42 U.S.C. § 16292 — Carbon capture technology program

submitted 6 years ago by Pub. L. 109-58 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 2,794 words · no verdicts yet

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This section sets up a carbon capture technology program at the Energy Department to develop and test better ways to capture carbon dioxide from coal and natural gas power plants. It funds research, pilot projects, and at least six full demonstration facilities, plus test centers, through fiscal year 2026. Congress requires regular progress reports and a GAO study of how the projects are managed.

(a) Definitions. (1) A "large-scale pilot project" is bigger than lab or bench testing but not yet full commercial scale — big enough to validate how the technology scales up and how its major parts work together. (2) "Natural gas" includes natural gas itself, liquid petroleum gas, synthetic gas from petroleum, mixtures of these, or biomethane. (3) A "natural gas electric generation facility" is any plant, new or existing, that makes electricity from natural gas, including simple-cycle, combined-cycle, combined heat and power plants, and hydrogen-producing steam methane reformers used for electricity. (4) "Program" means the program created in subsection (b). (5) "Transformational technology" is a technology that significantly improves performance, efficiency, cost, or emissions compared to what existed on December 27, 2020 — including things like advanced combustion systems, supercritical carbon dioxide cycles, better turbines, carbon capture/storage systems, small modular coal technology, fuel cells, gasification, thermal cycling, or anything else the Secretary calls transformational. (b) The carbon capture technology program. (1) The Secretary must create this program to develop technologies that meaningfully improve coal and natural gas use, including at manufacturing and industrial sites. (2) It must include: (A) research and development; (B) large-scale pilot projects; (C) demonstration projects; (D) front-end engineering and design work for carbon capture; and (E) front-end engineering and design work for the pipelines and infrastructure that move captured carbon dioxide. (3) After consulting industry and other groups, the Secretary must set goals covering: (A) improving performance of coal and gas power plants (reliability, efficiency, addressing pollution, modular technology, dispatchable operation, and transformational conversion technology); (B) using carbon capture and storage to cut emissions from those plants (accelerating deployment, finding safe underground storage sites, improving how captured carbon is used and stored, cutting greenhouse gases as much as practical, developing carbon-reuse products, developing technologies that remove more carbon than they emit, and capturing carbon from hydrogen production); (C) cutting non-carbon-dioxide pollution and reducing water use at these plants; (D) cutting emissions from manufacturing and industrial facilities, including biofuel plants and carbon-intensive manufacturers; (E) signing cooperative agreements for demonstration and pilot projects; and (F) identifying obstacles to commercial deployment. (4) Demonstration projects. (A) By September 30, 2025, the Secretary must competitively select projects and sign agreements to build and run 6 demonstration facilities that capture carbon dioxide from coal plants, gas plants, and industrial facilities. (B) The Secretary must help these projects get the permits and licenses they need. (C) Agreements can go to industry, partnerships with National Laboratories, universities, or other appropriate groups. (D) The Secretary must also create a commercialization program funding larger-scale demonstrations — including up to 2 extra projects per technology type beyond the first one built. (E) Of the 6 demonstration projects: 2 must capture carbon from natural gas plants, 2 from coal plants, and 2 from non-power industrial facilities. (F) Each project must aim to advance deployment of capture technology, be partly funded by private money, and, if needed, arrange to sell off the captured carbon dioxide. (G) Entities must apply as the Secretary directs; in reviewing applications, the Secretary must try to spread projects across different regions, plant types, and technologies, and use existing partnerships. (H) Within one year of December 27, 2020, the Government Accountability Office must study and report to Congress on how well the Department managed these demonstration projects, looking at applicant qualifications, project management, market factors, contract completion, regulatory hurdles, and construction problems; the Secretary must consider and may adopt GAO's recommendations. (I) Within 180 days of first requesting applications, and every year after, the Secretary must report to Congress on how applications were solicited and evaluated, including technical milestones, progress toward them, cost estimates, construction schedules, and any state or local financial incentives involved. (5) Coordination. The Assistant Secretary for Fossil Energy must run the carbon capture, use, and storage work in coordination with other Department offices and the National Laboratories. (6) Required consultation. In running the program, the Secretary must pursue international collaboration (considering advice from the National Coal Council and National Petroleum Council), use existing authority to encourage that cooperation, and consult with coal and gas producers, industries that use them, promotional groups, environmental groups, labor groups, and consumer groups. (c) Reports to Congress. (1) Within 18 months of December 27, 2020, the Secretary must report to Congress describing the program's goals and objectives. (2) At least every two years after that first report, the Secretary must report on progress toward those goals. (d) Funding. (1) Congress authorizes money to remain available until spent: (A) for research and development — $230,000,000 each for 2021 and 2022, then $150,000,000 each for 2023 through 2025; (B) for large-scale pilot projects — $225,000,000 each for 2021 and 2022, $200,000,000 each for 2023 and 2024, and $150,000,000 for 2025; (C) for demonstration projects — $500,000,000 each year from 2021 through 2024, and $600,000,000 for 2025; (D) for front-end engineering and design on carbon capture — $50,000,000 each year, 2021 through 2024; and (E) for front-end engineering and design on carbon dioxide transport infrastructure — $100,000,000 total for 2022 through 2026. (2) Pilot project funding is subject to cost-sharing rules from another section. (e) Carbon capture test centers. (1) Within two years of December 27, 2020, the Secretary must award grants to run one or more test centers for carbon capture technology. (2) Each center must advance research and development, support pilot and demonstration projects, and develop engineering design and economic analysis. (3)–(4) The Secretary selects centers competitively, based on chosen criteria, and may develop a funding formula. In choosing, the Secretary must prioritize applicants with existing research facilities, university engineering expertise, or existing testing capability, and must prioritize centers that already existed on December 27, 2020. (5) Each grant lasts up to 5 years and (6) may be renewed for more 5-year terms, or ended early if a center is underperforming. (7) Congress authorizes $25,000,000 per year for this, 2021 through 2025.

the actual law source: uscode.house.gov ↗public domain

(a) Definitions

In this section:

(1) Large-scale pilot project

The term “large-scale pilot project” means a pilot project that—

(A)

represents the scale of technology development beyond laboratory development and bench scale testing, but not yet advanced to the point of being tested under real operational conditions at commercial scale;

(B)

represents the scale of technology necessary to gain the operational data needed to understand the technical and performance risks of the technology before the application of that technology at commercial scale or in commercial-scale demonstration; and

(C)

is large enough—

(i)

to validate scaling factors; and

(ii)

to demonstrate the interaction between major components so that control philosophies for a new process can be developed and enable the technology to advance from large-scale pilot project application to commercial-scale demonstration or application.

(2) Natural gas

The term “natural gas” means any fuel consisting in whole or in part of—

(A)

natural gas;

(B)

liquid petroleum gas;

(C)

synthetic gas derived from petroleum or natural gas liquids;

(D)

any mixture of natural gas and synthetic gas; or

(E)

biomethane.

(3) Natural gas electric generation facility

(A) In general

The term “natural gas electric generation facility” means a facility that generates electric energy using natural gas as the fuel.

(B) Inclusions

The term “natural gas electric generation facility” includes without limitation a new or existing—

(i)

simple cycle plant;

(ii)

combined cycle plant;

(iii)

combined heat and power plant; or

(iv)

steam methane reformer that produces hydrogen from natural gas for use in the production of electric energy.

(4) Program

The term “program” means the program established under subsection (b)(1).

(5) Transformational technology

(A) In general

The term “transformational technology” means a technology that represents a significant change in the methods used to convert energy that will enable a step change in performance, efficiency, cost of electricity, and reduction of emissions as compared to the technology in existence on December 27, 2020.

(B) Inclusions

The term “transformational technology” includes a broad range of potential technology improvements, including—

(i)

thermodynamic improvements in energy conversion and heat transfer, including—

(I)

advanced combustion systems, including oxygen combustion systems and chemical looping; and

(II)

the replacement of steam cycles with supercritical carbon dioxide cycles;

(ii)

improvements in steam or carbon dioxide turbine technology;

(iii)

improvements in carbon capture, utilization, and storage systems technology;

(iv)

improvements in small-scale and modular coal-fired technologies with reduced carbon output or carbon capture that can support incremental power generation capacity additions;

(v)

fuel cell technologies for low-cost, high-efficiency modular power systems;

(vi)

advanced gasification systems;

(vii)

thermal cycling technologies; and

(viii)

any other technology the Secretary recognizes as transformational technology.

(b) Carbon capture technology program

(1) In general

The Secretary shall establish a carbon capture technology program for the development of transformational technologies that will significantly improve the efficiency, effectiveness, costs, emissions reductions, and environmental performance of coal and natural gas use, including in manufacturing and industrial facilities.

(2) Requirements

The program shall include—

(A)

a research and development program;

(B)

large-scale pilot projects;

(C)

demonstration projects, in accordance with paragraph (4);

(D)

a front-end engineering and design program for carbon capture technologies; and

(E)

a front-end engineering and design program for carbon dioxide transport infrastructure necessary to enable deployment of carbon capture, utilization, and storage technologies.

(3) Program goals and objectives

In consultation with the interested entities described in paragraph (6)(C), the Secretary shall develop goals and objectives for the program to be applied to the transformational technologies developed within the program, taking into consideration the following:

(A)

Increasing the performance of coal electric generation facilities and natural gas electric generation facilities, including by—

(i)

ensuring reliable, low-cost power from new and existing coal electric generation facilities and natural gas electric generation facilities;

(ii)

achieving high conversion efficiencies;

(iii)

addressing emissions of carbon dioxide and other air pollutants;

(iv)

developing small-scale and modular technologies to support incremental capacity additions and load following generation, in addition to large-scale generation technologies;

(v)

supporting dispatchable operations for new and existing applications of coal and natural gas generation; and

(vi)

accelerating the development of technologies that have transformational energy conversion characteristics.

(B)

Using carbon capture, utilization, and sequestration technologies to decrease the carbon dioxide emissions, and the environmental impact from carbon dioxide emissions, from new and existing coal electric generation facilities and natural gas electric generation facilities, including by—

(i)

accelerating the development, deployment, and commercialization of technologies to capture and sequester carbon dioxide emissions from new and existing coal electric generation facilities and natural gas electric generation facilities;

(ii)

supporting sites for safe geological storage of large volumes of anthropogenic sources of carbon dioxide and the development of the infrastructure needed to support a carbon dioxide utilization and storage industry;

(iii)

improving the conversion, utilization, and storage of carbon dioxide produced from fossil fuels and other anthropogenic sources of carbon dioxide;

(iv)

lowering greenhouse gas emissions for all fossil fuel production, generation, delivery, and use, to the maximum extent practicable;

(v)

developing carbon utilization technologies, products, and methods, including carbon use and reuse for commercial application;

(vi)

developing net-negative carbon dioxide emissions technologies; and

(vii)

developing technologies for the capture of carbon dioxide produced during the production of hydrogen from natural gas.

(C)

Decreasing the non-carbon dioxide relevant environmental impacts of coal and natural gas production, including by—

(i)

further reducing non-carbon dioxide air emissions; and

(ii)

reducing the use, and managing the discharge, of water in power plant operations.

(D)

Accelerating the development of technologies to significantly decrease emissions from manufacturing and industrial facilities, including—

(i)

nontraditional fuel manufacturing facilities, including ethanol or other biofuel production plants or hydrogen production plants; and

(ii)

energy-intensive manufacturing facilities that produce carbon dioxide as a byproduct of operations.

(E)

Entering into cooperative agreements to carry out and expedite demonstration projects (including pilot projects) to demonstrate the technical and commercial viability of technologies to reduce carbon dioxide emissions released from coal electric generation facilities and natural gas electric generation facilities for commercial deployment.

(F)

Identifying any barriers to the commercial deployment of any technologies under development for the capture of carbon dioxide produced by coal electric generation facilities and natural gas electric generation facilities.

(4) Demonstration projects

(A) In general

In carrying out the program, the Secretary shall establish a demonstration program under which the Secretary, through a competitive, merit-reviewed process, shall enter into cooperative agreements by not later than September 30, 2025, for demonstration projects to demonstrate the construction and operation of 6 facilities to capture carbon dioxide from coal electric generation facilities, natural gas electric generation facilities, and industrial facilities.

(B) Technical assistance

The Secretary, to the maximum extent practicable, shall provide technical assistance to any eligible entity seeking to enter into a cooperative agreement described in subparagraph (A) for the purpose of obtaining any necessary permits and licenses to demonstrate qualifying technologies.

The Secretary may enter into cooperative agreements under subparagraph (A) with industry stakeholders, including any industry stakeholder operating in partnership with the National Laboratories, institutions of higher education, multiinstitutional collaborations, and other appropriate entities.

(D) Commercial-scale demonstration projects

(i) In general

In carrying out the program, the Secretary shall establish a carbon capture technology commercialization program to demonstrate substantial improvements in the efficiency, effectiveness, cost, and environmental performance of carbon capture technologies for power, industrial, and other commercial applications.

(ii) Requirement

The program established under clause (i) shall include funding for commercial-scale carbon capture technology demonstrations of projects supported by the Department, including projects in addition to the projects described in subparagraph (A), including funding for not more than 2 projects to demonstrate substantial improvements in a particular technology type beyond the first of a kind demonstration and to account for considerations described in subparagraph (G).

(E) Requirement

Of the demonstration projects carried out under subparagraph (A)—

(i)

2 shall be designed to capture carbon dioxide from a natural gas electric generation facility;

(ii)

2 shall be designed to capture carbon dioxide from a coal electric generation facility; and

(iii)

2 shall be designed to capture carbon dioxide from an industrial facility not purposed for electric generation.

(F) Goals

Each demonstration project under the demonstration program under subparagraph (A)—

(i)

shall be designed to further the development, deployment, and commercialization of technologies to capture and sequester carbon dioxide emissions from new and existing coal electric generation facilities, natural gas electric generation facilities, and industrial facilities;

(ii)

shall be financed in part by the private sector; and

(iii)

if necessary, shall secure agreements for the offtake of carbon dioxide emissions captured by qualifying technologies during the project.

(G) Applications

(i) In general

To be eligible to enter into an agreement with the Secretary for a demonstration project under subparagraphs (A) and (D), an entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.

(ii) Review of applications

In reviewing applications submitted under clause (i), the Secretary, to the maximum extent practicable, shall—

(I)

ensure a broad geographic distribution of project sites;

(II)

ensure that a broad selection of electric generation facilities are represented;

(III)

ensure that a broad selection of technologies are represented; and

(IV)

leverage existing public-private partnerships and Federal resources.

(H) GAO study and report

(i) Study and report

(I) In general

Not later than 1 year after December 27, 2020, the Comptroller General of the United States shall conduct, and submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Science, Space, and Technology of the House of Representatives a report on the results of, a study of the successes, failures, practices, and improvements of the Department in carrying out demonstration projects under this paragraph.

(II) Considerations

In conducting the study under subclause (I), the Comptroller General of the United States shall consider—

(aa)

applicant and contractor qualifications;

(bb)

project management practices at the Department;

(cc)

economic or market changes and other factors impacting project viability;

(dd)

completion of third-party agreements, including power purchase agreements and carbon dioxide offtake agreements;

(ee)

regulatory challenges; and

(ff)

construction challenges.

(ii) Recommendations

The Secretary shall—

(I)

consider any relevant recommendations, as determined by the Secretary, provided in the report required under clause (i)(I); and

(II)

adopt such recommendations as the Secretary considers appropriate.

(I) Report

(i) In general

Not later than 180 days after the date on which the Secretary solicits applications under subparagraph (G), and annually thereafter, the Secretary shall submit to the appropriate committees of jurisdiction of the Senate and the House of Representatives a report that includes a detailed description of how the applications under the demonstration program established under subparagraph (A) were or will be solicited and how the applications were or will be evaluated, including—

(I)

a list of any activities carried out by the Secretary to solicit or evaluate the applications; and

(II)

a process for ensuring that any projects carried out under a cooperative agreement entered into under subparagraph (A) are designed to result in the development or demonstration of qualifying technologies.

(ii) Inclusions

The Secretary shall include—

(I)

in the first report required under clause (i), a detailed list of technical milestones for the development and demonstration of each qualifying technology pursued under the demonstration program established under subparagraph (A);

(II)

in each subsequent report required under clause (i), a description of the progress made towards achieving the technical milestones described in subclause (I) during the applicable period covered by the report; and

(III)

in each report required under clause (i)—

(aa)

an estimate of the cost of licensing, permitting, constructing, and operating each carbon capture facility expected to be constructed under the demonstration program established under subparagraph (A);

(bb)

a schedule for the planned construction and operation of each demonstration or pilot project under the demonstration program; and

(cc)

an estimate of any financial assistance, compensation, or incentives proposed to be paid by the host State, Indian Tribe, or local government with respect to each facility described in item (aa).

(5) Intraagency coordination for carbon capture, utilization, and sequestration activities

The carbon capture, utilization, and sequestration activities described in paragraph (3)(B) shall be carried out by the Assistant Secretary for Fossil Energy, in coordination with the heads of other relevant offices of the Department and the National Laboratories.

(6) Consultations required

In carrying out the program, the Secretary shall—

(A)

undertake international collaborations, taking into consideration the recommendations of the National Coal Council and the National Petroleum Council;

(B)

use existing authorities to encourage international cooperation; and

(C)

consult with interested entities, including—

(i)

coal and natural gas producers;

(ii)

industries that use coal and natural gas;

(iii)

organizations that promote coal, advanced coal, and natural gas technologies;

(iv)

environmental organizations;

(v)

organizations representing workers; and

(vi)

organizations representing consumers.

(1) In general

Not later than 18 months after December 27, 2020, the Secretary shall submit to Congress a report describing the program goals and objectives adopted under subsection (b)(3).

(2) Update

Not less frequently than once every 2 years after the initial report is submitted under paragraph (1), the Secretary shall submit to Congress a report describing the progress made towards achieving the program goals and objectives adopted under subsection (b)(3).

(d) Funding

(1) Authorization of appropriations

There are authorized to be appropriated to the Secretary to carry out this section, to remain available until expended—

(A)

for activities under the research and development program component described in subsection (b)(2)(A)—

(i)

$230,000,000 for each of fiscal years 2021 and 2022; and

(ii)

$150,000,000 for each of fiscal years 2023 through 2025;

(B)

subject to paragraph (2), for activities under the large-scale pilot projects program component described in subsection (b)(2)(B)—

(i)

$225,000,000 for each of fiscal years 2021 and 2022;

(ii)

$200,000,000 for each of fiscal years 2023 and 2024; and

(iii)

$150,000,000 for fiscal year 2025;

(C)

for activities under the demonstration projects program component described in subsection (b)(2)(C)—

(i)

$500,000,000 for each of fiscal years 2021 though 2024; and

(ii)

$600,000,000 for fiscal year 2025;

(D)

for activities under the front-end engineering and design program described in subsection (b)(2)(D), $50,000,000 for each of fiscal years 2021 through 2024; and

(E)

for activities under the front-end engineering and design program described in subsection (b)(2)(E), $100,000,000 for the period of fiscal years 2022 through 2026.

(2) Cost sharing for large-scale pilot projects

Activities under subsection (b)(2)(B) shall be subject to the cost-sharing requirements of section 16352(b) of this title.

(e) Carbon capture test centers

(1) In general

Not later than 2 years after December 27, 2020, the Secretary shall award grants to 1 or more entities for the operation of 1 or more test centers (referred to in this subsection as a “Center”) to provide distinct testing capabilities for innovative carbon capture technologies.

(2) Purpose

Each Center shall—

(A)

advance research, development, demonstration, and commercial application of carbon capture technologies;

(B)

support large-scale pilot projects and demonstration projects and test carbon capture technologies; and

(C)

develop front-end engineering design and economic analysis.

(3) Selection

(A) In general

The Secretary shall select entities to receive grants under this subsection according to such criteria as the Secretary may develop.

(B) Competitive basis

The Secretary shall select entities to receive grants under this subsection on a competitive basis.

In selecting entities to receive grants under this subsection, the Secretary shall prioritize consideration of applicants that—

(i)

have access to existing or planned research facilities for carbon capture technologies;

(ii)

are institutions of higher education with established expertise in engineering for carbon capture technologies, or partnerships with such institutions of higher education; or

(iii)

have access to existing research and test facilities for bulk materials design and testing, component design and testing, or professional engineering design.

(D) Existing centers

In selecting entities to receive grants under this subsection, the Secretary shall prioritize carbon capture test centers in existence on December 27, 2020.

(4) Formula for awarding grants

The Secretary may develop a formula for awarding grants under this subsection.

(5) Schedule

(A) In general

Each grant awarded under this subsection shall be for a term of not more than 5 years, subject to the availability of appropriations.

(B) Renewal

The Secretary may renew a grant for 1 or more additional 5-year terms, subject to a competitive merit review and the availability of appropriations.

(6) Termination

To the extent otherwise authorized by law, the Secretary may eliminate, and terminate grant funding under this subsection for, a Center during any 5-year term described in paragraph (5) if the Secretary determines that the Center is underperforming.

(7) Authorization of appropriations

There is authorized to be appropriated to carry out this subsection $25,000,000 for each of fiscal years 2021 through 2025.

Source credit: (Pub. L. 109–58, title IX, § 962, as added Pub. L. 116–260, div. Z, title IV, § 4002(a), Dec. 27, 2020, 134 Stat. 2528; amended Pub. L. 117–58, div. D, title III, § 40303, Nov. 15, 2021, 135 Stat. 988.)

history & why it existsrecord from the source credit

2020Enacted · Pub. L. 109-58 · 134 Stat. 2528
2021Amended · Pub. L. 117-58 · 135 Stat. 988

A history note hasn’t been published yet. The record shows enactment by Pub. L. 109-58 on 2020-12-27.

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