Sec. 101. Large-scale carbon storage program
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Subtitle F of title IX of the Energy Policy Act of 2005 (42 U.S.C. 16291 et seq.) is amended by inserting after section 963 ( 42 U.S.C. 16293 ) the following: In this section: The term industrial source means any source of carbon dioxide that is not naturally occurring. The term large-scale means the injection from industrial sources into a geological formation of— over 1,000,000 tons of carbon dioxide each year; or carbon dioxide to a scale that demonstrates the ability to inject and sequester several million metric tons of industrial source carbon dioxide for a large number of years.
The term Secretary concerned means— the Secretary of Agriculture (acting through the Chief of the Forest Service), with respect to National Forest System land; and the Secretary of the Interior, with respect to land managed by the Bureau of Land Management (including land held for the benefit of an Indian tribe). The Secretary shall carry out a program to demonstrate the integration of systems for the capture, transportation, and injection of carbon dioxide from industrial sources, either for the purpose of long-term geological storage or enhanced oil recovery at a commercial scale.
In carrying out the program, the Secretary may enter into cooperative agreements to provide financial and technical assistance to up to 10 large-scale geological storage or enhanced oil recovery projects. Not fewer than 3 of the 10 projects selected shall be large-scale projects that undertake site characterization and permitting to qualify the projects as ready for long-term saline storage sites. The Secretary shall competitively select recipients of cooperative agreements under this section from among applicants that— provide the Secretary with sufficient geological site information (including hydrogeological and geophysical information) to establish that the proposed geological formation is capable of use for enhanced oil recovery and, in the case of geological storage, is capable of long-term storage of the injected carbon dioxide, including— the location, extent, and storage capacity of the geological storage unit at the site into which the carbon dioxide will be injected; the principal potential modes of geomechanical failure in the geological storage unit; the ability of the geological storage unit to retain injected carbon dioxide; the measurement, monitoring, and verification requirements necessary to ensure adequate information on the operation of the geological storage unit during and after the injection of carbon dioxide; and a study and report on the rate of injection of carbon dioxide from power plants (based on operating the plant on a 24-hours-a-day, 7-days-a-week, and 365-days-a-year basis over several decades) necessary to avoid— imbalances of carbon dioxide; and making the proposed geological formation of the site into which the carbon dioxide will be injected unusable, unstable, or such that there would be forced stoppages of injection; have legal authority to use the land or interests in land necessary for— the injection of the carbon dioxide at the proposed geological storage unit or enhanced oil recovery site; and the storage, closure, monitoring, and long-term stewardship of the geological storage unit for geological storage of carbon dioxide; and sequester not fewer than 500,000 metric tons of carbon dioxide in 1 contiguous geographic and geologic formation.
The Secretary shall condition receipt of financial assistance pursuant to a cooperative agreement under this section on the recipient agreeing— to comply with all applicable Federal and State laws (including regulations), including— the requirements of the underground injection control program under part C of the Safe Drinking Water Act (42 U.S.C. 300h et seq.) (referred to in this section as the UIC program ); and any other Federal and State requirements to protect drinking water supplies; and in the case of industrial sources subject to the Clean Air Act (42 U.S.C. 7401 et seq.), to inject only carbon dioxide captured from industrial sources in compliance with that Act.
In this subsection, the term liability means any legal liability for— bodily injury, sickness, disease, or death; loss of or damage to property, or loss of use of property; or injury to or destruction or loss of natural resources, including fish, wildlife, and drinking water supplies. Not later than 1 year after the date of the receipt by the Secretary of a completed application for assistance authorized under subsection (c), the Secretary may agree to indemnify and hold harmless the recipient of a cooperative agreement under this section from liability arising out of or resulting from a demonstration project in excess of the amount of liability covered by financial protection maintained by the recipient in accordance with the requirements of the UIC program.
Notwithstanding paragraph (1), the Secretary may not indemnify the recipient of a cooperative agreement under this section from liability arising out of conduct of a recipient that is grossly negligent or that constitutes intentional misconduct. The Secretary shall collect a fee from any person with whom an agreement for indemnification is executed under this subsection in an amount that is equal to the net present value of payments made by the United States to cover liability under the indemnification agreement.
The Secretary shall establish, by regulation, criteria for determining the amount of the fee, taking into account— the likelihood of an incident resulting in liability to the United States under the indemnification agreement; and other factors pertaining to the hazard of the indemnified project. Fees collected under this paragraph shall be deposited in the Treasury and credited to miscellaneous receipts. Subject to subparagraph (B), the Secretary may enter into agreements of indemnification under this subsection in advance of appropriations and incur obligations without regard to section 1341 of title 31, United States Code (commonly known as the ), or Anti-Deficiency Act section 11 of title 41, United States Code (commonly known as the ).
Adequacy of Appropriations Act The amount of indemnification under this subsection shall not exceed $10,000,000,000 (adjusted not less than once during each 5-year period following the date of enactment of this section, in accordance with the aggregate percentage change in the Consumer Price Index since the previous adjustment under this subparagraph), in the aggregate, for all persons indemnified in connection with an agreement and for each project, including such legal costs as are approved by the Secretary.
The agreement shall provide that, if the Secretary makes a determination that there is a substantial likelihood that the United States will be required to make indemnity payments under the agreement, the Attorney General— shall collaborate with the recipient of an award under this subsection; and may— approve the payment of any claim under the agreement of indemnification; appear on behalf of the recipient; take charge of an action; and settle or defend an action. The Attorney General shall have final authority on behalf of the United States to settle or approve the settlement of any claim under this subsection on a fair and reasonable basis with due regard for the purposes of this subsection.
The settlement shall not include expenses in connection with the claim incurred by the recipient. The Secretary concerned may authorize the siting of a project on Federal land under the jurisdiction of the Secretary concerned in a manner consistent with applicable laws and land management plans and subject to such terms and conditions as the Secretary concerned determines to be necessary. In determining whether to authorize a project on Federal land, the Secretary concerned shall take into account the framework for geological carbon sequestration on public land prepared in accordance with section 714 of the Energy Independence and Security Act of 2007 ( Public Law 110–140 ; 121 Stat. 1715).
As a condition of a cooperative agreement under this section, the Secretary may accept title to, or transfer of administrative jurisdiction from another Federal agency over, any land or interest in land necessary for the monitoring, remediation, or long-term stewardship of a project site. After accepting title to, or transfer of, a site closed in accordance with this section, the Secretary shall monitor the site and conduct any remediation activities to ensure the geological integrity of the site and prevent any endangerment of public health or safety.
There is appropriated to the Secretary, out of funds of the Treasury not otherwise appropriated, such sums as are necessary to carry out paragraph (2). There are authorized to be appropriated to carry out this section such sums as are necessary. .
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- Pub. L. 110-140
- 121 Stat. 1715
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Sec. 101
Large-scale carbon storage program
Pub. L.Pub. L. 110-140
Stat.121 Stat. 1715
Cites 6Cited by 0 across 0 sources