[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3615 Introduced in Senate (IS)]
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118th CONGRESS
2d Session
S. 3615
To require the Secretary of Energy to remove carbon dioxide directly
from ambient air or seawater, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 18, 2024
Mr. Coons (for himself and Mr. Whitehouse) introduced the following
bill; which was read twice and referred to the Committee on Energy and
Natural Resources
_______________________________________________________________________
A BILL
To require the Secretary of Energy to remove carbon dioxide directly
from ambient air or seawater, 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 ``Federal Carbon Dioxide Removal
Leadership Act of 2024''.
SEC. 2. FEDERAL REQUIREMENT TO REMOVE CARBON DIOXIDE.
(a) Definitions.--In this section:
(1) Eligible technology.--
(A) In general.--The term ``eligible technology''
means any equipment, technique, or technology, as
determined by the Secretary, that--
(i) was placed into service after January
1, 2022; and
(ii) removes carbon dioxide directly from
ambient air or seawater.
(B) Exclusion.--The term ``eligible technology''
does not include any equipment, technique, or
technology that--
(i) removes carbon dioxide that is
deliberately released from naturally occurring
subsurface springs;
(ii) removes carbon dioxide using natural
photosynthesis, except as provided in
subparagraph (C); or
(iii) uses captured carbon dioxide in
enhanced oil recovery.
(C) Expansion of eligible technology.--
Notwithstanding subparagraph (B)(ii), any equipment,
technique, or technology that removes carbon dioxide
using gasification, pyrolysis, or sequestration of
solid, nonhazardous, and cellulosic waste materials may
be included in the term ``eligible technology'' if the
Secretary, by rule--
(i) determines that an entity that carries
out a removal project under this section is
able--
(I) to adequately monitor, report,
and verify the quantity of greenhouse
gas emissions (including direct
emissions and significant indirect
emissions), calculated on a lifecycle
basis, removed using that equipment,
technique, or technology; and
(II) to adequately mitigate the
environmental impacts (including
impacts on biodiversity, land use, and
air and water quality) associated with
that equipment, technique, or
technology; and
(ii) requires that entity to carry out the
activities described in clause (i).
(2) Lifecycle basis.--The term ``lifecycle basis'' means
the net sum of all greenhouse gas emissions (using mass values
for all greenhouse gases that are adjusted to account for their
relative global warming potential, in consultation with the
Administrator of the Environmental Protection Agency) and
removals associated with carbon dioxide removal activity from
cradle to grave, including--
(A) embodied emissions of the applicable equipment;
and
(B) any emissions associated with--
(i) energy and feedstock inputs;
(ii) the carbon dioxide removal process;
and
(iii) carbon dioxide storage, including use
and disposal of any materials or products
associated with carbon dioxide storage.
(3) Remove.--The term ``remove'', with respect to carbon
dioxide, means--
(A) to capture carbon dioxide using eligible
technology; and
(B) to permanently store that captured carbon
dioxide--
(i) in dedicated subsurface geologic
storage reported under sections 98.440 and
146.91(e) of title 40, Code of Federal
Regulations (or successor regulations);
(ii) in building materials and mineralized
carbon materials; or
(iii) using other permanent storage
methods, as determined by the Secretary.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(5) Small removal project.--The term ``small removal
project'' means a project for the removal of carbon dioxide
that removes not more than 5 percent of the net metric tons of
carbon dioxide required to be removed under subsection (b) for
the applicable fiscal year.
(b) Required Quantities.--The Secretary shall, to the extent
economically feasible as determined under subsection (c), remove--
(1) 50,000 net metric tons of carbon dioxide, calculated on
a lifecycle basis, for each of fiscal years 2024 and 2025;
(2) 500,000 net metric tons of carbon dioxide, calculated
on a lifecycle basis, for each of fiscal years 2026 through
2028;
(3) 5,000,000 net metric tons of carbon dioxide, calculated
on a lifecycle basis, for each of fiscal years 2029 through
2034; and
(4) 10,000,000 net metric tons of carbon dioxide,
calculated on a lifecycle basis, for fiscal year 2035 and each
fiscal year thereafter.
(c) Economic Feasibility.--
(1) In general.--The removal of carbon dioxide under
subsection (b) shall be considered economically feasible if
that removal can be accomplished or, in the case of a contract
under subsection (i), purchased--
(A) for each of fiscal years 2024 and 2025, at a
price per metric ton of carbon dioxide of not more than
$750 (which the Secretary may adjust for inflation);
(B) for each of fiscal years 2026 through 2028, at
a price per metric ton of carbon dioxide of not more
than $500 (which the Secretary may adjust for
inflation);
(C) for each of fiscal years 2029 through 2031, at
a price per metric ton of carbon dioxide of not more
than $300 (which the Secretary may adjust for
inflation);
(D) for each of fiscal years 2032 through 2034, at
a price per metric ton of carbon dioxide of not more
than $200 (which the Secretary may adjust for
inflation); and
(E) for fiscal year 2035 and each fiscal year
thereafter, at a price per metric ton of carbon dioxide
of not more than $150 (which the Secretary may adjust
for inflation).
(2) Inclusion of monitoring, reporting, and verification
costs.--In determining whether the removal of carbon dioxide is
considered economically feasible under paragraph (1), the price
for such removal shall include any costs associated with the
monitoring, reporting, and verification required under
subsection (g)(1).
(3) Multiyear contracts.--The removal of carbon dioxide
carried out pursuant to a contract entered into under
subsection (i) that is a multiyear contract shall be considered
economically feasible if such removal can be accomplished at
the applicable dollar amount for the first fiscal year of the
contract, as provided in paragraph (1), through the entire
length of the contract.
(d) Timing.--For each fiscal year, the Secretary shall remove the
quantity of carbon dioxide required under subsection (b) for that
fiscal year not later than 3 years after the beginning of that fiscal
year.
(e) Small Removal Project Set-Aside.--To the extent practicable, at
least 20 percent of the net metric tons of carbon dioxide required to
be removed under subsection (b) for each of fiscal years 2024 through
2034 shall be removed through small removal projects.
(f) Federal Assistance.--Funds received pursuant to a contract
entered into under subsection (i) shall not be considered Federal
assistance or otherwise affect eligibility for any Federal assistance,
including a tax incentive.
(g) Monitoring, Reporting, and Verification.--
(1) In general.--The Secretary, or an entity with which the
Secretary enters into a contract under subsection (i), shall
monitor, report, and verify the net metric tons of carbon
dioxide that the Secretary or the entity, as applicable,
removes for purposes of this section.
(2) Standards.--Not later than 1 year after the date of
enactment of this Act, the Secretary, in consultation with the
Administrator of the National Oceanic and Atmospheric
Administration, the Administrator of the Environmental
Protection Agency, the Secretary of Agriculture, and other
relevant Federal agencies, as determined by the Secretary,
shall establish standards for the monitoring, reporting, and
verification of the net metric tons of carbon dioxide removed
pursuant to this section, which shall--
(A) require the use of best available practices
used by similar carbon dioxide removal projects;
(B) ensure safe, effective, and efficient removal
of carbon dioxide;
(C) require independent, third-party verification
of carbon dioxide removal;
(D) ensure additionality, permanence, and net-
negativity of carbon dioxide removal;
(E) include criteria to determine whether the
storage of captured carbon dioxide is permanent;
(F) ensure scientifically rigorous and transparent
methods for monitoring, reporting, and verifying under
paragraph (1); and
(G) be regularly reviewed and, as necessary,
updated to account for scientific and technological
advancements.
(3) Prohibition on double counting.--Carbon dioxide that is
removed for the purpose of complying with any other greenhouse
gas emissions management program, including any foreign,
Federal, State, local, or private greenhouse gas emissions
management program, as determined by the Secretary, may not be
considered removed under subsection (b) for purposes of meeting
the requirements of that subsection.
(h) Priorities.--In carrying out removal projects pursuant to
subsection (b), the Secretary shall give priority to projects based on
the degree to which the project--
(1) minimizes the quantity of greenhouse gas emissions
released by carrying out the project;
(2) supports the commercialization of innovative removal
technologies;
(3) increases the diversity of commercially available
eligible technologies;
(4) provides for domestic job creation, with a further
preference for establishing partnerships with labor
organizations, small businesses, minority-owned businesses, and
women-owned businesses across value chains;
(5) results in economic development or economic
diversification in regions or localities that have historically
generated significant economic activity from the production,
processing, transportation, or combustion of fossil fuels,
including through the use of coal mines, fossil fuel-fired
electricity generating units, and petroleum refining
facilities;
(6) quantifies and mitigates risks from carbon dioxide
removal activities on, and provides measurable cobenefits to,
environmental justice communities, the environment,
agriculture, and public health, including by--
(A) improving local air quality, water quality, and
soil quality;
(B) minimizing land, water, and energy footprints;
and
(C) using zero-emission energy; and
(7) includes robust public engagement and community
benefits.
(i) Contracts.--
(1) In general.--The Secretary may, using a transparent and
competitive process, enter into 1 or more contracts to meet the
requirements of subsection (b).
(2) Duration.--The duration of a contract entered into
under paragraph (1) shall not exceed 15 years.
(3) Maintenance of removal commitments.--A contract entered
into under paragraph (1) shall require the entity that enters
into the contract to permanently store an additional quantity
of carbon dioxide that is equal to the quantity of carbon
dioxide that is released after permanent storage by that
entity.
(4) Limitation.--To the extent that there is a sufficient
number of entities capable of removing carbon dioxide in
accordance with this section under a contract entered into
paragraph (1), the Secretary shall ensure that no singular
entity is responsible for removing more than 25 percent of the
net metric tons of carbon dioxide required to be removed under
subsection (b) in any fiscal year.
(j) Report.--Not later than January 1, 2027, and every 2 years
thereafter, the Secretary shall submit to Congress, and make publicly
available, a report that describes the progress made in carrying out
the requirements of this section, including, with respect to the period
covered by the report--
(1) the quantities of removed carbon dioxide verified under
subsection (g)(1) and the name of each entity that provided
that verified quantity;
(2) the total price, and price per metric ton, of removing
carbon dioxide for each applicable fiscal year as required
under subsection (b);
(3) the methods used for the monitoring, reporting, and
verification required under subsection (g)(1);
(4) an assessment of how the quantities of carbon dioxide
removed under this section have affected environmental justice
communities, the environment, agriculture, and public health;
(5) information on any labor impacts and job creation
resulting from carrying out the requirements of subsection (b);
and
(6) an explanation of how the Secretary prioritized
projects under subsection (h).
(k) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 3. STUDY ON THE LONG-TERM FUTURE OF FEDERAL CARBON DIOXIDE REMOVAL
MANAGEMENT.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Secretary of Energy, in consultation with the
Administrator of the National Oceanic and Atmospheric Administration,
the Administrator of the Environmental Protection Agency, the Secretary
of Agriculture, and other relevant Federal agencies, as determined by
the Secretary of Energy, shall submit to the Committee on Energy and
Natural Resources of the Senate and the Committee on Energy and
Commerce of the House of Representatives a report that evaluates and
makes recommendations for potential program design elements and
financing options for a Federal carbon dioxide removal offtake program
that can achieve carbon dioxide removal from the atmosphere and the
oceans at a gigaton scale annually by January 1, 2050.
(b) Contents.--The report under subsection (a) shall include
consideration of potential management and organizational structures for
the program described in that subsection, including--
(1) a government-sponsored enterprise;
(2) a government corporation;
(3) a program office within the Department of Energy or
another Federal agency; and
(4) a contracted service provider.
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