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1 [1] (November 29, 2024)

handle is hein.crs/goverlb0001 and id is 1 raw text is: Congressional Research Service Informing the Iegisl9tive debate since 1914 0 Updated November 29, 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 In Focus summarizes recent authorizations and appropriations for these activities. Background CCS is a process that is envisioned to capture human- generated carbon dioxide (C02) at its source and store it underground to prevent its release to the atmosphere. Captured carbon can also be utilized 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 it can also 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. CCS equipment can reduce CO2 emissions from point sources (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 Author at ons DOE's carbon capture R&D activities date back to at least 1997 and have historically centered on two components: 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 technological maturity, and to continue funding carbon storage projects. Funded carbon capture projects must be applied 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 Investment and obs 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 (Table 1) including funding for 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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