EFFECT Act of 2019

II Calendar No. 218 116TH CONGRESS 1ST SESSION S. 1201 [Report No. 116–115] To amend the fossil energy research and development provisions of the Energy Policy Act of 2005 to enhance fossil fuel technology, and for other purposes. IN THE SENATE OF THE UNITED STATES APRIL 11, 2019 Mr. MANCHIN (for himself, Ms. MURKOWSKI, Mrs. CAPITO, Mr. CRAMER, Mr. DAINES, Mr. JONES, Mr. ALEXANDER, Mr. HOEVEN, and Mr. COONS) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources SEPTEMBER 24, 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 amend the fossil energy research and development provi- sions of the Energy Policy Act of 2005 to enhance fossil fuel technology, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 22:12 Sep 24, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1201.RS S1201 kjohnson on DSK79L0C42 with BILLS 2 •S 1201 RS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Enhancing Fossil Fuel 2 Energy Carbon Technology Act of 2019’’. 3 SEC. 2. ESTABLISHMENT OF COAL AND NATURAL GAS 4 TECHNOLOGY PROGRAM. 5 (a) IN GENERAL.—The Energy Policy Act of 2005 6 is amended by striking section 962 (42 U.S.C. 16292) and 7 inserting the following: 8 ‘‘SEC. 962. COAL AND NATURAL GAS TECHNOLOGY PRO- 9 GRAM. 10 ‘‘(a) DEFINITIONS.—In this section: 11 ‘‘(1) LARGE-SCALE PILOT PROJECT.—The term 12 ‘large-scale pilot project’ means a pilot project 13 that— 14 ‘‘(A) represents the scale of technology de- 15 velopment beyond laboratory development and 16 bench scale testing, but not yet advanced to the 17 point of being tested under real operational con- 18 ditions at commercial scale; 19 ‘‘(B) represents the scale of technology 20 necessary to gain the operational data needed 21 to understand the technical and performance 22 risks of the technology before the application of 23 that technology at commercial scale or in com- 24 mercial-scale demonstration; and 25 ‘‘(C) is large enough— 26 VerDate Sep 11 2014 22:12 Sep 24, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6401 E:\BILLS\S1201.RS S1201 kjohnson on DSK79L0C42 with BILLS 3 •S 1201 RS ‘‘(i) to validate scaling factors; and 1 ‘‘(ii) to demonstrate the interaction 2 between major components so that control 3 philosophies for a new process can be de- 4 veloped and enable the technology to ad- 5 vance from large-scale pilot plant applica- 6 tion to commercial-scale demonstration or 7 application. 8 ‘‘(2) NET-NEGATIVE CARBON DIOXIDE EMIS- 9 SIONS TECHNOLOGY.—The term ‘net-negative car- 10 bon dioxide emissions technology’ means tech- 11 nology— 12 ‘‘(A) for thermochemical co-conversion of 13 coal and biomass fuels that— 14 ‘‘(i) uses a carbon capture system; 15 and 16 ‘‘(ii) with carbon dioxide removal, the 17 Secretary determines can provide elec- 18 tricity, fuels, or chemicals with net-nega- 19 tive carbon dioxide emissions from produc- 20 tion and consumption of the end products, 21 while removing atmospheric carbon dioxide; 22 and 23 ‘‘(B) through which each use of coal will 24 be combined with the use of a regionally indige- 25 VerDate Sep 11 2014 22:12 Sep 24, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6401 E:\BILLS\S1201.RS S1201 kjohnson on DSK79L0C42 with BILLS 4 •S 1201 RS nous form of biomass energy, provided on a re- 1 newable basis, that is sufficient in quantity to 2 allow for net-negative emissions of carbon diox- 3 ide (in combination with a carbon capture sys- 4 tem), while avoiding impacts on food production 5 activities. 6 ‘‘(3) PROGRAM.—The term ‘program’ means 7 the program established under subsection (b)(1). 8 ‘‘(4) TRANSFORMATIONAL TECHNOLOGY.— 9 ‘‘(A) IN GENERAL.—The term ‘trans- 10 formational technology’ means a power genera- 11 tion technology that represents a significant 12 change in the methods used to convert energy 13 that will enable a step change in performance, 14 efficiency, and cost of electricity as compared to 15 the technology in existence on the date of enact- 16 ment of the Enhancing Fossil Fuel Energy Car- 17 bon Technology Act of 2019. 18 ‘‘(B) INCLUSIONS.—The term ‘trans- 19 formational technology’ includes a broad range 20 of technology improvements, including— 21 ‘‘(i) thermodynamic improvements in 22 energy conversion and heat transfer, in- 23 cluding— 24 VerDate Sep 11 2014 22:12 Sep 24, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6401 E:\BILLS\S1201.RS S1201 kjohnson on DSK79L0C42 with BILLS 5 •S 1201 RS ‘‘(I) advanced combustion sys- 1 tems, including oxygen combustion 2 systems and chemical looping; and 3 ‘‘(II) the replacement of steam 4 cycles with supercritical carbon diox- 5 ide cycles; 6 ‘‘(ii) improvements in steam or carbon 7 dioxide turbine technology; 8 ‘‘(iii) improvements in carbon capture, 9 utilization, and storage systems technology; 10 ‘‘(iv) improvements in small-scale and 11 modular coal-fired technologies with re- 12 duced carbon output or carbon capture 13 that can support incremental power gen- 14 eration capacity additions; 15 ‘‘(v) fuel cell technologies for low-cost, 16 high-efficiency, fuel-flexible modular power 17 systems; 18 ‘‘(vi) advanced gasification systems; 19 ‘‘(vii) thermal cycling technologies; 20 and 21 ‘‘(viii) any other technology the Sec- 22 retary recognizes as transformational tech- 23 nology. 24 VerDate Sep 11 2014 22:12 Sep 24, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6401 E:\BILLS\S1201.RS S1201 kjohnson on DSK79L0C42 with BILLS 6 •S 1201 RS ‘‘(b) COAL AND NATURAL GAS TECHNOLOGY PRO- 1 GRAM.— 2 ‘‘(1) IN GENERAL.—The Secretary shall estab- 3 lish a coal and natural gas technology program to 4 ensure the continued use of the abundant domestic 5 coal and natural gas resources of the United States 6 through the development of technologies that will 7 significantly improve the efficiency, effectiveness, 8 costs, and environmental performance of coal and 9 natural gas use. 10 ‘‘(2) REQUIREMENTS.—The program shall in- 11 clude— 12 ‘‘(A) a research and development program; 13 ‘‘(B) large-scale pilot projects; 14 ‘‘(C) demonstration projects; and 15 ‘‘(D) a front-end engineering and design 16 program. 17 ‘‘(3) PROGRAM GOALS AND OBJECTIVES.—In 18 consultation with the interested entities described in 19 paragraph (5)(C), the Secretary shall develop goals 20 and objectives for the program to be applied to the 21 technologies developed within the program, taking 22 into consideration the following: 23 ‘‘(A) Increasing the performance of coal 24 and natural gas plants, including by— 25 VerDate Sep 11 2014 22:12 Sep 24, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6401 E:\BILLS\S1201.RS S1201 kjohnson on DSK79L0C42 with BILLS 7 •S 1201 RS ‘‘(i) ensuring reliable, low-cost power 1 from new and existing coal and natural gas 2 plants; 3 ‘‘(ii) achieving high conversion effi- 4 ciencies; 5 ‘‘(iii) addressing emissions of carbon 6 dioxide through high-efficiency platforms; 7 ‘‘(iv) developing small-scale and mod- 8 ular technologies to support incremental 9 capacity additions and load following gen- 10 eration, in addition to large-scale genera- 11 tion technologies; 12 ‘‘(v) supporting dispatchable oper- 13 ations for new and existing applications of 14 coal and natural gas generation; and 15 ‘‘(vi) accelerating the development of 16 technologies that have transformational en- 17 ergy conversion characteristics. 18 ‘‘(B) Using carbon capture, utilization, and 19 sequestration technologies to decrease the car- 20 bon dioxide emissions, and the environmental 21 impact from carbon dioxide emissions, from new 22 and existing coal and natural gas plants, includ- 23 ing by— 24 VerDate Sep 11 2014 22:12 Sep 24, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6401 E:\BILLS\S1201.RS S1201 kjohnson on DSK79L0C42 with BILLS 8 •S 1201 RS ‘‘(i) accelerating the development of 1 technologies to capture carbon dioxide 2 emissions from new and existing coal and 3 natural gas plants; 4 ‘‘(ii) accelerating the development of 5 technologies to capture carbon dioxide 6 emissions from industrial facilities, includ- 7 ing— 8 ‘‘(I) nontraditional fuel manufac- 9 turing facilities, including ethanol or 10 other biofuel production plants; and 11 ‘‘(II) energy-intensive manufac- 12 turing facilities that produce carbon 13 dioxide as a byproduct of operations; 14 ‘‘(iii) supporting sites for safe geologi- 15 cal storage of large volumes of anthropo- 16 genic sources of carbon dioxide and the de- 17 velopment of the infrastructure needed to 18 support a carbon dioxide utilization and 19 storage industry; 20 ‘‘(iv) improving the conversion, utili- 21 zation, and storage of carbon dioxide pro- 22 duced from fossil fuels and other anthropo- 23 genic sources of carbon dioxide; 24 VerDate Sep 11 2014 22:12 Sep 24, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6401 E:\BILLS\S1201.RS S1201 kjohnson on DSK79L0C42 with BILLS 9 •S 1201 RS ‘‘(v) lowering greenhouse gas emis- 1 sions for all fossil fuel production, genera- 2 tion, delivery, and use, to the maximum ex- 3 tent practicable; 4 ‘‘(vi) developing carbon utilization 5 technologies, products, and methods, in- 6 cluding carbon use and reuse for commer- 7 cial application; and 8 ‘‘(vii) developing net-negative carbon 9 dioxide emissions technologies. 10 ‘‘(C) Decreasing the non-carbon dioxide 11 relevant environmental impacts of coal and nat- 12 ural gas production, including by— 13 ‘‘(i) further reducing non-carbon diox- 14 ide air emissions; and 15 ‘‘(ii) reducing the use, and managing 16 the discharge, of water in power plant op- 17 erations. 18 ‘‘(D) Examining methods of converting 19 coal and natural gas to other valuable products 20 and commodities in addition to electricity. 21 ‘‘(4) CROSS-CUTTING DIRECTION FOR CARBON 22 CAPTURE, UTILIZATION, AND SEQUESTRATION AC- 23 TIVITIES.—The carbon capture, utilization, and se- 24 VerDate Sep 11 2014 22:12 Sep 24, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6401 E:\BILLS\S1201.RS S1201 kjohnson on DSK79L0C42 with BILLS 10 •S 1201 RS questration activities described in paragraph (3)(B) 1 shall be— 2 ‘‘(A) cross-cutting in nature; and 3 ‘‘(B) carried out by the Assistant Sec- 4 retary for Fossil Energy, in coordination with 5 the heads of other relevant offices of the De- 6 partment, including the Director of the Office 7 of Science and the Assistant Secretary for En- 8 ergy Efficiency and Renewable Energy. 9 ‘‘(5) CONSULTATIONS REQUIRED.—In carrying 10 out the program, the Secretary shall— 11 ‘‘(A) undertake international collabora- 12 tions, taking into consideration the rec- 13 ommendations of the National Coal Council; 14 ‘‘(B) use existing authorities to encourage 15 international cooperation; and 16 ‘‘(C) consult with interested entities, in- 17 cluding— 18 ‘‘(i) coal and natural gas producers; 19 ‘‘(ii) industries that use coal and nat- 20 ural gas; 21 ‘‘(iii) organizations that promote coal, 22 advanced coal, and natural gas tech- 23 nologies; 24 ‘‘(iv) environmental organizations; 25 VerDate Sep 11 2014 22:12 Sep 24, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6401 E:\BILLS\S1201.RS S1201 kjohnson on DSK79L0C42 with BILLS 11 •S 1201 RS ‘‘(v) organizations representing work- 1 ers; and 2 ‘‘(vi) organizations representing con- 3 sumers. 4 ‘‘(c) REPORT.— 5 ‘‘(1) IN GENERAL.—Not later than 18 months 6 after the date of enactment of the Enhancing Fossil 7 Fuel Energy Carbon Technology Act of 2019, the 8 Secretary shall submit to Congress a report describ- 9 ing the program goals and objectives adopted under 10 subsection (b)(3). 11 ‘‘(2) UPDATE.—Not less frequently than once 12 every 2 years after the initial report is submitted 13 under paragraph (1), the Secretary shall submit to 14 Congress a report describing the progress made to- 15 wards achieving the program goals and objectives 16 adopted under subsection (b)(3). 17 ‘‘(d) FUNDING.— 18 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 19 There are authorized to be appropriated to the Sec- 20 retary to carry out this section, to remain available 21 until expended— 22 ‘‘(A) for activities under the research and 23 development program component described in 24 subsection (b)(2)(A)— 25 VerDate Sep 11 2014 22:12 Sep 24, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6401 E:\BILLS\S1201.RS S1201 kjohnson on DSK79L0C42 with BILLS 12 •S 1201 RS ‘‘(i) $230,000,000 for each of fiscal 1 years 2020 and 2021; and 2 ‘‘(ii) $150,000,000 for each of fiscal 3 years 2022 through 2024; 4 ‘‘(B) subject to paragraph (2), for activi- 5 ties under the large-scale pilot projects program 6 component described in subsection (b)(2)(B)— 7 ‘‘(i) $347,000,000 for each of fiscal 8 years 2020 and 2021; 9 ‘‘(ii) $272,000,000 for each of fiscal 10 years 2022 and 2023; and 11 ‘‘(iii) $250,000,000 for fiscal year 12 2024; 13 ‘‘(C) for activities under the demonstration 14 projects program component described in sub- 15 section (b)(2)(C)— 16 ‘‘(i) $100,000,000 for each of fiscal 17 years 2020 and 2021; and 18 ‘‘(ii) $500,000,000 for each of fiscal 19 years 2022 through 2024; and 20 ‘‘(D) for activities under the front-end en- 21 gineering and design program described in sub- 22 section (b)(2)(D), $50,000,000 for each of fis- 23 cal years 2020 through 2023. 24 VerDate Sep 11 2014 22:12 Sep 24, 2019 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6401 E:\BILLS\S1201.RS S1201 kjohnson on DSK79L0C42 with BILLS 13 •S 1201 RS ‘‘(2) COST SHARING FOR LARGE-SCALE PILOT 1 PROJECTS.—Activities under subsection (b)(2)(B) 2 shall be subject to the cost-sharing requirements of 3 section 988(b).’’. 4 (b) TECHNICAL AMENDMENT.—The table of contents 5 for the Energy Policy Act of 2005 (Public Law 109–58; 6 119 Stat. 600) is amended by striking the item relating 7 to section 962 and inserting the following: 8 ‘‘Sec. 962. Coal and natural gas technology program.’’. SEC. 3. CARBON STORAGE VALIDATION AND TESTING. 9 (a) IN GENERAL.—The Energy Policy Act of 2005 10 is amended by striking section 963 (42 U.S. C. 16293) 11 and inserting the following: 12 ‘‘SEC. 963. CARBON STORAGE VALIDATION AND TESTING. 13 ‘‘(a) DEFINITIONS.—In this section: 14 ‘‘(1) ELECTRIC GENERATION UNIT.—The term 15 ‘electric generation unit’ means an electric genera- 16 tion unit that— 17 ‘‘(A) uses coal- or natural gas-based gen- 18 eration technology; and 19 ‘‘(B) is capable of capturing carbon dioxide 20 emissions from the unit. 21 ‘‘(2) LARGE-SCALE CARBON SEQUESTRATION.— 22 The term ‘large-scale carbon sequestration’ means a 23 scale that demonstrates the ability to inject into geo- 24 logic formations an [Text truncated for display. Full text available on Congress.gov.]