View all text of Part F [§ 16291 - § 16298e]

§ 16298d. Carbon removal
(a) Establishment
(b) Intraagency coordination
(c) Program activitiesThe program may include research, development, and demonstration activities relating to—
(1) direct air capture and storage technologies;
(2) bioenergy with carbon capture and sequestration;
(3) enhanced geological weathering;
(4) agricultural practices;
(5) forest management and afforestation; and
(6) planned or managed carbon sinks, including natural and artificial.
(d) RequirementsIn developing and identifying carbon removal technologies and strategies under the program, the Secretary shall consider—
(1) land use changes, including impacts on natural and managed ecosystems;
(2) ocean acidification;
(3) net greenhouse gas emissions;
(4) commercial viability;
(5) potential for near-term impact;
(6) potential for carbon reductions on a gigaton scale; and
(7) economic cobenefits.
(e) Air capture prize competitions
(1) DefinitionsIn this subsection:
(A) Dilute media
(B) Prize competition
(C) Qualified carbon dioxide
(i) In generalThe term “qualified carbon dioxide” means any carbon dioxide that—(I) is captured directly from the ambient air; and(II) is measured at the source of capture and verified at the point of disposal, injection, or utilization.
(ii) Inclusion
(iii) Exclusion
(D) Qualified direct air capture facility
(i) In generalThe term “qualified direct air capture facility” means any facility that—(I) uses carbon capture equipment to capture carbon dioxide directly from the ambient air; and(II) captures more than 50,000 metric tons of qualified carbon dioxide annually.
(ii) ExclusionThe term “qualified direct air capture facility” does not include any facility that captures carbon dioxide—(I) that is deliberately released from naturally occurring subsurface springs; or(II) using natural photosynthesis.
(2) EstablishmentNot later than 2 years after December 27, 2020, the Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall establish as part of the program a competitive technology prize competition to award prizes for—
(A) precommercial carbon dioxide capture from dilute media; and
(B) commercial applications of direct air capture technologies.
(3) RequirementsIn carrying out this subsection, the Secretary, in accordance with section 3719 of title 15, shall develop requirements for—
(A) the prize competition process; and
(B) monitoring and verification procedures for projects selected to receive a prize under the prize competition.
(4) Eligible projects
(A) Precommercial air capture projectsWith respect to projects described in paragraph (2)(A), to be eligible to be awarded a prize under the prize competition, a project shall—
(i) meet minimum performance standards set by the Secretary;
(ii) meet minimum levels set by the Secretary for the capture of carbon dioxide from dilute media; and
(iii) demonstrate in the application of the project for a prize—(I) a design for a promising carbon capture technology that will—(aa) be operated on a demonstration scale; and(bb) have the potential to achieve significant reduction in the level of carbon dioxide in the atmosphere;(II) a successful bench-scale demonstration of a carbon capture technology; or(III) an operational carbon capture technology on a commercial scale.
(B) Commercial direct air capture projects
(i) In general
(ii) Amount of awardThe amount of the award per metric ton under clause (i)—(I) shall be equal for each qualified direct air capture facility selected for a prize under the prize competition; and(II) shall be determined by the Secretary and in any case shall not exceed—(aa) $180 for qualified carbon dioxide captured and stored in saline storage formations;(bb) a lesser amount, as determined by the Secretary, for qualified carbon dioxide captured and stored in conjunction with enhanced oil recovery operations; or(cc) a lesser amount, as determined by the Secretary, for qualified carbon dioxide captured and utilized in any activity consistent with section 45Q(f)(5) of title 26.
(iii) Requirement
(f) Direct air capture test center
(1) In general
(2) PurposeEach Center shall—
(A) advance research, development, demonstration, and commercial application of direct air capture and storage technologies;
(B) support large-scale pilot and demonstration projects and test direct air capture and storage technologies; and
(C) develop front-end engineering design and economic analysis.
(3) Selection
(A) In general
(B) Competitive basis
(C) Priority criteriaIn selecting entities to receive grants under this subsection, the Secretary shall prioritize consideration of applicants that—
(i) have access to existing or planned research facilities for direct air capture and storage technologies;
(ii) are institutions of higher education with established expertise in engineering for direct air capture and storage technologies, or partnerships with such institutions of higher education; or
(iii) have access to existing research and test facilities for bulk materials design and testing, component design and testing, or professional engineering design.
(4) Formula for awarding grants
(5) Schedule
(A) In general
(B) Renewal
(6) Termination
(g) Pilot and demonstration projectsIn supporting the technology development activities under this section, the Secretary is encouraged to support carbon removal pilot and demonstration projects, including—
(1) pilot projects that test direct air capture systems capable of capturing 10 to 100 tonnes of carbon oxides per year to provide data for demonstration-scale projects; and
(2) direct air capture demonstration projects capable of capturing greater than 1,000 tonnes of carbon oxides per year.
(h) Intraagency collaboration
(i) Accounting
(j) Regional direct air capture hubs
(1) DefinitionsIn this subsection:
(A) Eligible project
(B) Regional direct air capture hub
(2) Establishment of program
(A) In general
(B) Regional direct air capture hubsEach of the 4 regional direct air capture hubs developed under the program under subparagraph (A) shall be a regional direct air capture hub that—
(i) facilitates the deployment of direct air capture projects;
(ii) has the capacity to capture and sequester, utilize, or sequester and utilize at least 1,000,000 metric tons of carbon dioxide from the atmosphere annually from a single unit or multiple interconnected units;
(iii) demonstrates the capture, processing, delivery, and sequestration or end-use of captured carbon; and
(iv) could be developed into a regional or interregional carbon network to facilitate sequestration or carbon utilization.
(3) Selection of projects
(A) Solicitation of proposals
(i) In general
(ii) Additional solicitations
(B) Selection of projects for the development of regional direct air capture hubs
(C) CriteriaThe Secretary shall select eligible projects under subparagraph (B) using the following criteria:
(i) Carbon intensity of local industryTo the maximum extent practicable, each eligible project shall be located in a region with—(I) existing carbon-intensive fuel production or industrial capacity; or(II) carbon-intensive fuel production or industrial capacity that has retired or closed in the preceding 10 years.
(ii) Geographic diversity
(iii) Carbon potential
(iv) Hubs in fossil-producing regions
(v) Scalability
(vi) Employment
(vii) Additional criteria
(D) Coordination
(E) Funding of eligible projects
(4) Authorization of appropriations
(k) Authorization of appropriationsThere are authorized to be appropriated to the Secretary to carry out this section—
(1) $175,000,000 for fiscal year 2021, of which—
(A) $15,000,000 shall be used to carry out subsection (e)(2)(A), to remain available until expended; and
(B) $100,000,000 shall be used to carry out subsection (e)(2)(B), to remain available until expended;
(2) $63,500,000 for fiscal year 2022;
(3) $66,150,000 for fiscal year 2023;
(4) $69,458,000 for fiscal year 2024; and
(5) $72,930,000 for fiscal year 2025.
(Pub. L. 109–58, title IX, § 969D, as added Pub. L. 116–260, div. Z, title V, § 5001(a), Dec. 27, 2020, 134 Stat. 2547; amended Pub. L. 117–58, div. D, title III, § 40308(a), Nov. 15, 2021, 135 Stat. 1003.)