Title: Carbon Utilization Act of 2018
Policy area: Agriculture and Food

Summary:
Carbon Utilization Act of 2018
This bill modifies several Department of Agriculture (USDA) programs to authorize additional grants, loans, and loan guarantees for carbon utilization technologies, such as carbon capture, utilization, and sequestration; and biogas systems. The bill also requires USDA to establish: (1) a carbon utilization education program, and (2) an interagency biogas opportunities task force.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6457 Introduced in House (IH)]

<DOC>






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 jurisdiction 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 Representatives 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''.

SEC. 2. BIOREFINERY, RENEWABLE CHEMICAL, AND BIOBASED PRODUCT 
              MANUFACTURING ASSISTANCE.

    Section 9003(b)(3) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8103(b)(3)) is amended--
            (1) in subparagraph (A), by striking ``produces an advanced 
        biofuel; and'' 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'';
            (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, compression, or 
                utilization of carbon dioxide that is produced at a 
                biorefinery producing an advanced biofuel, a renewable 
                chemical, or a biobased product.''.

SEC. 3. BIOMASS RESEARCH AND DEVELOPMENT.

    Section 9008 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8108) is amended--
            (1) in subsection (a)(1)--
                    (A) in subparagraph (A), by striking ``or'' at the 
                end;
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
                    ``(C) carbon dioxide that--
                            ``(i) is intended for permanent 
                        sequestration or utilization; and
                            ``(ii) is a byproduct of the production of 
                        the products described in subparagraphs (A) and 
                        (B).'';
            (2) in subsection (d)(2)(A)--
                    (A) in clause (xii), by striking ``and'' at the 
                end;
                    (B) by redesignating clause (xiii) as clause (xiv); 
                and
                    (C) by inserting after clause (xii) the following:
                            ``(xiii) an individual with expertise in 
                        carbon dioxide capture, utilization, and 
                        sequestration; and''; and
            (3) in subsection (e)--
                    (A) in paragraph (2)(B)--
                            (i) in clause (ii), by striking ``and'' at 
                        the end; and
                            (ii) by adding at the end the following:
                            ``(iv) to permanently sequester or utilize 
                        carbon dioxide that is produced as a byproduct 
                        of the production of biobased products; and''; 
                        and
                    (B) in paragraph (3)(B)--
                            (i) in clause (i), by striking ``and'' at 
                        the end;
                            (ii) in clause (ii), by striking the period 
                        at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                            ``(iii) the development of technologies to 
                        permanently sequester or utilize carbon dioxide 
                        that is produced as a byproduct of the 
                        production of biobased products.''.

SEC. 4. BIOGAS RESEARCH AND ADOPTION OF BIOGAS SYSTEMS.

    Title IX of the Farm Security and Rural Investment Act of 2002 is 
amended by inserting after section 9011 (7 U.S.C. 8111) the following:

``SEC. 9012. BIOGAS RESEARCH AND ADOPTION OF BIOGAS SYSTEMS.

    ``(a) Definitions.--In this section:
            ``(1) Anaerobic digestion.--The term `anaerobic digestion' 
        means a biological process or series 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 mixture 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, carbon dioxide, and other 
        trace compounds are removed from biogas, as determined by the 
        end user.
            ``(4) Biogas system.--The term `biogas system' means a 
        system--
                    ``(A) with the potential to capture and use biogas, 
                including biogas from organic waste, including animal 
                manure, food waste, waste from landfills, and 
                wastewater; and
                    ``(B) that includes--
                            ``(i) the infrastructure necessary to 
                        manage the organic waste referred to in 
                        subparagraph (A);
                            ``(ii) the equipment necessary to 
                        generate--
                                    ``(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 material, 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.--
            ``(1) Establishment.--Not later than 180 days after the 
        date of enactment of the Carbon Utilization 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, programs, 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 responsible 
                for biogas research or biogas system financing (or a 
                designee), including a representative 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 Secretary, the 
                Secretary of Energy, and the Administrator; and
                    ``(C) 1 or more nongovernmental or industry 
                stakeholders, including 1 or more stakeholders 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 carrying 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 private 
                        financing of biogas systems;
                    ``(B) review Federal procurement guidelines to 
                ensure that products of biogas systems are eligible for 
                and promoted by applicable procurement 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;
                    ``(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 markets that provide 
                environmental benefits;
                    ``(G) identify and investigate research gaps in 
                biogas and anaerobic digestion technology, including 
                research gaps in environmental benefits, market 
                assessment, and performance standards;
                    ``(H) assess the most cost-effective voluntary 
                investments in biogas to reduce waste and methane 
                emissions; and
                    ``(I) identify and advance additional priorities, 
                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--
                    ``(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 investment 
                        in biogas systems in the landfill, livestock, 
                        wastewater, and other relevant sectors; and
                            ``(iii) to enhance opportunities for 
                        private and public sector partnerships to 
                        finance biogas systems.
    ``(c) Advancement of Biogas Research.--
            ``(1) Study on biogas.--
                    ``(A) In general.--The Secretary, in coordination 
                with the Secretary of Energy and the Administrator, 
                shall enter into an agreement with the National 
                Renewable Energy Laboratory to conduct a study relating 
                to biogas.
                    ``(B) Study.--Under the agreement described in 
                subparagraph (A), the study conducted by the National 
                Renewable Energy Laboratory shall include an analysis 
                of--
                            ``(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, including 
                        through the use of co-digestion;
                            ``(iii) opportunities for, and barriers to, 
                        the productive use of biogas system co-
                        products, carbon dioxide from biogas 
                        processing, 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 injection 
                        of biogas; and
                            ``(v) any other subject relating to biogas, 
                        as determined by the Interagency Biogas 
                        Opportunities Task Force established under 
                        subsection (b)(1).
                    ``(C) Report.--Not later than 2 years after the 
                date of enactment of the Carbon Utilization Act of 
                2018, the Secretary shall submit to Congress a report 
                on the study conducted under this paragraph.
            ``(2) Collection of data for biogas markets.--The 
        Secretary, in coordination with the Secretary of Energy and the 
        Administrator, shall identify, 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 dioxide' means 
        carbon dioxide that is produced as a byproduct of the 
        production of a biobased product.
            ``(2) Eligible entity.--The term `eligible entity' means an 
        entity that--
                    ``(A) is--
                            ``(i) an organization described in section 
                        501(c)(3) of the Internal Revenue 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 consultation 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.--
            ``(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 authorized 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 SEQUESTRATION.

    (a) General Authorization.--Notwithstanding any other provision of 
law (including regulations), in carrying out any program pursuant to 
this Act or an amendment made by this Act under which the Secretary of 
Agriculture provides a loan or loan guarantee, the Secretary may 
provide such a loan or loan guarantee for carbon dioxide capture and 
utilization facilities employing commercially demonstrated 
technologies.
    (b) Rural Electrification Assistance Programs.--
            (1) General authority of the secretary of agriculture.--
        Section 2(a) of the Rural Electrification Act of 1936 (7 U.S.C. 
        902(a)) is amended by striking ``efficiency and conservation'' 
        and inserting ``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 dioxide 
                capture and utilization facilities employing 
                commercially demonstrated technology'' after 
                ``generating plants''; and
                    (B) by striking ``efficiency and conservation'' 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 ``(including carbon 
        capture and utilization)'' after ``generation'' each place it 
        appears.
    (c) Rural and Remote Communities Electrification 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 renewable 
energy facilities.'' and inserting the following: ``preference to--
                    ``(A) renewable energy facilities; and
                    ``(B) facilities for carbon capture and 
                utilization.''.

SEC. 7. TECHNICAL ASSISTANCE FOR RURAL ELECTRIFICATION LOANS.

    Section 2 of the Rural Electrification Act of 1936 (7 U.S.C. 902) 
is amended by adding at the end the following:
    ``(c) Technical Assistance.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of the Carbon Utilization 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).
            ``(2) Form of assistance.--The technical assistance that 
        the Secretary may request pursuant to a memorandum of 
        understanding entered into under paragraph (1) may include--
                    ``(A) direct advice;
                    ``(B) tools, maps, and training relating to--
                            ``(i) the implementation of demand-side 
                        management of electric and telephone service in 
                        rural areas;
                            ``(ii) energy efficiency and conservation 
                        programs; and
                            ``(iii) on-grid and off-grid renewable 
                        energy systems; and
                    ``(C) any other forms of assistance determined 
                necessary by the Secretary.''.
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