[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4891 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 4891
To require the Secretary of Energy to establish a net-negative carbon
dioxide baseload power development and commercialization program, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 30, 2021
Mr. McKinley introduced the following bill; which was referred to the
Committee on Energy and Commerce, and in addition to the Committee on
Science, Space, and Technology, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To require the Secretary of Energy to establish a net-negative carbon
dioxide baseload power development and commercialization program, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Net-Negative Carbon Dioxide Baseload
Power Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Electricity, like air, food, and water, is one of
life's necessities.
(2) The Department of Energy properly concluded in its
January 2017 report to Congress, titled ``Valuation of Energy
Security for the United States'', the following:
(A) ``Electricity is essential for supporting and
sustaining nearly every sector of the modern economy
ranging from industrial output and services to national
security.''.
(B) ``A secure, reliable electric power sector is
necessary for economic growth, public safety, societal
well-being and proper functioning of critical
infrastructure, national security defense, lifeline
networks, transportation communications, water and
sewer.''.
(C) ``Without access to reliable electricity much
of the economy and all electricity-enabled critical
infrastructure are at risk.''.
(3) The service and reliability of the electric grid of the
United States depends significantly on baseload coal-fueled
power plants.
(4) Communities across the Nation are dependent upon, for
electricity supply and their economic well-being, coal-fueled
power plants and a healthy coal supply chain industry.
(5) Power plants, co-fueled by coal and biomass, that
incorporate carbon capture, utilization, and storage, have net-
negative carbon dioxide emissions.
(6) Baseload power plants, co-fueled by coal and biomass,
that incorporate carbon capture can provide a steady supply of
carbon dioxide for the manufacture of carbon-based chemicals,
carbon-based building materials, and other value-added products
which can use carbon dioxide.
(7) The Federal Government is likely to adopt climate
change policies that abruptly drive reduction in greenhouse gas
emissions. As a result, the Federal Government should also
incentivize the commercialization of net-negative carbon
dioxide power plant technology to achieve emissions reduction
targets, improve the reliability of the United States
electricity grid, and protect coal communities from devastating
economic loss.
(8) The United States should lead the world in developing
21st century net-negative baseload power technologies that will
allow developing countries to continue to use their domestic
energy resources, meet climate goals, and provide a steady
source of carbon dioxide for carbon-based products that
contribute to economic growth and social development.
SEC. 3. ESTABLISHMENT OF A NET-NEGATIVE CARBON DIOXIDE BASELOAD
DEVELOPMENT AND COMMERCIALIZATION POWER PROGRAM.
(a) In General.--The Energy Policy Act of 2005 (42 U.S.C. 16291 et
seq.) is amended by adding at the end of subtitle F of title IX, the
following:
``SEC. 970. NET-NEGATIVE CARBON DIOXIDE BASELOAD POWER DEVELOPMENT AND
COMMERCIALIZATION PROGRAM.
``(a) Definitions.--
``(1) Construction phase.--The term `construction phase'
means, with respect to an eligible project, the period between
a project's final investment decision and commencement of
commercial operations.
``(2) Eligible project.--The term `eligible project' means
a project to design, develop, construct, and operate a
combustion- or gasification-based baseload electricity
generating project, which meets the criteria published under
subsection (c) and, when operating, has net-negative carbon
dioxide emissions.
``(3) Final investment decision.--The term `final
investment decision' means, with respect to an eligible
project, the time in the project planning process when the
decision to make major financial commitments is taken.
``(4) Fuel supply chain.--The term `fuel supply chain'
means, with respect to an eligible project, the principal
industrial activities associated with the production,
processing, storage, and transportation of fuel to the eligible
project.
``(5) Net-negative carbon dioxide emissions.--The term
`net-negative carbon dioxide emissions' means that the annual
amount of carbon dioxide emitted by an eligible project,
including the project's fuel supply chain, conversion of fuel
to electricity and co-products, carbon capture and storage, and
other directly associated onsite activities, less the amount of
carbon dioxide permanently stored by the project including the
project's fuel supply chain, conversion of fuel to electricity
and co-products, carbon capture and storage, and other directly
associated onsite activities, is a negative amount.
``(6) Non-routine event.--The term `non-routine event'
means, with respect to a coal-fueled power plant, an event,
typically not planned, that interrupts routine operation,
including equipment failure, fuel supply chain disruption, and
pipeline interruption.
``(7) Operations phase.--The term `operations phase' means,
with respect to an eligible project, the period between
commencement of commercial operations and permanent cessation
of commercial operations.
``(8) Project concept study phase.--The term `project
concept study phase' means, with respect to an eligible
project, a study conducted prior to the project development
phase, to develop--
``(A) the basic project concept;
``(B) high-level project economics;
``(C) a description of the technology or
technologies that will be used for the eligible
project;
``(D) a compilation of the required permits and
plan for securing them;
``(E) project partners; and
``(F) project plans, including schedules.
``(9) Project development phase.--The term `project
development phase' means, with respect to an eligible project,
the period between completion of the project concept study and
the final investment decision. The project development phase
includes, with respect to an eligible project--
``(A) engineering design work;
``(B) legal work;
``(C) supplemental surface and subsurface rights
acquisition;
``(D) site-specific geologic characterization work;
``(E) permitting;
``(F) stakeholder engagement; and
``(G) other activities necessary to support a
successful final investment decision on the eligible
project.
``(10) Routine operation.--The term `routine operation'
means, with respect to a coal-fueled power plant, typically
expected operation of such coal-fueled power plant, including
start-ups, regular operations, planned shutdowns, and
maintenance.
``(b) Establishment.--
``(1) In general.--The Secretary shall establish a net-
negative carbon dioxide baseload power development and
commercialization program to--
``(A) facilitate the redevelopment of existing
coal-fueled power plant sites with technology that
enables baseload coal- and biomass-fueled power
generation that has net-negative carbon dioxide
emissions; and
``(B) lessen the negative economic impact from
climate change policies on communities dependent upon
coal-fueled power plants.
``(2) Eligible projects.--In carrying out the program
established under paragraph (1), the Secretary shall establish
a competitive, merit-reviewed process, with multiple closing
dates for applications that are not more than quarterly and not
less than semiannually, to provide financial assistance to
projects that will redevelop existing coal-fueled power plant
sites to supply net-negative baseload power.
``(c) Criteria.--The Secretary shall publish criteria in the
Federal Register for eligible projects, including that--
``(1) eligible projects shall--
``(A) involve redevelopment of existing coal-fueled
power plants at the same general site;
``(B) incorporate carbon capture, utilization, and
storage technology;
``(C) provide baseload power generation;
``(D) use at least 70 percent coal, based on energy
content, as fuel during the operations phase; and
``(E) include meaningful participation by the owner
of the existing coal-fueled power plant asset to be
redeveloped at the initiation of the concept study
phase;
``(2) eligible projects may--
``(A) on an annual basis, use up to 30 percent
biomass or other non-coal fuels combined, based on
energy content;
``(B) buy verifiable carbon dioxide offsets to
offset carbon dioxide emissions from non-routine
events;
``(C) permanently store carbon dioxide onsite or
offsite;
``(D) transport captured carbon dioxide via an
onsite or offsite dedicate pipeline, or shared
pipeline, to permanent storage;
``(E) co-produce carbon-free fuel, including
hydrogen or ammonia, that is used as fuel onsite or
offsite; and
``(F) incorporate direct air capture technology,
provided that the captured carbon dioxide is combined
with the primary stream of carbon dioxide captured at
the plant; and
``(3) eligible projects may not buy carbon dioxide offsets
for carbon dioxide emissions from routine operations, other
than offsets directly gained through the project's fuel supply
chain.
``(d) Program Implementation.--In implementing the program
established under subsection (b), the Secretary shall--
``(1) make grants for project concept studies;
``(2) provide an opportunity for persons who have
successfully completed a project concept study using a grant
provided pursuant to paragraph (1) to enter into cooperative
agreements for continuing Federal financial assistance for the
subsequent phases of an eligible project;
``(3) structure the program to allow grant recipients for
eligible projects to move without time lags between the project
concept study phase and project development phase;
``(4) recognize eligible projects as projects meeting the
requirements of section 1703(a)(1);
``(5) during the project development phase, based on
satisfactory progress towards a final investment decision and
financial need, make one or more conditional commitments to one
or more incentives that will increase the likelihood of
commercial financing, construction, and successful operation of
the eligible project, including--
``(A) construction cost-sharing, including
acquisition of additional surface and subsurface
rights;
``(B) start-up cost-sharing;
``(C) a financially backed completion guarantee;
``(D) a financially backed performance guarantee;
``(E) financially backed operating contracts for
differences;
``(F) a loan guarantee;
``(G) indemnification for third-party claims
against the eligible project and its asset owners,
which are associated with a carbon dioxide storage site
that has been certified as safely closed by the State
with jurisdiction over the associated injection wells,
as long as Federal indemnification does not substitute
for indemnification or insurance programs reasonably
available from third-party insurers; and
``(H) financial reserves or fees to support
eligible projects acquiring insurance;
``(6) ensure close coordination and substantial information
sharing between the offices of the Department that are
administering such program and title XVII of this Act;
``(7) assess the economics, performance, and risks
associated with each eligible project to provide reasonable
assurances that the sum of incentives provided by the
Department--
``(A) are adequate to give eligible projects an
opportunity to attract commercial financing; and
``(B) do not over incentivize the eligible project;
``(8) establish one or more trust funds to hold the Federal
funds associated with the program; and
``(9) deposit amounts made available to carry out the
program into the trust funds established pursuant to paragraph
(8) into the program trust within 90 days of receipt.
``(e) Expenditures.--Amounts in the trust funds established
pursuant to subsection (d)(8) shall be available, without further
appropriation, to carry out the program established under subsection
(b).
``(f) Cost-Sharing.--
``(1) Project concept studies.--The Secretary may provide
grants of up to $5,000,000 for project concept studies per
eligible project.
``(2) Cost sharing for project development phase.--The
Secretary shall require successful applicants of eligible
projects to provide 10 percent non-Federal cost-share for costs
incurred for activities during the project development phase.
``(3) Cost sharing for construction phase.--The Secretary
shall determine the non-Federal cost-sharing for the
construction phase of each eligible project based on project
need, and the amount of Federal construction-related incentives
provided, under this program and any construction-related
Department loan guarantees, shall not exceed the amount
specified in section 1702(c).
``(4) Loan guarantee program fees.--Fees paid pursuant to
section 1702(h) are considered an allowable expense of funds
made available for the program established under subsection
(b).
``(5) Tax credits.--Federal tax credits shall not count
against the maximum non-Federal cost-sharing provisions of this
section.
``(g) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary for grants for project concept studies,
and for administrative expenses for the program established under
subsection (b), $300,000,000 to remain available until expended.''.
(b) Table of Contents.--The table of contents for the Energy Policy
Act of 2005 is amended by adding after the item relating to section
969D the following:
``Sec. 970. Net-negative carbon dioxide baseload power development and
commercialization program.''.
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