I 118th CONGRESS 2d Session H. R. 7054 IN THE HOUSE OF REPRESENTATIVES January 18, 2024 Mr. Tonko (for himself and Mr. Peters ) introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To require the Secretary of Energy to remove carbon dioxide directly from ambient air or seawater, and for other purposes.

1. Short title This Act may be cited as the Carbon Dioxide Removal Leadership Act of 2024 . 2. Federal requirement to remove carbon dioxide (a) Required amounts The Secretary shall, to the extent economically feasible as provided in subsection (d), remove— (1) 50,000 net metric tons of carbon dioxide, calculated on a lifecycle basis, for each of fiscal years 2024 through 2025; (2) 500,000 net metric tons of carbon dioxide, calculated on a lifecycle basis, for each of fiscal years 2026 through 2028; (3) 5,000,000 net metric tons of carbon dioxide, calculated on a lifecycle basis, for each of fiscal years 2029 through 2034; and (4) 10,000,000 net metric tons of carbon dioxide, calculated on a lifecycle basis, for fiscal year 2035 and each fiscal year thereafter. (b) Timing The Secretary shall remove each amount of carbon dioxide required under subsection (a) by not later than 3 years after the beginning of the fiscal year for which such removal is required. (c) Small removal project set-Aside To the extent practicable, at least 20 percent of the net metric tons of carbon dioxide required to be removed for each of fiscal years 2024 through 2034 under subsection (a) shall be removed by small removal projects. (d) Economic feasibility (1) In general The removal of carbon dioxide under this section shall be considered economically feasible if such removal can be accomplished or, in the case of a contract, purchased— (A) with respect to such removal carried out for any of fiscal years 2024 through 2025, at a price per metric ton of carbon dioxide of not more than $750 (which the Secretary may adjust for inflation); (B) with respect to such removal carried out for any of fiscal years 2026 through 2028, at a price per metric ton of carbon dioxide of not more than $500 (which the Secretary may adjust for inflation); (C) with respect to such removal carried out for any of fiscal years 2029 through 2031, at a price per metric ton of carbon dioxide of not more than $300 (which the Secretary may adjust for inflation); (D) with respect to such removal carried out for any of fiscal years 2032 through 2034, at a price per metric ton of carbon dioxide of not more than $200 (which the Secretary may adjust for inflation); and (E) with respect to such removal carried out for fiscal year 2035 and each fiscal year thereafter, at a price per metric ton of carbon dioxide of not more than $150 (which the Secretary may adjust for inflation). (2) Inclusion of monitoring, reporting, and verification costs In determining whether the removal of carbon dioxide is considered economically feasible under paragraph (1), the price for such removal shall include any costs associated with the monitoring, reporting, and verification required under subsection (f)(1). (3) Multi-year contracts Notwithstanding paragraph (1), the removal of carbon dioxide carried out pursuant to a multi-year contract entered into under subsection (h) shall be considered economically feasible if such removal can be accomplished at the applicable dollar amount for the first fiscal year of the contract, as provided in paragraph (1), through the entire length of such contract. (e) Federal assistance Funds received pursuant to a contract entered into under subsection (h) shall not be considered Federal assistance or otherwise affect eligibility for any Federal assistance, including tax incentives. (f) Monitoring, reporting, and verification (1) In general The Secretary, or an entity the Secretary enters into a contract with under subsection (h), shall monitor, report, and verify the net metric tons of carbon dioxide the Secretary or such entity, as applicable, removed for purposes of this section. (2) Standards Not later than 1 year after the date of enactment of this section, the Secretary, in consultation with the Administrator of the National Oceanic and Atmospheric Administration, the Administrator of the Environmental Protection Agency, the Secretary of the Department of Agriculture, and other relevant Federal agencies as determined appropriate by the Secretary, shall establish standards for the monitoring, reporting, and verification of net metric tons of carbon dioxide removed pursuant to this section. Such standards shall— (A) require the use of the best available practices used by similar carbon dioxide removal projects; (B) ensure safe, effective, and efficient removal of carbon dioxide; (C) require independent, third-party verification of carbon dioxide removal; (D) ensure additionality, permanence, and net-negativity of carbon dioxide removal; (E) include criteria to determine whether the storage of captured carbon dioxide is permanent; (F) ensure scientifically rigorous and transparent methods for monitoring, reporting, and verifying under paragraph (1); and (G) be regularly reviewed and, as necessary, updated to account for scientific and technological advancements. (3) Prohibition on double counting Carbon dioxide that is removed for the purposes of compliance with any other greenhouse gas emissions management program, including any foreign, Federal, State, local, or private greenhouse gas emissions management program, as determined by the Secretary, may not be considered removed under subsection (a) for purposes of meeting the requirements of such subsection. (g) Priorities In carrying out this section, the Secretary shall give priority to a project for the removal of carbon dioxide based on the degree to which the project— (1) minimizes the amount of greenhouse gas emissions released by carrying out such project; (2) supports the commercialization of innovative removal technologies; (3) increases the diversity of commercially available eligible technologies; (4) may provide for domestic job creation, with a further preference for partnerships with labor organizations, small businesses, minority-owned businesses, and women-owned businesses across value chains; (5) results in economic development or economic diversification in regions or localities that have historically generated significant economic activity from the production, processing, transportation, or combustion of fossil fuels, including through the use of coal mines, fossil fuel-fired electricity generating units, and petroleum refining facilities; (6) quantifies and mitigates risks from carbon dioxide removal activities on, and provides measurable co-benefits to, environmental justice communities, the environment, agriculture, and public health, including by— (A) improving local air quality, water quality, and soil quality; (B) minimizing land, water, and energy footprints; and (C) using zero-emission energy; and (7) includes robust public engagement and community benefits. (h) Contracts (1) In general After a transparent and competitive process, the Secretary may enter into a contract to meet the requirements of subsection (a). (2) Length A contract entered into under this subsection may not be for a term of more than 15 years. (3) Maintenance of removal commitments The Secretary shall include as a term or condition in each contract entered into under this subsection that the entity that enters into the contract shall permanently store an additional amount of carbon dioxide that is equal to any amount of carbon dioxide that is released after permanent storage by such entity. (4) Limitation To the extent that there is a sufficient number of entities capable of removing carbon dioxide in a manner that meets the standards and requirements of this section under a contract entered into pursuant to this subsection, the Secretary shall ensure that no one entity is responsible for removing more than 25 percent of the net metric tons of carbon dioxide required under subsection (a) in any fiscal year. (i) Report Not later than January 1, 2027, and every 2 years thereafter, the Secretary shall submit to Congress, and release to the public, a report on the progress of carrying out the requirements of this section, which such report shall include— (1) the amounts verified under subsection (f)(1) and the corresponding names of each entity that provided such verified amount; (2) the total price, and price per metric ton, to remove carbon dioxide for the applicable fiscal year as required under subsection (a); (3) the methods associated with the monitoring, reporting, and verification required under subsection (f)(1); (4) an estimate of how removing carbon dioxide under this section affects environmental justice communities, the environment, agriculture, and public health; (5) information on potential labor impacts and job creation resulting from fulfilling the requirements of subsection (a); and (6) an explanation of how the Secretary prioritized projects under subsection (g). (j) Authorization of appropriations There are authorized to be appropriated such sums as are necessary to carry out this section. (k) Definitions In this section: (1) Eligible technology (A) In general The term eligible technology means, as determined by the Secretary, any equipment, technique, or technology that— (i) was placed into service after January 1, 2022; and (ii) removes carbon dioxide directly from ambient air or seawater. (B) Exclusion The term eligible technology does not include any equipment, technique, or technology that— (i) removes carbon dioxide which is deliberately released from naturally occurring subsurface springs; (ii) removes carbon dioxide using natural photosynthesis, except as provided in subparagraph (C); or (iii) uses captured carbon dioxide in enhanced oil recovery. (C) Expansion of eligible technology Notwithstanding subparagraph (B)(ii), any equipment, technique, or technology that removes carbon dioxide using gasification, pyrolysis, or sequestration of solid, nonhazardous, and cellulosic waste materials may be considered an eligible technology under this section if the Secretary, by rule— (i) determines an entity that carries out a removal project under this section is able to adequately monitor, report, and verify the amount of greenhouse gas emissions, calculated on a lifecycle basis (including direct emissions and significant indirect emissions), removed using such equipment, technique, or technology; (ii) determines an entity that carries out a removal project under this section is able to adequately mitigate the environmental impacts (including impacts on biodiversity, land use, and air and water quality) associated with such equipment, technique, or technology; and (iii) requires an entity carrying out a removal project under this section to— (I) adequately monitor, report, and verify the amount and storage permanence of greenhouse gas emissions, calculated on a lifecycle basis (including direct emissions and significant indirect emissions), associated with using such equipment, technique, or technology; and (II) adequately mitigate the environmental impacts (including impacts on biodiversity, land use, and air, soil, and water quality) associated with using such equipment, technique, or technology. (2) Lifecycle basis The term lifecycle basis means the net sum of all greenhouse gas emissions (using mass values for all greenhouse gases that are adjusted to account for their relative global warming potential, in consultation with the Administrator of the Environmental Protection Agency) and removals associated with carbon dioxide removal activity from cradle to grave, including any emissions associated with— (A) energy and feedstock inputs; (B) the carbon dioxide removal process; (C) carbon dioxide storage, including use and disposal of any materials or products associated with carbon dioxide storage; and (D) embodied emissions of the equipment. (3) Remove The term remove means to— (A) capture carbon dioxide using eligible technology; and (B) permanently store such captured carbon dioxide— (i) in dedicated subsurface geologic storage reported under sections 98.440 and 146.91(e) of title 40, Code of Federal Regulations (or successor regulations); (ii) in building materials and mineralized carbon materials; or (iii) using other permanent storage methods, as determined by the Secretary. (4) Secretary The term Secretary means the Secretary of Energy. (5) Small removal project The term small removal project means a project for the removal of carbon dioxide that does not remove more than 5 percent of the net metric tons of carbon dioxide required to be removed for the applicable fiscal year under subsection (a). 3. Study on the long-term future of Federal carbon dioxide removal management Not later than 1 year after the date of enactment of this Act, the Secretary of Energy, in consultation with the Administrator of the National Oceanic and Atmospheric Administration, the Administrator of the Environmental Protection Agency, the Secretary of the Department of Agriculture, and other relevant Federal agencies, shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report that evaluates and makes recommendations for potential program design elements and financing options for a Federal carbon dioxide removal offtake program that can be scaled to achieve carbon dioxide removal from the atmosphere and the oceans at a gigaton scale annually by 2050. Such report shall include consideration of potential management and organizational structures for the program, including— (1) a government sponsored enterprise; (2) a government corporation; (3) a program office with the Department of Energy or other Federal agency; and (4) a contracted service provider.