Title: CCUS Innovation Act
Policy area: Environmental Protection

Summary:
Carbon Capture, Utilization, and Storage Innovation Act or the CCUS Innovation Act
This bill addresses the capture, utilization, and storage of carbon dioxide.
Among other things, the bill requires the Environmental Protection Agency to (1) establish a competitive prize program for certain technology projects that capture carbon dioxide directly from the air, (2) research and develop technologies or approaches that transform carbon dioxide generated by industrial processes into a product of commercial value, and (3) support research and infrastructure activities relating to carbon dioxide utilization by providing technical and financial assistance.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5865 Introduced in House (IH)]

<DOC>






116th CONGRESS
  2d Session
                                H. R. 5865

 To advance technologies for carbon capture, utilization, and storage, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 12, 2020

 Mr. McKinley introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committees on 
 Science, Space, and Technology, Natural Resources, Transportation and 
  Infrastructure, and Ways and Means, 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 advance technologies for carbon capture, utilization, and storage, 
                        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 Capture, Utilization, and 
Storage Innovation Act'' or the ``CCUS Innovation Act''.

SEC. 2. PROJECTS FOR CARBON CAPTURE, UTILIZATION, AND STORAGE.

    (a) Categories.--Section 1703(b)(5) of the Energy Policy Act of 
2005 (42 U.S.C. 16513(b)(5)) is amended by striking ``Carbon capture 
and sequestration'' and inserting ``Carbon capture, utilization, and 
storage''.
    (b) Included Projects.--Section 1703 of the Energy Policy Act of 
2005 (42 U.S.C. 16513) is amended by adding at the end the following:
    ``(f) Carbon Capture, Utilization, and Storage Projects.--The 
category of projects described in subsection (b)(5) includes projects 
involving practices or technologies relating to--
            ``(1) development of infrastructure to enable carbon 
        capture, utilization, or storage, including pipelines;
            ``(2) direct air capture;
            ``(3) pre-combustion capture, and post-combustion capture, 
        of carbon dioxide for fossil fuel based systems, such as power 
        plants and industrial processes that utilize fossil energy;
            ``(4) carbon dioxide storage in geologic formations;
            ``(5) carbon storage efficiency and security through the 
        use of new and early-stage monitoring tools and models;
            ``(6) the conversion of carbon dioxide into substances or 
        products with higher economic value;
            ``(7) the conversion of carbon dioxide into biomass;
            ``(8) the synthesis of fuels and organic chemicals; and
            ``(9) the synthesis of inorganic materials and 
        chemicals.''.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary of Energy shall submit to the Committee on 
Energy and Commerce of the House of Representatives a report 
describing--
            (1) with respect to projects described in subsection (f) of 
        section 1703 of the Energy Policy Act of 2005 (as added by this 
        section)--
                    (A) the status of each such project for which a 
                guarantee has been awarded under such section 1703; and
                    (B) any recommendations relating to implementation 
                of title XVII of such Act with respect to such 
                projects;
            (2) opportunities to expand the use of carbon capture, 
        utilization, and storage for reducing industrial sector 
        emissions;
            (3) statutory and regulatory barriers to the deployment and 
        commercialization of carbon capture, utilization, and storage 
        technologies; and
            (4) any recommendations to advance carbon capture, 
        utilization, and storage technologies.

SEC. 3. RESEARCH, INVESTIGATION, TRAINING, AND OTHER ACTIVITIES.

    Section 103 of the Clean Air Act (42 U.S.C. 7403) is amended--
            (1) in subsection (c)(3), in the first sentence of the 
        matter preceding subparagraph (A), by striking ``percursors'' 
        and inserting ``precursors''; and
            (2) in subsection (g)--
                    (A) by redesignating paragraphs (1) through (4) as 
                subparagraphs (A) through (D), respectively, and 
                indenting appropriately;
                    (B) in the undesignated matter following 
                subparagraph (D) (as so redesignated)--
                            (i) in the second sentence, by striking 
                        ``The Administrator'' and inserting the 
                        following:
            ``(5) Coordination and avoidance of duplication.--The 
        Administrator''; and
                            (ii) in the first sentence, by striking 
                        ``Nothing'' and inserting the following:
            ``(4) Effect of subsection.--Nothing'';
                    (C) in the matter preceding subparagraph (A) (as so 
                redesignated)--
                            (i) in the third sentence, by striking 
                        ``Such program'' and inserting the following:
            ``(3) Program inclusions.--The program under this 
        subsection'';
                            (ii) in the second sentence--
                                    (I) by inserting ``States, 
                                institutions of higher education,'' 
                                after ``scientists,''; and
                                    (II) by striking ``Such strategies 
                                and technologies shall be developed'' 
                                and inserting the following:
            ``(2) Participation requirement.--Such strategies and 
        technologies described in paragraph (1) shall be developed''; 
        and
                            (iii) in the first sentence, by striking 
                        ``In carrying out'' and inserting the 
                        following:
            ``(1) In general.--In carrying out''; and
                    (D) by adding at the end the following:
            ``(6) Certain carbon dioxide activities.--
                    ``(A) In general.--In carrying out paragraph (3)(A) 
                with respect to carbon dioxide, the Administrator shall 
                carry out the activities described in each of 
                subparagraphs (B), (C), (D), and (E).
                    ``(B) Direct air capture research.--
                            ``(i) Definitions.--In this subparagraph:
                                    ``(I) Board.--The term `Board' 
                                means the Direct Air Capture Technology 
                                Advisory Board established by clause 
                                (iii)(I).
                                    ``(II) Dilute.--The term `dilute' 
                                means a concentration of less than 1 
                                percent by volume.
                                    ``(III) Direct air capture.--
                                            ``(aa) In general.--The 
                                        term `direct air capture', with 
                                        respect to a facility, 
                                        technology, or system, means 
                                        that the facility, technology, 
                                        or system uses carbon capture 
                                        equipment to capture carbon 
                                        dioxide directly from the air.
                                            ``(bb) Exclusion.--The term 
                                        `direct air capture' does not 
                                        include any facility, 
                                        technology, or system that 
                                        captures carbon dioxide--

                                                    ``(AA) that is 
                                                deliberately released 
                                                from a naturally 
                                                occurring subsurface 
                                                spring; or

                                                    ``(BB) using 
                                                natural photosynthesis.

                                    ``(IV) Intellectual property.--The 
                                term `intellectual property' means--
                                            ``(aa) an invention that is 
                                        patentable under title 35, 
                                        United States Code; and
                                            ``(bb) any patent on an 
                                        invention described in item 
                                        (aa).
                            ``(ii) Technology prizes.--
                                    ``(I) In general.--Not later than 1 
                                year after the date of enactment of the 
                                CCUS Innovation Act, the Administrator, 
                                in consultation with the Secretary of 
                                Energy, shall establish a program to 
                                provide, and shall provide, financial 
                                awards on a competitive basis for 
                                direct air capture from media in which 
                                the concentration of carbon dioxide is 
                                dilute.
                                    ``(II) Duties.--In carrying out 
                                this clause, the Administrator shall--
                                            ``(aa) subject to subclause 
                                        (III), develop specific 
                                        requirements for--

                                                    ``(AA) the 
                                                competition process; 
                                                and

                                                    ``(BB) the 
                                                demonstration of 
                                                performance of approved 
                                                projects;

                                            ``(bb) offer financial 
                                        awards for a project designed--

                                                    ``(AA) to the 
                                                maximum extent 
                                                practicable, to capture 
                                                more than 10,000 tons 
                                                of carbon dioxide per 
                                                year; and

                                                    ``(BB) to operate 
                                                in a manner that would 
                                                be commercially viable 
                                                in the foreseeable 
                                                future (as determined 
                                                by the Board); and

                                            ``(cc) to the maximum 
                                        extent practicable, make 
                                        financial awards to 
                                        geographically diverse 
                                        projects, including at least--

                                                    ``(AA) 1 project in 
                                                a coastal State; and

                                                    ``(BB) 1 project in 
                                                a rural State.

                                    ``(III) Public participation.--In 
                                carrying out subclause (II)(aa), the 
                                Administrator shall--
                                            ``(aa) provide notice of 
                                        and, for a period of not less 
                                        than 60 days, an opportunity 
                                        for public comment on, any 
                                        draft or proposed version of 
                                        the requirements described in 
                                        subclause (II)(aa); and
                                            ``(bb) take into account 
                                        public comments received in 
                                        developing the final version of 
                                        those requirements.
                            ``(iii) Direct air capture technology 
                        advisory board.--
                                    ``(I) Establishment.--There is 
                                established an advisory board to be 
                                known as the `Direct Air Capture 
                                Technology Advisory Board'.
                                    ``(II) Composition.--The Board 
                                shall be composed of 9 members 
                                appointed by the Administrator, who 
                                shall provide expertise in--
                                            ``(aa) climate science;
                                            ``(bb) physics;
                                            ``(cc) chemistry;
                                            ``(dd) biology;
                                            ``(ee) engineering;
                                            ``(ff) economics;
                                            ``(gg) business management; 
                                        and
                                            ``(hh) such other 
                                        disciplines as the 
                                        Administrator determines to be 
                                        necessary to achieve the 
                                        purposes of this subparagraph.
                                    ``(III) Term; vacancies.--
                                            ``(aa) Term.--A member of 
                                        the Board shall serve for a 
                                        term of 6 years.
                                            ``(bb) Vacancies.--A 
                                        vacancy on the Board--

                                                    ``(AA) shall not 
                                                affect the powers of 
                                                the Board; and

                                                    ``(BB) shall be 
                                                filled in the same 
                                                manner as the original 
                                                appointment was made.

                                    ``(IV) Initial meeting.--Not later 
                                than 30 days after the date on which 
                                all members of the Board have been 
                                appointed, the Board shall hold the 
                                initial meeting of the Board.
                                    ``(V) Meetings.--The Board shall 
                                meet at the call of the Chairperson or 
                                on the request of the Administrator.
                                    ``(VI) Quorum.--A majority of the 
                                members of the Board shall constitute a 
                                quorum, but a lesser number of members 
                                may hold hearings.
                                    ``(VII) Chairperson and vice 
                                chairperson.--The Board shall select a 
                                Chairperson and Vice Chairperson from 
                                among the members of the Board.
                                    ``(VIII) Compensation.--Each member 
                                of the Board may be compensated at not 
                                to exceed the daily equivalent of the 
                                annual rate of basic pay in effect for 
                                a position at level V of the Executive 
                                Schedule under section 5316 of title 5, 
                                United States Code, for each day during 
                                which the member is engaged in the 
                                actual performance of the duties of the 
                                Board.
                                    ``(IX) Duties.--The Board shall 
                                advise the Administrator on carrying 
                                out the duties of the Administrator 
                                under this subparagraph.
                                    ``(X) FACA.--The Federal Advisory 
                                Committee Act (5 U.S.C. App.) shall 
                                apply to the Board.
                            ``(iv) Intellectual property.--
                                    ``(I) In general.--As a condition 
                                of receiving a financial award under 
                                this subparagraph, an applicant shall 
                                agree to vest the intellectual property 
                                of the applicant derived from the 
                                technology in one or more entities that 
                                are incorporated in the United States.
                                    ``(II) Reservation of license.--The 
                                United States--
                                            ``(aa) may reserve a 
                                        nonexclusive, nontransferable, 
                                        irrevocable, paid-up license, 
                                        to have practiced for or on 
                                        behalf of the United States, in 
                                        connection with any 
                                        intellectual property described 
                                        in subclause (I); but
                                            ``(bb) shall not, in the 
                                        exercise of a license reserved 
                                        under item (aa), publicly 
                                        disclose proprietary 
                                        information relating to the 
                                        license.
                                    ``(III) Transfer of title.--Title 
                                to any intellectual property described 
                                in subclause (I) shall not be 
                                transferred or passed, except to an 
                                entity that is incorporated in the 
                                United States, until the expiration of 
                                the first patent obtained in connection 
                                with the intellectual property.
                            ``(v) Authorization of appropriations.--
                                    ``(I) In general.--Of the amounts 
                                authorized to be appropriated for the 
                                Environmental Protection Agency, 
                                $35,000,000 shall be available to carry 
                                out this subparagraph, to remain 
                                available until expended.
                                    ``(II) Requirement.--Research 
                                carried out using amounts made 
                                available under subclause (I) may not 
                                duplicate research funded by the 
                                Department of Energy.
                            ``(vi) Termination of authority.--The Board 
                        and all authority provided under this 
                        subparagraph shall terminate not later than 10 
                        years after the date of enactment of the CCUS 
                        Innovation Act.
                    ``(C) Carbon dioxide utilization research.--
                            ``(i) Definition of carbon dioxide 
                        utilization.--In this subparagraph, the term 
                        `carbon dioxide utilization' refers to 
                        technologies or approaches that lead to the use 
                        of carbon dioxide--
                                    ``(I) through the fixation of 
                                carbon dioxide through photosynthesis 
                                or chemosynthesis, such as through the 
                                growing of algae or bacteria;
                                    ``(II) through the chemical 
                                conversion of carbon dioxide to a 
                                material or chemical compound in which 
                                the carbon dioxide is securely stored; 
                                or
                                    ``(III) through the use of carbon 
                                dioxide for any other purpose for which 
                                a commercial market exists, as 
                                determined by the Administrator.
                            ``(ii) Program.--The Administrator, in 
                        consultation with the Secretary of Energy, 
                        shall carry out a research and development 
                        program for carbon dioxide utilization to 
                        promote existing and new technologies that 
                        transform carbon dioxide generated by 
                        industrial processes into a product of 
                        commercial value, or as an input to products of 
                        commercial value.
                            ``(iii) Technical and financial 
                        assistance.--Not later than 2 years after the 
                        date of enactment of the CCUS Innovation Act, 
                        in carrying out this subsection, the 
                        Administrator, in consultation with the 
                        Secretary of Energy, shall support research and 
                        infrastructure activities relating to carbon 
                        dioxide utilization by providing technical 
                        assistance and financial assistance in 
                        accordance with clause (iv).
                            ``(iv) Eligibility.--To be eligible to 
                        receive technical assistance and financial 
                        assistance under clause (iii), a carbon dioxide 
                        utilization project shall--
                                    ``(I) have access to an emissions 
                                stream generated by a stationary source 
                                within the United States that is 
                                capable of supplying not less than 250 
                                metric tons per day of carbon dioxide 
                                for research;
                                    ``(II) have access to adequate 
                                space for a laboratory and equipment 
                                for testing small-scale carbon dioxide 
                                utilization technologies, with onsite 
                                access to larger test bays for scale-
                                up; and
                                    ``(III) have existing partnerships 
                                with institutions of higher education, 
                                private companies, States, or other 
                                government entities.
                            ``(v) Coordination.--In supporting carbon 
                        dioxide utilization projects under this 
                        paragraph, the Administrator shall consult with 
                        the Secretary of Energy, and, as appropriate, 
                        with the head of any other relevant Federal 
                        agency, States, the private sector, and 
                        institutions of higher education to develop 
                        methods and technologies to account for the 
                        carbon dioxide emissions avoided by the carbon 
                        dioxide utilization projects.
                            ``(vi) Authorization of appropriations.--
                                    ``(I) In general.--Of the amounts 
                                authorized to be appropriated for the 
                                Environmental Protection Agency, 
                                $50,000,000 shall be available to carry 
                                out this subparagraph, to remain 
                                available until expended.
                                    ``(II) Requirement.--Research 
                                carried out using amounts made 
                                available under subclause (I) may not 
                                duplicate research funded by the 
                                Department of Energy.
                    ``(D) Deep saline formation report.--
                            ``(i) Definition of deep saline 
                        formation.--
                                    ``(I) In general.--In this 
                                subparagraph, the term `deep saline 
                                formation' means a formation of 
                                subsurface geographically extensive 
                                sedimentary rock layers saturated with 
                                waters or brines that have a high total 
                                dissolved solids content and that are 
                                below the depth where carbon dioxide 
                                can exist in the formation as a 
                                supercritical fluid.
                                    ``(II) Clarification.--In this 
                                subparagraph, the term `deep saline 
                                formation' does not include oil and gas 
                                reservoirs.
                            ``(ii) Report.--In consultation with the 
                        Secretary of Energy, and, as appropriate, with 
                        the head of any other relevant Federal agency 
                        and relevant stakeholders, not later than 1 
                        year after the date of enactment of the CCUS 
                        Innovation Act, the Administrator shall 
                        prepare, submit to Congress, and make publicly 
                        available a report that includes--
                                    ``(I) a comprehensive 
                                identification of potential risks and 
                                benefits to project developers 
                                associated with increased storage of 
                                carbon dioxide captured from stationary 
                                sources in deep saline formations, 
                                using existing research;
                                    ``(II) recommendations, if any, for 
                                managing the potential risks identified 
                                under subclause (I), including 
                                potential risks unique to public land; 
                                and
                                    ``(III) recommendations, if any, 
                                for Federal legislation or other policy 
                                changes to mitigate any potential risks 
                                identified under subclause (I).
                    ``(E) Report on carbon dioxide nonregulatory 
                strategies and technologies.--
                            ``(i) In general.--Not less frequently than 
                        once every 2 years, the Administrator shall 
                        submit to the Committee on Environment and 
                        Public Works of the Senate and the Committee on 
                        Energy and Commerce of the House of 
                        Representatives a report that describes--
                                    ``(I) the recipients of assistance 
                                under subparagraphs (B) and (C); and
                                    ``(II) a plan for supporting 
                                additional nonregulatory strategies and 
                                technologies that could significantly 
                                prevent carbon dioxide emissions or 
                                reduce carbon dioxide levels in the 
                                air, in conjunction with other Federal 
                                agencies.
                            ``(ii) Inclusions.--The plan submitted 
                        under clause (i) shall include--
                                    ``(I) a methodology for evaluating 
                                and ranking technologies based on the 
                                ability of the technologies to cost 
                                effectively reduce carbon dioxide 
                                emissions or carbon dioxide levels in 
                                the air; and
                                    ``(II) a description of any nonair-
                                related environmental or energy 
                                considerations regarding the 
                                technologies.
                    ``(F) GAO report.--The Comptroller General of the 
                United States shall submit to Congress a report that--
                            ``(i) identifies all Federal grant programs 
                        in which a purpose of a grant under the program 
                        is to perform research on carbon capture and 
                        utilization technologies, including direct air 
                        capture technologies; and
                            ``(ii) examines the extent to which the 
                        Federal grant programs identified pursuant to 
                        clause (i) overlap or are duplicative.''.

SEC. 4. REPORT.

    Not later than 1 year after the date of enactment of this Act, the 
Administrator of the Environmental Protection Agency (referred to in 
this Act as the ``Administrator'') shall submit to Congress a report 
describing how funds appropriated to the Administrator during the 5 
most recent fiscal years have been used to carry out section 103 of the 
Clean Air Act (42 U.S.C. 7403), including a description of--
            (1) the amount of funds used to carry out specific 
        provisions of that section; and
            (2) the practices used by the Administrator to 
        differentiate funding used to carry out that section, as 
        compared to funding used to carry out other provisions of law.

SEC. 5. INCLUSION OF CARBON CAPTURE INFRASTRUCTURE PROJECTS.

    Section 41001(6) of the FAST Act (42 U.S.C. 4370m(6)) is amended--
            (1) in subparagraph (A)--
                    (A) in the matter preceding clause (i), by 
                inserting ``carbon capture,'' after ``manufacturing,'';
                    (B) in clause (i)(III), by striking ``or'' at the 
                end;
                    (C) by redesignating clause (ii) as clause (iii); 
                and
                    (D) by inserting after clause (i) the following:
                            ``(ii) is covered by a programmatic plan or 
                        environmental review developed for the primary 
                        purpose of facilitating development of carbon 
                        dioxide pipelines; or''; and
            (2) by adding at the end the following:
                    ``(C) Inclusion.--For purposes of subparagraph (A), 
                construction of infrastructure for carbon capture 
                includes construction of--
                            ``(i) any facility, technology, or system 
                        that captures, utilizes, or sequesters carbon 
                        dioxide emissions, including projects for 
                        direct air capture (as defined in paragraph 
                        (6)(B)(i) of section 103(g) of the Clean Air 
                        Act (42 U.S.C. 7403(g)); and
                            ``(ii) carbon dioxide pipelines.''.

SEC. 6. DEVELOPMENT OF CARBON CAPTURE, UTILIZATION, AND SEQUESTRATION 
              REPORT, PERMITTING GUIDANCE, AND REGIONAL PERMITTING TASK 
              FORCE.

    (a) Definitions.--In this section:
            (1) Carbon capture, utilization, and sequestration 
        projects.--The term ``carbon capture, utilization, and 
        sequestration projects'' includes projects for direct air 
        capture (as defined in paragraph (6)(B)(i) of section 103(g) of 
        the Clean Air Act (42 U.S.C. 7403(g))).
            (2) Efficient, orderly, and responsible.--The term 
        ``efficient, orderly, and responsible'' means, with respect to 
        development or the permitting process for carbon capture, 
        utilization, and sequestration projects and carbon dioxide 
        pipelines, a process that is completed in an expeditious manner 
        while maintaining environmental, health, and safety 
        protections.
    (b) Report.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Chair of the Council on 
        Environmental Quality (referred to in this Act as the 
        ``Chair''), in consultation with the Administrator of the 
        Environmental Protection Agency, the Secretary of Energy, the 
        Secretary of the Interior, the Executive Director of the 
        Federal Permitting Improvement Council, and the head of any 
        other relevant Federal agency (as determined by the President), 
        shall prepare a report that--
                    (A) compiles all existing relevant Federal 
                permitting and review information and resources for 
                project applicants, agencies, and other stakeholders 
                interested in the deployment of carbon capture, 
                utilization, and sequestration projects and carbon 
                dioxide pipelines, including--
                            (i) the appropriate points of interaction 
                        with Federal agencies;
                            (ii) clarification of the permitting 
                        responsibilities and authorities among Federal 
                        agencies; and
                            (iii) best practices and templates for 
                        permitting;
                    (B) inventories current or emerging activities that 
                transform captured carbon dioxide into a product of 
                commercial value, or as an input to products of 
                commercial value;
                    (C) inventories existing initiatives and recent 
                publications that analyze or identify priority carbon 
                dioxide pipelines needed to enable efficient, orderly, 
                and responsible development of carbon capture, 
                utilization, and sequestration projects at increased 
                scale;
                    (D) identifies gaps in the current Federal 
                regulatory framework for the deployment of carbon 
                capture, utilization, and sequestration projects and 
                carbon dioxide pipelines; and
                    (E) identifies Federal financing mechanisms 
                available to project developers.
            (2) Submission; publication.--The Chair shall--
                    (A) submit the report under paragraph (1) to the 
                Committee on Environment and Public Works of the Senate 
                and the Committee on Energy and Commerce of the House 
                of Representatives; and
                    (B) as soon as practicable, make the report 
                publicly available.
    (c) Guidance.--
            (1) In general.--After submission of the report under 
        subsection (b)(2), but not later than 1 year after the date of 
        enactment of this Act, the Chair shall submit guidance 
        consistent with that report to all relevant Federal agencies 
        that--
                    (A) facilitates reviews associated with the 
                deployment of carbon capture, utilization, and 
                sequestration projects and carbon dioxide pipelines; 
                and
                    (B) supports the efficient, orderly, and 
                responsible development of carbon capture, utilization, 
                and sequestration projects and carbon dioxide 
                pipelines.
            (2) Requirements.--
                    (A) In general.--The guidance under paragraph (1) 
                shall address requirements under--
                            (i) the National Environmental Policy Act 
                        of 1969 (42 U.S.C. 4321 et seq.);
                            (ii) the Federal Water Pollution Control 
                        Act (33 U.S.C. 1251 et seq.);
                            (iii) the Clean Air Act (42 U.S.C. 7401 et 
                        seq.);
                            (iv) the Safe Drinking Water Act (42 U.S.C. 
                        300f et seq.);
                            (v) the Endangered Species Act of 1973 (16 
                        U.S.C. 1531 et seq.);
                            (vi) division A of subtitle III of title 
                        54, United States Code (formerly known as the 
                        ``National Historic Preservation Act'');
                            (vii) the Migratory Bird Treaty Act (16 
                        U.S.C. 703 et seq.);
                            (viii) the Act of June 8, 1940 (16 U.S.C. 
                        668 et seq.) (commonly known as the ``Bald and 
                        Golden Eagle Protection Act''); and
                            (ix) any other Federal law that the Chair 
                        determines to be appropriate.
                    (B) Environmental reviews.--The guidance under 
                paragraph (1) shall include direction to States and 
                other interested parties for the development of 
                programmatic environmental reviews under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.) for carbon capture, utilization, and 
                sequestration projects and carbon dioxide pipelines.
                    (C) Public involvement.--The guidance under 
                paragraph (1) shall be subject to the public notice, 
                comment, and solicitation of information procedures 
                under section 1506.6 of title 40, Code of Federal 
                Regulations (or a successor regulation).
            (3) Submission; publication.--The Chair shall--
                    (A) submit the guidance under paragraph (1) to the 
                Committee on Environment and Public Works of the Senate 
                and the Committee on Energy and Commerce of the House 
                of Representatives; and
                    (B) as soon as practicable, make the guidance 
                publicly available.
            (4) Evaluation.--The Chair shall--
                    (A) periodically evaluate the reports of the task 
                forces under subsection (d)(5) and, as necessary, 
                revise the guidance under paragraph (1); and
                    (B) each year, submit to the Committee on 
                Environment and Public Works of the Senate, the 
                Committee on Energy and Commerce of the House of 
                Representatives, and relevant Federal agencies a report 
                that describes any recommendations for legislation, 
                rules, revisions to rules, or other policies that would 
                address the issues identified by the task forces under 
                subsection (d)(5).
    (d) Task Force.--
            (1) Establishment.--Not later than 18 months after the date 
        of enactment of this Act, the Chair shall establish not less 
        than 2 task forces, which shall each cover a different 
        geographical area with differing demographic, land use, or 
        geological issues--
                    (A) to identify permitting and other challenges and 
                successes that permitting authorities and project 
                developers and operators face; and
                    (B) to improve the performance of the permitting 
                process and regional coordination for the purpose of 
                promoting the efficient, orderly, and responsible 
                development of carbon capture, utilization, and 
                sequestration projects and carbon dioxide pipelines.
            (2) Members and selection.--
                    (A) In general.--The Chair shall--
                            (i) develop criteria for the selection of 
                        members to each task force; and
                            (ii) select members for each task force in 
                        accordance with clause (i) and subparagraph 
                        (B).
                    (B) Members.--Each task force--
                            (i) shall include not less than 1 
                        representative of each of--
                                    (I) the Environmental Protection 
                                Agency;
                                    (II) the Department of Energy;
                                    (III) the Department of the 
                                Interior;
                                    (IV) any other Federal agency the 
                                Chair determines to be appropriate;
                                    (V) any State that requests 
                                participation in the geographical area 
                                covered by the task force;
                                    (VI) developers or operators of 
                                carbon capture, utilization, and 
                                sequestration projects or carbon 
                                dioxide pipelines; and
                                    (VII) nongovernmental membership 
                                organizations, the primary mission of 
                                which concerns protection of the 
                                environment; and
                            (ii) at the request of a Tribal or local 
                        government, may include a representative of--
                                    (I) not less than 1 local 
                                government in the geographical area 
                                covered by the task force; and
                                    (II) not less than 1 Tribal 
                                government in the geographical area 
                                covered by the task force.
            (3) Meetings.--
                    (A) In general.--Each task force shall meet not 
                less than twice each year.
                    (B) Joint meeting.--To the maximum extent 
                practicable, the task forces shall meet collectively 
                not less than once each year.
            (4) Duties.--Each task force shall--
                    (A) inventory existing or potential Federal and 
                State approaches to facilitate reviews associated with 
                the deployment of carbon capture, utilization, and 
                sequestration projects and carbon dioxide pipelines, 
                including best practices that--
                            (i) avoid duplicative reviews;
                            (ii) engage stakeholders early in the 
                        permitting process; and
                            (iii) make the permitting process 
                        efficient, orderly, and responsible;
                    (B) develop common models for State-level carbon 
                dioxide pipeline regulation and oversight guidelines 
                that can be shared with States in the geographical area 
                covered by the task force;
                    (C) provide technical assistance to States in the 
                geographical area covered by the task force in 
                implementing regulatory requirements and any models 
                developed under subparagraph (B);
                    (D) inventory current or emerging activities that 
                transform captured carbon dioxide into a product of 
                commercial value, or as an input to products of 
                commercial value;
                    (E) identify any priority carbon dioxide pipelines 
                needed to enable efficient, orderly, and responsible 
                development of carbon capture, utilization, and 
                sequestration projects at increased scale;
                    (F) identify gaps in the current Federal and State 
                regulatory framework and in existing data for the 
                deployment of carbon capture, utilization, and 
                sequestration projects and carbon dioxide pipelines;
                    (G) identify Federal and State financing mechanisms 
                available to project developers; and
                    (H) develop recommendations for relevant Federal 
                agencies on how to develop and research technologies 
                that--
                            (i) can capture carbon dioxide; and
                            (ii) would be able to be deployed within 
                        the region covered by the task force, including 
                        any projects that have received technical or 
                        financial assistance for research under 
                        paragraph (6) of section 103(g) of the Clean 
                        Air Act (42 U.S.C. 7403(g)).
            (5) Report.--Each year, each task force shall prepare and 
        submit to the Chair and to the other task forces a report that 
        includes--
                    (A) any recommendations for improvements in 
                efficient, orderly, and responsible issuance or 
                administration of Federal permits and other Federal 
                authorizations required under a law described in 
                subsection (c)(2)(A); and
                    (B) any other nationally relevant information that 
                the task force has collected in carrying out the duties 
                under paragraph (4).
            (6) Evaluation.--Not later than 5 years after the date of 
        enactment of this Act, the Chair shall--
                    (A) reevaluate the need for the task forces; and
                    (B) submit to Congress a recommendation as to 
                whether the task forces should continue.

SEC. 7. EXTENSION OF PUBLICLY TRADED PARTNERSHIP OWNERSHIP STRUCTURE TO 
              CERTAIN SEQUESTRATION ACTIVITIES.

    (a) In General.--Subparagraph (E) of section 7704(d)(1) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``income and gains derived from the 
        exploration'' and inserting ``income and gains derived from the 
        following:
                            ``(i) Minerals, natural resources, etc.--
                        The exploration'';
            (2) by inserting ``or'' before ``industrial source'';
            (3) by inserting a period after ``carbon dioxide'';
            (4) by striking ``or the transportation or storage'' and 
        inserting the following:
                            ``(ii) Certain fuels.--The transportation 
                        or storage'';
            (5) by striking the comma at the end and inserting a 
        period; and
            (6) by adding at the end the following new clauses:
                            ``(iii) Gasification with sequestration.--
                        The production of any product or the generation 
                        of electric power from a project--
                                    ``(I) which meets the requirements 
                                of subparagraphs (A) and (B) of section 
                                48B(c)(1), and
                                    ``(II) not less than 75 percent of 
                                the total carbon oxide emissions of 
                                which is qualified carbon oxide (as 
                                defined in section 45Q(c)) which is 
                                disposed of or utilized as provided in 
                                paragraph (6).
                            ``(iv) Carbon capture and sequestration.--
                                    ``(I) Power generation 
                                facilities.--The generation or storage 
                                of electric power (including associated 
                                income from the sale or marketing of 
                                energy, capacity, resource adequacy, 
                                and ancillary services) produced from 
                                any power generation facility which is, 
                                or from any power generation unit 
                                within, a qualified facility which is 
                                described in section 45Q(d) and not 
                                less than 50 percent (30 percent in the 
                                case of a facility or unit placed in 
                                service before January 1, 2019) of the 
                                total carbon oxide emissions of which 
                                is qualified carbon oxide which is 
                                disposed of or utilized as provided in 
                                paragraph (6).
                                    ``(II) Other facilities.--The sale 
                                of any good or service from any 
                                facility (other than a power generation 
                                facility) which is a qualified facility 
                                described in section 45Q(d) and the 
                                captured qualified carbon oxide (as so 
                                defined) of which is disposed of as 
                                provided in paragraph (6).''.
    (b) Disposal and Utilization of Captured Carbon Oxide.--Section 
7704(d) of such Code is amended by adding at the end the following new 
paragraph:
            ``(6) Disposal and utilization of captured carbon oxide.--
        For purposes of clauses (iii) and (iv) of paragraph (1)(E), 
        carbon oxide is disposed of or utilized as provided in this 
        paragraph if such carbon oxide is--
                    ``(A) placed into secure geological storage (as 
                determined under section 45Q(f)(2)),
                    ``(B) used as a tertiary injectant (as defined in 
                section 45Q(e)(3)) in a qualified enhanced oil or 
                natural gas recovery project (as defined in section 
                45Q(e)(2)) and placed into secure geological storage 
                (as so determined), or
                    ``(C) utilized in a manner described in section 
                45Q(f)(5).''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act, in taxable years 
ending after such date.
                                 <all>