Clean Energy Future Through Innovation Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 9054 To advance clean power technology development and use through innovation and clean energy standards, and for other purposes. IN THE HOUSE OF REPRESENTATIVES DECEMBER 28, 2020 Mr. MCKINLEY (for himself and Mr. SCHRADER) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Science, Space, and Technology, Ways and Means, Natural Resources, Transportation and Infrastructure, and Over- sight and Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To advance clean power technology development and use through innovation and clean energy standards, 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; PURPOSES. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘Clean Energy Future Through Innovation Act of 2020’’. 5 (b) PURPOSES.—The purposes of this Act are— 6 VerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H9054.IH H9054 2 •HR 9054 IH (1) to further develop, demonstrate, and deploy 1 a broad range of advanced low- and zero-carbon 2 power technologies, including technologies related to 3 the generation, storage, transmission, security, resil- 4 ience, and efficient use of electric power; and 5 (2) to build a competitive market for advanced 6 low- and zero-carbon technologies and a robust 7 workforce, supply chain, and related legal, commer- 8 cial, and physical infrastructure. 9 SEC. 2. DEFINITIONS; TABLE OF CONTENTS. 10 (a) DEFINITIONS.—Except as otherwise provided, in 11 this Act: 12 (1) SECRETARY.—The term ‘‘Secretary’’ means 13 the Secretary of Energy. 14 (2) DEPARTMENT.—The term ‘‘Department’’ 15 means the Department of Energy. 16 (b) TABLE OF CONTENTS.—The table of contents for 17 this Act is as follows: 18 Sec. 1. Short title; purposes. Sec. 2. Definitions; table of contents. TITLE I—CARBON CAPTURE, UTILIZATION, AND STORAGE Subtitle A—Research, Development, and Demonstration for Carbon Capture, Utilization, and Storage Technologies Sec. 111. Fossil energy objectives. Sec. 112. Carbon capture technologies. Sec. 113. Carbon storage validation and testing. Sec. 114. Carbon utilization. Sec. 115. Advanced energy systems. Subtitle B—Deployment of Carbon Capture, Utilization, and Storage With Commercial-Scale Electricity Generation Facilities VerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6211 E:\BILLS\H9054.IH H9054 3 •HR 9054 IH Sec. 121. Deployment of carbon capture, utilization, and storage technology with commercial-scale electricity generation facilities. Subtitle C—Federal Support for Commercial Deployment of Carbon Capture, Utilization, and Storage Sec. 131. Enhancement of carbon dioxide sequestration credit. Sec. 132. Reform of loan guarantee program. Sec. 133. Private activity bonds for carbon dioxide capture facilities. Sec. 134. Extension of publicly traded partnership ownership structure. Sec. 135. Production tax credit for certain electricity generation using carbon capture utilization and storage. Sec. 136. Elective payment of credit. Subtitle D—Support for Carbon Dioxide Transportation and Sequestration Infrastructure Sec. 141. Securing geologic reservoirs for carbon dioxide. Sec. 142. Financial assistance for carbon dioxide sequestration infrastructure development. Sec. 143. Geologic carbon dioxide sequestration utilities. Sec. 144. Coordinated Federal permitting for carbon dioxide pipeline and se- questration facilities. Sec. 145. Interagency task force on carbon dioxide pipelines. TITLE II—INNOVATION IN RENEWABLE ENERGY, ENERGY EFFICIENCY, AND STORAGE Sec. 201. Establishment of technology performance and cost targets. Sec. 202. Advanced innovation and commercialization program. Sec. 203. Updating mobile homes. Sec. 204. Investment tax credits for energy battery storage, offshore wind, and certain hydropower technologies. Sec. 205. Extension of production tax credit for solar and on-shore wind. Sec. 206. Renewal of qualifying advanced energy project credit. Sec. 207. Performance-based tax credits for commercial and residential build- ings. Sec. 208. Extension of publicly traded partnership ownership structure to re- newable energy projects. Sec. 209. Manufacturer credit for high-efficiency heat pumps and heat pump water heaters. Sec. 210. Other authorizations of appropriations. TITLE III—EXISTING AND ADVANCED NUCLEAR POWER PLANTS Sec. 301. Zero-emissions credit program. Sec. 302. Investment tax credit for nuclear energy property. Sec. 303. Expanding Federal clean electricity purchasing requirements. Sec. 304. Modernizing the Nuclear Regulatory Commission. Sec. 305. Demonstration and early deployment of advanced nuclear reactors. Sec. 306. Advanced nuclear fuel security program. Sec. 307. Authorization of appropriations for loan guarantees for advanced nu- clear facilities. Sec. 308. Expanding the production tax credit for nuclear power. Sec. 309. Authorizations of appropriations for innovation in nuclear power. TITLE IV—CLEAN ELECTRICITY STANDARD VerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6211 E:\BILLS\H9054.IH H9054 4 •HR 9054 IH Sec. 401. Certification of cost-effective market penetration of clean electricity technologies. Sec. 402. Federal clean electricity standard. Sec. 403. Regional clean electricity planning models. Sec. 404. Stand-by emission performance standards. TITLE I—CARBON CAPTURE, 1 UTILIZATION, AND STORAGE 2 Subtitle A—Research, Develop- 3 ment, and Demonstration for 4 Carbon Capture, Utilization, 5 and Storage Technologies 6 SEC. 111. FOSSIL ENERGY OBJECTIVES. 7 Section 961 of the Energy Policy Act of 2005 (42 8 U.S.C. 16291) is amended— 9 (1) in subsection (a), by adding at the end the 10 following: 11 ‘‘(8) Improving the conversion, use, and storage 12 of carbon dioxide produced from fossil fuels. 13 ‘‘(9) Lowering greenhouse gas emissions for all 14 fossil fuel production, generation, delivery, and utili- 15 zation in electricity generation and other industry, to 16 the maximum extent possible. 17 ‘‘(10) Preventing, predicting, monitoring, and 18 mitigating the unintended leaking of carbon dioxide 19 or other fossil fuel-related emissions into the atmos- 20 phere. 21 VerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H9054.IH H9054 5 •HR 9054 IH ‘‘(11) Developing carbon utilization tech- 1 nologies, products, and methods, including carbon 2 use and reuse for commercial application. 3 ‘‘(12) Developing carbon capture technologies, 4 including direct air capture technologies.’’; 5 (2) in subsection (b), by striking paragraphs 6 (1) through (3) and inserting the following: 7 ‘‘(1) $2,200,000,000 for fiscal year 2021; 8 ‘‘(2) $2,200,000,000 for fiscal year 2022; 9 ‘‘(3) $2,200,000,000 for fiscal year 2023; 10 ‘‘(4) $2,200,000,000 for fiscal year 2024; and 11 ‘‘(5) $2,200,000,000 for fiscal year 2025.’’; and 12 (3) by striking subsections (c) through (e) and 13 inserting the following: 14 ‘‘(c) LIMITATION.—None of the funds authorized 15 under this section may be used for Fossil Energy Environ- 16 mental Restoration or Import/Export Authorization.’’. 17 SEC. 112. CARBON CAPTURE TECHNOLOGIES. 18 (a) CARBON CAPTURE PROGRAM.—Section 962 of 19 the Energy Policy Act of 2005 (42 U.S.C. 16292) is 20 amended to read as follows: 21 ‘‘SEC. 962. CARBON CAPTURE TECHNOLOGIES. 22 ‘‘(a) IN GENERAL.—The Secretary shall conduct a 23 program of research, development, demonstration, and 24 VerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H9054.IH H9054 6 •HR 9054 IH commercial application of carbon capture technologies. 1 The program shall advance the development and use of— 2 ‘‘(1) carbon capture technologies in conjunction 3 with coal and natural gas utilization in power sys- 4 tems and industry; 5 ‘‘(2) innovations to improve the efficiency of, 6 and decrease emissions at, existing power plants; 7 ‘‘(3) advanced separation technologies and di- 8 rect air capture technologies; and 9 ‘‘(4) carbon capture technologies used in con- 10 junction with the production from fossil fuel of hy- 11 drogen or ammonia to be used in power systems. 12 ‘‘(b) COAL APPLICATIONS.—In conducting the pro- 13 gram under subsection (a), the Secretary shall devote sub- 14 stantial resources to carbon capture technologies for coal 15 applications. 16 ‘‘(c) LARGE-SCALE PILOTS.— 17 ‘‘(1) IN GENERAL.—In supporting technology 18 development activities under this section, the Sec- 19 retary is encouraged to support large-scale pilot 20 projects that test carbon capture technologies on 21 power systems. Support for such large-scale pilot 22 projects shall be subject to the cost sharing require- 23 ments in section 988(b). 24 VerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H9054.IH H9054 7 •HR 9054 IH ‘‘(2) DEFINITION.—For purposes of this sec- 1 tion, the term ‘large-scale pilot project’ means a 2 pilot project that— 3 ‘‘(A) represents the scale of technology de- 4 velopment beyond laboratory development and 5 bench scale testing, but not yet advanced to the 6 point of being tested under operational condi- 7 tions at commercial scale; 8 ‘‘(B) represents the scale of technology 9 necessary to gain the operational data needed 10 to understand the technical and performance 11 risks of the technology before the application of 12 that technology at commercial scale or in com- 13 mercial-scale demonstration; and 14 ‘‘(C) is large enough— 15 ‘‘(i) to validate scaling factors; and 16 ‘‘(ii) to demonstrate the interaction 17 between major components so that control 18 philosophies for a new process can be de- 19 veloped and enable the technology to ad- 20 vance from large-scale pilot plant applica- 21 tion to commercial-scale demonstration or 22 application. 23 ‘‘(d) COST AND PERFORMANCE GOALS.—In carrying 24 out the development, demonstration, and commercial ap- 25 VerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H9054.IH H9054 8 •HR 9054 IH plication activities under subsection (a), the Secretary 1 shall consider cost and performance goals, in order to ad- 2 vance development and deployment of carbon capture 3 technologies that can become cost competitive in commer- 4 cial applications. 5 ‘‘(e) CARBON CAPTURE PILOT TEST CENTERS.— 6 ‘‘(1) IN GENERAL.—Not later than 1 year after 7 the date of the enactment of the Clean Energy Fu- 8 ture Through Innovation Act of 2020, the Secretary 9 shall award grants to one or more entities for the 10 operation of Carbon Capture Test Centers (in this 11 subsection referred to as the ‘Centers’) to provide 12 unique testing capabilities for innovative power sys- 13 tem technologies to capture carbon dioxide or other- 14 wise produce a carbon dioxide stream suitable for 15 utilization or storage. 16 ‘‘(2) PURPOSE.—The Centers shall— 17 ‘‘(A) advance research, development, dem- 18 onstration, and commercial application of car- 19 bon capture technologies for power systems; 20 and 21 ‘‘(B) test technologies that represent the 22 scale of technology development beyond labora- 23 tory testing, but not yet advanced to testing 24 VerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H9054.IH H9054 9 •HR 9054 IH under operational conditions at commercial 1 scale. 2 ‘‘(3) APPLICATION.—An entity seeking to oper- 3 ate a Center under this subsection shall submit to 4 the Secretary an application at such time and in 5 such manner as the Secretary may require. 6 ‘‘(4) CRITERIA.—In evaluating applications to 7 operate the Centers under this subsection, the Sec- 8 retary shall prioritize grants to applicants that meet 9 one or more of the following criteria: 10 ‘‘(A) The applicant has access to existing 11 or planned research facilities with modular 12 technology capabilities. 13 ‘‘(B) The applicant is an institution of 14 higher education with established expertise in 15 engineering and design for carbon capture tech- 16 nologies, or has a partnership with such an in- 17 stitution. 18 ‘‘(C) The applicant has access to existing 19 research and test facilities for precombustion, 20 postcombustion, or oxy-combustion technologies. 21 ‘‘(D) The applicant has capability to test 22 integration of carbon capture technologies with 23 utility-scale power plants. 24 VerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H9054.IH H9054 10 •HR 9054 IH ‘‘(E) Commercial market participants, in- 1 cluding equipment and technology suppliers and 2 power generators, are involved in the proposed 3 Center. 4 ‘‘(5) CONSIDERATIONS.—In awarding grants 5 for the operation of the Centers under this sub- 6 section, the Secretary shall ensure that— 7 ‘‘(A) the Centers support pilot testing ap- 8 propriate to diverse regions and resource char- 9 acteristics; and 10 ‘‘(B) each Center receiving such a grant 11 demonstrates unique research capabilities, 12 unique regional benefits, or new technology de- 13 velopment opportunities. 14 ‘‘(6) SCHEDULE.—Each grant to operate a 15 Center under this subsection shall be awarded for a 16 term of not more than 5 years, subject to the avail- 17 ability of appropriations. The Secretary may renew 18 such 5-year term without limit, subject to a rigorous 19 merit review. 20 ‘‘(7) COST SHARING.—The Secretary shall re- 21 quire cost sharing under this subsection in accord- 22 ance with section 988(b). 23 ‘‘(8) TERMINATION.—The Secretary may elimi- 24 nate a Center during any 5-year term described in 25 VerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H9054.IH H9054 11 •HR 9054 IH paragraph (6) if such Center is found to be under- 1 performing. 2 ‘‘(f) DEMONSTRATION PROJECTS.— 3 ‘‘(1) IN GENERAL.—The Secretary may fund 4 commercial-scale demonstration projects for power 5 systems that test the scale of technology necessary 6 for commercial operation, in accordance with this 7 subsection. 8 ‘‘(2) ENGINEERING AND DESIGN STUDIES.— 9 The Secretary is authorized to fund engineering and 10 design studies for commercial-scale demonstration 11 projects for power systems in addition to, or in ad- 12 vance of, issuing an award for a demonstration 13 project under this subsection. 14 ‘‘(3) APPLICATION.—An entity seeking an 15 award to conduct a demonstration project under thi [Text truncated for display. Full text available on Congress.gov.]