Sec. 201. Carbon removal purchasing pilot 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 adding at the end the following: The purposes of this section are— to accelerate the deployment and commercialization of carbon removal pathways and technologies; to stimulate the development and commercialization of low-carbon products made with carbon dioxide removed from the atmosphere or oceans; and to support the development of technologies relating to carbon removal. In this section:
The term additional , with respect to carbon dioxide removed from the atmosphere or upper hydrosphere, means that carbon dioxide was removed pursuant to an intentional carbon removal activity that delivers a net removal of carbon dioxide from the atmosphere, measured on a lifecycle basis, that would not have occurred without the carbon removal activity. The term all-in cost means the total cost of— the capture, transport, and storage of carbon dioxide; and the measurement, reporting, and verification of carbon dioxide removed on a net ton carbon dioxide equivalent basis.
The term eligible entity means a carbon removal facility that— is located in the United States; meets all applicable Federal and State permitting requirements; and meets financial and technical criteria established by the Secretary. The term removal means— the capture of carbon dioxide from the atmosphere or upper hydrosphere through a chemical, physical, or other process; and the subsequent permanent storage or use of the carbon dioxide in a manner that ensures that the carbon dioxide does not reenter the atmosphere or upper hydrosphere.
The term upper hydrosphere means the total liquid water existing on the surface level of the earth, including— oceans; lakes; rivers; and other surface bodies of water. The Secretary shall establish a competitive purchasing pilot program under which the Secretary shall purchase from eligible entities carbon dioxide removed from the atmosphere or upper hydrosphere. In carrying out the pilot program under paragraph (1), the Secretary shall purchase, subject to the availability of appropriations, removed carbon dioxide from eligible entities— until the date on which the first reverse auction is held under paragraph (3), by making a payment per net ton carbon equivalent basis to account for lifecycle greenhouse gas inputs to carbon removal in an amount determined by the Secretary; and beginning with the first reverse auction held under paragraph (3), in accordance with the reverse auction procedures described in that paragraph.
Not later than 2 years after the date of enactment of this section, and annually thereafter, the Secretary shall conduct a reverse auction under which— the Secretary shall solicit bids from eligible entities in each tier described in subparagraph (B)(ii) (referred to in this section as a permanence tier ); and eligible entities shall submit to the Secretary sealed bids describing— a desired price for the removed carbon dioxide on a per net ton carbon dioxide equivalent basis; the estimated net ton carbon dioxide equivalent removed by the eligible entity annually that the eligible entity desires the Secretary to purchase at the desired price; details of the permanence of the removed carbon dioxide; details on the purity, location, and transportation options for the removed carbon dioxide to be purchased by the Secretary for purposes of the all-in costs; a lifecycle assessment of the operation to quantify the net carbon dioxide removed, while accounting for greenhouse gas emissions associated with the production of the inputs necessary for the carbon dioxide removal and storage processes; and any other details the Secretary may require.
The Secretary shall— examine the bids submitted under subparagraph (A)(ii) to determine which bids are acceptable under the criteria established by the Secretary for the applicable permanence tier; and of the bids determined to be acceptable under subclause (I), select the bids containing the lowest desired price for carbon dioxide until the amount of funds available for the applicable permanence tier of the reverse auction is obligated. In selecting bids under clause (i), the Secretary shall group the permanence of each carbon removal bid into 1 of the following 2 tiers:
Medium-term tier for bids providing for the removal of carbon dioxide for at least 100 years, but fewer than 1,000 years. Long-term tier for bids providing for the removal of carbon dioxide for 1,000 years or more. In any case in which the desired price in 2 or more bids submitted under subparagraph (A)(ii) for an applicable permanence tier is equal, the Secretary shall give priority to eligible entities that demonstrate outstanding potential for local and regional economic development in carrying out projects to remove carbon dioxide from ambient air or aquatic sources.
Subject to subparagraph (B), for purposes of a reverse auction under paragraph (3), the Secretary shall— determine the current average market price per net ton carbon dioxide equivalent basis to account for lifecycle greenhouse gas inputs of removed carbon within each permanence tier; and set that price as the maximum price per ton to be paid under the reverse auction within each permanence tier. In the case of an eligible entity that uses a technology that has the potential to eventually remove carbon dioxide at an all-in cost of less than $100 per net ton carbon dioxide equivalent, the Secretary shall double the maximum price per net ton carbon dioxide equivalent established under subparagraph (A)(ii) with respect to the eligible entity.
In purchasing removed carbon dioxide under the program under paragraph (1), the Secretary shall determine that the carbon dioxide— is additional; shall be delivered not later than 5 years after the date of the purchase; shall have a monitoring, reporting, and verification plan approved by the Department of Energy; and has not less than a 99 percent likelihood of being stored for not fewer than 100 years. Carbon dioxide purchased under the pilot program under subsection (c), at the discretion of the Secretary, may be used or stored in any manner that ensures that the carbon dioxide does not reenter the atmosphere or upper hydrosphere during the time period associated with the applicable permanence tier.
Amounts made available under this section may be made available to carry out pilot and demonstration projects described in section 969D(f)(2)(B) and section 969D(g). The Secretary shall establish procedures to ensure that any confidential, private, proprietary, or privileged information that is included in a sealed bid submitted under this section is not publicly disclosed or otherwise improperly used. There are authorized to be appropriated to the Secretary to carry out this section— $20,000,000 for fiscal year 2023; $30,000,000 for fiscal year 2024; and $60,000,000 for each of fiscal years 2025 through 2027.
Amounts made available under paragraph
(1)for each fiscal year shall be allocated between the permanence tiers as follows: 70 percent shall be allocated for the permanence tier described in subsection (c)(3)(B)(ii)(II). 30 percent shall be allocated for the permanence tier described in subsection (c)(3)(B)(ii)(I). . The table of contents for the Energy Policy Act of 2005 ( Public Law 109–59 ; 119 Stat. 600; 134 Stat. 2550) is amended by adding at the end of the items relating to subtitle F of title IX the following: Sec. 969E. Carbon removal purchasing pilot program. .
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- Pub. L. 109-59
- 119 Stat. 600
- 134 Stat. 2550
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Sec. 201
Carbon removal purchasing pilot program
Pub. L.Pub. L. 109-59
Stat.119 Stat. 600
Stat.134 Stat. 2550
Cites 4Cited by 0 across 0 sources