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Reported to Senate (09/25/2019)

 
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[S. 1685 Reported in Senate (RS)]

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                                                       Calendar No. 221
116th CONGRESS
  1st Session
                                S. 1685

                          [Report No. 116-118]

   To require the Secretary of Energy to establish a program for the 
    research, development, and demonstration of commercially viable 
  technologies for the capture of carbon dioxide produced during the 
               generation of natural gas-generated power.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                 May 23 (legislative day, May 22), 2019

 Mr. Cornyn (for himself, Mr. Cassidy, Mr. Coons, Ms. Sinema, and Mr. 
   Gardner) introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

                           September 25, 2019

              Reported by Ms. Murkowski, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
   To require the Secretary of Energy to establish a program for the 
    research, development, and demonstration of commercially viable 
  technologies for the capture of carbon dioxide produced during the 
               generation of natural gas-generated power.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Launching Energy 
Advancement and Development through Innovations for Natural Gas Act of 
2019''.</DELETED>

<DELETED>SEC. 2. NATURAL GAS CARBON CAPTURE RESEARCH, DEVELOPMENT, AND 
              DEMONSTRATION PROGRAM.</DELETED>

<DELETED>    (a) In General.--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:</DELETED>

<DELETED>``SEC. 969. NATURAL GAS CARBON CAPTURE RESEARCH, DEVELOPMENT, 
              AND DEMONSTRATION PROGRAM.</DELETED>

<DELETED>    ``(a) Definitions.--In this section:</DELETED>
        <DELETED>    ``(1) Eligible entity.--The term `eligible entity' 
        means an entity that documents to the satisfaction of the 
        Secretary that--</DELETED>
                <DELETED>    ``(A) the entity is financially 
                responsible; and</DELETED>
                <DELETED>    ``(B) the entity will provide sufficient 
                information to the Secretary to enable the Secretary to 
                ensure that any funds awarded to the entity are spent 
                efficiently and effectively.</DELETED>
        <DELETED>    ``(2) Natural gas.--The term `natural gas' means 
        any fuel consisting in whole or in part of--</DELETED>
                <DELETED>    ``(A) natural gas;</DELETED>
                <DELETED>    ``(B) liquid petroleum gas;</DELETED>
                <DELETED>    ``(C) synthetic gas derived from petroleum 
                or natural gas liquids;</DELETED>
                <DELETED>    ``(D) any mixture of natural gas and 
                synthetic gas; or</DELETED>
                <DELETED>    ``(E) any product derived directly from 
                natural gas, including hydrogen.</DELETED>
        <DELETED>    ``(3) Natural gas-generated power.--The term 
        `natural gas-generated power' means electric energy generated 
        through the use of natural gas.</DELETED>
        <DELETED>    ``(4) Program.--The term `program' means the 
        program established under subsection (b)(1).</DELETED>
        <DELETED>    ``(5) Qualifying electric generation facility.--
        </DELETED>
                <DELETED>    ``(A) In general.--The term `qualifying 
                electric generation facility' means a facility that 
                generates electric energy using natural gas as the 
                fuel.</DELETED>
                <DELETED>    ``(B) Inclusions.--The term `qualifying 
                electric generation facility' includes--</DELETED>
                        <DELETED>    ``(i) a traditional natural gas 
                        plant;</DELETED>
                        <DELETED>    ``(ii) a simple cycle 
                        plant;</DELETED>
                        <DELETED>    ``(iii) a combined cycle 
                        plant;</DELETED>
                        <DELETED>    ``(iv) a combined heat and power 
                        plant; or</DELETED>
                        <DELETED>    ``(v) any other facility that uses 
                        natural gas as the fuel for generating electric 
                        energy.</DELETED>
        <DELETED>    ``(6) Qualifying technology.--The term `qualifying 
        technology' means any commercially viable technology, as 
        determined by the Secretary, for the capture of carbon dioxide 
        produced during the generation of natural gas-generated 
        power.</DELETED>
<DELETED>    ``(b) Establishment of Research, Development, and 
Demonstration Program.--</DELETED>
        <DELETED>    ``(1) In general.--The Secretary shall establish a 
        program of research, development, and demonstration of 
        qualifying technologies for use by qualifying electric 
        generation facilities.</DELETED>
        <DELETED>    ``(2) Objectives.--The objectives of the program 
        shall be--</DELETED>
                <DELETED>    ``(A) to identify opportunities to 
                accelerate the development and commercial applications 
                of qualifying technologies to reduce the quantity of 
                carbon dioxide emissions released from qualifying 
                electric generation facilities;</DELETED>
                <DELETED>    ``(B) to enter into cooperative agreements 
                with eligible entities to expedite and carry out 
                demonstration projects (including pilot projects) for 
                qualifying technologies for use by qualifying electric 
                generation facilities to demonstrate the technical 
                feasibility and economic potential of those qualifying 
                technologies for commercial deployment; and</DELETED>
                <DELETED>    ``(C) to identify any barriers to the 
                commercial deployment of any qualifying technologies 
                under development.</DELETED>
        <DELETED>    ``(3) Participation of national laboratories, 
        universities, and research facilities.--The program may include 
        the participation of--</DELETED>
                <DELETED>    ``(A) National Laboratories;</DELETED>
                <DELETED>    ``(B) institutions of higher 
                education;</DELETED>
                <DELETED>    ``(C) research facilities; or</DELETED>
                <DELETED>    ``(D) other appropriate 
                entities.</DELETED>
        <DELETED>    ``(4) Cooperative agreements.--</DELETED>
                <DELETED>    ``(A) In general.--In carrying out the 
                program, the Secretary may enter into cooperative 
                agreements with eligible entities to carry out 
                research, development, and demonstration projects for 
                qualifying technologies.</DELETED>
                <DELETED>    ``(B) Applications; proposals.--An 
                eligible entity desiring to enter into a cooperative 
                agreement under this paragraph shall submit to the 
                Secretary an application at such time, in such manner, 
                and containing such information as the Secretary may 
                require.</DELETED>
<DELETED>    ``(c) Carbon Capture Facilities Demonstration Program.--
</DELETED>
        <DELETED>    ``(1) Establishment.--As part of the program, the 
        Secretary shall establish a demonstration program under which 
        the Secretary shall enter into cooperative agreements with 
        eligible entities for demonstration or pilot projects to 
        license, permit, construct, and operate, by not later than 
        September 30, 2025, three or more facilities to capture carbon 
        dioxide from qualifying electric generation 
        facilities.</DELETED>
        <DELETED>    ``(2) Goals.--Each demonstration or pilot project 
        under the demonstration program shall--</DELETED>
                <DELETED>    ``(A) be designed to further the 
                development of qualifying technologies that may be used 
                by a qualifying electric generation facility;</DELETED>
                <DELETED>    ``(B) be financed in part by the private 
                sector;</DELETED>
                <DELETED>    ``(C) if necessary, secure agreements for 
                the offtake of the majority of the carbon dioxide 
                emissions captured by qualifying technologies during 
                the project; and</DELETED>
                <DELETED>    ``(D) support energy production in the 
                United States.</DELETED>
        <DELETED>    ``(3) Request for applications.--Not later than 
        120 days after the date of enactment of this Act, the Secretary 
        shall solicit applications for cooperative agreements for 
        projects--</DELETED>
                <DELETED>    ``(A) to demonstrate qualifying 
                technologies at three or more qualifying electric 
                generation facilities;</DELETED>
                <DELETED>    ``(B) to obtain any license or permit from 
                a State or Federal agency that is necessary for the 
                construction of three or more facilities to capture 
                carbon dioxide from a qualifying electric generation 
                facility; and</DELETED>
                <DELETED>    ``(C) to construct and operate three or 
                more facilities to capture carbon dioxide from a 
                qualifying electric generation facility.</DELETED>
        <DELETED>    ``(4) Review of applications.--In reviewing 
        applications submitted under paragraph (3), the Secretary, to 
        the maximum extent practicable, shall--</DELETED>
                <DELETED>    ``(A) ensure a broad geographic 
                distribution of project sites;</DELETED>
                <DELETED>    ``(B) ensure that a broad selection of 
                qualifying electric generation facilities are 
                represented;</DELETED>
                <DELETED>    ``(C) ensure that a broad selection of 
                qualifying technologies are represented;</DELETED>
                <DELETED>    ``(D) require information and knowledge 
                gained by each participant in the demonstration program 
                to be transferred and shared among--</DELETED>
                        <DELETED>    ``(i) all participants in the 
                        demonstration program; and</DELETED>
                        <DELETED>    ``(ii) other interested parties; 
                        and</DELETED>
                <DELETED>    ``(E) leverage existing--</DELETED>
                        <DELETED>    ``(i) public-private partnerships; 
                        and</DELETED>
                        <DELETED>    ``(ii) Federal 
                        resources.</DELETED>
<DELETED>    ``(d) Cost Sharing.--In carrying out this section, the 
Secretary shall require cost sharing in accordance with section 
988.</DELETED>
<DELETED>    ``(e) Fee Title.--The Secretary may vest fee title or 
other property interests acquired under cooperative agreements entered 
into under subsection (b)(4) in any entity, including the United 
States.</DELETED>
<DELETED>    ``(f) Report.--Not later than 180 days after the date on 
which the Secretary solicits applications under subsection (c)(3), and 
annually thereafter, the Secretary shall submit to the appropriate 
committees of jurisdiction of the Senate and the House of 
Representatives a report that--</DELETED>
        <DELETED>    ``(1) with respect to subsections (b) and (c), 
        includes recommendations for any legislative changes needed to 
        improve the implementation of those subsections;</DELETED>
        <DELETED>    ``(2) with respect to subsection (b), includes--
        </DELETED>
                <DELETED>    ``(A) a detailed description of how 
                applications for cooperative agreements under paragraph 
                (4) of that subsection will be solicited and evaluated, 
                including--</DELETED>
                        <DELETED>    ``(i) a list of any activities 
                        carried out by the Secretary to solicit or 
                        evaluate applications; and</DELETED>
                        <DELETED>    ``(ii) a process for ensuring that 
                        any projects carried out under a cooperative 
                        agreement are designed to result in the 
                        development or demonstration of qualifying 
                        technologies;</DELETED>
                <DELETED>    ``(B) a detailed list of technical 
                milestones for each qualifying technology pursued under 
                that subsection;</DELETED>
                <DELETED>    ``(C) a detailed description of how each 
                project carried out pursuant to a cooperative agreement 
                under paragraph (4) of that subsection will meet the 
                milestones for carbon capture described in the 
                September 2017 report of the Office of Fossil Energy 
                entitled `Accelerating Breakthrough Innovation in 
                Carbon Capture, Utilization, and Storage'; 
                and</DELETED>
                <DELETED>    ``(D) an affirmation from the Secretary 
                that all recipients of funding under that subsection 
                are eligible entities; and</DELETED>
        <DELETED>    ``(3) with respect to the demonstration program 
        established under subsection (c), includes--</DELETED>
                <DELETED>    ``(A) an estimate of the cost of 
                licensing, permitting, constructing, and operating each 
                carbon capture facility expected to be constructed 
                under that demonstration program;</DELETED>
                <DELETED>    ``(B) a schedule for--</DELETED>
                        <DELETED>    ``(i) obtaining any license or 
                        permit necessary to construct and operate each 
                        carbon capture facility expected to be 
                        constructed; and</DELETED>
                        <DELETED>    ``(ii) constructing each facility; 
                        and</DELETED>
                <DELETED>    ``(C) an estimate of any financial 
                assistance, compensation, or incentives proposed to be 
                paid by the host State, Indian Tribe, or local 
                government with respect to each facility.</DELETED>
<DELETED>    ``(g) Funding.--For each of fiscal years 2020 through 
2025, out of any amounts appropriated to the Department to carry out 
fossil energy research and development activities and not otherwise 
obligated, the Secretary may use to carry out this section not more 
than $50,000,000.''.</DELETED>
<DELETED>    (b) Clerical Amendment.--The table of contents for the 
Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 600) is amended 
by inserting after the item relating to section 968 the 
following:</DELETED>

<DELETED>``Sec. 969. Natural gas carbon capture research, development, 
                            and demonstration program.''.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Launching Energy Advancement and 
Development through Innovations for Natural Gas Act of 2019''.

SEC. 2. NATURAL GAS CARBON CAPTURE RESEARCH, DEVELOPMENT, AND 
              DEMONSTRATION PROGRAM.

    (a) In General.--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:

``SEC. 969. NATURAL GAS CARBON CAPTURE RESEARCH, DEVELOPMENT, AND 
              DEMONSTRATION PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Commercially viable technology.--The term 
        `commercially viable technology' means technology that has the 
        potential to be successfully deployed and compete effectively 
        in the marketplace at an appropriate size or scale.
            ``(2) Eligible entity.--The term `eligible entity' means an 
        entity that documents to the satisfaction of the Secretary 
        that--
                    ``(A) the entity is financially responsible; and
                    ``(B) the entity will provide sufficient 
                information to the Secretary to enable the Secretary to 
                ensure that any funds awarded to the entity are spent 
                efficiently and effectively.
            ``(3) Natural gas.--The term `natural gas' means any fuel 
        consisting in whole or in part of--
                    ``(A) natural gas;
                    ``(B) liquid petroleum gas;
                    ``(C) synthetic gas derived from petroleum or 
                natural gas liquids;
                    ``(D) any mixture of natural gas and synthetic gas; 
                or
                    ``(E) biomethane.
            ``(4) Natural gas-generated power.--The term `natural gas-
        generated power' means--
                    ``(A) electric energy generated through the use of 
                natural gas; and
                    ``(B) the generation of hydrogen from natural gas.
            ``(5) Program.--The term `program' means the program 
        established under subsection (b)(1).
            ``(6) Qualifying electric generation facility.--
                    ``(A) In general.--The term `qualifying electric 
                generation facility' means a facility that generates 
                electric energy using natural gas as the fuel.
                    ``(B) Inclusions.--The term `qualifying electric 
                generation facility' includes a new or existing--
                            ``(i) simple cycle plant;
                            ``(ii) combined cycle plant;
                            ``(iii) combined heat and power plant;
                            ``(iv) steam methane reformer that produces 
                        hydrogen from natural gas for use in the 
                        production of electric energy; or
                            ``(v) facility that uses natural gas as the 
                        fuel for generating electric energy.
            ``(7) Qualifying technology.--The term `qualifying 
        technology' means any commercially viable technology, as 
        determined by the Secretary, for the capture of carbon dioxide 
        produced during the generation of natural gas-generated power.
    ``(b) Establishment of Research, Development, and Demonstration 
Program.--
            ``(1) In general.--The Secretary shall establish a program 
        of research, development, and demonstration of qualifying 
        technologies for use by qualifying electric generation 
        facilities.
            ``(2) Objectives.--The objectives of the program shall be--
                    ``(A) to identify opportunities to accelerate the 
                development and commercial applications of qualifying 
                technologies to reduce the quantity of carbon dioxide 
                emissions released from qualifying electric generation 
                facilities;
                    ``(B) to enter into cooperative agreements with 
                eligible entities to expedite and carry out 
                demonstration projects (including pilot projects) for 
                qualifying technologies for use by qualifying electric 
                generation facilities to demonstrate the technical and 
                commercial viability of those qualifying technologies 
                for commercial deployment; and
                    ``(C) to identify any barriers to the commercial 
                deployment of any qualifying technologies under 
                development.
            ``(3) Participation of national laboratories, universities, 
        and research facilities.--The program may include the 
        participation of--
                    ``(A) National Laboratories;
                    ``(B) institutions of higher education;
                    ``(C) research facilities; or
                    ``(D) other appropriate entities.
            ``(4) Cooperative agreements.--
                    ``(A) In general.--In carrying out the program, the 
                Secretary may enter into cooperative agreements with 
                eligible entities to carry out research, development, 
                and demonstration projects for qualifying technologies.
                    ``(B) Applications; proposals.--An eligible entity 
                desiring to enter into a cooperative agreement under 
                this paragraph shall submit to the Secretary an 
                application at such time, in such manner, and 
                containing such information as the Secretary may 
                require.
    ``(c) Carbon Capture Facilities Demonstration Program.--
            ``(1) Establishment.--As part of the program, the Secretary 
        shall establish a demonstration program under which the 
        Secretary shall enter into cooperative agreements with eligible 
        entities for demonstration or pilot projects to license, 
        permit, construct, and operate, by not later than September 30, 
        2025, 3 or more facilities to capture carbon dioxide from 
        qualifying electric generation facilities.
            ``(2) Goals.--Each demonstration or pilot project under the 
        demonstration program shall--
                    ``(A) be designed to further the development of 
                qualifying technologies that may be used by a 
                qualifying electric generation facility;
                    ``(B) be financed in part by the private sector;
                    ``(C) if necessary, secure agreements for the 
                offtake of the majority of the carbon dioxide emissions 
                captured by qualifying technologies during the project; 
                and
                    ``(D) support energy production in the United 
                States.
            ``(3) Request for applications.--Not later than 120 days 
        after the date of enactment of this Act, the Secretary shall 
        solicit applications for cooperative agreements for projects--
                    ``(A) to demonstrate qualifying technologies at 3 
                or more qualifying electric generation facilities;
                    ``(B) to obtain any license or permit from a State 
                or Federal agency that is necessary for the 
                construction of 3 or more facilities to capture carbon 
                dioxide from a qualifying electric generation facility; 
                and
                    ``(C) to construct and operate 3 or more facilities 
                to capture carbon dioxide from a qualifying electric 
                generation facility.
            ``(4) Review of applications.--In reviewing applications 
        submitted under paragraph (3), the Secretary, to the maximum 
        extent practicable, shall--
                    ``(A) ensure a broad geographic distribution of 
                project sites;
                    ``(B) ensure that a broad selection of qualifying 
                electric generation facilities are represented;
                    ``(C) ensure that a broad selection of qualifying 
                technologies are represented; and
                    ``(D) leverage existing--
                            ``(i) public-private partnerships; and
                            ``(ii) Federal resources.
    ``(d) Cost Sharing.--In carrying out this section, the Secretary 
shall require cost sharing in accordance with section 988.
    ``(e) Fee Title.--The Secretary may vest fee title or other 
property interests acquired under cooperative agreements entered into 
under subsection (b)(4) in any entity, including the United States.
    ``(f) Report.--Not later than 180 days after the date on which the 
Secretary solicits applications under subsection (c)(3), and annually 
thereafter, the Secretary shall submit to the appropriate committees of 
jurisdiction of the Senate and the House of Representatives a report 
that--
            ``(1) with respect to subsections (b) and (c), includes 
        recommendations for any legislative changes needed to improve 
        the implementation of those subsections;
            ``(2) with respect to subsection (b), includes--
                    ``(A) a detailed description of how applications 
                for cooperative agreements under paragraph (4) of that 
                subsection will be solicited and evaluated, including--
                            ``(i) a list of any activities carried out 
                        by the Secretary to solicit or evaluate 
                        applications; and
                            ``(ii) a process for ensuring that any 
                        projects carried out under a cooperative 
                        agreement are designed to result in the 
                        development or demonstration of qualifying 
                        technologies;
                    ``(B) a detailed list of technical milestones for 
                each qualifying technology pursued under that 
                subsection;
                    ``(C) a detailed description of how each project 
                carried out pursuant to a cooperative agreement under 
                paragraph (4) of that subsection will meet the 
                milestones for carbon capture described in the 
                September 2017 report of the Office of Fossil Energy 
                entitled `Accelerating Breakthrough Innovation in 
                Carbon Capture, Utilization, and Storage'; and
                    ``(D) an affirmation from the Secretary that all 
                recipients of funding under that subsection are 
                eligible entities; and
            ``(3) with respect to the demonstration program established 
        under subsection (c), includes--
                    ``(A) an estimate of the cost of licensing, 
                permitting, constructing, and operating each carbon 
                capture facility expected to be constructed under that 
                demonstration program;
                    ``(B) a schedule for--
                            ``(i) obtaining any license or permit 
                        necessary to construct and operate each carbon 
                        capture facility expected to be constructed; 
                        and
                            ``(ii) constructing each facility; and
                    ``(C) an estimate of any financial assistance, 
                compensation, or incentives proposed to be paid by the 
                host State, Indian Tribe, or local government with 
                respect to each facility.
    ``(g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $50,000,000 for 
each of fiscal years 2020 through 2025.''.
    (b) Clerical Amendment.--The table of contents for the Energy 
Policy Act of 2005 (Public Law 109-58; 119 Stat. 600) is amended by 
inserting after the item relating to section 968 the following:

``Sec. 969. Natural gas carbon capture research, development, and 
                            demonstration program.''.
                                                       Calendar No. 221

116th CONGRESS

  1st Session

                                S. 1685

                          [Report No. 116-118]

_______________________________________________________________________

                                 A BILL

   To require the Secretary of Energy to establish a program for the 
    research, development, and demonstration of commercially viable 
  technologies for the capture of carbon dioxide produced during the 
               generation of natural gas-generated power.

_______________________________________________________________________

                           September 25, 2019

                       Reported with an amendment

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