New Energy Frontiers Through Carbon Innovation Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 5864 To establish and support the research, development, and demonstration of advanced carbon capture and utilization technologies at the Department of Energy, and for other purposes. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 12, 2020 Mr. CRENSHAW introduced the following bill; which was referred to the Committee on Science, Space, and Technology A BILL To establish and support the research, development, and demonstration of advanced carbon capture and utilization technologies at the Department of Energy, 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 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘New Energy Frontiers 4 Through Carbon Innovation Act of 2020’’. 5 VerDate Sep 11 2014 00:30 Feb 20, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5864.IH H5864 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 5864 IH SEC. 2. CARBON UTILIZATION RESEARCH AND DEVELOP- 1 MENT PROGRAM AND INFRASTRUCTURE. 2 (a) Section 963 of the Energy Policy Act of 2005 (42 3 U.S.C. 16293) is amended to read as follows: 4 ‘‘SEC. 963. CARBON UTILIZATION RESEARCH AND DEVELOP- 5 MENT INFRASTRUCTURE. 6 ‘‘(a) IN GENERAL.—The Secretary shall carry out a 7 program to conduct basic and fundamental research in 8 materials science, chemistry, subsurface instrumentation, 9 and data analysis to inform the research, development, 10 and demonstration of carbon capture, storage, and utiliza- 11 tion technologies and techniques, and to facilitate the 12 translation of basic research results to industry. 13 ‘‘(b) COORDINATION.—In carrying out the program 14 under subsection (a), the Secretary shall leverage expertise 15 and resources and facilitate collaboration and coordination 16 between— 17 ‘‘(1) the Office of Fossil Energy; and 18 ‘‘(2) the Office of Science. 19 ‘‘(c) CARBON UTILIZATION ENERGY INNOVATION 20 HUB.—In carrying out the program under subsection (a), 21 the Secretary shall establish and operate a national Car- 22 bon Utilization Energy Innovation Hub (referred to in this 23 section as the ‘Hub’), which shall focus on early stage re- 24 search and development activities including— 25 VerDate Sep 11 2014 20:22 Feb 24, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5864.IH H5864 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 5864 IH ‘‘(1) post-combustion and pre-combustion cap- 1 ture of carbon dioxide; 2 ‘‘(2) advanced compression technologies for new 3 and existing fossil fuel-fired power plants; 4 ‘‘(3) technologies to convert carbon dioxide to 5 valuable products and commodities; and 6 ‘‘(4) advanced carbon dioxide storage tech- 7 nologies that consider a range of storage regimes. 8 ‘‘(d) SELECTION.—The Secretary shall select the 9 Hub under this section on a competitive, merit-reviewed 10 basis. The Secretary shall consider applications from Na- 11 tional Laboratories, institutions of higher education, 12 multi-institutional collaborations, and other appropriate 13 entities. 14 ‘‘(e) DURATION.—The Hub established under this 15 section shall receive support for a period of not more than 16 5 years, subject to the availability of appropriations. 17 ‘‘(f) RENEWAL.—Upon the expiration of any period 18 of support of the Hub, the Secretary may renew support 19 for the Hub, on a merit-reviewed basis, for a period of 20 not more than 5 years. 21 ‘‘(g) TERMINATION.—Consistent with the existing 22 authorities of the Department, the Secretary may termi- 23 nate the Hub for cause during the performance period. 24 VerDate Sep 11 2014 00:30 Feb 20, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5864.IH H5864 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 5864 IH ‘‘(h) FUNDING.—For each of fiscal years 2020 1 through 2025, out of any amounts appropriated to the De- 2 partment to carry out fossil energy research and develop- 3 ment activities and not otherwise obligated, the Secretary 4 may use to carry out the Hubs under this section not more 5 than $25,000,000.’’. 6 (b) Section 1(b) of the Energy Policy Act of 2005 7 (42 U.S.C. 15801) by amending the item relating to sec- 8 tion 963 to read as follows: 9 ‘‘Sec. 963. Carbon Utilization Research and Development Infrastructure.’’. SEC. 3. NATURAL GAS CARBON CAPTURE RESEARCH, DE- 10 VELOPMENT, AND DEMONSTRATION PRO- 11 GRAM. 12 (a) IN GENERAL.—Subtitle F of title IX of the En- 13 ergy Policy Act of 2005 (42 U.S.C. 16291 et seq.) is 14 amended by adding at the end the following: 15 ‘‘SEC. 969. NATURAL GAS CARBON CAPTURE RESEARCH, 16 DEVELOPMENT, AND DEMONSTRATION PRO- 17 GRAM. 18 ‘‘(a) DEFINITIONS.—In this section: 19 ‘‘(1) NATURAL GAS.—The term ‘natural gas’ 20 includes any fuel consisting in whole or in part of— 21 ‘‘(A) natural gas; 22 ‘‘(B) liquid petroleum gas; 23 ‘‘(C) synthetic gas derived from petroleum 24 or natural gas liquids; 25 VerDate Sep 11 2014 20:22 Feb 24, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5864.IH H5864 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 5864 IH ‘‘(D) any mixture of natural gas and syn- 1 thetic gas; or 2 ‘‘(E) any product derived directly from 3 natural gas, including hydrogen. 4 ‘‘(2) QUALIFYING ELECTRIC GENERATION FA- 5 CILITY.—The term ‘qualifying electric generation fa- 6 cility’ means a facility that generates electric energy 7 through the use of natural gas. 8 ‘‘(3) QUALIFYING TECHNOLOGY.—The term 9 ‘qualifying technology’ means any technology to cap- 10 ture carbon dioxide produced during the generation 11 of electricity from natural gas power systems. 12 ‘‘(b) ESTABLISHMENT OF RESEARCH, DEVELOP- 13 MENT, AND DEMONSTRATION PROGRAM.— 14 ‘‘(1) IN GENERAL.—The Secretary shall estab- 15 lish a program under which the Secretary shall, 16 through a competitive, merit-reviewed process, award 17 grants to eligible entities to conduct research, devel- 18 opment, and demonstration of qualifying tech- 19 nologies. 20 ‘‘(2) OBJECTIVES.—The objectives of the pro- 21 gram established under paragraph (1) shall be— 22 ‘‘(A) to conduct research to accelerate the 23 development of qualifying technologies to reduce 24 the quantity of carbon dioxide emissions re- 25 VerDate Sep 11 2014 20:22 Feb 24, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H5864.IH H5864 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 5864 IH leased from qualifying electric generation facili- 1 ties, including— 2 ‘‘(i) pre- and post-combustion capture 3 technologies; and 4 ‘‘(ii) technologies to improve the ther- 5 modynamics, kinetics, scalability, dura- 6 bility, and flexibility of carbon capture 7 technologies for use during the generation 8 of electricity from natural gas power sys- 9 tems; 10 ‘‘(B) to expedite and carry out demonstra- 11 tion projects (including pilot projects) for quali- 12 fying technologies in partnership with quali- 13 fying electric generation facilities in order to 14 demonstrate the technical feasibility and eco- 15 nomic potential for commercial deployment of 16 technologies developed pursuant to subpara- 17 graph (A); and 18 ‘‘(C) to identify any barriers to the com- 19 mercial deployment of any qualifying tech- 20 nologies under development pursuant to re- 21 search conducted pursuant to subparagraph 22 (A). 23 ‘‘(3) ELIGIBLE ENTITIES.—An entity eligible to 24 receive a grant under this subsection is— 25 VerDate Sep 11 2014 20:22 Feb 24, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5864.IH H5864 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 5864 IH ‘‘(A) a National Laboratory; 1 ‘‘(B) an institution of higher education; 2 ‘‘(C) a research facility; 3 ‘‘(D) a multi-institutional collaboration; or 4 ‘‘(E) another appropriate entity or com- 5 bination of any of the entities specified in sub- 6 paragraphs (A) through (D). 7 ‘‘(c) CARBON CAPTURE FACILITIES DEMONSTRATION 8 PROGRAM.— 9 ‘‘(1) ESTABLISHMENT.—As part of the pro- 10 gram established under paragraph (1), the Secretary 11 shall establish a demonstration program under which 12 the Secretary shall, through a competitive, merit-re- 13 viewed process, enter into cooperative agreements 14 with entities that submit applications pursuant to 15 paragraph (4) for demonstration or pilot projects to 16 construct and operate, by not later than September 17 30, 2025, up to five facilities to capture carbon diox- 18 ide from qualifying electric generation facilities. The 19 Secretary shall, to the maximum extent practicable, 20 provide technical assistance to any entity seeking to 21 enter into such a cooperative agreement in obtaining 22 any necessary permits and licenses to demonstrate 23 qualifying technologies. 24 VerDate Sep 11 2014 20:22 Feb 24, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H5864.IH H5864 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 5864 IH ‘‘(2) COOPERATIVE AGREEMENTS.—The Sec- 1 retary may enter into a cooperative agreement under 2 this subsection with industry stakeholders, including 3 any such industry stakeholder operating in partner- 4 ship with National Laboratories, institutions of high- 5 er education, multi-institutional collaborations, and 6 other appropriate entities. 7 ‘‘(3) GOALS.—Each demonstration or pilot 8 project carried out pursuant to the demonstration 9 program under this subsection shall— 10 ‘‘(A) be designed to further the develop- 11 ment of qualifying technologies that may be 12 used by a qualifying electric generation facility; 13 ‘‘(B) be financed in part by the private 14 sector; 15 ‘‘(C) if necessary, secure agreements for 16 the offtake of carbon dioxide emissions captured 17 by qualifying technologies during the project; 18 and 19 ‘‘(D) support energy production in the 20 United States. 21 ‘‘(4) REQUEST FOR APPLICATIONS.—Not later 22 than 120 days after the date of enactment of this 23 Act, the Secretary shall solicit applications for coop- 24 erative agreements for projects— 25 VerDate Sep 11 2014 20:22 Feb 24, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H5864.IH H5864 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 5864 IH ‘‘(A) to demonstrate qualifying tech- 1 nologies at up to five qualifying electric genera- 2 tion facilities; and 3 ‘‘(B) to construct and operate three or 4 more facilities to capture carbon dioxide from a 5 qualifying electric generation facility. 6 ‘‘(5) REVIEW OF APPLICATIONS.—In consid- 7 ering applications submitted under paragraph (4), 8 the Secretary, to the maximum extent practicable, 9 shall— 10 ‘‘(A) ensure a broad geographic distribu- 11 tion of project sites; 12 ‘‘(B) ensure that a broad selection of 13 qualifying electric generation facilities are rep- 14 resented; 15 ‘‘(C) ensure that a broad selection of quali- 16 fying technologies are represented; 17 ‘‘(D) require information and knowledge 18 gained by each participant in the demonstration 19 program to be transferred and shared among 20 all participants in the demonstration program; 21 and 22 ‘‘(E) leverage existing— 23 ‘‘(i) public-private partnerships; and 24 ‘‘(ii) Federal resources. 25 VerDate Sep 11 2014 20:22 Feb 24, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H5864.IH H5864 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 5864 IH ‘‘(d) COST SHARING.—In carrying out this section, 1 the Secretary shall require cost sharing in accordance with 2 section 988. 3 ‘‘(e) FEE TITLE.—The Secretary may vest fee title 4 or other property interests acquired under cooperative 5 agreements entered into under subsection (b)(4) in any 6 entity, including the United States. 7 ‘‘(f) REPORT.—Not later than 180 days after the 8 date on which the Secretary solicits applications under 9 subsection (c)(3), and annually thereafter, the Secretary 10 shall submit to the appropriate committees of jurisdiction 11 of the Senate and the House of Representatives a report 12 that includes— 13 ‘‘(1) a detailed description of how applications 14 for cooperative agreements under subsection (b) will 15 be solicited and evaluated, including— 16 ‘‘(A) a list of any activities carried out by 17 the Secretary to solicit or evaluate applications; 18 and 19 ‘‘(B) a process for ensuring that any 20 projects carried out under a cooperative agree- 21 ment are designed to result in the development 22 or demonstration of qualifying technologies; 23 ‘‘(2)(A) in the case of the first report under 24 this subsection, a detailed list of technical milestones 25 VerDate Sep 11 2014 20:22 Feb 24, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H5864.IH H5864 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 5864 IH for the development and demonstration of each 1 qualifying technology pursued under subsection (b); 2 and 3 ‘‘(B) in the case of each subsequent report 4 under this subsection, the progress made towards 5 achieving such technical milestones during the pe- 6 riod covered by the report; and 7 ‘‘(3) with respect to the demonstration program 8 established under subsection (c), includes— 9 ‘‘(A) an estimate of the cost of licensing, 10 permitting, constructing, and operating each 11 carbon capture facility expected to be con- 12 structed under that demonstration program; 13 ‘‘(B) a schedule for the planned construc- 14 tion and operation of each demonstration or 15 pilot project; and 16 ‘‘(C) an estimate of any financial assist- 17 ance, compensation, or incentives proposed to 18 be paid by the host State, Indian Tribe, or local 19 government with respect to each facility. 20 ‘‘(g) FUNDING.—For each of fiscal years 2020 21 through 2025, out of any amounts appropriated to the De- 22 partment to carry out fossil energy research and develop- 23 ment activities and not otherwise obligated, the Secretary 24 VerDate Sep 11 2014 20:22 Feb 24, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H5864.IH H5864 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 5864 IH may use to carry out this section not more than 1 $50,000,000.’’. 2 (b) CLERICAL AMENDMENT.—The table of contents 3 for the Energy Policy Act of 2005 (Public Law 109–58; 4 119 Stat. 600) is amended by inserting after the item re- 5 lating to section 968 the following: 6 ‘‘Sec. 969. Natural gas carbon capture research, development, and demonstra- tion program.’’. Æ VerDate Sep 11 2014 20:22 Feb 24, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6301 E:\BILLS\H5864.IH H5864 kjohnson on DSK79L0C42PROD with BILLS