Title: Fossil Energy Utilization, Enhancement, and Leadership Act of 2018
Policy area: Energy

Summary:
Fossil Energy Utilization, Enhancement, and Leadership Act of 2018
This bill addresses carbon capture, utilization, and storage, including by requiring the Department of Energy to:

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2803 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  2d Session
                                S. 2803

To amend the Energy Policy Act of 2005 to improve the conversion, use, 
and storage of carbon dioxide produced from fossil fuels, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 8, 2018

  Mr. Manchin (for himself and Ms. Heitkamp) introduced the following 
bill; which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
To amend the Energy Policy Act of 2005 to improve the conversion, use, 
and storage of carbon dioxide produced from fossil fuels, 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 ``Fossil Energy Utilization, 
Enhancement, and Leadership Act of 2018''.

SEC. 2. FOSSIL ENERGY.

    Section 961(a) of the Energy Policy Act of 2005 (42 U.S.C. 
16291(a)) is amended by adding at the end the following:
            ``(8) Improving the conversion, use, and storage of carbon 
        dioxide produced from fossil fuels.''.

SEC. 3. ESTABLISHMENT OF COAL TECHNOLOGY PROGRAM.

    The Energy Policy Act of 2005 is amended by striking section 962 
(42 U.S.C. 16292) and inserting the following:

``SEC. 962. COAL 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 
                technical 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 plant application to 
                        commercial-scale demonstration or application.
            ``(2) Net-negative carbon dioxide emissions project.--The 
        term `net-negative carbon dioxide emissions project' means a 
        project--
                    ``(A) that employs a technology for thermochemical 
                coconversion of coal and biomass fuels that--
                            ``(i) uses a carbon capture system; and
                            ``(ii) with carbon dioxide removal, the 
                        Secretary determines can provide electricity, 
                        fuels, or chemicals with net-negative carbon 
                        dioxide emissions from production and 
                        consumption of the end products, while removing 
                        atmospheric carbon dioxide;
                    ``(B) that will proceed initially through a large-
                scale pilot project for which front-end engineering 
                will be performed for bituminous, subbituminous, and 
                lignite coals; and
                    ``(C) through which each use of coal will be 
                combined with the use of a regionally indigenous form 
                of biomass energy, provided on a renewable basis, that 
                is sufficient in quantity to allow for net-negative 
                emissions of carbon dioxide (in combination with a 
                carbon capture system), while avoiding impacts on food 
                production activities.
            ``(3) Program.--The term `program' means the program 
        established under subsection (b)(1).
            ``(4) Transformational technology.--
                    ``(A) In general.--The term `transformational 
                technology' means a power generation technology that 
                represents a significant change in the methods used to 
                convert energy that will enable a step change in 
                performance, efficiency, and cost of electricity as 
                compared to the technology in existence on the date of 
                enactment of the Fossil Energy Utilization, 
                Enhancement, and Leadership Act of 2018.
                    ``(B) Inclusions.--The term `transformational 
                technology' includes a broad range of technology 
                improvements, including--
                            ``(i) thermodynamic improvements in energy 
                        conversion and heat transfer, including--
                                    ``(I) oxygen combustion;
                                    ``(II) chemical looping; and
                                    ``(III) the replacement of steam 
                                cycles with supercritical carbon 
                                dioxide cycles;
                            ``(ii) improvements in steam or carbon 
                        dioxide turbine technology;
                            ``(iii) improvements in carbon capture 
                        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; and
                            ``(v) any other technology the Secretary 
                        recognizes as transformational technology.
    ``(b) Coal Technology Program.--
            ``(1) In general.--The Secretary shall establish a coal 
        technology program to ensure the continued use of the abundant, 
        domestic coal resources of the United States through the 
        development of technologies that will significantly improve the 
        efficiency, effectiveness, costs, and environmental performance 
        of coal use.
            ``(2) Requirements.--The program shall include--
                    ``(A) a research and development program;
                    ``(B) large-scale pilot projects;
                    ``(C) demonstration projects;
                    ``(D) net-negative carbon dioxide emissions 
                projects; and
                    ``(E) a front-end engineering and design program.
            ``(3) Program goals and objectives.--In consultation with 
        the interested entities described in paragraph (4)(C), the 
        Secretary shall develop goals and objectives for the program to 
        be applied to the technologies developed within the program, 
        taking into consideration the following objectives:
                    ``(A) Ensure reliable, low-cost power from new and 
                existing coal plants.
                    ``(B) Achieve high conversion efficiencies.
                    ``(C) Address emissions of carbon dioxide through 
                high-efficiency platforms and carbon capture from new 
                and existing coal plants.
                    ``(D) Support small-scale and modular technologies 
                to enable incremental capacity additions and load 
                growth, in addition to large-scale generation 
                technologies.
                    ``(E) Support baseload operations for new and 
                existing applications of coal generation.
                    ``(F) Further reduce emissions of criteria 
                pollutants and reduce the use and manage the discharge 
                of water in power plant operations.
                    ``(G) Accelerate the development of technologies 
                that have transformational energy conversion 
                characteristics.
                    ``(H) Validate safe geological storage of large 
                volumes of anthropogenic sources of carbon dioxide and 
                support the development of the infrastructure needed to 
                support a carbon dioxide use and storage industry.
                    ``(I) Examine methods of converting coal to other 
                valuable products and commodities in addition to 
                electricity.
            ``(4) Consultations required.--In carrying out the program, 
        the Secretary shall--
                    ``(A) undertake international collaborations, 
                taking into consideration the recommendations of the 
                National Coal Council;
                    ``(B) use existing authorities to encourage 
                international cooperation; and
                    ``(C) consult with interested entities, including--
                            ``(i) coal producers;
                            ``(ii) industries that use coal;
                            ``(iii) organizations that promote coal and 
                        advanced coal 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 Fossil Energy Utilization, Enhancement, and 
        Leadership Act of 2018, 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 
        objectives 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) $200,000,000 for each of fiscal years 
                        2019 and 2020; and
                            ``(ii) $150,000,000 for each of fiscal 
                        years 2021 through 2023;
                    ``(B) for activities under the demonstration 
                projects program component described in subsection 
                (b)(2)(C)--
                            ``(i) $50,000,000 for each of fiscal years 
                        2019 and 2020;
                            ``(ii) $150,000,000 for fiscal year 2021; 
                        and
                            ``(iii) $200,000,000 for each of fiscal 
                        years 2022 and 2023;
                    ``(C) subject to paragraph (2), for activities 
                under the large-scale pilot projects program component 
                described in subsection (b)(2)(B), $250,000,000 for 
                each of fiscal years 2019 through 2023;
                    ``(D) for activities under the net-negative carbon 
                dioxide emissions projects program component described 
                in subsection (b)(2)(D), $22,000,000 for each of fiscal 
                years 2019 through 2023; and
                    ``(E) for activities under the front-end 
                engineering and design program described in subsection 
                (b)(2)(E), $50,000,000 for each of fiscal years 2019 
                through 2023.
            ``(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).''.

SEC. 4. REPORT ON CARBON DIOXIDE CAPTURE CONTRACTING AUTHORITY.

    Section 963 of the Energy Policy Act of 2005 (42 U.S.C. 16293) is 
amended by adding at the end the following:
    ``(e) Report on Carbon Dioxide Capture Contracting Authority.--
            ``(1) Definition of electric generation unit.--In this 
        subsection, the term `electric generation unit' means an 
        electric generation unit that--
                    ``(A) uses coal-based generation technology; and
                    ``(B) is capable of capturing carbon dioxide 
                emissions from the unit.
            ``(2) Report.--Not later than 180 days after the date of 
        enactment of the Fossil Energy Utilization, Enhancement, and 
        Leadership Act of 2018, the Secretary shall prepare and submit 
        to the appropriate committees of Congress a report that--
                    ``(A) describes the costs and benefits of entering 
                into long-term binding contracts on behalf of the 
                Federal Government with qualified parties to provide 
                support for capturing carbon dioxide from electricity 
                generated at an electric generation unit or carbon 
                dioxide captured from an electric generation unit and 
                sold to a purchaser for--
                            ``(i) the recovery of crude oil; or
                            ``(ii) other purposes for which a 
                        commercial market exists;
                    ``(B) contains an analysis of how the Department 
                would establish, implement, and maintain a contracting 
                program described in subparagraph (A); and
                    ``(C) outlines options for how contracts may be 
                structured, and regulations that would be necessary, to 
                implement a contracting program described in 
                subparagraph (A).''.

SEC. 5. CARBON UTILIZATION PROGRAM.

    (a) 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. 969. CARBON UTILIZATION PROGRAM.

    ``(a) In General.--The Secretary shall carry out a program of 
research, development, and demonstration for carbon utilization--
            ``(1) to assess and monitor--
                    ``(A) potential changes in lifecycle carbon dioxide 
                emissions; and
                    ``(B) other environmental safety indicators of new 
                technologies, practices, processes, or methods used in 
                enhanced hydrocarbon recovery; and
            ``(2) to identify and evaluate novel uses for carbon, 
        including the conversion of carbon dioxide for commercial and 
        industrial products, such as--
                    ``(A) chemicals;
                    ``(B) plastics;
                    ``(C) building materials;
                    ``(D) fuels;
                    ``(E) cement; or
                    ``(F) products of coal utilization in power systems 
                or other applications.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section--
            ``(1) $15,000,000 for fiscal year 2019;
            ``(2) $16,000,000 for fiscal year 2020; and
            ``(3) $17,000,000 for fiscal year 2021.''.
    (b) Study.--
            (1) In general.--The Secretary of Energy 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 dioxide in the United States.
            (2) Requirements.--The study under paragraph (1) shall--
                    (A) analyze challenges to commercializing carbon 
                dioxide, including--
                            (i) creating a national system of carbon 
                        dioxide pipelines;
                            (ii) mitigating environmental impacts; and
                            (iii) regional economic challenges and 
                        opportunities;
                    (B) identify potential markets, industries, or 
                sectors that may benefit from greater access to 
                commercial carbon dioxide;
                    (C) 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, utilization, and storage;
                    (D) estimate the economic impact of a well-
                integrated national carbon dioxide pipeline system;
                    (E) assess the global status and progress of carbon 
                utilization technologies (both chemical and biological) 
                in practice as of the date of the study that utilize 
                waste carbon, including carbon dioxide, carbon 
                monoxide, methane, and biogas, from power generation, 
                biofuels production, and other industrial processes;
                    (F) identify emerging technologies and approaches 
                for carbon utilization that show promise for scale-up, 
                demonstration, deployment, and commercialization;
                    (G) 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)(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);
                    (I)(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 
                (H)(i); and
                    (ii) identify gaps in the research efforts under 
                clause (i); and
                    (J) develop a comprehensive research agenda that 
                addresses long- and short-term research needs and 
                opportunities.
            (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 of 
        Energy a report describing the results of the study under 
        paragraph (1).

SEC. 6. INTERAGENCY TASK FORCE ON CARBON DIOXIDE PIPELINES.

    (a) In General.--Not later than 60 days after the date on which the 
study under section 5(b)(1) is submitted, the Secretary of Energy 
(referred to in this section as the ``Secretary'') shall convene an 
interagency task force (referred to in this section as the ``task 
force'') to assess the potential for a national system of carbon 
dioxide pipelines.
    (b) Membership.--The task force shall include representatives of 
each of the following:
            (1) The Department of Energy.
            (2) The Department of the Interior.
            (3) The Environmental Protection Agency.
            (4) The Department of Transportation.
            (5) The Federal Energy Regulatory Commission.
            (6) Other Federal agencies identified by the Secretary.
            (7) State, local, and Tribal governments.
    (c) Annual Workshops.--
            (1) In general.--The task force shall conduct annual 
        workshops to discuss the potential of, and progress toward, an 
        accessible and functioning national system of carbon dioxide 
        pipelines.
            (2) Participants.--The annual workshops under paragraph (1) 
        shall be--
                    (A) conducted with representatives of relevant 
                Federal agencies; and
                    (B) open to representatives from--
                            (i) industry;
                            (ii) State, local, and Tribal governments;
                            (iii) academic researchers;
                            (iv) environmental organizations; and
                            (v) other stakeholders identified by the 
                        Secretary.
            (3) Public notice.--Not later than 60 days before the date 
        on which the task force conducts an annual workshop under 
        paragraph (1), the Secretary shall provide public notice of the 
        annual workshop to ensure all interested parties can attend.
            (4) Reports.--
                    (A) Annual reports.--The Secretary shall submit to 
                the Committee on Energy and Natural Resources of the 
                Senate and the Committees on Energy and Commerce and 
                Science, Space, and Technology of the House of 
                Representatives an annual report summarizing the 
                activities and progress of the task force.
                    (B) Final report.--Not later than 1 year after the 
                termination date described in subsection (d), the 
                Secretary shall submit to the Committee on Energy and 
                Natural Resources of the Senate and the Committees on 
                Energy and Commerce and Science, Space, and Technology 
                of the House of Representatives a final report laying 
                out a plan for the successful establishment of a 
                national carbon dioxide pipeline system, including a 
                description of--
                            (i) the plan for engineering, building, 
                        siting, and maintenance of a national carbon 
                        dioxide pipeline system;
                            (ii) the plan for permitting and insuring 
                        pipelines under a national carbon dioxide 
                        pipeline system;
                            (iii) any Federal and State policy 
                        challenges to establishing a national carbon 
                        dioxide pipeline system;
                            (iv) incentives or resources necessary to 
                        encourage the use of the most advanced leak 
                        detection and mitigation technologies and 
                        monitoring capabilities available in a national 
                        carbon dioxide pipeline system;
                            (v) how a national carbon dioxide pipeline 
                        system should be regulated to ensure safety and 
                        minimal environmental impacts; and
                            (vi) how a national carbon dioxide pipeline 
                        system might be integrated into the pipeline 
                        systems in existence as of the date of the 
                        establishment of a national carbon dioxide 
                        pipeline system.
    (d) Sunset.--The authority for the task force under this section 
shall terminate on the date that is 3 years after the date on which the 
task force first convenes.

SEC. 7. RARE EARTH ELEMENT ADVANCED COAL TECHNOLOGIES.

    (a) Findings.--Congress finds that--
            (1) the United States is largely dependent on foreign 
        imports for the domestic supply of rare earth elements and 
        minerals in the United States;
            (2) as of the date of enactment of this Act, the United 
        States does not have domestic production capability for, or a 
        guaranteed supply chain of, rare earth elements and minerals, 
        particularly in times of national crisis;
            (3) access to certain rare earth elements and minerals is 
        critical for the national security of the United States;
            (4) China maintains a near monopoly of the global supply 
        chain of rare earth elements and minerals;
            (5) the successful development of commercially viable 
        refining methods of rare earth elements and minerals from coal 
        byproducts could lead to new economic development opportunities 
        in parts of the United States most affected by the downturn of 
        the coal industry;
            (6) rare earth elements--
                    (A) comprise 17 elements on the periodic table, 
                including--
                            (i) the lanthanides, which are lanthanum 
                        (La), cerium (Ce), praseodymium (Pr), neodymium 
                        (Nd), promethium (Pm), samarium (Sm), europium 
                        (Eu), gadolinium (Gd), terbium (Tb), dysprosium 
                        (Dy), holmium (Ho), erbium (Er), thulium (Tm), 
                        ytterbium (Yb), and lutetium (Lu); and
                            (ii) transition elements, which are 
                        scandium (Sc) and yttrium (Y); and
                    (B) can be divided into--
                            (i) light rare earth elements, which are 
                        lanthanum (La), cerium (Ce), praseodymium (Pr), 
                        neodymium (Nd), promethium (Pm), and samarium 
                        (Sm); and
                            (ii) heavy rare earth elements, which are 
                        scandium (Sc), yttrium (Y), europium (Eu), 
                        gadolinium (Gd), terbium (Tb), dysprosium (Dy), 
                        holmium (Ho), erbium (Er), thulium (Tm), 
                        ytterbium (Yb), and lutetium (Lu); and
            (7) it is in the interest of the Federal Government--
                    (A) to guide responsible domestic production of 
                rare earth elements and minerals to ensure industry and 
                consumers in the United States have access to a 
                reliable domestic supply of valuable rare earth 
                elements and minerals; and
                    (B)(i) to identify the areas of highest potential 
                interruption in the global supply chain of rare earth 
                elements and minerals; and
                    (ii) to strengthen the position of the United 
                States in that supply chain by mitigating potential 
                interruptions through the development of advanced coal 
                technologies.
    (b) Program for Extraction and Recovery of Rare Earth Elements and 
Minerals From Coal and Coal Byproducts.--
            (1) In general.--The Secretary of Energy, acting through 
        the Assistant Secretary for Fossil Energy (referred to in this 
        subsection as the ``Secretary''), shall carry out a program 
        under which the Secretary shall develop advanced separation 
        technologies for the extraction and recovery of rare earth 
        elements and minerals from coal and coal byproducts.
            (2) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out the program 
        described in paragraph (1) $20,000,000 for each of fiscal years 
        2019 through 2026.
    (c) Assessment and Report.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary of Energy, in consultation 
        with the Secretary of Defense (referred to in this subsection 
        as the ``Secretary''), shall carry out, and submit to the 
        Committee on Energy and Natural Resources of the Senate and the 
        Committees on Energy and Commerce and Science, Space, and 
        Technology of the House of Representatives--
                    (A) an assessment--
                            (i) identifying and ranking the rare earth 
                        elements that--
                                    (I) are most important to consumers 
                                in the United States;
                                    (II) are most jeopardized in the 
                                global supply chain; and
                                    (III) will have the greatest impact 
                                to consumers in the United States in 
                                the event of a disruption in the global 
                                supply chain;
                            (ii) evaluating the development of advanced 
                        separation technologies for the extraction and 
                        recovery of rare earth elements and minerals 
                        from coal and coal byproducts (referred to in 
                        this paragraph as the ``technologies'');
                            (iii) identifying and evaluating the 
                        results of the development of the technologies, 
                        including the results with respect to the 
                        extraction and recovery of each rare earth 
                        element;
                            (iv) determining what the technologies are 
                        capable of producing;
                            (v) evaluating the performance of the 
                        technologies, including what the technologies--
                                    (I) succeed and fail at 
                                accomplishing; and
                                    (II) can and cannot do cost-
                                effectively; and
                            (vi)(I) evaluating the market impact on 
                        each rare earth mineral of the penetration of 
                        commercially viable technologies; and
                            (II) how the penetration of commercially 
                        viable coal-based technology will impact the 
                        global supply chain; and
                    (B) a report analyzing--
                            (i) the additional resources required for 
                        the development of commercial-ready deployment 
                        of technologies that are second generation and 
                        transformational; and
                            (ii) the market impact of processes to 
                        treat and recover rare earth elements and 
                        minerals from sludge generated during treatment 
                        of acid mine drainage from coal mines.
            (2) Requirement.--In carrying out the assessment and report 
        under paragraph (1), the Secretary shall focus on the rare 
        earth elements determined by the Secretary to be most critical 
        to the national security of the United States.

SEC. 8. RESEARCH AND DEVELOPMENT OF NATURAL GAS.

    Nothing in this Act or an amendment made by this Act precludes the 
Secretary of Energy from using funds authorized to be made available by 
this Act or an amendment made by this Act for the research and 
development of natural gas if the Secretary of Energy determines that 
the funding results in the investment in technologies that are 
primarily developed and tested for coal-based applications.
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