‘‘(2) ELIGIBLE ACTIVITIES.—Activities eligible 
to receive financial assistance under this section in-
clude— 
‘‘(A) assessments of technological or eco-
nomic barriers to the widescale deployment of 
carbon removal pathways and technologies; and 
‘‘(B) lifecycle assessments for carbon re-
moval pathways and technologies, including 
gathering data in partnership with a direct air 
capture test center authorized under section 
969D(f)(1) of the Energy Policy Act of 2005 
(42 U.S.C. 16298d(f)(1)). 
‘‘(3) APPLICATIONS.—An eligible entity seeking 
financial assistance under this section shall submit 
to the Secretary an application that includes a de-
scription of— 
‘‘(A) the applicable project; 
‘‘(B) the software programs, consultants, 
and general methodologies to be used to con-
duct the assessment; 
‘‘(C) the location of any applicable facility 
or project; 
‘‘(D) expected feedstocks and other inputs; 
and 
‘‘(E) the expected use of carbon removed. 
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‘‘(4) PRIORITY.—In selecting eligible entities to 
receive financial assistance under this section, the 
Secretary shall give priority to eligible entities 
that— 
‘‘(A) make the assessment publicly avail-
able, with confidential business information re-
dacted or removed; and 
‘‘(B) have not previously received financial 
assistance under this section.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
for the Energy Act of 2020 (Public Law 116–260; 134 
Stat. 2419) is amended by inserting after the item relating 
to section 5002 the following: 
‘‘Sec. 5003. Quantifying the benefits of carbon removal.’’. 
TITLE II—CARBON REMOVAL 
FIRST MOVERS PILOT PROGRAM 
SEC. 201. CARBON REMOVAL FIRST MOVERS PILOT PRO-
GRAM. 
(a) IN GENERAL.—Subtitle F of title IX of the En-
ergy Policy Act of 2005 (42 U.S.C. 16291 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 969E. CARBON REMOVAL FIRST MOVERS PILOT PRO-
GRAM. 
‘‘(a) PURPOSES.—The purposes of this section are— 
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‘‘(1) to accelerate the deployment and commer-
cialization of carbon removal pathways and tech-
nologies; 
‘‘(2) to stimulate the development and commer-
cialization of low-carbon products made with carbon 
dioxide removed from the atmosphere or oceans; and 
‘‘(3) to support the development of technologies 
relating to carbon removal. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) ADDITIONAL.—The term ‘additional’, with 
respect to carbon dioxide removed from the atmos-
phere or upper hydrosphere, means that carbon di-
oxide was removed pursuant to an intentional carbon 
removal activity that delivers a net removal of car-
bon dioxide from the atmosphere, measured on a 
lifecycle basis, that would not have occurred without 
the carbon removal activity. 
‘‘(2) ALL-IN
COST.—The term ‘all-in cost’ 
means the total cost of— 
‘‘(A) the capture, transport, and storage of 
carbon dioxide; and 
‘‘(B) the measurement, reporting, and 
verification of carbon dioxide removed on a net 
ton carbon dioxide equivalent basis. 
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‘‘(3) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means a carbon removal facility that— 
‘‘(A) is located in the United States; 
‘‘(B) meets all applicable Federal and 
State permitting requirements; and 
‘‘(C) meets financial and technical criteria 
established by the Secretary. 
‘‘(4) REMOVAL.—The term ‘removal’ means— 
‘‘(A) the capture of carbon dioxide from 
the atmosphere or upper hydrosphere through a 
chemical, physical, or other process; and 
‘‘(B) the subsequent permanent storage or 
use of the carbon dioxide in a manner that en-
sures that the carbon dioxide does not reenter 
the atmosphere or upper hydrosphere. 
‘‘(5) UPPER HYDROSPHERE.—The term ‘upper 
hydrosphere’ means the total liquid water existing 
on the surface level of the earth, including— 
‘‘(A) oceans; 
‘‘(B) lakes; 
‘‘(C) rivers; and 
‘‘(D) other surface bodies of water. 
‘‘(c) PROGRAM.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a competitive purchasing pilot program under 
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which the Secretary shall purchase from eligible en-
tities carbon dioxide removed from the atmosphere 
or upper hydrosphere. 
‘‘(2) PURCHASE.—In carrying out the pilot pro-
gram under paragraph (1), the Secretary shall pur-
chase, subject to the availability of appropriations, 
removed carbon dioxide from eligible entities— 
‘‘(A) until the date on which the first re-
verse auction is held under paragraph (3), by 
making a payment per net ton carbon equiva-
lent basis to account for lifecycle greenhouse 
gas inputs to carbon removal in an amount de-
termined by the Secretary; and 
‘‘(B) beginning with the first reverse auc-
tion held under paragraph (3), in accordance 
with the reverse auction procedures described in 
that paragraph. 
‘‘(3) REVERSE AUCTION PROCEDURES.— 
‘‘(A) IN GENERAL.—Not later than 2 years 
after the date of enactment of this section, and 
annually thereafter, the Secretary shall conduct 
a reverse auction under which— 
‘‘(i) the Secretary shall solicit bids 
from eligible entities in each tier described 
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in subparagraph (B)(ii) (referred to in this 
section as a ‘permanence tier’); and 
‘‘(ii) eligible entities shall submit to 
the Secretary sealed bids describing— 
‘‘(I) a desired price for the re-
moved carbon dioxide on a per net ton 
carbon dioxide equivalent basis; 
‘‘(II) the estimated net ton car-
bon dioxide equivalent removed by the 
eligible entity annually that the eligi-
ble entity desires the Secretary to 
purchase at the desired price; 
‘‘(III) details of the permanence 
of the removed carbon dioxide; 
‘‘(IV) details on the purity, loca-
tion, and transportation options for 
the removed carbon dioxide to be pur-
chased by the Secretary for purposes 
of the all-in costs; 
‘‘(V) a lifecycle assessment of the 
operation to quantify the net carbon 
dioxide removed, while accounting for 
greenhouse gas emissions associated 
with the production of the inputs nec-
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essary for the carbon dioxide removal 
and storage processes; and 
‘‘(VI) any other details the Sec-
retary may require. 
‘‘(B) SELECTION.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall— 
‘‘(I) examine the bids submitted 
under subparagraph (A)(ii) to deter-
mine which bids are acceptable under 
the criteria established by the Sec-
retary for the applicable permanence 
tier; and 
‘‘(II) of the bids determined to be 
acceptable under subclause (I), select 
the bids containing the lowest desired 
price for carbon dioxide until the 
amount of funds available for the ap-
plicable permanence tier of the reverse 
auction is obligated. 
‘‘(ii) PERMANENCE TIERS.—In select-
ing bids under clause (i), the Secretary 
shall group the permanence of each carbon 
removal bid into 1 of the following 2 tiers: 
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‘‘(I) Medium-term tier for bids 
providing for the removal of carbon 
dioxide for at least 100 years, but 
fewer than 1,000 years. 
‘‘(II) Long-term tier for bids pro-
viding for the removal of carbon diox-
ide for 1,000 years or more. 
‘‘(iii) PRIORITY.—In any case in 
which the desired price in 2 or more bids 
submitted under subparagraph (A)(ii) for 
an applicable permanence tier is equal, the 
Secretary shall give priority to eligible enti-
ties that demonstrate outstanding potential 
for local and regional economic develop-
ment in carrying out projects to remove 
carbon dioxide from ambient air or aquatic 
sources. 
‘‘(4) COST CAP.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), for purposes of a reverse auction 
under paragraph (3), the Secretary shall— 
‘‘(i) determine the current average 
market price per net ton carbon dioxide 
equivalent basis to account for lifecycle 
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greenhouse gas inputs of removed carbon 
within each permanence tier; and 
‘‘(ii) set that price as the maximum 
price per ton to be paid under the reverse 
auction within each permanence tier. 
‘‘(B) INCREASED CAP.—In the case of an 
eligible entity that uses a technology that has 
the potential to eventually remove carbon diox-
ide at an all-in cost of less than $100 per net 
ton carbon dioxide equivalent, the Secretary 
shall double the maximum price per net ton 
carbon dioxide equivalent established under 
subparagraph (A)(ii) with respect to the eligible 
entity. 
‘‘(5) REQUIREMENT.—In purchasing removed 
carbon dioxide under the program under paragraph 
(1), the Secretary shall determine that the carbon 
dioxide— 
‘‘(A) is additional; 
‘‘(B) shall be delivered not later than 5 
years after the date of the purchase; 
‘‘(C) shall have a monitoring, reporting, 
and verification plan approved by the Depart-
ment of Energy; and 
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‘‘(D) has not less than a 99 percent likeli-
hood of being stored for not fewer than 100 
years. 
‘‘(d) USE
OF CARBON DIOXIDE.—Carbon dioxide 
purchased under the pilot program under subsection (c), 
at the discretion of the Secretary, may be used or stored 
in any manner that ensures that the carbon dioxide does 
not reenter the atmosphere or upper hydrosphere during 
the time period associated with the applicable permanence 
tier. 
‘‘(e) PILOT
PROGRAM
COORDINATION.—Amounts 
made available under this section may be made available 
to carry out pilot and demonstration projects described in 
section 969D(f)(2)(B) and section 969D(g). 
‘‘(f) CONFIDENTIALITY.—The Secretary shall estab-
lish procedures to ensure that any confidential, private, 
proprietary, or privileged information that is included in 
a sealed bid submitted under this section is not publicly 
disclosed or otherwise improperly used. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated to the Secretary to carry out this sec-
tion— 
‘‘(A) $20,000,000 for fiscal year 2023; 
‘‘(B) $30,000,000 for fiscal year 2024; and 
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‘‘(C) $60,000,000 for each of fiscal years 
2025 through 2027. 
‘‘(2) ALLOCATION.—Amounts made available 
under paragraph (1) for each fiscal year shall be al-
located between the permanence tiers as follows: 
‘‘(A) 70 percent shall be allocated for the 
permanence 
tier 
described 
in 
subsection 
(c)(3)(B)(ii)(II). 
‘‘(B) 30 percent shall be allocated for the 
permanence 
tier 
described 
in 
subsection 
(c)(3)(B)(ii)(I).’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
for the Energy Policy Act of 2005 (Public Law 109–59; 
119 Stat. 600; 134 Stat. 2550) is amended by adding at 
the end of the items relating to subtitle F of title IX the 
following: 
‘‘Sec. 969E. Carbon Removal First Movers Pilot Program.’’. 
Æ 
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