Advanced Clean Coal Technology Investment in Our Nation Act of 2014 or the ACCTION Act of 2014 - Amends the Energy Policy Act of 2005 to require the Department of Energy (DOE) to implement a program to demonstrate the integration of systems for the capture, transportation, and injection of carbon dioxide from industrial sources for long-term geological storage or enhanced oil recovery at a commercial scale.
Expands the types of activities that must be undertaken under the existing coal and related technologies program. Permits DOE to carry out a Transformational Coal Technology Program.
Requires DOE to establish an advisory committee to report on the carbon capture and sequestration program and the coal and related technologies program.
Makes projects under the Innovative Technology Loan Guarantee Program eligible to receive other forms of federal assistance. Directs DOE, within two years, to give final approval to applications for loan guarantees and make loans for advanced fossil energy technology projects under the Program.
Sets forth provisions to streamline and expedite review of federal authorizations for clean coal generating projects.
Amends the Internal Revenue Code to: (1) allow accelerated amortization of any mechanical or electronic system which is installed on a coal-fired electric generation unit and which reduces carbon dioxide emissions by specified means; (2) allow a new credit for investment in carbon dioxide capture, transport, and storage property; and (3) create a clean energy coal bond.
Establishes the Enhanced Recovery Program, a variable price support program, to accelerate the construction and operation of advanced coal-fueled projects that capture carbon dioxide emissions and sell or use the carbon dioxide for enhanced recovery.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2152 Introduced in Senate (IS)]
113th CONGRESS
2d Session
S. 2152
To direct Federal investment in carbon capture and storage and other
clean coal technologies, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 25, 2014
Ms. Heitkamp introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To direct Federal investment in carbon capture and storage and other
clean coal 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Advanced Clean
Coal Technology Investment in Our Nation Act of 2014'' or the ``ACCTION
Act of 2014''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
TITLE I--FEDERAL INVESTMENT IN CLEAN COAL TECHNOLOGIES
Sec. 101. Large-scale carbon storage program.
Sec. 102. Research, development and demonstration programs.
Sec. 103. Innovative technology loan guarantee program.
Sec. 104. Coordination of clean coal generating projects.
TITLE II--FEDERAL INCENTIVES FOR PRIVATE INVESTMENT IN CLEAN COAL
TECHNOLOGIES
Sec. 201. Seven-year amortization for certain systems installed on
coal-fired electric generation units.
Sec. 202. Credit for carbon sequestration from coal facilities.
Sec. 203. Variable price support for carbon dioxide sequestration.
Sec. 204. Clean energy coal bonds.
TITLE III--REPORTS REQUIRED
Sec. 301. Definitions.
Sec. 302. Reports to Congress.
SEC. 2. FINDINGS.
Congress finds that--
(1) the President believes that the United States energy
policy must have ``an all-of-the-above strategy for the 21st
century that develops every source of American-made energy'';
(2) according to the Energy Information Administration, 37
percent of all energy generated in the United States comes from
coal and by 2040, coal will still account for 32 percent of
energy generation in the United States;
(3) the United States has enough recoverable coal reserves
to last at least another 250 years;
(4) as the world becomes increasingly carbon constrained,
coal-fired power plants must increasingly be integrated with
carbon capture and storage systems;
(5) efficiency improvements to the coal fleet will decrease
carbon emissions and use less coal while providing the same
power;
(6) the potential to increase efficiency is evident in the
current fleet of power plants in the United States, as the top
10 percent of coal plants have efficiencies as high as 37
percent while the average plant has an efficiency of 32
percent;
(7) efficiencies as high as 48 percent may be attained with
ultrasupercritical coal-fired power plants;
(8) replacing the average subcritical coal-fired power
plant with a supercritical or ultrasupercritical coal-fired
power plant would reduce carbon emissions by 18 to 22 percent
per megawatt hour of energy generated; and
(9) the coal industry is a significant source of jobs in
the United States as in 2012 alone, coal was responsible for
137,650 jobs for coal miners, 92,472 jobs for operator
employees, and 45,178 jobs for contractors.
TITLE I--FEDERAL INVESTMENT IN CLEAN COAL TECHNOLOGIES
SEC. 101. LARGE-SCALE CARBON STORAGE 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 inserting after section
963 (42 U.S.C. 16293) the following:
``SEC. 963A. LARGE-SCALE CARBON STORAGE PROGRAM.
``(a) Definitions.--In this section:
``(1) Industrial source.--The term `industrial source'
means any source of carbon dioxide that is not naturally
occurring.
``(2) Large-scale.--The term `large-scale' means the
injection from industrial sources into a geological formation
of--
``(A) over 1,000,000 tons of carbon dioxide each
year; or
``(B) carbon dioxide to a scale that demonstrates
the ability to inject and sequester several million
metric tons of industrial source carbon dioxide for a
large number of years.
``(3) Secretary concerned.--The term `Secretary concerned'
means--
``(A) the Secretary of Agriculture (acting through
the Chief of the Forest Service), with respect to
National Forest System land; and
``(B) the Secretary of the Interior, with respect
to land managed by the Bureau of Land Management
(including land held for the benefit of an Indian
tribe).
``(b) Program.--The Secretary shall carry out a program to
demonstrate the integration of systems for the capture, transportation,
and injection of carbon dioxide from industrial sources, either for the
purpose of long-term geological storage or enhanced oil recovery at a
commercial scale.
``(c) Authorized Assistance.--
``(1) In general.--In carrying out the program, the
Secretary may enter into cooperative agreements to provide
financial and technical assistance to up to 10 large-scale
geological storage or enhanced oil recovery projects.
``(2) Limitation.--Not fewer than 3 of the 10 projects
selected shall be large-scale projects that undertake site
characterization and permitting to qualify the projects as
ready for long-term saline storage sites.
``(d) Project Selection.--The Secretary shall competitively select
recipients of cooperative agreements under this section from among
applicants that--
``(1) provide the Secretary with sufficient geological site
information (including hydrogeological and geophysical
information) to establish that the proposed geological
formation is capable of use for enhanced oil recovery and, in
the case of geological storage, is capable of long-term storage
of the injected carbon dioxide, including--
``(A) the location, extent, and storage capacity of
the geological storage unit at the site into which the
carbon dioxide will be injected;
``(B) the principal potential modes of
geomechanical failure in the geological storage unit;
``(C) the ability of the geological storage unit to
retain injected carbon dioxide;
``(D) the measurement, monitoring, and verification
requirements necessary to ensure adequate information
on the operation of the geological storage unit during
and after the injection of carbon dioxide; and
``(E) a study and report on the rate of injection
of carbon dioxide from power plants (based on operating
the plant on a 24-hours-a-day, 7-days-a-week, and 365-
days-a-year basis over several decades) necessary to
avoid--
``(i) imbalances of carbon dioxide; and
``(ii) making the proposed geological
formation of the site into which the carbon
dioxide will be injected unusable, unstable, or
such that there would be forced stoppages of
injection;
``(2) have legal authority to use the land or interests in
land necessary for--
``(A) the injection of the carbon dioxide at the
proposed geological storage unit or enhanced oil
recovery site; and
``(B) the storage, closure, monitoring, and long-
term stewardship of the geological storage unit for
geological storage of carbon dioxide; and
``(3) sequester not fewer than 500,000 metric tons of
carbon dioxide in 1 contiguous geographic and geologic
formation.
``(e) Terms and Conditions.--The Secretary shall condition receipt
of financial assistance pursuant to a cooperative agreement under this
section on the recipient agreeing--
``(1) to comply with all applicable Federal and State laws
(including regulations), including--
``(A) the requirements of the underground injection
control program under part C of the Safe Drinking Water
Act (42 U.S.C. 300h et seq.) (referred to in this
section as the `UIC program'); and
``(B) any other Federal and State requirements to
protect drinking water supplies; and
``(2) in the case of industrial sources subject to the
Clean Air Act (42 U.S.C. 7401 et seq.), to inject only carbon
dioxide captured from industrial sources in compliance with
that Act.
``(f) Indemnification Agreements for Geological Storage.--
``(1) Definition of liability.--In this subsection, the
term `liability' means any legal liability for--
``(A) bodily injury, sickness, disease, or death;
``(B) loss of or damage to property, or loss of use
of property; or
``(C) injury to or destruction or loss of natural
resources, including fish, wildlife, and drinking water
supplies.
``(2) Agreements.--Not later than 1 year after the date of
the receipt by the Secretary of a completed application for
assistance authorized under subsection (c), the Secretary may
agree to indemnify and hold harmless the recipient of a
cooperative agreement under this section from liability arising
out of or resulting from a demonstration project in excess of
the amount of liability covered by financial protection
maintained by the recipient in accordance with the requirements
of the UIC program.
``(3) Exception for gross negligence and intentional
misconduct.--Notwithstanding paragraph (1), the Secretary may
not indemnify the recipient of a cooperative agreement under
this section from liability arising out of conduct of a
recipient that is grossly negligent or that constitutes
intentional misconduct.
``(4) Collection of fees.--
``(A) In general.--The Secretary shall collect a
fee from any person with whom an agreement for
indemnification is executed under this subsection in an
amount that is equal to the net present value of
payments made by the United States to cover liability
under the indemnification agreement.
``(B) Amount.--The Secretary shall establish, by
regulation, criteria for determining the amount of the
fee, taking into account--
``(i) the likelihood of an incident
resulting in liability to the United States
under the indemnification agreement; and
``(ii) other factors pertaining to the
hazard of the indemnified project.
``(C) Use of fees.--Fees collected under this
paragraph shall be deposited in the Treasury and
credited to miscellaneous receipts.
``(5) Contracts in advance of appropriations.--
``(A) In general.--Subject to subparagraph (B), the
Secretary may enter into agreements of indemnification
under this subsection in advance of appropriations and
incur obligations without regard to section 1341 of
title 31, United States Code (commonly known as the
`Anti-Deficiency Act'), or section 11 of title 41,
United States Code (commonly known as the `Adequacy of
Appropriations Act').
``(B) Limitation.--The amount of indemnification
under this subsection shall not exceed $10,000,000,000
(adjusted not less than once during each 5-year period
following the date of enactment of this section, in
accordance with the aggregate percentage change in the
Consumer Price Index since the previous adjustment
under this subparagraph), in the aggregate, for all
persons indemnified in connection with an agreement and
for each project, including such legal costs as are
approved by the Secretary.
``(6) Conditions of agreements of indemnification.--
``(A) In general.--The agreement shall provide
that, if the Secretary makes a determination that there
is a substantial likelihood that the United States will
be required to make indemnity payments under the
agreement, the Attorney General--
``(i) shall collaborate with the recipient
of an award under this subsection; and
``(ii) may--
``(I) approve the payment of any
claim under the agreement of
indemnification;
``(II) appear on behalf of the
recipient;
``(III) take charge of an action;
and
``(IV) settle or defend an action.
``(B) Settlement of claims.--
``(i) In general.--The Attorney General
shall have final authority on behalf of the
United States to settle or approve the
settlement of any claim under this subsection
on a fair and reasonable basis with due regard
for the purposes of this subsection.
``(ii) Expenses.--The settlement shall not
include expenses in connection with the claim
incurred by the recipient.
``(g) Federal Land.--
``(1) In general.--The Secretary concerned may authorize
the siting of a project on Federal land under the jurisdiction
of the Secretary concerned in a manner consistent with
applicable laws and land management plans and subject to such
terms and conditions as the Secretary concerned determines to
be necessary.
``(2) Framework for geological carbon sequestration on
public land.--In determining whether to authorize a project on
Federal land, the Secretary concerned shall take into account
the framework for geological carbon sequestration on public
land prepared in accordance with section 714 of the Energy
Independence and Security Act of 2007 (Public Law 110-140; 121
Stat. 1715).
``(h) Acceptance of Title and Long-Term Monitoring.--
``(1) In general.--As a condition of a cooperative
agreement under this section, the Secretary may accept title
to, or transfer of administrative jurisdiction from another
Federal agency over, any land or interest in land necessary for
the monitoring, remediation, or long-term stewardship of a
project site.
``(2) Long-term monitoring activities for geological
storage.--After accepting title to, or transfer of, a site
closed in accordance with this section, the Secretary shall
monitor the site and conduct any remediation activities to
ensure the geological integrity of the site and prevent any
endangerment of public health or safety.
``(3) Funding.--There is appropriated to the Secretary, out
of funds of the Treasury not otherwise appropriated, such sums
as are necessary to carry out paragraph (2).
``(i) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as are necessary.''.
SEC. 102. RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMS.
(a) In General.--Section 962 of the Energy Policy Act of 2005 (42
U.S.C. 16292) is amended--
(1) in subsection (a)--
(A) in paragraph (10), by striking ``and'' at the
end;
(B) in paragraph (11), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(12) specific additional programs to address water use
and reuse;
``(13) the testing, including the construction of testing
facilities, for high temperature materials for use in advanced
systems for combustion or use of coal; and
``(14) innovations to application of existing coal
conversion systems designed to increase efficiency of
conversion, flexibility of operation, and other modifications
to address existing usage requirements.'';
(2) by redesignating subsections (b) through (d) as
subsections (c) through (e), respectively;
(3) by inserting after subsection (a) the following:
``(b) Transformational Coal Technology Program.--
``(1) In general.--As part of the program established under
subsection (a), the Secretary may carry out a program designed
to undertake research, development, and demonstration of
technologies, including the accelerated development of--
``(A) chemical looping technology;
``(B) supercritical carbon dioxide power generation
cycles;
``(C) pressurized oxycombustion, including new and
retrofit technologies; and
``(D) other technologies that are characterized by
the use of--
``(i) alternative energy cycles;
``(ii) thermionic devices using waste heat;
``(iii) fuel cells;
``(iv) replacement of chemical processes
with biotechnology;
``(v) nanotechnology;
``(vi) new materials in applications (other
than extending cycles to higher temperature and
pressure), such as membranes or ceramics;
``(vii) carbon utilization (other than
enhanced oil recovery), such as construction
materials, using low quality energy to
reconvert back to a fuel, or manufactured food;
``(viii) advanced gas separation concepts;
and
``(ix) other technologies, including--
``(I) modular, manufactured
components; and
``(II) innovative production or
research techniques, such as using 3-D
printer systems, for the production of
early research and development
prototypes.
``(2) Cost share.--In carrying out the program described in
paragraph (1), the Secretary may enter into partnerships with
private entities to share the costs of carrying out the
program.''; and
(4) in subsection (c) (as so redesignated)--
(A) by striking paragraph (1) and inserting the
following:
``(1) In general.--In carrying out programs authorized by
this section, during each of calendar years 2015, 2017, 2020,
and annually thereafter, the Secretary shall identify cost and
performance goals for coal-based technologies that would permit
the continued cost-competitive use of coal for the production
of electricity, chemical feedstocks, transportation fuels, and
other marketable products.''; and
(B) in paragraph (2), by striking ``date of
enactment of this Act'' each place it appears and
inserting ``date of enactment of the Advanced Clean
Coal Technology Investment in Our Nation Act of 2014''.
(b) Advisory Committee; Authorization of Appropriations.--Section
963 of the Energy Policy Act of 2005 (42 U.S.C. 16293) is amended--
(1) in subsection (c), by striking paragraph (6) and
inserting the following:
``(6) Advisory committee.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall establish an advisory committee--
``(i) to undertake, not less frequently
than once every 3 years, a review and prepare a
report on the progress being made by the
Department of Energy to achieve the goals
described in subsections (a) and (b) of section
962 and subsection (b) of this section; and
``(ii) to assess and provide
recommendations on how the capture of carbon
from other fossil fuels could be supported
through the objectives described in subsection
(b).
``(B) Membership requirements.--Members of the
advisory committee under subparagraph (A) shall be
appointed by the President.''; and
(2) by striking subsection (d) and inserting the following:
``(d) Authorization of Appropriations.--There are authorized to be
appropriated to carry out section 962 and this section--
``(1) $1,654,000,000 for fiscal years 2015 through 2018;
``(2) $5,283,000,000 for fiscal years 2019 through 2025;
and
``(3) $3,300,000,000 for fiscal years 2026 through 2035.''.
(c) Cost Sharing Reduction.--Section 988(b) of the Energy Policy
Act of 2005 (42 U.S.C. 16352(b)) is amended by striking paragraph (3)
and inserting the following:
``(3) Reduction.--The Secretary shall reduce or eliminate
the requirement of paragraph (1) for a research and development
activity of an applied nature if the Secretary--
``(A) is petitioned for a reduction by a non-
Federal source; and
``(B) determines that the reduction is necessary
and appropriate to achieve the purposes and goals of--
``(i) this Act; and
``(ii) the program or activity for which
the research or development activity is being
undertaken.''.
SEC. 103. INNOVATIVE TECHNOLOGY LOAN GUARANTEE PROGRAM.
(a) In General.--Section 1703 of the Energy Policy Act of 2005 (42
U.S.C. 16513) is amended by adding at the end the following:
``(f) Other Forms of Federal Support Allowed.--An eligible project
that is eligible for or in receipt of other forms of Federal financial
assistance shall not be precluded from receiving a loan guarantee made
pursuant to this section.
``(g) Timeline for Loan Guarantee Approval for Certain Projects.--
Notwithstanding any other provision of law, not later than 2 years
after the date of enactment of the Advanced Clean Coal Technology
Investment in Our Nation Act of 2014, the Secretary shall--
``(1) give final approval to applications for loan
guarantees under subsection (a) for projects described in
subsection (b)(2); and
``(2) make loans for those projects in amounts equal to
$2,000,000,000.''.
(b) Conforming Amendments.--
(1) Title III of division C of the Omnibus Appropriations
Act, 2009 (Public Law 111-8; 123 Stat. 619) is amended in the
matter under the heading ``Title 17 Innovative Technology Loan
Guarantee Program'', by striking the seventh, eighth, and ninth
provisos.
(2) The Supplemental Appropriations Act, 2009 (Public Law
111-32) is amended by striking section 408 (123 Stat. 1878).
SEC. 104. COORDINATION OF CLEAN COAL GENERATING PROJECTS.
(a) Definitions.--In this section, the term ``eligible clean coal
generating projects'' means any project undertaken to install and
operate an advanced carbon capture and storage technology at a new or
existing steam generating unit.
(b) Lead Agency.--The Department of Energy shall be the lead agency
for the purposes of coordinating all requirements under Federal law
with respect to eligible clean coal generating projects, including any
requirements of--
(1) the Clean Air Act (42 U.S.C. 7401 et seq.);
(2) the Federal Water Pollution Control Act (33 U.S.C. 1251
et seq.);
(3) the Endangered Species Act of 1973 (16 U.S.C. 1531 et
seq.);
(4) the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.); and
(5) the Safe Drinking Water Act (42 U.S.C. 300f et seq.).
(c) Schedule.--In carrying out subsection (b), the Secretary of
Energy shall establish a schedule for all Federal authorizations with
respect to each eligible project, including by--
(1) setting binding intermediate milestones and deadlines
to ensure expeditious completion of all proceedings and final
action on all Federal authorizations relating to the eligible
project;
(2) requiring that all permit decisions and related
environmental reviews under applicable Federal law shall be
completed not later than 1 year after the date on which a
complete application for each environmental review is
submitted, or as soon as practicable thereafter; and
(3) coordinating, to the maximum extent practicable, any
State permitting and environmental requirements.
(d) Memoranda of Understanding.--To streamline and expedite review
of Federal authorizations for eligible clean coal generating projects,
the Secretary of Energy shall--
(1) enter into memoranda of understanding with applicable
Federal agencies;
(2) facilitate a pre-application review process with
applicable Federal agencies; and
(3) consolidate all environmental reviews of the eligible
clean coal generating project into a single environmental
review document.
(e) Judicial Review.--With respect to an application for Federal
authorization relating to an eligible clean coal generating project,
the applicable Federal circuit court may review and remedy--
(1) any failure by a Federal agency to complete action on
the application by the date that is 1 year after the date on
which the complete application was submitted to the agency; and
(2) any issuance of an action or order by a Federal agency
with respect to the application that is inconsistent with
applicable Federal law.
TITLE II--FEDERAL INCENTIVES FOR PRIVATE INVESTMENT IN CLEAN COAL
TECHNOLOGIES
SEC. 201. SEVEN-YEAR AMORTIZATION FOR CERTAIN SYSTEMS INSTALLED ON
COAL-FIRED ELECTRIC GENERATION UNITS.
(a) In General.--Subsection (d) of section 169 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
paragraph:
``(6) Special rule for systems installed on coal-fired
electric generation units.--
``(A) In general.--Any mechanical or electronic
system--
``(i) which is installed on a coal-fired
electric generation unit after the date of the
enactment of this paragraph, and
``(ii) which reduces carbon dioxide
emissions per net megawatt hour of electricity
generation by 1 or more of the means described
in subparagraph (B) or any other means,
shall be treated for purposes of this section as a new
identifiable treatment facility which abates or
controls atmospheric pollution or contamination by
removing, altering, disposing, storing, or preventing
the creation or emission of pollutants, contaminants,
wastes, or heat. Paragraph (1)(C) of this subsection,
and subsection (e), shall not apply to any system which
is so treated.
``(B) Means for reducing emissions.--The means
described in this subparagraph are--
``(i) optimizing combustion,
``(ii) optimizing sootblowing and heat
transfer,
``(iii) upgrading steam temperature control
capabilities,
``(iv) reducing exit gas temperatures (air
heater modifications),
``(v) predrying low rank coals using power
plant waste heat,
``(vi) modifying steam turbines or change
the steam path/blading,
``(vii) replacing single speed motors with
variable speed drives for fans and pumps, and
``(viii) improving operational controls,
including neural networks.
``(C) Special rule for minimum tax.--Section
56(a)(5) shall not apply to property to which this
paragraph applies.''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after the date of the enactment of this
Act.
SEC. 202. CREDIT FOR CARBON SEQUESTRATION FROM COAL FACILITIES.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 48D the following new section:
``SEC. 48E. QUALIFYING CARBON DIOXIDE CAPTURE, TRANSPORT, AND STORAGE
EQUIPMENT CREDIT.
``(a) General Rule.--For purposes of section 46, the qualifying
carbon dioxide capture, transport, and storage equipment credit for any
taxable year is an amount equal to 30 percent of the qualified
investment for such taxable year.
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the
qualified investment for any taxable year is the basis of
eligible carbon dioxide capture, transport, and storage
property placed in service by the taxpayer during such taxable
year which is part of a qualifying clean coal project--
``(A)(i) the construction, reconstruction, or
erection of which is completed by the taxpayer, or
``(ii) which is acquired by the taxpayer if the
original use of such property commences with the
taxpayer, and
``(B) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable.
``(2) Special rule for certain subsidized property.--Rules
similar to section 48(a)(4) shall apply for purposes of this
section.
``(3) Certain qualified progress expenditures rules made
applicable.--Rules similar to the rules of subsections (c)(4)
and (d) of section 46 (as in effect on the day before the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of this section.
``(c) Definitions.--For purposes of this section--
``(1) Coal.--The term `coal' means bituminous coal,
subbituminous coal, and lignite.
``(2) Eligible carbon dioxide capture, transport, and
storage property.--The term `eligible carbon dioxide capture,
transport, and storage property' means any property--
``(A) which is used to capture, transport, or store
carbon dioxide emitted at a qualifying clean coal
project, including equipment used to separate and
pressurize carbon dioxide for transport (including
equipment to operate such equipment),
``(B)(i) the construction, reconstruction, or
erection of which is completed by the taxpayer, or
``(ii) which is acquired by the taxpayer if the
original use of such property commences with the
taxpayer, and
``(C) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable.
``(3) Qualified polygeneration plant.--The term `qualified
polygeneration plant' means a plant that produces 2 or more
marketable products, including electricity, chemicals, liquid
or gaseous fuels, and carbon dioxide for beneficial use or
sale.
``(4) Qualifying clean coal project.--
``(A) In general.--The term `qualifying clean coal
project' means any project if such project--
``(i) uses--
``(I) gasification technology (as
defined in section 48B(c)(2)), or
``(II) coal as not less than 75
percent of the project fuel source,
to produce electricity or is a polygeneration
plant, and
``(ii)(I) is a new project which is
designed to meet the requirements of
subparagraph (B), or
``(II) consists of retrofits to existing
equipment such that the project meets the
requirements of subparagraph (B).
``(B) Requirements.--
``(i) In general.--A project shall meet the
emission requirement of clause (ii) and the
carbon capture requirement of clause (iii).
``(ii) Emission requirement.--The
requirement of this clause is met if the
project is designed--
``(I) to emit carbon dioxide at an
average annual rate of less than 1,100
pounds per net megawatt hour of
electrical generation, or
``(II) such that the carbon dioxide
emissions of such project are no
greater than half of the average carbon
dioxide emissions for facilities
producing electricity during 2005 from
the same coal rank as such project, as
determined under regulations prescribed
by the Secretary in consultation with
the Secretary of Energy and the
Administrator of the Environmental
Protection Agency.
``(iii) Carbon capture requirement.--The
requirement of this clause is met--
``(I) if such unit is among the
first 1,000 megawatts of electric
generation units certified by the
Secretary under subsection (e), to
capture and sequester not less than
500,000 metric tons per year of carbon
dioxide,
``(II) if such unit is among the
next 3,000 megawatts of electric
generation units certified by the
Secretary under subsection (e), to
capture and sequester not less than
1,000,000 metric tons per year of
carbon dioxide, and
``(III) for any other unit, to
capture and sequester not less than
2,000,000 metric tons per year of
carbon dioxide.
``(d) Aggregate Credits.--
``(1) In general.--No credit shall be allowed under this
section with respect to any qualifying clean coal project
unless such project is certified by the Secretary under
subsection (e).
``(2) Limitation on projects certified.--The Secretary may
certify under subsection (e) no more than--
``(A) 20 projects described in subsection
(c)(4)(A)(ii)(I), and
``(B) 20 projects described in subsection
(c)(4)(A)(ii)(II).
``(e) Certification.--
``(1) Certification process.--The Secretary, in
consultation with the Secretary of Energy and the Administrator
of the Environmental Protection Agency, shall establish a
certification process to determine if a project meets all
criteria and other requirements to be recognized as a
qualifying clean coal project.
``(2) Feedstock requirements.--After the date of
publication by the Secretary of the final certification process
referred to in paragraph (1), the Secretary shall allocate the
limitation in subsection (d)(2) in equal amounts among--
``(A) projects using bituminous coal as a primary
feedstock,
``(B) projects using subbituminous coal as a
primary feedstock, and
``(C) projects using lignite as a primary
feedstock.
``(3) Redistribution.--The Secretary may reallocate credits
if the Secretary determines that there is an insufficient
quantity of qualifying applications for certification, pending
at the time of review, to comply with the feedstock
requirements of paragraph (2). The Secretary may conduct an
additional program for applications for certification and
reallocate available credits without regard to the feedstock
requirement which was not satisfied as a result of insufficient
applications for certification.
``(4) Requirements for applications for certification.--An
application for certification shall contain such information as
the Secretary may require in order to make a determination to
accept or reject the application and establish applicable
credit entitlement. Any information contained in the
application shall be protected as provided in section 552(b)(4)
of title 5, United States Code.
``(f) Denial of Double Benefit.--No credit shall be allowed under
this section for any property for which credit is allowed under
sections 48A, 48B, or 48C.''.
(b) Conforming Amendments.--
(1) Section 46 of such Code (relating to amount of credit)
is amended by striking ``and'' at the end of paragraph (5), by
striking the period at the end of paragraph (6) and inserting
``, and'', and by adding at the end the following new
paragraph:
``(7) the qualifying carbon dioxide capture, transport, and
storage equipment credit.''.
(2) Subparagraph (C) of section 49(a)(1) of such Code is
amended by striking ``and'' at the end of clause (v), by
striking the period at the end of clause (vi) and inserting ``,
and'', and by adding after clause (vi) the following new
clause:
``(vii) the basis of any qualifying carbon
dioxide capture, transport, and storage
equipment under section 48E.''.
(3) The table of sections for subpart E of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 48D the following new item:
``Sec. 48E. Qualifying carbon dioxide capture, transport, and storage
equipment credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to periods after the date of the enactment of this Act under
rules similar to the rules of section 48(m) of the Internal Revenue
Code of 1986 (as in effect on the day before the date of the enactment
of the Revenue Reconciliation Act of 1990).
SEC. 203. VARIABLE PRICE SUPPORT FOR CARBON DIOXIDE SEQUESTRATION.
(a) Definitions.--In this section:
(1) Carbon dioxide price difference.--The term ``carbon
dioxide price difference'' means the amount calculated in
accordance with subsection (f)(1).
(2) Design capacity.--The term ``design capacity'' means a
project that has the capacity to capture--
(A) not fewer than 3,000,000 tons of carbon dioxide
annually; or
(B) fewer than 3,000,000 tons of carbon dioxide
annually if agreed to by the Secretary and project
owner.
(3) Eligible project.--The term ``eligible project'' means
a project that--
(A) captures and sells carbon dioxide that is used
for enhanced recovery and generates electricity or
gaseous or liquid fuels, or is a qualified
polygeneration plant (as defined in section 48E(c) of
the Internal Revenue Code of 1986);
(B) is located in the United States;
(C) uses coal as not less than 75 percent of the
project fuel source;
(D) captures not less than 50 percent of carbon
dioxide produced by coal conversion;
(E) has reached design capacity; and
(F) has a contract with an enhanced recovery
company that is for a period that is equal to or
greater than the subsidy period.
(4) Enhanced recovery.--The term ``enhanced recovery''
means enhanced oil recovery and enhanced gas recovery.
(5) Lowest bid.--The term ``lowest bid'' means a bid made
by an applicant to the program that has the least cost to the
Federal Government, as compared to competing bids.
(6) Market price of oil.--The term ``market price of oil''
means the price of oil as reported in a public oil market index
such as the New York Mercantile Exchange.
(7) Program.--The term ``program'' means the Enhanced
Recovery Program established under subsection (b).
(8) Qualifying carbon dioxide.--The term ``qualifying
carbon dioxide'' means carbon dioxide that is captured from an
eligible project and is eligible for variable price support.
(9) Rate.--The term ``rate'' means the ratio bid by the
project owner of the price of carbon dioxide to the market
price of oil, and that is used to calculate the synthetic price
of carbon dioxide.
(10) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(11) Strike price of carbon dioxide.--The term ``strike
price of carbon dioxide'' means the price of carbon dioxide bid
by the project owner--
(A) below which a project will receive a subsidy;
and
(B) above which the project owner will make
payments to the Federal Government.
(12) Subsidy period.--The term ``subsidy period'' means the
period of time, not to exceed 10 years, bid by the project
owner during which the eligible project will be eligible to
receive a subsidy under this section.
(13) Synthetic price of carbon dioxide.--The term
``synthetic price of carbon dioxide'' means the price of carbon
dioxide calculated by multiplying the market price of oil by
the rate.
(14) Variable price support.--The term ``variable price
support'' means financial support provided by the Federal
Government in an amount equal to the carbon dioxide price
difference for each ton of qualifying carbon dioxide provided
directly to the owner of an eligible project selected to
receive assistance under this section.
(b) Establishment; Purpose.--
(1) In general.--There is established in the Department of
Energy a variable price support program, to be known as the
``Enhanced Recovery Program'', to accelerate the construction
and operation of eligible advanced coal-fueled projects that
capture carbon dioxide emissions and sell or use the carbon
dioxide for enhanced recovery.
(2) Purpose.--The purpose of the program shall be--
(A) to reduce the cost of carbon capture by
providing variable price support to carbon capture and
sequestration project owners to enable the owner to
finance eligible projects;
(B) to advance the development and widespread use
of carbon capture technology; and
(C) to increase the domestic production of oil and
natural gas in the United States.
(c) Variable Price Support.--
(1) In general.--In carrying out the program, the
Secretary, in consultation with the Secretary of the Treasury,
is authorized to provide variable price support for eligible
projects--
(A) for which an application is submitted to the
Secretary under subsection (d);
(B) that are selected under the competitive bidding
process under subsection (e); and
(C) for which a variable price support agreement to
implement the payment terms described in subsections
(f) and (g) is executed.
(2) Period.--The Secretary shall provide variable price
support to an eligible project under this section for a period
of not more than 10 years beginning on the date on which the
eligible project reaches design capacity.
(3) Profit sharing agreements.--
(A) In general.--To be eligible to receive variable
price support under paragraph (1), a project owner
shall enter into a profit-sharing agreement with the
Secretary at the time that the variable price support
agreement is executed.
(B) Payments.--Once every calendar quarter, for
each project owner subject to a profit-sharing
agreement executed under subparagraph (A), the
Secretary shall calculate whether the synthetic price
of carbon dioxide is greater than the strike price of
carbon dioxide, and, if so, request from the project
owner a profit-sharing payment for that quarter, in an
amount equal to--
(i) the difference between the synthetic
price of carbon dioxide and the strike price of
carbon dioxide; less
(ii) any repayments made under subsection
(g) during that calendar quarter.
(d) Applications.--An owner of an eligible project desiring
variable price support under this section shall submit to the Secretary
an application at such time, in such manner, and containing such
information as the Secretary may require.
(e) Selection; Competitive Bidding Process.--
(1) In general.--Once every year, the Secretary shall
solicit bids from applicants for an allocation of the funding
made available under subsection (h) to provide variable price
support to eligible projects.
(2) Bid submission.--Applicants participating in the
competitive bidding process shall submit a bid for an eligible
project that includes--
(A) the strike price of carbon dioxide for a ton of
qualifying carbon dioxide;
(B) a rate;
(C) a plan for the project for a period of not more
than 10 years; and
(D) the projected tonnage of qualifying carbon
dioxide that the eligible project will capture and sell
for enhanced recovery over the project period.
(3) Selection.--For each fiscal year, the Secretary shall--
(A) determine the cost to the Federal Government of
each bid submitted under paragraph (2); and
(B)(i) select 1 or more of the lowest bids until
all of the available funding authorized by subsection
(h) is obligated; or
(ii) if the Secretary determines that no bids
submitted under paragraph (2) are acceptable to the
Secretary, reject the bids.
(f) Administration.--
(1) In general.--In carrying out a variable price support
agreement entered into under subsection (c), the Secretary
shall calculate the carbon dioxide price difference as a dollar
amount equal to--
(A) the strike price of carbon dioxide; less
(B) the synthetic price of carbon dioxide in a
qualifying ton.
(2) Payments.--Payments between the Secretary and the
project owner shall be made as follows:
(A) If the amount calculated in paragraph (1) is a
positive number, the Secretary shall pay to the project
owner an amount equal to the product obtained by
multiplying--
(i) the carbon dioxide price difference
calculated under paragraph (1); and
(ii) the quantity in tons of qualifying
carbon dioxide sold for enhanced recovery.
(B) If the amount calculated in paragraph (1) is a
negative number, the project owner shall pay to the
Secretary an amount equal to the product obtained by
multiplying--
(i) the absolute value of the carbon
dioxide price difference calculated under
paragraph (1); and
(ii) the quantity in tons of qualifying
carbon dioxide sold for enhanced recovery.
(C) Payments between the Secretary and the project
owner made under subparagraphs (A) and (B) shall be
reconciled on an annual basis based on--
(i) daily carbon dioxide sales records
reported by the project owner; and
(ii) the daily price of West Texas
intermediate crude oil listed in the New York
Mercantile Exchange.
(g) Payments to the Federal Government.--
(1) In general.--The Secretary shall establish terms and
conditions for a variable price support agreement entered into
under subsection (c)(1)(C).
(2) Repayments.--The repayment terms of any variable price
support agreement shall commence if, during the subsidy period
of the agreement, and subject to the limitations described in
paragraph (3), the amount calculated under subsection (f)(1) is
a positive number.
(3) Limitations.--
(A) In general.--The repayment terms described in
paragraph (2) shall be subject to the following
limitations:
(i) If, during any calendar quarter during
the subsidy period of the variable price
support agreement, the synthetic price of
carbon dioxide is less than the strike price of
carbon dioxide, the project owner may elect to
defer all or part of the repayment obligations
of the project owner due in that quarter and
any unpaid obligations will continue to accrue
interest.
(ii) If, during any calendar quarter during
the subsidy period of the variable price
support agreement, the synthetic price of
carbon dioxide is greater than the strike price
of carbon dioxide, the project owner--
(I) shall meet the scheduled
repayment obligations plus any deferred
repayment obligations; but
(II) shall not be required to pay
in that quarter an amount that is
greater than the amount equal to the
product obtained by multiplying--
(aa) the excess of the
synthetic price of carbon
dioxide over the strike price
of carbon dioxide; and
(bb) the output of the
project.
(B) Repayments beyond subsidy term.--At the end of
the subsidy period of the agreement, the cumulative
amount of any deferred repayment obligations, together
with accrued interest, shall be amortized (with
interest) over the remainder of the full term of the
agreement.
(h) Funding.--
(1) In general.--Prior to selecting bids under subsection
(e)(3) for a fiscal year, the Secretary shall make available to
carry out the program the following amounts, to be allocated
from unobligated funds of the Department of Energy.
Years: Available Credit:
Year 1....................................... $1,350,000
Year 2....................................... $1,350,000
Year 3....................................... $1,350,000
Year 4....................................... $2,700,000
Year 5....................................... $2,700,000
Year 6....................................... $2,700,000
Year 7....................................... $4,050,000
Year 8....................................... $5,400,000
Year 9 and thereafter........................ $6,750,000.
(2) Extension.--If the amounts made available under
paragraph (1) for a fiscal year are not used during the
applicable fiscal year--
(A) the program shall be extended for an additional
fiscal year; and
(B) the amounts authorized under paragraph (1) that
were not used during the applicable fiscal year shall
be carried over to carry out the program during the
additional fiscal year.
SEC. 204. CLEAN ENERGY COAL BONDS.
(a) In General.--
(1) Treatment as tax credit bonds.--Subpart I of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
is amended by adding at the end the following new section:
``SEC. 54G. CLEAN ENERGY COAL BONDS.
``(a) Clean Energy Coal Bond.--For purposes of this subchapter--
``(1) In general.--The term `clean energy coal bond' means
any bond issued as part of an issue if--
``(A) the bond is issued by a qualified issuer
pursuant to an allocation by the Secretary to such
issuer of a portion of the national clean energy coal
bond limitation under subsection (b)(2),
``(B) so much of the available project proceeds
from the sale of such issue as is equal to 95 percent
of the excess of--
``(i) the total available project proceeds
from the sale of such issue, over
``(ii) the amounts in a reasonably required
reserve (within the meaning of section
150(a)(3)) with respect to such issue,
are to be used for capital expenditures incurred by
qualified borrowers for 1 or more qualified projects,
``(C) the qualified issuer makes an irrevocable
election to have this section apply,
``(D) the qualified issuer designates such bond for
purposes of this section and the bond is in registered
form, and
``(E) in lieu of the requirements of section
54A(d)(2), the issue meets the requirements of
subsection (c).
``(2) Qualified project; special use rules.--
``(A) In general.--The term `qualified project'
means a qualified clean coal project (as defined in
subsection (h)(1)) placed in service by a qualified
borrower.
``(B) Refinancing rules.--For purposes of paragraph
(1)(B), a qualified project may be refinanced with
proceeds of a clean energy coal bond only if the
indebtedness being refinanced (including any obligation
directly or indirectly refinanced by such indebtedness)
was originally incurred by a qualified borrower after
the date of the enactment of this section.
``(C) Reimbursement.--For purposes of paragraph
(1)(B), a clean energy coal bond may be issued to
reimburse a qualified borrower for amounts paid after
the date of the enactment of this section with respect
to a qualified project, but only if--
``(i) prior to the payment of the original
expenditure, the qualified borrower declared
its intent to reimburse such expenditure with
the proceeds of a clean energy coal bond,
``(ii) not later than 60 days after payment
of the original expenditure, the qualified
issuer adopts an official intent to reimburse
the original expenditure with such proceeds,
and
``(iii) reimbursement is not made later
than 18 months after the date the original
expenditure is paid or the date the project is
placed in service or abandoned, but in no event
more than 3 years after the original
expenditure is paid.
``(D) Treatment of changes in use.--For purposes of
paragraph (1)(B), the proceeds of an issue shall not be
treated as used for a qualified project to the extent
that a qualified borrower takes any action within its
control which causes such proceeds not to be used for a
qualified project. The Secretary shall prescribe
regulations specifying remedial actions that may be
taken (including conditions to taking such remedial
actions) to prevent an action described in the
preceding sentence from causing a bond to fail to be a
clean energy coal bond.
``(b) Limitation on Amount of Bonds Designated.--
``(1) National limitation.--There is a national clean
energy coal bond limitation of $5,000,000,000.
``(2) Allocation by secretary.--The Secretary shall
allocate the amount described in paragraph (1) among qualified
projects in such manner as the Secretary determines
appropriate.
``(c) Special Rules Relating to Expenditures.--
``(1) In general.--An issue shall be treated as meeting the
requirements of this subsection if, as of the date of issuance,
the qualified issuer reasonably expects--
``(A) 100 percent or more of the available project
proceeds from the sale of the issue are to be spent for
1 or more qualified projects within the 5-year period
beginning on the date of issuance of the clean energy
bond,
``(B) a binding commitment with a third party to
spend at least 10 percent of such available project
proceeds from the sale of the issue will be incurred
within the 6-month period beginning on the date of
issuance of the clean energy bond or, in the case of a
clean energy bond the available project proceeds of
which are to be loaned to 2 or more qualified
borrowers, such binding commitment will be incurred
within the 6-month period beginning on the date of the
loan of such proceeds to a qualified borrower, and
``(C) such projects will be completed with due
diligence and the available project proceeds from the
sale of the issue will be spent with due diligence.
``(2) Extension of period.--Upon submission of a request
prior to the expiration of the period described in paragraph
(1)(A), the Secretary may extend such period if the qualified
issuer establishes that the failure to satisfy the 5-year
requirement is due to reasonable cause and the related projects
will continue to proceed with due diligence.
``(3) Failure to spend required amount of bond proceeds
within 5 years.--To the extent that less than 100 percent of
the available project proceeds of such issue are expended by
the close of the 5-year period beginning on the date of
issuance (or if an extension has been obtained under paragraph
(2), by the close of the extended period), the qualified issuer
shall redeem all of the nonqualified bonds within 90 days after
the end of such period. For purposes of this paragraph, the
amount of the nonqualified bonds required to be redeemed shall
be determined in the same manner as under section 142.
``(d) Reduced Credit Amount.--The annual credit determined under
section 54A(b) with respect to any clean coal energy bond shall be 70
percent of the amount so determined without regard to this subsection.
``(e) Cooperative Electric Company; Qualified Energy Tax Credit
Bond Lender; Governmental Body; Qualified Borrower.--For purposes of
this section--
``(1) Cooperative electric company.--The term `cooperative
electric company' means a mutual or cooperative electric
company described in section 501(c)(12) or section
1381(a)(2)(C), or a not-for-profit electric utility which has
received a loan or loan guarantee under the Rural
Electrification Act.
``(2) Clean energy bond lender.--The term `clean energy
bond lender' means a lender which is a cooperative which is
owned by, or has outstanding loans to, 100 or more cooperative
electric companies and is in existence on February 1, 2002, and
shall include any affiliated entity which is controlled by such
lender.
``(3) Public power entity.--The term `public power entity'
means a State utility with a service obligation, as such terms
are defined in section 217 of the Federal Power Act (as in
effect on the date of enactment of this paragraph).
``(4) Qualified issuer.--The term `qualified issuer'
means--
``(A) a clean energy bond lender,
``(B) a cooperative electric company, or
``(C) a public power entity.
``(5) Qualified borrower.--The term `qualified borrower'
means--
``(A) a mutual or cooperative electric company
described in section 501(c)(12) or 1381(a)(2)(C), or
``(B) a public power entity.
``(f) Special Rules Relating to Pool Bonds.--No portion of a pooled
financing bond may be allocable to any loan unless the borrower has
entered into a written loan commitment for such portion prior to the
issue date of such issue.
``(g) Gross-Up of Payment to Issuers in Case of Sequestration.--In
the case of any payment due under section 6431(b) by reason of section
6431(f)(3)(A)(v) which is subject to reduction in accordance with a
sequestration report prepared by the Director of the Office of
Management and Budget pursuant to the Balanced Budget and Emergency
Deficit Control Act of 1985 or the Statutory Pay-As-You-Go Act of
2010--
``(1) the amount of such payment shall be increased to an
amount equal to the product of--
``(A) the amount of such payment as determined
before the reduction in accordance with the
sequestration report, and
``(B) a fraction the numerator of which is 1 and
the denominator of which is the excess of--
``(i) 100, over
``(ii) the percentage by which such payment
is reduced (without regard to this subsection)
in accordance with the sequestration report,
and
``(2) such increase shall be treated as not subject to the
sequestration report.
``(h) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Qualified clean coal project.--The term `qualified
clean coal project' means--
``(A) an atmospheric pollution control facility
(within the meaning of section 169(d)(1)),
``(B) a qualifying clean coal project (within the
meaning of section 48E(c)(1)),
``(C) a qualified facility (within the meaning of
section 45Q(c)), or
``(D) an integrated gasification combined cycle
unit, supercritical coal-fired power plant, or
ultrasupercritical coal-fired power plant, with an
energy efficiency percentage (as defined in section
48(c)(3)(C)(i)) that is not less than 5 percentage
points greater than the average energy efficiency
percentage for coal electrical production facilities in
the United States and corrected for the impact of
carbon capture (as determined by the Secretary of
Energy).
``(2) Definitions.--
``(A) Integrated gasification combined cycle
unit.--The term `integrated gasification combined cycle
unit' means an electric generation unit that produces
electricity by converting coal to synthesis gas that is
used to fuel a combined-cycle plant that produces
electricity from both a combustion turbine (including a
combustion turbine/fuel cell hybrid) and a steam
turbine.
``(B) Pooled financing bond.--The term `pooled
financing bond' shall have the meaning given such term
by section 149(f)(6)(A).
``(C) Supercritical coal-fired power plant.--The
term `supercritical coal-fired power plant' means a
coal-fired power plant operating at pressures such that
water boils first and then is converted to superheated
steam.
``(D) Ultrasupercritical coal-fired power plant.--
The term `ultrasupercritical coal-fired power plant'
means a power plant described in subparagraph (C)
operating above supercritical pressure and at steam
temperatures above 1,100 degrees Fahrenheit.''.
(2) Bonds not subject to maturity limitation.--Paragraph
(5) of section 54A(d) of such Code is amended by adding at the
end the following new subparagraph:
``(C) Special rule for clean energy coal bonds.--
The requirements of this paragraph shall not apply to a
clean energy coal bond under section 54G.''.
(3) Conforming amendments.--
(A) Paragraph (1) of section 54A(d) of the Internal
Revenue Code of 1986 is amended by striking ``or'' at
the end of subparagraph (D), by inserting ``or'' at the
end of subparagraph (E), and by inserting after
subparagraph (E) the following new subparagraph:
``(F) a clean energy coal bond,''.
(B) The table of sections for subpart I of part IV
of subchapter A of chapter 1 of the Internal Revenue
Code of 1986 is amended by adding at the end the
following new item:
``Sec. 54G. Clean energy coal bonds.''.
(b) Bonds Treated as Specified Tax Credit Bonds.--
(1) In general.--Section 6431(f)(3)(A) of the Internal
Revenue Code of 1986 is amended by striking ``or'' at the end
of clause (iii), by striking ``and'' at the end of clause (iv)
and inserting ``or'', and by adding at the end the following
new clause:
``(v) a clean energy coal bond (as defined
in section 54G), and''.
(2) Special rule.--Paragraph (2) of section 6431(f) of such
Code is amended--
(A) by striking ``clause (i) or (ii)'' and
inserting ``clause (i), (ii), or (v)''; and
(B) by striking the heading and inserting ``Special
rule for certain bonds''.
(c) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
TITLE III--REPORTS REQUIRED
SEC. 301. DEFINITIONS.
In this title:
(1) CCS.--the term ``CCS'' means carbon capture and
storage, including geological storage and enhanced oil
recovery, as well as other forms of carbon utilization.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
SEC. 302. REPORTS TO CONGRESS.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, and annually thereafter, the Secretary shall submit to
Congress and make available to the public (including on the website of
the Department of Energy) a report that--
(1) provides a comprehensive review of the annual progress
made by the National Laboratories and the offices of the
Department of Energy that are currently active in researching
and developing clean coal technologies and CCS, including--
(A) the status of carbon capture, transport,
storage, and utilization, including--
(i) an overview and evaluation of key
technologies;
(ii) a description of existing CCS
infrastructure and demonstration projects in
the United States, including the status of
permitting, financing, and construction and the
expected date of commencement of operations;
(iii) the associated costs of key
technologies, including the amount and type of
Federal funding; and
(iv) an estimated timeline to commercial
scalability;
(B) a description of the current barriers for CCS
deployment and commercialization, including--
(i) market failures;
(ii) regulatory framework;
(iii) long-term liability for carbon
storage;
(iv) public outreach; and
(v) annual progress on overcoming the
identified barriers;
(C) possible solutions to address the barriers
described in subparagraph (B), including--
(i) funding options for CCS projects;
(ii) options to improve the current legal
and regulatory framework; and
(iii) suggestions for Federal Government
action on effective public outreach; and
(D) a separate review that focuses on international
research and projects sponsored by the Department of
Energy, including--
(i) a clear description of how the Federal
Government has participated in each project,
including the amount and type of Federal
funding;
(ii) the technical and economic status of
each project, including the expected date of
commencement of operations; and
(iii) recommendations on--
(I) how to most efficiently engage
in each project in the future; and
(II) whether a change of funding
support could assist in those efforts;
and
(2) addresses all of the international consortia that the
Federal Government is currently engaged in by--
(A) detailing the type of Federal Government
activity in each consortium;
(B) including a description of any ``lessons
learned'' by participants from the Federal Government
as a direct result of consortium activity;
(C) describing the benefits derived from Federal
Government involvement; and
(D) making recommendations for the involvement of
the Federal Government in each consortium including--
(i) whether the Federal Government should
continue to participate; and
(ii) how the Federal Government could
increase the productivity of the consortium, if
possible.
(b) Additional Report.--Not later than 18 months after the date of
enactment of this Act, and not less frequently than once every year for
the next 5 years thereafter, the Secretary shall submit to Congress and
make available to the public (including on the website of the
Department of Energy) a report that--
(1) provides an assessment of the upcoming CCS projects in
Canada, including--
(A) the SaskPower Boundary Dam Integrated CCS
Demonstration Project;
(B) the Shell Quest Project; and
(C) the Alberta Carbon Trunk Line; and
(2) determines--
(A) whether operation of the CCS system is meeting
the project goals;
(B) the economic status of the project, including--
(i) an overview of the ratio of private and
public funds for capital costs;
(ii) whether the project is generating
revenue; and
(iii) the current return on investment;
(C) whether the project is the type of project that
the Federal Government should replicate in the United
States to move CCS forward on a pilot level;
(D) whether the project could comply with
subparagraph (E) or (F) if the project should be
replicated under subparagraph (C);
(E) whether the Federal Government and private
industry in the United States can work together to
develop a similar pilot project in the United States;
and
(F) if the Federal Government and private industry
cannot work together under subparagraph (E), whether
the Federal Government should work jointly with Canada
on a similar project.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S1732)
Read twice and referred to the Committee on Finance.
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