H. R. 133—1344 
SEC. 3202. ENERGY STORAGE TECHNOLOGY AND MICROGRID ASSIST-
ANCE PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means— 
(A) a rural electric cooperative; 
(B) an agency, authority, or instrumentality of a State 
or political subdivision of a State that sells or otherwise 
uses electrical energy to provide electric services for cus-
tomers; or 
(C) a nonprofit organization working with at least 6 
entities described in subparagraph (A) or (B). 
(2) ENERGY STORAGE TECHNOLOGY.—The term ‘‘energy stor-
age technology’’ includes grid-enabled water heaters, building 
heating or cooling systems, electric vehicles, the production 
of hydrogen for transportation or industrial use, or other tech-
nologies that store energy. 
(3) MICROGRID.—The term ‘‘microgrid’’ means a localized 
grid that operates autonomously regardless of whether the 
grid can operate in connection with another grid. 
(4) RENEWABLE
ENERGY
SOURCE.—The term ‘‘renewable 
energy source’’ has the meaning given the term in section 
609(a) of the Public Utility Regulatory Policies Act of 1978 
(7 U.S.C. 918c(a)). 
(5) RURAL ELECTRIC COOPERATIVE.—The term ‘‘rural electric 
cooperative’’ means an electric cooperative (as defined in section 
3 of the Federal Power Act (16 U.S.C. 796)) that sells electric 
energy to persons in rural areas. 
(6) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 
of Energy. 
(b) IN GENERAL.—Not later than 180 days after the date of 
the enactment of this Act, the Secretary shall establish a program 
under which the Secretary shall— 
(1) provide grants to eligible entities under subsection (d); 
(2) provide technical assistance to eligible entities under 
subsection (e); and 
(3) disseminate information to eligible entities on— 
(A) the activities described in subsections (d)(1) and 
(e); and 
(B) potential and existing energy storage technology 
and microgrid projects. 
(c) COOPERATIVE AGREEMENT.—The Secretary may enter into 
a cooperative agreement with an eligible entity to carry out sub-
section (b). 
(d) GRANTS.— 
(1) IN
GENERAL.—The Secretary may award grants to 
eligible entities for identifying, evaluating, designing, and dem-
onstrating energy storage technology and microgrid projects 
that utilize energy from renewable energy sources. 
(2) APPLICATION.—To be eligible to receive a grant under 
paragraph (1), an eligible entity shall submit to the Secretary 
an application at such time, in such manner, and containing 
such information as the Secretary may require. 
(3) USE OF GRANT.—An eligible entity that receives a grant 
under paragraph (1)— 
(A) shall use the grant—
H. R. 133—1345 
(i) to conduct feasibility studies to assess the poten-
tial for implementation or improvement of energy stor-
age technology or microgrid projects; 
(ii) to analyze and implement strategies to over-
come barriers to energy storage technology or microgrid 
project 
implementation, 
including 
financial, 
con-
tracting, siting, and permitting barriers; 
(iii) to conduct detailed engineering of energy stor-
age technology or microgrid projects; 
(iv) to perform a cost-benefit analysis with respect 
to an energy storage technology or microgrid project; 
(v) to plan for both the short- and long-term inclu-
sion of energy storage technology or microgrid projects 
into the future development plans of the eligible entity; 
or 
(vi) to purchase and install necessary equipment, 
materials, and supplies for demonstration of emerging 
technologies; and 
(B) may use the grant to obtain technical assistance 
from experts in carrying out the activities described in 
subparagraph (A). 
(4) CONDITION.—As a condition of receiving a grant under 
paragraph (1), an eligible entity shall— 
(A) implement a public awareness campaign, in 
coordination with the Secretary, about the project imple-
mented under the grant in the community in which the 
eligible entity is located, which campaign shall include 
providing projected environmental benefits achieved under 
the project, where to find more information about the pro-
gram established under this section, and any other informa-
tion the Secretary determines necessary; 
(B) submit to the Secretary, and make available to 
the public, a report that describes— 
(i) any energy cost savings and environmental 
benefits achieved under the project; and 
(ii) the results of the project, including quantitative 
assessments to the extent practicable, associated with 
each activity described in paragraph (3)(A); and 
(C) create and disseminate tools and resources that 
will benefit other rural electric cooperatives, which may 
include cost calculators, guidebooks, handbooks, templates, 
and training courses. 
(5) COST-SHARE.—Activities under this subsection shall be 
subject to the cost-sharing requirements of section 988 of the 
Energy Policy Act of 2005 (42 U.S.C. 16352). 
(e) TECHNICAL ASSISTANCE.— 
(1) IN GENERAL.—In carrying out the program established 
under subsection (b), the Secretary may provide eligible entities 
with technical assistance relating to— 
(A) identifying opportunities for energy storage tech-
nology and microgrid projects; 
(B) 
understanding 
the 
technical 
and 
economic 
characteristics of energy storage technology or microgrid 
projects; 
(C) understanding financing alternatives; 
(D) permitting and siting issues;
H. R. 133—1346 
(E) obtaining case studies of similar and successful 
energy storage technology or microgrid projects; 
(F) reviewing and obtaining computer software for 
assessment, design, and operation and maintenance of 
energy storage technology or microgrid systems; and 
(G) understanding and utilizing the reliability and 
resiliency benefits of energy storage technology and 
microgrid projects. 
(2) EXTERNAL CONTRACTS.—In carrying out paragraph (1), 
the Secretary may enter into contracts with third-party experts, 
including engineering, finance, and insurance experts, to pro-
vide technical assistance to eligible entities relating to the 
activities described in such paragraph, or other relevant activi-
ties, as determined by the Secretary. 
(f) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There is authorized to be appropriated 
to carry out this section $15,000,000 for each of fiscal years 
2021 through 2025. 
(2) ADMINISTRATIVE COSTS.—Not more than 5 percent of 
the amount appropriated under paragraph (1) for each fiscal 
year shall be used for administrative expenses. 
TITLE IV—CARBON MANAGEMENT 
SEC. 4001. FOSSIL ENERGY. 
Section 961(a) of the Energy Policy Act of 2005 (42 U.S.C. 
16291(a)) is amended— 
(1) by redesignating paragraphs (1) through (7) as subpara-
graphs (A) through (G), respectively, and indenting appro-
priately; 
(2) in subparagraph (F) (as so redesignated), 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; 
(3) by striking subparagraph (G) (as so redesignated) and 
inserting the following: 
‘‘(G) Increasing the export of fossil energy-related 
equipment, technology, including emissions control tech-
nologies, and services from the United States. 
‘‘(H) Decreasing the cost of emissions control tech-
nologies for fossil energy production, generation, and 
delivery. 
‘‘(I) Significantly lowering greenhouse gas emissions 
for all fossil fuel production, generation, delivery, and utili-
zation technologies. 
‘‘(J) Developing carbon removal and utilization tech-
nologies, products, and methods that result in net reduc-
tions in greenhouse gas emissions, including direct air cap-
ture and storage, and carbon use and reuse for commercial 
application. 
‘‘(K) Improving the conversion, use, and storage of 
carbon oxides produced from fossil fuels. 
‘‘(L) Reducing water use, improving water reuse, and 
minimizing surface and subsurface environmental impact
H. R. 133—1347 
in the development of unconventional domestic oil and 
natural gas resources.’’; 
(4) by striking the subsection designation and all that 
follows through ‘‘The Secretary’’ in the first sentence of the 
matter preceding subparagraph (A) (as so redesignated) and 
inserting the following: 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN GENERAL.—The Secretary’’; 
(5) in paragraph (1) (as so designated), in the second sen-
tence of the matter preceding subparagraph (A) (as so redesig-
nated), by striking ‘‘Such programs’’ and inserting the following: 
‘‘(2) OBJECTIVES.—The programs described in paragraph 
(1) shall’’; and 
(6) by adding at the end the following: 
‘‘(3) PRIORITY.—In carrying out the objectives described 
in subparagraphs (F) through (K) of paragraph (2), the Sec-
retary shall prioritize activities and strategies that have the 
potential to significantly reduce emissions for each technology 
relevant to the applicable objective and the international 
commitments of the United States.’’. 
SEC. 4002. ESTABLISHMENT OF CARBON CAPTURE TECHNOLOGY PRO-
GRAM. 
(a) IN GENERAL.—The Energy Policy Act of 2005 is amended 
by striking section 962 (42 U.S.C. 16292) and inserting the fol-
lowing: 
‘‘SEC. 962. CARBON CAPTURE 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 tech-
nical 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 project application 
to commercial-scale demonstration or application. 
‘‘(2) NATURAL GAS.—The term ‘natural gas’ means any fuel 
consisting in whole or in part of— 
‘‘(A) natural gas; 
‘‘(B) liquid petroleum gas; 
‘‘(C) synthetic gas derived from petroleum or natural 
gas liquids; 
‘‘(D) any mixture of natural gas and synthetic gas; 
or 
‘‘(E) biomethane. 
‘‘(3) NATURAL GAS ELECTRIC GENERATION FACILITY.—
H. R. 133—1348 
‘‘(A) IN
GENERAL.—The term ‘natural gas electric 
generation facility’ means a facility that generates electric 
energy using natural gas as the fuel. 
‘‘(B) INCLUSIONS.—The term ‘natural gas electric 
generation facility’ includes without limitation a new or 
existing— 
‘‘(i) simple cycle plant; 
‘‘(ii) combined cycle plant; 
‘‘(iii) combined heat and power plant; or 
‘‘(iv) steam methane reformer that produces 
hydrogen from natural gas for use in the production 
of electric energy. 
‘‘(4) PROGRAM.—The term ‘program’ means the program 
established under subsection (b)(1). 
‘‘(5) TRANSFORMATIONAL TECHNOLOGY.— 
‘‘(A) IN
GENERAL.—The term ‘transformational tech-
nology’ means a technology that represents a significant 
change in the methods used to convert energy that will 
enable a step change in performance, efficiency, cost of 
electricity, and reduction of emissions as compared to the 
technology in existence on the date of enactment of the 
Energy Act of 2020. 
‘‘(B) INCLUSIONS.—The term ‘transformational tech-
nology’ includes a broad range of potential 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 tur-
bine 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-effi-
ciency modular power systems; 
‘‘(vi) advanced gasification systems; 
‘‘(vii) thermal cycling technologies; and 
‘‘(viii) any other technology the Secretary recog-
nizes as transformational technology. 
‘‘(b) CARBON CAPTURE TECHNOLOGY PROGRAM.— 
‘‘(1) IN GENERAL.—The Secretary shall establish a carbon 
capture technology program for the development of trans-
formational technologies that will significantly improve the effi-
ciency, effectiveness, costs, emissions reductions, and environ-
mental performance of coal and natural gas use, including 
in manufacturing and industrial facilities. 
‘‘(2) REQUIREMENTS.—The program shall include— 
‘‘(A) a research and development program; 
‘‘(B) large-scale pilot projects;
H. R. 133—1350 
‘‘(C) Decreasing the non-carbon dioxide relevant 
environmental impacts of coal and natural gas production, 
including by— 
‘‘(i) further reducing non-carbon dioxide air emis-
sions; and 
‘‘(ii) reducing the use, and managing the discharge, 
of water in power plant operations. 
‘‘(D) Accelerating the development of technologies to 
significantly decrease emissions from manufacturing and 
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) Entering into cooperative agreements to carry out 
and expedite demonstration projects (including pilot 
projects) to demonstrate the technical and commercial 
viability of technologies to reduce carbon dioxide emissions 
released from coal electric generation facilities and natural 
gas electric generation facilities for commercial deployment. 
‘‘(F) Identifying any barriers to the commercial deploy-
ment of any technologies under development for the capture 
of carbon dioxide produced by coal electric generation facili-
ties and natural gas electric generation facilities. 
‘‘(4) DEMONSTRATION PROJECTS.— 
‘‘(A) IN GENERAL.—In carrying out the program, the 
Secretary shall establish a demonstration program under 
which the Secretary, through a competitive, merit-reviewed 
process, shall enter into cooperative agreements by not 
later than September 30, 2025, for demonstration projects 
to demonstrate the construction and operation of 6 facilities 
to capture carbon dioxide from coal electric generation 
facilities, natural gas electric generation facilities, and 
industrial facilities. 
‘‘(B) TECHNICAL
ASSISTANCE.—The Secretary, to the 
maximum extent practicable, shall provide technical assist-
ance to any eligible entity seeking to enter into a coopera-
tive agreement described in subparagraph (A) for the pur-
pose of obtaining any necessary permits and licenses to 
demonstrate qualifying technologies. 
‘‘(C) ELIGIBLE ENTITIES.—The Secretary may enter into 
cooperative agreements under subparagraph (A) with 
industry stakeholders, including any industry stakeholder 
operating in partnership with the National Laboratories, 
institutions 
of 
higher 
education, 
multiinstitutional 
collaborations, and other appropriate entities. 
‘‘(D) COMMERCIAL-SCALE DEMONSTRATION PROJECTS.— 
‘‘(i) IN
GENERAL.—In carrying out the program, 
the Secretary shall establish a carbon capture tech-
nology commercialization program to demonstrate 
substantial improvements in the efficiency, effective-
ness, cost, and environmental performance of carbon 
capture technologies for power, industrial, and other 
commercial applications. 
‘‘(ii) 
REQUIREMENT.—The 
program 
established 
under clause (i) shall include funding for commercial-
H. R. 133—1351 
scale carbon capture technology demonstrations of 
projects supported by the Department, including 
projects in addition to the projects described in 
subparagraph (A), including funding for not more than 
2 projects to demonstrate substantial improvements 
in a particular technology type beyond the first of 
a kind demonstration and to account for considerations 
described in subparagraph (G). 
‘‘(E) REQUIREMENT.—Of the demonstration projects car-
ried out under subparagraph (A)— 
‘‘(i) 2 shall be designed to capture carbon dioxide 
from a natural gas electric generation facility; 
‘‘(ii) 2 shall be designed to capture carbon dioxide 
from a coal electric generation facility; and 
‘‘(iii) 2 shall be designed to capture carbon dioxide 
from an industrial facility not purposed for electric 
generation. 
‘‘(F) GOALS.—Each demonstration project under the 
demonstration program under subparagraph (A)— 
‘‘(i) shall be designed to further the development, 
deployment, and commercialization of technologies to 
capture and sequester carbon dioxide emissions from 
new and existing coal electric generation facilities, nat-
ural gas electric generation facilities, and industrial 
facilities; 
‘‘(ii) shall be financed in part by the private sector; 
and 
‘‘(iii) if necessary, shall secure agreements for the 
offtake of carbon dioxide emissions captured by quali-
fying technologies during the project. 
‘‘(G) APPLICATIONS.— 
‘‘(i) IN GENERAL.—To be eligible to enter into an 
agreement with the Secretary for a demonstration 
project under subparagraphs (A) and (D), an entity 
shall submit to the Secretary an application at such 
time, in such manner, and containing such information 
as the Secretary may require. 
‘‘(ii) REVIEW
OF
APPLICATIONS.—In reviewing 
applications submitted under clause (i), the Secretary, 
to the maximum extent practicable, shall— 
‘‘(I) ensure a broad geographic distribution of 
project sites; 
‘‘(II) ensure that a broad selection of electric 
generation facilities are represented; 
‘‘(III) ensure that a broad selection of tech-
nologies are represented; and 
‘‘(IV) leverage existing public-private partner-
ships and Federal resources. 
‘‘(H) GAO STUDY AND REPORT.— 
‘‘(i) STUDY AND REPORT.— 
‘‘(I) IN GENERAL.—Not later than 1 year after 
the date of enactment of the Energy Act of 2020, 
the Comptroller General of the United States shall 
conduct, and submit to the Committee on Energy 
and Natural Resources of the Senate and the Com-
mittee on Science, Space, and Technology of the 
House of Representatives a report on the results
H. R. 133—1352 
of, a study of the successes, failures, practices, 
and improvements of the Department in carrying 
out demonstration projects under this paragraph. 
‘‘(II) 
CONSIDERATIONS.—In 
conducting 
the 
study under subclause (I), the Comptroller General 
of the United States shall consider— 
‘‘(aa) applicant and contractor qualifica-
tions; 
‘‘(bb) project management practices at the 
Department; 
‘‘(cc) economic or market changes and 
other factors impacting project viability; 
‘‘(dd) completion of third-party agree-
ments, including power purchase agreements 
and carbon dioxide offtake agreements; 
‘‘(ee) regulatory challenges; and 
‘‘(ff) construction challenges. 
‘‘(ii) RECOMMENDATIONS.—The Secretary shall— 
‘‘(I) consider any relevant recommendations, 
as determined by the Secretary, provided in the 
report required under clause (i)(I); and 
‘‘(II) adopt such recommendations as the Sec-
retary considers appropriate. 
‘‘(I) REPORT.— 
‘‘(i) IN GENERAL.—Not later than 180 days after 
the date on which the Secretary solicits applications 
under subparagraph (G), and annually thereafter, the 
Secretary shall submit to the appropriate committees 
of jurisdiction of the Senate and the House of Rep-
resentatives a report that includes a detailed descrip-
tion of how the applications under the demonstration 
program established under subparagraph (A) were or 
will be solicited and how the applications were or will 
be evaluated, including— 
‘‘(I) a list of any activities carried out by the 
Secretary to solicit or evaluate the applications; 
and 
‘‘(II) a process for ensuring that any projects 
carried out under a cooperative agreement entered 
into under subparagraph (A) are designed to result 
in the development or demonstration of qualifying 
technologies. 
‘‘(ii) INCLUSIONS.—The Secretary shall include— 
‘‘(I) in the first report required under clause 
(i), a detailed list of technical milestones for the 
development and demonstration of each qualifying 
technology pursued under the demonstration pro-
gram established under subparagraph (A); 
‘‘(II) in each subsequent report required under 
clause (i), a description of the progress made 
towards 
achieving 
the 
technical 
milestones 
described in subclause (I) during the applicable 
period covered by the report; and 
‘‘(III) in each report required under clause (i)— 
‘‘(aa) an estimate of the cost of licensing, 
permitting, constructing, and operating each
H. R. 133—1353 
carbon capture facility expected to be con-
structed under the demonstration program 
established under subparagraph (A); 
‘‘(bb) a schedule for the planned construc-
tion and operation of each demonstration or 
pilot project under the demonstration pro-
gram; and 
‘‘(cc) an estimate of any financial assist-
ance, compensation, or incentives proposed to 
be paid by the host State, Indian Tribe, or 
local government with respect to each facility 
described in item (aa). 
‘‘(5) INTRAAGENCY
COORDINATION
FOR
CARBON
CAPTURE, 
UTILIZATION, AND SEQUESTRATION ACTIVITIES.—The carbon cap-
ture, utilization, and sequestration activities described in para-
graph (3)(B) shall be carried out by the Assistant Secretary 
for Fossil Energy, in coordination with the heads of other 
relevant offices of the Department and the National Labora-
tories. 
‘‘(6) CONSULTATIONS REQUIRED.—In carrying out the pro-
gram, the Secretary shall— 
‘‘(A) undertake international collaborations, taking into 
consideration the recommendations of the National Coal 
Council and the National Petroleum 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 Energy Act of 2020, 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 objec-
tives 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 2021 and 
2022; and 
‘‘(ii) $150,000,000 for each of fiscal years 2023 
through 2025; 
‘‘(B) subject to paragraph (2), for activities under the 
large-scale pilot projects program component described in 
subsection (b)(2)(B)—
H. R. 133—1354 
‘‘(i) $225,000,000 for each of fiscal years 2021 and 
2022; 
‘‘(ii) $200,000,000 for each of fiscal years 2023 
and 2024; and 
‘‘(iii) $150,000,000 for fiscal year 2025; 
‘‘(C) for activities under the demonstration projects 
program component described in subsection (b)(2)(C)— 
‘‘(i) $500,000,000 for each of fiscal years 2021 
though 2024; and 
‘‘(ii) $600,000,000 for fiscal year 2025; 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 2021 through 2024. 
‘‘(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). 
‘‘(e) CARBON CAPTURE TEST CENTERS.— 
‘‘(1) IN GENERAL.—Not later than 2 years after the date 
of enactment of the Energy Act of 2020, 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 distinct testing capabilities for innovative carbon 
capture technologies. 
‘‘(2) PURPOSE.—Each Center shall— 
‘‘(A) advance research, development, demonstration, 
and commercial application of carbon capture technologies; 
‘‘(B) support large-scale pilot projects and demonstra-
tion projects and test carbon capture technologies; and 
‘‘(C) develop front-end engineering design and economic 
analysis. 
‘‘(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 
consideration of applicants that— 
‘‘(i) have access to existing or planned research 
facilities for carbon capture technologies; 
‘‘(ii) are institutions of higher education with estab-
lished expertise in engineering for carbon capture tech-
nologies, or partnerships with such institutions of 
higher education; or 
‘‘(iii) have access to existing research and test 
facilities for bulk materials design and testing, compo-
nent design and testing, or professional engineering 
design. 
‘‘(D) EXISTING CENTERS.—In selecting entities to receive 
grants under this subsection, the Secretary shall prioritize 
carbon capture test centers in existence on the date of 
enactment of the Energy Act of 2020. 
‘‘(4) FORMULA FOR AWARDING GRANTS.—The Secretary may 
develop a formula for awarding grants under this subsection. 
‘‘(5) SCHEDULE.—
H. R. 133—1355 
‘‘(A) IN GENERAL.—Each grant awarded under this sub-
section 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. 
‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated to carry out this subsection $25,000,000 
for each of fiscal years 2021 through 2025.’’. 
(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. Carbon capture technology program.’’. 
SEC. 4003. CARBON STORAGE VALIDATION AND TESTING. 
(a) IN GENERAL.—Section 963 of the Energy Policy Act of 2005 
(42 U.S.C. 16293) is amended— 
(1) by striking subsection (d) and inserting the following: 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary to carry out this section— 
‘‘(1) $200,000,000 for fiscal year 2021; 
‘‘(2) $200,000,000 for fiscal year 2022; 
‘‘(3) $150,000,000 for fiscal year 2023; 
‘‘(4) $150,000,000 for fiscal year 2024; and 
‘‘(5) $100,000,000 for fiscal year 2025.’’; 
(2) in subsection (c)— 
(A) by striking paragraphs (5) and (6) and inserting 
the following: 
‘‘(f) COST SHARING.—Activities carried out under this section 
shall be subject to the cost-sharing requirements of section 988.’’; 
and 
(B) by redesignating paragraph (4) as subsection (e) 
and indenting appropriately; 
(3) in subsection (e) (as so redesignated)— 
(A) by redesignating subparagraphs (A) and (B) as 
paragraphs (1) and (2), respectively, and indenting appro-
priately; and 
(B) by striking ‘‘subsection’’ each place it appears and 
inserting ‘‘section’’; and 
(4) by striking the section designation and heading and 
all that follows through the end of subsection (c)(3) and 
inserting the following: 
‘‘SEC. 963. CARBON STORAGE VALIDATION AND TESTING. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) LARGE-SCALE
CARBON
SEQUESTRATION.—The term 
‘large-scale carbon sequestration’ means a scale that— 
‘‘(A) demonstrates the ability to inject into geologic 
formations and sequester carbon dioxide; and
H. R. 133—1356 
‘‘(B) has a goal of sequestering not less than 50 million 
metric tons of carbon dioxide over a 10-year period. 
‘‘(2) 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; 
‘‘(G) supporting cost and business model assessments 
to examine the economic viability of technologies and sys-
tems developed under the program; and 
‘‘(H) providing information to the Environmental 
Protection Agency, States, local governments, Tribal 
governments, and other appropriate entities, to ensure the 
protection of human health and the environment. 
‘‘(3) GEOLOGIC SETTINGS.—In carrying out research activi-
ties 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 dem-
onstration program under which the Secretary shall provide
H. R. 133—1357 
funding for demonstration projects to collect and validate 
information on the cost and feasibility of commercial deploy-
ment of large-scale carbon sequestration technologies. 
‘‘(2) EXISTING REGIONAL CARBON SEQUESTRATION PARTNER-
SHIPS.—In carrying out paragraph (1), the Secretary may pro-
vide additional funding to regional carbon sequestration part-
nerships 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 Energy Act of 2020) for additional work on that project. 
‘‘(3) DEMONSTRATION
COMPONENTS.—Each demonstration 
project carried out under this subsection shall include longitu-
dinal 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 enact-
ment of the Energy Act of 2020, 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 seques-
tration 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.— 
‘‘(1) IN GENERAL.—The Secretary may 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 Secretary in seeking to transition large-scale carbon seques-
tration demonstration projects into integrated commercial stor-
age complexes under 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 demonstra-
tion projects under subsection (c) into integrated commer-
cial storage complexes.’’. 
(b) TECHNICAL AMENDMENT.—The table of contents for the 
Energy Policy Act of 2005 (Public Law 109–58; 119 Stat. 600;
H. R. 133—1358 
121 Stat. 1708) is amended by striking the item relating to section 
963 and inserting the following: 
‘‘Sec. 963. Carbon storage validation and testing.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 703(a)(3) of the Department of Energy Carbon 
Capture and Sequestration Research, Development, and Dem-
onstration Act of 2007 (42 U.S.C. 17251(a)(3)) is amended, 
in the first sentence of the matter preceding subparagraph 
(A), by— 
(A) striking ‘‘section 963(c)(3)’’ and inserting ‘‘section 
963(c)’’; and 
(B) striking ‘‘16293(c)(3)’’ and inserting ‘‘16293(c)’’. 
(2) Section 704 of the Department of Energy Carbon Cap-
ture and Sequestration Research, Development, and Dem-
onstration Act of 2007 (42 U.S.C. 17252) is amended, in the 
first sentence, by— 
(A) striking ‘‘section 963(c)(3)’’ and inserting ‘‘section 
963(c)’’; and 
(B) striking ‘‘16293(c)(3)’’ and inserting ‘‘16293(c)’’. 
SEC. 4004. 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. 969A. CARBON UTILIZATION PROGRAM. 
‘‘(a) IN GENERAL.—The Secretary shall establish a program 
of research, development, and demonstration for carbon utiliza-
tion— 
‘‘(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 tech-
nologies, 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 and carbon oxides for commercial 
and industrial products and other products with potential 
market value; 
‘‘(3) to identify and assess carbon capture technologies for 
industrial systems; and 
‘‘(4) to identify and assess alternative uses for raw coal 
and processed coal products in all phases that result in no 
significant emissions of carbon dioxide or other pollutants, 
including products derived from carbon engineering, carbon 
fiber, and coal conversion methods. 
‘‘(b) DEMONSTRATION PROGRAMS FOR THE PURPOSE OF COMMER-
CIALIZATION.— 
‘‘(1) IN GENERAL.—Not later than 180 days after the date 
of enactment of the Energy Act of 2020, as part of the program 
established under subsection (a), the Secretary shall establish 
a 2-year demonstration program in each of the 2 major coal- 
producing regions of the United States for the purpose of
H. R. 133—1359 
partnering with private institutions in coal mining regions to 
accelerate the commercial deployment of coal-carbon products. 
‘‘(2) COST SHARING.—Activities under paragraph (1) shall 
be subject to the cost-sharing requirements of section 988. 
‘‘(c) CARBON UTILIZATION RESEARCH CENTER.— 
‘‘(1) IN GENERAL.—In carrying out the program under sub-
section (a), the Secretary shall establish and operate a national 
Carbon Utilization Research Center (referred to in this sub-
section as the ‘Center’), which shall focus on early stage 
research and development activities including— 
‘‘(A) post-combustion and pre-combustion capture of 
carbon dioxide; 
‘‘(B) advanced compression technologies for new and 
existing fossil fuel-fired power plants; 
‘‘(C) technologies to convert carbon dioxide to valuable 
products and commodities; and 
‘‘(D) advanced carbon dioxide storage technologies that 
consider a range of storage regimes. 
‘‘(2) SELECTION.—The Secretary shall— 
‘‘(A) select the Center under this subsection on a 
competitive, merit-reviewed basis; and 
‘‘(B) consider applications from the National Labora-
tories, institutions of higher education, multiinstitutional 
collaborations, and other appropriate entities. 
‘‘(3) EXISTING CENTERS.—In selecting the Center under this 
subsection, the Secretary shall prioritize carbon utilization 
research centers in existence on the date of enactment of the 
Energy Act of 2020. 
‘‘(4) DURATION.—The Center established under this sub-
section shall receive support for a period of not more than 
5 years, subject to the availability of appropriations. 
‘‘(5) RENEWAL.—On the expiration of any period of support 
of the Center, the Secretary may renew support for the Center, 
on a merit-reviewed basis, for a period of not more than 5 
years. 
‘‘(6) TERMINATION.—Consistent with the existing authori-
ties of the Department, the Secretary may terminate the Center 
for cause during the performance period. 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary to carry out this section— 
‘‘(1) $54,000,000 for fiscal year 2021; 
‘‘(2) $55,250,000 for fiscal year 2022; 
‘‘(3) $56,562,500 for fiscal year 2023; 
‘‘(4) $57,940,625 for fiscal year 2024; and 
‘‘(5) $59,387,656 for fiscal year 2025. 
‘‘(e) COORDINATION.—The Secretary shall coordinate the activi-
ties authorized in this section with the activities authorized in 
section 969 as part of one consolidated program at the Department. 
Nothing in section 969 shall be construed as limiting the authorities 
provided in this section.’’. 
(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. 969A. Carbon utilization program.’’. 
(b) STUDY.—
H. R. 133—1360 
(1) IN GENERAL.—The Secretary of Energy (in this section 
referred to as the ‘‘Secretary’’) 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, coal-derived carbon, and 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) determine the feasibility of, and opportunities for, 
the commercialization of coal-derived carbon products, 
including for— 
(i) commercial purposes; 
(ii) industrial purposes; 
(iii) defense and military purposes; 
(iv) agricultural purposes, including soil amend-
ments and fertilizers; 
(v) medical and pharmaceutical applications; 
(vi) construction and building applications; 
(vii) energy applications; and 
(viii) production of critical minerals; 
(D) 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; 
(E) describe the economic, climate, and environmental 
impacts of any well-integrated national carbon dioxide pipe-
line system, including suggestions for policies that could— 
(i) improve the economic impact of the system; 
and 
(ii) mitigate impacts of the system; 
(F) 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; 
(G) identify emerging technologies and approaches for 
carbon utilization that show promise for scale-up, dem-
onstration, deployment, and commercialization; 
(H) 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. R. 133—1361 
(I)(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); 
(J)(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 (I)(i); and 
(ii) identify gaps in the research efforts under clause 
(i); 
(K) develop a comprehensive research agenda that 
addresses long- and short-term research needs and 
opportunities for technologies that may be important to 
minimizing net greenhouse gas emissions from the use 
of coal and natural gas; and 
(L)(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 deploy-
ment 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 a 
report describing the results of the study under paragraph 
(1). 
SEC. 4005. HIGH EFFICIENCY TURBINES. 
(a) IN GENERAL.—Subtitle F of title IX of the Energy Policy 
Act of 2005 (42 U.S.C. 16291 et seq.) is further amended by adding 
at the end the following: 
‘‘SEC. 969B. HIGH EFFICIENCY TURBINES. 
‘‘(a) IN GENERAL.—The Secretary, acting through the Assistant 
Secretary for Fossil Energy (referred to in this section as the ‘Sec-
retary’), shall establish a multiyear, multiphase program (referred 
to in this section as the ‘program’) of research, development, and 
technology demonstration to improve the efficiency of gas turbines 
used in power generation systems and aviation. 
‘‘(b) PROGRAM ELEMENTS.—The program shall— 
‘‘(1) support first-of-a-kind engineering and detailed gas 
turbine design for small-scale and utility-scale electric power 
generation, including— 
‘‘(A) high temperature materials, including superalloys, 
coatings, and ceramics; 
‘‘(B) improved heat transfer capability; 
‘‘(C) manufacturing technology required to construct 
complex 3-dimensional geometry parts with improved aero-
dynamic capability; 
‘‘(D) combustion technology to produce higher firing 
temperature while lowering nitrogen oxide and carbon mon-
oxide emissions per unit of output; 
‘‘(E) advanced controls and systems integration; 
‘‘(F) advanced high performance compressor technology; 
and 
‘‘(G) validation facilities for the testing of components 
and subsystems;
H. R. 133—1362 
‘‘(2) include technology demonstration through component 
testing, subscale testing, and full-scale testing in existing fleets; 
‘‘(3) include field demonstrations of the developed tech-
nology elements to demonstrate technical and economic feasi-
bility; 
‘‘(4) assess overall combined cycle and simple cycle system 
performance; 
‘‘(5) increase fuel flexibility by enabling gas turbines to 
operate with high proportions of, or pure, hydrogen or other 
renewable gas fuels; 
‘‘(6) enhance foundational knowledge needed for low-emis-
sion combustion systems that can work in high-pressure, high- 
temperature environments required for high-efficiency cycles; 
‘‘(7) increase operational flexibility by reducing turbine 
start-up times and improving the ability to accommodate 
flexible power demand; and 
‘‘(8) include any other elements necessary to achieve the 
goals described in subsection (c), as determined by the Sec-
retary, in consultation with private industry. 
‘‘(c) PROGRAM GOALS.— 
‘‘(1) IN GENERAL.—The goals of the program shall be— 
‘‘(A) in phase I, to develop a conceptual design of, 
and to develop and demonstrate the technology required 
for— 
‘‘(i) advanced high efficiency gas turbines to 
achieve, on a lower heating value basis— 
‘‘(I) a combined cycle efficiency of not less than 
65 percent; or 
‘‘(II) a simple cycle efficiency of not less than 
47 percent; and 
‘‘(ii) aviation gas turbines to achieve a 25 percent 
reduction in fuel burn by improving fuel efficiency 
to existing best-in-class turbo-fan engines; and 
‘‘(B) in phase II, to develop a conceptual design of 
advanced high efficiency gas turbines that can achieve, 
on a lower heating value basis— 
‘‘(i) a combined cycle efficiency of not less than 
67 percent; or 
‘‘(ii) a simple cycle efficiency of not less than 50 
percent. 
‘‘(2) ADDITIONAL GOALS.—If a goal described in paragraph 
(1) has been achieved, the Secretary, in consultation with pri-
vate industry and the National Academy of Sciences, may 
develop additional goals or phases for advanced gas turbine 
research and development. 
‘‘(d) FINANCIAL ASSISTANCE.— 
‘‘(1) IN
GENERAL.—The Secretary may provide financial 
assistance, including grants, to carry out the program. 
‘‘(2) PROPOSALS.—Not later than 180 days after the date 
of enactment of the Energy Act of 2020, the Secretary shall 
solicit proposals from industry, small businesses, universities, 
and other appropriate parties for conducting activities under 
this section. 
‘‘(3) CONSIDERATIONS.—In selecting proposed projects to 
receive financial assistance under this subsection, the Secretary 
shall give special consideration to the extent to which the 
proposed project will—
H. R. 133—1363 
‘‘(A) stimulate the creation or increased retention of 
jobs in the United States; and 
‘‘(B) promote and enhance technology leadership in 
the United States. 
‘‘(4) COMPETITIVE
AWARDS.—The Secretary shall provide 
financial assistance under this subsection on a competitive 
basis, with an emphasis on technical merit. 
‘‘(5) COST SHARING.—Financial assistance provided under 
this subsection shall be subject to the cost sharing requirements 
of section 988. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out this section $50,000,000 for each 
of fiscal years 2021 through 2025.’’. 
(b) TECHNICAL AMENDMENT.—The table of contents for the 
Energy Policy Act of 2005 (Public Law 109–58; 119 Stat. 600) 
is further amended by adding at the end of the items relating 
to subtitle F of title IX the following: 
‘‘Sec. 969B. High efficiency gas turbines.’’. 
SEC. 4006. NATIONAL ENERGY TECHNOLOGY LABORATORY REFORMS. 
(a) IN GENERAL.—Subtitle F of title IX of the Energy Policy 
Act of 2005 (42 U.S.C. 16291 et seq.) is further amended by adding 
at the end the following: 
‘‘SEC. 969C. NATIONAL ENERGY TECHNOLOGY LABORATORY REFORMS. 
‘‘(a) SPECIAL HIRING AUTHORITY FOR SCIENTIFIC, ENGINEERING, 
AND PROJECT MANAGEMENT PERSONNEL.— 
‘‘(1) IN
GENERAL.—The Director of the National Energy 
Technology Laboratory (referred to in this section as the 
‘Director’) may— 
‘‘(A) make appointments to positions in the National 
Energy Technology Laboratory to assist in meeting a spe-
cific project or research need, without regard to civil service 
laws, of individuals who— 
‘‘(i) have an advanced scientific or engineering 
background; or 
‘‘(ii) have a business background and can assist 
in specific technology-to-market needs; 
‘‘(B) fix the basic pay of any employee appointed under 
subparagraph (A) at a rate not to exceed level II of the 
Executive Schedule under section 5313 of title 5, United 
States Code; and 
‘‘(C) pay any employee appointed under subparagraph 
(A) payments in addition to the basic pay fixed under 
subparagraph (B), subject to the condition that the total 
amount of additional payments paid to an employee under 
this subparagraph for any 12-month period shall not exceed 
the least of— 
‘‘(i) $25,000; 
‘‘(ii) the amount equal to 25 percent of the annual 
rate of basic pay of that employee; and 
‘‘(iii) the amount of the limitation that is applicable 
for a calendar year under section 5307(a)(1) of title 
5, United States Code. 
‘‘(2) LIMITATIONS.—