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Congressional Research Service
Informing the Iegislative debate since 1914


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                                                                                        Updated January 19, 2024
DOE's Carbon Capture and Storage (CCS) and Carbon

Removal Programs


Federally funded research and development (R&D) on
carbon capture and storage (CCS) and carbon removal is
supported primarily by the U.S. Department of Energy
(DOE). This analysis summarizes recent authorizations and
appropriations for these activities.

Background
CCS  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 low-carbon facilities. 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.

Program 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 appropriations
reports leading up to 2020, 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 (Division Z of P.L.
116-260). 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 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).

The Energy Act of 2020 provides policy direction for
DOE's  CDR  R&D   activities in Title V-Carbon Removal.
Section 5001 establishes a new DOE research program on
CDR,  to be coordinated with the U.S. Department of
Agriculture and other relevant federal agencies. Section
5001 identifies six CDR options DOE should support:
DAC,  bioenergy with CCS, enhanced geological
weathering, agricultural practices, forest management and
afforestation, and planned or managed carbon sinks.
Section 5001 also establishes Air Capture Prize
Competitions for two classes of DAC. The larger
competition, for more mature technologies, is authorized at
$100 million (available until expended) and may award
eligible facilities up to $180 per ton of CO2 captured and
stored. The awards are to be smaller if the captured CO2 is
utilized, including for enhanced oil recovery. DOE's CDR
R&D   activities pursuant to Title V are authorized at $175.0
million in FY2021 (of which $115.0 million is for DAC
prize competitions, to remain available until expended);
$63.5 million in FY2022; $66.2 million in FY2023; $69.5
million in FY2024; and $72.9 million in FY2025 (all values
rounded to the nearest tenth).

Infrastructure i-vestment and jobs Act
The Infrastructure Investment and Jobs Act (IIJA; P.L. 117-
58) made additional amendments to DOE's CCS  and CDR
programs, established several new programs, and provided
supplemental appropriations for FY2022-FY2026 including
funding some programs authorized by the Energy Act of
2020.

In particular, IIJA established the Carbon Dioxide
Transportation Infrastructure Finance and Innovation
Program  (CIFIA). CIFIA is to provide low-interest loans
for eligible CO2 pipeline projects and grants for initial
excess capacity on eligible new pipelines. CIFIA aims to

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