Sec. 112. Carbon capture technologies
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Section 962 of the Energy Policy Act of 2005 ( 42 U.S.C. 16292 ) is amended to read as follows: The Secretary shall conduct a program of research, development, demonstration, and commercial application of carbon capture technologies. The program shall advance the development and use of— carbon capture technologies in conjunction with coal and natural gas utilization in power systems and industry; innovations to improve the efficiency of, and decrease emissions at, existing power plants; advanced separation technologies and direct air capture technologies; and carbon capture technologies used in conjunction with the production from fossil fuel of hydrogen or ammonia to be used in power systems.
In conducting the program under subsection (a), the Secretary shall devote substantial resources to carbon capture technologies for coal applications. In supporting technology development activities under this section, the Secretary is encouraged to support large-scale pilot projects that test carbon capture technologies on power systems. Support for such large-scale pilot projects shall be subject to the cost sharing requirements in section 988(b). For purposes of this section, the term large-scale pilot project means a pilot project that— represents the scale of technology development beyond laboratory development and bench scale testing, but not yet advanced to the point of being tested under operational conditions at commercial scale; 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 is large enough— to validate scaling factors; and 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.
In carrying out the development, demonstration, and commercial application activities under subsection (a), the Secretary shall consider cost and performance goals, in order to advance development and deployment of carbon capture technologies that can become cost competitive in commercial applications. Not later than 1 year after the date of the enactment of the Clean Energy Future Through Innovation Act of 2020 , the Secretary shall award grants to one or more entities for the operation of Carbon Capture Test Centers (in this subsection referred to as the Centers ) to provide unique testing capabilities for innovative power system technologies to capture carbon dioxide or otherwise produce a carbon dioxide stream suitable for utilization or storage.
The Centers shall— advance research, development, demonstration, and commercial application of carbon capture technologies for power systems; and test technologies that represent the scale of technology development beyond laboratory testing, but not yet advanced to testing under operational conditions at commercial scale. An entity seeking to operate a Center under this subsection shall submit to the Secretary an application at such time and in such manner as the Secretary may require.
In evaluating applications to operate the Centers under this subsection, the Secretary shall prioritize grants to applicants that meet one or more of the following criteria: The applicant has access to existing or planned research facilities with modular technology capabilities. The applicant is an institution of higher education with established expertise in engineering and design for carbon capture technologies, or has a partnership with such an institution. The applicant has access to existing research and test facilities for precombustion, postcombustion, or oxy-combustion technologies.
The applicant has capability to test integration of carbon capture technologies with utility-scale power plants. Commercial market participants, including equipment and technology suppliers and power generators, are involved in the proposed Center. In awarding grants for the operation of the Centers under this subsection, the Secretary shall ensure that— the Centers support pilot testing appropriate to diverse regions and resource characteristics; and each Center receiving such a grant demonstrates unique research capabilities, unique regional benefits, or new technology development opportunities.
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. The Secretary shall require cost sharing under this subsection in accordance with section 988(b). The Secretary may eliminate a Center during any 5-year term described in paragraph
(6)if such Center is found to be underperforming. The Secretary may fund commercial-scale demonstration projects for power systems that test the scale of technology necessary for commercial operation, in accordance with this subsection. The Secretary is authorized to fund engineering and design studies for commercial-scale demonstration projects for power systems in addition to, or in advance of, issuing an award for a demonstration project under this subsection. An entity seeking an award to conduct a demonstration project under this subsection shall submit to the Secretary an application at such time and in such manner as the Secretary may require. The Secretary may only provide an award under this subsection after reviewing each application regarding— the financial strength of the applicant; the construction schedule for the proposed demonstration project; the market risk faced by the technology to be demonstrated; and the experience of the applicant and construction contractor with similar projects. A demonstration project funded under this subsection shall— utilize technologies that have completed pilot-scale testing or the equivalent, as determined by the Secretary; secure and maintain agreements for the utilization or sequestration of captured carbon dioxide; and upon completion, demonstrate carbon capture technologies on a power system. The Secretary shall require cost sharing under this subsection in accordance with section 988. In this section, the term power system means any electricity generating unit that utilizes fossil fuels to generate electricity provided to the electric grid or directly to a consumer. For activities under this section, there are authorized to be appropriated to the Secretary— $600,000,000 for fiscal year 2021; $600,000,000 for fiscal year 2022; $600,000,000 for fiscal year 2023; $600,000,000 for fiscal year 2024; and $600,000,000 for fiscal year 2025. . The Comptroller General of the United States shall conduct a study of the Department’s successes, failures, practices, and improvements in carrying out demonstration projects for carbon capture technologies for power systems. In conducting the study, the Comptroller General shall consider, at a minimum— applicant and contractor qualifications; project management practices at the Department; economic or market changes and other factors impacting project viability; completion of third-party agreements, including power purchase agreements and carbon dioxide offtake agreements; regulatory challenges; and construction challenges. Not later than 3 years after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report on the results of the study required under paragraph (1). The Secretary shall consider any relevant recommendations, as determined by the Secretary, provided in the study required under paragraph (1), and shall adopt such recommendations as the Secretary considers appropriate. In this section, the term power system means any electricity generating unit that utilizes fossil fuels to generate electricity provided to the electric grid or directly to a consumer.
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Sec. 112
Carbon capture technologies
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