42 U.S.C. § 16298d — Carbon removal

Page 8857 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 16298d (2) Limitations (A) In general The term of any employee appointed under paragraph (1)(A) shall not exceed 3 years. (B) Full-time employees Not more than 10 full-time employees ap- pointed under paragraph (1)(A) may be em- ployed at the National Energy Technology Laboratory at any given time. (b) Laboratory-directed research and develop- ment (1) In general Beginning in fiscal year 2021, the National Energy Technology Laboratory shall be eligi- ble for laboratory-directed research and devel- opment funding. (2) Authorization of funding (A) In general Each fiscal year, of funds made available to the National Energy Technology Labora- tory, the Secretary may deposit an amount, not to exceed the rate made available to the National Laboratories for laboratory-di- rected research and development, in a spe- cial fund account. (B) Use Amounts in the account under subpara- graph (A) shall only be available for labora- tory-directed research and development. (C) Requirements The account under subparagraph (A)— (i) shall be administered by the Sec- retary; (ii) shall be available without fiscal year limitation; and (iii) shall not be subject to appropria- tion. (3) Requirement The Director shall carry out laboratory-di- rected research and development activities at the National Energy Technology Laboratory consistent with Department of Energy Order 413.2C, dated August 2, 2018 (or a successor order). (4) Annual report on use of authority Annually, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Science, Space, and Technology of the House of Rep- resentatives a report on the use of the author- ity provided under this subsection during the preceding fiscal year. (c) Laboratory operations The Secretary shall delegate human resources operations of the National Energy Technology Laboratory to the Director to assist in carrying out this section. (d) Review Not later than 2 years after December 27, 2020, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Science, Space, and Tech- nology of the House of Representatives a report assessing the management and research activi- ties of the National Energy Technology Labora- tory, which shall include— (1) an assessment of the quality of science and research at the National Energy Tech- nology Laboratory, relative to similar work at other National Laboratories; (2) a review of the effectiveness of authori- ties provided in subsections (a) and (b); and (3) recommendations for policy changes within the Department and legislative changes to provide the National Energy Technology Laboratory with the necessary tools and re- sources to advance the research mission of the National Energy Technology Laboratory. (Pub. L. 109–58, title IX, § 969C, as added Pub. L. 116–260, div. Z, title IV, § 4006(a), Dec. 27, 2020, 134 Stat. 2544.) § 16298d. Carbon removal (a) Establishment The Secretary, in coordination with the heads of appropriate Federal agencies, including the Secretary of Agriculture, shall establish a re- search, development, and demonstration pro- gram (referred to in this section as the ‘‘pro- gram’’) to test, validate, or improve tech- nologies and strategies to remove carbon dioxide from the atmosphere on a large scale. (b) Intraagency coordination The Secretary shall ensure that the program includes the coordinated participation of the Of- fice of Fossil Energy, the Office of Science, and the Office of Energy Efficiency and Renewable Energy. (c) Program activities The program may include research, develop- ment, and demonstration activities relating to— (1) direct air capture and storage tech- nologies; (2) bioenergy with carbon capture and se- questration; (3) enhanced geological weathering; (4) agricultural practices; (5) forest management and afforestation; and (6) planned or managed carbon sinks, includ- ing natural and artificial. (d) Requirements In developing and identifying carbon removal technologies and strategies under the program, the Secretary shall consider— (1) land use changes, including impacts on natural and managed ecosystems; (2) ocean acidification; (3) net greenhouse gas emissions; (4) commercial viability; (5) potential for near-term impact; (6) potential for carbon reductions on a gigaton scale; and (7) economic cobenefits. (e) Air capture prize competitions (1) Definitions In this subsection: (A) Dilute media The term ‘‘dilute media’’ means media in which the concentration of carbon dioxide is less than 1 percent by volume. Page 8858 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 16298d (B) Prize competition The term ‘‘prize competition’’ means the competitive technology prize competition established under paragraph (2). (C) Qualified carbon dioxide (i) In general The term ‘‘qualified carbon dioxide’’ means any carbon dioxide that— (I) is captured directly from the ambi- ent air; and (II) is measured at the source of cap- ture and verified at the point of disposal, injection, or utilization. (ii) Inclusion The term ‘‘qualified carbon dioxide’’ in- cludes the initial deposit of captured car- bon dioxide used as a tertiary injectant. (iii) Exclusion The term ‘‘qualified carbon dioxide’’ does not include carbon dioxide that is re- captured, recycled, and reinjected as part of the enhanced oil and natural gas recov- ery process. (D) Qualified direct air capture facility (i) In general The term ‘‘qualified direct air capture facility’’ means any facility that— (I) uses carbon capture equipment to capture carbon dioxide directly from the ambient air; and (II) captures more than 50,000 metric tons of qualified carbon dioxide annu- ally. (ii) Exclusion The term ‘‘qualified direct air capture facility’’ does not include any facility that captures carbon dioxide— (I) that is deliberately released from naturally occurring subsurface springs; or (II) using natural photosynthesis. (2) Establishment Not later than 2 years after December 27, 2020, the Secretary, in consultation with the Administrator of the Environmental Protec- tion Agency, shall establish as part of the pro- gram a competitive technology prize competi- tion to award prizes for— (A) precommercial carbon dioxide capture from dilute media; and (B) commercial applications of direct air capture technologies. (3) Requirements In carrying out this subsection, the Sec- retary, in accordance with section 3719 of title 15, shall develop requirements for— (A) the prize competition process; and (B) monitoring and verification procedures for projects selected to receive a prize under the prize competition. (4) Eligible projects (A) Precommercial air capture projects With respect to projects described in para- graph (2)(A), to be eligible to be awarded a prize under the prize competition, a project shall— (i) meet minimum performance stand- ards set by the Secretary; (ii) meet minimum levels set by the Sec- retary for the capture of carbon dioxide from dilute media; and (iii) demonstrate in the application of the project for a prize— (I) a design for a promising carbon cap- ture technology that will— (aa) be operated on a demonstration scale; and (bb) have the potential to achieve significant reduction in the level of carbon dioxide in the atmosphere; (II) a successful bench-scale dem- onstration of a carbon capture tech- nology; or (III) an operational carbon capture technology on a commercial scale. (B) Commercial direct air capture projects (i) In general With respect to projects described in paragraph (2)(B), the Secretary shall award prizes under the prize competition to qualified direct air capture facilities for metric tons of qualified carbon dioxide captured and verified at the point of dis- posal, injection, or utilization. (ii) Amount of award The amount of the award per metric ton under clause (i)— (I) shall be equal for each qualified di- rect air capture facility selected for a prize under the prize competition; and (II) shall be determined by the Sec- retary and in any case shall not exceed— (aa) $180 for qualified carbon dioxide captured and stored in saline storage formations; (bb) a lesser amount, as determined by the Secretary, for qualified carbon dioxide captured and stored in con- junction with enhanced oil recovery operations; or (cc) a lesser amount, as determined by the Secretary, for qualified carbon dioxide captured and utilized in any activity consistent with section 45Q(f)(5) of title 26. (iii) Requirement The Secretary shall make awards under this subparagraph until appropriated funds are expended. (f) Direct air capture test center (1) In general Not later than 2 years after December 27, 2020, the Secretary shall award grants to 1 or more entities for the operation of 1 or more test centers (referred to in this subsection as a ‘‘Center’’) to provide distinct testing capa- bilities for innovative direct air capture and storage technologies. (2) Purpose Each Center shall— (A) advance research, development, dem- onstration, and commercial application of direct air capture and storage technologies; Page 8859 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 16298d (B) support large-scale pilot and dem- onstration projects and test direct air cap- ture and storage technologies; and (C) develop front-end engineering design and economic analysis. (3) Selection (A) In general The Secretary shall select entities to re- ceive grants under this subsection according to such criteria as the Secretary may de- velop. (B) Competitive basis The Secretary shall select entities to re- ceive grants under this subsection on a com- petitive basis. (C) Priority criteria In selecting entities to receive grants under this subsection, the Secretary shall prioritize consideration of applicants that— (i) have access to existing or planned re- search facilities for direct air capture and storage technologies; (ii) are institutions of higher education with established expertise in engineering for direct air capture and storage tech- nologies, or partnerships with such insti- tutions of higher education; or (iii) have access to existing research and test facilities for bulk materials design and testing, component design and testing, or professional engineering design. (4) Formula for awarding grants The Secretary may develop a formula for awarding grants under this subsection. (5) Schedule (A) In general Each grant awarded under this subsection shall be for a term of not more than 5 years, subject to the availability of appropriations. (B) Renewal The Secretary may renew a grant for 1 or more additional 5-year terms, subject to a competitive merit review and the avail- ability of appropriations. (6) Termination To the extent otherwise authorized by law, the Secretary may eliminate, and terminate grant funding under this subsection for, a Cen- ter during any 5-year term described in para- graph (5) if the Secretary determines that the Center is underperforming. (g) Pilot and demonstration projects In supporting the technology development ac- tivities under this section, the Secretary is en- couraged to support carbon removal pilot and demonstration projects, including— (1) pilot projects that test direct air capture systems capable of capturing 10 to 100 tonnes of carbon oxides per year to provide data for demonstration-scale projects; and (2) direct air capture demonstration projects capable of capturing greater than 1,000 tonnes of carbon oxides per year. (h) Intraagency collaboration In carrying out the program, the Secretary shall encourage and promote collaborations among relevant offices and agencies within the Department. (i) Accounting The Secretary shall collaborate with the Ad- ministrator of the Environmental Protection Agency and the heads of other relevant Federal agencies to develop and improve accounting frameworks and tools to accurately measure carbon removal and sequestration methods and technologies. (j) Regional direct air capture hubs (1) Definitions In this subsection: (A) Eligible project The term ‘‘eligible project’’ means a direct air capture project or a component project of a regional direct air capture hub. (B) Regional direct air capture hub The term ‘‘regional direct air capture hub’’ means a network of direct air capture projects, potential carbon dioxide utilization off-takers, connective carbon dioxide trans- port infrastructure, subsurface resources, and sequestration infrastructure located within a region. (2) Establishment of program (A) In general The Secretary shall establish a program under which the Secretary shall provide funding for eligible projects that contribute to the development of 4 regional direct air capture hubs described in subparagraph (B). (B) Regional direct air capture hubs Each of the 4 regional direct air capture hubs developed under the program under subparagraph (A) shall be a regional direct air capture hub that— (i) facilitates the deployment of direct air capture projects; (ii) has the capacity to capture and se- quester, utilize, or sequester and utilize at least 1,000,000 metric tons of carbon diox- ide from the atmosphere annually from a single unit or multiple interconnected units; (iii) demonstrates the capture, proc- essing, delivery, and sequestration or end- use of captured carbon; and (iv) could be developed into a regional or interregional carbon network to facilitate sequestration or carbon utilization. (3) Selection of projects (A) Solicitation of proposals (i) In general Not later than 180 days after November 15, 2021, the Secretary shall solicit applica- tions for funding for eligible projects. (ii) Additional solicitations The Secretary shall solicit applications for funding for eligible projects on a recur- ring basis after the first round of applica- tions is received under clause (i) until all amounts appropriated to carry out this subsection are expended. Page 8860 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 16298d (B) Selection of projects for the development of regional direct air capture hubs Not later than 3 years after the date of the deadline for the submission of proposals under subparagraph (A)(i), the Secretary shall select eligible projects described in paragraph (2)(A). (C) Criteria The Secretary shall select eligible projects under subparagraph (B) using the following criteria: (i) Carbon intensity of local industry To the maximum extent practicable, each eligible project shall be located in a region with— (I) existing carbon-intensive fuel pro- duction or industrial capacity; or (II) carbon-intensive fuel production or industrial capacity that has retired or closed in the preceding 10 years. (ii) Geographic diversity To the maximum extent practicable, eli- gible projects shall contribute to the de- velopment of regional direct air capture hubs located in different regions of the United States. (iii) Carbon potential To the maximum extent practicable, eli- gible projects shall contribute to the de- velopment of regional direct air capture hubs located in regions with high potential for carbon sequestration or utilization. (iv) Hubs in fossil-producing regions To the maximum extent practicable, eli- gible projects shall contribute to the de- velopment of at least 2 regional direct air capture hubs located in economically dis- tressed communities in the regions of the United States with high levels of coal, oil, or natural gas resources. (v) Scalability The Secretary shall give priority to eli- gible projects that, as compared to other eligible projects, will contribute to the de- velopment of regional direct air capture hubs with larger initial capacity, greater potential for expansion, and lower levelized cost per ton of carbon dioxide re- moved from the atmosphere. (vi) Employment The Secretary shall give priority to eli- gible projects that are likely to create op- portunities for skilled training and long- term employment to the greatest number of residents of the region. (vii) Additional criteria The Secretary may take into consider- ation other criteria that, in the judgment of the Secretary, are necessary or appro- priate to carry out this subsection. (D) Coordination To the maximum extent practicable, in carrying out the program under this sub- section, the Secretary shall take into ac- count and coordinate with activities of the carbon capture technology program estab- lished under section 16292(b)(1) of this title, the carbon storage validation and testing program established under section 16293(b)(1) of this title, and the CIFIA program estab- lished under section 16372(a) of this title such that funding from each of the programs is leveraged to contribute toward the devel- opment of integrated regional and inter- regional carbon capture, removal, transport, sequestration, and utilization networks. (E) Funding of eligible projects The Secretary may make grants to, or enter into cooperative agreements or con- tracts with, each eligible project selected under subparagraph (B) to accelerate com- mercialization of, and demonstrate the re- moval, processing, transport, sequestration, and utilization of, carbon dioxide captured from the atmosphere. (4) Authorization of appropriations There is authorized to be appropriated to the Secretary to carry out this subsection $3,500,000,000 for the period of fiscal years 2022 through 2026, to remain available until ex- pended. (k) Authorization of appropriations There are authorized to be appropriated to the Secretary to carry out this section— (1) $175,000,000 for fiscal year 2021, of which— (A) $15,000,000 shall be used to carry out subsection (e)(2)(A), to remain available until expended; and (B) $100,000,000 shall be used to carry out subsection (e)(2)(B), to remain available until expended; (2) $63,500,000 for fiscal year 2022; (3) $66,150,000 for fiscal year 2023; (4) $69,458,000 for fiscal year 2024; and (5) $72,930,000 for fiscal year 2025. (Pub. L. 109–58, title IX, § 969D, as added Pub. L. 116–260, div. Z, title V, § 5001(a), Dec. 27, 2020, 134 Stat. 2547; amended Pub. L. 117–58, div. D, title III, § 40308(a), Nov. 15, 2021, 135 Stat. 1003.) Editorial Notes AMENDMENTS 2021—Subsecs. (j), (k). Pub. L. 117–58 added subsec. (j) and redesignated former subsec. (j) as (k). Statutory Notes and Related Subsidiaries WAGE RATE REQUIREMENTS For provisions relating to rates of wages to be paid to laborers and mechanics on projects for construction, alteration, or repair work funded under div. D or an amendment by div. D of Pub. L. 117–58, including au- thority of Secretary of Labor, see section 18851 of this title. APPLICATION Provisions of section 3212 of this title applicable to construction, alteration, or repair work of demonstra- tion projects funded by grants or contracts authorized under this section, see section 9006(b) of div. Z of Pub. L. 116–260, set out as a note under section 16237 of this title. Page 8861 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 16311 § 16298e. Carbon dioxide removal task force and report (a) Definition of carbon dioxide removal In this section, the term ‘‘carbon dioxide re- moval’’ means the capture of carbon dioxide di- rectly from ambient air or, in dissolved form, from seawater, combined with the sequestration of that carbon dioxide, including through— (1) direct air capture and sequestration; (2) enhanced carbon mineralization; (3) bioenergy with carbon capture and se- questration; (4) forest restoration; (5) soil carbon management; and (6) direct ocean capture. (b) Report Not later than 180 days after December 27, 2020, the Secretary of Energy (in this section re- ferred to as the ‘‘Secretary’’), in consultation with the heads of any other relevant Federal agencies, shall prepare a report that— (1) estimates the magnitude of excess carbon dioxide in the atmosphere that will need to be removed by 2050 to achieve net-zero emissions and stabilize the climate; (2) inventories current and emerging ap- proaches of carbon dioxide removal and evalu- ates the advantages and disadvantages of each of the approaches; and (3) identifies recommendations for legisla- tion, funding, rules, revisions to rules, financ- ing mechanisms, or other policy tools that the Federal Government can use to sufficiently advance the deployment of carbon dioxide re- moval projects in order to meet, in the aggre- gate, the magnitude of needed removals esti- mated under paragraph (1), including policy tools, such as— (A) grants; (B) loans or loan guarantees; (C) public-private partnerships; (D) direct procurement; (E) incentives, including subsidized Fed- eral financing mechanisms available to project developers; (F) advance market commitments; (G) regulations; and (H) any other policy mechanism deter- mined by the Secretary to be beneficial for advancing carbon dioxide removal methods and the deployment of carbon dioxide re- moval projects. (c) Submission; publication The Secretary shall— (1) submit the report prepared under sub- section (b) to the Committee on Energy and Natural Resources of the Senate and the Com- mittees on Energy and Commerce and Science, Space, and Technology of the House of Rep- resentatives; and (2) as soon as practicable after completion of the report, make the report publicly available. (d) Evaluation; revision (1) In general Not later than 2 years after the date on which the Secretary publishes the report under subsection (c)(2), and every 2 years thereafter, the Secretary shall evaluate the findings and recommendations of the report, or the most recent updated report submitted under paragraph (2)(B), as applicable, taking into consideration any issues and rec- ommendations identified by the task force es- tablished under subsection (e)(1). (2) Revision After completing each evaluation under paragraph (1), the Secretary shall— (A) revise the report as necessary; and (B) if the Secretary revises the report under subparagraph (A), submit and publish the updated report in accordance with sub- section (c). (e) Task force (1) Establishment and duties Not later than 60 days after December 27, 2020, the Secretary shall establish a task force— (A) to identify barriers to advancement of carbon dioxide removal methods and the de- ployment of carbon dioxide removal projects; (B) to inventory existing or potential Fed- eral legislation, rules, revisions to rules, fi- nancing mechanisms, or other policy tools that are capable of advancing carbon dioxide removal methods and the deployment of car- bon dioxide removal projects; (C) to assist in preparing the report de- scribed in subsection (b) and any updates to the report under subsection (d); and (D) to advise the Secretary on matters per- taining to carbon dioxide removal. (2) Members and selection The Secretary shall— (A) develop criteria for the selection of members to the task force established under paragraph (1); and (B) select members for the task force in accordance with the criteria developed under subparagraph (A). (3) Meetings The task force shall meet not less frequently than once each year. (4) Evaluation Not later than 7 years after December 27, 2020, the Secretary shall— (A) reevaluate the need for the task force established under paragraph (1); and (B) submit to Congress a recommendation as to whether the task force should con- tinue. (Pub. L. 116–260, div. Z, title V, § 5002, Dec. 27, 2020, 134 Stat. 2550.) Editorial Notes CODIFICATION Section was enacted as part of the Energy Act of 2020, and not as part of the Energy Policy Act of 2005 which comprises this chapter. PART G—SCIENCE § 16311. Science (a) In general The Secretary shall conduct, through the Of- fice of Science, programs of research, develop-