42 USC 16292 - Carbon capture technology program

U.S Code last checked for updates: Nov 22, 2024

§ 16292.

Carbon capture technology program

(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

(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

(5)

Transformational technology

(A)

In general

(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

(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

(B)

Technical assistance

(C)

Eligible entities

(D)

Commercial-scale demonstration projects

(i)

In general

(ii)

Requirement

(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

(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

(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

(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.

(c)

Report

(1)

In general

(2)

Update

(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

(e)

Carbon capture test centers

(1)

In general

(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

(B)

Competitive basis

(C)

Priority criteria

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

(4)

Formula for awarding grants

(5)

Schedule

(A)

In general

(B)

Renewal

(6)

Termination

(7)

Authorization of appropriations

(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.)

cite as: 42 USC 16292