,,ii #aac? ,,congress #b;d ,session ,s4 #bbhh ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,may #e1 #bjad,mr4 ,rockefell] introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to exp& exi/+ tax cr$its to enc\rage ! capture1 utilization1 & seque/ration ( c>bon dioxide4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,exp&+ ,c>bon ,capture ?r\gh ,enhanc$ ,oil ,recov]y ,act ( #bjad4 #b4 ,expansion ( tax cr$it = capture1 utilization1 & seque/ration ( c>bon dioxide 7a7 ,te*nical am5dm5t ,section #de,q ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ ! section head+ & ins]t+ ! foll[+3 #de,q-#a4 ,/&>d c>bon dioxide seque/ration cr$it 4 7b7 ,expansion ( c>bon dioxide seque/ration cr$it ,subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #de,q-#a1 z r$esignat$ by subsection 7a71 ! foll[+ new section3 #de,q-#b4 ,competitively bid c>bon dioxide seque/ration cr$it 7a7 ,all[ance ( cr$it 7#a7 ,9 g5]al ,= purposes ( section #ch1 ! c>bon dioxide seque/ration cr$it det]m9$ "u ?is section = any taxable ye> is equal to ! am\nt det]m9$ "u subsection 7c77#b7 t is allocat$ to ! qualifi$ facility & c]tifi$ = su* ye> = ! capture1 compression1 & transport ( qualifi$ c>bon dioxide4 7#b7 ,cr$it claim$ by taxpay] :o captures1 uses1 & disposes ( c>bon dioxide ,except z provid$ 9 p>agraph 7#c7 & pursuant to su* requirem5ts z are det]m9$ appropriate by ! ,secret>y1 ! cr$it all[$ "u ?is section %all be attributable to ! taxpay] :o captur$1 us$ 7or contract$ = use71 & dispos$ 7or contract$ = disposal7 ( ! qualifi$ c>bon dioxide4 7#c7 ,election to all[ cr$it to be claim$ by taxpay] :o uses & disposes ( c>bon dioxide ,a taxpay] describ$ 9 p>agraph 7#b7 may elect1 pursuant to su* requirem5ts z are det]m9$ appropriate by ! ,secret>y1 to p]mit ! cr$its all[$ "u ?is section to be attributable to ! p]son :o us$ & dispos$ ( ! qualifi$ c>bon dioxide4 7b7 ,g5]al ,requirem5ts 7#a7 ,9 g5]al ,n lat] ?an #ab mon?s aft] ! date ( ! enactm5t ( ?is section & aft] provid+ opportunity = public notice & comm5t1 ! ,secret>y1 9 consultation ) ! ,secret>y ( ,en]gy1 %all e/abli% a process = annual competitive bidd+ = c>bon dioxide seque/ration cr$its "u ?is section t includes ! foll[+3 7,a7 ,e/abli%m5t ( individual project tran*es = allocation ( c>bon dioxide seque/ration cr$its to diff]5t =ms ( qualifi$ projects4 7,b7 ,annual solicitation ( bids = allocation ( c>bon dioxide seque/ration cr$its = qualifi$ projects )9 ea* individual project tran*e4 7,c7 ,allocation ( cr$its1 on a p] project basis1 = ! applicable cr$it+ p]iod4 7,d7 ,allocation ( cr$its 9 a mann] t ensures a net increase 9 rev5ue = ! ,f$]al ,gov]nm5t ov] a reasonable p]iod ( "t 7z det]m9$ by ! ,secret>y74 7,e7 ,e/abli%m5t ( proc$ures = c]tify+ qualifi$ projects t h receiv$ an allocation ( c>bon dioxide seque/ration cr$its4 7#b7 ,purpose ,! purpose ( ?is section is-- 7,a7 to r$uce ! increm5tal co/ ( c>bon dioxide capture1 compression1 & transport1 7,b7 to accel]ate ! deploym5t & advancem5t ( te*nologies t capture c>bon dioxide1 7,c7 to significantly increase dome/ic oil production ?r\gh expansion ( enhanc$ oil recov]y us+ an?ropog5ic c>bon dioxide1 7,d7 to r$uce ! am\nt ( an?ropog5ic c>bon dioxide t is releas$ into ! atmosph]e & contribut+ to climate *ange1 & 7,e7 to produce a net increase 9 rev5ues = ! ,f$]al ,gov]nm5t ov] a reasonable p]iod ( "t f additional tax rev5ue & royalties collect$ on oil recov]$ ?r\gh qualifi$ enhanc$ oil recov]y projects4 7c7 ,annual competitive bidd+ & allocation ( cr$its 7#a7 ,application process 7,a7 ,9 g5]al ,= purposes ( ! annual competitive bidd+ process "u ?is section1 ! ,secret>y %all-- 7i7 solicit bids = allocations ( c>bon dioxide seque/ration cr$its f applications = qualifi$ projects )9 ea* individual project tran*e 7z describ$ 9 subp>agraph 7,c771 & 7ii7 require t an applicant submitt+ a bid = c>bon dioxide seque/ration cr$its = a qualifi$ project-- 7,i7 be limit$ to bidd+ )9 a s+le project tran*e = ! project1 & 7,,ii7 include z "p ( _! bid-- 7aa7 subject to subp>agraph 7,d71 ! propos$ doll> am\nt ( ! c>bon dioxide seque/ration cr$it p] metric ton ( qualifi$ c>bon dioxide1 & 7bb7 ! project$ metric tonnage ( qualifi$ c>bon dioxide associat$ ) ! project ov] ! cr$it+ p]iod 7z def9$ 9 subsection 7f77#d774 7,b7 ,application requirem5ts ,an application "u subp>agraph 7,a7 %all conta9 su* in=mation z ! ,secret>y may require 9 ord] to make a det]m9ation reg>d+ an allotm5t ( c>bon dioxide seque/ration cr$its4 ,any in=mation conta9$ 9 ! application %all be protect$ z provid$ 9 section #eeb7;b77#d7 ( title #e1 ,unit$ ,/ates ,code4 7,c7 ,project tran*es ,! ,secret>y %all e/abli% #c individual project tran*es = qualifi$ projects 9 ea* ( ! foll[+ categories3 7i7 ,electric p[] projects 7z describ$ 9 subsection 7f77#f774 7ii7 ,fir/-tran*e indu/rial projects 7z describ$ 9 subsection 7f77#h774 7iii7 ,second-tran*e indu/rial projects 7z describ$ 9 subsection 7f77#ae774 7,d7 ,p] ton m9imum & maximum ,! ,secret>y1 9 consultation ) ! ,secret>y ( ,en]gy1 %all e/abli% m9imum & maximum doll> am\nts = ! propos$ doll> am\nt ( ! c>bon dioxide seque/ration cr$it p] metric ton ( qualifi$ c>bon dioxide 9 ea* project tran*e4 7#b7 ,allocation ( cr$its 7,a7 ,9 g5]al ,foll[+ ! receipt ( bids pursuant to ! application process describ$ 9 p>agraph 7#a71 ! ,secret>y1 9 consultation ) ! ,secret>y ( ,en]gy1 %all allocate c>bon dioxide seque/ration cr$its to qualifi$ projects ) ea* project tran*e4 7,b7 ,allocation to l[e/ bidd] ,! ,secret>y %all allocate ! c>bon dioxide seque/ration cr$its to qualifi$ projects on ! basis ( ! propos$ doll> am\nt = ! c>bon dioxide seque/ration cr$it p] metric ton ( qualifi$ c>bon dioxide conta9$ 9 ! bid submitt$ by ! applicant1 ) cr$its to be allocat$ 9 ! ord] ( ! l[e/ submitt$ bid4 7,c7 ,am\nt allocat$ p] qualifi$ project 7i7 ,9 g5]al ,subject to clause 7ii71 ! am\nt ( ! c>bon dioxide seque/ration cr$it allocat$ to a qualifi$ project %all be equal to ! product (-- 7,i7 subject to p>agraph 7#a77;,d71 ! propos$ doll> am\nt ( ! c>bon dioxide seque/ration cr$it p] metric ton ( qualifi$ c>bon dioxide 7z propos$ pursuant to p>agraph 7#a77;,a77ii77,,ii77aa771 & 7,,ii7 subject to clause 7iii71 ! project$ metric tonnage ( qualifi$ c>bon dioxide associat$ ) ! project ov] ! cr$it+ p]iod 7z project$ pursuant to p>agraph 7#a77;,a77ii77,,ii77bb774 7ii7 ,readju/m5t ( cr$it am\nt bas$ on crude oil price ,= ea* cr$it+ ye> dur+ ! cr$it+ p]iod1 ! am\nt ( ! c>bon dioxide seque/ration cr$it %all be equal to ! product (-- 7,i7 ! am\nt ( ! cr$it1 z det]m9$ "u clause 7i7 9 ! allocation ye>1 & 7,,ii7 ! quoti5t (-- 7aa7 ! annual av]age ,we/ ,texas ,int]m$iate ,crude ,oil price 7p] #db-;gallon b>rel7 = ! ye> 9 :i* ! bid = c>bon dioxide seque/ration cr$its 0 made1 divid$ by 7bb7 ! annual av]age ,we/ ,texas ,int]m$iate ,crude ,oil price 7p] #db-;gallon b>rel7 = ! applicable cr$it+ ye>4 7iii7 ,limitation = c]ta9 projects ,= purposes ( det]m9+ ! am\nt ( c>bon dioxide seque/ration cr$its allocat$ to a indu/rial project describ$ 9 subsection 7f77#ad77;,b77ii7 or an electric p[] project describ$ 9 subsection 7f77#ad77;,b77iii71 ! project$ metric tonnage ( qualifi$ c>bon dioxide associat$ ) ! project ov] ! cr$it+ p]iod %all n be great] ?an ! product (-- 7,i7 #a1jjj1jjj metric tons1 & 7,,ii7 ! numb] ( cr$it+ ye>s 9 ! cr$it+ p]iod4 7,d7 ,maximum level ( cr$its 7i7 ,9 g5]al ,subject to clause 7ii71 ! total am\nt ( c>bon dioxide seque/ration cr$its allocat$ to all qualifi$ projects )9 ea* project tran*e %all n exce$ ! maximum am\nt z e/abli%$ = ! applicable ye>1 z foll[s3 7,i7 ,electric p[] projects ,! am\nt ( c>bon dioxide seque/ration cr$its allott$ to electric p[] projects %all n exce$-- 7aa7 = any allocation ye> dur+ ! p]iod betwe5 ! fir/ annual competitive bidd+ process & ! ?ird annual competitive bidd+ process1 #a1cej1jjj1jjj1 7bb7 = any allocation ye> dur+ ! p]iod betwe5 ! f\r? annual competitive bidd+ process & ! sev5? annual competitive bidd+ process1 #b1gjj1jjj1jjj1 7cc7 = ! allocation ye> 9 :i* ! eigh? annual competitive bidd+ process occurs1 #d1jej1jjj1jjj1 7dd7 = ! allocation ye> 9 :i* ! n9? annual competitive bidd+ process occurs1 #e1djj1jjj1jjj1 & 7ee7 = ! allocation ye> 9 :i* ! t5? annual competitive bidd+ process occurs & ea* subsequ5t allocation ye>1 #f1gej1jjj1jjj4 7,,ii7 ,fir/-tran*e indu/rial projects ,! am\nt ( c>bon dioxide seque/ration cr$its allott$ to fir/-tran*e indu/rial projects = any allocation ye> %all n exce$ #djj1jjj1jjj4 7,,iii7 ,second-tran*e indu/rial projects ,! am\nt ( c>bon dioxide seque/ration cr$its allott$ to second-tran*e indu/rial projects %all n exce$-- 7aa7 = any allocation ye> dur+ ! p]iod betwe5 ! fir/ annual competitive bidd+ process & ! ?ird annual competitive bidd+ process1 #cjj1jjj1jjj1 & 7bb7 = ! allocation ye> 9 :i* ! f\r? annual competitive bidd+ process occurs & ea* subsequ5t allocation ye>1 #fjj1jjj1jjj4 7ii7 ,rollov] ( unallocat$ cr$it am\nts 7,i7 ,9 g5]al ,= purposes ( clause 7i71 ! maximum am\nt ( c>bon dioxide seque/ration cr$its available to be allocat$ to all qualifi$ projects )9 ea* project tran*e = any applicable allocation ye> %all be increas$ by ! am\nt ( unallocat$ cr$its )9 su* tran*e = ! prec$+ ye>4 7,,ii7 ,unallocat$ cr$its ,= purposes ( ?is clause1 ! am\nt ( unallocat$ cr$its )9 a project tran*e = an applicable allocation ye> %all be equal to ! diff]5ce betwe5-- 7aa7 ! applicable maximum am\nt ( c>bon dioxide seque/ration cr$its available to be allocat$ to all qualifi$ projects )9 ! project tran*e = su* ye>1 & 7bb7 ! total am\nt ( c>bon dioxide seque/ration cr$its allocat$ to all qualifi$ projects )9 ! project tran*e = su* ye>4 7iii7 ,total am\nt provid$ to qualifi$ project = cr$it+ p]iod to be c\nt$ 9 allocation ye> ,= purposes ( det]m9+ ! total am\nt ( c>bon dioxide seque/ration cr$its allocat$ 9 an applicable allocation ye> "u ?is subp>agraph1 ! total am\nt allocat$ to a qualifi$ project = all cr$it+ ye>s dur+ ! cr$it+ p]iod %all be treat$ z a s+le allocation = ! allocation ye>4 7d7 ,c]tification 7#a7 ,c]tification process ,n lat] ?an #ij days aft] a c>bon dioxide seque/ration cr$it has be5 allocat$ to a qualifi$ project1 ! ,secret>y %all c]tify ! am\nt ( ! cr$it t has be5 allocat$ & t ! applicant has provid$ suffici5t docum5tation & qualify+ evid5ce to demon/rate t-- 7,a7 = a qualifi$ project describ$ 9 subsection 7f77#ad77;,b77i71 ! project w be con/ruct$ & op]at$ 9 accordance ) ! requirem5ts "u ?is section dur+ ! cr$it+ p]iod1 or 7,b7 = a qualifi$ project describ$ 9 clause 7ii7 or 7iii7 ( subsection 7f77#ad77;,b71 ! project w op]ate 9 accordance ) ! requirem5ts "u ?is section dur+ ! cr$it+ p]iod4 7#b7 ,docum5tation ,! ,secret>y1 aft] provid+ opportunity = public notice & comm5t1 %all e/abli% specifications = docum5tation requir$ "u p>agraph 7#a71 :i* %all include suffici5t evid5ce t-- 7,a7 ! applicant has e/abli%$ a plan or ent]$ into a b9d+ contract = disposal ( all qualifi$ c>bon dioxide1 7,b7 = a qualifi$ project describ$ 9 subsection 7f77#ad77;,b77i71 ! applicant has e/abli%$ a plan = timely con/ruction1 in/allation1 & op]ation ( c>bon capture equipm5t1 & 7,c7 = a qualifi$ project describ$ 9 clause 7ii7 or 7iii7 ( subsection 7f77#ad77;,b71 ! project has receiv$ assi/ance or has be5 allocat$ fund+ pursuant to ! requirem5ts "u su* clauses4 7#c7 ,qualify+ evid5ce ,= purposes ( p>agraph 7#a71 ! t]m qualify+ evid5ce means-- 7,a7 ! execution ( a b9d+ commitm5t 7:i* may be subject to cu/om>y clos+ conditions7 by an appropriate entity 7su* z a l5d] or ! bo>d ( directors ( ! entity t owns ! qualifi$ project7 to provide adequate f9anc+ = con/ruction ( ! project & in/allation ( ! necess>y c>bon capture equipm5t1 7,b7 ! execution ( a b9d+ commitm5t by ! applicant to execute a surety bond1 9 su* am\nt z is det]m9$ appropriate by ! ,secret>y1 n lat] ?an #b ye>s aft] ! date ! ,secret>y c]tifies ! qualifi$ project "u ?is subsection1 or 7,c7 = purposes ( an electric p[] project1 ! execution ( an au?orization-- 7i7 by ! appropriate ,/ate ag5cy or regulatory au?ority to p]mit recov]y ( ! co/s relat$ to con/ruction ( ! qualifi$ project & in/allation ( ! necess>y c>bon capture equipm5t ?r\gh imposition ( a sur*>ge on ! retail consum]s ( ! electric utility t owns su* project1 or 7ii7 by ! ,/ate legislature to p]mit recov]y ( ! co/s relat$ to con/ruction ( ! qualifi$ project & in/allation ( ! necess>y c>bon capture equipm5t ?r\gh imposition ( a sur*>ge on ! retail consum]s ( any electric utility t is requir$1 pursuant to ,/ate law1 to pur*ase "s or all ( ! net electrical output f ! qualifi$ project4 7#d7 ,revocation ( c]tification 7,a7 ,mat]ially inaccurate repres5tation ,! ,secret>y may refuse to issue a c]tification or may revoke a c]tification previ\sly issu$ to a qualifi$ project if ! ,secret>y det]m9es t ! applicant made a mat]ially inaccurate repres5tation ) respect to ! docum5tation or evid5ce submitt$ by ! applicant pursuant to ! requirem5ts "u ?is subsection4 7,b7 ,failure to beg9 con/ruction or place equipm5t 9 s]vice ,! ,secret>y %all revoke a c]tification previ\sly issu$ to a qualifi$ project if-- 7i7 con/ruction ( ! project has n begun )9 #b ye>s aft] ! date ( c]tification1 or 7ii7 subject to subp>agraph 7,c71 ! project has n plac$ 9 s]vice ! requir$ c>bon capture equipm5t-- 7,i7 9 ! case ( a project t propos$ to retr(it or upgrade its exi/+ c>bon capture equipm5t to increase c>bon capture capacity1 )9 #c ye>s aft] ! date ( c]tification1 or 7,,ii7 9 ! case ( a project t propos$ con/ruction ( a new facility1 )9 #e ye>s aft] ! date ( c]tification4 7,c7 ,ext5sions 7i7 ,fir/ ext5sion ,an applicant t has fail$ to place 9 s]vice ! requir$ c>bon capture equipm5t by ! applicable dates describ$ 9 subp>agraph 7,b77ii7 may receive an ext5sion ( up to #ahj days be=e revocation ( c]tification1 provid$-- 7,i7 t ! applicant reque/ an ext5sion n lat] ?an #ij days be=e ! applicable date "u subp>agraph 7,b77ii71 & 7,,ii7 b>r+ con/ruction disruptions beyond ! control ( ! applicant1 t ! applicant ma9ta9s a cont9u\s program ( con/ruction t involves cont9u+ physical "w ( a significant nature1 z det]m9$ by ! ,secret>y4 7ii7 ,second ext5sion ,an applicant t has fail$ to place 9 s]vice ! requir$ c>bon capture equipm5t be=e expiration ( an ext5sion grant$ "u clause 7i7 may receive an additional ext5sion ( up to #ahj days be=e revocation ( c]tification1 provid$-- 7,i7 t ! applicant reque/ ! additional ext5sion n lat] ?an #ij days be=e expiration ( ! ext5sion grant$ "u clause 7i71 & 7,,ii7 b>r+ con/ruction disruptions beyond ! control ( ! applicant1 t ! applicant ma9ta9s a cont9u\s program ( con/ruction t involves cont9u+ physical "w ( a significant nature1 z det]m9$ by ! ,secret>y4 7,d7 ,beg9 con/ruction ,= purposes ( subp>agraph 7,b77i71 con/ruction ( a qualifi$ project beg9s :5-- 7i7 physical "w ( a significant nature has begun1 or 7ii7 ! applicant pays or incurs #e p]c5t or m ( ! total co/ ( ! project4 7#e7 ,reallocation 7,a7 ,9 g5]al ,any c>bon dioxide seque/ration cr$its t h be5 allocat$ to a qualifi$ project t does n receive c]tification1 or has _h its c]tification revok$1 %all be resc9d$1 ) ! am\nt ( su* cr$its to be made available = reallocation pursuant to ! process describ$ "u subsection 7c7 & any additional requirem5ts z are det]m9$ appropriate by ! ,secret>y4 7,b7 ,recapture ( cr$it ,! ,secret>y %all provide = recaptur+ ! b5efit ( any cr$it allott$ to a qualifi$ project t does n receive c]tification1 or has _h its c]tification revok$4 7#f7 ,public disclosure & annual reports 7,a7 ,disclosure ( c]tification or revocation ,n lat] ?an #cj days aft] issu+ a c]tification or revocation "u ?is subsection1 ! ,secret>y %all publicly disclose-- 7i7 ! am\nt ( ! cr$it associat$ ) ! c]tification or revocation1 & 7ii7 a description ( ! qualifi$ project$ associat$ ) su* c]tification or revocation4 7,b7 ,annual report ,! ,secret>y %all annually publi% a report reg>d+ ! c>bon dioxide seque/ration cr$its all[$ "u ?is section1 includ+ ! am\nt ( cr$its t-- 7i7 h be5 c]tifi$ "u ?is subsection1 & 7ii7 are available = allocation dur+ ! next annual competitive bidd+ process )9 ea* project tran*e4 7e7 ,review & modification 7#a7 ,ext]nal review ,! ,secret>y1 ?r\gh su* me?ods z are det]m9$ appropriate1 %all e/abli% an ext]nal review ( ! annual competitive bidd+ process by a panel ( indep5d5t exp]ts to-- 7,a7 propose recomm5dations to-- 7i7 improve ! annual competitive bidd+ process1 7ii7 ensure ! transp>5cy1 effectiv5ess1 & effici5cy ( su* process1 & 7iii7 ensure t ! purposes describ$ 9 subsection 7b77#b7 are be+ a*iev$ ?r\gh su* process1 & 7,b7 = purposes ( a review describ$ 9 p>agraph 7#b77;,b71 evaluate ! impact ( ! annual competitive bidd+ process on increm5tal oil production & ,f$]al rev5ues4 7#b7 ,requirem5ts = ext]nal review ,! review process describ$ 9 p>agraph 7#a7 %all be complet$ n lat] ?an-- 7,a7 #ahj days prior to ! f\r? annual competitive bidd+ process aft] ! date ( ! enactm5t ( ?is section1 & 7,b7 e f\r ye>s aft] ! previ\s review "u ?is subsection4 7#c7 ,modification ,foll[+ any review complet$ "u ?is subsection1 ! ,secret>y1 9 consultation ) ! ,secret>y ( ,en]gy1 may modify ! annual competitive bidd+ process to adopt recomm5dations includ$ 9 ! review & ensure t ! purposes describ$ 9 subsection 7b77#b7 are be+ a*iev$ ?r\gh su* process1 includ+ adju/m5t ( ! m9imum & maximum doll> am\nts = ! propos$ doll> am\nt ( ! c>bon dioxide seque/ration cr$it p] metric ton ( qualifi$ c>bon dioxide1 z e/abli%$ "u subsection 7c77#a77;,d74 7#d7 ,rev5ue det]m9ations 7,a7 ,9 g5]al ,n lat] ?an #g ye>s aft] ! date ( ! enactm5t ( ?is section1 & e #d ye>s !reaft]1 ! ,secret>y1 9 consultation ) ! ,*airman ( ! ,securities & ,ex*ange ,commission & ! ,secret>y ( ,en]gy1 %all conduct a /udy to det]m9e-- 7i7 ! actual & project$ increase 9 ,f$]al rev5ues t is attributable to increases 9 oil production f enhanc$ oil recov]y me?ods us+ qualifi$ c>bon dioxide t is captur$ f qualifi$ projects1 & 7ii7 ! actual & project$ decrease 9 ,f$]al rev5ues t is attributable to ! cr$its all[$ "u ?is section4 7,b7 ,report to ,congress ,if ! ,secret>y det]m9es t ! project$ decrease 9 rev5ues describ$ 9 clause 7ii7 ( subp>agraph 7,a7 is great] ?an ! project$ increase 9 rev5ues describ$ 9 clause 7i7 ( su* subp>agraph1 ! ,secret>y %all submit to ,congress a report t provides a detail$ analysis ( ! projections & recomm5dations = fur!r legislative or adm9i/rative action4 7f7 ,def9itions ,9 ?is section3 7#a7 ,allocation ye> ,! t]m allocation ye> means ! ye> 9 :i* ! ,secret>y allocates c>bon dioxide seque/ration cr$its to qualifi$ projects4 7#b7 ,annual capture capacity ,! t]m annual capture capacity means ! av]age annual am\nt ( qualifi$ c>bon dioxide t is project$ to be captur$1 compress$1 & transport$ ov] ! cr$it+ p]iod4 7#c7 ,c>bon capture equipm5t ,! t]m c>bon capture equipm5t means equipm5t to capture & pressurize qualifi$ c>bon dioxide4 7#d7 ,cr$it+ p]iod ,! t]m cr$it+ p]iod means ! p]iod1 = up to #aj cr$it+ ye>s 7z describ$ 9 p>agraph 7#e771 subsequ5t to-- 7,a7 = a qualifi$ project describ$ 9 p>agraph 7#ad77;,b77i71 ! date on :i* ! c>bon capture equipm5t is plac$ into s]vice1 or 7,b7 = a qualifi$ project describ$ 9 clause 7ii7 or 7iii7 ( p>agraph 7#ad77;,b71 ! date on :i* ! project is c]tifi$ "u subsection 7d74 7#e7 ,cr$it+ ye> ,! t]m cr$it+ ye> means a ye> dur+ ! cr$it+ p]iod 9 :i* ! taxpay] may claim ! c>bon dioxide seque/ration cr$it4 7#f7 ,electric p[] project 7,a7 ,9 g5]al ,! t]m electric p[] project means a project1 includ+ a polyg5]ation project1 t-- 7i7 subject to subp>agraph 7,b71 uses coal or petroleum residuals z fe$/ock & has a po/-c>bon capture equival5t emissions rate t is equal to or less ?an #ghj p\nds p] megawatt h\r "u normal op]at+ conditions1 or 7ii7 subject to subp>agraph 7,b71 uses natural gas = great] ?an #ej p]c5t ( its fe$/ock & has a po/-c>bon capture equival5t emissions rate t is equal to or less ?an #djj p\nds p] megawatt h\r "u normal op]at+ conditions4 7,b7 ,emissions r$uctions ,beg9n+ ) ! annual competitive bidd+ process t occurs #e ye>s aft] ! initial annual competitive bidd+ process1 & e #e ye>s !reaft]1 ! applicable po/-c>bon capture equival5t emissions rate "u clauses 7i7 & 7ii7 ( subp>agraph 7,a7 %all be r$uc$ by #ae p]c5t f ! applicable rate = ! prec$+ #e-ye> p]iod1 provid$ t ! ,secret>y has det]m9$1 9 consultation ) ! ,secret>y ( ,en]gy1 t su* r$uction is bo? te*nologically & economically feasible4 7#g7 ,en]gy output ,! t]m en]gy output means ! total am\nt ( *emical & !rmal en]gy g5]at$ by ! conv]sion ( a fe$/ock4 7#h7 ,fir/-tran*e indu/rial project 7,a7 ,9 g5]al ,! t]m fir/-tran*e indu/rial project means an indu/rial project t employs #a or m ( ! foll[+ processes3 7i7 ,natural gas process+4 7ii7 ,f]m5tation4 7iii7 ,ammonia production4 7iv7 ,exi/+ gasification (-- 7,i7 coal1 7,,ii7 petroleum residuals1 7,,iii7 biomass1 or 7,,iv7 wa/e /reams4 7,b7 ,exi/+ gasification ,= purposes ( ?is p>agraph1 ! t]m exi/+ gasification means a gasification process us$ by an indu/rial project t has be5 plac$ 9 s]vice on or be=e ! date on :i* ! applicant submits a bid = an allocation ( c>bon dioxide seque/ration cr$its4 7#i7 ,indu/rial project ,! t]m indu/rial project means a project = :i* ! electrical p[] output is #ej p]c5t or less ( ! total en]gy output ( su* project4 7#aj7 ,polyg5]ation project ,! t]m polyg5]ation project means a project-- 7,a7 t produces bo? electricity & ano!r m>ketable product1 su* z *emicals or alt]native liquid or gase\s fuels1 7,b7 t is able to supply n less ?an #aej megawatts ( electricity = sale to a p[] di/ribution sy/em1 & 7,c7 = :i* great] ?an #ej p]c5t ( ! en]gy output f ! gasification process is provid$ to ! p[] block4 7#aa7 ,p[] block ,! t]m p[] block means a /eam turb9e electric g5]at+ unit or a gas turb9e comb9$ cycle unit 9 an electric p[] project 7includ+ a polyg5]ation project74 7#ab7 ,qualifi$ c>bon dioxide 7,a7 ,9 g5]al ,! t]m qualifi$ c>bon dioxide means c>bon dioxide t is-- 7i7 captur$ f a s\rce describ$ 9 subp>agraph 7,b71 7ii7 us$1 or contract$ = use1 by ! taxpay] z a t]ti>y injectant 9 a qualifi$ enhanc$ oil recov]y project1 & 7iii7 dispos$ (1 or contract$ = disposal1 by ! taxpay] 9 secure geological /orage4 7,b7 ,s\rces ( qualifi$ c>bon dioxide ,! s\rces describ$ 9 ?is subp>agraph are z foll[s3 7i7 ,electric p[] g5]ation4 7ii7 ,*emical production4 7iii7 ,gasification ( coal4 7iv7 ,petroleum residuals4 7v7 ,biomass & wa/e /reams4 7vi7 ,natural gas process+4 7vii7 ,f]m5tation4 7viii7 ,cl9k] production4 7ix7 ,fluidiz$ catalytic crack+ & o!r ref9]y processes4 7x7 ,/eel & alum9um production4 7xi7 ,m9+ & manufactur+4 7#ac7 ,qualifi$ enhanc$ oil recov]y project ,! t]m qualifi$ enhanc$ oil recov]y project means any project-- 7,a7 :i* involves ! use ( qualifi$ c>bon dioxide z a t]ti>y injectant 79 accordance ) s\nd eng9e]+ pr9ciples7 & :i* c reasonably be expect$ to result 9 m ?an an insignificant increase 9 ! am\nt ( crude oil :i* w ultimately be recov]$1 & 7,b7 :i* is locat$ )9 ! ,unit$ ,/ates 7)9 ! mean+ ( section #fch7a774 7#ad7 ,qualifi$ project 7,a7 ,9 g5]al ,! t]m qualifi$ project means a project-- 7i7 describ$ 9 subp>agraph 7,b71 & 7ii7 at :i* c>bon capture equipm5t is plac$ 9 s]vice to capture qualifi$ c>bon dioxide f #a or m s\rces describ$ 9 p>agraph 7#ab77;,b7 )9 a s+le project tran*e4 7,b7 ,categories ( projects ,! projects describ$ 9 ?is subp>agraph are z foll[s3 7i7 ,a project t captures qualifi$ c>bon dioxide us+ c>bon capture equipm5t t is plac$ 9 s]vice aft] ,decemb] #ca1 #bjad1 includ+ retr(its or upgrades ( exi/+ c>bon capture equipm5t t increases c>bon capture capacity4 7ii7 ,an electric p[] project t-- 7,i7 receiv$ assi/ance "u subtitle ,a ( title ,,iv ( ! ,en]gy ,policy ,act ( #bjje 7#db ,u4,s4,c4 #aeifa et seq471 & 7,,ii7 captures qualifi$ c>bon dioxide us+ c>bon capture equipm5t t 0 plac$ 9 s]vice be=e ,decemb] #ca1 #bjad4 7iii7 ,an electric p[] project or an indu/rial project t-- 7,i7 0 allocat$ fund+ by ! ,dep>tm5t ( ,en]gy = l>ge-scale c>bon capture & seque/ration projects f ! am\nt appropriat$ = fossil en]gy rese>* & developm5t "u title ,,iv ( division ,a ( ! ,am]ican ,recov]y & ,re9ve/m5t ,act ( #bjji 7,public ,law #aaa-e1 #abc ,/at4 #aci71 & 7,,ii7 captures qualifi$ c>bon dioxide us+ c>bon capture equipm5t t 0 plac$ 9 s]vice be=e ,decemb] #ca1 #bjad4 7#ae7 ,second-tran*e indu/rial project 7,a7 ,9 g5]al ,! t]m second-tran*e indu/rial project means an indu/rial project t employs #a or m ( ! foll[+ processes3 7i7 ,new-build gasification (-- 7,i7 coal1 7,,ii7 petroleum residuals1 7,,iii7 biomass1 or 7,,iv7 wa/e /reams4 7ii7 ,a ref9]y = production ( cem5t1 /eel1 or iron4 7iii7 ,hydrog5 production4 7,b7 ,new-build gasification ,= purposes ( ?is p>agraph1 ! t]m new-build gasification means a gasification process us$ by an indu/rial project t is plac$ 9 s]vice aft] ! date on :i* ! applicant submits a bid = an allocation ( c>bon dioxide seque/ration cr$its4 7#af7 ,secure geological /orage ,! t]m secure geological /orage has ! same mean+ giv5 to su* t]m "u section #de,q-#a7;d77#b74 7g7 ,d5ial ( d\ble b5efit ,a cr$it %all n be all[$ "u ?is section = any c>bon dioxide = :i* a cr$it is all[$ "u section #de,q-#a4 4 7c7 ,con=m+ am5dm5ts 7#a7 ,table ( sections ,! table ( sections = subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su* ,code is am5d$ by /rik+ ! item relat+ to section #de,q & ins]t+ ! foll[+ new items3 ,sec4 #de,q-#a4 ,/&>d c>bon dioxide seque/ration cr$it4,sec4 #de,q-#b4 ,competitively bid c>bon dioxide seque/ration cr$it4 4 7#b7 ,g5]al bus9ess cr$it ,section #ch7;b7 ( su* ,code is am5d$-- 7,a7 by /rik+ p>agraph 7#cd71 7,b7 by r$esignat+ p>agraphs 7#ce7 & 7#cf7 z p>agraphs 7#cf7 & 7#cg71 & 7,c7 by ins]t+ aft] p>agraph 7#cc7 ! foll[+ new p>agraphs3 7#cd7 ! /&>d c>bon dioxide seque/ration cr$it det]m9$ "u section #de,q-#a7;a71 7#ce7 ! competitively bid c>bon dioxide seque/ration cr$it det]m9$ "u section #de,q-#b7;a71 4 7#c7 ,d5ial ( d\ble b5efit ,section #de,q-#a7;d7 ( su* ,code is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#h7 ,d5ial ( d\ble b5efit ,a cr$it %all n be all[$ "u ?is section = any c>bon dioxide = :i* a cr$it is all[$ "u section #de,q-#b4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to c>bon dioxide captur$ aft] ,decemb] #ca1 #bjad4