I 
115TH CONGRESS 
2D SESSION 
H. R. 6457 
To amend the Farm Security and Rural Investment Act of 2002 to advance 
carbon utilization technologies, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 19, 2018 
Mr. PETERS (for himself and Mr. YOUNG of Iowa) introduced the following 
bill; which was referred to the Committee on Agriculture, and in addition 
to the Committees on Energy and Commerce, and Science, Space, and 
Technology, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To amend the Farm Security and Rural Investment Act 
of 2002 to advance carbon utilization technologies, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Carbon Utilization Act 
of 2018’’. 
VerDate Sep 11 2014 
18:43 Jul 30, 2018
Jkt 079200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6457.IH
H6457
tkelley on DSKBCP9HB2PROD with BILLS
SEC. 
2. 
BIOREFINERY, 
RENEWABLE 
CHEMICAL, 
AND 
BIOBASED PRODUCT MANUFACTURING AS-
SISTANCE. 
Section 9003(b)(3) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8103(b)(3)) is amend-
ed— 
(1) in subparagraph (A), by striking ‘‘produces 
an advanced biofuel; and’’ and inserting the fol-
lowing: ‘‘produces any 1 or more, or a combination, 
of— 
‘‘(i) an advanced biofuel; 
‘‘(ii) a renewable chemical; or 
‘‘(iii) a biobased product’’; 
(2) in subparagraph (B), by striking ‘‘produces 
an advanced biofuel.’’ and inserting the following: 
‘‘produces any 1 or more, or a combination, of— 
‘‘(i) an advanced biofuel; 
‘‘(ii) a renewable chemical; or 
‘‘(iii) a biobased product; and’’; and 
(3) by adding at the end the following: 
‘‘(C) a technology for the capture, com-
pression, or utilization of carbon dioxide that is 
produced at a biorefinery producing an ad-
vanced biofuel, a renewable chemical, or a 
biobased product.’’. 
VerDate Sep 11 2014 
18:43 Jul 30, 2018
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6457.IH
H6457
tkelley on DSKBCP9HB2PROD with BILLS
‘‘SEC. 9012. BIOGAS RESEARCH AND ADOPTION OF BIOGAS 
SYSTEMS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ANAEROBIC
DIGESTION.—The term ‘an-
aerobic digestion’ means a biological process or se-
ries of biological processes— 
‘‘(A) through which microorganisms break 
down biodegradable material in the absence of 
oxygen; and 
‘‘(B) the end products of which are biogas 
and digested materials. 
‘‘(2) BIOGAS.—The term ‘biogas’ means a mix-
ture of methane and carbon dioxide produced by the 
bacterial decomposition of organic materials in the 
absence of oxygen. 
‘‘(3) BIOGAS PROCESSING.—The term ‘biogas 
processing’ means the process by which water, car-
bon dioxide, and other trace compounds are removed 
from biogas, as determined by the end user. 
‘‘(4) BIOGAS SYSTEM.—The term ‘biogas sys-
tem’ means a system— 
‘‘(A) with the potential to capture and use 
biogas, including biogas from organic waste, in-
cluding animal manure, food waste, waste from 
landfills, and wastewater; and 
‘‘(B) that includes— 
VerDate Sep 11 2014 
18:43 Jul 30, 2018
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H6457.IH
H6457
tkelley on DSKBCP9HB2PROD with BILLS
‘‘(i) the infrastructure necessary to 
manage the organic waste referred to in 
subparagraph (A); 
‘‘(ii) the equipment necessary to gen-
erate— 
‘‘(I) electricity, heat, and fuel; 
and 
‘‘(II) biogas system co-products; 
and 
‘‘(iii) the equipment necessary for 
biogas processing. 
‘‘(5) BIOGAS SYSTEM CO-PRODUCT.—The term 
‘biogas system co-product’ means a nonenergy 
biogas system product produced from digested mate-
rial, including soil amendments, fertilizers, compost, 
animal bedding, and feedstock for plastics and 
chemicals. 
‘‘(6) DIGESTED MATERIAL.—The term ‘digested 
material’ means solid or liquid digested material— 
‘‘(A) produced by digesters; and 
‘‘(B) that contains nutrients and organic 
carbon. 
‘‘(b) INTERAGENCY BIOGAS OPPORTUNITIES TASK 
FORCE.— 
VerDate Sep 11 2014 
18:43 Jul 30, 2018
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H6457.IH
H6457
tkelley on DSKBCP9HB2PROD with BILLS
‘‘(1) ESTABLISHMENT.—Not later than 180 
days after the date of enactment of the Carbon Uti-
lization Act of 2018, the Secretary, acting jointly 
with the Secretary of Energy and the Administrator, 
shall establish an Interagency Biogas Opportunities 
Task Force (referred to in this subsection as the 
‘Task Force’) that shall coordinate policies, pro-
grams, and research to accelerate— 
‘‘(A) biogas research; and 
‘‘(B) investment in cost-effective biogas 
systems. 
‘‘(2) MEMBERSHIP.—The Task Force shall be 
composed of— 
‘‘(A) the head of each Federal office re-
sponsible for biogas research or biogas system 
financing (or a designee), including a represent-
ative from the Department of Agriculture, the 
Department of Energy, and the Environmental 
Protection Agency; 
‘‘(B) 1 or more representatives of State or 
local governments, as determined by the Sec-
retary, the Secretary of Energy, and the Ad-
ministrator; and 
‘‘(C) 1 or more nongovernmental or indus-
try stakeholders, including 1 or more stake-
VerDate Sep 11 2014 
18:43 Jul 30, 2018
Jkt 079200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H6457.IH
H6457
tkelley on DSKBCP9HB2PROD with BILLS
holders from the dairy and biogas industries, as 
determined by the Secretary, the Secretary of 
Energy, and the Administrator. 
‘‘(3) DUTIES OF THE TASK FORCE.—In car-
rying out paragraph (1), the Task Force shall— 
‘‘(A) evaluate and improve the coordination 
of loan and grant programs of the Federal 
agencies represented on the Task Force— 
‘‘(i) to broaden the financing options 
available for biogas systems; and 
‘‘(ii) to enhance opportunities for pri-
vate financing of biogas systems; 
‘‘(B) review Federal procurement guide-
lines to ensure that products of biogas systems 
are eligible for and promoted by applicable pro-
curement programs of the Federal Government; 
‘‘(C) in coordination with the Secretary of 
Commerce, evaluate the development of North 
American Industry Classification System and 
North American Product Classification System 
codes for biogas and biogas system products; 
‘‘(D) review opportunities and develop 
strategies to overcome barriers to integrating 
biogas into electricity and renewable natural 
gas markets; 
VerDate Sep 11 2014 
18:43 Jul 30, 2018
Jkt 079200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H6457.IH
H6457
tkelley on DSKBCP9HB2PROD with BILLS
‘‘(E) develop tools to broaden the market 
for nonenergy biogas system products, including 
by developing best management practices for— 
‘‘(i) the use and land application of 
digestate; and 
‘‘(ii) the use of carbon dioxide from 
biogas processing; 
‘‘(F) provide information on the ability of 
biogas system products to participate in mar-
kets that provide environmental benefits; 
‘‘(G) identify and investigate research gaps 
in biogas and anaerobic digestion technology, 
including research gaps in environmental bene-
fits, market assessment, and performance 
standards; 
‘‘(H) assess the most cost-effective vol-
untary investments in biogas to reduce waste 
and methane emissions; and 
‘‘(I) identify and advance additional prior-
ities, as determined by the Task Force. 
‘‘(4) REPORT.—Not later than 18 months after 
the date of the establishment of the Task Force, the 
Task Force shall submit to Congress a report that— 
VerDate Sep 11 2014 
18:43 Jul 30, 2018
Jkt 079200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H6457.IH
H6457
tkelley on DSKBCP9HB2PROD with BILLS
‘‘(A) describes the steps taken by the Task 
Force to carry out the duties of the Task Force 
under paragraph (3); and 
‘‘(B) identifies and prioritizes policies and 
technology opportunities— 
‘‘(i) to expand the biogas industry; 
‘‘(ii) to eliminate barriers to invest-
ment in biogas systems in the landfill, live-
stock, wastewater, and other relevant sec-
tors; and 
‘‘(iii) to enhance opportunities for pri-
vate and public sector partnerships to fi-
nance biogas systems. 
‘‘(c) ADVANCEMENT OF BIOGAS RESEARCH.— 
‘‘(1) STUDY ON BIOGAS.— 
‘‘(A) IN GENERAL.—The Secretary, in co-
ordination with the Secretary of Energy and 
the Administrator, shall enter into an agree-
ment with the National Renewable Energy Lab-
oratory to conduct a study relating to biogas. 
‘‘(B) STUDY.—Under the agreement de-
scribed in subparagraph (A), the study con-
ducted by the National Renewable Energy Lab-
oratory shall include an analysis of— 
VerDate Sep 11 2014 
18:43 Jul 30, 2018
Jkt 079200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H6457.IH
H6457
tkelley on DSKBCP9HB2PROD with BILLS
‘‘(i) barriers to injecting biogas into 
existing natural gas pipelines; 
‘‘(ii) methods for optimizing biogas 
systems, including methods to obtain the 
highest energy output from biogas, includ-
ing through the use of co-digestion; 
‘‘(iii) opportunities for, and barriers 
to, the productive use of biogas system co- 
products, carbon dioxide from biogas proc-
essing, and recovered nutrients; 
‘‘(iv) the optimal configuration of 
local, State, or regional infrastructure for 
the production of electricity, heat, or fuel 
from biogas, including infrastructure for 
the aggregation, cleaning, and pipeline in-
jection of biogas; and 
‘‘(v) any other subject relating to 
biogas, as determined by the Interagency 
Biogas Opportunities Task Force estab-
lished under subsection (b)(1). 
‘‘(C) REPORT.—Not later than 2 years 
after the date of enactment of the Carbon Utili-
zation Act of 2018, the Secretary shall submit 
to Congress a report on the study conducted 
under this paragraph. 
VerDate Sep 11 2014 
18:43 Jul 30, 2018
Jkt 079200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H6457.IH
H6457
tkelley on DSKBCP9HB2PROD with BILLS
‘‘(2) COLLECTION OF DATA FOR BIOGAS MAR-
KETS.—The Secretary, in coordination with the Sec-
retary of Energy and the Administrator, shall iden-
tify, collect, and analyze environmental, technical, 
and economic performance data relating to biogas 
systems, including the production of energy of 
biogas systems, co-products, greenhouse gas and 
other emissions, water quality benefits, and other 
data necessary to develop markets for biogas and 
biogas system co-products.’’. 
SEC. 5. CARBON UTILIZATION EDUCATION PROGRAM. 
Title IX of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 8101 et seq.) is amended by adding 
at the end the following: 
‘‘SEC. 9014. CARBON UTILIZATION EDUCATION PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) CARBON DIOXIDE.—The term ‘carbon di-
oxide’ means carbon dioxide that is produced as a 
byproduct of the production of a biobased product. 
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means an entity that— 
‘‘(A) is— 
‘‘(i) an organization described in sec-
tion 501(c)(3) of the Internal Revenue 
VerDate Sep 11 2014 
18:43 Jul 30, 2018
Jkt 079200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H6457.IH
H6457
tkelley on DSKBCP9HB2PROD with BILLS
Code of 1986 and exempt from taxation 
under section 501(a) of such Code; or 
‘‘(ii) an institution of higher education 
(as defined in section 101(a) of the Higher 
Education 
Act 
of 
1965 
(20 
U.S.C. 
1001(a))); 
‘‘(B) has demonstrated knowledge about— 
‘‘(i) sequestration and utilization of 
carbon dioxide; or 
‘‘(ii) aggregation of organic waste 
from multiple sources into a single biogas 
system; and 
‘‘(C) has a demonstrated ability to conduct 
educational and technical support programs. 
‘‘(b) ESTABLISHMENT.—The Secretary, in consulta-
tion with the Secretary of Energy, shall make competitive 
grants to eligible entities— 
‘‘(1) to provide education to the public about 
the economic and emissions benefits of permanent 
sequestration or utilization of carbon dioxide; or 
‘‘(2) to provide education to biogas producers 
about opportunities for aggregation of organic waste 
from multiple sources into a single biogas system. 
‘‘(c) FUNDING.— 
VerDate Sep 11 2014 
18:43 Jul 30, 2018
Jkt 079200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H6457.IH
H6457
tkelley on DSKBCP9HB2PROD with BILLS
‘‘(1) MANDATORY FUNDING.—Of the funds of 
the Commodity Credit Corporation, the Secretary 
shall use for each of fiscal years 2019 through 
2023— 
‘‘(A) $1,000,000 to carry out subsection 
(b)(1); and 
‘‘(B) $1,000,000 to carry out subsection 
(b)(2). 
‘‘(2) DISCRETIONARY FUNDING.—There are au-
thorized to be appropriated for each of fiscal years 
2019 through 2023— 
‘‘(A) $1,000,000 to carry out subsection 
(b)(1); and 
‘‘(B) $1,000,000 to carry out subsection 
(b)(2).’’. 
SEC. 6. CARBON CAPTURE, UTILIZATION, AND SEQUESTRA-
TION. 
(a) GENERAL
AUTHORIZATION.—Notwithstanding 
any other provision of law (including regulations), in car-
rying out any program pursuant to this Act or an amend-
ment made by this Act under which the Secretary of Agri-
culture provides a loan or loan guarantee, the Secretary 
may provide such a loan or loan guarantee for carbon di-
oxide capture and utilization facilities employing commer-
cially demonstrated technologies. 
VerDate Sep 11 2014 
18:43 Jul 30, 2018
Jkt 079200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H6457.IH
H6457
tkelley on DSKBCP9HB2PROD with BILLS
(b) RURAL
ELECTRIFICATION
ASSISTANCE
PRO-
GRAMS.— 
(1) GENERAL AUTHORITY OF THE SECRETARY 
OF AGRICULTURE.—Section 2(a) of the Rural Elec-
trification Act of 1936 (7 U.S.C. 902(a)) is amended 
by striking ‘‘efficiency and conservation’’ and insert-
ing ‘‘efficiency, conservation, and carbon dioxide 
capture and utilization’’. 
(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
Section 4(a) of the Rural Electrification Act of 1936 
(7 U.S.C. 904(a)) is amended— 
(A) by inserting ‘‘and related carbon diox-
ide capture and utilization facilities employing 
commercially demonstrated technology’’ after 
‘‘generating plants’’; and 
(B) by striking ‘‘efficiency and conserva-
tion’’ and inserting ‘‘efficiency, conservation, 
and carbon dioxide capture and utilization’’. 
(3) ENERGY GENERATION, TRANSMISSION, AND 
DISTRIBUTION FACILITIES EFFICIENCY GRANTS AND 
LOANS IN RURAL COMMUNITIES WITH EXTREMELY 
HIGH ENERGY COSTS.—Section 19(a) of the Rural 
Electrification Act of 1936 (7 U.S.C. 918a(a)) is 
amended, in paragraphs (1) and (2), by inserting 
VerDate Sep 11 2014 
18:43 Jul 30, 2018
Jkt 079200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H6457.IH
H6457
tkelley on DSKBCP9HB2PROD with BILLS
‘‘(including carbon capture and utilization)’’ after 
‘‘generation’’ each place it appears. 
(c) RURAL
AND
REMOTE
COMMUNITIES
ELEC-
TRIFICATION GRANTS.—Section 609(c)(3) of the Public 
Utility Regulatory Policies Act of 1978 (7 U.S.C. 
918c(c)(3)) is amended by striking ‘‘preference to renew-
able energy facilities.’’ and inserting the following: ‘‘pref-
erence to— 
‘‘(A) renewable energy facilities; and 
‘‘(B) facilities for carbon capture and utili-
zation.’’. 
SEC. 7. TECHNICAL ASSISTANCE FOR RURAL ELECTRIFICA-
TION LOANS. 
Section 2 of the Rural Electrification Act of 1936 (7 
U.S.C. 902) is amended by adding at the end the fol-
lowing: 
‘‘(c) TECHNICAL ASSISTANCE.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the date of enactment of the Carbon Utiliza-
tion Act of 2018, the Secretary shall enter into a 
memorandum of understanding with the Secretary of 
Energy under which the Secretary of Energy shall 
provide technical assistance to applicants for loans 
made under subsection (a) and section 4(a). 
VerDate Sep 11 2014 
18:43 Jul 30, 2018
Jkt 079200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H6457.IH
H6457
tkelley on DSKBCP9HB2PROD with BILLS