Sec. 101. Fossil energy and carbon management

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Title II of the Department of Energy Organization Act ( 42 U.S.C. 7131 et seq. ) is amended by adding at the end the following: There is established within the Department an Office of Fossil Energy and Carbon Management (referred to in this section as the Office ). The Office shall be headed by the Assistant Secretary for Fossil Energy and Carbon Management (referred to in this section as the Assistant Secretary ), who shall be appointed by the President in accordance with section 203.

In carrying out research, development, and demonstration relating to carbon dioxide removal, the Assistant Secretary shall— incorporate best practices from the existing carbon capture and storage research programs within the Department of Energy into the Office; be responsible for crosscut coordination of planning and budget for all research, development, and demonstration programs of the Department of Energy relating to carbon dioxide removal (as defined in section 2 of the Carbon Dioxide Removal Research and Development Act of 2023 ); serve as the primary point of contact for any relevant interagency planning and coordination efforts; conduct analyses and technology assessments of carbon dioxide removal systems, development, and demonstration programs, including by engaging with the National Laboratories (as defined in section 2 of the Energy Policy Act of 2005 ( 42 U.S.C. 15801 )) to assess lifecycle performance of carbon dioxide removal systems; and provide project management services for all demonstration-scale projects emerging from the technological carbon dioxide removal research, development, and demonstration portfolio.

The mission of the Office shall include the research, development, and demonstration of direct air capture and carbon mineralization technologies. The National Energy Technology Laboratory shall have the lead responsibility within the Department of Energy for planning and managing research, development, and demonstration activities relating to direct air capture and carbon storage, with the goal of establishing and driving down technology-specific cost targets. All projects carried out by the Office shall be subject to rigorous project management requirements and procedures modeled on Department Order 413.3b (relating to program and project management for the acquisition of capital assets) (or a successor order). .

The table of contents for the Department of Energy Organization Act ( Public Law 95–91 ; 91 Stat. 565; 119 Stat. 764) is amended by adding at the end of the items relating to title II the following: Sec. 218. Office of Fossil Energy and Carbon Management. . Any reference in a law, regulation, document, paper, or other record to the Office of Fossil Energy shall be deemed to be a reference to the Office of Fossil Energy and Carbon Management . Section 969D of the Energy Policy Act of 2005 ( 42 U.S.C. 16298d ) is amended— in subsection (c), by striking paragraph

(5)and inserting the following: ecologically sound, resilience-oriented, and carbon-sequestering forest management techniques, forest restoration, urban tree planting and management, and reforestation such that negative land-use change impacts, such as endangering food security and biodiversity loss, can be avoided; and ; by redesignating subsections (d), (e), (f), (g), (h), (i), (j), and

(k)as subsections (e), (f), (g), (i), (j), (k), (l), and (m), respectively; by inserting after subsection

(c)the following: In carrying out subsection (c)(1), the Secretary shall consider carrying out activities relating to— contactor design; low- and zero-carbon heat; advanced or unconventional systems and components; scale-up studies and pilot plants; operational data collection; engineering design support for large-scale projects; external techno-economic analyses; and monitoring, reporting, and verification capabilities. In carrying out subsection (c)(2), the Secretary shall consider carrying out activities relating to advanced biomass-to-power conversion. In carrying out subsection (c)(3), the Secretary shall consider carrying out activities relating to— alkalinity resource assessments; pilot studies of ex situ mineralization; and pilot studies of in situ mineralization for carbon storage. In carrying out carbon utilization activities under the program, the Secretary shall consider carrying out activities relating to the integration of carbonation with carbon dioxide capture processes. In carrying out cross-cutting activities under the program, the Secretary shall consider carrying out activities relating to— carbon dioxide removal data collection and publication; technology cost and performance; integrated carbon systems modeling; and decision science. ; by inserting after subsection

(g)(as so redesignated) the following: Not later than 2 years after the date of enactment of this subsection the Secretary shall make competitive awards for a portfolio of carbon dioxide removal demonstration projects described in paragraph (2). Subject to subsection (e), to be eligible for an award under paragraph (1), a carbon dioxide removal demonstration project shall— use 1 or more technologies and strategies described in subsection (c), including activities described in subsection (i); have a total cost of not less than $10,000,000; be located in the United States or, in the case of ocean-based projects, within the territorial sea or exclusive economic zone of the United States; have the potential for large-scale, cost-effective replication; and meet such other provisions as may be established by the Secretary consistent with the purposes of this section. In making awards under paragraph (1), out of the funds provided under subsection (m)(1), the Secretary shall allocate— $500,000,000 to projects with total costs of not less than $10,000,000 and not more than $100,000,000; $750,000,000 to projects— with a total cost of more than $100,000,000; and under which all captured carbon dioxide is disposed of in geologic storage in saline aquifers; and $750,000,000 to projects with a total cost of more than $100,000,000, without regard to the type of storage. Except as provided in subparagraph (B), with respect to a project receiving an award under paragraph (1), the Secretary shall require that— in the case of a project that disposes of carbon dioxide in geologic storage in an operating oil and gas field, not less than 50 percent of the total project cost shall be provided by a non-Federal source; and in the case of a project that is not described in clause (i), not less than 20 percent of the total project cost shall be provided by a non-Federal source. the Federal share of the cost of a project receiving an award under paragraph

(1)with a total cost of not less than $10,000,000 and not more than $100,000,000 may be up to 100 percent. ; and in subsection

(m)(as so redesignated), by striking paragraphs

(1)through

(5)and inserting the following: $2,089,000,000 for fiscal year 2024, of which $2,000,000,000 shall be used to carry out subsection (h), to remain available until expended; $217,000,000 for fiscal year 2025; $312,000,000 for fiscal year 2026; $360,000,000 for fiscal year 2027; $440,000,000 for fiscal year 2028; $441,000,000 for fiscal year 2029; $451,000,000 for fiscal year 2030; $424,000,000 for fiscal year 2031; $380,000,000 for fiscal year 2032; and $337,000,000 for fiscal year 2033. .

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