ENCOURAGING PROJECTS TO REDUCE EMISSIONS.

SEC. 102. ENCOURAGING PROJECTS TO REDUCE EMISSIONS. (a) [42 U.S.C. 4321 note] Short Title.—This section may be cited as the “Utilizing Significant Emissions with Innovative Technologies Act” or the “USE IT Act”. (b) Research, Investigation, Training, and Other Activities.—Section 103 of the Clean Air Act (42 U.S.C. 7403) is amended— (1) in subsection (c)(3), in the first sentence of the matter preceding subparagraph (A), by striking “percursors” and inserting “precursors”; and (2) in subsection (g)— (A) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively, and indenting appropriately; (B) in the undesignated matter following subparagraph (D) (as so redesignated)— (i) in the second sentence, by striking “The Administrator” and inserting the following: “(5) Coordination and avoidance of duplication.—The Administrator” ; and (ii) in the first sentence, by striking “Nothing” and inserting the following: “(4) Effect of subsection.—Nothing” ; (C) in the matter preceding subparagraph (A) (as so redesignated)— (i) in the third sentence, by striking “Such program” and inserting the following: “(3) Program inclusions.—The program under this subsection” ; (ii) in the second sentence— (I) by inserting “States, institutions of higher education,” after “scientists,”; and (II) by striking “Such strategies and technologies shall be developed” and inserting the following: “(2) Participation requirement.—Such strategies and technologies described in paragraph (1) shall be developed” ; and (iii) in the first sentence, by striking “In carrying out” and inserting the following: “(1) In general.—In carrying out” ; and (D) by adding at the end the following: “(6) Certain carbon dioxide activities.— “(A) In general.—In carrying out paragraph (3)(A) with respect to carbon dioxide, the Administrator— “(i) is authorized to carry out the activities described in subparagraph (B); and “(ii) shall carry out the activities described in subparagraph (C). “(B) Direct air capture research.— “(i) Definitions.—In this subparagraph: “(I) Board.—The term ‘Board’ means the Direct Air Capture Technology Advisory Board established by clause (iii)(I). “(II) Dilute.—The term ‘dilute’ means a concentration of less than 1 percent by volume. “(III) Direct air capture.— “(aa) In general.—The term ‘direct air capture’, with respect to a facility, technology, or system, means that the facility, technology, or system uses carbon capture equipment to capture carbon dioxide directly from the air. “(bb) Exclusion.—The term ‘direct air capture’ does not include any facility, technology, or system that captures carbon dioxide— “(AA) that is deliberately released from a naturally occurring subsurface spring; or “(BB) using natural photosynthesis. “(IV) Intellectual property.—The term ‘intellectual property’ means— “(aa) an invention that is patentable under title 35, United States Code; and “(bb) any patent on an invention described in item (aa). “(ii) Technology prizes.— “(I) In general.—Not later than 1 year after the date of enactment of the Utilizing Significant Emissions with Innovative Technologies Act, the Administrator, in consultation with the Secretary of Energy, is authorized to establish a program to provide financial awards on a competitive basis for direct air capture from media in which the concentration of carbon dioxide is dilute. “(II) Duties.—In carrying out this clause, the Administrator shall— “(aa) subject to subclause (III), develop specific requirements for— “(AA) the competition process; and “(BB) the demonstration of performance of approved projects; “(bb) offer financial awards for a project designed— “(AA) to the maximum extent practicable, to capture more than 10,000 tons of carbon dioxide per year; “(BB) to operate in a manner that would be commercially viable in the foreseeable future (as determined by the Board); and “(CC) to improve the technologies or information systems that enable monitoring and verification methods for direct air capture projects; and “(cc) to the maximum extent practicable, make financial awards to geographically diverse projects, including at least— “(AA) 1 project in a coastal State; and “(BB) 1 project in a rural State. “(III) Public participation.—In carrying out subclause (II)(aa), the Administrator shall— “(aa) provide notice of and, for a period of not less than 60 days, an opportunity for public comment on, any draft or proposed version of the requirements described in subclause (II)(aa); and “(bb) take into account public comments received in developing the final version of those requirements. “(iii) Direct air capture technology advisory board.— “(I) Establishment.—The Administrator may establish an advisory board to be known as the ‘Direct Air Capture Technology Advisory Board’. “(II) Composition.—The Board, on the establishment of the Board, shall be composed of 9 members appointed by the Administrator, who shall provide expertise in— “(aa) climate science; “(bb) physics; “(cc) chemistry; “(dd) biology; “(ee) engineering; “(ff) economics; “(gg) business management; and “(hh) such other disciplines as the Administrator determines to be necessary to achieve the purposes of this subparagraph. “(III) Term; vacancies.— “(aa) Term.—A member of the Board shall serve for a term of 6 years. “(bb) Vacancies.—A vacancy on the Board— “(AA) shall not affect the powers of the Board; and “(BB) shall be filled in the same manner as the original appointment was made. “(IV) Initial meeting.—Not later than 30 days after the date on which all members of the Board have been appointed, the Board shall hold the initial meeting of the Board. “(V) Meetings.—The Board shall meet at the call of the Chairperson or on the request of the Administrator. “(VI) Quorum.—A majority of the members of the Board shall constitute a quorum, but a lesser number of members may hold hearings. “(VII) Chairperson and vice chairperson.—The Board shall select a Chairperson and Vice Chairperson from among the members of the Board. “(VIII) Compensation.—Each member of the Board may be compensated at not to exceed the daily equivalent of the annual rate of basic pay in effect for a position at level V of the Executive Schedule under section 5316 of title 5, United States Code, for each day during which the member is engaged in the actual performance of the duties of the Board. “(IX) Duties.—The Board shall— “(aa) advise the Administrator on carrying out the duties of the Administrator under this subparagraph; and “(bb) provide other assistance and advice as requested by the Administrator. “(iv) Intellectual property.— “(I) In general.—As a condition of receiving a financial award under this subparagraph, an applicant shall agree to vest the intellectual property of the applicant derived from the technology in 1 or more entities that are incorporated in the United States. “(II) Reservation of license.—The United States— “(aa) may reserve a nonexclusive, nontransferable, irrevocable, paid-up license, to have practiced for or on behalf of the United States, in connection with any intellectual property described in subclause (I); but “(bb) shall not, in the exercise of a license reserved under item (aa), publicly disclose proprietary information relating to the license. “(III) Transfer of title.—Title to any intellectual property described in subclause (I) shall not be transferred or passed, except to an entity that is incorporated in the United States, until the expiration of the first patent obtained in connection with the intellectual property. “(v) Authorization of appropriations.—There is authorized to be appropriated to carry out this subparagraph $35,000,000, to remain available until expended. “(vi) Termination of authority.—Notwithstanding section 14 of the Federal Advisory Committee Act (5 U.S.C. App.), the Board and all authority provided under this subparagraph shall terminate not later than 12 years after the date of enactment of the Utilizing Significant Emissions with Innovative Technologies Act. “(C) Deep saline formation report.— “(i) Definition of deep saline formation.— “(I) In general.—In this subparagraph, the term ‘deep saline formation’ means a formation of subsurface geographically extensive sedimentary rock layers saturated with waters or brines that have a high total dissolved solids content and that are below the depth where carbon dioxide can exist in the formation as a supercritical fluid. “(II) Clarification.—In this subparagraph, the term ‘deep saline formation’ does not include oil and gas reservoirs. “(ii) Report.—In consultation with the Secretary of Energy, and, as appropriate, with the head of any other relevant Federal agency and relevant stakeholders, not later than 1 year after the date of enactment of the Utilizing Significant Emissions with Innovative Technologies Act, the Administrator shall prepare, submit to Congress, and make publicly available a report that includes— “(I) a comprehensive identification of potential risks and benefits to project developers associated with increased storage of carbon dioxide captured from stationary sources in deep saline formations, using existing research; “(II) recommendations for managing the potential risks identified under subclause (I), including potential risks unique to public land; and “(III) recommendations for Federal legislation or other policy changes to mitigate any potential risks identified under subclause (I). “(D) GAO report.—Not later than 5 years after the date of enactment of the Utilizing Significant Emissions with Innovative Technologies Act, the Comptroller General of the United States shall submit to Congress a report that— “(i) identifies all Federal grant programs in which a purpose of a grant under the program is to perform research on carbon capture and utilization technologies, including direct air capture technologies; and “(ii) examines the extent to which the Federal grant programs identified pursuant to clause (i) overlap or are duplicative.” . (c) Carbon Utilization Program.— (1) 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 968 the following: “SEC. 969. [42 U.S.C. 16298] CARBON UTILIZATION PROGRAM “(a) In General.—The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall carry out a program of research, development, demonstration, and commercialization relating to carbon utilization. “(b) Activities.—Under the program described in subsection (a), the Secretary shall— “(1) assess and monitor— “(A) potential changes in lifecycle carbon dioxide and other greenhouse gas emissions; and “(B) other environmental safety indicators of new technologies, practices, processes, or methods used in enhanced hydrocarbon recovery as part of the activities authorized under section 963; “(2) identify and evaluate novel uses for carbon (including conversion of carbon oxides) that, on a full lifecycle basis, achieve a permanent reduction, or avoidance of a net increase, in carbon dioxide in the atmosphere, for use in commercial and industrial products such as— “(A) chemicals; “(B) plastics; “(C) building materials; “(D) fuels; “(E) cement; “(F) products of coal utilization in power systems or in other applications; and “(G) other products with demonstrated market value; “(3) identify and assess carbon capture technologies for industrial systems; and “(4) identify and assess alternative uses for coal that result in zero net emissions of carbon dioxide or other pollutants, including products derived from carbon engineering, carbon fiber, and coal conversion methods. “(c) Prioritization.—In supporting demonstration and commercialization research under the program described in subsection (a), the Secretary shall prioritize consideration of projects that— “(1) have access to a carbon dioxide emissions stream generated by a stationary source in the United States that is capable of supplying not less than 250 metric tons per day of carbon dioxide for research; “(2) have access to equipment for testing small-scale carbon dioxide utilization technologies, with onsite access to larger test bays for scale-up; and “(3) have 1 or more existing partnerships with a National Laboratory, an institution of higher education, a private company, or a State or other government entity. “(d) Coordination.—The Secretary shall coordinate the activities authorized under this section with the activities authorized in section 969A as part of a single consolidated program of the Department. “(e) Authorization of Appropriations.—There is authorized to be appropriated to the Secretary to carry out this section $50,000,000, to remain available until expended.” . (2) Study.— (A) In general.—The Secretary of Energy, in consultation with the Administrator of the Environmental Protection Agency, shall seek to enter into an agreement with the National Academies of Sciences, Engineering, and Medicine to conduct a study that assesses the barriers and opportunities relating to the commercial application of carbon dioxide in the United States. (B) Contents.—The study under subparagraph (A) shall— (i) analyze the technical feasibility, related challenges, and impacts of— (I) commercializing carbon dioxide; and (II) as part of that commercialization— (aa) creating a national system of carbon dioxide pipelines and geologic sequestration sites; (bb) mitigating environmental and landowner impacts; and (cc) regional economic challenges and regional economic opportunities; (ii) identify potential markets, industries, or sectors that may benefit from greater access to commercial carbon dioxide; (iii) assess the current state of infrastructure and any necessary updates to that infrastructure to allow for the integration of safe and reliable carbon dioxide transportation, utilization, and storage; (iv)(I) estimate the economic, climate, and environmental impacts of any well-integrated national carbon dioxide pipeline system; and (II) suggest policies that could improve the economic impact of that system; (v) assess the global status and progress of existing chemical and biological carbon utilization technologies that utilize waste carbon (including carbon dioxide, carbon monoxide, methane, and biogas) from power generation, biofuels production, and other industrial processes relevant to minimizing net greenhouse gas emissions; (vi) identify emerging technologies for and approaches to carbon utilization that show promise for scale-up, demonstration, deployment, and commercialization relevant to minimizing net greenhouse gas emissions; (vii) analyze the factors associated with making carbon utilization technologies relevant to minimizing net greenhouse gas emissions viable at a commercial scale, including carbon waste stream availability, economics, market capacity, and energy and lifecycle requirements; (viii)(I) assess the major technical challenges associated with increasing the commercial viability of carbon reuse technologies; and (II) identify the research and development questions that will address those challenges; (ix)(I) assess current research efforts, including engineering and computational research, that address the challenges described in clause (viii)(I); and (II) identify any gaps in the current research portfolio; and (x) develop a comprehensive research agenda that addresses both long- and short-term research needs and opportunities for carbon capture utilization and storage technologies relevant to minimizing net greenhouse gas emissions. (3) Technical amendment.—The table of contents for the Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 600) is amended by inserting after the item relating to section 968 the following: “Sec. 969. Carbon utilization program.” . (d) Improvement of Permitting Process for Carbon Dioxide Capture and Infrastructure Projects.— (1) Inclusion of carbon capture infrastructure projects.—Section 41001(6) of the FAST Act (42 U.S.C. 4370m(6)) is amended— (A) in subparagraph (A)— (i) in the matter preceding clause (i), by inserting “carbon capture,” after “manufacturing,”; (ii) in clause (i)(III), by striking “or” at the end; (iii) by redesignating clause (ii) as clause (iii); and (iv) by inserting after clause (i) the following: “(ii) is covered by a programmatic plan or environmental review developed for the primary purpose of facilitating development of carbon dioxide pipelines; or” ; and (B) by adding at the end the following: “(C) Inclusion.—For purposes of subparagraph (A), construction of infrastructure for carbon capture includes construction of— “(i) any facility, technology, or system that captures, utilizes, or sequesters carbon dioxide emissions, including projects for direct air capture (as defined in paragraph (6)(B)(i) of section 103(g) of the Clean Air Act (42 U.S.C. 7403(g)); and “(ii) carbon dioxide pipelines.” . (2) [42 U.S.C. 4370m note] Development of carbon capture, utilization, and sequestration report, permitting guidance, and regional permitting task force.— (A) Definitions.—In this paragraph: (i) Carbon capture, utilization, and sequestration projects.—The term “carbon capture, utilization, and sequestration projects” includes projects for direct air capture (as defined in paragraph (6)(B)(i) of section 103(g) of the Clean Air Act (42 U.S.C. 7403(g))). (ii) Efficient, orderly, and responsible.—The term “efficient, orderly, and responsible” means, with respect to development or the permitting process for carbon capture, utilization, and sequestration projects and carbon dioxide pipelines, a process that promotes environmental, health, and safety protections while maintaining a process that is completed in an expeditious manner. (B) Report.— (i) In general.—Not later than 180 days after the date of enactment of this Act, the Chair of the Council on Environmental Quality (referred to in this section as the “Chair”), in consultation with the Administrator of the Environmental Protection Agency, the Secretary of Energy, the Secretary of the Interior, the Secretary of Transportation, the Executive Director of the Federal Permitting Improvement Council, and the head of any other relevant Federal agency (as determined by the President), shall prepare a report that— (I) compiles all existing relevant Federal permitting and review information and resources for project applicants, agencies, and other stakeholders interested in the deployment and impact of carbon capture, utilization, and sequestration projects and carbon dioxide pipelines, including— (aa) the appropriate points of interaction with Federal agencies; (bb) clarification of the permitting responsibilities and authorities among Federal agencies; and (cc) best practices and templates for permitting in an efficient, orderly, and responsible manner, including through improved staff capacity and training at Federal permitting agencies; (II) inventories current or emerging activities that transform captured carbon dioxide into a product of commercial value, or as an input to products of commercial value; (III) inventories existing initiatives and recent publications that analyze or identify priority carbon dioxide pipelines needed to enable efficient, orderly, and responsible development of carbon capture, utilization, and sequestration projects at increased scale; (IV) identifies gaps in the current Federal regulatory framework for the deployment of carbon capture, utilization, and sequestration projects and carbon dioxide pipelines; (V) identifies Federal financing mechanisms available to project developers; and (VI) identifies public engagement opportunities through existing laws, including under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). (ii) Submission; publication.—The Chair shall— (I) submit the report under clause (i) to the Committee on Environment and Public Works of the Senate and the Committee on Energy and Commerce, the Committee on Natural Resources, and the Committee on Transportation and Infrastructure of the House of Representatives; and (II) as soon as practicable, make the report publicly available. (C) Guidance.— (i) In general.—After submission of the report under subparagraph (B)(ii), but not later than 1 year after the date of enactment of this Act, the Chair shall submit guidance consistent with that report to all relevant Federal agencies that— (I) facilitates reviews associated with the deployment of carbon capture, utilization, and sequestration projects and carbon dioxide pipelines; and (II) supports the efficient, orderly, and responsible development of carbon capture, utilization, and sequestration projects and carbon dioxide pipelines. (ii) Requirements.— (I) In general.—The guidance under clause (i) shall address applicable requirements under— (aa) the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); (bb) the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.); (cc) the Clean Air Act (42 U.S.C. 7401 et seq.); (dd) the Safe Drinking Water Act (42 U.S.C. 300f et seq.); (ee) the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.); (ff) division A of subtitle III of title 54, United States Code (formerly known as the “National Historic Preservation Act”); (gg) the Migratory Bird Treaty Act (16 U.S.C. 703 et seq.); (hh) the Act of June 8, 1940 (16 U.S.C. 668 et seq.) (commonly known as the “Bald and Golden Eagle Protection Act”); (ii) chapter 601 of title 49, United States Code (including those provisions formerly cited as the Natural Gas Pipeline Safety Act of 1968 (Public Law 90-481; 82 Stat. 720) and the Hazardous Liquid Pipeline Safety Act of 1979 (Public Law 96-129; 93 Stat. 1003)); and (jj) any other Federal law that the Chair determines to be appropriate. (II) Environmental reviews.—The guidance under clause (i) shall include direction to States and other interested parties for the development of programmatic environmental reviews under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for carbon capture, utilization, and sequestration projects and carbon dioxide pipelines. (III) Public involvement.—The guidance under clause (i) shall be subject to the public notice, comment, and solicitation of information procedures under section 1506.6 of title 40, Code of Federal Regulations (or a successor regulation). (iii) Submission; publication.—The Chair shall— (I) submit the guidance under clause (i) to the Committee on Environment and Public Works of the Senate and the Committee on Energy and Commerce, the Committee on Natural Resources, and the Committee on Transportation and Infrastructure of the House of Representatives; and (II) as soon as practicable, make the guidance publicly available. (iv) Evaluation.—The Chair shall— (I) periodically evaluate the reports of the task forces under subparagraph (D)(v) and, as necessary, revise the guidance under clause (i); and (II) each year, submit to the Committee on Environment and Public Works of the Senate, the Committee on Energy and Commerce, the Committee on Natural Resources, and the Committee on Transportation and Infrastructure of the House of Representatives, and relevant Federal agencies a report that describes any recommendations for rules, revisions to rules, or other policies that would address the issues identified by the task forces under subparagraph (D)(v). (D) Task forces.— (i) Establishment.—Not later than 18 months after the date of enactment of this Act, the Chair shall establish not less than 2 task forces, which shall each cover a different geographical area with differing demographic, land use, or geological issues— (I) to identify permitting and other challenges and successes that permitting authorities and project developers and operators face in permitting projects in an efficient, orderly, and responsible manner; and (II) to improve the performance of the permitting process and regional coordination for the purpose of promoting the efficient, orderly, and responsible development of carbon capture, utilization, and sequestration projects and carbon dioxide pipelines. (ii) Members and selection.— (I) In general.—The Chair shall— (aa) develop criteria for the selection of members to each task force; and (bb) select members for each task force in accordance with item (aa) and subclause (II). (II) Members.—Each task force— (aa) shall include not less than 1 representative of each of— (AA) the Environmental Protection Agency; (BB) the Department of Energy; (CC) the Department of the Interior; (DD) the Pipeline and Hazardous Materials Safety Administration; (EE) any other Federal agency the Chair determines to be appropriate; (FF) any State that requests participation in the geographical area covered by the task force; (GG) developers or operators of carbon capture, utilization, and sequestration projects or carbon dioxide pipelines; and (HH) nongovernmental membership organizations, the primary mission of which concerns protection of the environment; (bb) at the request of a Tribal or local government, may include a representative of— (AA) not less than 1 local government in the geographical area covered by the task force; and (BB) not less than 1 Tribal government in the geographical area covered by the task force; and (cc) shall include 1 expert in each of the following fields— (AA) health and environmental effects, including exposure evaluation; and (BB) pipeline safety. (iii) Meetings.— (I) In general.—Each task force shall meet not less than twice each year. (II) Joint meeting.—To the maximum extent practicable, the task forces shall meet collectively not less than once each year. (iv) Duties.—Each task force shall— (I) inventory existing or potential Federal and State approaches to facilitate reviews associated with the deployment of carbon capture, utilization, and sequestration projects and carbon dioxide pipelines, including best practices that— (aa) avoid duplicative reviews to the extent permitted by law; (bb) engage stakeholders early in the permitting process; and (cc) make the permitting process efficient, orderly, and responsible; (II) develop common models for State-level carbon dioxide pipeline regulation and oversight guidelines that can be shared with States in the geographical area covered by the task force; (III) provide technical assistance to States in the geographical area covered by the task force in implementing regulatory requirements and any models developed under subclause (II); (IV) inventory current or emerging activities that transform captured carbon dioxide into a product of commercial value, or as an input to products of commercial value; (V) identify any priority carbon dioxide pipelines needed to enable efficient, orderly, and responsible development of carbon capture, utilization, and sequestration projects at increased scale; (VI) identify gaps in the current Federal and State regulatory framework and in existing data for the deployment of carbon capture, utilization, and sequestration projects and carbon dioxide pipelines; (VII) identify Federal and State financing mechanisms available to project developers; and (VIII) develop recommendations for relevant Federal agencies on how to develop and research technologies that— (aa) can capture carbon dioxide; and (bb) would be able to be deployed within the region covered by the task force, including any projects that have received technical or financial assistance for research under paragraph (6) of section 103(g) of the Clean Air Act (42 U.S.C. 7403(g)). (v) Report.—Each year, each task force shall prepare and submit to the Chair and to the other task forces a report that includes— (I) any recommendations for improvements in efficient, orderly, and responsible issuance or administration of Federal permits and other Federal authorizations required under a law described in subparagraph (C)(ii)(I); and (II) any other nationally relevant information that the task force has collected in carrying out the duties under clause (iv). (vi) Evaluation.—Not later than 5 years after the date of enactment of this Act, the Chair shall— (I) reevaluate the need for the task forces; and (II) submit to Congress a recommendation as to whether the task forces should continue.