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

I 116TH CONGRESS 1ST SESSION H. R. 3828 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 HOUSE OF REPRESENTATIVES JULY 18, 2019 Mr. CRENSHAW (for himself, Mr. CUELLAR, Mr. LUCAS, Mr. GONZALEZ of Texas, Mr. FLORES, Mr. LAMB, and Mr. WALBERG) introduced the fol- lowing bill; which was referred to the Committee on Science, Space, and Technology 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 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Launching Energy Ad- 4 vancement and Development through Innovations for Nat- 5 ural Gas Act of 2019’’. 6 VerDate Sep 11 2014 22:13 Jul 27, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3828.IH H3828 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 3828 IH SEC. 2. NATURAL GAS CARBON CAPTURE RESEARCH, DE- 1 VELOPMENT, AND DEMONSTRATION PRO- 2 GRAM. 3 (a) IN GENERAL.—Subtitle F of title IX of the En- 4 ergy Policy Act of 2005 (42 U.S.C. 16291 et seq.) is 5 amended by adding at the end the following: 6 ‘‘SEC. 969. NATURAL GAS CARBON CAPTURE RESEARCH, 7 DEVELOPMENT, AND DEMONSTRATION PRO- 8 GRAM. 9 ‘‘(a) DEFINITIONS.—In this section: 10 ‘‘(1) NATURAL GAS.—The term ‘natural gas’ 11 includes any fuel consisting in whole or in part of— 12 ‘‘(A) natural gas; 13 ‘‘(B) liquid petroleum gas; 14 ‘‘(C) synthetic gas derived from petroleum 15 or natural gas liquids; 16 ‘‘(D) any mixture of natural gas and syn- 17 thetic gas; or 18 ‘‘(E) any product derived directly from 19 natural gas, including hydrogen. 20 ‘‘(2) QUALIFYING ELECTRIC GENERATION FA- 21 CILITY.—The term ‘qualifying electric generation fa- 22 cility’ means a facility that generates electric energy 23 through the use of natural gas. 24 ‘‘(3) QUALIFYING TECHNOLOGY.—The term 25 ‘qualifying technology’ means any technology to cap- 26 VerDate Sep 11 2014 22:13 Jul 27, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3828.IH H3828 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 3828 IH ture carbon dioxide produced during the generation 1 of electricity from natural gas power systems. 2 ‘‘(b) ESTABLISHMENT OF RESEARCH, DEVELOP- 3 MENT, AND DEMONSTRATION PROGRAM.— 4 ‘‘(1) IN GENERAL.—The Secretary shall estab- 5 lish a program under which the Secretary shall, 6 through a competitive, merit-reviewed process, award 7 grants to eligible entities to conduct research, devel- 8 opment, and demonstration of qualifying tech- 9 nologies. 10 ‘‘(2) OBJECTIVES.—The objectives of the pro- 11 gram established under paragraph (1) shall be— 12 ‘‘(A) to conduct research to accelerate the 13 development of qualifying technologies to reduce 14 the quantity of carbon dioxide emissions re- 15 leased from qualifying electric generation facili- 16 ties, including— 17 ‘‘(i) pre- and post-combustion capture 18 technologies; and 19 ‘‘(ii) technologies to improve the ther- 20 modynamics, kinetics, scalability, dura- 21 bility, and flexibility of carbon capture 22 technologies for use during the generation 23 of electricity from natural gas power sys- 24 tems; 25 VerDate Sep 11 2014 05:00 Jul 30, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3828.IH H3828 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 3828 IH ‘‘(B) to expedite and carry out demonstra- 1 tion projects (including pilot projects) for quali- 2 fying technologies in partnership with quali- 3 fying electric generation facilities in order to 4 demonstrate the technical feasibility and eco- 5 nomic potential for commercial deployment of 6 technologies developed pursuant to subpara- 7 graph (A); and 8 ‘‘(C) to identify any barriers to the com- 9 mercial deployment of any qualifying tech- 10 nologies under development pursuant to re- 11 search conducted pursuant to subparagraph 12 (A). 13 ‘‘(3) ELIGIBLE ENTITIES.—An entity eligible to 14 receive a grant under this subsection is— 15 ‘‘(A) a National Laboratory; 16 ‘‘(B) an institution of higher education; 17 ‘‘(C) a research facility; 18 ‘‘(D) a multi-institutional collaboration; or 19 ‘‘(E) another appropriate entity or com- 20 bination of any of the entities specified in sub- 21 paragraphs (A) through (D). 22 ‘‘(c) CARBON CAPTURE FACILITIES DEMONSTRATION 23 PROGRAM.— 24 VerDate Sep 11 2014 22:13 Jul 27, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3828.IH H3828 pamtmann on DSKBFK8HB2PROD with BILLS 5 •HR 3828 IH ‘‘(1) ESTABLISHMENT.—As part of the pro- 1 gram established under paragraph (1), the Secretary 2 shall establish a demonstration program under which 3 the Secretary shall, through a competitive, merit-re- 4 viewed process, enter into cooperative agreements 5 with entities that submit applications pursuant to 6 paragraph (4) for demonstration or pilot projects to 7 construct and operate, by not later than September 8 30, 2025, up to five facilities to capture carbon diox- 9 ide from qualifying electric generation facilities. The 10 Secretary shall, to the maximum extent practicable, 11 provide technical assistance to any entity seeking to 12 enter into such a cooperative agreement in obtaining 13 any necessary permits and licenses to demonstrate 14 qualifying technologies. 15 ‘‘(2) COOPERATIVE AGREEMENTS.—The Sec- 16 retary may enter into a cooperative agreement under 17 this subsection with industry stakeholders, including 18 any such industry stakeholder operating in partner- 19 ship with National Laboratories, institutions of high- 20 er education, multi-institutional collaborations, and 21 other appropriate entities. 22 ‘‘(3) GOALS.—Each demonstration or pilot 23 project carried out pursuant to the demonstration 24 program under this subsection shall— 25 VerDate Sep 11 2014 22:13 Jul 27, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3828.IH H3828 pamtmann on DSKBFK8HB2PROD with BILLS 6 •HR 3828 IH ‘‘(A) be designed to further the develop- 1 ment of qualifying technologies that may be 2 used by a qualifying electric generation facility; 3 ‘‘(B) be financed in part by the private 4 sector; 5 ‘‘(C) if necessary, secure agreements for 6 the offtake of carbon dioxide emissions captured 7 by qualifying technologies during the project; 8 and 9 ‘‘(D) support energy production in the 10 United States. 11 ‘‘(4) REQUEST FOR APPLICATIONS.—Not later 12 than 120 days after the date of enactment of this 13 Act, the Secretary shall solicit applications for coop- 14 erative agreements for projects— 15 ‘‘(A) to demonstrate qualifying tech- 16 nologies at up to five qualifying electric genera- 17 tion facilities; and 18 ‘‘(B) to construct and operate three or 19 more facilities to capture carbon dioxide from a 20 qualifying electric generation facility. 21 ‘‘(5) REVIEW OF APPLICATIONS.—In consid- 22 ering applications submitted under paragraph (4), 23 the Secretary, to the maximum extent practicable, 24 shall— 25 VerDate Sep 11 2014 22:13 Jul 27, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3828.IH H3828 pamtmann on DSKBFK8HB2PROD with BILLS 7 •HR 3828 IH ‘‘(A) ensure a broad geographic distribu- 1 tion of project sites; 2 ‘‘(B) ensure that a broad selection of 3 qualifying electric generation facilities are rep- 4 resented; 5 ‘‘(C) ensure that a broad selection of quali- 6 fying technologies are represented; 7 ‘‘(D) require information and knowledge 8 gained by each participant in the demonstration 9 program to be transferred and shared among 10 all participants in the demonstration program; 11 and 12 ‘‘(E) leverage existing— 13 ‘‘(i) public-private partnerships; and 14 ‘‘(ii) Federal resources. 15 ‘‘(d) COST SHARING.—In carrying out this section, 16 the Secretary shall require cost sharing in accordance with 17 section 988. 18 ‘‘(e) FEE TITLE.—The Secretary may vest fee title 19 or other property interests acquired under cooperative 20 agreements entered into under subsection (b)(4) in any 21 entity, including the United States. 22 ‘‘(f) REPORT.—Not later than 180 days after the 23 date on which the Secretary solicits applications under 24 subsection (c)(3), and annually thereafter, the Secretary 25 VerDate Sep 11 2014 22:13 Jul 27, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3828.IH H3828 pamtmann on DSKBFK8HB2PROD with BILLS 8 •HR 3828 IH shall submit to the appropriate committees of jurisdiction 1 of the Senate and the House of Representatives a report 2 that includes— 3 ‘‘(1) a detailed description of how applications 4 for cooperative agreements under subsection (b) will 5 be solicited and evaluated, including— 6 ‘‘(A) a list of any activities carried out by 7 the Secretary to solicit or evaluate applications; 8 and 9 ‘‘(B) a process for ensuring that any 10 projects carried out under a cooperative agree- 11 ment are designed to result in the development 12 or demonstration of qualifying technologies; 13 ‘‘(2)(A) in the case of the first report under 14 this subsection, a detailed list of technical milestones 15 for the development and demonstration of each 16 qualifying technology pursued under subsection (b); 17 and 18 ‘‘(B) in the case of each subsequent report 19 under this subsection, the progress made towards 20 achieving such technical milestones during the pe- 21 riod covered by the report; and 22 ‘‘(3) with respect to the demonstration program 23 established under subsection (c), includes— 24 VerDate Sep 11 2014 22:13 Jul 27, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3828.IH H3828 pamtmann on DSKBFK8HB2PROD with BILLS 9 •HR 3828 IH ‘‘(A) an estimate of the cost of licensing, 1 permitting, constructing, and operating each 2 carbon capture facility expected to be con- 3 structed under that demonstration program; 4 ‘‘(B) a schedule for the planned construc- 5 tion and operation of each demonstration or 6 pilot project; and 7 ‘‘(C) an estimate of any financial assist- 8 ance, compensation, or incentives proposed to 9 be paid by the host State, Indian Tribe, or local 10 government with respect to each facility. 11 ‘‘(g) FUNDING.—For each of fiscal years 2020 12 through 2025, out of any amounts appropriated to the De- 13 partment to carry out fossil energy research and develop- 14 ment activities and not otherwise obligated, the Secretary 15 may use to carry out this section not more than 16 $50,000,000.’’. 17 (b) CLERICAL AMENDMENT.—The table of contents 18 for the Energy Policy Act of 2005 (Public Law 109–58; 19 119 Stat. 600) is amended by inserting after the item re- 20 lating to section 968 the following: 21 ‘‘Sec. 969. Natural gas carbon capture research, development, and demonstra- tion program.’’. Æ VerDate Sep 11 2014 22:13 Jul 27, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6301 E:\BILLS\H3828.IH H3828 pamtmann on DSKBFK8HB2PROD with BILLS