Title I — Federal investment in clean coal technologies

S. 2152 · 113th Congress · Mar 25, 2014 · Lineage

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:

“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.”

(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.”

(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.”

(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.