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June 16, 2021
Funding for Carbon Capture and Carbon Removal at DOE

Federally funded research and development (R&D) on
carbon capture and carbon removal is supported primarily
by the U.S. Department of Energy (DOE). In the Energy
Act of 2020 (Division Z of P.L. 116-260), Congress
authorized an expanded scope for DOE carbon capture and
carbon removal research programs. The President's budget
request for fiscal year 2022 (FY2022) likewise proposed
expanding DOE's activities in these areas compared to
previous years. This analysis summarizes these proposed
changes and provides information on FY2021 and FY2022
appropriations.
Background
Carbon capture and storage (CCS, sometimes called carbon
capture and sequestration) is a process that is envisioned to
capture man-made carbon dioxide (C02) at its source and
store it underground to prevent its release to the
atmosphere. Captured carbon also can be used in products,
as opposed to being stored underground, in a process called
carbon capture, utilization, and storage (CCUS). Carbon
dioxide removal (CDR, sometimes called carbon removal
or negative emissions technologies) is a suite of
technologies and practices that aim to remove CO2 from the
atmosphere and store it underground or in living organisms.
CDR often involves natural CO2 sinks like forests and
croplands, but also can involve technologies like direct air
capture (DAC). Further discussion of some of these
technologies and historical appropriations for related DOE
R&D activities is provided in CRS Report R44902, Carbon
Capture and Sequestration (CCS) in the United States.
CCS (with or without utilization) and CDR both are viewed
as potential options to address climate change, though they
address different aspects of the issue. CCS equipment can
reduce CO2 emissions from point sources that use fossil
fuels (e.g., power plants or other industrial facilities),
potentially resulting in carbon neutral facilities if 100% of
the emissions are captured. DAC facilities can be located
anywhere and can be potentially carbon negative if the
DAC process uses non-emitting energy sources. CDR
involving living organisms (e.g., based on agricultural soils
or forestry practices) is often site-constrained by habitat and
related factors.
FY202 I Appropriations
Among other provisions, the Energy and Water
Development and Related Agencies Appropriations Act,
2021 (Division D of P.L. 116-260) provided regular
appropriations for FY2021 for ongoing R&D activities
within DOE. Most of DOE's CCUS research is funded
through its Fossil Energy program. According to tables in
the explanatory statement for the appropriations act,
Congress provided $228.3 million to CCUS line items for
FY2021. (See Table 1.) These appropriations are lower

than the FY2021 authorized amounts in other divisions of
the law (as discussed in the Energy Act of 2020
Authorizations section below.)
The explanatory statement provides at least $72.5 million of
DOE's appropriated funds for R&D on CDR (which it
referred to as negative emissions technologies) in three
DOE programs:
* within Fossil Energy, not less than $40.0 million,
including not less than $15.0 million for DAC;
* within Energy Efficiency and Renewable Energy, not
less than $10.0 million for DAC; and
* within Science, not less than $22.5 million, including
not less than $7.5 million for DAC.
Energy Act of 2020 Authorizations
DOE's carbon capture R&D activities date back to at least
1997 and historically centered on two aspects: carbon
capture technology for coal-fired power plants and
underground geologic storage reservoirs. In recent
appropriations reports, Congress recommended that DOE
expand its focus to include carbon capture for other sources
and some types of CDR.
Congress codified these and other objectives for DOE's
carbon capture and carbon removal R&D in P.L. 116-260,
the first major amendments to DOE's statutory R&D
program objectives since 2007. Most authorizations are
provided by the Energy Act of 2020. The USE IT Act
(enacted as part of Division S of P.L. 116-260) provided
additional guidance for DOE carbon utilization R&D.
The Energy Act of 2020 provides policy direction for
DOE's CCUS R&D activities in Title IV-Carbon
Management. Sections 4002, 4003, and 4004 address
carbon capture, carbon storage, and carbon utilization,
respectively. In part, the law directs DOE to fund carbon
capture demonstration projects at varying stages of
technology maturity, and to continue funding carbon
storage projects. Funded carbon capture projects must apply
to different types of facilities, such as natural gas-fired
power plants and facilities outside the power sector. The
law also directs DOE to fund research to identify novel uses
of carbon and CO2.
DOE's CCUS R&D activities pursuant to Title IV-Carbon
Management are authorized at $1,284.0 million in FY2021;
$1,285.3 million in FY2022; $1,131.6 million in FY2023;
$1,132.9 million in FY2024; and $1,084.4 million in
FY2025 (all values rounded to the nearest tenth).

ittps://Crsreports.congress.gt

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