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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7054 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 7054
To require the Secretary of Energy to remove carbon dioxide directly
from ambient air or seawater, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 18, 2024
Mr. Tonko (for himself and Mr. Peters) introduced the following bill;
which was referred to the Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To require the Secretary of Energy to remove carbon dioxide directly
from ambient air or seawater, 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 Dioxide Removal Leadership
Act of 2024''.
SEC. 2. FEDERAL REQUIREMENT TO REMOVE CARBON DIOXIDE.
(a) Required Amounts.--The Secretary shall, to the extent
economically feasible as provided in subsection (d), remove--
(1) 50,000 net metric tons of carbon dioxide, calculated on
a lifecycle basis, for each of fiscal years 2024 through 2025;
(2) 500,000 net metric tons of carbon dioxide, calculated
on a lifecycle basis, for each of fiscal years 2026 through
2028;
(3) 5,000,000 net metric tons of carbon dioxide, calculated
on a lifecycle basis, for each of fiscal years 2029 through
2034; and
(4) 10,000,000 net metric tons of carbon dioxide,
calculated on a lifecycle basis, for fiscal year 2035 and each
fiscal year thereafter.
(b) Timing.--The Secretary shall remove each amount of carbon
dioxide required under subsection (a) by not later than 3 years after
the beginning of the fiscal year for which such removal is required.
(c) Small Removal Project Set-Aside.--To the extent practicable, at
least 20 percent of the net metric tons of carbon dioxide required to
be removed for each of fiscal years 2024 through 2034 under subsection
(a) shall be removed by small removal projects.
(d) Economic Feasibility.--
(1) In general.--The removal of carbon dioxide under this
section shall be considered economically feasible if such
removal can be accomplished or, in the case of a contract,
purchased--
(A) with respect to such removal carried out for
any of fiscal years 2024 through 2025, at a price per
metric ton of carbon dioxide of not more than $750
(which the Secretary may adjust for inflation);
(B) with respect to such removal carried out for
any of fiscal years 2026 through 2028, at a price per
metric ton of carbon dioxide of not more than $500
(which the Secretary may adjust for inflation);
(C) with respect to such removal carried out for
any of fiscal years 2029 through 2031, at a price per
metric ton of carbon dioxide of not more than $300
(which the Secretary may adjust for inflation);
(D) with respect to such removal carried out for
any of fiscal years 2032 through 2034, at a price per
metric ton of carbon dioxide of not more than $200
(which the Secretary may adjust for inflation); and
(E) with respect to such removal carried out for
fiscal year 2035 and each fiscal year thereafter, at a
price per metric ton of carbon dioxide of not more than
$150 (which the Secretary may adjust for inflation).
(2) Inclusion of monitoring, reporting, and verification
costs.--In determining whether the removal of carbon dioxide is
considered economically feasible under paragraph (1), the price
for such removal shall include any costs associated with the
monitoring, reporting, and verification required under
subsection (f)(1).
(3) Multi-year contracts.--Notwithstanding paragraph (1),
the removal of carbon dioxide carried out pursuant to a multi-
year contract entered into under subsection (h) shall be
considered economically feasible if such removal can be
accomplished at the applicable dollar amount for the first
fiscal year of the contract, as provided in paragraph (1),
through the entire length of such contract.
(e) Federal Assistance.--Funds received pursuant to a contract
entered into under subsection (h) shall not be considered Federal
assistance or otherwise affect eligibility for any Federal assistance,
including tax incentives.
(f) Monitoring, Reporting, and Verification.--
(1) In general.--The Secretary, or an entity the Secretary
enters into a contract with under subsection (h), shall
monitor, report, and verify the net metric tons of carbon
dioxide the Secretary or such entity, as applicable, removed
for purposes of this section.
(2) Standards.--Not later than 1 year after the date of
enactment of this section, the Secretary, in consultation with
the Administrator of the National Oceanic and Atmospheric
Administration, the Administrator of the Environmental
Protection Agency, the Secretary of the Department of
Agriculture, and other relevant Federal agencies as determined
appropriate by the Secretary, shall establish standards for the
monitoring, reporting, and verification of net metric tons of
carbon dioxide removed pursuant to this section. Such standards
shall--
(A) require the use of the best available practices
used by similar carbon dioxide removal projects;
(B) ensure safe, effective, and efficient removal
of carbon dioxide;
(C) require independent, third-party verification
of carbon dioxide removal;
(D) ensure additionality, permanence, and net-
negativity of carbon dioxide removal;
(E) include criteria to determine whether the
storage of captured carbon dioxide is permanent;
(F) ensure scientifically rigorous and transparent
methods for monitoring, reporting, and verifying under
paragraph (1); and
(G) be regularly reviewed and, as necessary,
updated to account for scientific and technological
advancements.
(3) Prohibition on double counting.--Carbon dioxide that is
removed for the purposes of compliance with any other
greenhouse gas emissions management program, including any
foreign, Federal, State, local, or private greenhouse gas
emissions management program, as determined by the Secretary,
may not be considered removed under subsection (a) for purposes
of meeting the requirements of such subsection.
(g) Priorities.--In carrying out this section, the Secretary shall
give priority to a project for the removal of carbon dioxide based on
the degree to which the project--
(1) minimizes the amount of greenhouse gas emissions
released by carrying out such project;
(2) supports the commercialization of innovative removal
technologies;
(3) increases the diversity of commercially available
eligible technologies;
(4) may provide for domestic job creation, with a further
preference for partnerships with labor organizations, small
businesses, minority-owned businesses, and women-owned
businesses across value chains;
(5) results in economic development or economic
diversification in regions or localities that have historically
generated significant economic activity from the production,
processing, transportation, or combustion of fossil fuels,
including through the use of coal mines, fossil fuel-fired
electricity generating units, and petroleum refining
facilities;
(6) quantifies and mitigates risks from carbon dioxide
removal activities on, and provides measurable co-benefits to,
environmental justice communities, the environment,
agriculture, and public health, including by--
(A) improving local air quality, water quality, and
soil quality;
(B) minimizing land, water, and energy footprints;
and
(C) using zero-emission energy; and
(7) includes robust public engagement and community
benefits.
(h) Contracts.--
(1) In general.--After a transparent and competitive
process, the Secretary may enter into a contract to meet the
requirements of subsection (a).
(2) Length.--A contract entered into under this subsection
may not be for a term of more than 15 years.
(3) Maintenance of removal commitments.--The Secretary
shall include as a term or condition in each contract entered
into under this subsection that the entity that enters into the
contract shall permanently store an additional amount of carbon
dioxide that is equal to any amount of carbon dioxide that is
released after permanent storage by such entity.
(4) Limitation.--To the extent that there is a sufficient
number of entities capable of removing carbon dioxide in a
manner that meets the standards and requirements of this
section under a contract entered into pursuant to this
subsection, the Secretary shall ensure that no one entity is
responsible for removing more than 25 percent of the net metric
tons of carbon dioxide required under subsection (a) in any
fiscal year.
(i) Report.--Not later than January 1, 2027, and every 2 years
thereafter, the Secretary shall submit to Congress, and release to the
public, a report on the progress of carrying out the requirements of
this section, which such report shall include--
(1) the amounts verified under subsection (f)(1) and the
corresponding names of each entity that provided such verified
amount;
(2) the total price, and price per metric ton, to remove
carbon dioxide for the applicable fiscal year as required under
subsection (a);
(3) the methods associated with the monitoring, reporting,
and verification required under subsection (f)(1);
(4) an estimate of how removing carbon dioxide under this
section affects environmental justice communities, the
environment, agriculture, and public health;
(5) information on potential labor impacts and job creation
resulting from fulfilling the requirements of subsection (a);
and
(6) an explanation of how the Secretary prioritized
projects under subsection (g).
(j) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
(k) Definitions.--In this section:
(1) Eligible technology.--
(A) In general.--The term ``eligible technology''
means, as determined by the Secretary, any equipment,
technique, or technology that--
(i) was placed into service after January
1, 2022; and
(ii) removes carbon dioxide directly from
ambient air or seawater.
(B) Exclusion.--The term ``eligible technology''
does not include any equipment, technique, or
technology that--
(i) removes carbon dioxide which is
deliberately released from naturally occurring
subsurface springs;
(ii) removes carbon dioxide using natural
photosynthesis, except as provided in
subparagraph (C); or
(iii) uses captured carbon dioxide in
enhanced oil recovery.
(C) Expansion of eligible technology.--
Notwithstanding subparagraph (B)(ii), any equipment,
technique, or technology that removes carbon dioxide
using gasification, pyrolysis, or sequestration of
solid, nonhazardous, and cellulosic waste materials may
be considered an eligible technology under this section
if the Secretary, by rule--
(i) determines an entity that carries out a
removal project under this section is able to
adequately monitor, report, and verify the
amount of greenhouse gas emissions, calculated
on a lifecycle basis (including direct
emissions and significant indirect emissions),
removed using such equipment, technique, or
technology;
(ii) determines an entity that carries out
a removal project under this section is able to
adequately mitigate the environmental impacts
(including impacts on biodiversity, land use,
and air and water quality) associated with such
equipment, technique, or technology; and
(iii) requires an entity carrying out a
removal project under this section to--
(I) adequately monitor, report, and
verify the amount and storage
permanence of greenhouse gas emissions,
calculated on a lifecycle basis
(including direct emissions and
significant indirect emissions),
associated with using such equipment,
technique, or technology; and
(II) adequately mitigate the
environmental impacts (including
impacts on biodiversity, land use, and
air, soil, and water quality)
associated with using such equipment,
technique, or technology.
(2) Lifecycle basis.--The term ``lifecycle basis'' means
the net sum of all greenhouse gas emissions (using mass values
for all greenhouse gases that are adjusted to account for their
relative global warming potential, in consultation with the
Administrator of the Environmental Protection Agency) and
removals associated with carbon dioxide removal activity from
cradle to grave, including any emissions associated with--
(A) energy and feedstock inputs;
(B) the carbon dioxide removal process;
(C) carbon dioxide storage, including use and
disposal of any materials or products associated with
carbon dioxide storage; and
(D) embodied emissions of the equipment.
(3) Remove.--The term ``remove'' means to--
(A) capture carbon dioxide using eligible
technology; and
(B) permanently store such captured carbon
dioxide--
(i) in dedicated subsurface geologic
storage reported under sections 98.440 and
146.91(e) of title 40, Code of Federal
Regulations (or successor regulations);
(ii) in building materials and mineralized
carbon materials; or
(iii) using other permanent storage
methods, as determined by the Secretary.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(5) Small removal project.--The term ``small removal
project'' means a project for the removal of carbon dioxide
that does not remove more than 5 percent of the net metric tons
of carbon dioxide required to be removed for the applicable
fiscal year under subsection (a).
SEC. 3. STUDY ON THE LONG-TERM FUTURE OF FEDERAL CARBON DIOXIDE REMOVAL
MANAGEMENT.
Not later than 1 year after the date of enactment of this Act, the
Secretary of Energy, in consultation with the Administrator of the
National Oceanic and Atmospheric Administration, the Administrator of
the Environmental Protection Agency, the Secretary of the Department of
Agriculture, and other relevant Federal agencies, shall submit to the
Committee on Energy and Commerce of the House of Representatives and
the Committee on Energy and Natural Resources of the Senate a report
that evaluates and makes recommendations for potential program design
elements and financing options for a Federal carbon dioxide removal
offtake program that can be scaled to achieve carbon dioxide removal
from the atmosphere and the oceans at a gigaton scale annually by 2050.
Such report shall include consideration of potential management and
organizational structures for the program, including--
(1) a government sponsored enterprise;
(2) a government corporation;
(3) a program office with the Department of Energy or other
Federal agency; and
(4) a contracted service provider.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Energy and Commerce.
Referred to the Subcommittee on Environment, Manufacturing, and Critical Materials.
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