169 
(2) in subsection (b)— 
(A) in paragraph (1), by inserting ‘‘in sus-
tainable production systems that reduce green-
house gas emissions’’ after ‘‘hydrogen’’; 
(B) at the end of paragraph (3), by strik-
ing ‘‘and’’; 
(C) by redesignating paragraph (4) as 
paragraph (5); and 
(D) by inserting after paragraph (3) the 
following new paragraph: 
‘‘(4) develop cellulosic and other feedstocks that 
are less resource and land intensive and that pro-
mote sustainable use of resources, including soil, 
water, energy, forests, and land, and ensure protec-
tion of air, water, and soil quality; and’’. 
(b) TOOLS
AND EVALUATION.—The Secretary, in 
consultation with the Administrator of the Environmental 
Protection Agency and the Secretary of Agriculture, shall 
establish a research and development program to— 
(1) improve and develop analytical tools to fa-
cilitate the analysis of life-cycle energy and green-
house gas emissions, including emissions related to 
direct and indirect land use changes, attributable to 
all potential biofuel feedstocks and production proc-
esses; and 
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177 
bon capture and storage that are funded 
by the Department of Energy; and 
‘‘(viii) to support Environmental Pro-
tection Agency efforts, in consultation with 
other agencies, to develop a scientifically 
sound regulatory framework to enable com-
mercial-scale 
sequestration 
operations 
while safeguarding human health and un-
derground sources of drinking water. 
‘‘(3) LARGE-SCALE CARBON DIOXIDE SEQUES-
TRATION TESTING.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
conduct not less than 7 initial large-volume se-
questration tests, not including the FutureGen 
project, for geological containment of carbon di-
oxide (at least 1 of which shall be international 
in scope) to validate information on the cost 
and feasibility of commercial deployment of 
technologies for geological containment of car-
bon dioxide. 
‘‘(B) DIVERSITY OF FORMATIONS TO BE 
STUDIED.—In selecting formations for study 
under this paragraph, the Secretary shall con-
sider a variety of geological formations across 
the United States, and require characterization 
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178 
and modeling of candidate formations, as deter-
mined by the Secretary. 
‘‘(C) SOURCE
OF
CARBON
DIOXIDE
FOR 
LARGE-SCALE
SEQUESTRATION
DEMONSTRA-
TIONS.—In the process of any acquisition of 
carbon dioxide for sequestration demonstrations 
under subparagraph (A), the Secretary shall 
give preference to purchases of carbon dioxide 
from industrial and coal-fired electric genera-
tion facilities. To the extent feasible, the Sec-
retary shall prefer test projects from industrial 
and coal-fired electric generation facilities that 
would facilitate the creation of an integrated 
system of capture, transportation and storage 
of carbon dioxide. Until coal-fired electric gen-
eration facilities, either new or existing, are op-
erating with carbon dioxide capture tech-
nologies, other industrial sources of carbon di-
oxide should be pursued under this paragraph. 
The preference provided for under this subpara-
graph shall not delay the implementation of the 
large-scale sequestration tests under this para-
graph. 
‘‘(D) DEFINITION.—For purposes of this 
paragraph, the term ‘large-scale’ means the in-
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179 
jection of more than 1,000,000 metric tons of 
carbon dioxide annually, or a scale that demon-
strably exceeds the necessary thresholds in key 
geologic transients to validate the ability con-
tinuously to inject quantities on the order of 
several million metric tons of industrial carbon 
dioxide annually for a large number of years. 
‘‘(4) LARGE-SCALE DEMONSTRATION OF CAR-
BON DIOXIDE CAPTURE TECHNOLOGIES.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
carry out at least 3 and no more than 5 dem-
onstrations, that include each of the tech-
nologies described in subparagraph (B), for the 
large-scale capture of carbon dioxide from in-
dustrial sources of carbon dioxide, at least 2 of 
which are facilities that generate electric energy 
from fossil fuels. Candidate facilities for other 
demonstrations under this paragraph shall in-
clude facilities that refine petroleum, manufac-
ture iron or steel, manufacture cement or ce-
ment clinker, manufacture commodity chemi-
cals, and ethanol and fertilizer plants. Consider-
ation may be given to capture of carbon dioxide 
from industrial facilities and electric generation 
carbon sources that are near suitable geological 
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180 
reservoirs and could continue sequestration. To 
ensure reduced carbon dioxide emissions, the 
Secretary shall take necessary actions to pro-
vide for the integration of the program under 
this paragraph with the long-term carbon diox-
ide sequestration demonstrations described in 
paragraph (3). These actions should not delay 
implementation of the large-scale sequestration 
tests authorized in paragraph (3). 
‘‘(B) TECHNOLOGIES.—The technologies 
referred 
to 
in 
subparagraph 
(A) 
are 
precombustion capture, post-combustion cap-
ture, and oxycombustion. 
‘‘(C) SCOPE OF AWARD.—An award under 
this paragraph shall be only for the portion of 
the project that carries out the large-scale cap-
ture (including purification and compression) of 
carbon dioxide, as well as the cost of transpor-
tation and injection of carbon dioxide. 
‘‘(5) PREFERENCE
IN
PROJECT
SELECTION 
FROM MERITORIOUS PROPOSALS.—In making com-
petitive awards under this subsection, subject to the 
requirements of section 989, the Secretary shall— 
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