Carbon Dioxide Removal Leadership Act of 2026

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9975 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 9975

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

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 2026

 Mr. Tonko (for himself and Mr. Peters) introduced the following bill;
       which was referred to the Committee on Energy and Commerce

_______________________________________________________________________

                                 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) Required Amounts.--The Secretary shall, to the extent
economically feasible as provided in subsection (d), remove--
            (1) 50,000 net metric tons of carbon dioxide, calculated on
        a lifecycle basis, for each of fiscal years 2026 through 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.
    (b) Timing.--The Secretary shall remove each amount of carbon
dioxide required under subsection (a) by not later than 3 years after
the beginning of the fiscal year for which such removal is required.
    (c) 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 for each of fiscal years 2026 through 2035 under subsection
(a) shall be removed by small removal projects.
    (d) Economic Feasibility.--
            (1) In general.--The removal of carbon dioxide under this
        section shall be considered economically feasible if such
        removal can be accomplished or, in the case of a contract,
        purchased--
                    (A) with respect to such removal carried out for
                any of fiscal years 2026 through 2027, at a price per
                metric ton of carbon dioxide of not more than $750
                (which the Secretary may adjust for inflation);
                    (B) with respect to such removal carried out for
                any 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) with respect to such removal carried out for
                any 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) with respect to such removal carried out for
                any 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) with respect to such removal carried out 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 any
        costs associated with the measurement, monitoring, reporting,
        and verification required under subsection (f)(1), including
        where such costs are directly paid to an independent entity
        conducting the measurement, monitoring, reporting, or
        verification.
            (3) Multi-year contracts.--Notwithstanding paragraph (1),
        the removal of carbon dioxide carried out pursuant to a multi-
        year contract entered into under subsection (h) shall be
        considered economically feasible if such removal can be
        accomplished at or below the applicable dollar amount for the
        first fiscal year of the contract, as provided in paragraph
        (1), through the entire length of such contract.
    (e) Federal Assistance.--Funds received pursuant to a contract
entered into under subsection (h) shall not be considered Federal
assistance or otherwise affect eligibility for any Federal assistance,
including tax incentives.
    (f) Measurement, Monitoring, Reporting, and Verification.--
            (1) In general.--The Secretary shall measure, monitor,
        report, and verify, through an independent third party, the net
        metric tons of carbon dioxide the Secretary removed for
        purposes of this section. If the Secretary enters into a
        contract with an entity under subsection (h), the Secretary
        shall include as a term or condition of such contract that such
        entity measure, monitor, report, and verify through an
        independent third party the net metric tons of carbon dioxide
        removed by such entity for purposes of this section.
            (2) Standards.--Not later than 1 year after the date of
        enactment of this section, the Secretary, in consultation with
        the Administrator of the National Oceanic and Atmospheric
        Administration, the Administrator of the Environmental
        Protection Agency, the Secretary of the Department of
        Agriculture, the Director of the National Institute of
        Standards and Technology, and other relevant Federal agencies
        as determined appropriate by the Secretary, shall establish
        standards for evaluation of the measurement, monitoring,
        reporting, and verification methods of net metric tons of
        carbon dioxide removed pursuant to this section. Such standards
        shall--
                    (A) require the use of the best available practices
                used by similar carbon dioxide removal projects;
                    (B) ensure safe, effective, and efficient removal
                of carbon dioxide;
                    (C) require independent, third-party verification
                of carbon dioxide removal and provide for effective
                oversight of such entities;
                    (D) ensure additionality, durability, and net-
                negativity of carbon dioxide removal;
                    (E) include criteria to determine whether the
                storage of captured carbon dioxide is durable;
                    (F) ensure scientifically rigorous and transparent
                methods for measurement, monitoring, reporting, and
                verifying under paragraph (1); and
                    (G) be regularly reviewed and, as necessary,
                updated to account for scientific and technological
                advancements.
            (3) Prohibition on double counting.--Carbon dioxide that is
        removed for the purposes of compliance 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 (a) for purposes
        of meeting the requirements of such subsection.
    (g) Priorities.--In carrying out this section, the Secretary shall
give priority to a project for the removal of carbon dioxide based on
the degree to which the project--
            (1) minimizes the amount of greenhouse gas emissions
        released by carrying out such project;
            (2) supports the commercialization of innovative removal
        technologies that demonstrate--
                    (A) near- and long-term cost competitiveness
                relative to similar technologies; and
                    (B) a potential to achieve the economic feasibility
                requirements established under subsection (d);
            (3) increases the diversity of commercially available
        eligible technologies;
            (4) may provide for domestic job creation, with a further
        preference for 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 extent
                practically feasible; and
            (8) includes robust public engagement and community
        benefits, including the use of enforceable community benefit
        agreements.
    (h) Contracts.--
            (1) In general.--After a transparent and competitive
        process, the Secretary may enter into one or more contracts to
        meet the requirements of subsection (a).
            (2) Length.--A contract entered into under this subsection
        may not be for a term of more than 15 years.
            (3) Maintenance of removal commitments.--The Secretary
        shall include as a term or condition in each contract entered
        into under this subsection that the entity that enters into the
        contract shall be liable to remove an additional amount of
        carbon dioxide that is equal to any amount of carbon dioxide
        that is released from any location where the entity stored
        carbon dioxide pursuant to the contract.
            (4) Limitation.--To the extent that there is a sufficient
        number of entities capable of removing carbon dioxide in a
        manner that meets the standards and requirements of this
        section under a contract entered into pursuant to this
        subsection, the Secretary shall ensure that no one entity is
        responsible for removing more than 25 percent of the net metric
        tons of carbon dioxide required under subsection (a) in any
        fiscal year.
    (i) Report.--Not later than January 1, 2029, and every 2 years
thereafter, the Secretary shall submit to Congress, and release to the
public, a report on the progress of carrying out the requirements of
this section, which such report shall include--
            (1) the amounts verified under subsection (f)(1) and the
        corresponding names of each independent third party that
        provided such verified amount;
            (2) the total price, and price per metric ton, to remove
        carbon dioxide for the applicable fiscal year as required under
        subsection (a);
            (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 (a);
            (4) any location where carbon dioxide was removed for the
        applicable fiscal year as required under subsection (a);
            (5) the methods associated with the measurement,
        monitoring, reporting, and verification required under
        subsection (f)(1);
            (6) the names of each entity conducting such measurement,
        monitoring, reporting, and verification required under
        subsection (f)(1);
            (7) an estimate of how removing carbon dioxide under this
        section affects nearby communities and residents, the
        environment, agriculture, and public health;
            (8) information on potential labor impacts and job creation
        resulting from fulfilling the requirements of subsection (a);
        and
            (9) an explanation of how the Secretary prioritized
        projects under subsection (g).
    (j) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
    (k) Definitions.--In this section:
            (1) Eligible technology.--
                    (A) In general.--The term ``eligible technology''
                means, as determined by the Secretary, any equipment,
                technique, or technology 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 which 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 considered an eligible technology under this section
                if the Secretary, by rule--
                            (i) determines an entity that carries out a
                        removal project under this section is able to
                        adequately measure, monitor, report, and verify
                        the amount of greenhouse gas emissions,
                        calculated on a lifecycle basis (including
                        direct emissions and significant indirect
                        emissions), removed using such equipment,
                        technique, or technology;
                            (ii) determines an entity that carries out
                        a removal project under this section is able to
                        adequately mitigate the environmental impacts
                        (including impacts on biodiversity, land use,
                        and air and water quality) associated with such
                        equipment, technique, or technology; and
                            (iii) requires an entity carrying out a
                        removal project under this section to--
                                    (I) adequately measure, monitor,
                                report, and verify the amount and
                                storage durability of greenhouse gas
                                emissions, calculated on a lifecycle
                                basis (including direct emissions and
                                significant indirect emissions),
                                associated with using such equipment,
                                technique, or technology; and
                                    (II) adequately mitigate the
                                environmental impacts (including
                                impacts on biodiversity, land use, and
                                air, soil, and water quality)
                                associated with using such equipment,
                                technique, or technology.
            (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 a 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 such transport and storage;
                and
                    (E) embodied emissions of the equipment used in the
                carbon dioxide removal activity.
            (3) Remove.--The term ``remove'' 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, such 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 such classes of wells are
                        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, on an annual basis, does not remove more than 5 percent
        of the net metric tons of carbon dioxide required to be removed
        for the applicable fiscal year under subsection (a).

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

    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 the Department of
Agriculture, and other relevant Federal agencies, shall submit to the
Committee on Energy and Commerce of the House of Representatives and
the Committee on Energy and Natural Resources of the Senate 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.
Such report shall include consideration of potential management and
organizational structures for the program, including--
            (1) a government sponsored enterprise;
            (2) a government corporation;
            (3) a program office with the Department of Energy or other
        Federal agency; and
            (4) a contracted service provider.
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