,i #aagth ,,congress #ast ,session ,h4 ,r4 #dhia ,,in ,,the ,,house ,,of ,,representatives ,july #cj1 #bjba ,mr4 ,mc,kinley introduced the following bill2 which was referred to the ,committee on ,energy and ,commerce1 and in addition to the ,committee on ,science1 ,space1 and ,technology1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to require the ,secretary of ,energy to establish a net-negative carbon dioxide baseload power development and commercialization program1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,net-,negative ,carbon ,dioxide ,baseload ,power ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,electricity1 like air1 food1 and water1 is one of life's necessities4 7#b7 ,the ,department of ,energy properly concluded in its ,january #bjag report to ,congress1 titled ,valuation of ,energy ,security for the ,united ,states1 the following3 7,a7 ,electricity is essential for supporting and sustaining nearly every sector of the modern economy ranging from industrial output and services to national security44 7,b7 ,a secure1 reliable electric power sector is necessary for economic growth1 public safety1 societal well-being and proper functioning of critical infrastructure1 national security defense1 lifeline networks1 transportation communications1 water and sewer44 7,c7 ,without access to reliable electricity much of the economy and all electricity-enabled critical infrastructure are at risk44 7#c7 ,the service and reliability of the electric grid of the ,united ,states depends significantly on baseload coal-fueled power plants4 7#d7 ,communities across the ,nation are dependent upon1 for electricity supply and their economic well-being1 coal-fueled power plants and a healthy coal supply chain industry4 7#e7 ,power plants1 co-fueled by coal and biomass1 that incorporate carbon capture1 utilization1 and storage1 have net-negative carbon dioxide emissions4 7#f7 ,baseload power plants1 co-fueled by coal and biomass1 that incorporate carbon capture can provide a steady supply of carbon dioxide for the manufacture of carbon-based chemicals1 carbon-based building materials1 and other value-added products which can use carbon dioxide4 7#g7 ,the ,federal ,government is likely to adopt climate change policies that abruptly drive reduction in greenhouse gas emissions4 ,as a result1 the ,federal ,government should also incentivize the commercialization of net-negative carbon dioxide power plant technology to achieve emissions reduction targets1 improve the reliability of the ,united ,states electricity grid1 and protect coal communities from devastating economic loss4 7#h7 ,the ,united ,states should lead the world in developing #bast century net-negative baseload power technologies that will allow developing countries to continue to use their domestic energy resources1 meet climate goals1 and provide a steady source of carbon dioxide for carbon-based products that contribute to economic growth and social development4 #c4 ,establishment of a net-negative carbon dioxide baseload development and commercialization power program 7a7 ,in general ,the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afbia et seq47 is amended by adding at the end of subtitle ,f of title ,,ix1 the following3 #igj4 ,net-negative carbon dioxide baseload power development and commercialization program 7a7 ,definitions 7#a7 ,construction phase ,the term construction phase means1 with respect to an eligible project1 the period between a project's final investment decision and commencement of commercial operations4 7#b7 ,eligible project ,the term eligible project means a project to design1 develop1 construct1 and operate a combustion- or gasification-based baseload electricity generating project1 which meets the criteria published under subsection 7c7 and1 when operating1 has net-negative carbon dioxide emissions4 7#c7 ,final investment decision ,the term final investment decision means1 with respect to an eligible project1 the time in the project planning process when the decision to make major financial commitments is taken4 7#d7 ,fuel supply chain ,the term fuel supply chain means1 with respect to an eligible project1 the principal industrial activities associated with the production1 processing1 storage1 and transportation of fuel to the eligible project4 7#e7 ,net-negative carbon dioxide emissions ,the term net-negative carbon dioxide emissions means that the annual amount of carbon dioxide emitted by an eligible project1 including the project's fuel supply chain1 conversion of fuel to electricity and co-products1 carbon capture and storage1 and other directly associated onsite activities1 less the amount of carbon dioxide permanently stored by the project including the project's fuel supply chain1 conversion of fuel to electricity and co-products1 carbon capture and storage1 and other directly associated onsite activities1 is a negative amount4 7#f7 ,non-routine event ,the term non-routine event means1 with respect to a coal-fueled power plant1 an event1 typically not planned1 that interrupts routine operation1 including equipment failure1 fuel supply chain disruption1 and pipeline interruption4 7#g7 ,operations phase ,the term operations phase means1 with respect to an eligible project1 the period between commencement of commercial operations and permanent cessation of commercial operations4 7#h7 ,project concept study phase ,the term project concept study phase means1 with respect to an eligible project1 a study conducted prior to the project development phase1 to develop-- 7,a7 the basic project concept2 7,b7 high-level project economics2 7,c7 a description of the technology or technologies that will be used for the eligible project2 7,d7 a compilation of the required permits and plan for securing them2 7,e7 project partners2 and 7,f7 project plans1 including schedules4 7#i7 ,project development phase ,the term project development phase means1 with respect to an eligible project1 the period between completion of the project concept study and the final investment decision4 ,the project development phase includes1 with respect to an eligible project-- 7,a7 engineering design work2 7,b7 legal work2 7,c7 supplemental surface and subsurface rights acquisition2 7,d7 site-specific geologic characterization work2 7,e7 permitting2 7,f7 stakeholder engagement2 and 7,g7 other activities necessary to support a successful final investment decision on the eligible project4 7#aj7 ,routine operation ,the term routine operation means1 with respect to a coal-fueled power plant1 typically expected operation of such coal-fueled power plant1 including start-ups1 regular operations1 planned shutdowns1 and maintenance4 7b7 ,establishment 7#a7 ,in general ,the ,secretary shall establish a net-negative carbon dioxide baseload power development and commercialization program to-- 7,a7 facilitate the redevelopment of existing coal-fueled power plant sites with technology that enables baseload coal- and biomass-fueled power generation that has net-negative carbon dioxide emissions2 and 7,b7 lessen the negative economic impact from climate change policies on communities dependent upon coal-fueled power plants4 7#b7 ,eligible projects ,in carrying out the program established under paragraph 7#a71 the ,secretary shall establish a competitive1 merit-reviewed process1 with multiple closing dates for applications that are not more than quarterly and not less than semiannually1 to provide financial assistance to projects that will redevelop existing coal-fueled power plant sites to supply net-negative baseload power4 7c7 ,criteria ,the ,secretary shall publish criteria in the ,federal ,register for eligible projects1 including that-- 7#a7 eligible projects shall-- 7,a7 involve redevelopment of existing coal-fueled power plants at the same general site2 7,b7 incorporate carbon capture1 utilization1 and storage technology2 7,c7 provide baseload power generation2 7,d7 use at least #gj percent coal1 based on energy content1 as fuel during the operations phase2 and 7,e7 include meaningful participation by the owner of the existing coal-fueled power plant asset to be redeveloped at the initiation of the concept study phase2 7#b7 eligible projects may-- 7,a7 on an annual basis1 use up to #cj percent biomass or other non-coal fuels combined1 based on energy content2 7,b7 buy verifiable carbon dioxide offsets to offset carbon dioxide emissions from non-routine events2 7,c7 permanently store carbon dioxide onsite or offsite2 7,d7 transport captured carbon dioxide via an onsite or offsite dedicate pipeline1 or shared pipeline1 to permanent storage2 7,e7 co-produce carbon-free fuel1 including hydrogen or ammonia1 that is used as fuel onsite or offsite2 and 7,f7 incorporate direct air capture technology1 provided that the captured carbon dioxide is combined with the primary stream of carbon dioxide captured at the plant2 and 7#c7 eligible projects may not buy carbon dioxide offsets for carbon dioxide emissions from routine operations1 other than offsets directly gained through the project's fuel supply chain4 7d7 ,program implementation ,in implementing the program established under subsection 7b71 the ,secretary shall-- 7#a7 make grants for project concept studies2 7#b7 provide an opportunity for persons who have successfully completed a project concept study using a grant provided pursuant to paragraph 7#a7 to enter into cooperative agreements for continuing ,federal financial assistance for the subsequent phases of an eligible project2 7#c7 structure the program to allow grant recipients for eligible projects to move without time lags between the project concept study phase and project development phase2 7#d7 recognize eligible projects as projects meeting the requirements of section #agjc7;a77#a72 7#e7 during the project development phase1 based on satisfactory progress towards a final investment decision and financial need1 make one or more conditional commitments to one or more incentives that will increase the likelihood of commercial financing1 construction1 and successful operation of the eligible project1 including-- 7,a7 construction cost-sharing1 including acquisition of additional surface and subsurface rights2 7,b7 start-up cost-sharing2 7,c7 a financially backed completion guarantee2 7,d7 a financially backed performance guarantee2 7,e7 financially backed operating contracts for differences2 7,f7 a loan guarantee2 7,g7 indemnification for third-party claims against the eligible project and its asset owners1 which are associated with a carbon dioxide storage site that has been certified as safely closed by the ,state with jurisdiction over the associated injection wells1 as long as ,federal indemnification does not substitute for indemnification or insurance programs reasonably available from third-party insurers2 and 7,h7 financial reserves or fees to support eligible projects acquiring insurance2 7#f7 ensure close coordination and substantial information sharing between the offices of the ,department that are administering such program and title ,,xvii of this ,act2 7#g7 assess the economics1 performance1 and risks associated with each eligible project to provide reasonable assurances that the sum of incentives provided by the ,department-- 7,a7 are adequate to give eligible projects an opportunity to attract commercial financing2 and 7,b7 do not over incentivize the eligible project2 7#h7 establish one or more trust funds to hold the ,federal funds associated with the program2 and 7#i7 deposit amounts made available to carry out the program into the trust funds established pursuant to paragraph 7#h7 into the program trust within #ij days of receipt4 7e7 ,expenditures ,amounts in the trust funds established pursuant to subsection 7d77#h7 shall be available1 without further appropriation1 to carry out the program established under subsection 7b74 7f7 ,cost-,sharing 7#a7 ,project concept studies ,the ,secretary may provide grants of up to #e1jjj1jjj for project concept studies per eligible project4 7#b7 ,cost sharing for project development phase ,the ,secretary shall require successful applicants of eligible projects to provide #aj percent non-,federal cost-share for costs incurred for activities during the project development phase4 7#c7 ,cost sharing for construction phase ,the ,secretary shall determine the non-,federal cost-sharing for the construction phase of each eligible project based on project need1 and the amount of ,federal construction-related incentives provided1 under this program and any construction-related ,department loan guarantees1 shall not exceed the amount specified in section #agjb7;c74 7#d7 ,loan guarantee program fees ,fees paid pursuant to section #agjb7;h7 are considered an allowable expense of funds made available for the program established under subsection 7b74 7#e7 ,tax credits ,federal tax credits shall not count against the maximum non-,federal cost-sharing provisions of this section4 7g7 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary for grants for project concept studies1 and for administrative expenses for the program established under subsection 7b71 #cjj1jjj1jjj to remain available until expended4 4 7b7 ,table of contents ,the table of contents for the ,energy ,policy ,act of #bjje is amended by adding after the item relating to section #ifi;,d the following3 ,sec4 #igj4 ,net-negative carbon dioxide baseload power development and commercialization program4 4