H.R.5865

            I 

116TH CONGRESS 
2D SESSION H. R. 5865 

To advance technologies for carbon capture, utilization, and storage, and 
for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 12, 2020 
Mr. MCKINLEY introduced the following bill; which was referred to the Com-

mittee on Energy and Commerce, and in addition to the Committees on 
Science, Space, and Technology, Natural Resources, Transportation and 
Infrastructure, and Ways and Means, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 

A BILL 
To advance technologies for carbon capture, utilization, and 

storage, and for other purposes. 

Be it enacted by the Senate and House of Representa-1

tives of the United States of America in Congress assembled, 2

SECTION 1. SHORT TITLE. 3

This Act may be cited as the ‘‘Carbon Capture, Utili-4

zation, and Storage Innovation Act’’ or the ‘‘CCUS Inno-5

vation Act’’. 6

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•HR 5865 IH

SEC. 2. PROJECTS FOR CARBON CAPTURE, UTILIZATION, 1

AND STORAGE. 2

(a) CATEGORIES.—Section 1703(b)(5) of the Energy 3

Policy Act of 2005 (42 U.S.C. 16513(b)(5)) is amended 4

by striking ‘‘Carbon capture and sequestration’’ and in-5

serting ‘‘Carbon capture, utilization, and storage’’. 6

(b) INCLUDED PROJECTS.—Section 1703 of the En-7

ergy Policy Act of 2005 (42 U.S.C. 16513) is amended 8

by adding at the end the following: 9

‘‘(f) CARBON CAPTURE, UTILIZATION, AND STORAGE 10

PROJECTS.—The category of projects described in sub-11

section (b)(5) includes projects involving practices or tech-12

nologies relating to— 13

‘‘(1) development of infrastructure to enable 14

carbon capture, utilization, or storage, including 15

pipelines; 16

‘‘(2) direct air capture; 17

‘‘(3) pre-combustion capture, and post-combus-18

tion capture, of carbon dioxide for fossil fuel based 19

systems, such as power plants and industrial proc-20

esses that utilize fossil energy; 21

‘‘(4) carbon dioxide storage in geologic forma-22

tions; 23

‘‘(5) carbon storage efficiency and security 24

through the use of new and early-stage monitoring 25

tools and models; 26

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3 

•HR 5865 IH

‘‘(6) the conversion of carbon dioxide into sub-1

stances or products with higher economic value; 2

‘‘(7) the conversion of carbon dioxide into bio-3

mass; 4

‘‘(8) the synthesis of fuels and organic chemi-5

cals; and 6

‘‘(9) the synthesis of inorganic materials and 7

chemicals.’’. 8

(c) REPORT.—Not later than 1 year after the date 9

of enactment of this Act, the Secretary of Energy shall 10

submit to the Committee on Energy and Commerce of the 11

House of Representatives a report describing— 12

(1) with respect to projects described in sub-13

section (f) of section 1703 of the Energy Policy Act 14

of 2005 (as added by this section)— 15

(A) the status of each such project for 16

which a guarantee has been awarded under 17

such section 1703; and 18

(B) any recommendations relating to im-19

plementation of title XVII of such Act with re-20

spect to such projects; 21

(2) opportunities to expand the use of carbon 22

capture, utilization, and storage for reducing indus-23

trial sector emissions; 24

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•HR 5865 IH

(3) statutory and regulatory barriers to the de-1

ployment and commercialization of carbon capture, 2

utilization, and storage technologies; and 3

(4) any recommendations to advance carbon 4

capture, utilization, and storage technologies. 5

SEC. 3. RESEARCH, INVESTIGATION, TRAINING, AND OTHER 6

ACTIVITIES. 7

Section 103 of the Clean Air Act (42 U.S.C. 7403) 8

is amended— 9

(1) in subsection (c)(3), in the first sentence of 10

the matter preceding subparagraph (A), by striking 11

‘‘percursors’’ and inserting ‘‘precursors’’; and 12

(2) in subsection (g)— 13

(A) by redesignating paragraphs (1) 14

through (4) as subparagraphs (A) through (D), 15

respectively, and indenting appropriately; 16

(B) in the undesignated matter following 17

subparagraph (D) (as so redesignated)— 18

(i) in the second sentence, by striking 19

‘‘The Administrator’’ and inserting the fol-20

lowing: 21

‘‘(5) COORDINATION AND AVOIDANCE OF DU-22

PLICATION.—The Administrator’’; and 23

(ii) in the first sentence, by striking 24

‘‘Nothing’’ and inserting the following: 25

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•HR 5865 IH

‘‘(4) EFFECT OF SUBSECTION.—Nothing’’; 1

(C) in the matter preceding subparagraph 2

(A) (as so redesignated)— 3

(i) in the third sentence, by striking 4

‘‘Such program’’ and inserting the fol-5

lowing: 6

‘‘(3) PROGRAM INCLUSIONS.—The program 7

under this subsection’’; 8

(ii) in the second sentence— 9

(I) by inserting ‘‘States, institu-10

tions of higher education,’’ after ‘‘sci-11

entists,’’; and 12

(II) by striking ‘‘Such strategies 13

and technologies shall be developed’’ 14

and inserting the following: 15

‘‘(2) PARTICIPATION REQUIREMENT.—Such 16

strategies and technologies described in paragraph 17

(1) shall be developed’’; and 18

(iii) in the first sentence, by striking 19

‘‘In carrying out’’ and inserting the fol-20

lowing: 21

‘‘(1) IN GENERAL.—In carrying out’’; and 22

(D) by adding at the end the following: 23

‘‘(6) CERTAIN CARBON DIOXIDE ACTIVITIES.— 24

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‘‘(A) IN GENERAL.—In carrying out para-1

graph (3)(A) with respect to carbon dioxide, the 2

Administrator shall carry out the activities de-3

scribed in each of subparagraphs (B), (C), (D), 4

and (E). 5

‘‘(B) DIRECT AIR CAPTURE RESEARCH.— 6

‘‘(i) DEFINITIONS.—In this subpara-7

graph: 8

‘‘(I) BOARD.—The term ‘Board’ 9

means the Direct Air Capture Tech-10

nology Advisory Board established by 11

clause (iii)(I). 12

‘‘(II) DILUTE.—The term ‘dilute’ 13

means a concentration of less than 1 14

percent by volume. 15

‘‘(III) DIRECT AIR CAPTURE.— 16

‘‘(aa) IN GENERAL.—The 17

term ‘direct air capture’, with re-18

spect to a facility, technology, or 19

system, means that the facility, 20

technology, or system uses car-21

bon capture equipment to cap-22

ture carbon dioxide directly from 23

the air. 24

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7 

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‘‘(bb) EXCLUSION.—The 1

term ‘direct air capture’ does not 2

include any facility, technology, 3

or system that captures carbon 4

dioxide— 5

‘‘(AA) that is delib-6

erately released from a natu-7

rally occurring subsurface 8

spring; or 9

‘‘(BB) using natural 10

photosynthesis. 11

‘‘(IV) INTELLECTUAL PROP-12

ERTY.—The term ‘intellectual prop-13

erty’ means— 14

‘‘(aa) an invention that is 15

patentable under title 35, United 16

States Code; and 17

‘‘(bb) any patent on an in-18

vention described in item (aa). 19

‘‘(ii) TECHNOLOGY PRIZES.— 20

‘‘(I) IN GENERAL.—Not later 21

than 1 year after the date of enact-22

ment of the CCUS Innovation Act, 23

the Administrator, in consultation 24

with the Secretary of Energy, shall es-25

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•HR 5865 IH

tablish a program to provide, and 1

shall provide, financial awards on a 2

competitive basis for direct air cap-3

ture from media in which the con-4

centration of carbon dioxide is dilute. 5

‘‘(II) DUTIES.—In carrying out 6

this clause, the Administrator shall— 7

‘‘(aa) subject to subclause 8

(III), develop specific require-9

ments for— 10

‘‘(AA) the competition 11

process; and 12

‘‘(BB) the demonstra-13

tion of performance of ap-14

proved projects; 15

‘‘(bb) offer financial awards 16

for a project designed— 17

‘‘(AA) to the maximum 18

extent practicable, to cap-19

ture more than 10,000 tons 20

of carbon dioxide per year; 21

and 22

‘‘(BB) to operate in a 23

manner that would be com-24

mercially viable in the fore-25

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seeable future (as deter-1

mined by the Board); and 2

‘‘(cc) to the maximum ex-3

tent practicable, make financial 4

awards to geographically diverse 5

projects, including at least— 6

‘‘(AA) 1 project in a 7

coastal State; and 8

‘‘(BB) 1 project in a 9

rural State. 10

‘‘(III) PUBLIC PARTICIPATION.— 11

In carrying out subclause (II)(aa), the 12

Administrator shall— 13

‘‘(aa) provide notice of and, 14

for a period of not less than 60 15

days, an opportunity for public 16

comment on, any draft or pro-17

posed version of the requirements 18

described in subclause (II)(aa); 19

and 20

‘‘(bb) take into account pub-21

lic comments received in devel-22

oping the final version of those 23

requirements. 24

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‘‘(iii) DIRECT AIR CAPTURE TECH-1

NOLOGY ADVISORY BOARD.— 2

‘‘(I) ESTABLISHMENT.—There is 3

established an advisory board to be 4

known as the ‘Direct Air Capture 5

Technology Advisory Board’. 6

‘‘(II) COMPOSITION.—The Board 7

shall be composed of 9 members ap-8

pointed by the Administrator, who 9

shall provide expertise in— 10

‘‘(aa) climate science; 11

‘‘(bb) physics; 12

‘‘(cc) chemistry; 13

‘‘(dd) biology; 14

‘‘(ee) engineering; 15

‘‘(ff) economics; 16

‘‘(gg) business management; 17

and 18

‘‘(hh) such other disciplines 19

as the Administrator determines 20

to be necessary to achieve the 21

purposes of this subparagraph. 22

‘‘(III) TERM; VACANCIES.— 23

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•HR 5865 IH

‘‘(aa) TERM.—A member of 1

the Board shall serve for a term 2

of 6 years. 3

‘‘(bb) VACANCIES.—A va-4

cancy on the Board— 5

‘‘(AA) shall not affect 6

the powers of the Board; 7

and 8

‘‘(BB) shall be filled in 9

the same manner as the 10

original appointment was 11

made. 12

‘‘(IV) INITIAL MEETING.—Not 13

later than 30 days after the date on 14

which all members of the Board have 15

been appointed, the Board shall hold 16

the initial meeting of the Board. 17

‘‘(V) MEETINGS.—The Board 18

shall meet at the call of the Chair-19

person or on the request of the Ad-20

ministrator. 21

‘‘(VI) QUORUM.—A majority of 22

the members of the Board shall con-23

stitute a quorum, but a lesser number 24

of members may hold hearings. 25

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‘‘(VII) CHAIRPERSON AND VICE 1

CHAIRPERSON.—The Board shall se-2

lect a Chairperson and Vice Chair-3

person from among the members of 4

the Board. 5

‘‘(VIII) COMPENSATION.—Each 6

member of the Board may be com-7

pensated at not to exceed the daily 8

equivalent of the annual rate of basic 9

pay in effect for a position at level V 10

of the Executive Schedule under sec-11

tion 5316 of title 5, United States 12

Code, for each day during which the 13

member is engaged in the actual per-14

formance of the duties of the Board. 15

‘‘(IX) DUTIES.—The Board shall 16

advise the Administrator on carrying 17

out the duties of the Administrator 18

under this subparagraph. 19

‘‘(X) FACA.—The Federal Advi-20

sory Committee Act (5 U.S.C. App.) 21

shall apply to the Board. 22

‘‘(iv) INTELLECTUAL PROPERTY.— 23

‘‘(I) IN GENERAL.—As a condi-24

tion of receiving a financial award 25

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under this subparagraph, an applicant 1

shall agree to vest the intellectual 2

property of the applicant derived from 3

the technology in one or more entities 4

that are incorporated in the United 5

States. 6

‘‘(II) RESERVATION OF LI-7

CENSE.—The United States— 8

‘‘(aa) may reserve a non-9

exclusive, nontransferable, irrev-10

ocable, paid-up license, to have 11

practiced for or on behalf of the 12

United States, in connection with 13

any intellectual property de-14

scribed in subclause (I); but 15

‘‘(bb) shall not, in the exer-16

cise of a license reserved under 17

item (aa), publicly disclose pro-18

prietary information relating to 19

the license. 20

‘‘(III) TRANSFER OF TITLE.— 21

Title to any intellectual property de-22

scribed in subclause (I) shall not be 23

transferred or passed, except to an 24

entity that is incorporated in the 25

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United States, until the expiration of 1

the first patent obtained in connection 2

with the intellectual property. 3

‘‘(v) AUTHORIZATION OF APPROPRIA-4

TIONS.— 5

‘‘(I) IN GENERAL.—Of the 6

amounts authorized to be appro-7

priated for the Environmental Protec-8

tion Agency, $35,000,000 shall be 9

available to carry out this subpara-10

graph, to remain available until ex-11

pended. 12

‘‘(II) REQUIREMENT.—Research 13

carried out using amounts made avail-14

able under subclause (I) may not du-15

plicate research funded by the Depart-16

ment of Energy. 17

‘‘(vi) TERMINATION OF AUTHORITY.— 18

The Board and all authority provided 19

under this subparagraph shall terminate 20

not later than 10 years after the date of 21

enactment of the CCUS Innovation Act. 22

‘‘(C) CARBON DIOXIDE UTILIZATION RE-23

SEARCH.— 24

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15 

•HR 5865 IH

‘‘(i) DEFINITION OF CARBON DIOXIDE 1

UTILIZATION.—In this subparagraph, the 2

term ‘carbon dioxide utilization’ refers to 3

technologies or approaches that lead to the 4

use of carbon dioxide— 5

‘‘(I) through the fixation of car-6

bon dioxide through photosynthesis or 7

chemosynthesis, such as through the 8

growing of algae or bacteria; 9

‘‘(II) through the chemical con-10

version of carbon dioxide to a material 11

or chemical compound in which the 12

carbon dioxide is securely stored; or 13

‘‘(III) through the use of carbon 14

dioxide for any other purpose for 15

which a commercial market exists, as 16

determined by the Administrator. 17

‘‘(ii) PROGRAM.—The Administrator, 18

in consultation with the Secretary of En-19

ergy, shall carry out a research and devel-20

opment program for carbon dioxide utiliza-21

tion to promote existing and new tech-22

nologies that transform carbon dioxide 23

generated by industrial processes into a 24

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•HR 5865 IH

product of commercial value, or as an 1

input to products of commercial value. 2

‘‘(iii) TECHNICAL AND FINANCIAL AS-3

SISTANCE.—Not later than 2 years after 4

the date of enactment of the CCUS Inno-5

vation Act, in carrying out this subsection, 6

the Administrator, in consultation with the 7

Secretary of Energy, shall support re-8

search and infrastructure activities relating 9

to carbon dioxide utilization by providing 10

technical assistance and financial assist-11

ance in accordance with clause (iv). 12

‘‘(iv) ELIGIBILITY.—To be eligible to 13

receive technical assistance and financial 14

assistance under clause (iii), a carbon diox-15

ide utilization project shall— 16

‘‘(I) have access to an emissions 17

stream generated by a stationary 18

source within the United States that 19

is capable of supplying not less than 20

250 metric tons per day of carbon di-21

oxide for research; 22

‘‘(II) have access to adequate 23

space for a laboratory and equipment 24

for testing small-scale carbon dioxide 25

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•HR 5865 IH

utilization technologies, with onsite 1

access to larger test bays for scale-up; 2

and 3

‘‘(III) have existing partnerships 4

with institutions of higher education, 5

private companies, States, or other 6

government entities. 7

‘‘(v) COORDINATION.—In supporting 8

carbon dioxide utilization projects under 9

this paragraph, the Administrator shall 10

consult with the Secretary of Energy, and, 11

as appropriate, with the head of any other 12

relevant Federal agency, States, the pri-13

vate sector, and institutions of higher edu-14

cation to develop methods and technologies 15

to account for the carbon dioxide emissions 16

avoided by the carbon dioxide utilization 17

projects. 18

‘‘(vi) AUTHORIZATION OF APPROPRIA-19

TIONS.— 20

‘‘(I) IN GENERAL.—Of the 21

amounts authorized to be appro-22

priated for the Environmental Protec-23

tion Agency, $50,000,000 shall be 24

available to carry out this subpara-25

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•HR 5865 IH

graph, to remain available until ex-1

pended. 2

‘‘(II) REQUIREMENT.—Research 3

carried out using amounts made avail-4

able under subclause (I) may not du-5

plicate research funded by the Depart-6

ment of Energy. 7

‘‘(D) DEEP SALINE FORMATION RE-8

PORT.— 9

‘‘(i) DEFINITION OF DEEP SALINE 10

FORMATION.— 11

‘‘(I) IN GENERAL.—In this sub-12

paragraph, the term ‘deep saline for-13

mation’ means a formation of sub-14

surface geographically extensive sedi-15

mentary rock layers saturated with 16

waters or brines that have a high total 17

dissolved solids content and that are 18

below the depth where carbon dioxide 19

can exist in the formation as a super-20

critical fluid. 21

‘‘(II) CLARIFICATION.—In this 22

subparagraph, the term ‘deep saline 23

formation’ does not include oil and 24

gas reservoirs. 25

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‘‘(ii) REPORT.—In consultation with 1

the Secretary of Energy, and, as appro-2

priate, with the head of any other relevant 3

Federal agency and relevant stakeholders, 4

not later than 1 year after the date of en-5

actment of the CCUS Innovation Act, the 6

Administrator shall prepare, submit to 7

Congress, and make publicly available a re-8

port that includes— 9

‘‘(I) a comprehensive identifica-10

tion of potential risks and benefits to 11

project developers associated with in-12

creased storage of carbon dioxide cap-13

tured from stationary sources in deep 14

saline formations, using existing re-15

search; 16

‘‘(II) recommendations, if any, 17

for managing the potential risks iden-18

tified under subclause (I), including 19

potential risks unique to public land; 20

and 21

‘‘(III) recommendations, if any, 22

for Federal legislation or other policy 23

changes to mitigate any potential 24

risks identified under subclause (I). 25

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‘‘(E) REPORT ON CARBON DIOXIDE NON-1

REGULATORY STRATEGIES AND TECH-2

NOLOGIES.— 3

‘‘(i) IN GENERAL.—Not less fre-4

quently than once every 2 years, the Ad-5

ministrator shall submit to the Committee 6

on Environment and Public Works of the 7

Senate and the Committee on Energy and 8

Commerce of the House of Representatives 9

a report that describes— 10

‘‘(I) the recipients of assistance 11

under subparagraphs (B) and (C); 12

and 13

‘‘(II) a plan for supporting addi-14

tional nonregulatory strategies and 15

technologies that could significantly 16

prevent carbon dioxide emissions or 17

reduce carbon dioxide levels in the air, 18

in conjunction with other Federal 19

agencies. 20

‘‘(ii) INCLUSIONS.—The plan sub-21

mitted under clause (i) shall include— 22

‘‘(I) a methodology for evaluating 23

and ranking technologies based on the 24

ability of the technologies to cost ef-25

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21 

•HR 5865 IH

fectively reduce carbon dioxide emis-1

sions or carbon dioxide levels in the 2

air; and 3

‘‘(II) a description of any nonair- 4

related environmental or energy con-5

siderations regarding the technologies. 6

‘‘(F) GAO REPORT.—The Comptroller 7

General of the United States shall submit to 8

Congress a report that— 9

‘‘(i) identifies all Federal grant pro-10

grams in which a purpose of a grant under 11

the program is to perform research on car-12

bon capture and utilization technologies, 13

including direct air capture technologies; 14

and 15

‘‘(ii) examines the extent to which the 16

Federal grant programs identified pursu-17

ant to clause (i) overlap or are duplica-18

tive.’’. 19

SEC. 4. REPORT. 20

Not later than 1 year after the date of enactment 21

of this Act, the Administrator of the Environmental Pro-22

tection Agency (referred to in this Act as the ‘‘Adminis-23

trator’’) shall submit to Congress a report describing how 24

funds appropriated to the Administrator during the 5 25

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22 

•HR 5865 IH

most recent fiscal years have been used to carry out sec-1

tion 103 of the Clean Air Act (42 U.S.C. 7403), including 2

a description of— 3

(1) the amount of funds used to carry out spe-4

cific provisions of that section; and 5

(2) the practices used by the Administrator to 6

differentiate funding used to carry out that section, 7

as compared to funding used to carry out other pro-8

visions of law. 9

SEC. 5. INCLUSION OF CARBON CAPTURE INFRASTRUC-10

TURE PROJECTS. 11

Section 41001(6) of the FAST Act (42 U.S.C. 12

4370m(6)) is amended— 13

(1) in subparagraph (A)— 14

(A) in the matter preceding clause (i), by 15

inserting ‘‘carbon capture,’’ after ‘‘manufac-16

turing,’’; 17

(B) in clause (i)(III), by striking ‘‘or’’ at 18

the end; 19

(C) by redesignating clause (ii) as clause 20

(iii); and 21

(D) by inserting after clause (i) the fol-22

lowing: 23

‘‘(ii) is covered by a programmatic 24

plan or environmental review developed for 25

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23 

•HR 5865 IH

the primary purpose of facilitating develop-1

ment of carbon dioxide pipelines; or’’; and 2

(2) by adding at the end the following: 3

‘‘(C) INCLUSION.—For purposes of sub-4

paragraph (A), construction of infrastructure 5

for carbon capture includes construction of— 6

‘‘(i) any facility, technology, or system 7

that captures, utilizes, or sequesters car-8

bon dioxide emissions, including projects 9

for direct air capture (as defined in para-10

graph (6)(B)(i) of section 103(g) of the 11

Clean Air Act (42 U.S.C. 7403(g)); and 12

‘‘(ii) carbon dioxide pipelines.’’. 13

SEC. 6. DEVELOPMENT OF CARBON CAPTURE, UTILIZA-14

TION, AND SEQUESTRATION REPORT, PER-15

MITTING GUIDANCE, AND REGIONAL PERMIT-16

TING TASK FORCE. 17

(a) DEFINITIONS.—In this section: 18

(1) CARBON CAPTURE, UTILIZATION, AND SE-19

QUESTRATION PROJECTS.—The term ‘‘carbon cap-20

ture, utilization, and sequestration projects’’ includes 21

projects for direct air capture (as defined in para-22

graph (6)(B)(i) of section 103(g) of the Clean Air 23

Act (42 U.S.C. 7403(g))). 24

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24 

•HR 5865 IH

(2) EFFICIENT, ORDERLY, AND RESPON-1

SIBLE.—The term ‘‘efficient, orderly, and respon-2

sible’’ means, with respect to development or the 3

permitting process for carbon capture, utilization, 4

and sequestration projects and carbon dioxide pipe-5

lines, a process that is completed in an expeditious 6

manner while maintaining environmental, health, 7

and safety protections. 8

(b) REPORT.— 9

(1) IN GENERAL.—Not later than 180 days 10

after the date of enactment of this Act, the Chair of 11

the Council on Environmental Quality (referred to in 12

this Act as the ‘‘Chair’’), in consultation with the 13

Administrator of the Environmental Protection 14

Agency, the Secretary of Energy, the Secretary of 15

the Interior, the Executive Director of the Federal 16

Permitting Improvement Council, and the head of 17

any other relevant Federal agency (as determined by 18

the President), shall prepare a report that— 19

(A) compiles all existing relevant Federal 20

permitting and review information and re-21

sources for project applicants, agencies, and 22

other stakeholders interested in the deployment 23

of carbon capture, utilization, and sequestration 24

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25 

•HR 5865 IH

projects and carbon dioxide pipelines, includ-1

ing— 2

(i) the appropriate points of inter-3

action with Federal agencies; 4

(ii) clarification of the permitting re-5

sponsibilities and authorities among Fed-6

eral agencies; and 7

(iii) best practices and templates for 8

permitting; 9

(B) inventories current or emerging activi-10

ties that transform captured carbon dioxide into 11

a product of commercial value, or as an input 12

to products of commercial value; 13

(C) inventories existing initiatives and re-14

cent publications that analyze or identify pri-15

ority carbon dioxide pipelines needed to enable 16

efficient, orderly, and responsible development 17

of carbon capture, utilization, and sequestration 18

projects at increased scale; 19

(D) identifies gaps in the current Federal 20

regulatory framework for the deployment of 21

carbon capture, utilization, and sequestration 22

projects and carbon dioxide pipelines; and 23

(E) identifies Federal financing mecha-24

nisms available to project developers. 25

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26 

•HR 5865 IH

(2) SUBMISSION; PUBLICATION.—The Chair 1

shall— 2

(A) submit the report under paragraph (1) 3

to the Committee on Environment and Public 4

Works of the Senate and the Committee on En-5

ergy and Commerce of the House of Represent-6

atives; and 7

(B) as soon as practicable, make the report 8

publicly available. 9

(c) GUIDANCE.— 10

(1) IN GENERAL.—After submission of the re-11

port under subsection (b)(2), but not later than 1 12

year after the date of enactment of this Act, the 13

Chair shall submit guidance consistent with that re-14

port to all relevant Federal agencies that— 15

(A) facilitates reviews associated with the 16

deployment of carbon capture, utilization, and 17

sequestration projects and carbon dioxide pipe-18

lines; and 19

(B) supports the efficient, orderly, and re-20

sponsible development of carbon capture, utili-21

zation, and sequestration projects and carbon 22

dioxide pipelines. 23

(2) REQUIREMENTS.— 24

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27 

•HR 5865 IH

(A) IN GENERAL.—The guidance under 1

paragraph (1) shall address requirements 2

under— 3

(i) the National Environmental Policy 4

Act of 1969 (42 U.S.C. 4321 et seq.); 5

(ii) the Federal Water Pollution Con-6

trol Act (33 U.S.C. 1251 et seq.); 7

(iii) the Clean Air Act (42 U.S.C. 8

7401 et seq.); 9

(iv) the Safe Drinking Water Act (42 10

U.S.C. 300f et seq.); 11

(v) the Endangered Species Act of 12

1973 (16 U.S.C. 1531 et seq.); 13

(vi) division A of subtitle III of title 14

54, United States Code (formerly known 15

as the ‘‘National Historic Preservation 16

Act’’); 17

(vii) the Migratory Bird Treaty Act 18

(16 U.S.C. 703 et seq.); 19

(viii) the Act of June 8, 1940 (16 20

U.S.C. 668 et seq.) (commonly known as 21

the ‘‘Bald and Golden Eagle Protection 22

Act’’); and 23

(ix) any other Federal law that the 24

Chair determines to be appropriate. 25

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28 

•HR 5865 IH

(B) ENVIRONMENTAL REVIEWS.—The 1

guidance under paragraph (1) shall include di-2

rection to States and other interested parties 3

for the development of programmatic environ-4

mental reviews under the National Environ-5

mental Policy Act of 1969 (42 U.S.C. 4321 et 6

seq.) for carbon capture, utilization, and se-7

questration projects and carbon dioxide pipe-8

lines. 9

(C) PUBLIC INVOLVEMENT.—The guidance 10

under paragraph (1) shall be subject to the 11

public notice, comment, and solicitation of in-12

formation procedures under section 1506.6 of 13

title 40, Code of Federal Regulations (or a suc-14

cessor regulation). 15

(3) SUBMISSION; PUBLICATION.—The Chair 16

shall— 17

(A) submit the guidance under paragraph 18

(1) to the Committee on Environment and Pub-19

lic Works of the Senate and the Committee on 20

Energy and Commerce of the House of Rep-21

resentatives; and 22

(B) as soon as practicable, make the guid-23

ance publicly available. 24

(4) EVALUATION.—The Chair shall— 25

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29 

•HR 5865 IH

(A) periodically evaluate the reports of the 1

task forces under subsection (d)(5) and, as nec-2

essary, revise the guidance under paragraph 3

(1); and 4

(B) each year, submit to the Committee on 5

Environment and Public Works of the Senate, 6

the Committee on Energy and Commerce of the 7

House of Representatives, and relevant Federal 8

agencies a report that describes any rec-9

ommendations for legislation, rules, revisions to 10

rules, or other policies that would address the 11

issues identified by the task forces under sub-12

section (d)(5). 13

(d) TASK FORCE.— 14

(1) ESTABLISHMENT.—Not later than 18 15

months after the date of enactment of this Act, the 16

Chair shall establish not less than 2 task forces, 17

which shall each cover a different geographical area 18

with differing demographic, land use, or geological 19

issues— 20

(A) to identify permitting and other chal-21

lenges and successes that permitting authorities 22

and project developers and operators face; and 23

(B) to improve the performance of the per-24

mitting process and regional coordination for 25

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30 

•HR 5865 IH

the purpose of promoting the efficient, orderly, 1

and responsible development of carbon capture, 2

utilization, and sequestration projects and car-3

bon dioxide pipelines. 4

(2) MEMBERS AND SELECTION.— 5

(A) IN GENERAL.—The Chair shall— 6

(i) develop criteria for the selection of 7

members to each task force; and 8

(ii) select members for each task force 9

in accordance with clause (i) and subpara-10

graph (B). 11

(B) MEMBERS.—Each task force— 12

(i) shall include not less than 1 rep-13

resentative of each of— 14

(I) the Environmental Protection 15

Agency; 16

(II) the Department of Energy; 17

(III) the Department of the Inte-18

rior; 19

(IV) any other Federal agency 20

the Chair determines to be appro-21

priate; 22

(V) any State that requests par-23

ticipation in the geographical area 24

covered by the task force; 25

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31 

•HR 5865 IH

(VI) developers or operators of 1

carbon capture, utilization, and se-2

questration projects or carbon dioxide 3

pipelines; and 4

(VII) nongovernmental member-5

ship organizations, the primary mis-6

sion of which concerns protection of 7

the environment; and 8

(ii) at the request of a Tribal or local 9

government, may include a representative 10

of— 11

(I) not less than 1 local govern-12

ment in the geographical area covered 13

by the task force; and 14

(II) not less than 1 Tribal gov-15

ernment in the geographical area cov-16

ered by the task force. 17

(3) MEETINGS.— 18

(A) IN GENERAL.—Each task force shall 19

meet not less than twice each year. 20

(B) JOINT MEETING.—To the maximum 21

extent practicable, the task forces shall meet 22

collectively not less than once each year. 23

(4) DUTIES.—Each task force shall— 24

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32 

•HR 5865 IH

(A) inventory existing or potential Federal 1

and State approaches to facilitate reviews asso-2

ciated with the deployment of carbon capture, 3

utilization, and sequestration projects and car-4

bon dioxide pipelines, including best practices 5

that— 6

(i) avoid duplicative reviews; 7

(ii) engage stakeholders early in the 8

permitting process; and 9

(iii) make the permitting process effi-10

cient, orderly, and responsible; 11

(B) develop common models for State-level 12

carbon dioxide pipeline regulation and oversight 13

guidelines that can be shared with States in the 14

geographical area covered by the task force; 15

(C) provide technical assistance to States 16

in the geographical area covered by the task 17

force in implementing regulatory requirements 18

and any models developed under subparagraph 19

(B); 20

(D) inventory current or emerging activi-21

ties that transform captured carbon dioxide into 22

a product of commercial value, or as an input 23

to products of commercial value; 24

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33 

•HR 5865 IH

(E) identify any priority carbon dioxide 1

pipelines needed to enable efficient, orderly, and 2

responsible development of carbon capture, uti-3

lization, and sequestration projects at increased 4

scale; 5

(F) identify gaps in the current Federal 6

and State regulatory framework and in existing 7

data for the deployment of carbon capture, uti-8

lization, and sequestration projects and carbon 9

dioxide pipelines; 10

(G) identify Federal and State financing 11

mechanisms available to project developers; and 12

(H) develop recommendations for relevant 13

Federal agencies on how to develop and re-14

search technologies that— 15

(i) can capture carbon dioxide; and 16

(ii) would be able to be deployed with-17

in the region covered by the task force, in-18

cluding any projects that have received 19

technical or financial assistance for re-20

search under paragraph (6) of section 21

103(g) of the Clean Air Act (42 U.S.C. 22

7403(g)). 23

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34 

•HR 5865 IH

(5) REPORT.—Each year, each task force shall 1

prepare and submit to the Chair and to the other 2

task forces a report that includes— 3

(A) any recommendations for improve-4

ments in efficient, orderly, and responsible 5

issuance or administration of Federal permits 6

and other Federal authorizations required 7

under a law described in subsection (c)(2)(A); 8

and 9

(B) any other nationally relevant informa-10

tion that the task force has collected in carrying 11

out the duties under paragraph (4). 12

(6) EVALUATION.—Not later than 5 years after 13

the date of enactment of this Act, the Chair shall— 14

(A) reevaluate the need for the task forces; 15

and 16

(B) submit to Congress a recommendation 17

as to whether the task forces should continue. 18

SEC. 7. EXTENSION OF PUBLICLY TRADED PARTNERSHIP 19

OWNERSHIP STRUCTURE TO CERTAIN SE-20

QUESTRATION ACTIVITIES. 21

(a) IN GENERAL.—Subparagraph (E) of section 22

7704(d)(1) of the Internal Revenue Code of 1986 is 23

amended— 24

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35 

•HR 5865 IH

(1) by striking ‘‘income and gains derived from 1

the exploration’’ and inserting ‘‘income and gains 2

derived from the following: 3

‘‘(i) MINERALS, NATURAL RE-4

SOURCES, ETC.—The exploration’’; 5

(2) by inserting ‘‘or’’ before ‘‘industrial 6

source’’; 7

(3) by inserting a period after ‘‘carbon diox-8

ide’’; 9

(4) by striking ‘‘or the transportation or stor-10

age’’ and inserting the following: 11

‘‘(ii) CERTAIN FUELS.—The transpor-12

tation or storage’’; 13

(5) by striking the comma at the end and in-14

serting a period; and 15

(6) by adding at the end the following new 16

clauses: 17

‘‘(iii) GASIFICATION WITH SEQUES-18

TRATION.—The production of any product 19

or the generation of electric power from a 20

project— 21

‘‘(I) which meets the require-22

ments of subparagraphs (A) and (B) 23

of section 48B(c)(1), and 24

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36 

•HR 5865 IH

‘‘(II) not less than 75 percent of 1

the total carbon oxide emissions of 2

which is qualified carbon oxide (as de-3

fined in section 45Q(c)) which is dis-4

posed of or utilized as provided in 5

paragraph (6). 6

‘‘(iv) CARBON CAPTURE AND SEQUES-7

TRATION.— 8

‘‘(I) POWER GENERATION FACILI-9

TIES.—The generation or storage of 10

electric power (including associated 11

income from the sale or marketing of 12

energy, capacity, resource adequacy, 13

and ancillary services) produced from 14

any power generation facility which is, 15

or from any power generation unit 16

within, a qualified facility which is de-17

scribed in section 45Q(d) and not less 18

than 50 percent (30 percent in the 19

case of a facility or unit placed in 20

service before January 1, 2019) of the 21

total carbon oxide emissions of which 22

is qualified carbon oxide which is dis-23

posed of or utilized as provided in 24

paragraph (6). 25

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37 

•HR 5865 IH

‘‘(II) OTHER FACILITIES.—The 1

sale of any good or service from any 2

facility (other than a power generation 3

facility) which is a qualified facility 4

described in section 45Q(d) and the 5

captured qualified carbon oxide (as so 6

defined) of which is disposed of as 7

provided in paragraph (6).’’. 8

(b) DISPOSAL AND UTILIZATION OF CAPTURED CAR-9

BON OXIDE.—Section 7704(d) of such Code is amended 10

by adding at the end the following new paragraph: 11

‘‘(6) DISPOSAL AND UTILIZATION OF CAPTURED 12

CARBON OXIDE.—For purposes of clauses (iii) and 13

(iv) of paragraph (1)(E), carbon oxide is disposed of 14

or utilized as provided in this paragraph if such car-15

bon oxide is— 16

‘‘(A) placed into secure geological storage 17

(as determined under section 45Q(f)(2)), 18

‘‘(B) used as a tertiary injectant (as de-19

fined in section 45Q(e)(3)) in a qualified en-20

hanced oil or natural gas recovery project (as 21

defined in section 45Q(e)(2)) and placed into 22

secure geological storage (as so determined), or 23

‘‘(C) utilized in a manner described in sec-24

tion 45Q(f)(5).’’. 25

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38 

•HR 5865 IH

(c) EFFECTIVE DATE.—The amendments made by 1

this section shall take effect on the date of the enactment 2

of this Act, in taxable years ending after such date. 3

Æ 

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  /JPEG2000GrayACSImageDict <<
    /TileWidth 256
    /TileHeight 256
    /Quality 30
  >>
  /JPEG2000GrayImageDict <<
    /TileWidth 256
    /TileHeight 256
    /Quality 30
  >>
  /AntiAliasMonoImages false
  /CropMonoImages true
  /MonoImageMinResolution 1200
  /MonoImageMinResolutionPolicy /OK
  /DownsampleMonoImages false
  /MonoImageDownsampleType /Bicubic
  /MonoImageResolution 1200
  /MonoImageDepth -1
  /MonoImageDownsampleThreshold 1.50000
  /EncodeMonoImages true
  /MonoImageFilter /CCITTFaxEncode
  /MonoImageDict <<
    /K -1
  >>
  /AllowPSXObjects false
  /CheckCompliance [
    /None
  ]
  /PDFX1aCheck true
  /PDFX3Check false
  /PDFXCompliantPDFOnly true
  /PDFXNoTrimBoxError false
  /PDFXTrimBoxToMediaBoxOffset [
    0.00000
    0.00000
    0.00000
    0.00000
  ]
  /PDFXSetBleedBoxToMediaBox true
  /PDFXBleedBoxToTrimBoxOffset [
    0.00000
    0.00000
    0.00000
    0.00000
  ]
  /PDFXOutputIntentProfile (U.S. Web Coated \050SWOP\051 v2)
  /PDFXOutputConditionIdentifier (CGATS TR 001)
  /PDFXOutputCondition ()
  /PDFXRegistryName (http://www.color.org)
  /PDFXTrapped /False

  /CreateJDFFile false
  /Description <<
    /ARA 
    /BGR 
    /CHS 
    /CHT 
    /CZE 
    /DAN 
    /DEU 
    /ESP 
    /ETI 
    /FRA 
    /GRE 
    /HEB 
    /HRV 
    /HUN 
    /ITA (Utilizzare queste impostazioni per creare documenti Adobe PDF che devono essere conformi o verificati in base a PDF/X-1a:2001, uno standard ISO per lo scambio di contenuto grafico. Per ulteriori informazioni sulla creazione di documenti PDF compatibili con PDF/X-1a, consultare la Guida dell'utente di Acrobat. I documenti PDF creati possono essere aperti con Acrobat e Adobe Reader 4.0 e versioni successive.)
    /JPN 
    /KOR 
    /LTH 
    /LVI 
    /NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die moeten worden gecontroleerd of moeten voldoen aan PDF/X-1a:2001, een ISO-standaard voor het uitwisselen van grafische gegevens. Raadpleeg de gebruikershandleiding van Acrobat voor meer informatie over het maken van PDF-documenten die compatibel zijn met PDF/X-1a. De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 4.0 en hoger.)
    /NOR 
    /POL 
    /PTB 
    /RUM 
    /RUS 
    /SKY 
    /SLV 
    /SUO 
    /SVE 
    /TUR 
    /UKR 
    /ENU (Use these settings to create Adobe PDF documents that are to be checked or must conform to PDF/X-1a:2001, an ISO standard for graphic content exchange.  For more information on creating PDF/X-1a compliant PDF documents, please refer to the Acrobat User Guide.  Created PDF documents can be opened with Acrobat and Adobe Reader 4.0 and later.)
  >>
  /Namespace [
    (Adobe)
    (Common)
    (1.0)
  ]
  /OtherNamespaces [
    <<
      /AsReaderSpreads false
      /CropImagesToFrames true
      /ErrorControl /WarnAndContinue
      /FlattenerIgnoreSpreadOverrides false
      /IncludeGuidesGrids false
      /IncludeNonPrinting false
      /IncludeSlug false
      /Namespace [
        (Adobe)
        (InDesign)
        (4.0)
      ]
      /OmitPlacedBitmaps false
      /OmitPlacedEPS false
      /OmitPlacedPDF false
      /SimulateOverprint /Legacy
    >>
    <<
      /AddBleedMarks false
      /AddColorBars false
      /AddCropMarks false
      /AddPageInfo false
      /AddRegMarks false
      /ConvertColors /ConvertToCMYK
      /DestinationProfileName ()
      /DestinationProfileSelector /DocumentCMYK
      /Downsample16BitImages true
      /FlattenerPreset <<
        /PresetSelector /HighResolution
      >>
      /FormElements false
      /GenerateStructure false
      /IncludeBookmarks false
      /IncludeHyperlinks false
      /IncludeInteractive false
      /IncludeLayers false
      /IncludeProfiles false
      /MultimediaHandling /UseObjectSettings
      /Namespace [
        (Adobe)
        (CreativeSuite)
        (2.0)
      ]
      /PDFXOutputIntentProfileSelector /DocumentCMYK
      /PreserveEditing true
      /UntaggedCMYKHandling /LeaveUntagged
      /UntaggedRGBHandling /UseDocumentProfile
      /UseDocumentBleed false
    >>
  ]
>> setdistillerparams
<<
  /HWResolution [2400 2400]
  /PageSize [612.000 792.000]
>> setpagedevice



		Superintendent of Documents
	2020-02-20T03:48:00-0500
	US GPO, Washington, DC 20401
	Superintendent of Documents
	GPO attests that this document has not been altered since it was disseminated by GPO