Launching Energy Advancement and Development through Innovations for Natural Gas Act of 2019

II 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 re- ferred 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 com- mercially 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 Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 00:13 Sep 26, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1685.RS S1685 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 1685 RS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Launching Energy Ad- 2 vancement and Development through Innovations for Nat- 3 ural Gas Act of 2019’’. 4 SEC. 2. NATURAL GAS CARBON CAPTURE RESEARCH, DE- 5 VELOPMENT, AND DEMONSTRATION PRO- 6 GRAM. 7 (a) IN GENERAL.—Subtitle F of title IX of the En- 8 ergy Policy Act of 2005 (42 U.S.C. 16291 et seq.) is 9 amended by adding at the end the following: 10 ‘‘SEC. 969. NATURAL GAS CARBON CAPTURE RESEARCH, 11 DEVELOPMENT, AND DEMONSTRATION PRO- 12 GRAM. 13 ‘‘(a) DEFINITIONS.—In this section: 14 ‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en- 15 tity’ means an entity that documents to the satisfac- 16 tion of the Secretary that— 17 ‘‘(A) the entity is financially responsible; 18 and 19 ‘‘(B) the entity will provide sufficient in- 20 formation to the Secretary to enable the Sec- 21 retary to ensure that any funds awarded to the 22 entity are spent efficiently and effectively. 23 ‘‘(2) NATURAL GAS.—The term ‘natural gas’ 24 means any fuel consisting in whole or in part of— 25 ‘‘(A) natural gas; 26 VerDate Sep 11 2014 00:13 Sep 26, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6401 E:\BILLS\S1685.RS S1685 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 1685 RS ‘‘(B) liquid petroleum gas; 1 ‘‘(C) synthetic gas derived from petroleum 2 or natural gas liquids; 3 ‘‘(D) any mixture of natural gas and syn- 4 thetic gas; or 5 ‘‘(E) any product derived directly from 6 natural gas, including hydrogen. 7 ‘‘(3) NATURAL GAS-GENERATED POWER.—The 8 term ‘natural gas-generated power’ means electric 9 energy generated through the use of natural gas. 10 ‘‘(4) PROGRAM.—The term ‘program’ means 11 the program established under subsection (b)(1). 12 ‘‘(5) QUALIFYING ELECTRIC GENERATION FA- 13 CILITY.— 14 ‘‘(A) IN GENERAL.—The term ‘qualifying 15 electric generation facility’ means a facility that 16 generates electric energy using natural gas as 17 the fuel. 18 ‘‘(B) INCLUSIONS.—The term ‘qualifying 19 electric generation facility’ includes— 20 ‘‘(i) a traditional natural gas plant; 21 ‘‘(ii) a simple cycle plant; 22 ‘‘(iii) a combined cycle plant; 23 ‘‘(iv) a combined heat and power 24 plant; or 25 VerDate Sep 11 2014 00:13 Sep 26, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6401 E:\BILLS\S1685.RS S1685 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 1685 RS ‘‘(v) any other facility that uses nat- 1 ural gas as the fuel for generating electric 2 energy. 3 ‘‘(6) QUALIFYING TECHNOLOGY.—The term 4 ‘qualifying technology’ means any commercially via- 5 ble technology, as determined by the Secretary, for 6 the capture of carbon dioxide produced during the 7 generation of natural gas-generated power. 8 ‘‘(b) ESTABLISHMENT OF RESEARCH, DEVELOP- 9 MENT, AND DEMONSTRATION PROGRAM.— 10 ‘‘(1) IN GENERAL.—The Secretary shall estab- 11 lish a program of research, development, and dem- 12 onstration of qualifying technologies for use by 13 qualifying electric generation facilities. 14 ‘‘(2) OBJECTIVES.—The objectives of the pro- 15 gram shall be— 16 ‘‘(A) to identify opportunities to accelerate 17 the development and commercial applications of 18 qualifying technologies to reduce the quantity of 19 carbon dioxide emissions released from quali- 20 fying electric generation facilities; 21 ‘‘(B) to enter into cooperative agreements 22 with eligible entities to expedite and carry out 23 demonstration projects (including pilot projects) 24 for qualifying technologies for use by qualifying 25 VerDate Sep 11 2014 00:13 Sep 26, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6401 E:\BILLS\S1685.RS S1685 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 1685 RS electric generation facilities to demonstrate the 1 technical feasibility and economic potential of 2 those qualifying technologies for commercial de- 3 ployment; and 4 ‘‘(C) to identify any barriers to the com- 5 mercial deployment of any qualifying tech- 6 nologies under development. 7 ‘‘(3) PARTICIPATION OF NATIONAL LABORA- 8 TORIES, UNIVERSITIES, AND RESEARCH FACILI- 9 TIES.—The program may include the participation 10 of— 11 ‘‘(A) National Laboratories; 12 ‘‘(B) institutions of higher education; 13 ‘‘(C) research facilities; or 14 ‘‘(D) other appropriate entities. 15 ‘‘(4) COOPERATIVE AGREEMENTS.— 16 ‘‘(A) IN GENERAL.—In carrying out the 17 program, the Secretary may enter into coopera- 18 tive agreements with eligible entities to carry 19 out research, development, and demonstration 20 projects for qualifying technologies. 21 ‘‘(B) APPLICATIONS; PROPOSALS.—An eli- 22 gible entity desiring to enter into a cooperative 23 agreement under this paragraph shall submit to 24 the Secretary an application at such time, in 25 VerDate Sep 11 2014 00:13 Sep 26, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6401 E:\BILLS\S1685.RS S1685 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 1685 RS such manner, and containing such information 1 as the Secretary may require. 2 ‘‘(c) CARBON CAPTURE FACILITIES DEMONSTRATION 3 PROGRAM.— 4 ‘‘(1) ESTABLISHMENT.—As part of the pro- 5 gram, the Secretary shall establish a demonstration 6 program under which the Secretary shall enter into 7 cooperative agreements with eligible entities for dem- 8 onstration or pilot projects to license, permit, con- 9 struct, and operate, by not later than September 30, 10 2025, three or more facilities to capture carbon diox- 11 ide from qualifying electric generation facilities. 12 ‘‘(2) GOALS.—Each demonstration or pilot 13 project under the demonstration program shall— 14 ‘‘(A) be designed to further the develop- 15 ment of qualifying technologies that may be 16 used by a qualifying electric generation facility; 17 ‘‘(B) be financed in part by the private 18 sector; 19 ‘‘(C) if necessary, secure agreements for 20 the offtake of the majority of the carbon dioxide 21 emissions captured by qualifying technologies 22 during the project; and 23 ‘‘(D) support energy production in the 24 United States. 25 VerDate Sep 11 2014 00:13 Sep 26, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6401 E:\BILLS\S1685.RS S1685 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 1685 RS ‘‘(3) REQUEST FOR APPLICATIONS.—Not later 1 than 120 days after the date of enactment of this 2 Act, the Secretary shall solicit applications for coop- 3 erative agreements for projects— 4 ‘‘(A) to demonstrate qualifying tech- 5 nologies at three or more qualifying electric 6 generation facilities; 7 ‘‘(B) to obtain any license or permit from 8 a State or Federal agency that is necessary for 9 the construction of three or more facilities to 10 capture carbon dioxide from a qualifying elec- 11 tric generation facility; and 12 ‘‘(C) to construct and operate three or 13 more facilities to capture carbon dioxide from a 14 qualifying electric generation facility. 15 ‘‘(4) REVIEW OF APPLICATIONS.—In reviewing 16 applications submitted under paragraph (3), the 17 Secretary, to the maximum extent practicable, 18 shall— 19 ‘‘(A) ensure a broad geographic distribu- 20 tion of project sites; 21 ‘‘(B) ensure that a broad selection of 22 qualifying electric generation facilities are rep- 23 resented; 24 VerDate Sep 11 2014 00:13 Sep 26, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6401 E:\BILLS\S1685.RS S1685 pamtmann on DSKBC07HB2PROD with BILLS 8 •S 1685 RS ‘‘(C) ensure that a broad selection of quali- 1 fying technologies are represented; 2 ‘‘(D) require information and knowledge 3 gained by each participant in the demonstration 4 program to be transferred and shared among— 5 ‘‘(i) all participants in the demonstra- 6 tion program; and 7 ‘‘(ii) other interested parties; and 8 ‘‘(E) leverage existing— 9 ‘‘(i) public-private partnerships; and 10 ‘‘(ii) Federal resources. 11 ‘‘(d) COST SHARING.—In carrying out this section, 12 the Secretary shall require cost sharing in accordance with 13 section 988. 14 ‘‘(e) FEE TITLE.—The Secretary may vest fee title 15 or other property interests acquired under cooperative 16 agreements entered into under subsection (b)(4) in any 17 entity, including the United States. 18 ‘‘(f) REPORT.—Not later than 180 days after the 19 date on which the Secretary solicits applications under 20 subsection (c)(3), and annually thereafter, the Secretary 21 shall submit to the appropriate committees of jurisdiction 22 of the Senate and the House of Representatives a report 23 that— 24 VerDate Sep 11 2014 00:13 Sep 26, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6401 E:\BILLS\S1685.RS S1685 pamtmann on DSKBC07HB2PROD with BILLS 9 •S 1685 RS ‘‘(1) with respect to subsections (b) and (c), in- 1 cludes recommendations for any legislative changes 2 needed to improve the implementation of those sub- 3 sections; 4 ‘‘(2) with respect to subsection (b), includes— 5 ‘‘(A) a detailed description of how applica- 6 tions for cooperative agreements under para- 7 graph (4) of that subsection will be solicited 8 and evaluated, including— 9 ‘‘(i) a list of any activities carried out 10 by the Secretary to solicit or evaluate ap- 11 plications; and 12 ‘‘(ii) a process for ensuring that any 13 projects carried out under a cooperative 14 agreement are designed to result in the de- 15 velopment or demonstration of qualifying 16 technologies; 17 ‘‘(B) a detailed list of technical milestones 18 for each qualifying technology pursued under 19 that subsection; 20 ‘‘(C) a detailed description of how each 21 project carried out pursuant to a cooperative 22 agreement under paragraph (4) of that sub- 23 section will meet the milestones for carbon cap- 24 ture described in the September 2017 report of 25 VerDate Sep 11 2014 00:13 Sep 26, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6401 E:\BILLS\S1685.RS S1685 pamtmann on DSKBC07HB2PROD with BILLS 10 •S 1685 RS the Office of Fossil Energy entitled ‘Accel- 1 erating Breakthrough Innovation in Carbon 2 Capture, Utilization, and Storage’; and 3 ‘‘(D) an affirmation from the Secretary 4 that all recipients of funding under that sub- 5 section are eligible entities; and 6 ‘‘(3) with respect to the demonstration program 7 established under subsection (c), includes— 8 ‘‘(A) an estimate of the cost of licensing, 9 permitting, constructing, and operating each 10 carbon capture facility expected to be con- 11 structed under that demonstration program; 12 ‘‘(B) a schedule for— 13 ‘‘(i) obtaining any license or permit 14 necessary to construct and operate each 15 carbon capture facility expected to be con- 16 structed; and 17 ‘‘(ii) constructing each facility; and 18 ‘‘(C) an estimate of any financial assist- 19 ance, compensation, or incentives proposed to 20 be paid by the host State, Indian Tribe, or local 21 government with respect to each facility. 22 ‘‘(g) FUNDING.—For each of fiscal years 2020 23 through 2025, out of any amounts appropriated to the De- 24 partment to carry out fossil energy research and develop- 25 VerDate Sep 11 2014 00:13 Sep 26, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6401 E:\BILLS\S1685.RS S1685 pamtmann on DSKBC07HB2PROD with BILLS 11 •S 1685 RS ment activities and not otherwise obligated, the Secretary 1 may use to carry out this section not more than 2 $50,000,000.’’. 3 (b) CLERICAL AMENDMENT.—The table of contents 4 for the Energy Policy Act of 2005 (Public Law 109–58; 5 119 Stat. 600) is amended by inserting after the item re- 6 lating to section 968 the following: 7 ‘‘Sec. 969. Natural gas carbon capture research, development, and demonstra- tion program.’’. SECTION 1. SHORT TITLE. 8 This Act may be cited as the ‘‘Launching Energy Ad- 9 vancement and Development through Innovations for Nat- 10 ural Gas Act of 2019’’. 11 SEC. 2. NATURAL GAS CARBON CAPTURE RESEARCH, DE- 12 VELOPMENT, AND DEMONSTRATION PRO- 13 GRAM. 14 (a) IN GENERAL.—Subtitle F of title IX of the Energy 15 Policy Act of 2005 (42 U.S.C. 16291 et seq.) is amended 16 by adding at the end the following: 17 ‘‘SEC. 969. NATURAL GAS CARBON CAPTURE RESEARCH, DE- 18 VELOPMENT, AND DEMONSTRATION PRO- 19 GRAM. 20 ‘‘(a) DEFINITIONS.—In this section: 21 ‘‘(1) COMMERCIALLY VIABLE TECHNOLOGY.—The 22 term ‘commercially viable technology’ means tech- 23 nology that has the potential to be successfully de- 24 VerDate Sep 11 2014 00:13 Sep 26, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6203 E:\BILLS\S1685.RS S1685 pamtmann on DSKBC07HB2PROD with BILLS 12 •S 1685 RS ployed and compete effectively in the marketplace at 1 an appropriate size or scale. 2 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible enti- 3 ty’ means an entity that documents to the satisfaction 4 of the Secretary that— 5 ‘‘(A) the entity is financially responsible; 6 and 7 ‘‘(B) the entity will provide sufficient infor- 8 mation to the Secretary to enable the Secretary 9 to ensure that any funds awarded to the entity 10 are spent efficiently and effectively. 11 ‘‘(3) NATURAL GAS.—The term ‘natural gas’ 12 means any fuel consisting in whole or in part of— 13 ‘‘(A) natural gas; 14 ‘‘(B) liquid petroleum gas; 15 ‘‘(C) synthetic gas derived from petroleum 16 or natural gas liquids; 17 ‘‘(D) any mixture of natural gas and syn- 18 thetic gas; or 19 ‘‘(E) biomethane. 20 ‘‘(4) NATURAL GAS-GENERATED POWER.—The 21 term ‘natural gas-generated power’ means— 22 ‘‘(A) electric energy generated through the 23 use of natural gas; and 24 VerDate Sep 11 2014 00:13 Sep 26, 2019 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6203 E:\BILLS\S1685.RS S1685 pamtmann on DSKBC07HB2PROD with BILLS 13 •S 1685 RS ‘‘(B) the generation of hydrogen from nat- 1 ural gas. 2 ‘‘(5) PROGRAM.—The term ‘program’ [Text truncated for display. Full text available on Congress.gov.]