Federal Carbon Dioxide Removal Leadership Act of 2022

To require the Secretary of Energy to remove carbon dioxide directly from ambient air or seawater, and for other purposes. 1. Short title This Act may be cited as the Federal Carbon Dioxide Removal Leadership Act of 2022 2. Federal requirement to remove carbon dioxide (a) Required amounts The Secretary shall, to the extent economically feasible as provided in subsection (d), remove— (1) 50,000 net metric tons of carbon dioxide, calculated on a lifecycle basis, for each of fiscal years 2024 through 2025; (2) 500,000 net metric tons of carbon dioxide, calculated on a lifecycle basis, for each of fiscal years 2026 through 2028; (3) 5,000,000 net metric tons of carbon dioxide, calculated on a lifecycle basis, for each of fiscal years 2029 through 2034; and (4) 10,000,000 net metric tons of carbon dioxide, calculated on a lifecycle basis, for fiscal year 2035 and each fiscal year thereafter. (b) Timing The Secretary shall remove each amount of carbon dioxide required under subsection (a) by not later than 3 years after the beginning of the fiscal year for which such removal is required. (c) Small removal project set-Aside To the extent practicable, at least 20 percent of the net metric tons of carbon dioxide required to be removed for each of fiscal years 2024 through 2034 under subsection (a) shall be removed by small removal projects. (d) Economic feasibility (1) In general The removal of carbon dioxide under this section shall be considered economically feasible if such removal can be accomplished or, in the case of a contract, purchased— (A) with respect to such removal carried out for any of fiscal years 2024 through 2025, at a price per metric ton of carbon dioxide of not more than $550; (B) with respect to such removal carried out for any of fiscal years 2026 through 2028, at a price per metric ton of carbon dioxide of not more than $400; (C) with respect to such removal carried out for any of fiscal years 2029 through 2031, at a price per metric ton of carbon dioxide of not more than $300; (D) with respect to such removal carried out for any of fiscal years 2032 through 2034, at a price per metric ton of carbon dioxide of not more than $200; and (E) with respect to such removal carried out for fiscal year 2035 and each fiscal year thereafter, at a price per metric ton of carbon dioxide of not more than $150. (2) Inclusion of monitoring, reporting, and verification costs In determining whether the removal of carbon dioxide is considered economically feasible under paragraph (1), the price for such removal shall include any costs associated with the monitoring, reporting, and verification required under subsection (f)(1). (3) Multi-year contracts Notwithstanding paragraph (1), the removal of carbon dioxide carried out pursuant to a multi-year contract entered into under subsection (h) shall be considered economically feasible if such removal can be accomplished at the applicable dollar amount for the first fiscal year of the contract, as provided in paragraph (1), through the entire length of such contract. (e) Federal assistance Funds received pursuant to a contract entered into under subsection (h) shall not be considered Federal assistance or otherwise affect eligibility for any Federal assistance, including tax incentives. (f) Monitoring, reporting, and verification (1) In general The Secretary, or an entity the Secretary enters into a contract with under subsection (h), shall monitor, report, and verify the net metric tons of carbon dioxide the Secretary or such entity, as applicable, removed for purposes of this section. (2) Best practices The Secretary shall ensure that any project for the removal of carbon dioxide for which a contract is entered into under subsection (h) shall follow the best available practices, as determined by the Secretary, for monitoring, reporting, and verifying the net metric tons of carbon dioxide removed under the project, including best practices— (A) used by similar carbon dioxide removal projects; and (B) necessary to ensure safe, effective, and efficient removal of carbon dioxide. (3) Prohibition on double counting Carbon dioxide that is removed for the purposes of compliance with any other greenhouse gas emissions management program, including any foreign, Federal, State, local, or private greenhouse gas emissions management program, as determined by the Secretary, may not be considered removed under subsection (a) for purposes of meeting the requirements of such subsection. (g) Priorities In carrying out this section, the Secretary shall give priority to any project for the removal of carbon dioxide that— (1) minimizes the amount of greenhouse gas emissions released by carrying out such project; (2) supports the commercialization of innovative removal technologies; (3) increases the diversity of commercially available eligible technologies; (4) provides the greatest potential for domestic job creation; (5) results in economic development or economic diversification in regions or localities that have historically generated significant economic activity from the production, processing, transportation, or combustion of fossil fuels, including through the use of coal mines, fossil fuel-fired electricity generating units, and petroleum refining facilities; (6) quantifies and mitigates the effect of removing carbon dioxide on environmental justice, the environment, and public health; and (7) includes robust public engagement and community benefits. (h) Contracts (1) In general The Secretary may enter into contracts to meet the requirements of subsection (a). (2) Length A contract entered into under this subsection may not be for a term of more than 15 years. (i) Report Not later than January 1, 2027, and every 2 years thereafter, the Secretary shall submit to Congress, and release to the public, a report on the progress of carrying out the requirements of this section, which such report shall include— (1) the amounts verified under subsection (f)(1); (2) the total price, and price per metric ton, to remove carbon dioxide for the applicable fiscal year as required under subsection (a); (3) the methods associated with the monitoring, reporting, and verification required under subsection (f)(1); (4) an estimate of how removing carbon dioxide under this section affects environmental justice, the environment, and public health; and (5) information on potential labor impacts and job creation resulting from fulfilling the requirements of subsection (a). (j) Authorization of appropriations There are authorized to be appropriated such sums as are necessary to carry out this section. (k) Definitions In this section: (1) Eligible technology (A) In general The term eligible technology (B) Exclusion The term eligible technology (i) removes carbon dioxide which is deliberately released from naturally occurring subsurface springs; (ii) removes carbon dioxide using natural photosynthesis; or (iii) is related to the extraction, refinement, delivery, or use of fossil fuels, including enhanced oil recovery. (C) Expansion of eligible technology Notwithstanding subparagraph (B)(ii), any equipment, technique, or technology that removes carbon dioxide using gasification or pyrolysis of solid, nonhazardous, and cellulosic waste materials may be considered an eligible technology under this section if the Secretary, by rule— (i) determines an entity that carries out a removal project under this section is able to adequately monitor, report, and verify the amount of greenhouse gas emissions, calculated on a lifecycle basis (including direct emissions and significant indirect emissions), associated with such equipment, technique, or technology; (ii) determines an entity that carries out a removal project under this section is able to adequately mitigate the environmental impacts (including impacts on biodiversity, land use, and air and water quality) associated with such equipment, technique, or technology; and (iii) requires an entity carrying out a removal project under this section to— (I) adequately monitor, report, and verify the amount of greenhouse gas emissions, calculated on a lifecycle basis (including direct emissions and significant indirect emissions), associated with such equipment, technique, or technology; and (II) adequately mitigate the environmental impacts (including impacts on biodiversity, land use, and air and water quality) associated with such equipment, technique, or technology. (2) Remove The term remove (A) capture carbon dioxide using eligible technology; and (B) permanently store such captured carbon dioxide— (i) in a subsurface geologic formation or in materials, including building materials and mineralized carbon materials; or (ii) using other permanent storage methods, as determined by the Secretary. (3) Secretary The term Secretary (4) Small removal project The term small removal project

Summary: Federal Carbon Dioxide Removal Leadership Act of 2022 This bill requires the Department of Energy to remove and permanently store, as is economically feasible, specified amounts of carbon dioxide on a specified schedule, culminating in 10 million net metric tons of carbon dioxide removal for FY2035 and each fiscal year thereafter.