Federal Carbon Dioxide Removal Leadership Act of 2022
Bill: H.R.7434 | Sponsor: Rep. Tonko, Paul (D-NY)
Policy area: Environmental Protection

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.

To require the Secretary of Energy to remove carbon dioxide directly 
         from ambient air or seawater, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Carbon Dioxide Removal 
Leadership Act of 2022''.

SEC. 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'' 
                means any equipment, technique, or technology, placed 
                into service after January 1, 2022, that removes carbon 
                dioxide directly from ambient air or seawater, as 
                determined appropriate by the Secretary.
                    (B) Exclusion.--The term ``eligible technology'' 
                does not include any equipment, technique, or 
                technology that--
                            (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'' means to--
                    (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'' means the Secretary 
        of Energy.
            (4) Small removal project.--The term ``small removal 
        project'' means a project for the removal of carbon dioxide 
        that does not remove more than 5 percent of the net metric tons 
        of carbon dioxide required to be removed for the applicable 
        fiscal year under subsection (a).
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