HR2454 and S1733 - CCS

Produced: 10/15/2009 4:30:06 PM by Nick Santos, 1Sky Policy Staff

H.R. 2454		S. 1733
Subtitle B--Carbon Capture and Sequestration	=	Subtitle B--Carbon Capture and Sequestration
SEC. 111. NATIONAL STRATEGY.	<>	SEC. 121. NATIONAL STRATEGY.
(a) In General- Not later than 1 year after the date of enactment of this Act, the Administrator, in consultation with the Secretary of Energy, the Secretary of the Interior, and the heads of such other relevant Federal agencies as the President may designate, shall submit to Congress a report setting forth a unified and comprehensive strategy to address the key legal, regulatory and other barriers to the commercial-scale deployment of carbon capture and sequestration.		(a) In General- Not later than 1 year after the date of enactment of this Act, the Administrator, in consultation with the Secretary of Energy, the Secretary of the Interior, and the heads of such other relevant Federal agencies as the President may designate, shall submit to Congress a report establishing a unified and comprehensive strategy to address the key legal, regulatory, and other barriers to the commercial-scale deployment of carbon capture and storage.
(b) Barriers- The report under this section shall--	=	(b) Barriers- The report under this section shall--
	<>	(1) identify the regulatory, legal, and other gaps and barriers that--
		(A) could be addressed by a Federal agency using existing statutory authority;
		(B) require Federal legislation, if any; or
		(C) would be best addressed at the State, tribal, or regional level;
(1) identify those regulatory, legal, and other gaps and barriers that could be addressed by a Federal agency using existing statutory authority, those, if any, that require Federal legislation, and those that would be best addressed at the State, tribal, or regional level;
(2) identify regulatory implementation challenges, including those related to approval of State and tribal programs and delegation of authority for permitting; and		(2) identify regulatory implementation challenges, including challenges relating to approval of State and tribal programs and delegation of authority for permitting; and
(3) recommend rulemakings, Federal legislation, or other actions that should be taken to further evaluate and address such barriers.		(3) recommend rulemakings, Federal legislation, or other actions that should be taken to further evaluate and address those barriers.
		(c) Finding- Congress finds that it is in the public interest to achieve widespread, commercial-scale deployment of carbon capture and storage in the United States and throughout Asia before January 1, 2030.
SEC. 112. REGULATIONS FOR GEOLOGIC SEQUESTRATION SITES.		SEC. 122. REGULATIONS FOR GEOLOGICAL SEQUESTRATION SITES.
(a) Coordinated Certification and Permitting Process- Title VIII of the Clean Air Act, as added by section 331 of this Act, is amended by adding after section 812 (as added by section 116 of this Act) the following:		(a) Coordinated Certification and Permitting Process- Part A of title VIII of the Clean Air Act (as amended by section 124 of this division) is amended by adding at the end the following:
SEC. 813. GEOLOGIC SEQUESTRATION SITES.		SEC. 813. GEOLOGICAL STORAGE SITES.
(a) Coordinated Process- The Administrator shall establish a coordinated approach to certifying and permitting geologic sequestration, taking into consideration all relevant statutory authorities. In establishing such approach, the Administrator shall--		(a) Coordinated Process-
		(1) IN GENERAL- The Administrator shall establish a coordinated approach to certifying and permitting geological storage, taking into consideration all relevant statutory authorities.
		(2) REQUIREMENTS- In establishing such approach, the Administrator shall--
(1) take into account, and reduce redundancy with, the requirements of section 1421 of the Safe Drinking Water Act (42 U.S.C. 300h), as amended by section 112(b) of the American Clean Energy and Security Act of 2009, including the rulemaking for geologic sequestration wells described at 73 Fed. Reg. 43491-541 (July 25, 2008); and		(A) take into account, and reduce redundancy with, the requirements of section 1421 of the Safe Drinking Water Act (42 U.S.C. 300h), including the rulemaking for geological storage wells described in the proposed rule entitled Federal Requirements Under the Underground Injection Control (UIC) Program for Carbon Dioxide (CO2) Geologic Sequestration (GS) Wells' (73 Fed. Reg. 43492 (July 25, 2008)); and
(2) to the extent practicable, reduce the burden on certified entities and implementing authorities.		(B) to the maximum extent practicable, reduce the burden on certified entities and implementing authorities.
(b) Regulations- Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations to protect human health and the environment by minimizing the risk of escape to the atmosphere of carbon dioxide injected for purposes of geologic sequestration.		(b) Regulations- Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations to protect human health and the environment by minimizing the risk of escape to the atmosphere of carbon dioxide injected for purposes of geological storage.
(c) Requirements- The regulations under subsection (b) shall include--	=	(c) Requirements- The regulations under subsection (b) shall include--
(1) a process to obtain certification for geologic sequestration under this section; and	<>	(1) a process to obtain certification for geological storage under this section; and
(2) requirements for--	=	(2) requirements for--
(A) monitoring, record keeping, and reporting for emissions associated with injection into, and escape from, geologic sequestration sites, taking into account any requirements or protocols developed under section 713;	<>	(A) monitoring, recordkeeping, and reporting for emissions associated with injection into, and escape from, geological storage sites, taking into account any requirements or protocols developed under section 713;
(B) public participation in the certification process that maximizes transparency;	=	(B) public participation in the certification process that maximizes transparency;
(C) the sharing of data between States, Indian tribes, and the Environmental Protection Agency; and	<>	(C) the sharing of data among States, Indian tribes, and the Environmental Protection Agency; and
(D) other elements or safeguards necessary to achieve the purpose set forth in subsection (b).		(D) other elements or safeguards necessary to achieve the purpose described in subsection (b).
(d) Report- Not later than 2 years after the promulgation of regulations under subsection (b), and at 3-year intervals thereafter, the Administrator shall deliver to the Committee on Energy and Commerce of the House of Representatives and the Committee on Environment and Public Works of the Senate a report on geologic sequestration in the United States, and, to the extent relevant, other countries in North America. Such report shall include--		(d) Report-
		(1) IN GENERAL- Not later than 2 years after the date of promulgation of regulations pursuant to subsection (b), and not less frequently than once every 3 years thereafter, the Administrator shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Environment and Public Works of the Senate a report describing geological storage in the United States, and, to the extent relevant, other countries in North America.
		(2) INCLUSIONS- Each report under paragraph (1) shall include--
(1) data regarding injection, emissions to the atmosphere, if any, and performance of active and closed geologic sequestration sites, including those where enhanced hydrocarbon recovery operations occur;		(A) data regarding injection, emissions to the atmosphere, if any, and performance of active and closed geological storage sites, including those at which enhanced hydrocarbon recovery operations occur;
(2) an evaluation of the performance of relevant Federal environmental regulations and programs in ensuring environmentally protective geologic sequestration practices;		(B) an evaluation of the performance of relevant Federal environmental regulations and programs in ensuring environmentally protective geological storage practices;
(3) recommendations on how such programs and regulations should be improved or made more effective; and		(C) recommendations on how those programs and regulations should be improved or made more effective; and
(4) other relevant information.'.		(D) other relevant information.'.
(b) Safe Drinking Water Act Standards- Section 1421 of the Safe Drinking Water Act (42 U.S.C. 300h) is amended by inserting after subsection (d) the following:		(b) Safe Drinking Water Act Standards- Section 1421 of the Safe Drinking Water Act (42 U.S.C. 300h) is amended by adding at the end the following:
(e) Carbon Dioxide Geologic Sequestration Wells-		(e) Carbon Dioxide Geological Storage Wells-
(1) IN GENERAL- Not later than 1 year after the date of enactment of this subsection, the Administrator shall promulgate regulations under subsection (a) for carbon dioxide geologic sequestration wells.		(1) IN GENERAL- Not later than 1 year after the date of enactment of this subsection, the Administrator shall promulgate regulations under subsection (a) for carbon dioxide geological storage wells.
(2) FINANCIAL RESPONSIBILITY- The regulations referred to in paragraph (1) shall include requirements for maintaining evidence of financial responsibility, including financial responsibility for emergency and remedial response, well plugging, site closure, and post-injection site care. Financial responsibility may be established for carbon dioxide geologic sequestration wells in accordance with regulations promulgated by the Administrator by any one, or any combination, of the following: insurance, guarantee, trust, standby trust, surety bond, letter of credit, qualification as a self-insurer, or any other method satisfactory to the Administrator.'.		(2) FINANCIAL RESPONSIBILITY-
		(A) IN GENERAL- The regulations under paragraph (1) shall include requirements for maintaining evidence of financial responsibility, including financial responsibility for emergency and remedial response, well plugging, site closure, and post-injection site care.
		(B) REGULATIONS- Financial responsibility may be established for carbon dioxide geological wells in accordance with regulations promulgated by the Administrator by any 1, or any combination, of the following:
		(i) Insurance.
		(ii) Guarantee.
		(iii) Trust.
		(iv) Standby trust.
		(v) Surety bond.
		(vi) Letter of credit.
		(vii) Qualification as a self-insurer.
		(viii) Any other method satisfactory to the Administrator.'.
SEC. 113. STUDIES AND REPORTS.		SEC. 123. STUDIES AND REPORTS.
(a) Study of Legal Framework for Geologic Sequestration Sites-		(a) Study of Legal Framework for Geological Storage Sites-
(1) ESTABLISHMENT OF TASK FORCE- As soon as practicable, but not later than 6 months after the date of enactment of this Act, the Administrator shall establish a task force to be composed of an equal number of subject matter experts, nongovernmental organizations with expertise in environmental policy, academic experts with expertise in environmental law, State and tribal officials with environmental expertise, representatives of State and tribal Attorneys General, representatives from the Environmental Protection Agency, the Department of the Interior, the Department of Energy, the Department of Transportation, and other relevant Federal agencies, and members of the private sector, to conduct a study of--		(1) ESTABLISHMENT OF TASK FORCE-
		(A) IN GENERAL- As soon as practicable, but not later than 180 days after the date of enactment of this Act, the Administrator shall establish a task force, to be composed of an equal number of--
		(i) subject matter experts;
		(ii) nongovernmental organizations with expertise regarding environmental policy;
		(iii) academic experts with expertise in environmental law;
		(iv) State and tribal officials with environmental expertise;
		(v) representatives of State and tribal attorneys general;
		(vi) representatives of the Environmental Protection Agency, the Department of the Interior, the Department of Energy, the Department of Transportation, and other relevant Federal agencies; and
		(vii) members of the private sector.
		(B) STUDY- The task force established under subparagraph (A) shall conduct a study of--
(A) existing Federal environmental statutes, State environmental statutes, and State common law that apply to geologic sequestration sites for carbon dioxide, including the ability of such laws to serve as risk management tools;		(i) existing Federal environmental statutes, State environmental statutes, and State common law that apply to geological storage sites for carbon dioxide, including the ability of those laws to serve as risk management tools;
(B) the existing statutory framework, including Federal and State laws, that apply to harm and damage to the environment or public health at closed sites where carbon dioxide injection has been used for enhanced hydrocarbon recovery;		(ii) the existing statutory framework, including Federal and State laws, that apply to harm and damage to the environment or public health at closed sites at which carbon dioxide injection has been used for enhanced hydrocarbon recovery;
(C) the statutory framework, environmental health and safety considerations, implementation issues, and financial implications of potential models for Federal, State, or private sector assumption of liabilities and financial responsibilities with respect to closed geologic sequestration sites;		(iii) the statutory framework, environmental health and safety considerations, implementation issues, and financial implications of potential models for Federal, State, or private sector assumption of liabilities and financial responsibilities with respect to closed geological storage sites;
(D) private sector mechanisms, including insurance and bonding, that may be available to manage environmental, health and safety risk from closed geologic sequestration sites; and		(iv) private sector mechanisms, including insurance and bonding, that may be available to manage environmental, health, and safety risks from closed geological storage sites; and
(E) the subsurface mineral rights, water rights, or property rights issues associated with geologic sequestration of carbon dioxide, including issues specific to Federal lands.		(v) the subsurface mineral rights, water rights, and property rights issues associated with geological storage of carbon dioxide, including issues specific to Federal land.
(2) REPORT- Not later than 18 months after the date of enactment of this Act, the task force established under paragraph (1) shall submit to Congress a report describing the results of the study conducted under that paragraph including any consensus recommendations of the task force.		(2) REPORT- Not later than 18 months after the date of enactment of this Act, the task force established under paragraph (1)(A) shall submit to Congress a report describing the results of the study conducted under that paragraph, including any consensus recommendations of the task force.
(b) Environmental Statutes-	=	(b) Environmental Statutes-
(1) STUDY- The Administrator shall conduct a study examining how, and under what circumstances, the environmental statutes for which the Environmental Protection Agency has responsibility would apply to carbon dioxide injection and geologic sequestration activities.	<>	(1) STUDY- The Administrator shall conduct a study of the means by which, and under what circumstances, the environmental statutes for which the Environmental Protection Agency has responsibility would apply to carbon dioxide injection and geological storage activities.
(2) REPORT- Not later than 1 year after the date of enactment of this Act, the Administrator shall submit to Congress a report describing the results of the study conducted under paragraph (1).	=	(2) REPORT- Not later than 1 year after the date of enactment of this Act, the Administrator shall submit to Congress a report describing the results of the study conducted under paragraph (1).
*Note: This section has been moved from the bottom of this section to here for alignment*	<>
SEC. 116. PERFORMANCE STANDARDS FOR COAL-FUELED POWER PLANTS.		SEC. 124. PERFORMANCE STANDARDS FOR COAL-FUELED POWER PLANTS.
(a) In General- Title VIII of the Clean Air Act (as added by section 331 of this Act) is amended by adding the following new section after section 811:		(a) In General- Part A of title VIII of the Clean Air Act (as added by section 121 of division B) is amended by adding at the end the following:
SEC. 812. PERFORMANCE STANDARDS FOR NEW COAL-FIRED POWER PLANTS.	=	SEC. 812. PERFORMANCE STANDARDS FOR NEW COAL-FIRED POWER PLANTS.
(a) Definitions- For purposes of this section:		(a) Definitions- For purposes of this section:
(1) COVERED EGU- The term covered EGU' means a utility unit that is required to have a permit under section 503(a) and is authorized under state or federal law to derive at least 30 percent of its annual heat input from coal, petroleum coke, or any combination of these fuels.		(1) COVERED EGU- The term covered EGU' means a utility unit that is required to have a permit under section 503(a) and is authorized under State or Federal law to derive at least 30 percent of its annual heat input from coal, petroleum coke, or any combination of these fuels.
(2) INITIALLY PERMITTED- The term initially permitted' means that the owner or operator has received a Clean Air Act preconstruction approval or permit, for the covered EGU as a new (not a modified) source, but administrative review or appeal of such approval or permit has not been exhausted. A subsequent modification of any such approval or permits, ongoing administrative or court review, appeals, or challenges, or the existence or tolling of any time to pursue further review, appeals, or challenges shall not affect the date on which a covered EGU is considered to be initially permitted under this paragraph.	<>	(2) INITIALLY PERMITTED- The term initially permitted' means that the owner or operator has received a preconstruction approval or permit under this Act, for the covered EGU as a new (not a modified) source, but administrative review or appeal of such approval or permit has not been exhausted. A subsequent modification of any such approval or permits, ongoing administrative or court review, appeals, or challenges, or the existence or tolling of any time to pursue further review, appeals, or challenges shall not affect the date on which a covered EGU is considered to be initially permitted under this paragraph.
(b) Standards- (1) A covered EGU that is initially permitted on or after January 1, 2020, shall achieve an emission limit that is a 65 percent reduction in emissions of the carbon dioxide produced by the unit, as measured on an annual basis, or meet such more stringent standard as the Administrator may establish pursuant to subsection (c).	=	(b) Standards- (1) A covered EGU that is initially permitted on or after January 1, 2020, shall achieve an emission limit that is a 65 percent reduction in emissions of the carbon dioxide produced by the unit, as measured on an annual basis, or meet such more stringent standard as the Administrator may establish pursuant to subsection (c).
(2) A covered EGU that is initially permitted after January 1, 2009, and before January 1, 2020, shall, by the applicable compliance date established under this paragraph, achieve an emission limit that is a 50 percent reduction in emissions of the carbon dioxide produced by the unit, as measured on an annual basis. Compliance with the requirement set forth in this paragraph shall be required by the earliest of the following:		(2) A covered EGU that is initially permitted after January 1, 2009, and before January 1, 2020, shall, by the applicable compliance date established under this paragraph, achieve an emission limit that is a 50 percent reduction in emissions of the carbon dioxide produced by the unit, as measured on an annual basis. Compliance with the requirement set forth in this paragraph shall be required by the earliest of the following:
(A) Four years after the date the Administrator has published pursuant to subsection (d) a report that there are in commercial operation in the United States electric generating units or other stationary sources equipped with carbon capture and sequestration technology that, in the aggregate--		(A) Four years after the date the Administrator has published pursuant to subsection (d) a report that there are in commercial operation in the United States electric generating units or other stationary sources equipped with carbon capture and sequestration technology that, in the aggregate--
(i) have a total of at least 4 gigawatts of nameplate generating capacity of which--		(i) have a total of at least 4 gigawatts of nameplate generating capacity of which--
(I) at least 3 gigawatts must be electric generating units; and		(I) at least 3 gigawatts must be electric generating units; and
(II) up to 1 gigawatt may be industrial applications, for which capture and sequestration of 3 million tons of carbon dioxide per year on an aggregate annualized basis shall be considered equivalent to 1 gigawatt;	<>	(II) up to 1 gigawatt may be industrial applications, for which capture and sequestration of 3,000,000 tons of carbon dioxide per year on an aggregate annualized basis shall be considered equivalent to 1 gigawatt;
(ii) include at least 2 electric generating units, each with a nameplate generating capacity of 250 megawatts or greater, that capture, inject, and sequester carbon dioxide into geologic formations other than oil and gas fields; and	=	(ii) include at least 2 electric generating units, each with a nameplate generating capacity of 250 megawatts or greater, that capture, inject, and sequester carbon dioxide into geologic formations other than oil and gas fields; and
(iii) are capturing and sequestering in the aggregate at least 12 million tons of carbon dioxide per year, calculated on an aggregate annualized basis.	<>	(iii) are capturing and sequestering in the aggregate at least 12,000,000 tons of carbon dioxide per year, calculated on an aggregate annualized basis.
(B) January 1, 2025.	=	(B) January 1, 2025.
(3) If the deadline for compliance with paragraph (2) is January 1, 2025, the Administrator may extend the deadline for compliance by a covered EGU by up to 18 months if the Administrator makes a determination, based on a showing by the owner or operator of the unit, that it will be technically infeasible for the unit to meet the standard by the deadline. The owner or operator must submit a request for such an extension by no later than January 1, 2022, and the Administrator shall provide for public notice and comment on the extension request.		(3) If the deadline for compliance with paragraph (2) is January 1, 2025, the Administrator may extend the deadline for compliance by a covered EGU by up to 18 months if the Administrator makes a determination, based on a showing by the owner or operator of the unit, that it will be technically infeasible for the unit to meet the standard by the deadline. The owner or operator must submit a request for such an extension by no later than January 1, 2022, and the Administrator shall provide for public notice and comment on the extension request.
(c) Review and Revision of Standards- Not later than 2025 and at 5-year intervals thereafter, the Administrator shall review the standards for new covered EGUs under this section and shall, by rule, reduce the maximum carbon dioxide emission rate for new covered EGUs to a rate which reflects the degree of emission limitation achievable through the application of the best system of emission reduction which (taking into account the cost of achieving such reduction and any nonair quality health and environmental impact and energy requirements) the Administrator determines has been adequately demonstrated.		(c) Review and Revision of Standards- Not later than 2025 and at 5-year intervals thereafter, the Administrator shall review the standards for new covered EGUs under this section and shall, by rule, reduce the maximum carbon dioxide emission rate for new covered EGUs to a rate which reflects the degree of emission limitation achievable through the application of the best system of emission reduction which (taking into account the cost of achieving such reduction and any nonair quality health and environmental impact and energy requirements) the Administrator determines has been adequately demonstrated.
(d) Reports- Not later than the date 18 months after the date of enactment of this title and semiannually thereafter, the Administrator shall publish a report on the nameplate capacity of units (determined pursuant to subsection (b)(2)(A)) in commercial operation in the United States equipped with carbon capture and sequestration technology, including the information described in subsection (b)(2)(A) (including the cumulative generating capacity to which carbon capture and sequestration retrofit projects meeting the criteria described in section 786(b)(1)(A)(ii) and (b)(1)(A)(iv)(II) has been applied and the quantities of carbon dioxide captured and sequestered by such projects).	<>	(d) Reports- Not later than 18 months after the date of enactment of this title and semiannually thereafter, the Administrator shall publish a report on the nameplate capacity of units (determined pursuant to subsection (b)(2)(A)) in commercial operation in the United States equipped with carbon capture and sequestration technology, including the information described in subsection (b)(2)(A) (including the cumulative generating capacity to which carbon capture and sequestration retrofit projects meeting the criteria described in section 775(b)(1)(A)(ii) and (b)(1)(A)(iv)(II) has been applied and the quantities of carbon dioxide captured and sequestered by such projects).
(e) Regulations- Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations to carry out the requirements of this section.'.	=	(e) Regulations- Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations to carry out the requirements of this section.'.
* END Section MOVE *	<>
SEC. 114. CARBON CAPTURE AND SEQUESTRATION DEMONSTRATION AND EARLY DEPLOYMENT PROGRAM.		SEC. 125. CARBON CAPTURE AND SEQUESTRATION DEMONSTRATION AND EARLY DEPLOYMENT PROGRAM.
(a) Definitions- For purposes of this section:	=	(a) Definitions- For purposes of this section:
(1) SECRETARY- The term Secretary' means the Secretary of Energy.		(1) SECRETARY- The term Secretary' means the Secretary of Energy.
(2) DISTRIBUTION UTILITY- The term distribution utility' means an entity that distributes electricity directly to retail consumers under a legal, regulatory, or contractual obligation to do so.		(2) DISTRIBUTION UTILITY- The term distribution utility' means an entity that distributes electricity directly to retail consumers under a legal, regulatory, or contractual obligation to do so.
(3) ELECTRIC UTILITY- The term electric utility' has the meaning provided by section 3(22) of the Federal Power Act (16 U.S.C. 796(22)).	<>	(3) ELECTRIC UTILITY- The term electric utility' has the meaning provided by section 3 of the Federal Power Act (16 U.S.C. 796).
(4) FOSSIL FUEL-BASED ELECTRICITY- The term fossil fuel-based electricity' means electricity that is produced from the combustion of fossil fuels.	=	(4) FOSSIL FUEL-BASED ELECTRICITY- The term fossil fuel-based electricity' means electricity that is produced from the combustion of fossil fuels.
(5) FOSSIL FUEL- The term fossil fuel' means coal, petroleum, natural gas or any derivative of coal, petroleum, or natural gas.		(5) FOSSIL FUEL- The term fossil fuel' means coal, petroleum, natural gas or any derivative of coal, petroleum, or natural gas.
(6) CORPORATION- The term Corporation' means the Carbon Storage Research Corporation established in accordance with this section.		(6) CORPORATION- The term Corporation' means the Carbon Storage Research Corporation established in accordance with this section.
(7) QUALIFIED INDUSTRY ORGANIZATION- The term qualified industry organization' means the Edison Electric Institute, the American Public Power Association, the National Rural Electric Cooperative Association, a successor organization of such organizations, or a group of owners or operators of distribution utilities delivering fossil fuel-based electricity who collectively represent at least 20 percent of the volume of fossil fuel-based electricity delivered by distribution utilities to consumers in the United States.		(7) QUALIFIED INDUSTRY ORGANIZATION- The term qualified industry organization' means the Edison Electric Institute, the American Public Power Association, the National Rural Electric Cooperative Association, a successor organization of such organizations, or a group of owners or operators of distribution utilities delivering fossil fuel-based electricity who collectively represent at least 20 percent of the volume of fossil fuel-based electricity delivered by distribution utilities to consumers in the United States.
(8) RETAIL CONSUMER- The term retail consumer' means an end-user of electricity.		(8) RETAIL CONSUMER- The term retail consumer' means an end-user of electricity.
(b) Carbon Storage Research Corporation-		(b) Carbon Storage Research Corporation-
(1) ESTABLISHMENT-		(1) ESTABLISHMENT-
(A) REFERENDUM- Qualified industry organizations may conduct, at their own expense, a referendum among the owners or operators of distribution utilities delivering fossil fuel-based electricity for the creation of a Carbon Storage Research Corporation. Such referendum shall be conducted by an independent auditing firm agreed to by the qualified industry organizations. Voting rights in such referendum shall be based on the quantity of fossil fuel-based electricity delivered to consumers in the previous calendar year or other representative period as determined by the Secretary pursuant to subsection (f). Upon approval of those persons representing two-thirds of the total quantity of fossil fuel-based electricity delivered to retail consumers, the Corporation shall be established unless opposed by the State regulatory authorities pursuant to subparagraph (B). All distribution utilities voting in the referendum shall certify to the independent auditing firm the quantity of fossil fuel-based electricity represented by their vote.		(A) REFERENDUM- Qualified industry organizations may conduct, at their own expense, a referendum among the owners or operators of distribution utilities delivering fossil fuel-based electricity for the creation of a Carbon Storage Research Corporation. Such referendum shall be conducted by an independent auditing firm agreed to by the qualified industry organizations. Voting rights in such referendum shall be based on the quantity of fossil fuel-based electricity delivered to consumers in the previous calendar year or other representative period as determined by the Secretary pursuant to subsection (f). Upon approval of those persons representing two-thirds of the total quantity of fossil fuel-based electricity delivered to retail consumers, the Corporation shall be established unless opposed by the State regulatory authorities pursuant to subparagraph (B). All distribution utilities voting in the referendum shall certify to the independent auditing firm the quantity of fossil fuel-based electricity represented by their vote.
(B) STATE REGULATORY AUTHORITIES- Upon its own motion or the petition of a qualified industry organization, each State regulatory authority shall consider its support or opposition to the creation of the Corporation under subparagraph (A). State regulatory authorities may notify the independent auditing firm referred to in subparagraph (A) of their views on the creation of the Corporation within 180 days after the date of enactment of this Act. If 40 percent or more of the State regulatory authorities submit to the independent auditing firm written notices of opposition, the Corporation shall not be established notwithstanding the approval of the qualified industry organizations as provided in subparagraph (A).		(B) STATE REGULATORY AUTHORITIES- Upon its own motion or the petition of a qualified industry organization, each State regulatory authority shall consider its support or opposition to the creation of the Corporation under subparagraph (A). State regulatory authorities may notify the independent auditing firm referred to in subparagraph (A) of their views on the creation of the Corporation within 180 days after the date of enactment of this Act. If 40 percent or more of the State regulatory authorities submit to the independent auditing firm written notices of opposition, the Corporation shall not be established notwithstanding the approval of the qualified industry organizations as provided in subparagraph (A).
(2) TERMINATION- The Corporation shall be authorized to collect assessments and conduct operations pursuant to this section for a 10-year period from the date 6 months after the date of enactment of this Act. After such 10-year period, the Corporation is no longer authorized to collect assessments and shall be dissolved on the date 15 years after such date of enactment, unless the period is extended by an Act of Congress.		(2) TERMINATION- The Corporation shall be authorized to collect assessments and conduct operations pursuant to this section for a 10-year period from the date 6 months after the date of enactment of this Act. After such 10-year period, the Corporation is no longer authorized to collect assessments and shall be dissolved on the date 15 years after such date of enactment, unless the period is extended by an Act of Congress.
(3) GOVERNANCE- The Corporation shall operate as a division or affiliate of the Electric Power Research Institute (referred to in this section as EPRI') and be managed by a Board of not more than 15 voting members responsible for its operations, including compliance with this section. EPRI, in consultation with the Edison Electric Institute, the American Public Power Association and the National Rural Electric Cooperative Association shall appoint the Board members under clauses (i), (ii), and (iii) of subparagraph (A) from among candidates recommended by those organizations. At least a majority of the Board members appointed by EPRI shall be representatives of distribution utilities subject to assessments under subsection (d).		(3) GOVERNANCE- The Corporation shall operate as a division or affiliate of the Electric Power Research Institute (referred to in this section as EPRI') and be managed by a Board of not more than 15 voting members responsible for its operations, including compliance with this section. EPRI, in consultation with the Edison Electric Institute, the American Public Power Association and the National Rural Electric Cooperative Association shall appoint the Board members under clauses (i), (ii), and (iii) of subparagraph (A) from among candidates recommended by those organizations. At least a majority of the Board members appointed by EPRI shall be representatives of distribution utilities subject to assessments under subsection (d).
(A) MEMBERS- The Board shall include at least one representative of each of the following:	<>	(A) MEMBERS- The Board shall include at least 1 representative of each of the following:
(i) Investor-owned utilities.	=	(i) Investor-owned utilities.
(ii) Utilities owned by a State agency, a municipality, and an Indian tribe.		(ii) Utilities owned by a State agency, a municipality, and an Indian tribe.
(iii) Rural electric cooperatives.		(iii) Rural electric cooperatives.
(iv) Fossil fuel producers.		(iv) Fossil fuel producers.
(v) Nonprofit environmental organizations.		(v) Nonprofit environmental organizations.
(vi) Independent generators or wholesale power providers.		(vi) Independent generators or wholesale power providers.
(vii) Consumer groups.		(vii) Consumer groups.
	<>	(viii) The National Energy Technology laboratory of the Department of Energy.
		(ix) The Environmental Protection Agency.
(B) NONVOTING MEMBERS- The Board shall also include as additional nonvoting Members the Secretary of Energy or his designee and 2 representatives of State regulatory authorities as defined in section 3(17) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602(17)), each designated by the National Association of State Regulatory Utility Commissioners from States that are not within the same transmission interconnection.		(B) NONVOTING MEMBERS- The Board shall also include as additional nonvoting Members the Secretary of Energy or his designee and 2 representatives of State regulatory authorities as defined in section 3 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602), each designated by the National Association of State Regulatory Utility Commissioners from States that are not within the same transmission interconnection.
(4) COMPENSATION- Corporation Board members shall receive no compensation for their services, nor shall Corporation Board members be reimbursed for expenses relating to their service.	=	(4) COMPENSATION- Corporation Board members shall receive no compensation for their services, nor shall Corporation Board members be reimbursed for expenses relating to their service.
(5) TERMS- Corporation Board members shall serve terms of 4 years and may serve not more than 2 full consecutive terms. Members filling unexpired terms may serve not more than a total of 8 consecutive years. Former members of the Corporation Board may be reappointed to the Corporation Board if they have not been members for a period of 2 years. Initial appointments to the Corporation Board shall be for terms of 1, 2, 3, and 4 years, staggered to provide for the selection of 3 members each year.		(5) TERMS- Corporation Board members shall serve terms of 4 years and may serve not more than 2 full consecutive terms. Members filling unexpired terms may serve not more than a total of 8 consecutive years. Former members of the Corporation Board may be reappointed to the Corporation Board if they have not been members for a period of 2 years. Initial appointments to the Corporation Board shall be for terms of 1, 2, 3, and 4 years, staggered to provide for the selection of 3 members each year.
(6) STATUS OF CORPORATION- The Corporation shall not be considered to be an agency, department, or instrumentality of the United States, and no officer or director or employee of the Corporation shall be considered to be an officer or employee of the United States Government, for purposes of title 5 or title 31 of the United States Code, or for any other purpose, and no funds of the Corporation shall be treated as public money for purposes of chapter 33 of title 31, United States Code, or for any other purpose.		(6) STATUS OF CORPORATION- The Corporation shall not be considered to be an agency, department, or instrumentality of the United States, and no officer or director or employee of the Corporation shall be considered to be an officer or employee of the United States Government, for purposes of title 5 or title 31 of the United States Code, or for any other purpose, and no funds of the Corporation shall be treated as public money for purposes of chapter 33 of title 31, United States Code, or for any other purpose.
(c) Functions and Administration of the Corporation-		(c) Functions and Administration of the Corporation-
(1) IN GENERAL- The Corporation shall establish and administer a program to accelerate the commercial availability of carbon dioxide capture and storage technologies and methods, including technologies which capture and store, or capture and convert, carbon dioxide. Under such program competitively awarded grants, contracts, and financial assistance shall be provided and entered into with eligible entities. Except as provided in paragraph (8), the Corporation shall use all funds derived from assessments under subsection (d) to issue grants and contracts to eligible entities.		(1) IN GENERAL- The Corporation shall establish and administer a program to accelerate the commercial availability of carbon dioxide capture and storage technologies and methods, including technologies which capture and store, or capture and convert, carbon dioxide. Under such program competitively awarded grants, contracts, and financial assistance shall be provided and entered into with eligible entities. Except as provided in paragraph (8), the Corporation shall use all funds derived from assessments under subsection (d) to issue grants and contracts to eligible entities.
(2) PURPOSE- The purposes of the grants, contracts, and assistance under this subsection shall be to support commercial-scale demonstrations of carbon capture or storage technology projects capable of advancing the technologies to commercial readiness. Such projects should encompass a range of different coal and other fossil fuel varieties, be geographically diverse, involve diverse storage media, and employ capture or storage, or capture and conversion, technologies potentially suitable either for new or for retrofit applications. The Corporation shall seek, to the extent feasible, to support at least 5 commercial-scale demonstration projects integrating carbon capture and sequestration or conversion technologies.		(2) PURPOSE- The purposes of the grants, contracts, and assistance under this subsection shall be to support commercial-scale demonstrations of carbon capture or storage technology projects capable of advancing the technologies to commercial readiness. Such projects should encompass a range of different coal and other fossil fuel varieties, be geographically diverse, involve diverse storage media, and employ capture or storage, or capture and conversion, technologies potentially suitable either for new or for retrofit applications. The Corporation shall seek, to the extent feasible, to support at least 5 commercial-scale demonstration projects integrating carbon capture and sequestration or conversion technologies.
(3) ELIGIBLE ENTITIES- Entities eligible for grants, contracts or assistance under this subsection may include distribution utilities, electric utilities and other private entities, academic institutions, national laboratories, Federal research agencies, State and tribal research agencies, nonprofit organizations, or consortiums of 2 or more entities. Pilot-scale and similar small-scale projects are not eligible for support by the Corporation. Owners or developers of projects supported by the Corporation shall, where appropriate, share in the costs of such projects.	<>	(3) ELIGIBLE ENTITIES- Entities eligible for grants, contracts or assistance under this subsection may include distribution utilities, electric utilities and other private entities, academic institutions, national laboratories, Federal research agencies, State and tribal research agencies, nonprofit organizations, or consortiums of 2 or more entities. Pilot-scale and similar small-scale projects are not eligible for support by the Corporation. Owners or developers of projects supported by the Corporation shall, where appropriate, share in the costs of such projects. Projects supported by the Corporation shall meet the eligibility criteria of section 780(b) of the Clean Air Act.
(4) GRANTS FOR EARLY MOVERS- Fifty percent of the funds raised under this section shall be provided in the form of grants to electric utilities that had, prior to the award of any grant under this section, committed resources to deploy a large scale electricity generation unit with integrated carbon capture and sequestration or conversion applied to a substantial portion of the unit's carbon dioxide emissions. Grant funds shall be provided to defray costs incurred by such electricity utilities for at least 5 such electricity generation units.	=	(4) GRANTS FOR EARLY MOVERS- Fifty percent of the funds raised under this section shall be provided in the form of grants to electric utilities that had, prior to the award of any grant under this section, committed resources to deploy a large scale electricity generation unit with integrated carbon capture and sequestration or conversion applied to a substantial portion of the unit's carbon dioxide emissions. Grant funds shall be provided to defray costs incurred by such electricity utilities for at least 5 such electricity generation units.
(5) ADMINISTRATION- The members of the Board of Directors of the Corporation shall elect a Chairman and other officers as necessary, may establish committees and subcommittees of the Corporation, and shall adopt rules and bylaws for the conduct of business and the implementation of this section. The Board shall appoint an Executive Director and professional support staff who may be employees of the Electric Power Research Institute (EPRI). After consultation with the Technical Advisory Committee established under subsection (j), the Secretary, and the Director of the National Energy Technology Laboratory to obtain advice and recommendations on plans, programs, and project selection criteria, the Board shall establish priorities for grants, contracts, and assistance; publish requests for proposals for grants, contracts, and assistance; and award grants, contracts, and assistance competitively, on the basis of merit, after the establishment of procedures that provide for scientific peer review by the Technical Advisory Committee. The Board shall give preference to applications that reflect the best overall value and prospect for achieving the purposes of the section, such as those which demonstrate an integrated approach for capture and storage or capture and conversion technologies. The Board members shall not participate in making grants or awards to entities with whom they are affiliated.		(5) ADMINISTRATION- The members of the Board of Directors of the Corporation shall elect a Chairman and other officers as necessary, may establish committees and subcommittees of the Corporation, and shall adopt rules and bylaws for the conduct of business and the implementation of this section. The Board shall appoint an Executive Director and professional support staff who may be employees of the Electric Power Research Institute (EPRI). After consultation with the Technical Advisory Committee established under subsection (j), the Secretary, and the Director of the National Energy Technology Laboratory to obtain advice and recommendations on plans, programs, and project selection criteria, the Board shall establish priorities for grants, contracts, and assistance; publish requests for proposals for grants, contracts, and assistance; and award grants, contracts, and assistance competitively, on the basis of merit, after the establishment of procedures that provide for scientific peer review by the Technical Advisory Committee. The Board shall give preference to applications that reflect the best overall value and prospect for achieving the purposes of the section, such as those which demonstrate an integrated approach for capture and storage or capture and conversion technologies. The Board members shall not participate in making grants or awards to entities with whom they are affiliated.
(6) USES OF GRANTS, CONTRACTS, AND ASSISTANCE- A grant, contract, or other assistance provided under this subsection may be used to purchase carbon dioxide when needed to conduct tests of carbon dioxide storage sites, in the case of established projects that are storing carbon dioxide emissions, or for other purposes consistent with the purposes of this section. The Corporation shall make publicly available at no cost information learned as a result of projects which it supports financially.		(6) USES OF GRANTS, CONTRACTS, AND ASSISTANCE- A grant, contract, or other assistance provided under this subsection may be used to purchase carbon dioxide when needed to conduct tests of carbon dioxide storage sites, in the case of established projects that are storing carbon dioxide emissions, or for other purposes consistent with the purposes of this section. The Corporation shall make publicly available at no cost information learned as a result of projects which it supports financially.
(7) INTELLECTUAL PROPERTY- The Board shall establish policies regarding the ownership of intellectual property developed as a result of Corporation grants and other forms of technology support. Such policies shall encourage individual ingenuity and invention.		(7) INTELLECTUAL PROPERTY- The Board shall establish policies regarding the ownership of intellectual property developed as a result of Corporation grants and other forms of technology support. Such policies shall encourage individual ingenuity and invention.
(8) ADMINISTRATIVE EXPENSES- Up to 5 percent of the funds collected in any fiscal year under subsection (d) may be used for the administrative expenses of operating the Corporation (not including costs incurred in the determination and collection of the assessments pursuant to subsection (d)).		(8) ADMINISTRATIVE EXPENSES- Up to 5 percent of the funds collected in any fiscal year under subsection (d) may be used for the administrative expenses of operating the Corporation (not including costs incurred in the determination and collection of the assessments pursuant to subsection (d)).
(9) PROGRAMS AND BUDGET- Before August 1 each year, the Corporation, after consulting with the Technical Advisory Committee and the Secretary and the Director of the Department's National Energy Technology Laboratory and other interested parties to obtain advice and recommendations, shall publish for public review and comment its proposed plans, programs, project selection criteria, and projects to be funded by the Corporation for the next calendar year. The Corporation shall also publish for public review and comment a budget plan for the next calendar year, including the probable costs of all programs, projects, and contracts and a recommended rate of assessment sufficient to cover such costs. The Secretary may recommend programs and activities the Secretary considers appropriate. The Corporation shall include in the first publication it issues under this paragraph a strategic plan or roadmap for the achievement of the purposes of the Corporation, as set forth in paragraph (2).		(9) PROGRAMS AND BUDGET- Before August 1 each year, the Corporation, after consulting with the Technical Advisory Committee and the Secretary and the Director of the Department's National Energy Technology Laboratory and other interested parties to obtain advice and recommendations, shall publish for public review and comment its proposed plans, programs, project selection criteria, and projects to be funded by the Corporation for the next calendar year. The Corporation shall also publish for public review and comment a budget plan for the next calendar year, including the probable costs of all programs, projects, and contracts and a recommended rate of assessment sufficient to cover such costs. The Secretary may recommend programs and activities the Secretary considers appropriate. The Corporation shall include in the first publication it issues under this paragraph a strategic plan or roadmap for the achievement of the purposes of the Corporation, as set forth in paragraph (2).
(10) RECORDS; AUDITS- The Corporation shall keep minutes, books, and records that clearly reflect all of the acts and transactions of the Corporation and make public such information. The books of the Corporation shall be audited by a certified public accountant at least once each fiscal year and at such other times as the Corporation may designate. Copies of each audit shall be provided to the Congress, all Corporation board members, all qualified industry organizations, each State regulatory authority and, upon request, to other members of the industry. If the audit determines that the Corporation's practices fail to meet generally accepted accounting principles the assessment collection authority of the Corporation under subsection (d) shall be suspended until a certified public accountant renders a subsequent opinion that the failure has been corrected. The Corporation shall make its books and records available for review by the Secretary or the Comptroller General of the United States.		(10) RECORDS; AUDITS- The Corporation shall keep minutes, books, and records that clearly reflect all of the acts and transactions of the Corporation and make public such information. The books of the Corporation shall be audited by a certified public accountant at least once each fiscal year and at such other times as the Corporation may designate. Copies of each audit shall be provided to the Congress, all Corporation board members, all qualified industry organizations, each State regulatory authority and, upon request, to other members of the industry. If the audit determines that the Corporation's practices fail to meet generally accepted accounting principles the assessment collection authority of the Corporation under subsection (d) shall be suspended until a certified public accountant renders a subsequent opinion that the failure has been corrected. The Corporation shall make its books and records available for review by the Secretary or the Comptroller General of the United States.
(11) PUBLIC ACCESS- The Corporation Board's meetings shall be open to the public and shall occur after at least 30 days advance public notice. Meetings of the Board of Directors may be closed to the public where the agenda of such meetings includes only confidential matters pertaining to project selection, the award of grants or contracts, personnel matters, or the receipt of legal advice. The minutes of all meetings of the Corporation shall be made available to and readily accessible by the public.		(11) PUBLIC ACCESS- The Corporation Board's meetings shall be open to the public and shall occur after at least 30 days advance public notice. Meetings of the Board of Directors may be closed to the public where the agenda of such meetings includes only confidential matters pertaining to project selection, the award of grants or contracts, personnel matters, or the receipt of legal advice. The minutes of all meetings of the Corporation shall be made available to and readily accessible by the public.
(12) ANNUAL REPORT- Each year the Corporation shall prepare and make publicly available a report which includes an identification and description of all programs and projects undertaken by the Corporation during the previous year. The report shall also detail the allocation or planned allocation of Corporation resources for each such program and project. The Corporation shall provide its annual report to the Congress, the Secretary, each State regulatory authority, and upon request to the public. The Secretary shall, not less than 60 days after receiving such report, provide to the President and Congress a report assessing the progress of the Corporation in meeting the objectives of this section.		(12) ANNUAL REPORT- Each year the Corporation shall prepare and make publicly available a report which includes an identification and description of all programs and projects undertaken by the Corporation during the previous year. The report shall also detail the allocation or planned allocation of Corporation resources for each such program and project. The Corporation shall provide its annual report to the Congress, the Secretary, each State regulatory authority, and upon request to the public. The Secretary shall, not less than 60 days after receiving such report, provide to the President and Congress a report assessing the progress of the Corporation in meeting the objectives of this section.
(d) Assessments-		(d) Assessments-
(1) AMOUNT- (A) In all calendar years following its establishment, the Corporation shall collect an assessment on distribution utilities for all fossil fuel-based electricity delivered directly to retail consumers (as determined under subsection (f)). The assessments shall reflect the relative carbon dioxide emission rates of different fossil fuel-based electricity, and initially shall be not less than the following amounts for coal, natural gas, and oil:		(1) AMOUNT- (A) In all calendar years following its establishment, the Corporation shall collect an assessment on distribution utilities for all fossil fuel-based electricity delivered directly to retail consumers (as determined under subsection (f)). The assessments shall reflect the relative carbon dioxide emission rates of different fossil fuel-based electricity, and initially shall be not less than the following amounts for coal, natural gas, and oil:
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Fuel type Rate of assessment per kilowatt hour		Fuel type Rate of assessment per kilowatt hour
Coal $0.00043		Coal $0.00043
Natural Gas $0.00022		Natural Gas $0.00022
Oil $0.00032.		Oil $0.00032.
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(B) The Corporation is authorized to adjust the assessments on fossil fuel-based electricity to reflect changes in the expected quantities of such electricity from different fuel types, such that the assessments generate not less than $1.0 billion and not more than $1.1 billion annually. The Corporation is authorized to supplement assessments through additional financial commitments.		(B) The Corporation is authorized to adjust the assessments on fossil fuel-based electricity to reflect changes in the expected quantities of such electricity from different fuel types, such that the assessments generate not less than $1.0 billion and not more than $1.1 billion annually. The Corporation is authorized to supplement assessments through additional financial commitments.
(2) INVESTMENT OF FUNDS- Pending disbursement pursuant to a program, plan, or project, the Corporation may invest funds collected through assessments under this subsection, and any other funds received by the Corporation, only in obligations of the United States or any agency thereof, in general obligations of any State or any political subdivision thereof, in any interest-bearing account or certificate of deposit of a bank that is a member of the Federal Reserve System, or in obligations fully guaranteed as to principal and interest by the United States.		(2) INVESTMENT OF FUNDS- Pending disbursement pursuant to a program, plan, or project, the Corporation may invest funds collected through assessments under this subsection, and any other funds received by the Corporation, only in obligations of the United States or any agency thereof, in general obligations of any State or any political subdivision thereof, in any interest-bearing account or certificate of deposit of a bank that is a member of the Federal Reserve System, or in obligations fully guaranteed as to principal and interest by the United States.
(3) REVERSION OF UNUSED FUNDS- If the Corporation does not disburse, dedicate or assign 75 percent or more of the available proceeds of the assessed fees in any calendar year 7 or more years following its establishment, due to an absence of qualified projects or similar circumstances, it shall reimburse the remaining undedicated or unassigned balance of such fees, less administrative and other expenses authorized by this section, to the distribution utilities upon which such fees were assessed, in proportion to their collected assessments.		(3) REVERSION OF UNUSED FUNDS- If the Corporation does not disburse, dedicate or assign 75 percent or more of the available proceeds of the assessed fees in any calendar year 7 or more years following its establishment, due to an absence of qualified projects or similar circumstances, it shall reimburse the remaining undedicated or unassigned balance of such fees, less administrative and other expenses authorized by this section, to the distribution utilities upon which such fees were assessed, in proportion to their collected assessments.
(e) ERCOT-		(e) ERCOT-
(1) ASSESSMENT, COLLECTION, AND REMITTANCE- (A) Notwithstanding any other provision of this section, within ERCOT, the assessment provided for in subsection (d) shall be--		(1) ASSESSMENT, COLLECTION, AND REMITTANCE- (A) Notwithstanding any other provision of this section, within ERCOT, the assessment provided for in subsection (d) shall be--
(i) levied directly on qualified scheduling entities, or their successor entities;		(i) levied directly on qualified scheduling entities, or their successor entities;
(ii) charged consistent with other charges imposed on qualified scheduling entities as a fee on energy used by the load-serving entities; and		(ii) charged consistent with other charges imposed on qualified scheduling entities as a fee on energy used by the load-serving entities; and
(iii) collected and remitted by ERCOT to the Corporation in the amounts and in the same manner as set forth in subsection (d).		(iii) collected and remitted by ERCOT to the Corporation in the amounts and in the same manner as set forth in subsection (d).
(B) The assessment amounts referred to in subparagraph (A) shall be--		(B) The assessment amounts referred to in subparagraph (A) shall be--
(i) determined by the amount and types of fossil fuel-based electricity delivered directly to all retail customers in the prior calendar year beginning with the year ending immediately prior to the period described in subsection (b)(2); and		(i) determined by the amount and types of fossil fuel-based electricity delivered directly to all retail customers in the prior calendar year beginning with the year ending immediately prior to the period described in subsection (b)(2); and
(ii) take into account the number of renewable energy credits retired by the load-serving entities represented by a qualified scheduling entity within the prior calendar year.		(ii) take into account the number of renewable energy credits retired by the load-serving entities represented by a qualified scheduling entity within the prior calendar year.
(2) ADMINISTRATION EXPENSES- Up to 1 percent of the funds collected in any fiscal year by ERCOT under the provisions of this subsection may be used for the administrative expenses incurred in the determination, collection and remittance of the assessments to the Corporation.		(2) ADMINISTRATION EXPENSES- Up to 1 percent of the funds collected in any fiscal year by ERCOT under the provisions of this subsection may be used for the administrative expenses incurred in the determination, collection and remittance of the assessments to the Corporation.
(3) AUDIT- ERCOT shall provide a copy of its annual audit pertaining to the administration of the provisions of this subsection to the Corporation.		(3) AUDIT- ERCOT shall provide a copy of its annual audit pertaining to the administration of the provisions of this subsection to the Corporation.
(4) DEFINITIONS- For the purposes of this subsection:		(4) DEFINITIONS- For the purposes of this subsection:
(A) The term ERCOT' means the Electric Reliability Council of Texas.		(A) The term ERCOT' means the Electric Reliability Council of Texas.
(B) The term load-serving entities' has the meaning adopted by ERCOT Protocols and in effect on the date of enactment of this Act.		(B) The term load-serving entities' has the meaning adopted by ERCOT Protocols and in effect on the date of enactment of this Act.
(C) The term qualified scheduling entities' has the meaning adopted by ERCOT Protocols and in effect on the date of enactment of this Act.		(C) The term qualified scheduling entities' has the meaning adopted by ERCOT Protocols and in effect on the date of enactment of this Act.
(D) The term renewable energy credit' has the meaning as promulgated and adopted by the Public Utility Commission of Texas pursuant to section 39.904(b) of the Public Utility Regulatory Act of 1999, and in effect on the date of enactment of this Act.		(D) The term renewable energy credit' has the meaning as promulgated and adopted by the Public Utility Commission of Texas pursuant to section 39.904(b) of the Public Utility Regulatory Act of 1999, and in effect on the date of enactment of this Act.
(f) Determination of Fossil Fuel-based Electricity Deliveries-		(f) Determination of Fossil Fuel-Based Electricity Deliveries-
(1) FINDINGS- The Congress finds that:		(1) FINDINGS- The Congress finds that:
(A) The assessments under subsection (d) are to be collected based on the amount of fossil fuel-based electricity delivered by each distribution utility.		(A) The assessments under subsection (d) are to be collected based on the amount of fossil fuel-based electricity delivered by each distribution utility.
(B) Since many distribution utilities purchase all or part of their retail consumer's electricity needs from other entities, it may not be practical to determine the precise fuel mix for the power sold by each individual distribution utility.		(B) Since many distribution utilities purchase all or part of their retail consumer's electricity needs from other entities, it may not be practical to determine the precise fuel mix for the power sold by each individual distribution utility.
(C) It may be necessary to use average data, often on a regional basis with reference to Regional Transmission Organization (RTO') or NERC regions, to make the determinations necessary for making assessments.		(C) It may be necessary to use average data, often on a regional basis with reference to Regional Transmission Organization (RTO') or NERC regions, to make the determinations necessary for making assessments.
(2) DOE PROPOSED RULE- The Secretary, acting in close consultation with the Energy Information Administration, shall issue for notice and comment a proposed rule to determine the level of fossil fuel electricity delivered to retail customers by each distribution utility in the United States during the most recent calendar year or other period determined to be most appropriate. Such proposed rule shall balance the need to be efficient, reasonably precise, and timely, taking into account the nature and cost of data currently available and the nature of markets and regulation in effect in various regions of the country. Different methodologies may be applied in different regions if appropriate to obtain the best balance of such factors.		(2) DOE PROPOSED RULE- The Secretary, acting in close consultation with the Energy Information Administration, shall issue for notice and comment a proposed rule to determine the level of fossil fuel electricity delivered to retail customers by each distribution utility in the United States during the most recent calendar year or other period determined to be most appropriate. Such proposed rule shall balance the need to be efficient, reasonably precise, and timely, taking into account the nature and cost of data currently available and the nature of markets and regulation in effect in various regions of the country. Different methodologies may be applied in different regions if appropriate to obtain the best balance of such factors.
(3) FINAL RULE- Within 6 months after the date of enactment of this Act, and after opportunity for comment, the Secretary shall issue a final rule under this subsection for determining the level and type of fossil fuel-based electricity delivered to retail customers by each distribution utility in the United States during the appropriate period. In issuing such rule, the Secretary may consider opportunities and costs to develop new data sources in the future and issue recommendations for the Energy Information Administration or other entities to collect such data. After notice and opportunity for comment the Secretary may, by rule, subsequently update and modify the methodology for making such determinations.		(3) FINAL RULE- Within 6 months after the date of enactment of this Act, and after opportunity for comment, the Secretary shall issue a final rule under this subsection for determining the level and type of fossil fuel-based electricity delivered to retail customers by each distribution utility in the United States during the appropriate period. In issuing such rule, the Secretary may consider opportunities and costs to develop new data sources in the future and issue recommendations for the Energy Information Administration or other entities to collect such data. After notice and opportunity for comment the Secretary may, by rule, subsequently update and modify the methodology for making such determinations.
(4) ANNUAL DETERMINATIONS- Pursuant to the final rule issued under paragraph (3), the Secretary shall make annual determinations of the amounts and types for each such utility and publish such determinations in the Federal Register. Such determinations shall be used to conduct the referendum under subsection (b) and by the Corporation in applying any assessment under this subsection.		(4) ANNUAL DETERMINATIONS- Pursuant to the final rule issued under paragraph (3), the Secretary shall make annual determinations of the amounts and types for each such utility and publish such determinations in the Federal Register. Such determinations shall be used to conduct the referendum under subsection (b) and by the Corporation in applying any assessment under this subsection.
(5) REHEARING AND JUDICIAL REVIEW- The owner or operator of any distribution utility that believes that the Secretary has misapplied the methodology in the final rule in determining the amount and types of fossil fuel electricity delivered by such distribution utility may seek rehearing of such determination within 30 days of publication of the determination in the Federal Register. The Secretary shall decide such rehearing petitions within 30 days. The Secretary's determinations following rehearing shall be final and subject to judicial review in the United States Court of Appeals for the District of Columbia.		(5) REHEARING AND JUDICIAL REVIEW- The owner or operator of any distribution utility that believes that the Secretary has misapplied the methodology in the final rule in determining the amount and types of fossil fuel electricity delivered by such distribution utility may seek rehearing of such determination within 30 days of publication of the determination in the Federal Register. The Secretary shall decide such rehearing petitions within 30 days. The Secretary's determinations following rehearing shall be final and subject to judicial review in the United States Court of Appeals for the District of Columbia.
(g) Compliance With Corporation Assessments- The Corporation may bring an action in the appropriate court of the United States to compel compliance with an assessment levied by the Corporation under this section. A successful action for compliance under this subsection may also require payment by the defendant of the costs incurred by the Corporation in bringing such action.		(g) Compliance With Corporation Assessments- The Corporation may bring an action in the appropriate court of the United States to compel compliance with an assessment levied by the Corporation under this section. A successful action for compliance under this subsection may also require payment by the defendant of the costs incurred by the Corporation in bringing such action.
(h) Midcourse Review- Not later than 5 years following establishment of the Corporation, the Comptroller General of the United States shall prepare an analysis, and report to Congress, assessing the Corporation's activities, including project selection and methods of disbursement of assessed fees, impacts on the prospects for commercialization of carbon capture and storage technologies, adequacy of funding, and administration of funds. The report shall also make such recommendations as may be appropriate in each of these areas. The Corporation shall reimburse the Government Accountability Office for the costs associated with performing this midcourse review.		(h) Midcourse Review- Not later than 5 years following establishment of the Corporation, the Comptroller General of the United States shall prepare an analysis, and report to Congress, assessing the Corporation's activities, including project selection and methods of disbursement of assessed fees, impacts on the prospects for commercialization of carbon capture and storage technologies, adequacy of funding, and administration of funds. The report shall also make such recommendations as may be appropriate in each of these areas. The Corporation shall reimburse the Government Accountability Office for the costs associated with performing this midcourse review.
(i) Recovery of Costs-		(i) Recovery of Costs-
(1) IN GENERAL- A distribution utility whose transmission, delivery, or sales of electric energy are subject to any form of rate regulation shall not be denied the opportunity to recover the full amount of the prudently incurred costs associated with complying with this section, consistent with applicable State or Federal law.		(1) IN GENERAL- A distribution utility whose transmission, delivery, or sales of electric energy are subject to any form of rate regulation shall not be denied the opportunity to recover the full amount of the prudently incurred costs associated with complying with this section, consistent with applicable State or Federal law.
(2) RATEPAYER REBATES- Regulatory authorities that approve cost recovery pursuant to paragraph (1) may order rebates to ratepayers to the extent that distribution utilities are reimbursed undedicated or unassigned balances pursuant to subsection (d)(3).		(2) RATEPAYER REBATES- Regulatory authorities that approve cost recovery pursuant to paragraph (1) may order rebates to ratepayers to the extent that distribution utilities are reimbursed undedicated or unassigned balances pursuant to subsection (d)(3).
(j) Technical Advisory Committee-		(j) Technical Advisory Committee-
(1) ESTABLISHMENT- There is established an advisory committee, to be known as the Technical Advisory Committee'.		(1) ESTABLISHMENT- There is established an advisory committee, to be known as the Technical Advisory Committee'.
(2) MEMBERSHIP- The Technical Advisory Committee shall be comprised of not less than 7 members appointed by the Board from among academic institutions, national laboratories, independent research institutions, and other qualified institutions. No member of the Committee shall be affiliated with EPRI or with any organization having members serving on the Board. At least one member of the Committee shall be appointed from among officers or employees of the Department of Energy recommended to the Board by the Secretary of Energy.		(2) MEMBERSHIP- The Technical Advisory Committee shall be comprised of not less than 7 members appointed by the Board from among academic institutions, national laboratories, independent research institutions, and other qualified institutions. No member of the Committee shall be affiliated with EPRI or with any organization having members serving on the Board. At least one member of the Committee shall be appointed from among officers or employees of the Department of Energy recommended to the Board by the Secretary of Energy.
(3) CHAIRPERSON AND VICE CHAIRPERSON- The Board shall designate one member of the Technical Advisory Committee to serve as Chairperson of the Committee and one to serve as Vice Chairperson of the Committee.		(3) CHAIRPERSON AND VICE CHAIRPERSON- The Board shall designate one member of the Technical Advisory Committee to serve as Chairperson of the Committee and one to serve as Vice Chairperson of the Committee.
(4) COMPENSATION- The Board shall provide compensation to members of the Technical Advisory Committee for travel and other incidental expenses and such other compensation as the Board determines to be necessary.		(4) COMPENSATION- The Board shall provide compensation to members of the Technical Advisory Committee for travel and other incidental expenses and such other compensation as the Board determines to be necessary.
(5) PURPOSE- The Technical Advisory Committee shall provide independent assessments and technical evaluations, as well as make non-binding recommendations to the Board, concerning Corporation activities, including but not limited to the following:		(5) PURPOSE- The Technical Advisory Committee shall provide independent assessments and technical evaluations, as well as make non-binding recommendations to the Board, concerning Corporation activities, including but not limited to the following:
(A) Reviewing and evaluating the Corporation's plans and budgets described in subsection (c)(9), as well as any other appropriate areas, which could include approaches to prioritizing technologies, appropriateness of engineering techniques, monitoring and verification technologies for storage, geological site selection, and cost control measures.		(A) Reviewing and evaluating the Corporation's plans and budgets described in subsection (c)(9), as well as any other appropriate areas, which could include approaches to prioritizing technologies, appropriateness of engineering techniques, monitoring and verification technologies for storage, geological site selection, and cost control measures.
(B) Making annual non-binding recommendations to the Board concerning any of the matters referred to in subparagraph (A), as well as what types of investments, scientific research, or engineering practices would best further the goals of the Corporation.		(B) Making annual non-binding recommendations to the Board concerning any of the matters referred to in subparagraph (A), as well as what types of investments, scientific research, or engineering practices would best further the goals of the Corporation.
(6) PUBLIC AVAILABILITY- All reports, evaluations, and other materials of the Technical Advisory Committee shall be made available to the public by the Board, without charge, at time of receipt by the Board.		(6) PUBLIC AVAILABILITY- All reports, evaluations, and other materials of the Technical Advisory Committee shall be made available to the public by the Board, without charge, at time of receipt by the Board.
(k) Lobbying Restrictions- No funds collected by the Corporation shall be used in any manner for influencing legislation or elections, except that the Corporation may recommend to the Secretary and the Congress changes in this section or other statutes that would further the purposes of this section.		(k) Lobbying Restrictions- No funds collected by the Corporation shall be used in any manner for influencing legislation or elections, except that the Corporation may recommend to the Secretary and the Congress changes in this section or other statutes that would further the purposes of this section.
(l) Davis-Bacon Compliance- The Corporation shall ensure that entities receiving grants, contracts, or other financial support from the Corporation for the project activities authorized by this section are in compliance with the Davis-Bacon Act (40 U.S.C. 276a-276a-5).	<>	(l) Davis-Bacon Compliance- The Corporation shall ensure that entities receiving grants, contracts, or other financial support from the Corporation for the project activities authorized by this section are in compliance with subchapter IV of chapter 31 of title 40, United States Code (commonly known as the Davis-Bacon Act').
SEC. 115. COMMERCIAL DEPLOYMENT OF CARBON CAPTURE AND SEQUESTRATION TECHNOLOGIES.
Part H of title VII of the Clean Air Act (as added by section 321 of this Act) is amended by adding the following new section after section 785:
SEC. 786. COMMERCIAL DEPLOYMENT OF CARBON CAPTURE AND SEQUESTRATION TECHNOLOGIES.
(a) Regulations- Not later than 2 years after the date of enactment of this title, the Administrator shall promulgate regulations providing for the distribution of emission allowances allocated pursuant to section 782(f), pursuant to the requirements of this section, to support the commercial deployment of carbon capture and sequestration technologies in both electric power generation and industrial operations.
(b) Eligibility Criteria- For an owner or operator of a project to be eligible to receive emission allowances under this section, the project must--
(1) implement carbon capture and sequestration technology--
(A) at an electric generating unit that--
(i) has a nameplate capacity of 200 megawatts or more;
(ii) in the case of a retrofit application, applies the carbon capture and sequestration technology to the flue gas from at least 200 megawatts of the total nameplate generating capacity of the unit, provided that clause (i) shall apply without exception;
(iii) derives at least 50 percent of its annual fuel input from coal, petroleum coke, or any combination of these 2 fuels; and
(iv) upon implementation of capture and sequestration technology, will achieve an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by--
(I) the unit, measured on an annual basis, determined in accordance with section 812(b)(2); or
(II) in the case of retrofit applications under clause (ii), the treated portion of flue gas from the unit, measured on an annual basis, determined in accordance with section 812(b)(2); or
(B) at an industrial source that--
(i) absent carbon capture and sequestration, would emit greater than 50,000 tons per year of carbon dioxide;
(ii) upon implementation, will achieve an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the emission point, measured on an annual basis, determined in accordance with section 812(b)(2); and
(iii) does not produce a liquid transportation fuel from a solid fossil-based feedstock;
(2) geologically sequester carbon dioxide at a site that meets all applicable permitting and certification requirements for geologic sequestration, or, pursuant to such requirements as the Administrator may prescribe by regulation, convert captured carbon dioxide to a stable form that will safely and permanently sequester such carbon dioxide;
(3) meet all other applicable State, tribal, and Federal permitting requirements; and
(4) be located in the United States.
(c) Phase I Distribution to Electric Generating Units-
(1) APPLICATION- This subsection shall apply only to projects at the first 6 gigawatts of electric generating units, measured in cumulative generating capacity of such units, that receive allowances under this section.
(2) DISTRIBUTION- The Administrator shall distribute emission allowances allocated under section 782(f) to the owner or operator of each eligible project at an electric generating unit in a quantity equal to the quotient obtained by dividing--
(A) the product obtained by multiplying--
(i) the number of metric tons of carbon dioxide emissions avoided through capture and sequestration of emissions by the project, as determined pursuant to such methodology as the Administrator shall prescribe by regulation; and
(ii) a bonus allowance value, pursuant to paragraph (3); by
(B) the average fair market value of an emission allowance during the preceding year.
(3) BONUS ALLOWANCE VALUES-
(A) For a generating unit achieving the capture and sequestration of 85 percent or more of the carbon dioxide that otherwise would be emitted by such unit, the bonus allowance value shall be $90 per ton.
(B) The Administrator shall by regulation establish a bonus allowance value for each rate of lower capture and sequestration achieved by a generating unit, from a minimum of $50 per ton for a 50 percent rate and varying directly with increasing rates of capture and sequestration up to $90 per ton for an 85 percent rate.
(C) For a generating unit that achieves the capture and sequestration of at least 50 percent of the carbon dioxide that otherwise would be emitted by such unit by not later than January 1, 2017, the otherwise applicable bonus allowance value under this paragraph shall be increased by $10, provided that the owner of such unit notifies the Administrator by not later than January 1, 2012, of its intent to achieve such rate of capture and sequestration.
(D) For a carbon capture and sequestration project sequestering in a geological formation for purposes of enhanced hydrocarbon recovery, the Administrator shall, by regulation, reduce the applicable bonus allowance value under this paragraph to reflect the lower net cost of the project when compared to sequestration into geological formations solely for purposes of sequestration.
(E) The Administrator shall annually adjust for inflation the bonus allowance values established under this paragraph.
(d) Phase II Distribution to Electric Generating Units-
(1) APPLICATION- This subsection shall apply only to the distribution of emission allowances for carbon capture and sequestration projects at electric generating units after the capacity threshold identified in subsection (c)(1) is reached.
(2) REGULATIONS- Not later than 2 years prior to the date on which the capacity threshold identified in subsection (c)(1) is projected to be reached, the Administrator shall promulgate regulations to govern the distribution of emission allowances to the owners or operators of eligible projects under this subsection.
(3) REVERSE AUCTIONS-
(A) IN GENERAL- Except as provided in paragraph (4), the regulations promulgated under paragraph (2) shall provide for the distribution of emission allowances to the owners or operators of eligible projects under this subsection through reverse auctions, which shall be held no less frequently than once each calendar year. The Administrator may establish a separate auction for each of no more than 5 different project categories, defined on the basis of coal type, capture technology, geological formation type, new unit versus retrofit application, such other factors as the Administrator may prescribe, or any combination thereof. The Administrator may establish appropriate minimum rates of capture and sequestration in implementing this paragraph.
(B) AUCTION PROCESS- At each reverse auction--
(i) the Administrator shall solicit bids from eligible projects;
(ii) eligible projects participating in the auction shall submit a bid including the desired level of carbon dioxide sequestration incentive per ton and the estimated quantity of carbon dioxide that the project will permanently sequester over 10 years; and
(iii) the Administrator shall select bids, within each auction, for the sequestration amount submitted, beginning with the eligible project submitting the bid for the lowest level of sequestration incentive on a per ton basis and meeting such other requirements as the Administrator may specify, until the amount of funds available for the reverse auction is committed.
(C) FORM OF DISTRIBUTION- The Administrator shall distribute emission allowances to the owners or operators of eligible projects selected through a reverse auction under this paragraph pursuant to a formula equivalent to that described in subsection (c)(2), except that the bonus allowance value that is bid by the entity shall be substituted for the bonus allowance values set forth in subsection (c)(3).
(4) ALTERNATIVE DISTRIBUTION METHOD-
(A) IN GENERAL- If the Administrator determines that reverse auctions would not provide for efficient and cost-effective commercial deployment of carbon capture and sequestration technologies, the Administrator may instead, through regulations promulgated under paragraph (2) or (5), prescribe a schedule for the award of bonus allowances to the owners or operators of eligible projects under this subsection, in accordance with the requirements of this paragraph.
(B) MULTIPLE TRANCHES- The Administrator shall divide emission allowances available for distribution to the owners or operators of eligible projects into a series of tranches, each supporting the deployment of a specified quantity of cumulative electric generating capacity utilizing carbon capture and sequestration technology, each of which shall not be greater than 6 gigawatts.
(C) METHOD OF DISTRIBUTION- The Administrator shall distribute emission allowances within each tranche, on a first-come, first-served basis--
(i) based on the date of full-scale operation of capture and sequestration technology; and
(ii) pursuant to a formula, similar to that set forth in subsection (c)(2) (except that the Administrator shall prescribe bonus allowance values different than those set forth in subsection (c)(3)), establishing the number of allowances to be distributed per ton of carbon dioxide sequestered by the project.
(D) REQUIREMENTS- For each tranche established pursuant to subparagraph (B), the Administrator shall establish a schedule for distributing emission allowances that--
(i) is based on a sliding scale that provides higher bonus allowance values for projects achieving higher rates of capture and sequestration;
(ii) for each capture and sequestration rate, establishes a bonus allowance value that is lower than that established for such rate in the previous tranche (or, in the case of the first tranche, than that established for such rate under subsection (c)(3)); and
(iii) may establish different bonus allowance levels for no more than 5 different project categories, defined by coal type, capture technology, geological formation type, new unit versus retrofit application, such other factors as the Administrator may prescribe, or any combination thereof.
(E) CRITERIA FOR ESTABLISHING BONUS ALLOWANCE VALUES- In setting bonus allowance values under this paragraph, the Administrator shall seek to cover no more than the reasonable incremental capital and operating costs of a project that are attributable to implementation of carbon capture, transportation, and sequestration technologies, taking into account--
(i) the reduced cost of compliance with section 722 of this Act;
(ii) the reduced cost associated with sequestering in a geological formation for purposes of enhanced hydrocarbon recovery when compared to sequestration into geological formations solely for purposes of sequestration;
(iii) the relevant factors defining the project category; and
(iv) such other factors as the Administrator determines are appropriate.
(5) REVISION OF REGULATIONS- The Administrator shall review, and as appropriate revise, the applicable regulations under this subsection no less frequently than every 8 years.
(e) Limits for Certain Electric Generating Units-
(1) DEFINITIONS- For purposes of this subsection, the terms covered EGU' and initially permitted' shall have the meaning given those terms in section 812 of this Act.
(2) COVERED EGUS INITIALLY PERMITTED FROM 2009 THROUGH 2014- For a covered EGU that is initially permitted on or after January 1, 2009, and before January 1, 2015, the Administrator shall reduce the quantity of emission allowances that the owner or operator of such covered EGU would otherwise be eligible to receive under this section as follows:
(A) In the case of a unit commencing operation on or before January 1, 2019, if the date in clause (ii)(I) is earlier than the date in clause (ii)(II), by the product of--
(i) 20 percent; and
(ii) the number of years, if any, that have elapsed between--
(I) the earlier of January 1, 2020, or the date that is 5 years after the commencement of operation of such covered EGU; and
(II) the first year that such covered EGU achieves (and thereafter maintains) an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the unit, measured on an annual basis, as determined in accordance with section 812(b)(2).
(B) In the case of a unit commencing operation after January 1, 2019, by the product of--
(i) 20 percent; and
(ii) the number of years between--
(I) the commencement of operation of such covered EGU; and
(II) the first year that such covered EGU achieves (and thereafter maintains) an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the unit, measured on an annual basis, as determined in accordance with section 812(b)(2).
(3) COVERED EGUS INITIALLY PERMITTED FROM 2015 THROUGH 2019- The owner or operator of a covered EGU that is initially permitted on or after January 1, 2015, and before January 1, 2020, shall be ineligible to receive emission allowances pursuant to this section if such unit, upon commencement of operations (and thereafter), does not achieve and maintain an emission limit that is at least a 50 percent reduction in emissions of the carbon dioxide produced by the unit, measured on an annual basis, as determined in accordance with section 812(b)(2).
(f) Industrial Sources-
(1) ALLOWANCES- The Administrator may distribute not more than 15 percent of the allowances allocated under section 782(f) for any vintage year to the owners or operators of eligible industrial sources to support the commercial-scale deployment of carbon capture and sequestration technologies at such sources.
(2) DISTRIBUTION- The Administrator shall, by regulation, prescribe requirements for the distribution of emission allowances to the owners or operators of industrial sources under this subsection, based on a bonus allowance formula that awards allowances to qualifying projects on the basis of tons of carbon dioxide captured and permanently sequestered. The Administrator may provide for the distribution of emission allowances pursuant to--
(A) a reverse auction method, similar to that described under subsection (d)(3), including the use of separate auctions for different project categories; or
(B) an incentive schedule, similar to that described under subsection (d)(4), which shall ensure that incentives are set so as to satisfy the requirement described in subsection (d)(4)(E).
(3) REVISION OF REGULATIONS- The Administrator shall review, and as appropriate revise, the applicable regulations under this subsection no less frequently than every 8 years.
(g) Limitations- Allowances may be distributed under this section only for tons of carbon dioxide emissions that have already been captured and sequestered. A qualifying project may receive annual emission allowances under this section only for the first 10 years of operation. No greater than 72 gigawatts of total cumulative generating capacity (including industrial applications, measured by such equivalent metric as the Administrator may designate) may receive emission allowances under this section. Upon reaching the limit described in the preceding sentence, any emission allowances that are allocated for carbon capture and sequestration deployment under section 782(f) and are not yet obligated under this section shall be treated as allowances not designated for distribution for purposes of section 782(r).
(h) Exhaustion of Account and Annual Roll-over of Surplus Allowances-
(1) In distributing emission allowances under this section, the Administrator shall ensure that qualifying projects receiving allowances receive distributions for 10 years.
(2) If the Administrator determines that the emission allowances allocated under section 782(f) with a vintage year that matches the year of distribution will be exhausted once the estimated full 10-year distributions will be provided to current eligible participants, the Administrator shall provide to new eligible projects allowances from vintage years after the year of the distribution.
(i) Retrofit Applications- (1) In calculating bonus allowance values for retrofit applications eligible under subsection (b)(1)(A)(ii) and (iv)(II), the Administrator shall apply the required capture rates with respect to the treated portion of flue gas from the unit.
(2) No additional projects shall be eligible for allowances under subsection (b)(1)(A)(ii) and (iv)(II) as of such time as the Administrator reports, pursuant to section 812(d), that carbon capture and sequestration retrofit projects at electric generating units that are eligible for allowances under this section have been applied, in the aggregate, to the flue gas generated by 1 gigawatt of total cumulative generating capacity. The limitation in the preceding sentence shall not apply to projects that meet the eligibility criteria in subsection (b)(1)(A)(iv)(I).
(j) Davis-Bacon Compliance- All laborers and mechanics employed on projects funded directly by or assisted in whole or in part by this section through the use of emission allowances shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV, chapter 31, part A of subtitle II of title 40, United States Code. With respect to the labor standards specified in this subsection, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code.'.

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HR2454 and S1733 - CCS

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