Sec. 3110. Carbon removal
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Subtitle F of title IX of the Energy Policy Act of 2005 ( 42 U.S.C. 16291 et seq.) is further amended by adding at the end the following: The Secretary, in coordination with the appropriate Federal agencies, shall establish a research, development, and demonstration program to remove carbon dioxide from the atmosphere on a large scale. The program may include activities in— direct air capture and storage technologies; enhanced carbon mineralization; bioenergy with carbon capture and sequestration; agricultural and grazing practices; forest management and afforestation; and planned or managed carbon sinks, including natural and artificial.
In carrying out the program established in subsection (a), the Secretary shall prioritize— the activities described in paragraphs
(1)and
(2)of subsection (a), acting through the Assistant Secretary for Fossil Energy; the activities described in subsection (a)(3), acting through the Assistant Secretary for Energy Efficiency and Renewable Energy and the Assistant Secretary for Fossil Energy; the activities described in subsection (a)(4), acting through the Assistant Secretary for Fossil Energy in consultation with the Secretary of Agriculture; and the activities described in subsection (a)(5), acting through the Assistant Secretary for Fossil Energy in consultation with the Secretary of Agriculture. The program under this section shall identify and develop carbon removal technologies and strategies that consider the following: Land use changes, including impacts on natural and managed ecosystems. Ocean acidification. Net greenhouse gas emissions. Commercial viability. Potential for near-term impact. Potential for carbon reductions on a gigaton scale. Economic co-benefits. The Department shall collaborate with the Environmental Protection Agency and other relevant agencies to develop and improve accounting frameworks and tools to accurately measure carbon removal and sequestration methods and technologies across the Federal Government. Not later than 1 year after the date of enactment of this Act, as part of the program carried out under this section, the Secretary shall carry out a program to award competitive technology prizes for carbon dioxide capture from ambient air or water. In carrying out this subsection, the Secretary shall— in accordance with section 24 of the Stevenson-Wydler Technology Innovation Act of 1980 ( 15 U.S.C. 3719 ), develop requirements for— the prize competition process; minimum performance standards for projects eligible to participate in the prize competition; and monitoring and verification procedures for projects selected to receive a prize award; establish minimum levels for the capture of carbon dioxide from ambient air or water that are required to qualify for a prize award; and offer prize awards for any of the following: A design for a promising capture technology that will— be operated on a demonstration scale; and have the potential to achieve significant reduction in the level of carbon dioxide in the atmosphere. A successful bench-scale demonstration of a capture technology. In this subsection: The term qualified carbon dioxide means any carbon dioxide that— is captured directly from the ambient air; and is measured at the source of capture and verified at the point of disposal, injection, or utilization. The term qualified carbon dioxide includes the initial deposit of captured carbon dioxide used as a tertiary injectant. The term qualified carbon dioxide does not include carbon dioxide that is recaptured, recycled, and reinjected as part of the enhanced oil and natural gas recovery process. Subject to clause (ii), the term qualified direct air capture facility means any facility that— uses carbon capture equipment to capture carbon dioxide directly from the ambient air; and captures more than 10,000 metric tons of qualified carbon dioxide annually. The term qualified direct air capture facility does not include any facility that captures carbon dioxide— that is deliberately released from naturally occurring subsurface springs; or using natural photosynthesis. Not later than 1 year after the date of enactment of this section, the Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall establish a commercial direct air capture prize designed to significantly reward commercial applications of direct air capture technologies. Under the prize program, the Secretary shall provide financial awards in a competitive setting equally for each ton of qualified carbon dioxide captured by a qualified direct air capture facility until appropriated funds are expended. The prize per metric ton shall not exceed— $180 for qualified carbon dioxide captured and stored in saline storage formations; a lesser amount as determined by the Secretary for qualified carbon dioxide captured and stored in conjunction with enhanced oil recovery operations; or a lesser amount as determined by the Secretary for qualified carbon dioxide captured and utilized in any activity consistent with section 45Q(f)(5) of the Internal Revenue Code of 1986. Not later than 1 year after the date of enactment of this section, the Administrator, in consultation with the Secretary, shall submit requirements for qualifying metric tons of carbon dioxide. In carrying out this clause, the Administrator shall develop specific requirements for— the process of applying for prizes; and the demonstration of performance of approved projects. For purposes of determining the amount of metric tons of qualified carbon dioxide eligible for prizes under clause (i), the amount shall be equal to the net metric tons of carbon dioxide removal demonstrated by the recipient, subject to the requirements set forth by the Administrator under such clause. The Secretary shall award prizes on an annual basis to qualified direct air capture facilities for metric tons of qualified carbon dioxide captured and verified at the point of disposal, injection, or utilization. There are authorized to be appropriated to carry out this subsection $200,000,000 for the period of fiscal years 2021 through 2025, and $400,000,000 for the period of fiscal years 2026 through 2030, to remain available until expended. Not later than 1 year after the date of enactment of this section, the Secretary shall award grants to one or more eligible entities for the operation of one or more test centers (in this subsection, known as Centers ) to provide unique testing capabilities for innovative direct air capture and storage technologies. Each Center shall— advance research, development, demonstration, and commercial application of direct air capture and storage technologies; support pilot plant and full-scale demonstration projects and test technologies that represent the scale of technology development beyond laboratory testing but not yet advanced to test under operational conditions at commercial scale; develop front-end engineering design and economic analysis; and maintain a public record of pilot and full-scale plant performance. In selecting applications to operate a Center under this subsection, the Secretary shall prioritize applicants that— have access to existing or planned research facilities; are institutions of higher education with established expertise in engineering for direct air capture technologies, or partnerships with such institutions; or have access to existing research and test facilities for bulk materials design and testing, component design and testing, or professional engineering design. Each grant to operate a Center under this subsection shall be awarded for a term of not more than 5 years, subject to the availability of appropriations. The Secretary may renew such 5-year term without limit, subject to a rigorous merit review. To the extent otherwise authorized by law, the Secretary may eliminate the center during any 5-year term described in the last paragraph if it is underperforming. In supporting the technology development activities under this section, the Secretary is encouraged to support carbon removal pilot and demonstration projects, including— pilot projects that test direct air capture systems capable of capturing 10 to 100 tonnes of carbon oxides per year to provide data for demonstration-scale projects; and direct air capture demonstration projects capable of capturing greater than 1,000 tonnes of carbon oxides per year. In carrying out the program established in (a), the Secretary shall encourage and promote collaborations among relevant offices and agencies within the Department. There are authorized to be appropriated to the Secretary for activities under this section— $275,000,000 for fiscal year 2021, of which $15,000,000 are authorized to carry out subsection
(e)and of which $200,000,000 are authorized to carry out subsection (f); $263,000,000 for fiscal year 2022, of which $200,000,000 are authorized to carry out subsection (f); $266,150,000 for fiscal year 2023, of which $200,000,000 are authorized to carry out subsection (f); $269,458,000 for fiscal year 2024, of which $200,000,000 are authorized to carry out subsection (f); and $272,930,000 for fiscal year 2025, of which $200,000,000 are authorized to carry out subsection (f). .
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