1. (a) Establishment The Secretary, in coordination with the heads of appropriate Federal agencies, including the Secretary of Agriculture, shall establish a research, development, and demonstration program (referred to in this section as the “program”) to test, validate, or improve technologies and strategies to remove carbon dioxide from the atmosphere on a large scale.
2. (b) Intraagency coordination The Secretary shall ensure that the program includes the coordinated participation of the Office of Fossil Energy, the Office of Science, and the Office of Energy Efficiency and Renewable Energy.

3. (c) Program activities The program may include research, development, and demonstration activities relating to—

   1. (1) direct air capture and storage technologies;
   2. (2) bioenergy with carbon capture and sequestration;
   3. (3) enhanced geological weathering;
   4. (4) agricultural practices;
   5. (5) forest management and afforestation; and
   6. (6) planned or managed carbon sinks, including natural and artificial.

4. (d) Requirements In developing and identifying carbon removal technologies and strategies under the program, the Secretary shall consider—

   1. (1) land use changes, including impacts on natural and managed ecosystems;
   2. (2) ocean acidification;
   3. (3) net greenhouse gas emissions;
   4. (4) commercial viability;
   5. (5) potential for near-term impact;
   6. (6) potential for carbon reductions on a gigaton scale; and
   7. (7) economic cobenefits.

5. (e) Air capture prize competitions

   1. (1) Definitions In this subsection:

      1. (A) Dilute media The term “dilute media” means media in which the concentration of carbon dioxide is less than 1 percent by volume.
      2. (B) Prize competition The term “prize competition” means the competitive technology prize competition established under paragraph (2).

      3. (C) Qualified carbon dioxide

         1. (i) In general The term “qualified carbon dioxide” means any carbon dioxide that—

            1. (I) is captured directly from the ambient air; and
            2. (II) is measured at the source of capture and verified at the point of disposal, injection, or utilization.
         2. (ii) Inclusion The term “qualified carbon dioxide” includes the initial deposit of captured carbon dioxide used as a tertiary injectant.
         3. (iii) Exclusion The term “qualified carbon dioxide” does not include carbon dioxide that is recaptured, recycled, and reinjected as part of the enhanced oil and natural gas recovery process.

      4. (D) Qualified direct air capture facility

         1. (i) In general The term “qualified direct air capture facility” means any facility that—

            1. (I) uses carbon capture equipment to capture carbon dioxide directly from the ambient air; and
            2. (II) captures more than 50,000 metric tons of qualified carbon dioxide annually.

         2. (ii) Exclusion The term “qualified direct air capture facility” does not include any facility that captures carbon dioxide—

            1. (I) that is deliberately released from naturally occurring subsurface springs; or
            2. (II) using natural photosynthesis.

   2. (2) Establishment Not later than 2 years after December 27, 2020, the Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall establish as part of the program a competitive technology prize competition to award prizes for—

      1. (A) precommercial carbon dioxide capture from dilute media; and
      2. (B) commercial applications of direct air capture technologies.

   3. (3) Requirements In carrying out this subsection, the Secretary, in accordance with section 3719 of title 15, shall develop requirements for—

      1. (A) the prize competition process; and
      2. (B) monitoring and verification procedures for projects selected to receive a prize under the prize competition.

   4. (4) Eligible projects

      1. (A) Precommercial air capture projects With respect to projects described in paragraph (2)(A), to be eligible to be awarded a prize under the prize competition, a project shall—

         1. (i) meet minimum performance standards set by the Secretary;
         2. (ii) meet minimum levels set by the Secretary for the capture of carbon dioxide from dilute media; and

         3. (iii) demonstrate in the application of the project for a prize—

            1. (I) a design for a promising carbon capture technology that will—

               1. (aa) be operated on a demonstration scale; and
               2. (bb) have the potential to achieve significant reduction in the level of carbon dioxide in the atmosphere;
            2. (II) a successful bench-scale demonstration of a carbon capture technology; or
            3. (III) an operational carbon capture technology on a commercial scale.

      2. (B) Commercial direct air capture projects

         1. (i) In general With respect to projects described in paragraph (2)(B), the Secretary shall award prizes under the prize competition to qualified direct air capture facilities for metric tons of qualified carbon dioxide captured and verified at the point of disposal, injection, or utilization.

         2. (ii) Amount of award The amount of the award per metric ton under clause (i)—

            1. (I) shall be equal for each qualified direct air capture facility selected for a prize under the prize competition; and

            2. (II) shall be determined by the Secretary and in any case shall not exceed—

               1. (aa) $180 for qualified carbon dioxide captured and stored in saline storage formations;
               2. (bb) a lesser amount, as determined by the Secretary, for qualified carbon dioxide captured and stored in conjunction with enhanced oil recovery operations; or
               3. (cc) a lesser amount, as determined by the Secretary, for qualified carbon dioxide captured and utilized in any activity consistent with section 45Q(f)(5) of title 26.
         3. (iii) Requirement The Secretary shall make awards under this subparagraph until appropriated funds are expended.

6. (f) Direct air capture test center

   1. (1) In general Not later than 2 years after December 27, 2020, the Secretary shall award grants to 1 or more entities for the operation of 1 or more test centers (referred to in this subsection as a “Center”) to provide distinct testing capabilities for innovative direct air capture and storage technologies.

   2. (2) Purpose Each Center shall—

      1. (A) advance research, development, demonstration, and commercial application of direct air capture and storage technologies;
      2. (B) support large-scale pilot and demonstration projects and test direct air capture and storage technologies; and
      3. (C) develop front-end engineering design and economic analysis.

   3. (3) Selection

      1. (A) In general The Secretary shall select entities to receive grants under this subsection according to such criteria as the Secretary may develop.
      2. (B) Competitive basis The Secretary shall select entities to receive grants under this subsection on a competitive basis.

      3. (C) Priority criteria In selecting entities to receive grants under this subsection, the Secretary shall prioritize consideration of applicants that—

         1. (i) have access to existing or planned research facilities for direct air capture and storage technologies;
         2. (ii) are institutions of higher education with established expertise in engineering for direct air capture and storage technologies, or partnerships with such institutions of higher education; or
         3. (iii) have access to existing research and test facilities for bulk materials design and testing, component design and testing, or professional engineering design.
   4. (4) Formula for awarding grants The Secretary may develop a formula for awarding grants under this subsection.

   5. (5) Schedule

      1. (A) In general Each grant awarded under this subsection shall be for a term of not more than 5 years, subject to the availability of appropriations.
      2. (B) Renewal The Secretary may renew a grant for 1 or more additional 5-year terms, subject to a competitive merit review and the availability of appropriations.
   6. (6) Termination To the extent otherwise authorized by law, the Secretary may eliminate, and terminate grant funding under this subsection for, a Center during any 5-year term described in paragraph (5) if the Secretary determines that the Center is underperforming.

7. (g) Pilot and demonstration projects In supporting the technology development activities under this section, the Secretary is encouraged to support carbon removal pilot and demonstration projects, including—

   1. (1) pilot projects that test direct air capture systems capable of capturing 10 to 100 tonnes of carbon oxides per year to provide data for demonstration-scale projects; and
   2. (2) direct air capture demonstration projects capable of capturing greater than 1,000 tonnes of carbon oxides per year.
8. (h) Intraagency collaboration In carrying out the program, the Secretary shall encourage and promote collaborations among relevant offices and agencies within the Department.
9. (i) Accounting The Secretary shall collaborate with the Administrator of the Environmental Protection Agency and the heads of other relevant Federal agencies to develop and improve accounting frameworks and tools to accurately measure carbon removal and sequestration methods and technologies.

10. (j) Authorization of appropriations There are authorized to be appropriated to the Secretary to carry out this section—

    1. (1) $175,000,000 for fiscal year 2021, of which—

       1. (A) $15,000,000 shall be used to carry out subsection (e)(2)(A), to remain available until expended; and
       2. (B) $100,000,000 shall be used to carry out subsection (e)(2)(B), to remain available until expended;
    2. (2) $63,500,000 for fiscal year 2022;
    3. (3) $66,150,000 for fiscal year 2023;
    4. (4) $69,458,000 for fiscal year 2024; and
    5. (5) $72,930,000 for fiscal year 2025.

(Pub. L. 109–58, title IX, § 969D, as added Pub. L. 116–260, div. Z, title V, § 5001(a), Dec. 27, 2020, 134 Stat. 2547.)

Application

Provisions of section 3212 of this title applicable to construction, alteration, or repair work of demonstration projects funded by grants or contracts authorized under this section, see section 9006(b) of div. Z of Pub. L. 116–260, set out as a note under section 16237 of this title.