety of candidate onshore and offshore geologic settings, 
        including--
                    ``(A) operating oil and gas fields;
                    ``(B) depleted oil and gas fields;
                    ``(C) residual oil zones;
                    ``(D) unconventional reservoirs and rock types;
                    ``(E) unmineable coal seams;
                    ``(F) saline formations in both sedimentary and 
                basaltic geologies;
                    ``(G) geologic systems that may be used as 
                engineered reservoirs to extract economical quantities 
                of brine from geothermal resources of low permeability 
                or porosity; and
                    ``(H) geologic systems containing in situ carbon 
                dioxide mineralization formations.
    ``(c) Large-scale Carbon Sequestration Demonstration Program.--
            ``(1) In general.--The Secretary shall establish a 
        demonstration program under which the Secretary shall provide 
        funding for demonstration projects to collect and validate 
        information on the cost and feasibility of commercial 
        deployment of large-scale carbon sequestration technologies.
            ``(2) Existing regional carbon sequestration 
        partnerships.--In carrying out paragraph (1), the Secretary may 
        provide additional funding to regional carbon sequestration 
        partnerships that are carrying out or have completed a large-
        scale carbon sequestration demonstration project under this 
        section (as in effect on the day before the date of enactment 
        of the Enhancing Fossil Fuel Energy Carbon Technology Act of 
        2019) for additional work on that project.
            ``(3) Demonstration components.--Each demonstration project 
        carried out under this subsection shall include longitudinal 
        tests involving carbon dioxide injection and monitoring, 
        mitigation, and verification operations.
            ``(4) Clearinghouse.--The National Energy Technology 
        Laboratory shall act as a clearinghouse of shared information 
        and resources for--
                    ``(A) existing or completed demonstration projects 
                receiving additional funding under paragraph (2); and
                    ``(B) any new demonstration projects funded under 
                this subsection.
            ``(5) Report.--Not later than 1 year after the date of 
        enactment of the Enhancing Fossil Fuel Energy Carbon Technology 
        Act of 2019, the Secretary shall submit to the Committee on 
        Energy and Natural Resources of the Senate and the Committee on 
        Science, Space, and Technology of the House of Representatives 
        a report that--
                    ``(A) assesses the progress of all regional carbon 
                sequestration partnerships carrying out a demonstration 
                project under this subsection;
                    ``(B) identifies the remaining challenges in 
                achieving large-scale carbon sequestration that is 
                reliable and safe for the environment and public 
                health; and
                    ``(C) creates a roadmap for carbon storage research 
                and development activities of the Department through 
                2025, with the goal of reducing economic and policy 
                barriers to commercial carbon sequestration.
    ``(d) Integrated Storage Program.--
            ``(1) In general.--The Secretary may establish a program to 
        transition large-scale carbon sequestration demonstration 
        projects under subsection (c) into integrated commercial 
        storage complexes.
            ``(2) Goals and objectives.--The goals and objectives of 
        the program described in paragraph (1) shall be--
                    ``(A) to identify geologic storage sites that are 
                able to accept large volumes of carbon dioxide 
                acceptable for commercial contracts;
                    ``(B) to understand the technical and commercial 
                viability of carbon dioxide geologic storage sites; and
                    ``(C) to carry out any other activities necessary 
                to transition the large-scale carbon sequestration 
                demonstration projects under subsection (c) into 
                integrated commercial storage complexes.
    ``(e) Cost Sharing.--Activities carried out under this section 
shall be subject to the cost-sharing requirements of section 988.
    ``(f) Report on Carbon Dioxide Capture Contracting Authority.--
            ``(1) Report.--Not later than 180 days after the date of 
        enactment of the Enhancing Fossil Fuel Energy Carbon Technology 
        Act of 2019, the Secretary shall submit to the Committee on 
        Energy and Natural Resources of the Senate and the Committee on 
        Science, Space, and Technology of the House of Representatives 
        a report that--
                    ``(A) describes the costs and benefits of entering 
                into long-term binding contracts on behalf of the 
                Federal Government with qualified parties to provide 
                support for capturing carbon dioxide from electricity 
                generated at an electric generation unit or carbon 
                dioxide captured from an electric generation unit and 
                sold to a purchaser for--
                            ``(i) the recovery of crude oil; or
                            ``(ii) other purposes for which a 
                        commercial market exists;
                    ``(B) contains an analysis of how the Department 
                would establish, implement, and maintain a contracting 
                program described in subparagraph (A); and
                    ``(C) outlines options for how contracts may be 
                structured, and regulations that would be necessary, to 
                implement a contracting program described in 
                subparagraph (A).
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section--
            ``(1) $105,000,000 for fiscal year 2020;
            ``(2) $110,250,000 for fiscal year 2021;
            ``(3) $115,763,000 for fiscal year 2022;
            ``(4) $121,551,000 for fiscal year 2023; and
            ``(5) $127,628,000 for fiscal year 2024.''.
    (b) Technical Amendment.--The table of contents for the Energy 
Policy Act of 2005 (Public Law 109-58; 119 Stat. 600; 121 Stat. 1708) 
is amended by striking the item relating to section 963 and inserting 
the following:

``Sec. 963. Carbon storage validation and testing.''.

SEC. 4. CARBON UTILIZATION PROGRAM.

    (a) Carbon Utilization Program.--
            (1) In general.--Subtitle F of title IX of the Energy 
        Policy Act of 2005 (42 U.S.C. 16291 et seq.) is amended by 
        adding at the end the following:

``SEC. 969. CARBON UTILIZATION PROGRAM.

    ``(a) In General.--The Secretary shall establish a program of 
research, development, and demonstration for carbon utilization--
            ``(1) to assess and monitor--
                    ``(A) potential changes in lifecycle carbon dioxide 
                and other greenhouse gas emissions; and
                    ``(B) other environmental safety indicators of new 
                technologies, practices, processes, or methods used in 
                enhanced hydrocarbon recovery as part of the activities 
                authorized under section 963;
            ``(2) to identify and assess novel uses for carbon, 
        including the conversion of carbon oxides for commercial and 
        industrial products, such as--
                    ``(A) chemicals;
                    ``(B) plastics;
                    ``(C) building materials;
                    ``(D) fuels;
                    ``(E) cement;
                    ``(F) products of coal use in power systems or 
                other applications; or
                    ``(G) other products with demonstrated market 
                value;
            ``(3) to identify and assess carbon capture technologies 
        for industrial systems; and
            ``(4) to identify and assess alternative uses for coal, 
        including products derived from carbon engineering, carbon 
        fiber, and coal conversion methods.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section--
            ``(1) $25,000,000 for fiscal year 2020;
            ``(2) $26,250,000 for fiscal year 2021;
            ``(3) $27,562,500 for fiscal year 2022;
            ``(4) $28,940,625 for fiscal year 2023; and
            ``(5) $30,387,656 for fiscal year 2024.''.
            (2) Technical amendment.--The table of contents for the 
        Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 600) is 
        amended by adding at the end of the items relating to subtitle 
        F of title IX the following:

``Sec. 969. Carbon utilization program.''.
    (b) Study.--
            (1) In general.--The Secretary of Energy shall enter into 
        an agreement with the National Academies of Sciences, 
        Engineering, and Medicine under which the National Academies of 
        Sciences, Engineering, and Medicine shall conduct a study to 
        assess any barriers and opportunities relating to 
        commercializing carbon dioxide in the United States.
            (2) Requirements.--The study under paragraph (1) shall--
                    (A) analyze challenges to commercializing carbon 
                dioxide, including--
                            (i) expanding carbon dioxide pipeline 
                        capacity;
                            (ii) mitigating environmental impacts;
                            (iii) access to capital;
                            (iv) geographic barriers; and
                            (v) regional economic challenges and 
                        opportunities;
                    (B) identify potential markets, industries, or 
                sectors that may benefit from greater access to 
                commercial carbon dioxide;
                    (C) assess--
                            (i) the state of infrastructure as of the 
                        date of the study; and
                            (ii) any necessary updates to 
                        infrastructure to allow for the integration of 
                        safe and reliable carbon dioxide 
                        transportation, use, and storage;
                    (D) describe the economic, climate, and 
                environmental impacts of any well-integrated national 
                carbon dioxide pipeline system, including suggestions 
                for policies that could--
                            (i) improve the economic impact of the 
                        system; and
                            (ii) mitigate impacts of the system;
                    (E) assess the global status and progress of 
                chemical and biological carbon utilization technologies 
                in practice as of the date of the study that utilize 
                anthropogenic carbon, including carbon dioxide, carbon 
                monoxide, methane, and biogas, from power generation, 
                biofuels production, and other industrial processes;
                    (F) identify emerging technologies and approaches 
                for carbon utilization that show promise for scale-up, 
                demonstration, deployment, and commercialization;
                    (G) analyze the factors associated with making 
                carbon utilization technologies viable at a commercial 
                scale, including carbon waste stream availability, 
                economics, market capacity, energy, and lifecycle 
                requirements;
                    (H)(i) assess the major technical challenges 
                associated with increasing the commercial viability of 
                carbon reuse technologies; and
                    (ii) identify the research and development 
                questions that will address the challenges described in 
                clause (i);
                    (I)(i) assess research efforts being carried out as 
                of the date of the study, including basic, applied, 
                engineering, and computational research efforts, that 
                are addressing the challenges described in subparagraph 
                (H)(i); and
                    (ii) identify gaps in the research efforts under 
                clause (i);
                    (J) develop a comprehensive research agenda that 
                addresses long- and short-term research needs and 
                opportunities; and
                    (K)(i) identify appropriate Federal agencies with 
                capabilities to support small business entities; and
                    (ii) determine what assistance the Federal agencies 
                identified under clause (i) could provide to small 
                business entities to further the development and 
                commercial deployment of carbon dioxide-based products.
            (3) Deadline.--Not later than 180 days after the date of 
        enactment of this Act, the National Academies of Sciences, 
        Engineering, and Medicine shall submit to the Secretary of 
        Energy a report describing the results of the study under 
        paragraph (1).

SEC. 5. CARBON REMOVAL.

    (a) In General.--Subtitle F of title IX of the Energy Policy Act of 
2005 (42 U.S.C. 16291 et seq.) (as amended by section 4(a)(1)) is 
amended by adding at the end the following:

``SEC. 969A. CARBON REMOVAL.

    ``(a) Establishment.--The Secretary, in coordination with the heads 
of appropriate Federal agencies, including the Secretary of 
Agriculture, shall establish a research, development, and demonstration 
program (referred to in this section as the `program') to test, 
validate, or improve technologies and strategies to remove carbon 
dioxide from the atmosphere on a large scale.
    ``(b) Cross-cutting Direction.--The Secretary shall ensure that the 
program--
            ``(1) is cross-cutting in nature; and
            ``(2) includes the coordinated participation of the Office 
        of Fossil Energy, the Office of Science, and the Office of 
        Energy Efficiency and Renewable Energy.
    ``(c) Program Activities.--The program may include research, 
development, and demonstration activities relating to--
            ``(1) direct air capture and storage technologies;
            ``(2) bioenergy with carbon capture and sequestration;
            ``(3) enhanced geological weathering;
            ``(4) agricultural and grazing practices;
            ``(5) forest management and afforestation; and
            ``(6) planned or managed carbon sinks, including natural 
        and artificial.
    ``(d) Requirements.--In developing and identifying carbon removal 
technologies and strategies under the program, the Secretary shall 
consider--
            ``(1) land use changes, including impacts on natural and 
        managed ecosystems;
            ``(2) ocean acidification;
            ``(3) net greenhouse gas emissions;
            ``(4) commercial viability;
            ``(5) potential for near-term impact;
            ``(6) potential for carbon reductions on a gigaton scale; 
        and
            ``(7) economic cobenefits.
    ``(e) Air Capture Technology Prize Competition.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Dilute media.--The term `dilute media' means 
                media in which the concentration of carbon dioxide is 
                less than 1 percent by volume.
                    ``(B) Prize competition.--The term `prize 
                competition' means the competitive technology prize 
                competition established under paragraph (2).
            ``(2) Establishment.--Not later than 1 year after the date 
        of enactment of the Enhancing Fossil Fuel Energy Carbon 
        Technology Act of 2019, the Secretary, in consultation with the 
        Administrator of the Environmental Protection Agency, shall 
        establish as part of the program a competitive technology prize 
        competition to award prizes for carbon dioxide capture from 
        dilute media.
            ``(3) Requirements.--In carrying out this subsection, the 
        Secretary, in accordance with section 24 of the Stevenson-
        Wydler Technology Innovation Act of 1980 (15 U.S.C. 3719), 
        shall develop requirements for--
                    ``(A) the prize competition process; and
                    ``(B) monitoring and verification procedures for 
                projects selected to receive a prize under the prize 
                competition.
            ``(4) Eligible projects.--To be eligible to be awarded a 
        prize under the prize competition, a project shall--
                    ``(A) meet minimum performance standards set by the 
                Secretary;
                    ``(B) meet minimum levels set by the Secretary for 
                the capture of carbon dioxide from dilute media; and
                    ``(C) demonstrate in the application of the project 
                for a prize--
                            ``(i) a design for a promising carbon 
                        capture technology that will--
                                    ``(I) be operated on a 
                                demonstration scale; and
                                    ``(II) have the potential to 
                                achieve significant reduction in the 
                                level of carbon dioxide in the 
                                atmosphere;
                            ``(ii) a successful bench-scale 
                        demonstration of a carbon capture technology; 
                        or
                            ``(iii) an operational carbon capture 
                        technology on a commercial scale.
    ``(f) Direct Air Capture Test Center.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of the Enhancing Fossil Fuel Energy Carbon Technology 
        Act of 2019, the Secretary shall award grants to 1 or more 
        entities for the operation of 1 or more test centers (referred 
        to in this subsection as a `Center') to provide unique testing 
        capabilities for innovative direct air capture and storage 
        technologies.
            ``(2) Purpose.--Each Center shall--
                    ``(A) advance research, development, demonstration, 
                and commercial application of direct air capture and 
                storage technologies;
                    ``(B) support pilot plant and full-scale 
                demonstration projects and test direct air capture and 
                storage technologies that represent the scale of 
                technology development beyond laboratory testing, but 
                not yet advanced to test under operational conditions 
                at commercial scale;
                    ``(C) develop front-end engineering design and 
                economic analysis; and
                    ``(D) maintain a public record of pilot and full-
                scale plant performance.
            ``(3) Selection.--
                    ``(A) In general.--The Secretary shall select 
                entities to receive grants under this subsection 
                according to such criteria as the Secretary may 
                develop.
                    ``(B) Competitive basis.--The Secretary shall 
                select entities to receive grants under this subsection 
                on a competitive basis.
                    ``(C) Priority criteria.--In selecting entities to 
                receive grants under this subsection, the Secretary 
                shall prioritize applicants that--
                            ``(i) have access to existing or planned 
                        research facilities for direct air capture and 
                        storage technologies;
                            ``(ii) are institutions of higher education 
                        with established expertise in engineering for 
                        direct air capture and storage technologies, or 
                        partnerships with such institutions of higher 
                        education; or
                            ``(iii) have access to existing research 
                        and test facilities for bulk materials design 
                        and testing, component design and testing, or 
                        professional engineering design.
            ``(4) Formula for awarding grants.--The Secretary may 
        develop a formula for awarding grants under this subsection.
            ``(5) Schedule.--
                    ``(A) In general.--Each grant awarded under this 
                subsection shall be for a term of not more than 5 
                years, subject to the availability of appropriations.
                    ``(B) Renewal.--The Secretary may renew a grant for 
                1 or more additional 5-year terms, subject to a 
                competitive merit review and the availability of 
                appropriations.
            ``(6) Termination.--To the extent otherwise authorized by 
        law, the Secretary may eliminate, and terminate grant funding 
        under this subsection for, a Center during any 5-year term 
        described in paragraph (5) if the Secretary determines that the 
        Center is underperforming.
    ``(g) Large-scale Pilots and Demonstration.--In supporting the 
technology development activities under this section, the Secretary is 
encouraged to support carbon removal pilot and demonstration projects, 
including--
            ``(1) pilot projects that test direct air capture systems 
        capable of capturing 10 to 100 tonnes of carbon oxides per year 
        to provide data for demonstration-scale projects; and
            ``(2) direct air capture demonstration projects capable of 
        capturing greater than 1,000 tonnes of carbon oxides per year.
    ``(h) Intraagency Coordination.--The direct air capture activities 
carried out under subsections (c)(1) and (e) shall be carried out in 
coordination with, and leveraging lessons learned from, the coal and 
natural gas technology program established under section 962(b)(1).
    ``(i) Accounting.--The Secretary shall collaborate with the 
Administrator of the Environmental Protection Agency and the heads of 
other relevant Federal agencies to develop and improve accounting 
frameworks and tools to accurately measure carbon removal and 
sequestration methods and technologies across the Federal Government.
    ``(j) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section--
            ``(1) $75,000,000 for fiscal year 2020, of which 
        $15,000,000 shall be used to carry out subsection (e);
            ``(2) $63,500,000 for fiscal year 2021;
            ``(3) $66,150,000 for fiscal year 2022;
            ``(4) $69,458,000 for fiscal year 2023; and
            ``(5) $72,930,000 for fiscal year 2024.''.
    (b) Technical Amendment.--The table of contents for the Energy 
Policy Act of 2005 (Public Law 109-58; 119 Stat. 600) (as amended by 
section 4(a)(2)) is amended by adding at the end of the items relating 
to subtitle F of title IX the following:

``Sec. 969A. Carbon removal.''.

SEC. 6. FOSSIL ENERGY.

    Section 961(a) of the Energy Policy Act of 2005 (42 U.S.C. 
16291(a)) is amended--
            (1) in paragraph (6), by inserting ``, including technology 
        development to reduce emissions of carbon dioxide and 
        associated emissions of heavy metals within coal combustion 
        residues and gas streams resulting from fossil fuel use and 
        production'' before the period at the end; and
            (2) by striking paragraph (7) and inserting the following:
            ``(7) Increasing the export of fossil energy-related 
        equipment, technology, including emissions control 
        technologies, and services from the United States.
            ``(8) Developing carbon removal and utilization 
        technologies, products, and methods that result in net 
        reductions in greenhouse gas emissions, including direct air 
        capture and storage, and carbon use and reuse for commercial 
        application.
            ``(9) Improving the conversion, use, and storage of carbon 
        dioxide produced from fossil fuels.''.
                                                       Calendar No. 218

116th CONGRESS

  1st Session

                                S. 1201

                          [Report No. 116-115]

_______________________________________________________________________

                                 A BILL

 To amend the fossil energy research and development provisions of the 
 Energy Policy Act of 2005 to enhance fossil fuel technology, and for 
                            other purposes.

_______________________________________________________________________

                           September 24, 2019

                       Reported with an amendment
```