,,ii #aahth ,,congress #b;d ,session ,s4 #ecfi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,november #ba1 #bjbd,mr4 ,bennet 7for himself and ,ms4 ,murkowski7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to establish a technology-neutral tax credit for increased investment in next-generation carbon dioxide removal technologies4 #a4 ,short title ,this ,act may be cited as the ,carbon ,dioxide ,removal ,investment ,act4 #b4 ,establishment of technology-neutral credit for carbon dioxide removal 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #de;,,aa the following new section3 #de;,,bb4 ,technology-neutral credit for carbon dioxide removal 7a7 ,in general ,for purposes of section #ch1 the carbon dioxide removal credit for any taxable year is an amount equal to the applicable amount per metric tons of net carbon dioxide removal 7as determined pursuant to subsection 7e77 achieved by a qualifying carbon dioxide removal project during the #ab-year period beginning on the date such project was originally placed in service4 7b7 ,applicable amount 7#a7 ,in general ,for purposes of subsection 7a71 the applicable amount shall be-- 7,a7 in the case of a qualifying carbon dioxide removal project which uses installed carbon capture equipment to capture point-source carbon dioxide originating from the combustion or processing of biomass feedstocks1 #aaj1 and 7,b7 in the case of a qualifying carbon dioxide removal project which is not described in subparagraph 7,a71 #bej4 7#b7 ,inflation adjustment 7,a7 ,in general ,in the case of any taxable year beginning in a calendar year after #bjbe1 the dollar amounts in paragraph 7#a7 shall each be adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the carbon dioxide removal occurs4 7,b7 ,annual computation ,the ,secretary shall1 not later than ,april #a of each calendar year1 determine and publish in the ,federal ,register the inflation adjustment factor for such calendar year in accordance with this subsection4 7,c7 ,inflation adjustment factor ,the term inflation adjustment factor has the same meaning given such term under section #de,y7c77#c71 except that such section shall be applied by substituting calendar year #bjbd for calendar year #aiib4 7,d7 ,rounding rule ,if any amount as increased under subparagraph 7,a7 is not a multiple of #a1 such amount shall be rounded to the nearest multiple of #a4 7c7 ,definitions ,in this section-- 7#a7 ,carbon dioxide equivalent ,the term carbon dioxide equivalent means with respect to a greenhouse gas1 the quantity of such gas that has a global warming potential equivalent to #a metric ton of carbon dioxide4 7#b7 ,carbon dioxide removal ,the term carbon dioxide removal means the removal of carbon dioxide from the atmosphere through-- 7,a7 the capture of carbon dioxide from the ambient air or upper hydrosphere1 and 7,b7 the storage of such carbon dioxide4 7#c7 ,net carbon dioxide removal ,the term net carbon dioxide removal means carbon dioxide removal1 net of any associated greenhouse gas emissions 7as measured in metric tons of carbon dioxide equivalent on a lifecycle basis74 7#d7 ,qualifying carbon dioxide removal approach 7,a7 ,in general ,the term qualifying carbon dioxide removal approach means1 with respect to any qualifying carbon dioxide removal project1 a set of similar technologies-- 7i7 which achieve carbon dioxide removal through-- 7,i7 direct air capture and storage1 7,,ii7 enhanced carbon mineralization and rock weathering1 7,,iii7 terrestrial biomass-based carbon dioxide removal1 7,,iv7 marine-based carbon dioxide removal1 or 7,v7 any other means1 and 7ii7 which satisfy each of the following criteria 7as determined by the ,secretary1 in consultation with the ,secretary of ,energy and1 as deemed necessary1 the head of any other relevant ,federal agency73 7,i7 ,expected to provide net carbon dioxide removal based on project-level lifecycle analysis1 as described in subsection 7e77#b74 7,,ii7 ,has a high likelihood1 based on scientific understanding1 of storing the captured carbon dioxide for at least #a1jjj years1 including through geologic storage1 utilization1 or other means4 7,,iii7 ,demonstrates the ability to quantify net carbon dioxide removal1 within a range of plus or minus #bj percent with a #ie percent confidence interval based on public demonstrations and field trials4 7,b7 ,terrestrial biomass-based carbon dioxide removal 7i7 ,in general ,in the case of any approach which uses terrestrial biomass to capture carbon dioxide1 such approach shall use eligible biomass feedstocks4 7ii7 ,eligible biomass feedstock ,for purposes of this subparagraph1 the term eligible biomass feedstock means a feedstock which is derived from-- 7,i7 agricultural wastes and residues from land actively cultivated before the date of enactment of this section1 provided that-- 7aa7 there is not less than a #ej percent retention of residues1 or 7bb7 an alternate retention rate or best practice 7as certified under clause 7iii77,,iii77aa77 is achieved1 7,,ii7 non-invasive organic material grown on brownfield sites or abandoned mine sites1 including organic material grown exclusively for purposes of being used by a qualifying carbon dioxide removal project1 7,,iii7 algae or other aquatic photosynthesizing organisms1 7,,iv7 food waste1 7,v7 removal of invasive plant species1 7,,vi7 other wastes and residues derived from-- 7aa7 landscape or right-of-way trimming1 7bb7 biomass removed for wildfire hazard reduction within #bjj feet of structures1 7cc7 wood and paper mill waste1 or 7dd7 downed wood from extreme weather events1 or 7,,vii7 any other source which is certified pursuant to clause 7iii77,,iii77bb74 7iii7 ,study and certification 7,i7 ,study ,not later than #a year after the date of enactment of this section1 the ,national ,academies of ,sciences1 ,engineering1 and ,medicine1 in consultation with the ,secretary of ,energy and the ,secretary of ,agriculture1 shall complete #b separate studies with respect to the following3 7aa7 ,for purposes of clause 7ii77,i77bb71 recommend adequate thresholds for residue retention rates and other best practices for various crops and environmental conditions1 with the goal of maintaining soil organic carbon1 soil health1 and biodiversity4 7bb7 ,for purposes of clause 7ii77,,vii71 evaluate the suitability as additional sources for eligible biomass feedstocks of-- 7,,aa7 biomass grown on marginal lands that have been or are under intensive cultivation1 and 7,,bb7 forest residues 7such as small diameter thinning1 limbs1 and bark7 related to wildfire hazard reduction or ecological forest management with no alternative options for valorization4 7,,ii7 ,feedstock study ,for purposes of the study described in subclause 7,i77bb71 such study shall-- 7aa7 assess-- 7,,aa7 the potential risk of the feedstocks described in such subclause displacing food crop production1 decreasing food crop yield1 displacing the use of forest residues for durable products1 and other direct and indirect land-use impacts1 7,,bb7 the impact of use of such feedstocks on forest and agricultural soils1 including impacts on erosion and carbon and nutrient cycling1 and 7,,cc7 the impact of use of such feedstocks on biodiversity1 and 7bb7 provide guidance for robust lifecycle assessment of such feedstocks4 7,,iii7 ,certification ,following the completion of each study described in subclause 7,i71 the ,secretary of ,energy1 in consultation with the ,secretary of ,agriculture1 shall1 based on the recommendations or evaluations of such study1 certify-- 7aa7 for purposes of clause 7ii77,i77bb71 any alternate retention rates or best practices1 and 7bb7 for purposes of clause 7ii77,,vii71 any additional sources for eligible biomass feedstocks4 7,c7 ,marine-based carbon dioxide removal 7i7 ,in general ,in the case of any approach which uses the physical1 chemical1 or biological properties of the ocean to achieve carbon dioxide removal1 such approach shall use a certified marine carbon dioxide removal approach4 7ii7 ,certified marine carbon dioxide removal approach ,for purposes of this subparagraph1 the term certified marine carbon dioxide removal approach means an approach which-- 7,i7 meets the standards established under clause 7iii71 and 7,,ii7 is certified under clause 7iv74 7iii7 ,standards 7,i7 ,in general ,not later than #a year after the date of enactment of this section1 the ,administrator of the ,national ,oceanic and ,atmospheric ,administration1 in consultation with the ,administrator of the ,environmental ,protection ,agency and the ,director of the ,bureau of ,ocean ,energy ,management1 shall establish science-based environmental safety standards which apply to all qualifying carbon dioxide removal approaches which use the physical1 chemical1 or biological properties of the ocean to achieve carbon dioxide removal1 with such standards as will ensure that an approach is not likely to have significant adverse environmental impact1 which shall include accounting for-- 7aa7 the positive and negative environmental impacts of such approach 7including at-site deployment impacts and upstream and downstream impacts71 7bb7 the level of certainty with respect to the type and magnitude of such impacts1 and 7cc7 the quantity and quality of the body of research related to such impacts4 7,,ii7 ,reversal of negative environmental impacts caused by climate change ,for purposes of subclause 7,i71 positive environmental impacts of any qualifying carbon dioxide removal approach shall include any local reversal of negative environmental impacts caused by climate change4 7,,iii7 ,reevaluation ,not later than #c years after the establishment of the standards under subclause 7,i71 and every #c years thereafter1 the ,administrator of the ,national ,oceanic and ,atmospheric ,administration1 in consultation with the ,administrator of the ,environmental ,protection ,agency and the ,director of the ,bureau of ,ocean ,energy ,management1 shall review such standards and1 pursuant to the requirements under such subclause1 update such standards as necessary4 7iv7 ,certification ,not later than #a year after the date of enactment of this section and every #b years thereafter1 the ,administrator of the ,national ,oceanic and ,atmospheric ,administration1 in consultation with the ,administrator of the ,environmental ,protection ,agency and the ,director of the ,bureau of ,ocean ,energy ,management1 shall certify any approach which satisfies the standards established under clause 7iii74 7#e7 ,qualifying carbon dioxide removal project ,the term qualifying carbon dioxide removal project means a project-- 7,a7 which-- 7i7 is owned by the taxpayer1 7ii7 is engaged in carbon dioxide removal through use of a qualifying carbon dioxide removal approach1 and 7iii7 is placed in service at an established location or set of locations1 and 7,b7 the construction of which begins before ,january #a1 #bjce4 7d7 ,selection of qualifying carbon dioxide removal approaches 7#a7 ,in general ,not later than #a year after date of enactment of this section1 the ,secretary1 in consultation with the ,secretary of ,energy1 shall establish a selection process to determine qualifying carbon dioxide removal approaches pursuant to the requirements in subsection 7c77#d74 7#b7 ,initial list ,not later than #ah months after date of enactment of this section1 the ,secretary1 in consultation with the ,secretary of ,energy1 shall1 pursuant to the process described in paragraph 7#a71 compile and publish an initial list of qualifying carbon dioxide removal approaches according to requirements in subsection 7c77#d74 7#c7 ,update ,not later than #a year after the publication of the list described in paragraph 7#b7 and annually thereafter1 the ,secretary1 in consultation with the ,secretary of ,energy1 shall1 pursuant to the process described in paragraph 7#a71 compile and publish any additional qualifying carbon dioxide removal approaches according to requirements in subsection 7c77#d74 7e7 ,determination of amount of net carbon dioxide removal 7#a7 ,in general ,not later than #a year after date of enactment of this section1 the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency1 shall establish a process for taxpayers to determine and publicly report net carbon dioxide removal through a qualifying carbon dioxide removal project1 as determined based on-- 7,a7 project-level greenhouse gas lifecycle analysis1 and 7,b7 project-level monitoring1 reporting1 and verification4 7#b7 ,lifecycle analysis ,for purposes of paragraph 7#a77;,a71 the project-level greenhouse gas lifecycle analysis shall-- 7,a7 be based on protocols which are subject to such requirements as are determined by the ,secretary1 in consultation with the ,secretary of ,energy and ,administrator of the ,environmental ,protection ,agency1 to be appropriate1 7,b7 include all processes and activities associated with the capture and storage of carbon dioxide1 including-- 7i7 any mass and energy inputs and outputs from raw materials1 including biomass feedstocks1 manufacture1 transport1 storage1 sale1 use and disposal1 7ii7 land use change and other ecosystem perturbations1 and 7iii7 long-term retention of carbon dioxide1 7,c7 calculate net carbon dioxide removal1 including accounting for uncertainty associated with the estimate of net carbon dioxide removal1 and 7,d7 only exclude any process from such analysis if such process does not significantly change the outcome of such analysis1 with such exclusion to be noted and justified4 7#c7 ,monitoring1 reporting1 and verification ,for purposes of paragraph 7#a77;,b71 the project-level monitoring1 reporting1 and verification shall-- 7,a7 be based on protocols which are subject to such requirements as are determined by the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency1 to be appropriate1 7,b7 include the use of independent third-party verifiers 7as certified by the ,secretary71 and 7,c7 quantify uncertainty associated with measurements and the resulting estimate of net carbon dioxide removal4 7#d7 ,goals ,the process established under paragraph 7#a7 shall seek to-- 7,a7 to the greatest extent possible1 identify best available tools1 models1 or default values for embodied emissions in order to facilitate consistency and comparability across qualified carbon dioxide removal approaches with respect to-- 7i7 project-level greenhouse gas lifecycle analysis1 7ii7 project-level monitoring1 reporting1 and verification1 and 7iii7 determination of net carbon dioxide removal1 7,b7 include reporting requirements which facilitate transparency and evaluation of the net carbon dioxide removal claimed by the taxpayer1 and 7,c7 take into account best practices from other carbon dioxide removal accounting programs in order to minimize inefficiencies and conflicting procedures4 7#e7 ,review 7,a7 ,in general ,not later than #c years after date of enactment of this section1 and every #c years thereafter1 the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency-- 7i7 shall conduct an panel-based review by external experts 7which may include representatives from government1 academia1 civil society1 and the private sector7 of the process established under paragraph 7#a7 to improve the requirements for greenhouse gas lifecycle analysis and monitoring1 reporting1 and verification based on the best available science at the time of such review1 and 7ii7 based on the review described in clause 7i71 may adjust any requirements applicable under this subsection4 7,b7 ,application of updated requirements ,any adjustment under subparagraph 7,a77ii7 with respect to determination of net carbon dioxide removal shall only apply to taxable years beginning after the date of such adjustment4 7f7 ,special rules 7#a7 ,only carbon dioxide removal within the ,united ,states taken into account ,the credit under this section shall apply only with respect to carbon dioxide removal which is within-- 7,a7 the ,united ,states 7within the meaning of section #fch7a771 7,b7 a possession of the ,united ,states 7within the meaning of section #fch7b771 or 7,c7 any marine environment which is subject to regulation by the ,united ,states4 7#b7 ,ownership interests ,in the case of a qualifying carbon dioxide removal project in which more than #a person has an ownership interest1 except to the extent provided in regulations prescribed by the ,secretary1 net carbon dioxide removal achieved by such project shall be allocated among such persons in proportion to their respective ownership interests with respect to the gross net carbon dioxide removal from such project4 7#c7 ,coordination with other credits 7,a7 ,carbon oxide sequestration credit ,no credit shall be allowed under this section with respect to any qualifying carbon dioxide removal project for any taxable year for which a credit determined under section #de,q is allowed under section #ch for such taxable year4 7,b7 ,qualifying advanced energy project credit ,no credit shall be allowed under this section with respect to any qualifying carbon dioxide removal project for which a credit determined under section #dh;,c is allowed under section #ch for the taxable year or any prior taxable year4 7,c7 ,special rule for qualified carbon dioxide removal projects integrated with clean energy generation 7i7 ,in general ,in the case of any qualifying carbon dioxide removal project which produces electricity1 hydrogen1 or fuel as an output of its qualifying carbon dioxide removal approach1 no credit shall be allowed with respect to such electricity1 hydrogen1 or fuel under section #dj;,b1 #de1 #de,v1 #de,y1 or #de,z unless such electricity1 hydrogen1 or fuel is consumed by such qualifying carbon dioxide removal project4 7ii7 ,energy credit and clean electricity investment credit ,in the case of any qualifying carbon dioxide removal project which includes-- 7,i7 any energy property 7as defined in section #dh7;a77#c77 which produces electricity or hydrogen from the process of carbon dioxide removal1 or 7,,ii7 any qualified facility 7as defined in section #dh;,e7b77#c77 which produces electricity or hydrogen from the process of carbon dioxide removal1 no credit shall be allowed under section #dh or #dh;,e with respect to such energy property or qualified facility4 4 7b7 ,elective payment and transfer of credit 7#a7 ,elective payment ,section #fdag of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 in subsection 7b7-- 7i7 by designating paragraphs 7#aj7 through 7#ab7 as paragraphs 7#aa7 through 7#ac71 respectively1 and 7ii7 by inserting after paragraph 7#i7 the following3 7#aj7 ,the carbon dioxide removal credit under section #de;,,bb4 1 and 7,b7 in subsection 7d77#a7-- 7i7 in subparagraph 7,e71 by striking 7,c71 or 7,d7 each place it appears and inserting 7,c71 7,d71 or 7,e71 7ii7 by redesignating subparagraph 7,e7 7as amended by clause 7i77 as subparagraph 7,f71 and 7iii7 by inserting after subparagraph 7,d7 the following3 7,e7 ,election with respect to carbon dioxide removal credit 7i7 ,in general ,if a taxpayer other than an entity described in subparagraph 7,a7 makes an election under this subparagraph with respect to any taxable year in which such taxpayer has1 after ,december #ca1 #bjbd1 placed in service any qualifying carbon dioxide removal project 7as defined in section #de;,,bb7c771 such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year1 but only with respect to the credit described in subsection 7b77#aj74 7ii7 ,limitation 7,i7 ,in general ,except as provided in subclause 7,,ii71 if a taxpayer makes an election under this subparagraph with respect to any taxable year1 such taxpayer shall be treated as having made such election for each of the #aa succeeding taxable years4 7,,ii7 ,exception ,a taxpayer may elect to revoke the application of the election made under this subparagraph to any taxable year described in subclause 7,i74 ,any such election1 if made1 shall apply to the applicable year specified in such election and each subsequent taxable year within the period described in subclause 7,i74 ,any election under this subclause may not be subsequently revoked4 4 7#b7 ,transfer ,section #fdah7;f77#a77;,a7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7xii7 ,the carbon dioxide removal credit under section #de;,,bb4 4 7c7 ,credit ,to be part of general business credit ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf1 as amended by sections #acaje1 #acgja1 and #acgjd of ,public ,law #aag-afi1 is amended by striking plus at the end of paragraph 7#dj71 by striking the period at the end of paragraph 7#da7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#db7 the carbon dioxide removal credit determined under section #de;,,bb7a74 4 7d7 ,conforming amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #de;,,aa the following new item3 ,sec4 #de;,,bb4 ,technology-neutral credit for carbon dioxide removal4 4 7e7 ,effective date ,the amendments made by this ,act shall apply to property placed in service after ,december #ca1 #bjbd4