Fossil Energy Research and Development Act of 2019

IB Union Calendar No. 410 116TH CONGRESS 2D SESSION H. R. 3607 [Report No. 116–510] To amend the Energy Policy Act of 2005 to direct Federal research in fossil energy and to promote the development and demonstration of environmentally responsible coal and natural gas technologies, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JULY 2, 2019 Mr. VEASEY (for himself, Mr. SCHWEIKERT, Mr. LAMB, Mrs. FLETCHER, and Ms. JOHNSON of Texas) introduced the following bill; which was referred to the Committee on Science, Space, and Technology SEPTEMBER 17, 2020 Additional sponsors: Mr. FITZPATRICK, Mr. MCKINLEY, Ms. TORRES SMALL of New Mexico, Mr. MALINOWSKI, and Mr. MCADAMS SEPTEMBER 17, 2020 Reported with an amendment; committed to the Committee of the Whole House on the State of the Union and ordered to be printed [Strike out all after the enacting clause and insert the part printed in italic] [For text of introduced bill, see copy of bill as introduced on July 2, 2019] VerDate Sep 11 2014 22:49 Sep 17, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H3607.RH H3607 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 3607 RH A BILL To amend the Energy Policy Act of 2005 to direct Federal research in fossil energy and to promote the development and demonstration of environmentally responsible coal and natural gas technologies, and for other purposes. VerDate Sep 11 2014 22:49 Sep 17, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6652 E:\BILLS\H3607.RH H3607 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 3607 RH Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the ‘‘Fos- 4 sil Energy Research and Development Act of 2019’’. 5 (b) TABLE OF CONTENTS.—The table of contents for 6 this Act is as follows: 7 Sec. 1. Short title; table of contents. Sec. 2. Definitions. Sec. 3. Fossil energy objectives. Sec. 4. Carbon capture technologies. Sec. 5. Natural gas carbon capture research, development, and demonstration pro- gram. Sec. 6. Carbon storage validation and testing. Sec. 7. Carbon utilization. Sec. 8. Advanced energy systems. Sec. 9. Rare earth elements. Sec. 10. Methane hydrate research amendments. Sec. 11. Carbon removal. Sec. 12. Methane leak detection and mitigation. Sec. 13. Waste gas utilization. Sec. 14. National energy technology laboratory reforms. Sec. 15. Climate Solutions Challenges. Sec. 16. Table of contents amendments. SEC. 2. DEFINITIONS. 8 For purposes of this Act: 9 (1) DEPARTMENT.—The term ‘‘Department’’ 10 means the Department of Energy. 11 (2) SECRETARY.—The term ‘‘Secretary’’ means 12 the Secretary of Energy. 13 SEC. 3. FOSSIL ENERGY OBJECTIVES. 14 Section 961 of the Energy Policy Act of 2005 (42 15 U.S.C. 16291) is amended— 16 (1) in subsection (a)— 17 VerDate Sep 11 2014 22:49 Sep 17, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6203 E:\BILLS\H3607.RH H3607 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 3607 RH (A) by striking paragraph (2) and inserting 1 the following: 2 ‘‘(2) Decreasing the cost of emissions control 3 technologies for fossil energy production, generation, 4 and delivery.’’; 5 (B) by striking paragraph (7) and inserting 6 the following: 7 ‘‘(7) Increasing the export of emissions control 8 technologies from the United States for fossil energy- 9 related equipment, technology, and services.’’; and 10 (C) by adding at the end the following: 11 ‘‘(8) Improving the conversion, use, and storage 12 of carbon oxides. 13 ‘‘(9) Lowering greenhouse gas emissions for all 14 fossil fuel production, generation, delivery, and utili- 15 zation, to the maximum extent possible. 16 ‘‘(10) Preventing, predicting, monitoring, and 17 mitigating the unintended leaking of methane, carbon 18 dioxide, or other fossil fuel-related emissions into the 19 atmosphere. 20 ‘‘(11) Improving the separation and purification 21 of helium from fossil fuel resources. 22 ‘‘(12) Reducing water use, improving water 23 reuse, and minimizing the surface and subsurface en- 24 VerDate Sep 11 2014 22:49 Sep 17, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6203 E:\BILLS\H3607.RH H3607 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 3607 RH vironmental impact in the development of unconven- 1 tional domestic oil and natural gas resources. 2 ‘‘(13) Developing carbon removal and utilization 3 technologies, products, and methods that result in net 4 reductions in greenhouse gas emissions, including di- 5 rect air capture and storage and carbon use and reuse 6 for commercial application.’’; 7 (2) in subsection (b), by striking paragraphs (1) 8 through (3) and inserting the following: 9 ‘‘(1) $825,000,000 for fiscal year 2020; 10 ‘‘(2) $866,250,000 for fiscal year 2021; 11 ‘‘(3) $909,563,000 for fiscal year 2022; 12 ‘‘(4) $955,041,000 for fiscal year 2023; and 13 ‘‘(5) $1,002,793,000 for fiscal year 2024.’’; and 14 (3) by striking subsections (c) through (e) and 15 inserting the following: 16 ‘‘(c) PRIORITIZATION.—In carrying out this section, 17 the Secretary shall prioritize technologies and strategies 18 that have the potential to meet emissions reduction goals 19 in the agreement of the twenty-first session of the Conference 20 of the Parties to the United Nations Framework Convention 21 on Climate Change. 22 ‘‘(d) LIMITATION.—None of the funds authorized under 23 this section may be used for Fossil Energy Environmental 24 Restoration or Import/Export Authorization.’’. 25 VerDate Sep 11 2014 22:49 Sep 17, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H3607.RH H3607 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 3607 RH SEC. 4. CARBON CAPTURE TECHNOLOGIES. 1 (a) CARBON CAPTURE PROGRAM.—Section 962 of the 2 Energy Policy Act of 2005 (42 U.S.C. 16292) is amended 3 to read as follows: 4 ‘‘SEC. 962. CARBON CAPTURE TECHNOLOGIES. 5 ‘‘(a) IN GENERAL.—The Secretary shall conduct a pro- 6 gram of research, development, demonstration, and commer- 7 cial application of carbon capture technologies, which shall 8 include facilitation of the development and use of— 9 ‘‘(1) carbon capture technologies for coal and 10 natural gas; 11 ‘‘(2) innovations to significantly decrease emis- 12 sions at existing power plants; and 13 ‘‘(3) advanced separation technologies. 14 ‘‘(b) INVESTMENT.—As a part of the program under 15 subsection (a), the Secretary shall maintain robust invest- 16 ments in carbon capture technologies for coal and natural 17 gas applications. 18 ‘‘(c) LARGE-SCALE PILOTS.—In carrying out this sec- 19 tion, the Secretary is encouraged to support pilot projects 20 that test carbon capture technologies on coal and natural 21 gas power and industrial systems below the 100 megawatt 22 scale, consistent with section 988(b). 23 ‘‘(d) COST AND PERFORMANCE GOALS.—In carrying 24 out the program under subsection (a), the Secretary shall 25 establish cost and performance goals to assist in the transi- 26 VerDate Sep 11 2014 22:49 Sep 17, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\H3607.RH H3607 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 3607 RH tion of carbon capture research to commercially viable tech- 1 nologies. 2 ‘‘(e) CARBON CAPTURE PILOT TEST CENTERS.— 3 ‘‘(1) IN GENERAL.—As a part of the program 4 under subsection (a), not later than 1 year after the 5 date of the enactment of the Fossil Energy Research 6 and Development Act of 2019, the Secretary shall 7 award grants to eligible entities for the operation of 8 not less than three Carbon Capture Test Centers (in 9 this subsection, known as the ‘Centers’) to provide 10 unique testing capabilities for innovative carbon cap- 11 ture technologies for power and industrial systems. 12 ‘‘(2) PURPOSE.—Each Center shall— 13 ‘‘(A) advance research, development, dem- 14 onstration, and commercial application of car- 15 bon capture technologies for power and indus- 16 trial systems; and 17 ‘‘(B) test technologies that represent the 18 scale of technology development beyond labora- 19 tory testing, but not yet advanced to testing 20 under operational conditions at commercial 21 scale. 22 ‘‘(3) APPLICATION.—An entity seeking to operate 23 a Center under this subsection shall submit to the 24 VerDate Sep 11 2014 22:49 Sep 17, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\H3607.RH H3607 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 3607 RH Secretary an application at such time and in such 1 manner as the Secretary may require. 2 ‘‘(4) PRIORITY CRITERIA.—In selecting applica- 3 tions to operate a Center under this subsection, the 4 Secretary shall prioritize applicants that— 5 ‘‘(A) have access to existing or planned re- 6 search facilities with modular technology capa- 7 bilities; 8 ‘‘(B) are institutions of higher education 9 with established expertise in engineering and de- 10 sign for carbon capture technologies, or partner- 11 ships with such institutions; 12 ‘‘(C) have access to existing research and 13 test facilities for pre-combustion, post-combus- 14 tion, or oxy-combustion technologies; or 15 ‘‘(D) have test capabilities to address scal- 16 ing challenges of integrating carbon capture tech- 17 nologies with utility scale power plants. 18 ‘‘(5) CONSIDERATIONS.—In awarding grants for 19 the operation of the Centers under this subsection, the 20 Secretary shall ensure that— 21 ‘‘(A) the portfolio of Centers includes a di- 22 verse representation of regional and resource 23 characteristics; and 24 VerDate Sep 11 2014 22:49 Sep 17, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6203 E:\BILLS\H3607.RH H3607 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 3607 RH ‘‘(B) each new Center demonstrates unique 1 research capabilities, unique regional benefits, or 2 new technology development opportunities. 3 ‘‘(6) SCHEDULE.—Each grant to operate a Cen- 4 ter under this subsection shall be awarded for a term 5 of not more than 5 years, subject to the availability 6 of appropriations. The Secretary may renew such 5- 7 year term without limit, subject to a rigorous merit 8 review. 9 ‘‘(7) TERMINATION.—To the extent otherwise au- 10 thorized by law, the Secretary may eliminate a Cen- 11 ter during any 5-year term described in paragraph 12 (6) if such Center is underperforming. 13 ‘‘(f) DEMONSTRATIONS.— 14 ‘‘(1) IN GENERAL.—As a part of the program 15 under subsection (a), the Secretary may provide 16 grants for large-scale demonstration projects for 17 power and industrial systems that test the scale of 18 technology necessary to gain the operational data 19 needed to understand the technical and performance 20 risks of the technology before the application of the 21 technology at commercial scale, in accordance with 22 this subsection. 23 ‘‘(2) ENGINEERING AND DESIGN STUDIES.—The 24 Secretary is authorized to fund front-end engineering 25 VerDate Sep 11 2014 22:49 Sep 17, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6203 E:\BILLS\H3607.RH H3607 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 3607 RH and design studies in addition to, or in advance of, 1 issuing an award for a demonstration project under 2 this subsection. 3 ‘‘(3) APPLICATION.—An entity seeking an award 4 to conduct a demonstration project under this sub- 5 section shall submit to the Secretary an application 6 at such time and in such manner as the Secretary 7 may require. 8 ‘‘(4) LIMITATIONS.—The Secretary shall only 9 provide an award under this subsection after review- 10 ing each applicant and application regarding— 11 ‘‘(A) financial strength; 12 ‘‘(B) construction schedule; 13 ‘‘(C) market risk; and 14 ‘‘(D) contractor history. 15 ‘‘(5) REQUIREMENTS.—A demonstration project 16 funded under this subsection shall— 17 ‘‘(A) utilize technologies that have completed 18 pilot-scale testing or the equivalent, as deter- 19 mined by the Secretary; 20 ‘‘(B) secure and maintain agreements for 21 the utilization or sequestration of captured car- 22 bon dioxide; and 23 ‘‘(C) upon completion, demonstrate carbon 24 capture technologies on a power or industrial 25 VerDate Sep 11 2014 22:49 Sep 17, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6203 E:\BILLS\H3607.RH H3607 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 3607 RH system capable of capturing not less than 1 100,000 tons of carbon dioxide annually. 2 ‘‘(g) DEFINITION OF POWER SYSTEM.—In this section, 3 the term ‘power system’ means any electricity generating 4 unit that utilizes fossil fuels to generate electricity provided 5 to the electric grid or directly to a consumer. 6 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—Of the 7 amounts made available under section 961, there are au- 8 thorized to be appropriated to the Secretary for activities 9 under this section— 10 ‘‘(1) $300,000,000 for fiscal year 2020; 11 ‘‘(2) $315,000,000 for fiscal year 2021; 12 ‘‘(3) $330,750,000 for fiscal year 2022; 13 ‘‘(4) $347,288,000 for fiscal year 2023; and 14 ‘‘(5) $364,652,000 for fiscal year 2024.’’. 15 (b) GAO STUDY.— 16 (1) IN GENERAL.—Not later than 1 year after 17 the date of enactment of this Act, the Comptroller 18 General of the United States shall submit to the Com- 19 mittee on Science, Space, and Technology of the 20 House of Representatives and the Committee on En- 21 ergy and Natural Resources of the Senate a report on 22 the results of a study of the Department’s successes, 23 failures, practices, and improvements in carrying out 24 demonstration projects for carbon capture technologies 25 VerDate Sep 11 2014 22:49 Sep 17, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6203 E:\BILLS\H3607.RH H3607 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 3607 RH for power and industrial systems. In conducting the 1 study, the Comptroller General shall consider— 2 (A) applicant and contractor qualifications; 3 (B) project management practices at the 4 Department; 5 (C) economic or market changes and other 6 factors impacting project viability; 7 (D) completion of third-party agreements, 8 including power purchase agreements and carbon 9 dioxide offtake agreements; 10 (E) regulatory challenges; and 11 (F) construction challenges. 12 (2) CONSIDERATION.—The Secretary shall con- 13 sider any relevant recommendations, as determined 14 by the Secretary, provided in the report required 15 under paragraph (1), and shall adopt such rec- 16 ommendations as the Secretary considers appropriate. 17 (3) POWER SYSTEM DEFINED.—In this section, 18 the term ‘‘power system’’ means any electricity gener- 19 ating unit that utilizes fossil fuels to generate elec- 20 tricity provided to the electric grid or directly to a 21 consumer. 22 VerDate Sep 11 2014 22:49 Sep 17, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6203 E:\BILLS\H3607.RH H3607 kjohnson on DSK [Text truncated for display. 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