Carbon Dioxide Removal Leadership Act of 2026

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5170 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 5170

 To require the Secretary of Energy to remove carbon dioxide directly
         from ambient air or seawater, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 29, 2026

  Mr. Coons (for himself and Mr. Whitehouse) introduced the following
bill; which was read twice and referred to the Committee on Energy and
                           Natural Resources

_______________________________________________________________________

                                 A BILL

 To require the Secretary of Energy to remove carbon dioxide directly
         from ambient air or seawater, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Carbon Dioxide Removal Leadership
Act of 2026''.

SEC. 2. FEDERAL REQUIREMENT TO REMOVE CARBON DIOXIDE.

    (a) Definitions.--In this section:
            (1) Eligible technology.--
                    (A) In general.--The term ``eligible technology''
                means any equipment, technique, or technology, as
                determined by the Secretary, that--
                            (i) was placed into service after January
                        1, 2022; and
                            (ii) removes carbon dioxide directly from
                        ambient air or seawater.
                    (B) Exclusion.--The term ``eligible technology''
                does not include any equipment, technique, or
                technology that--
                            (i) removes carbon dioxide that is
                        deliberately released from naturally occurring
                        subsurface springs;
                            (ii) removes carbon dioxide using natural
                        photosynthesis, except as provided in
                        subparagraph (C); or
                            (iii) uses captured carbon dioxide in
                        enhanced oil recovery.
                    (C) Expansion of eligible technology.--
                Notwithstanding subparagraph (B)(ii), any equipment,
                technique, or technology that removes carbon dioxide
                using gasification, pyrolysis, or sequestration of
                solid, nonhazardous, and cellulosic waste materials may
                be included in the term ``eligible technology'' if the
                Secretary, by rule--
                            (i) determines that an entity that carries
                        out a removal project under this section is
                        able--
                                    (I) to adequately measure, monitor,
                                report, and verify the quantity of
                                greenhouse gas emissions (including
                                direct emissions and significant
                                indirect emissions), removed using that
                                equipment, technique, or technology;
                                and
                                    (II) to adequately mitigate the
                                environmental impacts (including
                                impacts on biodiversity, land use, and
                                air and water quality) associated with
                                that equipment, technique, or
                                technology; and
                            (ii) requires that entity to carry out the
                        activities described in clause (i).
            (2) Lifecycle basis.--The term ``lifecycle basis'' means
        the net sum of all greenhouse gas emissions (using mass values
        for all greenhouse gases that are adjusted to account for their
        relative global warming potential, as determined by the
        Secretary in consultation with the Administrator of the
        Environmental Protection Agency) associated with carbon dioxide
        removal activity from cradle to grave, including any emissions
        associated with--
                    (A) energy and feedstock inputs in the carbon
                dioxide removal activity, including inputs in the
                distribution and transportation of carbon dioxide;
                    (B) indirect effects, such as land-use change, as
                scientifically justified;
                    (C) the carbon dioxide removal process;
                    (D) carbon dioxide transport and storage, including
                any leakage, use, and disposal of any materials or
                products associated with that transport and storage;
                and
                    (E) embodied emissions of the equipment used in the
                carbon dioxide removal activity.
            (3) Remove.--The term ``remove'', with respect to carbon
        dioxide, means to extract carbon dioxide from the atmosphere
        by--
                    (A) capturing carbon dioxide using eligible
                technology; and
                    (B) durably storing, on a timescale equivalent to
                geologic storage, that captured carbon dioxide--
                            (i) pursuant to a permit issued under part
                        C of the Safe Drinking Water Act (42 U.S.C.
                        300h et seq.) for a Class V or Class VI
                        injection well (as described in section 144.6
                        of title 40, Code of Federal Regulations (or
                        successor regulations));
                            (ii) in building materials and mineralized
                        carbon materials; or
                            (iii) using other durable storage methods,
                        as determined by the Secretary.
            (4) Secretary.--The term ``Secretary'' means the Secretary
        of Energy.
            (5) Small removal project.--The term ``small removal
        project'' means a project for the removal of carbon dioxide
        that removes not more than 5 percent of the net metric tons of
        carbon dioxide required to be removed under subsection (b) for
        the applicable fiscal year.
    (b) Required Quantities.--The Secretary shall, to the extent
economically feasible as determined under subsection (c), remove--
            (1) 50,000 net metric tons of carbon dioxide, calculated on
        a lifecycle basis, for each of fiscal years 2026 and 2027;
            (2) 500,000 net metric tons of carbon dioxide, calculated
        on a lifecycle basis, for each of fiscal years 2028 through
        2030;
            (3) 5,000,000 net metric tons of carbon dioxide, calculated
        on a lifecycle basis, for each of fiscal years 2031 through
        2035; and
            (4) 10,000,000 net metric tons of carbon dioxide,
        calculated on a lifecycle basis, for fiscal year 2036 and each
        fiscal year thereafter.
    (c) Economic Feasibility.--
            (1) In general.--The removal of carbon dioxide under
        subsection (b) shall be considered economically feasible if
        that removal can be accomplished or, in the case of a contract
        under subsection (i), purchased--
                    (A) for each of fiscal years 2026 and 2027, at a
                price per metric ton of carbon dioxide of not more than
                $750 (which the Secretary may adjust for inflation);
                    (B) for each of fiscal years 2028 through 2030, at
                a price per metric ton of carbon dioxide of not more
                than $500 (which the Secretary may adjust for
                inflation);
                    (C) for each of fiscal years 2031 through 2033, at
                a price per metric ton of carbon dioxide of not more
                than $300 (which the Secretary may adjust for
                inflation);
                    (D) for each of fiscal years 2034 through 2036, at
                a price per metric ton of carbon dioxide of not more
                than $200 (which the Secretary may adjust for
                inflation); and
                    (E) for fiscal year 2037 and each fiscal year
                thereafter, at a price per metric ton of carbon dioxide
                of not more than $150 (which the Secretary may adjust
                for inflation).
            (2) Inclusion of measurement, monitoring, reporting, and
        verification costs.--In determining whether the removal of
        carbon dioxide is considered economically feasible under
        paragraph (1), the price for such removal shall include costs
        paid to an independent third party for the measurement,
        monitoring, reporting, and verification required under
        subsection (g)(1).
            (3) Multiyear contracts.--The removal of carbon dioxide
        carried out pursuant to a contract entered into under
        subsection (i) that is a multiyear contract shall be considered
        economically feasible if such removal can be accomplished at
        the applicable dollar amount for the first fiscal year of the
        contract, as provided in paragraph (1), through the entire
        length of the contract.
    (d) Timing.--For each fiscal year, the Secretary shall remove the
quantity of carbon dioxide required under subsection (b) for that
fiscal year not later than 3 years after the beginning of that fiscal
year.
    (e) Small Removal Project Set-Aside.--To the extent practicable, at
least 20 percent of the net metric tons of carbon dioxide required to
be removed under subsection (b) for each of fiscal years 2026 through
2035 shall be removed through small removal projects.
    (f) Federal Assistance.--Funds received pursuant to a contract
entered into under subsection (i) shall not be considered Federal
assistance or otherwise affect eligibility for any Federal assistance,
including a tax incentive.
    (g) Measurement, Monitoring, Reporting, and Verification.--
            (1) In general.--The Secretary, or an entity with which the
        Secretary enters into a contract under subsection (i), shall
        enter into a contract with an independent third party to
        measure, monitor, report, and verify the net metric tons of
        carbon dioxide that the Secretary or the entity, as applicable,
        removes for purposes of this section.
            (2) Standards.--
                    (A) In general.--Not later than 1 year after the
                date of enactment of this Act, the Secretary, in
                consultation with the Administrator of the National
                Oceanic and Atmospheric Administration, the
                Administrator of the Environmental Protection Agency,
                the Secretary of Agriculture, the Director of the
                National Institute of Standards and Technology, and
                other relevant Federal agencies, as determined by the
                Secretary, shall establish standards for methods of
                measuring, monitoring, reporting, and verifying the net
                metric tons of carbon dioxide removed pursuant to this
                section.
                    (B) Contents.--The standards established under
                subparagraph (A) shall--
                            (i) require the use of best available
                        practices used by similar carbon dioxide
                        removal projects;
                            (ii) ensure safe, effective, and efficient
                        removal of carbon dioxide;
                            (iii) ensure additionality, durability, and
                        net-negativity of carbon dioxide removal;
                            (iv) include criteria to determine whether
                        the storage of captured carbon dioxide is
                        durable;
                            (v) ensure scientifically rigorous and
                        transparent methods for measurement,
                        monitoring, reporting, and verifying under
                        paragraph (1); and
                            (vi) be regularly reviewed and, as
                        necessary, updated to account for scientific
                        and technological advancements.
            (3) Independent third parties.--An independent third party
        entering into a contract under paragraph (1) shall be--
                    (A) in compliance with the standards established
                under paragraph (2); and
                    (B) subject to oversight by the Secretary.
            (4) Prohibition on double counting.--Carbon dioxide that is
        removed for the purpose of complying with any other greenhouse
        gas emissions management program, including any foreign,
        Federal, State, local, or private greenhouse gas emissions
        management program, as determined by the Secretary, may not be
        considered removed under subsection (b) for purposes of meeting
        the requirements of that subsection.
    (h) Priorities.--In carrying out removal projects pursuant to
subsection (b), the Secretary shall give priority to projects based on
the degree to which the project--
            (1) minimizes the quantity of greenhouse gas emissions
        released by carrying out the project;
            (2) supports the commercialization of innovative removal
        technologies that demonstrate--
                    (A) near-term and long-term cost competitiveness
                relative to similar technologies; and
                    (B) a potential to achieve the economic feasibility
                requirements established under subsection (c);
            (3) increases the diversity of commercially available
        eligible technologies;
            (4) provides for domestic job creation, with a further
        preference for establishing partnerships with labor
        organizations, small businesses, minority-owned businesses, and
        women-owned businesses across value chains;
            (5) sources supply chain materials domestically;
            (6) results in economic development or economic
        diversification in regions or localities that have historically
        generated significant economic activity from the production,
        processing, transportation, or combustion of fossil fuels,
        including through the use of coal mines, fossil fuel-fired
        electricity generating units, and petroleum refining
        facilities;
            (7) quantifies and mitigates risks from carbon dioxide
        removal activities on, and provides measurable co-benefits to,
        nearby communities and residents, the environment, agriculture,
        and public health, including by--
                    (A) improving local air quality, water quality, and
                soil quality;
                    (B) minimizing land, water, and energy footprints;
                and
                    (C) using zero-emission energy, to the maximum
                extent practicable; and
            (8) includes robust public engagement and community
        benefits, including the use of enforceable community benefits
        agreements.
    (i) Contracts.--
            (1) In general.--The Secretary may, using a transparent and
        competitive process, enter into 1 or more contracts to meet the
        requirements of subsection (b).
            (2) Duration.--The duration of a contract entered into
        under paragraph (1) shall not exceed 15 years.
            (3) Limitation.--To the extent that there is a sufficient
        number of entities capable of removing carbon dioxide in
        accordance with this section under a contract entered into
        paragraph (1), the Secretary shall ensure that no singular
        entity is responsible for removing more than 25 percent of the
        net metric tons of carbon dioxide required to be removed under
        subsection (b) in any fiscal year.
    (j) Report.--Not later than January 1, 2029, and every 2 years
thereafter, the Secretary shall submit to Congress, and make publicly
available, a report that describes the progress made in carrying out
the requirements of this section, including, with respect to the period
covered by the report--
            (1) the quantities of removed carbon dioxide verified under
        subsection (g)(1) and the name of each independent third party
        that provided that verified quantity;
            (2) the total price, and price per metric ton, of removing
        carbon dioxide for each applicable fiscal year as required
        under subsection (b);
            (3) each technology category, the amount of energy, and
        each storage mechanism used to remove carbon dioxide for the
        applicable fiscal year as required under subsection (b);
            (4) each location where carbon dioxide was removed for the
        applicable fiscal year as required under subsection (b);
            (5) the standards established under subsection (g)(2);
            (6) an assessment of how the quantities of carbon dioxide
        removed under this section have affected nearby communities and
        residents, the environment, agriculture, and public health;
            (7) information on any potential labor impacts and job
        creation resulting from carrying out the requirements of
        subsection (b); and
            (8) an explanation of how the Secretary prioritized
        projects under subsection (h).
    (k) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.

SEC. 3. STUDY ON THE LONG-TERM FUTURE OF FEDERAL CARBON DIOXIDE REMOVAL
              MANAGEMENT.

    (a) In General.--Not later than 1 year after the date of enactment
of this Act, the Secretary of Energy, in consultation with the
Administrator of the National Oceanic and Atmospheric Administration,
the Administrator of the Environmental Protection Agency, the Secretary
of Agriculture, and other relevant Federal agencies, as determined by
the Secretary of Energy, shall submit to the Committee on Energy and
Natural Resources of the Senate and the Committee on Energy and
Commerce of the House of Representatives a report that evaluates and
makes recommendations for potential program design elements and
financing options for a Federal carbon dioxide removal offtake program
that can be scaled to achieve carbon dioxide removal from the
atmosphere and the oceans at a gigaton scale annually by 2050.
    (b) Contents.--The report under subsection (a) shall include
consideration of potential management and organizational structures for
the program described in that subsection, including--
            (1) a government-sponsored enterprise;
            (2) a government corporation;
            (3) a program office within the Department of Energy or
        another Federal agency; and
            (4) a contracted service provider.
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