[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2803 Introduced in Senate (IS)]
<DOC>
115th CONGRESS
2d Session
S. 2803
To amend the Energy Policy Act of 2005 to improve the conversion, use,
and storage of carbon dioxide produced from fossil fuels, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 8, 2018
Mr. Manchin (for himself and Ms. Heitkamp) introduced the following
bill; which was read twice and referred to the Committee on Energy and
Natural Resources
_______________________________________________________________________
A BILL
To amend the Energy Policy Act of 2005 to improve the conversion, use,
and storage of carbon dioxide produced from fossil fuels, 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 ``Fossil Energy Utilization,
Enhancement, and Leadership Act of 2018''.
SEC. 2. FOSSIL ENERGY.
Section 961(a) of the Energy Policy Act of 2005 (42 U.S.C.
16291(a)) is amended by adding at the end the following:
``(8) Improving the conversion, use, and storage of carbon
dioxide produced from fossil fuels.''.
SEC. 3. ESTABLISHMENT OF COAL TECHNOLOGY PROGRAM.
The Energy Policy Act of 2005 is amended by striking section 962
(42 U.S.C. 16292) and inserting the following:
``SEC. 962. COAL TECHNOLOGY PROGRAM.
``(a) Definitions.--In this section:
``(1) Large-scale pilot project.--The term `large-scale
pilot project' means a pilot project that--
``(A) represents the scale of technology
development beyond laboratory development and bench
scale testing, but not yet advanced to the point of
being tested under real operational conditions at
commercial scale;
``(B) represents the scale of technology necessary
to gain the operational data needed to understand the
technical and performance risks of the technology
before the application of that technology at commercial
scale or in commercial-scale demonstration; and
``(C) is large enough--
``(i) to validate scaling factors; and
``(ii) to demonstrate the interaction
between major components so that control
philosophies for a new process can be developed
and enable the technology to advance from
large-scale pilot plant application to
commercial-scale demonstration or application.
``(2) Net-negative carbon dioxide emissions project.--The
term `net-negative carbon dioxide emissions project' means a
project--
``(A) that employs a technology for thermochemical
coconversion of coal and biomass fuels that--
``(i) uses a carbon capture system; and
``(ii) with carbon dioxide removal, the
Secretary determines can provide electricity,
fuels, or chemicals with net-negative carbon
dioxide emissions from production and
consumption of the end products, while removing
atmospheric carbon dioxide;
``(B) that will proceed initially through a large-
scale pilot project for which front-end engineering
will be performed for bituminous, subbituminous, and
lignite coals; and
``(C) through which each use of coal will be
combined with the use of a regionally indigenous form
of biomass energy, provided on a renewable basis, that
is sufficient in quantity to allow for net-negative
emissions of carbon dioxide (in combination with a
carbon capture system), while avoiding impacts on food
production activities.
``(3) Program.--The term `program' means the program
established under subsection (b)(1).
``(4) Transformational technology.--
``(A) In general.--The term `transformational
technology' means a power generation technology that
represents a significant change in the methods used to
convert energy that will enable a step change in
performance, efficiency, and cost of electricity as
compared to the technology in existence on the date of
enactment of the Fossil Energy Utilization,
Enhancement, and Leadership Act of 2018.
``(B) Inclusions.--The term `transformational
technology' includes a broad range of technology
improvements, including--
``(i) thermodynamic improvements in energy
conversion and heat transfer, including--
``(I) oxygen combustion;
``(II) chemical looping; and
``(III) the replacement of steam
cycles with supercritical carbon
dioxide cycles;
``(ii) improvements in steam or carbon
dioxide turbine technology;
``(iii) improvements in carbon capture
systems technology;
``(iv) improvements in small-scale and
modular coal-fired technologies with reduced
carbon output or carbon capture that can
support incremental power generation capacity
additions; and
``(v) any other technology the Secretary
recognizes as transformational technology.
``(b) Coal Technology Program.--
``(1) In general.--The Secretary shall establish a coal
technology program to ensure the continued use of the abundant,
domestic coal resources of the United States through the
development of technologies that will significantly improve the
efficiency, effectiveness, costs, and environmental performance
of coal use.
``(2) Requirements.--The program shall include--
``(A) a research and development program;
``(B) large-scale pilot projects;
``(C) demonstration projects;
``(D) net-negative carbon dioxide emissions
projects; and
``(E) a front-end engineering and design program.
``(3) Program goals and objectives.--In consultation with
the interested entities described in paragraph (4)(C), the
Secretary shall develop goals and objectives for the program to
be applied to the technologies developed within the program,
taking into consideration the following objectives:
``(A) Ensure reliable, low-cost power from new and
existing coal plants.
``(B) Achieve high conversion efficiencies.
``(C) Address emissions of carbon dioxide through
high-efficiency platforms and carbon capture from new
and existing coal plants.
``(D) Support small-scale and modular technologies
to enable incremental capacity additions and load
growth, in addition to large-scale generation
technologies.
``(E) Support baseload operations for new and
existing applications of coal generation.
``(F) Further reduce emissions of criteria
pollutants and reduce the use and manage the discharge
of water in power plant operations.
``(G) Accelerate the development of technologies
that have transformational energy conversion
characteristics.
``(H) Validate safe geological storage of large
volumes of anthropogenic sources of carbon dioxide and
support the development of the infrastructure needed to
support a carbon dioxide use and storage industry.
``(I) Examine methods of converting coal to other
valuable products and commodities in addition to
electricity.
``(4) Consultations required.--In carrying out the program,
the Secretary shall--
``(A) undertake international collaborations,
taking into consideration the recommendations of the
National Coal Council;
``(B) use existing authorities to encourage
international cooperation; and
``(C) consult with interested entities, including--
``(i) coal producers;
``(ii) industries that use coal;
``(iii) organizations that promote coal and
advanced coal technologies;
``(iv) environmental organizations;
``(v) organizations representing workers;
and
``(vi) organizations representing
consumers.
``(c) Report.--
``(1) In general.--Not later than 18 months after the date
of enactment of the Fossil Energy Utilization, Enhancement, and
Leadership Act of 2018, the Secretary shall submit to Congress
a report describing the program goals and objectives adopted
under subsection (b)(3).
``(2) Update.--Not less frequently than once every 2 years
after the initial report is submitted under paragraph (1), the
Secretary shall submit to Congress a report describing the
progress made towards achieving the program goals and
objectives adopted under subsection (b)(3).
``(d) Funding.--
``(1) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary to carry out
this section, to remain available until expended--
``(A) for activities under the research and
development program component described in subsection
(b)(2)(A)--
``(i) $200,000,000 for each of fiscal years
2019 and 2020; and
``(ii) $150,000,000 for each of fiscal
years 2021 through 2023;
``(B) for activities under the demonstration
projects program component described in subsection
(b)(2)(C)--
``(i) $50,000,000 for each of fiscal years
2019 and 2020;
``(ii) $150,000,000 for fiscal year 2021;
and
``(iii) $200,000,000 for each of fiscal
years 2022 and 2023;
``(C) subject to paragraph (2), for activities
under the large-scale pilot projects program component
described in subsection (b)(2)(B), $250,000,000 for
each of fiscal years 2019 through 2023;
``(D) for activities under the net-negative carbon
dioxide emissions projects program component described
in subsection (b)(2)(D), $22,000,000 for each of fiscal
years 2019 through 2023; and
``(E) for activities under the front-end
engineering and design program described in subsection
(b)(2)(E), $50,000,000 for each of fiscal years 2019
through 2023.
``(2) Cost sharing for large-scale pilot projects.--
Activities under subsection (b)(2)(B) shall be subject to the
cost-sharing requirements of section 988(b).''.
SEC. 4. REPORT ON CARBON DIOXIDE CAPTURE CONTRACTING AUTHORITY.
Section 963 of the Energy Policy Act of 2005 (42 U.S.C. 16293) is
amended by adding at the end the following:
``(e) Report on Carbon Dioxide Capture Contracting Authority.--
``(1) Definition of electric generation unit.--In this
subsection, the term `electric generation unit' means an
electric generation unit that--
``(A) uses coal-based generation technology; and
``(B) is capable of capturing carbon dioxide
emissions from the unit.
``(2) Report.--Not later than 180 days after the date of
enactment of the Fossil Energy Utilization, Enhancement, and
Leadership Act of 2018, the Secretary shall prepare and submit
to the appropriate committees of Congress a report that--
``(A) describes the costs and benefits of entering
into long-term binding contracts on behalf of the
Federal Government with qualified parties to provide
support for capturing carbon dioxide from electricity
generated at an electric generation unit or carbon
dioxide captured from an electric generation unit and
sold to a purchaser for--
``(i) the recovery of crude oil; or
``(ii) other purposes for which a
commercial market exists;
``(B) contains an analysis of how the Department
would establish, implement, and maintain a contracting
program described in subparagraph (A); and
``(C) outlines options for how contracts may be
structured, and regulations that would be necessary, to
implement a contracting program described in
subparagraph (A).''.
SEC. 5. CARBON UTILIZATION PROGRAM.
(a) In General.--Subtitle F of title IX of the Energy Policy Act of
2005 (42 U.S.C. 16291 et seq.) is amended by adding at the end the
following:
``SEC. 969. CARBON UTILIZATION PROGRAM.
``(a) In General.--The Secretary shall carry out a program of
research, development, and demonstration for carbon utilization--
``(1) to assess and monitor--
``(A) potential changes in lifecycle carbon dioxide
emissions; and
``(B) other environmental safety indicators of new
technologies, practices, processes, or methods used in
enhanced hydrocarbon recovery; and
``(2) to identify and evaluate novel uses for carbon,
including the conversion of carbon dioxide for commercial and
industrial products, such as--
``(A) chemicals;
``(B) plastics;
``(C) building materials;
``(D) fuels;
``(E) cement; or
``(F) products of coal utilization in power systems
or other applications.
``(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section--
``(1) $15,000,000 for fiscal year 2019;
``(2) $16,000,000 for fiscal year 2020; and
``(3) $17,000,000 for fiscal year 2021.''.
(b) Study.--
(1) In general.--The Secretary of Energy shall enter into
an agreement with the National Academies of Sciences,
Engineering, and Medicine under which the National Academies of
Sciences, Engineering, and Medicine shall conduct a study to
assess any barriers and opportunities relating to
commercializing carbon dioxide in the United States.
(2) Requirements.--The study under paragraph (1) shall--
(A) analyze challenges to commercializing carbon
dioxide, including--
(i) creating a national system of carbon
dioxide pipelines;
(ii) mitigating environmental impacts; and
(iii) regional economic challenges and
opportunities;
(B) identify potential markets, industries, or
sectors that may benefit from greater access to
commercial carbon dioxide;
(C) assess--
(i) the state of infrastructure as of the
date of the study; and
(ii) any necessary updates to
infrastructure to allow for the integration of
safe and reliable carbon dioxide
transportation, utilization, and storage;
(D) estimate the economic impact of a well-
integrated national carbon dioxide pipeline system;
(E) assess the global status and progress of carbon
utilization technologies (both chemical and biological)
in practice as of the date of the study that utilize
waste carbon, including carbon dioxide, carbon
monoxide, methane, and biogas, from power generation,
biofuels production, and other industrial processes;
(F) identify emerging technologies and approaches
for carbon utilization that show promise for scale-up,
demonstration, deployment, and commercialization;
(G) analyze the factors associated with making
carbon utilization technologies viable at a commercial
scale, including carbon waste stream availability,
economics, market capacity, energy, and lifecycle
requirements;
(H)(i) assess the major technical challenges
associated with increasing the commercial viability of
carbon reuse technologies; and
(ii) identify the research and development
questions that will address the challenges described in
clause (i);
(I)(i) assess research efforts being carried out as
of the date of the study, including basic, applied,
engineering, and computational research efforts, that
are addressing the challenges described in subparagraph
(H)(i); and
(ii) identify gaps in the research efforts under
clause (i); and
(J) develop a comprehensive research agenda that
addresses long- and short-term research needs and
opportunities.
(3) Deadline.--Not later than 180 days after the date of
enactment of this Act, the National Academies of Sciences,
Engineering, and Medicine shall submit to the Secretary of
Energy a report describing the results of the study under
paragraph (1).
SEC. 6. INTERAGENCY TASK FORCE ON CARBON DIOXIDE PIPELINES.
(a) In General.--Not later than 60 days after the date on which the
study under section 5(b)(1) is submitted, the Secretary of Energy
(referred to in this section as the ``Secretary'') shall convene an
interagency task force (referred to in this section as the ``task
force'') to assess the potential for a national system of carbon
dioxide pipelines.
(b) Membership.--The task force shall include representatives of
each of the following:
(1) The Department of Energy.
(2) The Department of the Interior.
(3) The Environmental Protection Agency.
(4) The Department of Transportation.
(5) The Federal Energy Regulatory Commission.
(6) Other Federal agencies identified by the Secretary.
(7) State, local, and Tribal governments.
(c) Annual Workshops.--
(1) In general.--The task force shall conduct annual
workshops to discuss the potential of, and progress toward, an
accessible and functioning national system of carbon dioxide
pipelines.
(2) Participants.--The annual workshops under paragraph (1)
shall be--
(A) conducted with representatives of relevant
Federal agencies; and
(B) open to representatives from--
(i) industry;
(ii) State, local, and Tribal governments;
(iii) academic researchers;
(iv) environmental organizations; and
(v) other stakeholders identified by the
Secretary.
(3) Public notice.--Not later than 60 days before the date
on which the task force conducts an annual workshop under
paragraph (1), the Secretary shall provide public notice of the
annual workshop to ensure all interested parties can attend.
(4) Reports.--
(A) Annual reports.--The Secretary shall submit to
the Committee on Energy and Natural Resources of the
Senate and the Committees on Energy and Commerce and
Science, Space, and Technology of the House of
Representatives an annual report summarizing the
activities and progress of the task force.
(B) Final report.--Not later than 1 year after the
termination date described in subsection (d), the
Secretary shall submit to the Committee on Energy and
Natural Resources of the Senate and the Committees on
Energy and Commerce and Science, Space, and Technology
of the House of Representatives a final report laying
out a plan for the successful establishment of a
national carbon dioxide pipeline system, including a
description of--
(i) the plan for engineering, building,
siting, and maintenance of a national carbon
dioxide pipeline system;
(ii) the plan for permitting and insuring
pipelines under a national carbon dioxide
pipeline system;
(iii) any Federal and State policy
challenges to establishing a national carbon
dioxide pipeline system;
(iv) incentives or resources necessary to
encourage the use of the most advanced leak
detection and mitigation technologies and
monitoring capabilities available in a national
carbon dioxide pipeline system;
(v) how a national carbon dioxide pipeline
system should be regulated to ensure safety and
minimal environmental impacts; and
(vi) how a national carbon dioxide pipeline
system might be integrated into the pipeline
systems in existence as of the date of the
establishment of a national carbon dioxide
pipeline system.
(d) Sunset.--The authority for the task force under this section
shall terminate on the date that is 3 years after the date on which the
task force first convenes.
SEC. 7. RARE EARTH ELEMENT ADVANCED COAL TECHNOLOGIES.
(a) Findings.--Congress finds that--
(1) the United States is largely dependent on foreign
imports for the domestic supply of rare earth elements and
minerals in the United States;
(2) as of the date of enactment of this Act, the United
States does not have domestic production capability for, or a
guaranteed supply chain of, rare earth elements and minerals,
particularly in times of national crisis;
(3) access to certain rare earth elements and minerals is
critical for the national security of the United States;
(4) China maintains a near monopoly of the global supply
chain of rare earth elements and minerals;
(5) the successful development of commercially viable
refining methods of rare earth elements and minerals from coal
byproducts could lead to new economic development opportunities
in parts of the United States most affected by the downturn of
the coal industry;
(6) rare earth elements--
(A) comprise 17 elements on the periodic table,
including--
(i) the lanthanides, which are lanthanum
(La), cerium (Ce), praseodymium (Pr), neodymium
(Nd), promethium (Pm), samarium (Sm), europium
(Eu), gadolinium (Gd), terbium (Tb), dysprosium
(Dy), holmium (Ho), erbium (Er), thulium (Tm),
ytterbium (Yb), and lutetium (Lu); and
(ii) transition elements, which are
scandium (Sc) and yttrium (Y); and
(B) can be divided into--
(i) light rare earth elements, which are
lanthanum (La), cerium (Ce), praseodymium (Pr),
neodymium (Nd), promethium (Pm), and samarium
(Sm); and
(ii) heavy rare earth elements, which are
scandium (Sc), yttrium (Y), europium (Eu),
gadolinium (Gd), terbium (Tb), dysprosium (Dy),
holmium (Ho), erbium (Er), thulium (Tm),
ytterbium (Yb), and lutetium (Lu); and
(7) it is in the interest of the Federal Government--
(A) to guide responsible domestic production of
rare earth elements and minerals to ensure industry and
consumers in the United States have access to a
reliable domestic supply of valuable rare earth
elements and minerals; and
(B)(i) to identify the areas of highest potential
interruption in the global supply chain of rare earth
elements and minerals; and
(ii) to strengthen the position of the United
States in that supply chain by mitigating potential
interruptions through the development of advanced coal
technologies.
(b) Program for Extraction and Recovery of Rare Earth Elements and
Minerals From Coal and Coal Byproducts.--
(1) In general.--The Secretary of Energy, acting through
the Assistant Secretary for Fossil Energy (referred to in this
subsection as the ``Secretary''), shall carry out a program
under which the Secretary shall develop advanced separation
technologies for the extraction and recovery of rare earth
elements and minerals from coal and coal byproducts.
(2) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out the program
described in paragraph (1) $20,000,000 for each of fiscal years
2019 through 2026.
(c) Assessment and Report.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Energy, in consultation
with the Secretary of Defense (referred to in this subsection
as the ``Secretary''), shall carry out, and submit to the
Committee on Energy and Natural Resources of the Senate and the
Committees on Energy and Commerce and Science, Space, and
Technology of the House of Representatives--
(A) an assessment--
(i) identifying and ranking the rare earth
elements that--
(I) are most important to consumers
in the United States;
(II) are most jeopardized in the
global supply chain; and
(III) will have the greatest impact
to consumers in the United States in
the event of a disruption in the global
supply chain;
(ii) evaluating the development of advanced
separation technologies for the extraction and
recovery of rare earth elements and minerals
from coal and coal byproducts (referred to in
this paragraph as the ``technologies'');
(iii) identifying and evaluating the
results of the development of the technologies,
including the results with respect to the
extraction and recovery of each rare earth
element;
(iv) determining what the technologies are
capable of producing;
(v) evaluating the performance of the
technologies, including what the technologies--
(I) succeed and fail at
accomplishing; and
(II) can and cannot do cost-
effectively; and
(vi)(I) evaluating the market impact on
each rare earth mineral of the penetration of
commercially viable technologies; and
(II) how the penetration of commercially
viable coal-based technology will impact the
global supply chain; and
(B) a report analyzing--
(i) the additional resources required for
the development of commercial-ready deployment
of technologies that are second generation and
transformational; and
(ii) the market impact of processes to
treat and recover rare earth elements and
minerals from sludge generated during treatment
of acid mine drainage from coal mines.
(2) Requirement.--In carrying out the assessment and report
under paragraph (1), the Secretary shall focus on the rare
earth elements determined by the Secretary to be most critical
to the national security of the United States.
SEC. 8. RESEARCH AND DEVELOPMENT OF NATURAL GAS.
Nothing in this Act or an amendment made by this Act precludes the
Secretary of Energy from using funds authorized to be made available by
this Act or an amendment made by this Act for the research and
development of natural gas if the Secretary of Energy determines that
the funding results in the investment in technologies that are
primarily developed and tested for coal-based applications.
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