[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3589 Introduced in Senate (IS)]
111th CONGRESS
2d Session
S. 3589
To provide financial incentives and a regulatory framework to
facilitate the development and early deployment of carbon capture and
sequestration technologies, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 14, 2010
Mr. Rockefeller (for himself and Mr. Voinovich) introduced the
following bill; which was read twice and referred to the Committee on
Energy and Natural Resources
_______________________________________________________________________
A BILL
To provide financial incentives and a regulatory framework to
facilitate the development and early deployment of carbon capture and
sequestration technologies, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Carbon Capture and Sequestration
Deployment Act of 2010''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
TITLE I--CARBON CAPTURE AND SEQUESTRATION INNOVATION PROGRAM
Sec. 101. Partnerships for carbon capture and sequestration.
Sec. 102. Annual Department of Energy assessment.
TITLE II--CARBON CAPTURE AND SEQUESTRATION PROJECTS
Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Special funding program for development and deployment of
carbon capture, sequestration, and
conversion technologies.
Sec. 204. Carbon capture and sequestration program partnership council.
Sec. 205. Functions and administration of the special funding program.
Sec. 206. Assessments and funding.
Sec. 207. ERCOT.
Sec. 208. Determination of fossil fuel-based electricity deliveries.
Sec. 209. Compliance with assessments.
Sec. 210. Midcourse review.
Sec. 211. Recovery of costs.
TITLE III--CCS TECHNOLOGY STANDARD FOR POWERPLANTS
Sec. 301. CCS standards for coal-fueled power plants.
Sec. 302. Consolidated review of Federal authorizations.
TITLE IV--CARBON STORAGE STEWARDSHIP
Sec. 401. Short title.
Sec. 402. Purpose.
Sec. 403. Definitions.
Sec. 404. Stewardship responsibility.
Sec. 405. Responsibility for payment of claims.
Sec. 406. Carbon Storage Stewardship Trust Fund.
Sec. 407. Payments from the Trust Fund.
Sec. 408. Carbon Storage Stewardship Board.
Sec. 409. Adjudication of public claims.
Sec. 410. First mover projects.
Sec. 411. Relationship to other law.
TITLE I--CARBON CAPTURE AND SEQUESTRATION INNOVATION PROGRAM
SEC. 101. PARTNERSHIPS FOR CARBON CAPTURE AND SEQUESTRATION.
(a) Establishment of Program.--
(1) In general.--Within 12 months after the date of
enactment of this Act, the Secretary of Energy shall establish
a cooperative industry-government research and development
program, in addition to and in cooperation with the Office of
Fossil Energy's carbon capture and sequestration research and
development program, to demonstrate novel and innovative
technologies--
(A) to capture or prevent carbon dioxide emissions
from carbon-based fuels;
(B) to enable the beneficial use of carbon dioxide;
or
(C) to enable the long-term storage of carbon
dioxide.
(2) Participation of national laboratories and
universities.--The program shall include the participation of
the National Energy Technology Laboratory and may include the
participation of other National Laboratories, universities, and
other appropriate entities.
(b) Cost Sharing.--For purposes of developing and demonstrating the
technologies or approaches referred to in subsection (a), the Secretary
shall provide at least 80 percent of the cost of the development
projects and the industry participant shall provide not more than 20
percent of such cost.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section--
(1) $100,000,000 for each of the fiscal years 2011 through
2015;
(2) $50,000,000 for each of the fiscal years 2016 through
2020; and
(3) $20,000,000 for each of the fiscal years 2021 through
2025.
SEC. 102. ANNUAL DEPARTMENT OF ENERGY ASSESSMENT.
(a) In General.--
(1) Department of energy report.--Within 1 year after the
date of enactment of this Act and annually thereafter until the
Secretary of Energy determines that technology preventing the
emission of, capturing, transporting, permanently storing or
sequestering, or putting to beneficial use carbon dioxide is
available to the commercial marketplace, the Department of
Energy shall conduct an assessment in accordance with
subsection (b) of this section of the existing Federal programs
supporting such technology and report to the Secretary and the
appropriate authorizing and appropriating committees of the
Congress on the results of the assessment.
(2) Government accountability office review.--Within 1 year
after the first report is provided to the Secretary and to the
appropriate authorizing and appropriating committees of the
Congress under paragraph (1) and subsequently as needed until
technology preventing the emission of, capturing, transporting,
permanently storing or sequestering, and putting to beneficial
use carbon dioxide is available to the commercial marketplace,
the Comptroller General shall conduct a review of the report
described in paragraph (1) in accordance with subsection (c) of
this section.
(b) Department of Energy Report Requirements.--The Department of
Energy shall include in the report--
(1) a detailed description of the existing programs,
including each major program area, that conducts or supports
research, development, demonstration, and deployment of
technology--
(A) to prevent the emission of carbon dioxide or
capture of carbon dioxide from sources, including
fossil fuel-based power plants;
(B) to transport carbon dioxide;
(C) to store or sequester captured carbon dioxide
permanently; or
(D) to put captured carbon dioxide to beneficial
use;
(2) an assessment, based upon government laboratory
research experience, available industry research experience,
and such other data and information as the Department of Energy
deems useful and appropriate, to determine whether each major
program area and principal projects within these areas are
designed to, and will, advance fundamental knowledge or achieve
significant technical advancement and materially improve the
technology base to effectively address the prevention of carbon
dioxide emissions or capture of carbon dioxide or the
transport, permanent storage, or beneficial use of captured
carbon dioxide; and
(3) an assessment of the Department of Energy's estimated
time frame and costs necessary to reasonably conclude that
technology will be available to the commercial marketplace.
(c) Government Accountability Office Review Requirements.--The
Government Accountability Office shall include in its review--
(1) an analysis of the Department of Energy's estimated
time frames and costs as reported pursuant to subsection (b)(3)
of this section;
(2) any recommendations that the Comptroller General deems
appropriate and useful to improve the likelihood of achieving
technological advancements to mitigate carbon dioxide emissions
or to expedite the availability of carbon capture and
sequestration technology for the commercial marketplace;
(3) an assessment of any legal or regulatory impediment by
any Federal agency or department that has arisen in relation to
the deployment of carbon capture and storage technology,
including any delays in the permitting of such technology or
the construction or operation of any such facility; and
(4) any other analyses the Government Accountability Office
deems necessary or appropriate.
(d) Budget Request Report.--Beginning with the budget request for
fiscal year 2012 and for each succeeding fiscal year through 2026, the
President shall include in his budget request for the Department of
Energy's Fossil Energy Program a report that--
(1) assesses the Department's progress in implementing the
recommendations of the Government Accountability Office and
compares the estimated costs of completing implementation of
these recommendations to the requested budget levels; and
(2) an assessment of the progress made in the preceding
fiscal year toward achieving the goals of the program for which
funding is requested.
TITLE II--CARBON CAPTURE AND SEQUESTRATION PROJECTS
SECTION 201. SHORT TITLE.
(a) Short Title.--This subtitle may be cited as the ``Carbon
Capture and Sequestration Early and Effective Deployment Fund Act of
2010'' or the ``CC SEED FUND ACT''.
SEC. 202. DEFINITIONS.
(a) In General.--In this subtitle:
(1) Carbon capture.--The term ``carbon capture'' has the
meaning given the term in section 963(a) of the Energy Policy
Act of 2005 (42 U.S.C. 16293(a)).
(2) Carbon sequestration.--The term ``carbon
sequestration'' has the meaning given the term in section
963(a) of the Energy Policy Act of 2005 (42 U.S.C. 16293(a)).
(3) Council.--The term ``Council'' means the Carbon Capture
and Sequestration Program Partnership Council established under
section 204(a).
(4) Electric consumer.--The term ``electric consumer'' has
the meaning given that term in section 3 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2602).
(5) Electric utility.--The term ``electric utility'' has
the meaning given the term in section 3 of the Federal Power
Act (16 U.S.C. 796).
(6) Fossil fuel-based electricity.--The term ``fossil fuel-
based electricity'' means electricity that is produced, in
whole or in part, from a fossil fuel.
(7) Fossil fuel.--The term ``fossil fuel'' means coal,
petroleum, or natural gas, or any derivative of coal,
petroleum, or natural gas.
(8) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)).
(9) National laboratory.--The term ``National Laboratory''
has the meaning given the term in section 2 of the Energy
Policy Act of 2005 (42 U.S.C. 15801).
(10) Program director.--The term ``Program Director'' means
the Program Director of the special funding program appointed
under section 204(g).
(11) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(12) Special funding program.--The term ``special funding
program'' means the special funding program for development and
deployment of carbon capture, sequestration, and conversion
technologies established in accordance with section 203.
(13) State regulatory authority.--The term ``State
regulatory authority'' has the meaning given the term in
section 3 of the Public Utility Regulatory Policies Act of 1978
(16 U.S.C. 2602).
(14) United states.--The term ``United States'' means the
States of the United States, the District of Columbia, and the
territories and possessions of the United States, including the
territorial waters of the United States and the exclusive
economic zone.
(b) Modification of Definitions Incorporated by Reference.--Section
963 of the Energy Policy Act of 2005 (42 U.S.C. 16293) is amended--
(1) by redesignating subsections (a) through (d) as
subsections (b) through (e), respectively; and
(2) by inserting before subsection (b) (as so redesignated)
the following:
``(a) Definitions.--In this section:
``(1) Carbon capture.--The term `carbon capture' means the
process of capturing anthropogenic carbon dioxide from a
stationary source or carbon dioxide in the ambient air.
``(2) Carbon sequestration.--The term `carbon
sequestration' means the act of storing carbon dioxide through
physical, chemical, or biological processes that can prevent
the carbon dioxide from reaching the atmosphere.'';
(3) in subsection (b) (as so redesignated), by striking
``In General'' and inserting ``Program''; and
(4) in subsection (c) (as so redesignated), by striking
``subsection (a)'' and inserting ``subsection (b)''.
SEC. 203. SPECIAL FUNDING PROGRAM FOR DEVELOPMENT AND DEPLOYMENT OF
CARBON CAPTURE, SEQUESTRATION, AND CONVERSION
TECHNOLOGIES.
(a) Views of State Regulatory Authorities.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, a State regulatory authority shall
notify the Secretary in writing of the views of the State
regulatory authority on the creation of the special funding
program.
(2) Notice of timeline.--As soon as practicable, but no
later than 30 days after the date of enactment of this Act, the
Secretary shall notify each State regulatory authority of the
need to submit its views to the Secretary under paragraph (1)
within 180 days after the date of enactment of this Act.
(b) Establishment.--The Secretary shall establish the special
funding program within one year after the date of enactment of this Act
unless the State regulatory authorities of at least 22 States (treating
the District of Columbia and Puerto Rico as States for such purpose)
submit written notices of disapproval by the deadline established under
subsection (a).
(c) Termination.--
(1) Assessments.--The authority of the Secretary to collect
assessments shall expire on the date that is 10 years after the
date of the establishment of the special funding program.
(2) Awards.--The authority of the Secretary to make funding
awards under this subtitle shall expire on the date that is 15
years after the date of the establishment of the special
funding program.
(d) Annual Report.--Not later than February 1 of each year, the
Secretary shall publish and submit to Congress and each State
regulatory authority a report that--
(1) includes an identification and description of all
programs and projects undertaken under the special funding
program during the previous fiscal year; and
(2) describes the allocation or planned allocation of
resources of the special funding program for each program and
project in the current and subsequent fiscal year.
SEC. 204. CARBON CAPTURE AND SEQUESTRATION PROGRAM PARTNERSHIP COUNCIL.
(a) Establishment.--The Secretary shall establish, and appoint the
members of, a Carbon Capture and Sequestration Program Partnership
Council to carry out duties described in subsection (f).
(b) Voting Membership.--
(1) Total voting membership; quorum.--The Council shall be
composed of not more than 15 voting members. A majority of the
voting members shall constitute a quorum for official action of
the Council.
(2) Minimum representation.--The voting membership of the
Council shall include at least 1 representative of each of the
following:
(A) Investor-owned utilities.
(B) Utilities owned by a State or unit of local
government.
(C) Rural electric cooperatives.
(D) Fossil fuel producers.
(E) Nonprofit organizations.
(F) Independent generators or wholesale power
providers.
(G) Consumer groups.
(H) Employee organizations (as defined in section
3(4) of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1002(4))).
(3) Representation of electric utilities.--A majority of
the voting membership of the Council shall be representatives
of electric utilities selling fossil fuel-based electricity to
electric consumers subject to assessment under section 206.
(4) Nominations.--The Secretary shall appoint the Council
members representing entities described in subparagraphs (A),
(B), (C), and (F) of paragraph (2) from slates of nominees,
containing at least 2 candidates for each vacancy to be filled,
submitted by--
(A) the Edison Electric Institute, on behalf of
investor-owned utilities;
(B) the American Public Power Association, on
behalf of utilities owned by a State agency or unit of
local government;
(C) the National Rural Electric Cooperative
Association, on behalf of rural electric cooperatives;
and
(D) the Electric Power Supply Association, on
behalf of independent generators or wholesale power
providers.
(5) Recusal.--A voting member of the Council may not
participate in the review or approval of an application from an
entity with which the voting member is affiliated.
(c) Nonvoting Membership.--The Secretary shall appoint to the
Council as nonvoting members--
(1) the Under Secretary for Science;
(2) the Assistant Secretary with responsibility for
research and development of fossil fuels;
(3) 3 representatives of State regulatory authorities,
chosen to represent each different transmission
interconnection, submitted by the National Association of
Regulatory Utility Commissioners; and
(4) such additional officers and employees of the Federal
Government as the Secretary determines are necessary for the
Council to carry out the functions of the Council effectively.
(d) Terms.--
(1) In general.--Except as otherwise provided in this
paragraph, a voting member of the Council--
(A) shall serve a term of 4 years; and
(B) may serve not more than 2 full consecutive
terms.
(2) Unexpired terms.--A member who fills the unexpired term
of a voting member may serve not more than a total of 8
consecutive years.
(3) Reappointment of former voting members.--A former
voting member of the Council may be reappointed if the member
has not been a member of the Council for a period of at least 2
years.
(4) Initial appointment.--The Secretary shall make initial
appointments of voting members of the Council for terms of 1,
2, 3, and 4 years, staggered to provide for the selection of 3
members each year, as determined by the Secretary.
(5) Vacancies.--A vacancy on the Council--
(A) shall not affect the powers of the Council; and
(B) shall be filled in the same manner as the
original appointment was made.
(e) Personnel Matters.--
(1) Compensation.--
(A) Non-federal employees.--A member of the Council
who is not an officer or employee of the Federal
Government may be compensated at a rate equal to the
daily equivalent of the annual rate of basic pay
prescribed for level IV of the Executive Schedule under
section 5315 of title 5, United States Code, for each
day (including travel time) during which the member is
engaged in the performance of the duties of the
Council.
(B) Federal employees.--A member of the Council who
is an officer or employee of the Federal Government
shall serve without compensation in addition to the
compensation received for the services of the member as
an officer or employee of the Federal Government.
(2) Travel expenses.--A member of the Council shall be
allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for an employee of an agency
under subchapter I of chapter 57 of title 5, United States
Code, while away from the home or regular place of business of
the member in the performance of the duties of the Council.
(3) Chair.--The Secretary shall appoint a voting member of
the Council to serve as the Chair of the Council.
(4) Executive secretary.--The Secretary shall appoint an
Executive Secretary in the Department of Energy to assist the
Council in the conduct of the duties of the Council.
(f) Council Duties.--The Council shall--
(1) advise, assist, consult with, and make recommendations
to the Secretary and the Program Director on matters related to
the activities carried out by and through the special funding
program;
(2)(A) review applications for grants, contracts,
cooperative agreements, and other transactions for which the
approval of the Council is required under section 5(b); and
(B) vote on whether to recommend for approval the
applications;
(3) review and make recommendations on any intellectual
property policies required to advance the purposes of the
special funding program and to encourage individual ingenuity
and innovation, and ensure that inventors, whose contributions
to the development of clean coal technology are not subject to
the protections afforded by section 14 of the Stevenson-Wydler
Technology Innovation Act of 1980 (15 U.S.C. 3710c), are
provided protection of their intellectual property rights that
is not less than that afforded to inventors provided protection
under section 14 of that Act;
(4) collect information on projects being carried out by
other programs to advance the development and deployment of
technologies for carbon capture, sequestration, and conversion;
(5)(A) approve an annual overall plan for the special
funding program and projects to be carried out under the
special funding program; and
(B) submit to Congress, the Secretary, and each State
regulatory authority a copy of the plan; and
(6) meet at least 3 times each year, at the call of the
Chair or on the request of the Program Director, at a location
subject to the approval of the Program Director.
(g) Program Director and Senior Program Managers.--
(1) Appointment.--The Secretary, in consultation with the
Council, shall appoint a Program Director for the special
funding program, who shall--
(A) have a background and qualifications especially
appropriate to managing the special funding program;
and
(B) report directly to the Secretary.
(2) Compensation.--The rate of pay for the Program Director
shall not exceed the rate payable for level V of the Executive
Schedule under section 5316 of title 5, United States Code.
(3) Senior program managers.--
(A) In general.--Notwithstanding sections 3304 and
3309 through 3318 of title 5, United States Code, the
Program Director may recruit and directly appoint up to
5 highly qualified scientists, engineers, or critical
technical personnel into the competitive service, to
help manage the special funding program.
(B) Exception.--The authority granted by
subparagraph (A) shall not apply to positions in the
excepted service or the Senior Executive Service.
(C) Requirements.--In exercising the authority
granted by subparagraph (A), the Secretary shall ensure
that any action taken by the Secretary--
(i) is consistent with the merit principles
of section 2301 of title 5, United States Code;
and
(ii) complies with the public notice
requirements of section 3327 of title 5, United
States Code.
(h) Technical Advisory Committee.--
(1) In general.--The Secretary, acting through the Program
Director, and in consultation with the Council, shall appoint a
technical advisory committee to provide independent scientific
review of applications for grants, contracts, cooperative
agreements, and other transactions to be funded under the
special funding program.
(2) Membership.--The technical advisory committee shall be
composed of not less than 7 members appointed from among--
(A) institutions of higher education;
(B) National Laboratories;
(C) independent research institutions;
(D) the National Energy Technology Laboratory; and
(E) other qualified institutions;
(3) Conflicts of interest.--Members of the technical
advisory committee may not be affiliated with, or employed by,
any organization represented by voting members of the Council.
(4) Duties.--
(A) Peer review.--The technical advisory committee
shall provide independent assessments and technical
evaluations, and make recommendations to the Council,
on all applications for funding under the special
funding program.
(B) Programmatic assessments.--
(i) In general.--The technical advisory
committee may provide an independent review of
other technical matters relating to the special
funding program, including--
(I) approaches to prioritizing
technologies;
(II) appropriateness of engineering
techniques;
(III) monitoring and verification
technologies for sequestration;
(IV) geological site selection; and
(V) cost control measures for
projects.
(ii) Recommendations.--The technical
advisory committee may make recommendations to
the Secretary concerning the types of
investments, scientific research, or
engineering practices that would best further
the purposes of this subtitle.
(C) Public availability.--Except for information
exempt from disclosure under paragraphs (4) and (6) of
section 552(b) of title 5, United States Code, all
reports and evaluations made by the technical advisory
committee shall be made available to the public when
the reports and evaluations are received by the
Council.
(5) Travel expenses.--A member of the technical advisory
committee shall be allowed travel expenses, including per diem
in lieu of subsistence, at rates authorized for an employee of
an agency under subchapter I of chapter 57 of title 5, United
States Code, while away from the home or regular place of
business of the member in the performance of the duties of the
committee.
SEC. 205. FUNCTIONS AND ADMINISTRATION OF THE SPECIAL FUNDING PROGRAM.
(a) In General.--The special funding program shall support projects
to accelerate the commercial availability of carbon capture and
sequestration technologies and methods, including technologies that
capture and sequester, or capture and convert, carbon dioxide. In
making awards under the program, the Program Director shall give
priority to projects that include cost sharing, although cost sharing
is not mandatory.
(b) Project Approval.--The Program Director shall make awards for
grants, contracts, cooperative agreements, and other transactions under
this subtitle only if the award is--
(1) recommended to the Council by the technical advisory
committee established under section 204(h), after scientific
and technical peer review;
(2) approved by the voting members of the Council;
(3) for a project to be carried out in the United States;
and
(4) prioritized in regions of the country with a high
probability of carbon capture and sequestration development and
deployment potential.
(c) Specific Purposes.--In making awards, the Program Director
shall ensure, to the maximum extent practicable, that grants,
contracts, cooperative agreements, and other transactions funded under
the special funding program support demonstrations of carbon capture
and sequestration technology projects that--
(1) are capable of advancing the technologies to commercial
readiness;
(2) encompass each of the different coal types and other
fossil fuel varieties;
(3) are geographically diverse;
(4) involve diverse sequestration media;
(5) employ capture and sequestration, or capture and
conversion, technologies potentially suitable for new or
retrofit applications; and
(6) result in a capture of emissions from the generation of
at least 10 gigawatts.
(d) Eligible Entities.--Entities eligible for funding under this
subtitle include--
(1) electric utilities selling fossil fuel-based
electricity;
(2) institutions of higher education;
(3) National Laboratories;
(4) Federal research agencies;
(5) State research agencies;
(6) nonprofit organizations; and
(7) consortiums of 2 or more entities described in
paragraphs (1) through (6).
(e) Purchase of Carbon Dioxide.--A grant, contract, cooperative
agreement, or other transaction under this subtitle may be used--
(1) in the case of established projects that are
sequestering carbon dioxide emissions, to purchase carbon
dioxide if necessary to conduct tests of carbon sequestration
sites; or
(2) for other purposes consistent with this subtitle.
(f) Organization of Funding Into Tranches.--
(1) In general.--The Program Director, with the approval of
the Council and the Secretary, may divide available funds into
a series of tranches, each supporting the deployment of a
specified quantity of electric generating capacity using carbon
capture, sequestration, or conversion technologies.
(2) Form of funding.--If the Program Director, the Council,
and the Secretary agree to distribute funds by tranche under
this subsection, the Program Director shall distribute funds to
eligible projects through grants, contracts, cooperative
agreements, and other transactions under this subtitle in a
manner that--
(A) provides higher funding for projects that are
designed to achieve higher levels of capture and
sequestration or capture and conversion;
(B) takes into account the projected cost of
electricity to capture carbon dioxide emissions from
the project;
(C) decreases the funding available for projects in
successive tranches; and
(D) defrays the reasonable incremental capital and
operating costs associated with implementation of the
carbon capture and sequestration or carbon capture and
conversion technologies.
(g) Wage Rate Assurances.--
(1) In general.--The Program Director shall require
recipients of awards under this subtitle to provide assurances
that all laborers and mechanics employed by contractors and
subcontractors in the construction, repair, or alteration of
new or existing facilities performed in order to carry out a
development or deployment activity authorized under this
subtitle shall be paid wages at rates not less than those
prevailing on similar construction in the locality, as
determined by the Secretary of Labor in accordance with
subchapter IV of chapter 31 of title 40, United States Code.
(2) Authority and functions.--With respect to the labor
standards in this subsection, the Secretary of Labor shall have
the authority and functions set forth in Reorganization Plan
Numbered 14 of 1950 (15 Fed. Reg. 3176; 5 U.S.C. Appendix) and
section 3145 of title 40, United States Code.
(h) Relation to Existing Authorities.--Projects funded under this
subtitle to inject carbon dioxide into geological formations shall be
carried out in accordance with this subtitle and section 963 of the
Energy Policy Act of 2005 (42 U.S.C. 16293) and related provisions of
that Act.
(i) Restrictions on Funding.--
(1) No small-scale projects.--A pilot-scale project, or
similar small-scale project, under 100 megawatts, shall not be
eligible for support under the special funding program.
(2) Dedication of funds.--Except as provided in subsection
(j), the special funding program shall use all funds derived
from assessments under section 6 to fund grants, contracts,
cooperative agreements, and other transactions under this
subtitle.
(j) Administrative Expenses.--Not more than 5 percent of the funds
collected for any fiscal year under section 6 may be used for the
administrative expenses of carrying out the special funding program.
SEC. 206. ASSESSMENTS AND FUNDING.
(a) Amount.--
(1) In general.--For each fiscal year following the
establishment of the special funding program, the Secretary
shall collect an assessment on electric utilities for all
fossil fuel-based electricity sold to electric consumers, as
determined under section 208.
(2) Fuel type rate.--The assessments described in paragraph
(1) shall--
(A) reflect the relative carbon dioxide emission
rates of different fossil fuel-based electricity; and
(B) initially shall be not less than the following
amounts for coal, natural gas, and oil:
Fuel type rate of assessment per kilowatt hour
Coal...................................................................... $0.00091
Natural Gas............................................................... $0.00046
Oil....................................................................... $0.00068.
(3) Adjustments.--The Secretary may adjust the amount of
assessments on fossil fuel-based electricity to reflect changes
in the expected quantities of the electricity from different
fuel types so that the assessments generate not less than
$2,000,000,000 and not more than $2,100,000,000 for each fiscal
year.
(b) Treatment of Assessments.--
(1) General rule.--Notwithstanding section 3302 of title
31, United States Code, all amounts collected by the Secretary
under this section shall--
(A) be credited as offsetting collections to carry
out activities authorized under section 205;
(B) be available for expenditure only to pay the
costs of carrying out the activities authorized under
section 205;
(C) be available only to the extent provided for in
advance in an appropriations Act; and
(D) remain available until expended.
(2) Exception.--Notwithstanding paragraph (1), the
Secretary shall determine by April 1 of each fiscal year
whether an appropriations Act has appropriated the total amount
of actual fees collected in advance of that fiscal year by the
Secretary under this section. If the amounts specified under
this paragraph for that fiscal year have not been appropriated
by such date for expenditure to carry out activities under
section 205, then such amounts shall be immediately available
for such expenditure by the Board without fiscal year
limitations and without further appropriations.
(c) Fee Title.--The Secretary may vest fee title or other property
interests acquired under projects conducted under this subtitle in any
entity, including the United States.
(d) Data Protection.--For a period not exceeding 5 years after
completion of the operations phase of a grant, contract, cooperative
agreement, or other transaction under this subtitle the Secretary may
provide appropriate protections (including exemptions from subchapter
II of chapter 5 of title 5, United States Code) against the
dissemination of information that--
(1) results from demonstration activities carried out under
this subtitle; and
(2) would be a trade secret or commercial or financial
information that is privileged or confidential if the
information had been obtained from and first produced by a non-
Federal party participating in the project.
(e) Reversion of Unused Funds.--Effective beginning on the date
that is 7 years after the establishment of the special funding program,
if the Secretary, acting through the Program Director, does not
obligate at least 75 percent of the available proceeds of the assessed
fees for any fiscal year due to an absence of qualified projects or
similar circumstances, the Secretary, without further appropriation,
shall reimburse the remaining unobligated balance of the fees, less
administrative and other expenses authorized by this subtitle, to the
electric utilities on which the fees were assessed, in proportion to
the collected assessments of the electric utilities.
SEC. 207. ERCOT.
(a) Definitions.--In this section:
(1) ERCOT.--The term ``ERCOT'' means the Electric
Reliability Council of Texas.
(2) Load-serving entity.--The term ``load-serving entity''
has the meaning given the term in ERCOT Protocols in effect on
the date of enactment of this Act.
(3) Qualified scheduling entity.--The term ``qualified
scheduling entity'' has the meaning given the term in ERCOT
Protocols in effect on the date of enactment of this Act.
(4) Renewable energy credit.--The term ``renewable energy
credit'' has the meaning given the term by the Public Utility
Commission of Texas pursuant to section 39.904(b) of the State
of Texas's Public Utility Regulatory Act of 1999 as in effect
on the date of enactment of this Act.
(b) Assessment, Collection, and Remittance.--
(1) In general.--Notwithstanding any other provision of
this subtitle, within ERCOT, the assessment required under
section 206 shall be--
(A) levied directly on qualified scheduling
entities, or successor entities of the qualified
scheduling entities;
(B) charged in an amount that is consistent with
other charges imposed on qualified scheduling entities
as a fee on energy used by the load-serving entities;
and
(C) collected and remitted by ERCOT to the
Secretary in the amounts and in the same manner as
described in section 205.
(2) Requirements.--The assessment amounts referred to in
paragraph (1) shall--
(A) be determined by the quantity and types of
fossil fuel-based electricity delivered directly to all
electric consumers in the prior calendar year beginning
with the year ending immediately prior to the beginning
of the period described in section 203(c); and
(B) take into account the number of renewable
energy credits retired by the load-serving entities
represented by a qualified scheduling entity within the
prior calendar year.
(c) Administration Expenses.--Not more than 1 percent of the funds
collected for any fiscal year by ERCOT under this section may be used
for the administrative expenses incurred in the determination,
collection, and remittance of the assessments to the Secretary.
(d) Audit.--ERCOT shall submit to the Secretary a copy of the
annual audit of ERCOT relating to the administration of this section.
SEC. 208. DETERMINATION OF FOSSIL FUEL-BASED ELECTRICITY DELIVERIES.
(a) Findings.--Congress finds that--
(1) the assessments under section 206 are to be collected
based on the quantity of fossil fuel-based electricity sold by
each electric utility to electric consumers;
(2) because many electric utilities purchase all or part of
the electricity needed by the electric consumers of the
utilities from other entities, it may not be practicable to
determine the precise fuel mix for the power sold by each
individual electric utility; and
(3) it may be necessary to use average data, often on a
regional basis with reference to Regional Transmission
Organization or North American Electric Reliability Corporation
regions, to make the determinations necessary for making the
assessments.
(b) Proposed Regulation.--
(1) In general.--The Secretary, in consultation with the
Energy Information Administration, shall issue for notice and
comment a proposed regulation to determine the level and type
of fossil fuel-based electricity delivered to electric
consumers by each electric utility in the United States during
the most recent calendar year or other period determined by the
Secretary to be most appropriate.
(2) Balancing.--The proposed regulation shall balance the
need to be efficient, reasonably precise and timely, taking
into account the nature and cost of data currently available
and the nature of markets and regulations in effect in various
regions of the United States.
(3) Varying methodologies.--The Secretary may apply
different methodologies in different regions of the United
States if appropriate to obtain the best balance of factors
described in paragraph (2).
(c) Final Regulation.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, and after opportunity for comment, the
Secretary shall promulgate a final regulation under this
section for determining the level and type of fossil fuel-based
electricity delivered to electric consumers by each electric
utility in the United States during the appropriate period, as
determined by the Secretary.
(2) New data sources.--In promulgating the final
regulation, the Secretary may--
(A) consider opportunities and costs to develop new
data sources in the future; and
(B) issue recommendations for the Energy
Information Administration or other agencies to collect
the data.
(3) Updates.--After notice and opportunity for comment, the
Secretary may, by regulation, update and modify the methodology
for making determinations under this section.
(d) Annual Determinations.--
(1) In general.--In accordance with the final regulation
promulgated under subsection (c), the Secretary shall--
(A) make annual determinations of the quantities
and types for each electric utility; and
(B) publish the determinations in the Federal
Register.
(2) Use.--Determinations described in paragraph (1) shall
be used--
(A) to conduct the referendum under section 203(a);
and
(B) by the Secretary in applying any assessment
under this subtitle.
(e) Rehearing and Judicial Review.--
(1) In general.--The owner or operator of any electric
utility that believes that the Secretary has misapplied the
methodology in the final regulation in determining the quantity
and types of fossil fuel-based electricity delivered by the
electric utility may seek a rehearing of the determination not
later than 30 days after publication of the determination in
the Federal Register.
(2) Deadline.--Not later than 30 days after a rehearing
petition is formally requested, the Secretary shall rule on the
rehearing petition.
(3) Judicial review.--A determination of the Secretary
under paragraph (2) shall be final and subject to judicial
review in the United States Court of Appeals for the District
of Columbia Circuit.
SEC. 209. COMPLIANCE WITH ASSESSMENTS.
(a) In General.--The Secretary may bring an action in the
appropriate court of the United States to compel compliance with an
assessment levied by the Secretary under this subtitle.
(b) Payment.--A successful action for compliance under this section
may require payment by the defendant of the costs incurred by the
Secretary in bringing the action.
SEC. 210. MIDCOURSE REVIEW.
Not later than 5 years after the establishment of the special
funding program, the Comptroller General of the United States shall
submit to Congress a report that--
(1) evaluates the activities of the special funding
program, including--
(A) project selection and methods of disbursement
of assessed fees;
(B) impacts on the prospects for commercialization
of carbon capture and sequestration technologies; and
(C) the extent to which assessed fees support the
qualified projects received by the Secretary; and
(2) makes such recommendations as the Comptroller General
of the United States considers to be appropriate in each of
those areas.
SEC. 211. RECOVERY OF COSTS.
(a) In General.--An electric utility, the transmission, delivery,
or sales of electric energy of which are subject to any form of rate
regulation, may not be denied an opportunity to recover the full amount
of the prudently incurred costs associated with complying with this
subtitle, consistent with applicable State or Federal law.
(b) Ratepayer Rebates.--Regulatory authorities that approve cost
recovery pursuant to subsection (a) may order rebates to ratepayers to
the extent that electric utilities selling fossil fuel-based
electricity to electric consumers are reimbursed undedicated or
unassigned balances in accordance with section 206(c).
TITLE III--CCS TECHNOLOGY STANDARD FOR POWERPLANTS
SEC. 301. CCS STANDARDS FOR COAL-FUELED POWER PLANTS.
(a) In General.--Title I of the Clean Air Act (42 U.S.C. 7401 et
seq.) is amended by inserting after section 111 the following:
``SEC. 111A. CCS STANDARDS FOR NEW COAL-FIRED POWER PLANTS.
``(a) Definitions.--In this section:
``(1) Covered units.--The term `covered unit' means an
electric utility generating unit that derives 50 percent of its
annual heat input from coal, petroleum coke, or any combination
of these fuels.
``(2) Initially permitted.--The term `initially permitted'
means, with respect to an electric utility generating unit,
that the owner or operator of a unit has received a
preconstruction approval or permit under this Act, for the
covered unit as a new (not a modified) source, but
administrative review or appeal of such approval or permit has
not been exhausted. A subsequent modification of any such
approval or permit, ongoing administrative or court review,
appeals, or challenges, or the existence or tolling of any time
to pursue further review, appeals, or challenges shall not
affect the date on which a unit is considered to be initially
permitted.
``(3) Treated generating capacity.--The term `treated
generating capacity' means the portion of the total generating
capacity of an electric generating unit (or, in the case of an
industrial unit, an equivalent capacity) for which the flue gas
or fuel gas is treated by carbon capture and sequestration
technology.''.
``(b) Standards.--
``(1) Emission limit.--A covered unit that is initially
permitted on or after the date of the enactment of the Carbon
Capture and Sequestration Deployment Act of 2010 and before
January 1, 2020, shall achieve, by the compliance date set
forth in paragraph (2), an emission limit for carbon dioxide
that reflects 50 percent reduction from the carbon content of
the fuel used by the unit, as measured on an annual basis.
``(2) Compliance.--Compliance with the requirement set
forth in paragraph (1) shall be required by the earlier of the
following:
``(A) Four years after the date the Administrator
has published a report that there are in commercial
operation in the United States electric generating
units or other stationary sources equipped with carbon
capture and sequestration technology that, in the
aggregate--
``(i) have a total of at least 10 gigawatts
of treated generating capacity; and
``(ii) include electric generating units
with at least 4 gigawatts of treated generating
capacity which units are capturing and
sequestering in deep geologic saline formations
the aggregate at least 24 million tons of
carbon dioxide per year, calculated on an
aggregate annualized basis; or
``(B) the later of--
``(i) January 1, 2030; or
``(ii) the date by which the assessment
under section 102(b) determines that it is
reasonable to conclude that technology is
available to the commercial marketplace.
``(c) Regulations.--Not later than 2 years after the date of
enactment of the Carbon Capture and Sequestration Deployment Act of
2010, the Administrator shall promulgate regulations to carry out the
requirements of this section.
``(d) Compliance with standards.--Not withstanding other provisions
of law, no unit subject to standards under subsection (b) shall be
deemed subject to section 111 of this Act for emissions of carbon
dioxide. Any unit subject to standards under subsection (b) shall be
deemed to have met the requirements of section 169(3) for carbon
dioxide.''.
(b) Compliance and Judicial Review.--Sections 114 and 307 of such
Act are each amended by striking ``section 111'' in each place it
appears and inserting ``section 111 or section 111A''.
SEC. 302. CONSOLIDATED REVIEW OF FEDERAL AUTHORIZATIONS.
(a) Designation of Lead Agency.--
(1) In general.--The Department of Energy shall act as the
lead agency for the purposes of coordinating all applicable
Federal authorizations and related environmental reviews with
respect to an eligible project, including any requirements of--
(A) the Clean Air Act (42 U.S.C. 7401 et seq.);
(B) the Endangered Species Act of 1973 (16 U.S.C.
1531 et seq.);
(C) the Federal Water Pollution Control Act (33
U.S.C. 1251 et seq.);
(D) the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.); or
(E) the Safe Drinking Water Act (42 U.S.C. 300f et
seq.).
(2) Other agencies.--Each Federal and State agency required
to provide a Federal authorization for an eligible project
shall cooperate with the Secretary and comply with the
deadlines established by the Secretary under subsection (b).
(b) Coordination and Consolidated Review.--
(1) Schedule.--As the head of the lead agency, and in
consultation with other agencies, the Secretary shall establish
a schedule for all Federal authorizations with respect to each
eligible project. In establishing the schedule, the Secretary
shall--
(A) set binding intermediate milestones and
deadlines to ensure expeditious completion of all
proceedings and final action on all Federal
authorizations relating to the eligible project;
(B) require that all permit decisions and related
environmental reviews under applicable Federal laws
shall be completed--
(i) within 1 year after the submission of a
complete application for each permit decision
or environmental review; or
(ii) if an express requirement of another
provision of Federal law does not permit
compliance with the 1-year deadline in clause
(i), as soon thereafter as is practicable; and
(C) coordinate, to the maximum extent practicable,
any permitting and environmental reviews that apply to
the eligible project only under State law.
(2) Memorandum of understanding.--Not later than 1 year
after the date of enactment of this Act, the Secretary and the
heads of all Federal agencies with authority to issue Federal
authorizations shall execute a memorandum of understanding to
ensure the coordinated and streamlined review and prompt
issuance of Federal authorizations for eligible projects.
(3) Pre-application review.--The Secretary shall establish
and facilitate a pre-application review process to expedite the
review of all Federal authorizations, including permit
decisions and related environmental reviews, for any eligible
project under applicable Federal laws. The pre-application
review process shall require each agency involved in the review
process to confer with prospective applicants and identify
those issues of major concern to the agency and the general
public regarding the eligible project. The pre-application
review process shall require such agencies to provide a written
response to an inquiry from a prospective applicant not later
than 60 days after the completion of the pre-application review
process.
(4) Consolidation of environmental reviews.--The Secretary,
in consultation with affected agencies, shall prepare a single
environmental review document for assessing all major Federal
actions related to any eligible project under section 102 of
the National Environmental Policy Act of 1969 (42 U.S.C. 4332).
Agencies subject to such environmental review requirements
shall use the document as the basis for all decisions related
to the eligible project.
(5) Failure to meet schedule.--If a Federal or State agency
does not complete a proceeding for an approval that is required
for a Federal authorization in accordance with the schedule
established by the Secretary under this subsection, the
applicant may pursue remedies under subsection (d).
(c) Consolidated Record.--The Secretary shall, with the cooperation
of Federal and State agencies, maintain a complete consolidated record
of all decisions made or actions taken by the Secretary or by a Federal
agency (or State agency acting under delegated Federal authority) with
respect to any Federal authorization. Such record shall be the record
for judicial review under subsection (d) of decisions made or actions
taken of Federal and State agencies, except that, if the Court
determines that the record does not contain sufficient information, the
Court may remand the proceeding to the Secretary for further
development of the consolidated record.
(d) Judicial Review.--
(1) In general.--The United States Court of Appeals for the
circuit in which the eligible project is proposed to be
constructed shall have original and exclusive jurisdiction over
any civil action for the review of--
(A) an order or action related to a Federal
authorization, by a Federal agency (other than the
Secretary) or State agency acting pursuant to Federal
law to issue, including any order or action to
condition or deny any Federal authorization; and
(B) an alleged failure to act by a Federal or State
agency with respect to a Federal authorization.
The failure of an agency to take action on a Federal
authorization in accordance with the schedule established by
the Secretary under subsection (b)(1) shall be considered to be
inconsistent with Federal law for the purposes of paragraph (2)
of this subsection.
(2) Court action.--
(A) In general.--The Court shall remand the
proceeding for a particular eligible project to the
appropriate agency if the Court finds that--
(i) there has occurred either--
(I) an order or action described in
paragraph (1)(A) that is inconsistent
with the Federal law governing the
Federal authorization for the eligible
project; or
(II) a failure to act as described
in paragraph 1(B) with respect to the
eligible project; and
(ii) the order, action, or failure to act
would prevent the siting, construction, or
operation of the eligible project.
(B) Remand.--If the Court remands the order or
action to the appropriate Federal or State agency under
subparagraph (A), the Court shall provide specific
direction to remedy any inconsistency with Federal law
and set a reasonable schedule and appropriate deadlines
for the agency to act on remand.
(4) Filing consolidated record.--For any civil action
described in this subsection, the Secretary shall promptly file
with the Court the consolidated record of the order or action
to which the appeal hereunder relates, as compiled by the
Secretary pursuant to subsection (c).
(5) Expedited review.--The Court shall set any action
brought under this subsection for expedited consideration.
(e) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Eligible project.--The term ``eligible project'' means
any project that is eligible to receive a financial incentive
under title II or III this Act or the amendments made by this
Act.
(3) Federal authorization.--The term ``Federal
authorization''--
(A) means any authorization required under Federal
law, whether administered by a Federal or State agency,
with respect to the siting, construction, or operation
of an eligible project; and
(B) includes any permit, license, special use
authorizations, certifications, opinions, concurrence,
or other approvals that may be required under Federal
law with respect to the siting, construction, or
operation of an eligible project.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(f) Regulations.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall establish by rule, after
notice and public opportunity to comment, regulations that are
necessary to implement this section.
(g) Relationship to Other Laws.--Except as specifically provided,
nothing in this section affects any requirement of any Federal or State
law, including the Federal laws described in subsection (a)(1).
TITLE IV--CARBON STORAGE STEWARDSHIP
SEC. 401. SHORT TITLE.
This title may be cited as the ``Carbon Storage Stewardship Act''.
SEC. 402. PURPOSE.
The purpose of this title is to facilitate carbon capture and
storage in suitable underground formations by--
(1) providing for long-term stewardship of closed carbon
dioxide storage sites to ensure continuing protection of
health, safety, and the environment during the stewardship
period;
(2) providing a system for compensation to any person that
may suffer personal injury or property damage from stored
carbon dioxide at such a site;
(3) establishing financial responsibility and a dedicated
funding mechanism for such stewardship and compensation; and
(4) establishing a transitional program that provides
limited indemnification for owners and operators of qualifying
first mover projects to demonstrate the capture and geological
storage of carbon dioxide.
SEC. 403. DEFINITIONS.
In this title:
(1) Board.--The term ``Board'' means the Carbon Storage
Stewardship Board that is established under section 408.
(2) Carbon dioxide.--The term ``carbon dioxide'' means
carbon dioxide that is segregated for purposes of geologic
storage, including small quantities of other compounds to the
extent authorized by the terms of the injection permits issued
for the storage facility.
(3) Certificate of completion.--The term ``certificate of
completion'' means a determination issued with respect to a
storage facility by the regulatory authority that certifies
that the project operator has completed injection operations,
well closure, and any required monitoring and remediation at a
storage facility, so that there is a reasonable basis to
believe that carbon dioxide is and will continue to be safely
stored at the site and will not present an unreasonable risk to
health, safety, or the environment (including drinking water
supplies) during the stewardship period.
(4) Certified post-closure storage facility.--The term
``certified post closure storage facility'' means a storage
facility for which the regulatory authority has issued a
certificate of completion.
(5) Civil claim.--The term ``civil claim'' means any claim
for civil relief with respect to a facility that arises from
migration of carbon dioxide from such facility or is otherwise
related to the injection of carbon dioxide at such facility,
excluding--
(A) any claim arising from breach of an express
contract; and
(B) in the case of a project operator, any claim
arising from--
(i) willful violation of applicable rules
of the regulatory authority; or
(ii) any false statement or
misrepresentation in an application for a
certificate of completion; and
(iii) conduct that constitutes reckless or
intentional misconduct by the project operator.
(6) Federal or state environmental requirement.--The term
``Federal or State environmental requirement'' means a
requirement of a Federal or State agency that--
(A) relates to health, safety, or the environment
that results from the injection of carbon dioxide at a
certified post-closure storage facility;
(B) is authorized under Federal or State law; and
(C) imposes an obligation relating to such
injection of carbon dioxide during the stewardship
period to--
(i) monitor the migration of carbon dioxide
within and from a certified post-closure
storage facility;
(ii) perform remediation at such facility;
(iii) desist from any action that poses a
health, safety, or environment risk; or
(iv) take other such action that may be
necessary to ensure the protection of health,
safety or the environment.
(7) First mover project.--The term ``first mover project''
is a project involving the large-scale capture and geological
sequestration of carbon dioxide that the Secretary selects for
indemnification under section 408.
(8) Non-federal member.--The term ``non-Federal member''
means any member of the Board who is not otherwise employed by
the Federal government.
(9) Program.--The term ``Program'' means the National
Carbon Storage Stewardship Program established under section
407.
(10) Project operator.--The term ``project operator'' means
the entity responsible for injection operations at a storage
facility.
(11) Public claim.--The term ``public claim''--
(A) means a civil claim that is asserted by a third
party for--
(i) personal injury;
(ii) property damage;
(iii) trespass; or
(iv) nuisance; but
(B) does not include claims for punitive damages or
non-economic losses.
(12) Regulatory authority.--The term ``regulatory
authority'' for a storage facility means the State or Federal
agency that issues an injection permit for such storage
facility. If more than one agency has such authority with
respect to a facility, the Board shall designate one of the
permitting agencies as the regulatory authority for such
facility for purposes of carrying out this title.
(13) Remediation.--The term ``remediation'' means action to
remedy, mitigate, or correct any danger to health, safety, or
the environment (including any damage to underground drinking
water supplies) that occurs as a result of prior injection of
carbon dioxide at a certified post-closure storage facility.
(14) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(15) Stewardship agency.--The term ``stewardship agency''
means the agency that has assumed stewardship responsibility
under section 404.
(16) Stewardship period.--The term ``stewardship period''
for a storage facility means the period of time that begins
upon the date that the regulatory authority issues the
certificate of completion for the storage facility.
(17) Stewardship responsibility.--The term ``stewardship
responsibility'' means responsibility for monitoring and
remediation of certified post-closure storage facilities in a
State during the stewardship period, as provided in section
404.
(18) Storage facility.--The term ``storage facility'' means
a facility for long-term geologic storage and sequestration of
carbon dioxide, including a facility for enhanced oil or gas
recovery, as provided by section 406(b)(1)(B).
(19) Trust fund.--The term ``Trust Fund'' means the Carbon
Storage Stewardship Trust Fund that is established under
section 406.
SEC. 404. STEWARDSHIP RESPONSIBILITY.
(a) Agency Responsible for Stewardship.--A State may accept
stewardship responsibility for certified post-closure storage
facilities in that State in accordance with regulations of the
Secretary. If a State declines to accept stewardship responsibility,
then the Secretary shall have stewardship responsibility for certified
post-closure storage facilities in that State. In accordance with such
rules as the Secretary may prescribe, if a State that has accepted
stewardship responsibility fails to carry out such responsibility, the
Secretary shall, after notice and opportunity for comment, assume such
responsibility.
(b) Administration, Monitoring and Remediation.--
(1) Responsibilities.--Upon issuance of the certificate of
completion for a storage facility, the stewardship agency shall
be responsible for providing all monitoring and remediation of
the carbon dioxide injected at that storage facility. The
monitoring and remediation shall be conducted in accordance
with standards prescribed by the Board under section 407(c)(1).
(2) Reimbursement of agency costs.--The Board shall
reimburse the stewardship agency for all reasonable and
verified costs that the stewardship agency has incurred for
program administration and the performance of its stewardship
responsibility, as described in paragraph (1). The Board shall
pay such costs from the Trust Fund through the Program and in
accordance with a reimbursement contract entered into under
subsection (c).
(c) Reimbursement Contracts.--
(1) In general.--The Board shall offer each agency that
accepts stewardship responsibility for certified post-closure
storage facilities within a State a contract under which the
Board provides reimbursement for costs of administration,
monitoring, and remediation of such facilities during the
stewardship period as determined under paragraph (2). Section
1341 of title 31, United States Code shall not apply to any
such contract. The contract shall be backed by the full faith
and credit of the United States.
(2) Rules.--The Board shall prescribe rules for
reimbursement of all reasonable costs of administration,
monitoring, and remediation incurred by agencies that have
stewardship responsibility for certified post-closure storage
facilities.
SEC. 405. RESPONSIBILITY FOR PAYMENT OF CLAIMS.
(a) Claims Against the Trust Fund.--
(1) Public claims.--Upon issuance of the certificate of
completion for a storage facility, all public claims related to
the carbon dioxide injected at that certified post closure
storage facility shall be filed with the Board and paid from
Trust Fund.
(2) orphan storage facilities.--A stewardship agency having
jurisdiction over a particular storage facility may petition
the Board for reimbursement from the Trust Fund of the
monitoring and remediation costs that may be incurred by such
stewardship agency consistent with the standards established
under section 407(c) if--
(A) the particular storage facility--
(i) has completed injection operations at
the storage facility;
(ii) has obtained all applicable permits
for the injection of carbon dioxide into the
storage facility and substantially complied
with the requirements of those permits during
the injection operations;
(iii) has paid annual assessments into the
Trust Fund, as required under section 406(b),
for a substantial majority of the carbon
dioxide injected into the storage facility; and
(iv) is unable to obtain a certificate of
completion from the regulatory authority; and
(B) a United States bankruptcy court has issued--
(i) a bankruptcy discharge that releases
the owners, operators, and any other
potentially responsible parties from the
financial liabilities related to the particular
storage facility; or
(ii) other determination that the owners,
operators, and any other potentially
responsible parties of the particular storage
are financially unable to fulfill conditions
and requirements necessary to obtain a
certificate of completion for the particular
storage facility; and
(C) the Board determines that using the Trust Fund
to fund monitoring and remediation activities at the
particular storage facility is in the public interest.
(3) Exclusive board jurisdiction.--The Board shall have
exclusive jurisdiction to adjudicate all public claims and
petitions filed with Board under paragraphs (1) and (2), as
provided by section 409.
(b) Claims Against Stewardship Agencies.--
(1) Civil claims.--Subject to paragraph (2), an agency that
has stewardship responsibility for a certified post-closure
storage facility is not subject to any civil claim as a result
of assuming or carrying out its stewardship responsibility
under this title.
(2) Federal and state requirements.--An agency that has
stewardship responsibility for a certified post-closure storage
facility shall be subject to--
(A) all applicable Federal and State environmental
requirements that relate to the injection of carbon
dioxide at that storage facility during the stewardship
period; and
(B) civil claims for injunctive relief for the
performance of--
(i) all applicable Federal and State
environmental requirements that relate to--
(I) the ongoing monitoring,
measurement, and verification of carbon
dioxide injected at that storage
facility; and
(II) maintaining the integrity of
the storage facility during the
stewardship period; and
(ii) any requirement to provide remediation
at the storage facility during the stewardship
period that is--
(I) consistent with any applicable
Federal or State environmental
requirements; and
(II) necessary to remedy any breach
in the integrity of the storage
facility that is caused by the
injection of carbon dioxide into such
facility.
(3) Venue.--Civil claims brought for injunctive relief
under paragraph (2)(B) shall be filed in the District Court of
the United States in which the stewardship agency is located.
(4) Conflicting requirements.--If a standard or requirement
established by the Board differs from any Federal or State
environmental requirement, compliance with the Board standard
or requirement shall be deemed to satisfy the obligation of a
stewardship agency to comply with the corresponding State or
Federal environmental requirement.
(c) Claims Against Operators, Property Owners, Transporters, and
Generators.--Upon issuance of the certificate of completion for a
storage facility, civil claims related to the carbon dioxide injected
at that certified post-closure storage facility may not be brought
against--
(1) the project operator of the facility, except if the
Board determines that there are insufficient funds in the Trust
Fund to pay such claims, as provided in subsection (b)(5)(E) of
section 406;
(2) the owner of the facility;
(3) a holder of a real property interest in the facility;
(4) any transmission pipeline that transported carbon
dioxide to the facility; or
(5) the generator of the carbon dioxide being handled by
either the pipeline or storage facility.
SEC. 406. CARBON STORAGE STEWARDSHIP TRUST FUND.
(a) Establishment of Trust Fund.--The Carbon Storage Stewardship
Trust Fund is hereby established in the Treasury. The Trust Fund shall
be administered by the Board. Notwithstanding section 3302 of title 31,
United States Code, all assessments paid under subsection (b) shall be
deposited in the Trust Fund and shall be available without fiscal year
limitation and without further appropriation solely for the purpose
of--
(1) covering the administrative costs of the Board under
this title; and
(2) making payments authorized by section 407.
(b) Assessments.--
(1) Payment by operator.--
(A) In general.--Except as provided in subparagraph
(B), each project operator of a storage facility shall
pay an annual assessment into the Trust Fund for the
carbon dioxide injected into a storage facility during
a given calendar year after the date of enactment of
this Act. The annual assessment shall be equal to the
product of--
(i) the number of tons of carbon dioxide
that are injected into the storage facility for
a particular year during the operational phase
of the facility; and
(ii) the assessment amount, expressed on a
dollar-per-ton of carbon dioxide injected, that
the Board has established for the storage
facility under paragraph (2).
(B) Enhanced oil or gas recovery.--In the case of
the injection of carbon dioxide for the purpose of
enhanced oil or gas recovery, the requirement to pay an
annual assessment into the Trust Fund under
subparagraph (A) shall apply--
(i) solely to the net quantity of carbon
dioxide injected into a storage facility for
the purpose of the long-term geological storage
of the carbon dioxide in order to meet a
greenhouse gas reduction compliance obligation
under a Federal or State regulatory program;
and
(ii) only to the extent that the project
operator has relied upon geological storage of
the carbon dioxide for meeting a greenhouse gas
reduction compliance obligation under a Federal
or State regulatory program.
(C) Special rule.--
(i) Extended payment schedule.--Except as
provided by clause (ii), the Board may impose
an assessment under subparagraph (A) upon any
storage facility existing on the date of
enactment of this Act for amounts of carbon
dioxide injected prior to the establishment of
the Trust Fund. The Board shall establish a
reasonable schedule for the payment of the
assessment authorized under the previous
sentence, which shall not exceed 10 years.
(ii) Demonstration projects.--The Board
shall not impose an assessment under
subparagraph (A) in the case of a demonstration
project that--
(I) injects carbon dioxide in
amounts that are less than 1,000,000
tons per year;
(II) has an injection period of 5
years or less; and
(III) poses a de minimis risk to
health, safety, or the environment
during the stewardship period.
(iii) Trust fund coverage.--In the case of
a project that is exempted from the assessment
under clause (ii) of this subparagraph, the
stewardship agency shall--
(I) perform any monitoring and
remediation that may be necessary after
the proper closure of the storage
facility;
(II) receive reimbursement for the
reasonable costs for performing such
monitoring and remediation activities
from the Trust Fund by the Board; and
(III) be subject to civil claims
for injunctive relief to perform
appropriate monitoring and remediation,
as provided under section 405(b)(2)(B).
(2) Assessment amount.--After providing opportunity for
public notice and comment and after taking into account the
information, recommendations and guidance that the technical
advisory committee may provide under section 408(g), the Board
shall determine by rule the assessment amount that applies to
each ton of carbon dioxide injected into a storage facility in
accordance with method prescribed in paragraph (3).
(3) Method for calculating assessment amount.--The Board
shall establish by rule a method for calculating the assessment
amount that--
(A) establishes a specific dollar-per-ton
assessment for the injection of carbon dioxide into
each type or class of storage facilities that the Board
has identified under paragraph (4)(A);
(B) reflects the degree of risk that substantial
remediation costs and public claims might be incurred
for each type or class of storage facilities for which
the Board has developed a risk profile under paragraph
(4)(B);
(C) accounts for the cumulative quantities of
carbon dioxide that project operators are expected to
inject into storage facilities at appropriate
milestones over the life of the Program;
(D) calculates the net present value of cumulative
payments that the Board expects to make under section
407 at appropriate milestones over the life of the
Program for--
(i) reasonable future administrative costs
that the Board expects to incur under the Act;
(ii) reimbursement to stewardship agencies
for the reasonable future costs that such
agencies are likely to incur for program
administration, monitoring, remediation and the
performance of other stewardship
responsibilities under section 404; and
(iii) satisfaction of public claims on
which the Board expects to make payment based
on the reasonably anticipated risks of ultimate
recovery against the Program for such costs
under section 405;
(E) calculates the net present value of payments
that the Board expects to be deposited into the Trust
Fund under this subsection at appropriate milestones
over the life of the Program; and
(F) reflects the best available engineering,
geological, and scientific information, including the
information, recommendations and guidance that the
technical advisory committee may provide to the Board
under section 408(g).
(4) Types and classes of storage facilities.--
(A) Identification and categorization.--The Board
shall identify those geological formations that may
potentially be used as a storage facility and
categorize each identified formation into an
appropriate type or class based on--
(i) the type of formation, including
depleted oil and gas formations, deep
unmineable coal seems, and deep saline
aquifers;
(ii) depth of injection of carbon dioxide
into the formation;
(iii) proximity of the formation to
drinking water sources, human settlements, or
ecologically sensitive areas;
(iv) proximity of the formation to
seismically active geological faults; and
(v) other factors that may affect the
probability that the Board may incur
substantial costs for remediation and public
claims under section 408(g).
(B) Risk profiles.--For each type or class of
geological formation identified under subparagraph (A),
the Board shall prepare a profile of the reasonably
foreseeable risks that could result by the injection of
carbon dioxide into such a formation. In developing
such risk profiles, the Board shall rely on the best
available scientific information, including the
information, recommendations and guidance that the
technical advisory committee may provide to the Board
under section 408(g).
(5) Adjustment of assessment amount.--
(A) In general.--The Board shall prescribe rules
for adjusting the assessment amount established under
paragraph (2) if the Board determines that the Trust
Fund is underfunded or overfunded to cover the payments
expected under section 407. The Board shall make its
determination on the sufficiency of such funds in the
Trust Fund based on actuarial studies to be conducted
at least every 5 years, beginning 10 years after the
date of enactment of this Act, and any change in the
assessment amount shall be made in accordance with the
applicable provisions of this subsection and after
opportunity for public notice and comment.
(B) Limits on size of trust fund.--
(i) In general.--The Board shall establish
by rule a minimum and maximum balance for the
Trust Fund and adjust the amount of the
assessment amount to ensure that the amounts in
Trust Fund remain within the minimum and
maximum fund levels established under this
subparagraph. In setting the minimum and
maximum fund levels, the Board shall--
(I) apply the criteria prescribed
in paragraph (3) for calculating the
assessment amount; and
(II) take into account the
information, recommendations and
guidance that the technical advisory
committee may provide under section
408(g).
(ii) Review and revision.--The Board shall
review from time to time and revise as
necessary and appropriate the minimum and
maximum levels established for the Trust Fund
under clause (i) of this subparagraph. The
Board may make any revision to the minimum and
maximum levels only in accordance with
applicable provisions of this subsection,
including the requirements of clause (i) of
this subparagraph.
(C) Rebates if trust fund is overfunded.--The Board
may provide rebates to project operators that have made
payments into the Trust Fund under subsection (b) if
the Board determines by rule that--
(i) the Trust Fund is overfunded under
subparagraph (A);
(ii) a substantial reduction in future
payments into the Trust Fund would be necessary
to ensure that the amounts in the Trust Fund do
not exceed maximum balance levels established
under subparagraph (B); and
(iii) a rebate of past payments, combined
with a downward adjustment of future payments,
into the Trust Fund is appropriate to ensure a
fair and equitable assessment on all project
operators contributing to the Trust Fund.
(D) Increases in assessment amount.--The Board may
increase the level of the assessment amount for carbon
dioxide injected into a storage facility if the Board
determines by rule that the Trust Fund is underfunded
under subparagraph (A). Any such increase in the
assessment amount shall only apply prospectively to
annual assessments for carbon dioxide injected during
the operation of a storage facility under paragraph
(2).
(E) Claims in excess of trust fund.--The project
operator shall be responsible to pay claims under
section 405 that are related to, or arising from, the
injection and sequestration of carbon dioxide at its
certified post-closure storage facility if the Board
determines that insufficient funds are available to pay
such claims even after the application of a prospective
increase of the assessment amount, as authorized by
subparagraph (D).
(c) Investment.--At the request of the Board, the Secretary of the
Treasury may invest any part of the amounts in the Trust Fund in
interest-bearing securities of the United States Government. The
interest on, and the proceeds from the sale or redemption of, the
securities shall be deposited in the Trust Fund.
(d) Repayable Advances.--If amounts in the Trust Fund are
insufficient to cover current obligations of the Board under this Act,
there are authorized to be appropriated to the Trust Fund as interest-
bearing repayable advances, such sums as may be necessary to carry out
the purposes of such Trust Fund. The terms and conditions of such
advances shall be as specified in appropriation Acts.
SEC. 407. PAYMENTS FROM THE TRUST FUND.
(a) Establishment.--The Board shall establish and administer the
National Carbon Storage Stewardship Program to--
(1) reimburse agencies (or the Secretary as provided under
section 404) for the costs incurred for program administration
and in performing their stewardship responsibilities with
respect to certified post-closure storage facilities, as
provided in contracts executed under section 404(c); and
(2) make payments to satisfy--
(A) public claims made with respect to certified
post-closure storage facilities, as authorized by
section 405(a)(1); and
(B) petitions to cover monitoring and remediation
costs incurred at storage facilities, as authorized by
section 405(a)(2).
The payment of these expenditures by the Board shall be funded
from the Trust Fund in accordance with provisions of this
title.
(b) Payment Schedules for Public Claims.--The Board shall by rule
prescribe payment schedules for determining the nature and amount of
compensation that the Board will pay from the Trust Fund for public
claims under section 405(a)(1). The payment schedules shall reflect the
best available engineering, geological, and scientific information,
including the information, recommendations and guidance that the
technical advisory committee may provide to the Board under section
408(g).
(c) Monitoring and Remediation.--
(1) Standards.--The Board shall prescribe standards for
determining whether and to what extent monitoring and
remediation will be required for carbon dioxide injected at a
certified post-closure storage facility. The standards shall--
(A) be based on the applicable Federal and State
environmental requirements for the monitoring and
remediation of carbon dioxide injected at a certified
post closure storage facility; and
(B) reflect any other monitoring or remediation
requirements that the Board determines are necessary to
protect the health, safety, and the environment during
the stewardship period.
(2) Reimbursement.--
(A) In general.--The Board shall reimburse the
stewardship agency from the Trust Fund for the costs
that it has incurred for the monitoring and remediation
in accordance with the standards established under
paragraph (1) and contracts entered into under section
404.
(B) Contractual disputes.--The stewardship agency
or the Board may bring an action in the United States
District Court to obtain relief on disputes relating to
provisions of reimbursement contracts executed under
section 404(c).
(d) Limitation on Payment of Claims.--The Board shall not pay
claims otherwise authorized under this section if the claim for
reimbursement or compensation arose from conduct of the project
operator that constitutes reckless or intentional misconduct.
(e) Private Insurers.--The Board may contract with private insurers
to provide claim adjustment services for public claims. In addition, to
the extent the Board determines that insurance from private sources to
cover reasonably anticipated costs of public claims and remediation is
available for certified post-closure storage facilities at reasonable
cost and on reasonable terms, the Board may purchase such insurance
from private sources.
SEC. 408. CARBON STORAGE STEWARDSHIP BOARD.
(a) Establishment.--There is hereby established within the
Department of Energy an independent agency to be know as the Carbon
Storage Stewardship Board.
(b) Purpose.--The purpose of the Board is to advance, in the most
efficient and effective manner, the widespread deployment of carbon
capture and storage technologies by providing for the long-term
stewardship of closed storage sites in a manner that achieves the
objectives and requirements of this title.
(c) Organization.--
(1) Membership.--The Board shall consist of 7 members, of
which--
(A) 4 shall be appointed by the President by and
with the advice and consent of the Senate; and
(B) 3 shall be full-time Federal employees
designated by the President in accordance with
paragraph (6).
(2) Qualifications for membership.--Each member of the
Board shall--
(A) be a citizen of the United States;
(B) have demonstrated knowledge and expertise in
the fields relating to--
(i) carbon capture technologies;
(ii) geological storage of carbon dioxide
in underground formations;
(iii) electric power generation; or
(iv) qualitative and quantitative
evaluation of the risk posed to health, safety,
or the environment (including drinking water
supplies) by the injection of carbon dioxide
into underground formations; and
(C) in the case of members that are full-time
Federal employees designated under subparagraph
(c)(1)(B), be serving in a technical capacity for the
Federal agency on one or more of the areas enumerated
in subparagraph (B).
(3) Appointment and designation.--Not later than 180 days
after the date of enactment of this Act, the President shall
appoint or designate (as the case may be) the members to the
Board in accordance with the requirements of this subsection.
(4) Term of service.--
(A) In general.--Except as provided under
subparagraph (B), each non-Federal member of the Board
shall serve for a term of 12 years and may be removed
by the President only for neglect of duty, malfeasance,
or other just cause for dismissal. Members of the Board
who are full-time Federal employees shall serve at the
pleasure of the President.
(B) First appointments.--In the case of the non-
Federal members that the President first appoints to
the Board--
(i) the Chairperson shall serve a term of 6
years; and
(ii) the 3 remaining non-Federal members to
the Board (other than the Chairperson) shall
serve for terms of 8, 10, and 12 years, as
designated by the President at the time of
appointment.
(C) Service until new appointment.--The term of a
non-Federal Board member shall continue after the
expiration of the term of the member until the date on
which a replacement is appointed by the President and
confirmed by the Senate.
(D) Vacancy.--Any non-Federal Board member
appointed to fill a vacancy in an unexpired term shall
serve only for the remainder of that term.
(E) Reappointment.--An individual who has served as
a Board member for a term of more than 8 years shall
not be eligible for reappointment.
(5) Chairperson.--
(A) Designation.--The President shall designate a
Chairperson from the non-Federal Board members that are
representatives from industry under paragraph (6)(E).
(B) Term of service.--The Chairperson of the Board
shall serve for a term of 6 years and may be
reappointed for a second-year term.
(6) Composition of board.--The Board shall consist of--
(A) 1 employee from the Department of Energy;
(B) 1 employee from Environmental Protection
Agency;
(C) 1 employee from the Department of Interior;
(D) 1 representative from a public utility
commission or other state governmental agency; and
(E) 3 representatives from industry, including 2
individuals who have substantial experience in the
electric power sector.
(7) Level of service.--
(A) Full-time service.--The Chairperson of the
Board shall serve on a full-time basis and may not
engage in any other business, vocation, or employment
while serving in the capacity of Chairperson.
(B) Part-time service.--Members of the Board who
are not serving as the Chairperson--
(i) shall serve on part-time basis, as
needed to perform the functions and
responsibilities of the Board;
(ii) may engage in other business,
vocation, or employment so long as there is no
direct conflict of interest with their official
work responsibilities of Board; and
(iii) in the case of each individual who is
employee of a Federal agency, may be assigned
to serve on the Board without reimbursement to
the Federal agency.
(8) Compensation.--Non-Federal members of the Board shall
be compensated at the rate prescribed for Level IV of the
Executive Schedule.
(d) Duties and Responsibilities of the Chairperson.--The
Chairperson shall be responsible on behalf of the Board for the
executive and administrative operation of the Board.
(e) Functions.--The Board shall--
(1) prescribe the form of cost reimbursement agreements
under section 404(c), offer such agreements to agencies that
have stewardship responsibility, and execute such agreements on
behalf of the United States;
(2) evaluate the adequacy of the Trust Fund and adjust the
level of the assessment as authorized under section 406(b);
(3) prescribe payment schedules for public claims under
section 407(b) and monitoring and remediation standards under
section 407(c)(1);
(4) determine, as provided in section 409, the extent to
which--
(A) public claims filed with the Board are payable
under section 405(a)(1) in accordance with applicable
payment schedules; and
(B) petitions to cover monitoring and remediation
costs incurred at storage facilities are payable under
section 405(a)(2).
(5) determine whether monitoring and remediation is
required at a certified post-closure storage facility
prescribed under section 407(c);
(6) make payments under cost reimbursement agreements
(including payments for monitoring and remediation costs) under
section 404(c); and
(7) exercise such other authorities as may be necessary or
appropriate to carry out its functions under the preceding
paragraphs of this subsection or other provisions of this
title, including assignment of employees from other Federal
agencies, employment of personnel, and entering into contracts.
(f) Powers.--The Board has the authority to--
(1) prescribe, by rule or order, such requirements for
monitoring certified post-closure storage facilities and for
making such inspections and reports as may be necessary or
appropriate to carry out this title;
(2) enter onto the premises or property of any storage
facility to carry out this title;
(3) issue an order requiring a person to comply with order,
rule or requirement that the Board has established under the
Act;
(4) commence a civil action in the United States District
Court to recover from any project operator any fees or
assessments not paid when due, after notice and an opportunity
to cure any deficiency within 30 days of such notice;
(5) bring an action against any person in the United States
District Court to enforce the provisions of this title or rules
or orders thereunder, and to obtain appropriate injunctive or
other relief; and
(6) seek civil or criminal penalties for violations of
provisions of this title, as provided under subsection (h).
(g) Technical Advisory Committee.--
(1) Establishment.--The Board shall establish an
independent technical advisory committee composed of 7 members,
each of whom has demonstrated knowledge and expertise with
respect to engineering, geological, or environmental matters
related to the storage of carbon dioxide in suitable
underground formations.
(2) Function.--The committee established under paragraph
(1) shall provide information, recommendations and guidance to
the Board on technical matters related to--
(A) the amount and duration of the assessment that
a project operator of a storage facility should pay
under section 406(b) to cover future anticipated
payments from the Trust Fund for the purposes described
under section 407;
(B) the profile of reasonably foreseeable risks
that the Board must develop for each type or class of
geological formation under section 406(b)(4)(B);
(C) payment schedules for determining the nature
and amount of compensation that the Board will pay from
the Trust Fund for public claims, as provided under
section 407(b);
(D) standards for determining whether and to the
extent that monitoring and remediation will be required
for carbon dioxide injected at a certified post-closure
storage facility, as provided under section 407(c); and
(E) other determinations or actions that the Board
must perform to carry out its responsibilities and
duties under this title.
(3) Additional research.--The committee established under
paragraph (1) shall advise the Board as to additional research
and technical studies that may be necessary to perform the
functions described under paragraph (2).
(h) Penalties.--
(1) Civil penalties.--Any person that knowingly violates
any provision of this title or any rule or order thereunder
shall be subject to a civil penalty of $10,000 per violation.
(2) Criminal penalties.--Any person that knowingly and
willfully violates any provision of this title or any rule or
order thereunder shall be subject to a fine of $50,000 or
imprisonment for a term of 2 years, or both.
(i) Public Comment and Judicial Review.--In prescribing rules of
general applicability under this title, the Secretary and the Board
shall provide an opportunity for public notice and comment. Those rules
shall be subject to review by the United States Courts of Appeal in
accordance with chapter 158 of title 28, United States Code. All other
agency actions under this title shall be reviewed in accordance with
chapter 7 of title 5, United States Code.
SEC. 409. ADJUDICATION OF PUBLIC CLAIMS.
(a) Public Claims Office.--
(1) Establishment.--There is established within the
Department of Energy an Office of Public Claims, which shall be
composed of administrative law judges who are responsible for
adjudicating public claims filed with the Board under section
405(a).
(2) Appointment.--After the first storage facility receives
a certificate of completion from the appropriate regulatory
authority, the Chairperson of the Board shall begin to appoint
as many administrative law judges as are necessary to
adjudicate public claims pending before the Board and may
select for appointment qualified administrative law judges who
are contracted from the Department of Energy or other Federal
agencies.
(3) Independence from board.--The administrative law judges
within the Office of Public Claims shall establish and
implement procedures to ensure the separation and independence
of the Office of Public Claims from the Board.
(b) Adjudicatory Procedures.--In adjudicating each public claim or
petition filed with the Board under section 405(a), the administrative
law judge shall--
(1) in the case of public claims made with respect to
certified post-closure storage facilities under section
405(a)(1), apply the appropriate payment schedules for
compensation that the Board has established under section
407(b);
(2) in the case of petitions for the reimbursement of
monitoring and remediation costs incurred at storage facilities
under section 405(a)(2), determine the reasonable costs for
performing the appropriate standards established for monitoring
and remediation under section 407(c); and
(3) issue a decision that is determined on the record after
opportunity for an agency hearing in accordance with sections
554, 555, and 556 of title 5, United States Code.-
(c) Appeals.--An aggrieved person or the Board may file an appeal
of a decision issued under subsection (b) to the United States Court of
Federal Claims. The appeal of such a decision shall be--
(1) filed within 60 days after the date that the decision
was issued by the administrative law judge; and
(2) reviewed in accordance with chapter 7 of title 5,
United States Code.
(d) Final Orders.--
(1) In general.--A decision issued under subsection (b)
shall become a final order of the Board 60 days after the
issuance of the decision unless within such 60-day period an
aggrieved person or the Board files an appeal of the decision
under subsection (c).
(2) Judicial review.--A decision for which an appeal is not
filed within the 60-day period provided under subsection (c)
becomes a final order that is not subject to judicial review by
any court or tribunal.
(e) Board Action.--The Board shall, as expeditiously as
practicable, make payment to each claimant and perform other actions
that may be required by a final order issued under subsection (d).
SEC. 410. FIRST MOVER PROJECTS.
(a) Project Selection.--
(1) In general.--The Secretary shall competitively select
10 carbon capture and geological sequestration projects as
first mover projects in accordance with the criteria prescribed
in paragraph (2). Each first mover project selected under this
paragraph shall be indemnified from liabilities arising from
the injection of carbon dioxide into the storage facility in
accordance with an agreement executed under subsection (b).
(2) Eligibility criteria.--A carbon capture and geological
sequestration project shall be eligible for selection as a
first mover project under paragraph (1) if the project--
(A) demonstrates the commercial application of an
integrated system for the capture, injection,
monitoring, and long term geological storage of carbon
dioxide;
(B) injects at least 1,000,000 tons of carbon
dioxide each year into a proposed geological storage
site that is capable of long-term storage of the
injected carbon dioxide, as provided under paragraph
(3);
(C) possesses the land or interests in land
necessary for the injection and storage of the carbon
dioxide at the geological storage site;
(D) obtains all necessary permits for the injection
of carbon dioxide into a suitable underground formation
and complies with the conditions of any necessary
permits that protect health, environment and safety;
and
(E) commits to maintain the financial protection
for remediation and civil claims, as described in
subsection (b)(2).
(3) Phased development of project.--A project may satisfy
the annual carbon dioxide injection requirement of paragraph
(2)(B) through a phased development, so long as--
(A) the Secretary establishes a legally binding
schedule for the phase-in of the project; and
(B) such schedule requires the project to achieve
an annual injection level of 1,000,000 tons by no later
than January 1, 2020.
(b) Indemnification Agreements.--
(1) In general.--Notwithstanding section 1341 of title 31,
United States Code, but subject to limitations in appropriation
Acts, the Secretary shall execute indemnification agreements
for the 10 first mover projects that the Secretary has selected
under subsection (a). Each agreement executed under this
paragraph shall indemnify owners and operators of the first
mover project for all or part of the costs incurred to satisfy
remediation and civil claims (whenever made) that arise from
injection of carbon dioxide into a storage facility, as
determined by the Secretary in accordance with the requirements
of this section.
(2) Scope of indemnification.--The owners and operators of
a first mover project shall maintain financial protection in a
form and in an amount acceptable to the Secretary. The
indemnification authorized under paragraph (1) shall apply to
the costs incurred for remediation and civil claims that are in
excess of the amount of liability covered by financial
protection maintained for the project under paragraph (1).
(3) Conditions and requirements.--The Secretary may impose
such conditions on indemnification agreements executed under
paragraph (1) as may be necessary or appropriate to protect the
financial interest of the United States, including a
requirement to limit the indemnification provided to each first
mover project under this section during the stewardship period
to the extent that the Secretary determines that potential
long-term liabilities can be adequately addressed through the
coverage provided by the Trust Fund under other provisions of
this title.
(c) Consolidation of Environmental Reviews.--In performing
environmental reviews that may apply to an indemnification agreement
for a particular first mover project under subsection (b), the
Secretary shall rely on prior environmental reviews that were performed
to assess other major Federal actions relating to the development or
operation of that first mover project under 102 of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332).
SEC. 411. RELATIONSHIP TO OTHER LAW.
(a) Prior to Stewardship Period.--This title does not affect the
application of any Federal or State law to any storage facility for
which a regulatory authority has not issued certificate of completion.
(b) During the Stewardship Period.--This title does not affect the
application to the Trust Fund, the Board or any stewardship agency of
any Federal or State environmental law with respect to the injection of
carbon dioxide at any certified post-closure facility.
(c) State Stewardship Laws.--This title does not affect the
application of any State law related to geologic sequestration trust
funds that may apply to a storage facility during the operational or
post-injection phase prior to the stewardship period.
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