,,ii #aagth ,,congress #ast ,session ,s4 #gii ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #ag 7legislative day1 ,march #af71 #bjba ,mr4 ,coons 7for himself1 ,mr4 ,cassidy1 ,ms4 ,smith1 ,mr4 ,hoeven1 ,mr4 ,whitehouse1 ,mrs4 ,capito1 ,ms4 ,duckworth1 ,mr4 ,braun1 ,mr4 ,tester1 ,ms4 ,murkowski1 and ,mr4 ,manchin7 introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to require the ,secretary of ,energy to establish programs for carbon dioxide capture1 transport1 utilization1 and storage1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,storing ,,co#b ,and ,lowering ,emissions ,act or the ,,scale ,act4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,findings4 ,,title ,i--,utilization of carbon oxides ,sec4 #aja4 ,carbon utilization program4 ,,title ,,ii--,transportation of captured carbon ,sec4 #bja4 ,carbon capture technology program4 ,sec4 #bjb4 ,carbon dioxide transportation infrastructure finance and innovation4 ,,title ,,iii--,geologic storage of captured carbon ,sec4 #cja4 ,carbon storage validation and testing4 ,sec4 #cjb4 ,secure geologic storage permitting4 #b4 ,findings ,congress finds that-- 7#a7 the industrial sector is integral to the economy of the ,united ,states-- 7,a7 providing millions of jobs and essential products2 and 7,b7 demonstrating global leadership in manufacturing and innovation2 7#b7 carbon capture and storage technologies are necessary for reducing hard-to-abate emissions from the industrial sector1 which emits nearly #be percent of carbon dioxide emissions in the ,united ,states2 7#c7 carbon removal and storage technologies1 including direct air capture1 must be deployed at large-scale in the coming decades to remove carbon dioxide directly from the atmosphere2 7#d7 large-scale deployment of carbon capture1 removal1 utilization1 transport1 and storage-- 7,a7 is critical for achieving mid-century climate goals2 and 7,b7 will drive regional economic development1 technological innovation1 and high-wage employment2 7#e7 carbon capture1 removal1 and utilization technologies require a backbone system of shared carbon dioxide transport and storage infrastructure to enable large-scale deployment1 realize economies of scale1 and create an interconnected carbon management market2 7#f7 carbon dioxide transport infrastructure and permanent geological storage are proven and safe technologies with existing ,federal and ,state regulatory frameworks2 7#g7 carbon dioxide transport and storage infrastructure share similar barriers to deployment previously faced by other types of critical national infrastructure1 such as high capital costs and chicken-and-egg challenges1 that require ,federal and ,state support1 in combination with private investment1 to be overcome2 and 7#h7 each ,state should take into consideration1 with respect to new carbon dioxide transportation infrastructure-- 7,a7 qualifying the infrastructure as pollution control devices under applicable laws 7including regulations7 of the ,state2 and 7,b7 establishing a waiver of ad valorem and property taxes for the infrastructure for a period of not less than #aj years4 ,i ,utilization of carbon oxides #aja4 ,carbon utilization program ,section #ifi;,a of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afbih;a7 is amended-- 7#a7 in subsection 7a7-- 7,a7 by redesignating paragraphs 7#c7 and 7#d7 as paragraphs 7#d7 and 7#e71 respectively2 and 7,b7 by inserting after paragraph 7#b7 the following3 7#c7 to develop or obtain1 in coordination with other applicable ,federal agencies and standard-setting organizations1 standards and certifications1 as appropriate1 to facilitate the commercialization of the products and technologies described in paragraph 7#b72 2 7#b7 in subsection 7b7-- 7,a7 by redesignating paragraph 7#b7 as paragraph 7#c72 7,b7 by inserting after paragraph 7#a7 the following3 7#b7 ,grant program 7,a7 ,in general ,not later than #a year after the date of enactment of the ,storing ,,co#b ,and ,lowering ,emissions ,act1 the ,secretary shall establish a program to provide grants to eligible entities to use in accordance with subparagraph 7,d74 7,b7 ,eligible entities ,to be eligible to receive a grant under this paragraph1 an entity shall be-- 7i7 a ,state2 7ii7 a unit of local government2 or 7iii7 a public utility or agency4 7,c7 ,applications ,eligible entities desiring a grant under this paragraph shall submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary determines to be appropriate4 7,d7 ,use of funds ,an eligible entity shall use a grant received under this paragraph to procure and use commercial or industrial products that-- 7i7 use or are derived from anthropogenic carbon oxides2 and 7ii7 demonstrate significant net reductions in lifecycle greenhouse gas emissions compared to incumbent technologies1 processes1 and products4 2 and 7,c7 in paragraph 7#c7 7as so redesignated71 by striking paragraph 7#a7 and inserting this subsection2 and 7#c7 in subsection 7d71 by striking paragraphs 7#a7 through 7#e7 and inserting the following3 7#a7 #fd1jjj1jjj for fiscal year #bjba2 7#b7 #fe1bej1jjj for fiscal year #bjbb2 7#c7 #ff1efb1ejj for fiscal year #bjbc2 7#d7 #fg1idj1fbe for fiscal year #bjbd2 and 7#e7 #fi1chg1fef for fiscal year #bjbe4 4 ,,ii ,transportation of captured carbon #bja4 ,carbon capture technology program ,section #ifb of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afbib7 is amended-- 7#a7 in subsection 7b77#b7-- 7,a7 in subparagraph 7,c71 by striking and at the end2 7,b7 in subparagraph 7,d71 by striking program4 and inserting program for carbon capture technologies2 and2 and 7,c7 by adding at the end the following3 7,e7 a front-end engineering and design program for carbon dioxide transport infrastructure necessary to enable deployment of carbon capture1 utilization1 and storage technologies4 2 and 7#b7 in subsection 7d77#a7-- 7,a7 in subparagraph 7,c77ii71 by striking and at the end2 7,b7 in subparagraph 7,d71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7,e7 for activities under the front-end engineering and design program described in subsection 7b77#b77;,e71 #bj1jjj1jjj for each of fiscal years #bjbb through #bjbe4 4 #bjb4 ,carbon dioxide transportation infrastructure finance and innovation 7a7 ,in general ,title ,,ix of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afaha et seq47 is amended by adding at the end the following3 ,j ,carbon dioxide transportation infrastructure finance and innovation #iii;,a4 ,definitions ,in this subtitle3 7#a7 ,,cifia program ,the term ,,cifia program means the carbon dioxide transportation infrastructure finance and innovation program established under section #iii;,b7a74 7#b7 ,common carrier ,the term common carrier means a transportation infrastructure operator or owner that-- 7,a7 publishes a publicly available tariff containing the just and reasonable rates1 terms1 and conditions of nondiscriminatory service2 and 7,b7 holds itself out to provide transportation services to the public for a fee4 7#c7 ,contingent commitment ,the term contingent commitment means a commitment to obligate funds from future available budget authority that is-- 7,a7 contingent on those funds being made available in law at a future date2 and 7,b7 not an obligation of the ,federal ,government4 7#d7 ,eligible project costs ,the term eligible project costs means amounts substantially all of which are paid by1 or for the account of1 an obligor in connection with a project1 including-- 7,a7 the cost of-- 7i7 development-phase activities1 including planning1 feasibility analysis1 revenue forecasting1 environmental review1 permitting1 preliminary engineering and design work1 and other preconstruction activities2 7ii7 construction1 reconstruction1 rehabilitation1 replacement1 and acquisition of real property 7including land relating to the project and improvements to land71 environmental mitigation1 construction contingencies1 and acquisition and installation of equipment 7including labor72 and 7iii7 capitalized interest necessary to meet market requirements1 reasonably required reserve funds1 capital issuance expenses1 and other carrying costs during construction2 and 7,b7 transaction costs associated with financing the project1 including-- 7i7 the cost of legal counsel and technical consultants2 and 7ii7 any subsidy amount paid in accordance with section #iii;,b7c77#c77;,b77ii7 or section #iii;,c7b77#f77;,b77ii74 7#e7 ,federal credit instrument ,the term ,federal credit instrument means a secured loan or loan guarantee authorized to be provided under the ,,cifia program with respect to a project4 7#f7 ,lender ,the term lender means any non-,federal qualified institutional buyer 7as defined in section #bcj4add;,a7a7 of title #ag1 ,code of ,federal ,regulations 7or a successor regulation71 commonly known as ,rule #add;,a7a7 of the ,securities and ,exchange ,commission and issued under the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #gg;a et seq4771 including-- 7,a7 a qualified retirement plan 7as defined in section #digd7;c7 of the ,internal ,revenue ,code of #aihf7 that is a qualified institutional buyer2 and 7,b7 a governmental plan 7as defined in section #dad7;d7 of the ,internal ,revenue ,code of #aihf7 that is a qualified institutional buyer4 7#g7 ,letter of interest ,the term letter of interest means a letter submitted by a potential applicant prior to an application for credit assistance in a format prescribed by the ,secretary on the website of the ,,cifia program that-- 7,a7 describes the project and the location1 purpose1 and cost of the project2 7,b7 outlines the proposed financial plan1 including the requested credit and grant assistance and the proposed obligor2 7,c7 provides a status of environmental review2 and 7,d7 provides information regarding satisfaction of other eligibility requirements of the ,,cifia program4 7#h7 ,loan guarantee ,the term loan guarantee means any guarantee or other pledge by the ,secretary to pay all or part of the principal of1 and interest on1 a loan or other debt obligation issued by an obligor and funded by a lender4 7#i7 ,master credit agreement ,the term master credit agreement means a conditional agreement that-- 7,a7 is for the purpose of extending credit assistance for-- 7i7 a project of high priority under section #iii;,b7c77#c77;,a72 or 7ii7 a project covered under section #iii;,b7c77#c77;,b72 7,b7 does not provide for a current obligation of ,federal funds2 and 7,c7 would-- 7i7 make a contingent commitment of a ,federal credit instrument or grant at a future date1 subject to-- 7,i7 the availability of future funds being made available to carry out the ,,cifia program2 and 7,,ii7 the satisfaction of all conditions for the provision of credit assistance under the ,,cifia program1 including section #iii;,c7b72 7ii7 establish the maximum amounts and general terms and conditions of the ,federal credit instruments or grants2 7iii7 identify the #a or more revenue sources that will secure the repayment of the ,federal credit instruments2 7iv7 provide for the obligation of funds for the ,federal credit instruments or grants after all requirements have been met for the projects subject to the agreement1 including-- 7,i7 compliance with all applicable requirements specified under the ,,cifia program1 including sections #iii;,b7d7 and #iii;,c7b77#a72 and 7,,ii7 the availability of funds to carry out the ,,cifia program2 and 7v7 require that contingent commitments shall result in a financial close and obligation of credit or grant assistance by not later than #d years after the date of entry into the agreement or release of the commitment1 as applicable1 unless otherwise extended by the ,secretary4 7#aj7 ,obligor ,the term obligor means a corporation1 partnership1 joint venture1 trust1 governmental entity1 agency1 or instrumentality1 or other entity that is primarily liable for payment of the principal of1 or interest on1 a ,federal credit instrument4 7#aa7 ,produced in the ,united ,states ,the term produced in the ,united ,states1 with respect to iron and steel1 means that all manufacturing processes for the iron and steel1 including the application of any coating1 occurs within the ,united ,states4 7#ab7 ,project ,the term project means a project for common carrier carbon dioxide transportation infrastructure or associated equipment1 including pipeline1 shipping1 rail1 or other transportation infrastructure and associated equipment1 that will transport or handle carbon dioxide captured from anthropogenic sources or ambient air1 as the ,secretary determines to be appropriate4 7#ac7 ,project obligation ,the term project obligation means any note1 bond1 debenture1 or other debt obligation issued by an obligor in connection with the financing of a project1 other than a ,federal credit instrument4 7#ad7 ,secured loan ,the term secured loan means a direct loan or other debt obligation issued by an obligor and funded by the ,secretary in connection with the financing of a project under section #iii;,c4 7#ae7 ,subsidy amount ,the term subsidy amount means the amount of budget authority sufficient to cover the estimated long-term cost to the ,federal ,government of a ,federal credit instrument-- 7,a7 calculated on a net present value basis2 and 7,b7 excluding administrative costs and any incidental effects on governmental receipts or outlays in accordance with the ,federal ,credit ,reform ,act of #aiij 7#b ,u4,s4,c4 #ffa et seq474 7#af7 ,substantial completion ,the term substantial completion1 with respect to a project1 means the date-- 7,a7 on which the project commences transportation of carbon dioxide2 or 7,b7 of a comparable event to the event described in subparagraph 7,a71 as determined by the ,secretary and specified in the project credit agreement4 #iii;,b4 ,determination of eligibility and project selection 7a7 ,establishment of program ,the ,secretary shall establish and carry out a carbon dioxide transportation infrastructure finance and innovation program1 under which the ,secretary shall provide for eligible projects in accordance with this subtitle-- 7#a7 a ,federal credit instrument under section #iii;,c2 7#b7 a grant under section #iii;,d2 or 7#c7 both a ,federal credit instrument and a grant4 7b7 ,eligibility 7#a7 ,in general ,a project shall be eligible to receive a ,federal credit instrument or a grant under the ,,cifia program if-- 7,a7 the entity proposing to carry out the project submits a letter of interest prior to submission of an application under paragraph 7#c7 for the project2 and 7,b7 the project meets the criteria described in this subsection4 7#b7 ,creditworthiness 7,a7 ,in general ,each project and obligor that receives a ,federal credit instrument or a grant under the ,,cifia program shall be creditworthy1 such that there exists a reasonable prospect of repayment of the principal and interest on the ,federal credit instrument1 as determined by the ,secretary under subparagraph 7,b74 7,b7 ,reasonable prospect of repayment ,the ,secretary shall base a determination of whether there is a reasonable prospect of repayment under subparagraph 7,a7 on a comprehensive evaluation of whether the obligor has a reasonable prospect of repaying the ,federal credit instrument for the eligible project1 including evaluation of-- 7i7 the strength of the contractual terms of an eligible project 7if available for the applicable market segment72 7ii7 the forecast of noncontractual cash flows supported by market projections from reputable sources1 as determined by the ,secretary1 and cash sweeps or other structural enhancements2 7iii7 the projected financial strength of the obligor-- 7,i7 at the time of loan close2 and 7,,ii7 throughout the loan term1 including after the project is completed2 7iv7 the financial strength of the investors and strategic partners of the obligor1 if applicable2 and 7v7 other financial metrics and analyses that are relied on by the private lending community and nationally recognized credit rating agencies1 as determined appropriate by the ,secretary4 7#c7 ,applications ,to be eligible for assistance under the ,,cifia program1 an obligor shall submit to the ,secretary a project application at such time1 in such manner1 and containing such information as the ,secretary determines to be appropriate4 7#d7 ,eligible project costs ,a project under the ,,cifia program shall have eligible project costs that are reasonably anticipated to equal or exceed #ajj1jjj1jjj4 7#e7 ,revenue sources ,the applicable ,federal credit instrument shall be repayable1 in whole or in part1 from-- 7,a7 user fees2 7,b7 payments owing to the obligor under a public-private partnership2 or 7,c7 other revenue sources that also secure or fund the project obligations4 7#f7 ,obligor will be identified later ,a ,state1 local government1 agency1 or instrumentality of a ,state or local government1 or a public authority1 may submit to the ,secretary an application under paragraph 7#c71 under which a private party to a public-private partnership will be-- 7,a7 the obligor2 and 7,b7 identified at a later date through completion of a procurement and selection of the private party4 7#g7 ,beneficial effects ,the ,secretary shall determine that financial assistance for each project under the ,,cifia program will-- 7,a7 attract public or private investment for the project2 7,b7 enable the project to proceed at an earlier date than the project would otherwise be able to proceed or reduce the lifecycle costs 7including debt service costs7 of the project2 or 7,c7 enable the transportation of carbon dioxide captured from anthropogenic sources or ambient air4 7#h7 ,project readiness ,to be eligible for assistance under the ,,cifia program1 the applicant shall demonstrate a reasonable expectation that the contracting process for construction of the project can commence by not later than #ij days after the date on which a ,federal credit instrument or grant is obligated for the project under the ,,cifia program4 7c7 ,selection among eligible projects 7#a7 ,establishment of application process ,the ,secretary shall establish an application process under which projects that are eligible to receive assistance under subsection 7b7 may-- 7,a7 receive credit assistance on terms acceptable to the ,secretary1 if adequate funds are available 7including any funds provided on behalf of an eligible project under paragraph 7#c77;,b77ii77 to cover the subsidy amount associated with the ,federal credit instrument2 and 7,b7 receive grants under section #iii;,d if-- 7i7 adequate funds are available to cover the amount of the grant2 and 7ii7 the ,secretary determines that the project is eligible under subsection 7b7 of that section4 7#b7 ,priority ,in selecting projects to receive credit assistance under subsection 7b71 the ,secretary shall give priority to projects that-- 7,a7 are large-capacity1 common carrier infrastructure2 7,b7 have demonstrated demand for use of the infrastructure by associated projects that capture carbon dioxide from anthropogenic sources or ambient air2 7,c7 enable geographical diversity in associated projects that capture carbon dioxide from anthropogenic sources or ambient air1 with the goal of enabling projects in all major carbon dioxide-emitting regions of the ,united ,states2 and 7,d7 are sited within1 or adjacent to1 existing pipeline or other linear infrastructure corridors1 in a manner that minimizes environmental disturbance and other siting concerns4 7#c7 ,master credit agreements 7,a7 ,priority projects ,the ,secretary may enter into a master credit agreement for a project that the ,secretary determines-- 7i7 will likely be eligible for credit assistance under subsection 7b71 on obtaining-- 7,i7 additional commitments from associated carbon capture projects to use the project2 or 7,,ii7 all necessary permits and approvals2 and 7ii7 is a project of high priority1 as determined in accordance with the criteria described in paragraph 7#b74 7,b7 ,adequate funding not available ,if the ,secretary fully obligates funding to eligible projects for a fiscal year and adequate funding is not available to fund a ,federal credit instrument1 a project sponsor 7including a unit of ,state or local government7 of an eligible project may elect-- 7i7 7,i7 to enter into a master credit agreement in lieu of the ,federal credit instrument2 and 7,,ii7 to wait to execute a ,federal credit instrument until the fiscal year for which additional funds are available to receive credit assistance2 or 7ii7 if the lack of adequate funding is solely with respect to amounts available for the subsidy amount1 to pay the subsidy amount to fund the ,federal credit instrument4 7d7 ,federal requirements 7#a7 ,in general ,nothing in this subtitle supersedes the applicability of any other requirement under ,federal law 7including regulations74 7#b7 ,,nepa ,federal credit assistance may only be provided under this subtitle for a project that has received an environmental categorical exclusion1 a finding of no significant impact1 or a record of decision under the ,national ,environmental ,policy ,act of #aifi 7#db ,u4,s4,c4 #dcba et seq474 7e7 ,use of ,american iron1 steel1 and manufactured goods 7#a7 ,in general ,except as provided in paragraph 7#b71 no ,federal credit instrument or grant provided under the ,,cifia program shall be made available for a project unless all iron1 steel1 and manufactured goods used in the project are produced in the ,united ,states4 7#b7 ,exceptions ,paragraph 7#a7 shall not apply in any case or category of cases with respect to which the ,secretary determines that-- 7,a7 the application would be inconsistent with the public interest2 7,b7 iron1 steel1 or a relevant manufactured good is not produced in the ,united ,states in sufficient and reasonably available quantity1 or of a satisfactory quality2 or 7,c7 the inclusion of iron1 steel1 or a manufactured good produced in the ,united ,states will increase the cost of the overall project by more than #be percent4 7#c7 ,waivers ,if the ,secretary receives a request for a waiver under this subsection1 the ,secretary shall-- 7,a7 make available to the public a copy of the request1 together with any information available to the ,secretary concerning the request-- 7i7 on an informal basis2 and 7ii7 by electronic means1 including on the official public website of the ,department2 7,b7 allow for informal public comment relating to the request for not fewer than #ae days before making a determination with respect to the request2 and 7,c7 approve or disapprove the request by not later than the date that is #abj days after the date of receipt of the request4 7#d7 ,applicability ,this subsection shall be applied in accordance with any applicable obligations of the ,united ,states under international agreements4 7f7 ,prevailing rate of wage 7#a7 ,in general ,the ,secretary shall ensure that each laborer and mechanic employed by a contractor or subcontractor for a project financed1 in whole or in part1 by a ,federal credit instrument or grant provided under the ,,cifia program shall be paid wages at rates not less than those prevailing on the same type of work on similar construction projects in the applicable locality1 as determined by the ,secretary of ,labor under subchapter ,,iv of chapter #ca of part ,a of subtitle ,,ii of title #dj1 ,united ,states ,code 7commonly referred to as the ,davis-,bacon ,act74 7#b7 ,authority of ,secretary of ,labor ,with respect to the labor standards described in paragraph 7#a71 the ,secretary of ,labor shall have the authority and functions described in ,reorganization ,plan ,numbered #ad of #aiej 7#fd ,stat4 #abfg2 #e ,u4,s4,c4 ,app47 and section #cade of title #dj1 ,united ,states ,code4 7g7 ,application processing procedures 7#a7 ,notice of complete application ,not later than #cj days after the date of receipt of an application under this section1 the ,secretary shall provide to the applicant a written notice describing whether-- 7,a7 the application is complete2 or 7,b7 additional information or materials are needed to complete the application4 7#b7 ,approval or denial of application ,not later than #fj days after the date of issuance of a written notice under paragraph 7#a71 the ,secretary shall provide to the applicant a written notice informing the applicant whether the ,secretary has approved or disapproved the application4 7h7 ,development-,phase activities ,any ,federal credit instrument provided under the ,,cifia program may be used to finance up to #ajj percent of the cost of development-phase activities1 as described in section #iii;,a7#d77;,a74 #iii;,c4 ,secured loans 7a7 ,agreements 7#a7 ,in general ,subject to paragraph 7#b71 the ,secretary may enter into agreements with #a or more obligors to make secured loans1 the proceeds of which shall be used-- 7,a7 to finance eligible project costs of any project selected under section #iii;,b2 7,b7 to refinance interim construction financing of eligible project costs of any project selected under section #iii;,b2 or 7,c7 to refinance long-term project obligations or ,federal credit instruments1 if the refinancing provides additional funding capacity for the completion1 enhancement1 or expansion of any project that-- 7i7 is selected under section #iii;,b2 or 7ii7 otherwise meets the requirements of that section4 7#b7 ,risk assessment ,before entering into an agreement under this subsection1 the ,secretary1 in consultation with the ,director of the ,office of ,management and ,budget1 shall determine an appropriate credit subsidy amount for each secured loan1 taking into account all relevant factors1 including the creditworthiness factors under section #iii;,b7b77#b74 7b7 ,terms and limitations 7#a7 ,in general ,a secured loan under this section with respect to a project shall be on such terms and conditions and contain such covenants1 representations1 warranties1 and requirements 7including requirements for audits7 as the ,secretary determines to be appropriate4 7#b7 ,maximum amount ,the amount of a secured loan under this section shall not exceed an amount equal to #hj percent of the reasonably anticipated eligible project costs4 7#c7 ,payment ,a secured loan under this section shall be payable1 in whole or in part1 from-- 7,a7 user fees2 7,b7 payments owing to the obligor under a public-private partnership2 or 7,c7 other revenue sources that also secure or fund the project obligations4 7#d7 ,interest rate 7,a7 ,in general ,except as provided in subparagraph 7,b71 the interest rate on a secured loan under this section shall be not less than the yield on ,united ,states ,treasury securities of a similar maturity to the maturity of the secured loan on the date of execution of the loan agreement4 7,b7 ,limited buydowns 7i7 ,in general ,subject to clause 7ii71 the ,secretary may lower the interest rate of a secured loan under this section if the interest rate has increased between the period-- 7,i7 beginning on1 as applicable-- 7aa7 the date on which an application acceptable to the ,secretary is submitted for the applicable project2 or 7bb7 the date on which the ,secretary entered into a master credit agreement for the applicable project2 and 7,,ii7 ending on the date on which the ,secretary executes the ,federal credit instrument for the applicable project4 7ii7 ,limitation ,the interest rate of a secured loan may not be lowered pursuant to clause 7i7 by more than the lower of-- 7,i7 #aa_/b percentage points 7#aej basis points72 and 7,,ii7 an amount equal to the amount of the increase in the interest rate described in that clause4 7#e7 ,maturity date ,the final maturity date of the secured loan shall be the earlier of-- 7,a7 the date that is #ce years after the date of substantial completion of the project2 and 7,b7 if the useful life of the capital asset being financed is of a lesser period1 the date that is the end of the useful life of the asset4 7#f7 ,nonsubordination 7,a7 ,in general ,except as provided in subparagraph 7,b71 the secured loan shall not be subordinated to the claims of any holder of project obligations in the event of bankruptcy1 insolvency1 or liquidation of the obligor4 7,b7 ,preexisting indenture 7i7 ,in general ,the ,secretary shall waive the requirement under subparagraph 7,a7 for a public agency borrower that is financing ongoing capital programs and has outstanding senior bonds under a preexisting indenture1 if-- 7,i7 the secured loan is rated in the ,a category or higher2 and 7,,ii7 the secured loan is secured and payable from pledged revenues not affected by project performance1 such as a tax-backed revenue pledge or a system-backed pledge of project revenues4 7ii7 ,limitation ,if the ,secretary waives the nonsubordination requirement under this subparagraph-- 7,i7 the maximum credit subsidy amount to be paid by the ,federal ,government shall be not more than #aj percent of the principal amount of the secured loan2 and 7,,ii7 the obligor shall be responsible for paying the remainder of the subsidy amount1 if any4 7#g7 ,fees ,the ,secretary may collect a fee on or after the date of the financial close of a ,federal credit instrument under this section in an amount equal to not more than #a1jjj1jjj to cover all or a portion of the costs to the ,federal ,government of providing the ,federal credit instrument4 7#h7 ,maximum ,federal involvement ,the total ,federal assistance provided for a project under the ,,cifia program1 including any grant provided under section #iii;,d1 shall not exceed an amount equal to #hj percent of the eligible project costs4 7c7 ,repayment 7#a7 ,schedule ,the ,secretary shall establish a repayment schedule for each secured loan under this section based on-- 7,a7 the projected cash flow from project revenues and other repayment sources2 and 7,b7 the useful life of the project4 7#b7 ,commencement ,scheduled loan repayments of principal or interest on a secured loan under this section shall commence not later than #e years after the date of substantial completion of the project4 7#c7 ,deferred payments 7,a7 ,in general ,if1 at any time after the date of substantial completion of a project1 the project is unable to generate sufficient revenues in excess of reasonable and necessary operating expenses to pay the scheduled loan repayments of principal and interest on the secured loan1 the ,secretary may1 subject to subparagraph 7,c71 allow the obligor to add unpaid principal and interest to the outstanding balance of the secured loan4 7,b7 ,interest ,any payment deferred under subparagraph 7,a7 shall-- 7i7 continue to accrue interest in accordance with subsection 7b77#d7 until fully repaid2 and 7ii7 be scheduled to be amortized over the remaining term of the loan4 7,c7 ,criteria 7i7 ,in general ,any payment deferral under subparagraph 7,a7 shall be contingent on the project meeting criteria established by the ,secretary4 7ii7 ,repayment standards ,the criteria established pursuant to clause 7i7 shall include standards for the reasonable prospect of repayment4 7#d7 ,prepayment 7,a7 ,use of excess revenues ,any excess revenues that remain after satisfying scheduled debt service requirements on the project obligations and secured loan and all deposit requirements under the terms of any trust agreement1 bond resolution1 or similar agreement securing project obligations may be applied annually to prepay the secured loan1 without penalty4 7,b7 ,use of proceeds of refinancing ,a secured loan may be prepaid at any time without penalty from the proceeds of refinancing from non-,federal funding sources4 7d7 ,sale of secured loans 7#a7 ,in general ,subject to paragraph 7#b71 as soon as practicable after substantial completion of a project and after notifying the obligor1 the ,secretary may sell to another entity or reoffer into the capital markets a secured loan for the project if the ,secretary determines that the sale or reoffering can be made on favorable terms4 7#b7 ,consent of obligor ,in making a sale or reoffering under paragraph 7#a71 the ,secretary may not change any original term or condition of the secured loan without the written consent of the obligor4 7e7 ,loan guarantees 7#a7 ,in general ,the ,secretary may provide a loan guarantee to a lender in lieu of making a secured loan under this section if the ,secretary determines that the budgetary cost of the loan guarantee is substantially the same as1 or less than1 that of a secured loan4 7#b7 ,terms ,the terms of a loan guarantee under paragraph 7#a7 shall be consistent with the terms required under this section for a secured loan1 except that the rate on the guaranteed loan and any prepayment features shall be negotiated between the obligor and the lender1 with the consent of the ,secretary4 #iii;,d4 ,future growth grants 7a7 ,establishment ,the ,secretary may provide grants to pay a portion of the cost differential1 with respect to any projected future increase in demand for carbon dioxide transportation by an infrastructure project described in subsection 7b71 between-- 7#a7 the cost of constructing the infrastructure asset with the capacity to transport an increased flow rate of carbon dioxide1 as made practicable under the project2 and 7#b7 the cost of constructing the infrastructure asset with the capacity to transport carbon dioxide at the flow rate initially required1 based on commitments for the use of the asset4 7b7 ,eligibility ,to be eligible to receive a grant under this section1 an entity shall-- 7#a7 be eligible to receive credit assistance under the ,,cifia program2 7#b7 carry out1 or propose to carry out1 a project for large-capacity1 common carrier infrastructure with a probable future increase in demand for carbon dioxide transportation2 and 7#c7 submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary determines to be appropriate4 7c7 ,use of funds ,a grant provided under this section may be used only to pay the costs of any additional flow rate capacity of a carbon dioxide transportation infrastructure asset that the project sponsor demonstrates to the satisfaction of the ,secretary can reasonably be expected to be used during the #bj-year period beginning on the date of substantial completion of the project described in subsection 7b77#b74 7d7 ,maximum amount ,the amount of a grant provided under this section may not exceed an amount equal to #hj percent of the cost of the additional capacity described in subsection 7a74 #iii;,e4 ,program administration 7a7 ,requirement ,the ,secretary shall establish a uniform system to service the ,federal credit instruments provided under the ,,cifia program4 7b7 ,fees ,the ,secretary may collect fees on or after the date of the financial close of a ,federal credit instrument provided under the ,,cifia program1 contingent on authority being provided in appropriations ,acts1 at a level that is sufficient to cover-- 7#a7 the costs of services of expert firms retained pursuant to subsection 7d72 and 7#b7 all or a portion of the costs to the ,federal ,government of servicing the ,federal credit instruments4 7c7 ,servicer 7#a7 ,in general ,the ,secretary may appoint a financial entity to assist the ,secretary in servicing the ,federal credit instruments4 7#b7 ,duties ,a servicer appointed under paragraph 7#a7 shall act as the agent for the ,secretary4 7#c7 ,fee ,a servicer appointed under paragraph 7#a7 shall receive a servicing fee1 subject to approval by the ,secretary4 7d7 ,assistance from expert firms ,the ,secretary may retain the services of expert firms1 including counsel1 in the field of municipal and project finance to assist in the underwriting and servicing of ,federal credit instruments4 7e7 ,expedited processing ,the ,secretary shall implement procedures and measures to economize the time and cost involved in obtaining approval and the issuance of credit assistance under the ,,cifia program4 #iii;,f4 ,state and local permits ,the provision of credit assistance under the ,,cifia program with respect to a project shall not-- 7#a7 relieve any recipient of the assistance of any project obligation to obtain any required ,state or local permit or approval with respect to the project2 7#b7 limit the right of any unit of ,state or local government to approve or regulate any rate of return on private equity invested in the project2 or 7#c7 otherwise supersede any ,state or local law 7including any regulation7 applicable to the construction or operation of the project4 #iii;,g4 ,regulations ,the ,secretary may promulgate such regulations as the ,secretary determines to be appropriate to carry out the ,,cifia program4 #iii;,h4 ,funding 7a7 ,funding 7#a7 ,in general ,there are authorized to be appropriated to the ,secretary to carry out this subtitle1 to remain available until expended-- 7,a7 #fjj1jjj1jjj for each of fiscal years #bjbb and #bjbc2 and 7,b7 #cjj1jjj1jjj for each of fiscal years #bjbd through #bjbf4 7#b7 ,spending and borrowing authority ,spending and borrowing authority for a fiscal year to enter into ,federal credit instruments shall be promptly apportioned to the ,secretary on a fiscal-year basis4 7#c7 ,reestimates ,if the subsidy amount of a ,federal credit instrument is reestimated1 the cost increase or decrease of the reestimate shall be borne by1 or benefit1 the general fund of the ,treasury1 consistent with section #ejd7;f7 of the ,congressional ,budget ,act of #aigd 7#b ,u4,s4,c4 #ffa;c7f774 7#d7 ,administrative costs ,of the amounts made available to carry out the ,,cifia program1 the ,secretary may use not more than #i1jjj1jjj 7as indexed for ,united ,states dollar inflation from the date of enactment of the ,storing ,,co#b ,and ,lowering ,emissions ,act 7as measured by the ,consumer ,price ,index77 each fiscal year for the administration of the ,,cifia program4 7b7 ,contract authority 7#a7 ,in general ,notwithstanding any other provision of law1 execution of a term sheet by the ,secretary of a ,federal credit instrument that uses amounts made available under the ,,cifia program shall impose on the ,united ,states a contractual obligation to fund the ,federal credit investment4 7#b7 ,availability ,amounts made available to carry out the ,,cifia program for a fiscal year shall be available for obligation on ,october #a of the fiscal year4 4 7b7 ,technical amendments ,the table of contents for the ,energy ,policy ,act of #bjje 7,public ,law #aji-eh2 #aai ,stat4 #fjj7 is amended-- 7#a7 in the item relating to section #iag1 by striking ,efficiency2 7#b7 by striking the items relating to subtitle ,j of title ,,ix 7relating to ultra-deepwater and unconventional natural gas and other petroleum resources7 and inserting the following3 ,subtitle ,j--,carbon dioxide transportation infrastructure finance and innovation ,sec4 #iii;,a4 ,definitions4 ,sec4 #iii;,b4 ,determination of eligibility and project selection4 ,sec4 #iii;,c4 ,secured loans4 ,sec4 #iii;,d4 ,future growth grants4 ,sec4 #iii;,e4 ,program administration4 ,sec4 #iii;,f4 ,state and local permits4 ,sec4 #iii;,g4 ,regulations4 ,sec4 #iii;,h4 ,funding4 2 and 7#c7 by striking the item relating to section #ifi;,b and inserting the following3 ,sec4 #ifi;,b4 ,high efficiency turbines4 4 ,,iii ,geologic storage of captured carbon #cja4 ,carbon storage validation and testing ,section #ifc of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afbic7 is amended-- 7#a7 in subsection 7a77#a77;,b71 by striking over a #aj-year period2 7#b7 in subsection 7b7-- 7,a7 in paragraph 7#a71 by striking and demonstration and inserting demonstration1 and commercialization2 and 7,b7 in paragraph 7#b7-- 7i7 in subparagraph 7,g71 by striking and at the end2 7ii7 in subparagraph 7,h71 by striking the period at the end and inserting 2 and2 and 7iii7 by adding at the end the following3 7,i7 evaluating the quantity1 location1 and timing of geologic carbon storage deployment that may be needed1 and developing strategies and resources to enable the deployment4 2 7#c7 by redesignating subsections 7e7 through 7g7 as subsections 7f7 through 7h71 respectively2 7#d7 by inserting after subsection 7d7 the following3 7e7 ,large-,scale carbon storage commercialization program 7#a7 ,in general ,the ,secretary shall establish a commercialization program under which the ,secretary shall provide funding for the development of new or expanded commercial large-scale carbon sequestration projects and associated carbon dioxide transport infrastructure1 including funding for the feasibility1 site characterization1 permitting1 and construction stages of project development4 7#b7 ,applications2 selection 7,a7 ,in general ,to be eligible to enter into an agreement with the ,secretary for funding under paragraph 7#a71 an entity shall submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary determines to be appropriate4 7,b7 ,application process ,the ,secretary shall establish an application process that1 to the maximum extent practicable-- 7i7 is open to projects at any stage of development described in paragraph 7#a72 and 7ii7 facilitates expeditious development of projects described in that paragraph4 7,c7 ,project selection ,in selecting projects for funding under paragraph 7#a71 the ,secretary shall give priority to-- 7i7 projects with substantial carbon dioxide storage capacity2 or 7ii7 projects that will store carbon dioxide from multiple carbon capture facilities4 2 7#e7 in subsection 7f7 7as so redesignated71 in paragraph 7#a71 by inserting with respect to the research1 development1 demonstration program components described in subsections 7b7 through 7d7 before give preference2 and 7#f7 in subsection 7h7 7as so redesignated7-- 7,a7 in paragraph 7#e71 by striking the period at the end and inserting 2 and2 7,b7 by redesignating paragraphs 7#a7 through 7#e7 as subparagraphs 7,a7 through 7,e71 respectively1 and indenting appropriately2 7,c7 by inserting before subparagraph 7,a7 7as so redesignated7 the following3 7#a7 for activities under the research1 development1 demonstration program components described in subsections 7b7 through 7d7-- 2 and 7,d7 by adding at the end the following3 7#b7 for activities under the commercialization program component described in subsection 7e71 to remain available until expended1 #ejj1jjj1jjj for each of fiscal years #bjbb through #bjbf4 4 #cjb4 ,secure geologic storage permitting 7a7 ,definitions ,in this section3 7#a7 ,administrator ,the term ,administrator means the ,administrator of the ,environmental ,protection ,agency4 7#b7 ,class ,,vi well ,the term ,class ,,vi well means a well described in section #add4f7;f7 of title #dj1 ,code of ,federal ,regulations 7or successor regulations74 7b7 ,geologic sequestration permitting ,for the permitting of ,class ,,vi wells by the ,administrator for the injection of carbon dioxide for the purpose of geologic sequestration in accordance with the requirements of the ,safe ,drinking ,water ,act 7#db ,u4,s4,c4 #cjj;f et seq47 and the final rule of the ,administrator entitled ,federal ,requirements ,under the ,underground ,injection ,control 7,,uic7 ,program for ,carbon ,dioxide 7,,co#b7 ,geologic ,sequestration 7,,gs7 ,wells 7#ge ,fed4 ,reg4 #ggbcj 7,december #aj1 #bjaj771 there is authorized to be appropriated for each of fiscal years #bjbb through #bjbf1 #e1jjj1jjj4 7c7 ,state permitting program grants 7#a7 ,establishment ,the ,administrator shall award grants to ,states that1 pursuant to section #adbb of the ,safe ,drinking ,water ,act 7#db ,u4,s4,c4 #cjj;h-#a71 receive the approval of the ,administrator for a ,state underground injection control program for permitting ,class ,,vi wells for the injection of carbon dioxide4 7#b7 ,use of funds ,a ,state that receives a grant under paragraph 7#a7 shall use the amounts received under the grant to defray the expenses of the ,state related to the establishment and operation of a ,state underground injection control program described in paragraph 7#a74 7#c7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this subsection1 for the period of fiscal years #bjbb through #bjbf1 #ej1jjj1jjj4