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June 16, 2021
Funding for Carbon Capture and Carbon Removal at DOE
Federally funded research and development (R&D) on
than the FY2021 authorized amounts in other divisions of
carbon capture and carbon removal is supported primarily
the law (as discussed in the “Energy Act of 2020
by the U.S. Department of Energy (DOE). In the Energy
Authorizations” section below.)
Act of 2020 (Division Z of P.L. 116-260), Congress
authorized an expanded scope for DOE carbon capture and
The explanatory statement provides at least $72.5 million of
carbon removal research programs. The President’s budget
DOE’s appropriated funds for R&D on CDR (which it
request for fiscal year 2022 (FY2022) likewise proposed
referred to as negative emissions technologies) in three
expanding DOE’s activities in these areas compared to
DOE programs:
previous years. This analysis summarizes these proposed
changes and provides information on FY2021 and FY2022
within Fossil Energy, not less than $40.0 million,
appropriations.
including not less than $15.0 million for DAC;
Background
within Energy Efficiency and Renewable Energy, not
Carbon capture and storage (CCS, sometimes called carbon
less than $10.0 million for DAC; and
capture and sequestration) is a process that is envisioned to
capture man-made carbon dioxide (CO
2) at its source and
within Science, not less than $22.5 million, including
store it underground to prevent its release to the
not less than $7.5 million for DAC.
atmosphere. Captured carbon also can be used in products,
as opposed to being stored underground, in a process called
Energy Act of 2020 Authorizations
carbon capture, utilization, and storage (CCUS). Carbon
DOE’s carbon capture R&D activities date back to at least
dioxide removal (CDR, sometimes called carbon removal
1997 and historically centered on two aspects: carbon
or negative emissions technologies) is a suite of
capture technology for coal-fired power plants and
technologies and practices that aim to remove CO2 from the
underground geologic storage reservoirs. In recent
atmosphere and store it underground or in living organisms.
appropriations reports, Congress recommended that DOE
CDR often involves natural CO2 sinks like forests and
expand its focus to include carbon capture for other sources
croplands, but also can involve technologies like direct air
and some types of CDR.
capture (DAC). Further discussion of some of these
technologies and historical appropriations for related DOE
Congress codified these and other objectives for DOE’s
R&D activities is provided in CRS Report R44902, Carbon
carbon capture and carbon removal R&D in P.L. 116-260,
Capture and Sequestration (CCS) in the United States.
the first major amendments to DOE’s statutory R&D
program objectives since 2007. Most authorizations are
CCS (with or without utilization) and CDR both are viewed
provided by the Energy Act of 2020. The USE IT Act
as potential options to address climate change, though they
(enacted as part of Division S of P.L. 116-260) provided
address different aspects of the issue. CCS equipment can
additional guidance for DOE carbon utilization R&D.
reduce CO2 emissions from point sources that use fossil
fuels (e.g., power plants or other industrial facilities),
The Energy Act of 2020 provides policy direction for
potentially resulting in carbon neutral facilities if 100% of
DOE’s CCUS R&D activities in Title IV—Carbon
the emissions are captured. DAC facilities can be located
Management. Sections 4002, 4003, and 4004 address
anywhere and can be potentially carbon negative if the
carbon capture, carbon storage, and carbon utilization,
DAC process uses non-emitting energy sources. CDR
respectively. In part, the law directs DOE to fund carbon
involving living organisms (e.g., based on agricultural soils
capture demonstration projects at varying stages of
or forestry practices) is often site-constrained by habitat and
technology maturity, and to continue funding carbon
related factors.
storage projects. Funded carbon capture projects must apply
to different types of facilities, such as natural gas-fired
FY2021 Appropriations
power plants and facilities outside the power sector. The
law also directs DOE to fund research to identify novel uses
Among other provisions, the Energy and Water
of carbon and CO2.
Development and Related Agencies Appropriations Act,
2021 (Division D of P.L. 116-260) provided regular
DOE’s CCUS R&D activities pursuant to Title IV—Carbon
appropriations for FY2021 for ongoing R&D activities
Management are authorized at $1,284.0 million in FY2021;
within DOE. Most of DOE’s CCUS research is funded
$1,285.3 million in FY2022; $1,131.6 million in FY2023;
through its Fossil Energy program. According to tables in
$1,132.9 million in FY2024; and $1,084.4 million in
the explanatory statement for the appropriations act,
FY2025 (all values rounded to the nearest tenth).
Congress provided $228.3 million to CCUS line items for
FY2021. (See Table 1.) These appropriations are lower
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link to page 2 Funding for Carbon Capture and Carbon Removal at DOE
The Energy Act of 2020 provides policy direction for
As shown in Table 1, DOE’s FY2022 request is for
DOE’s CDR R&D activities in Title V—Carbon Removal.
increased CCUS and CDR funding relative to FY2021
Section 5001 establishes a new DOE research program on
enacted appropriations. However, the requested increase is
CDR, to be coordinated with the U.S. Department of
less than the levels authorized by the Energy Act of 2020,
Agriculture and other relevant federal agencies. Section
especially for carbon capture.
5001 identifies six CDR options DOE should support:
DAC, bioenergy with CCS, enhanced geological
Table 1. Funding for Carbon Capture and Carbon
weathering, agricultural practices, forest management and
Removal R&D Activities at DOE
afforestation, and planned or managed carbon sinks.
Budget Authority in millions of dol ars
Section 5001 also establishes Air Capture Prize
Competitions for two classes of DAC. The larger
Program
FY2021
FY2022
FY2022
competition, for more mature technologies, is authorized at
Area
Enacted
Requested
Authorized
$100 million (available until expended) and may award
eligible facilities up to $180 per ton of CO
Carbon
126.3
150.0
1,030.0
2 captured and
stored. The awards are to be smaller if the captured CO
Capture
2 is
utilized, including for enhanced oil recovery.
Carbon
23.0
38.0
55.3
Utilization
DOE’s CDR R&D activities pursuant to Title V—Carbon
Removal are authorized at $175.0 million in FY2021 (of
Carbon
79.0
117.0
200.0
which $115.0 million is for DAC prize competitions, to
Storage
remain available until expended); $63.5 million in FY2022;
Subtotal
228.3
305.0
1,285.3
$66.2 million in FY2023; $69.5 million in FY2024; and
$72.9 million in FY2025 (all values rounded to the nearest
Carbon
n/a
63.0
63.5
tenth). The FY2021 appropriations reports did not address
Dioxide
any DAC prize competition.
Removal
FY2022 Appropriations
Total
228.3
368.0
1,348.8
On May 28, 2021, the Biden Administration released its
Sources: FY2021 enacted from explanatory statement for P.L. 116-
FY2022 budget request. DOE’s Budget in Brief describes
260, Division D. FY2022 requested from DOE FY2022 Budget in Brief.
changes the Administration proposes for carbon capture and
FY2022 authorized from P.L. 116-260, Division Z.
carbon removal research at DOE. To a certain extent, these
proposed changes align with the policy objectives provided
Notes: Carbon utilization authorized values rounded. FY2021
by the Energy Act of 2020. Some key proposed changes are
appropriations documents have no line item for carbon dioxide
summarized below.
removal. The USE IT Act authorizes $50 mil ion for carbon utilization
research to be available until expended (P.L. 116-260, Division S,
The Administration proposes to rename DOE’s Fossil
§102(c)), not included in this table.
Energy Research and Development appropriations account
to the Fossil Energy and Carbon Management (FECM)
Apart from requested changes to carbon capture and carbon
Research, Development, Demonstration and Deployment
removal R&D, two other proposed changes to DOE’s
account. Similarly, Biden Administration materials, such as
programs could potentially affect those activities should
press releases, refer to the Office of Fossil Energy and
Congress adopt them.
Carbon Management instead of the Office of Fossil Energy.
The budget request proposes a new Office of Clean Energy
The Administration proposes to expand carbon capture
Demonstrations. According to the Budget in Brief (p. 90),
research beyond application to coal-fired power plants.
this new office would “accelerat[e] the maturation of near-
According to its Budget in Brief (p. 52), DOE’s justification
and mid-term clean energy technologies and systems with
for the change is “Carbon Capture activity has completed
the goal of quicker commercial adoption and increased
its efforts in first-generation technology through successful
availability.” The request states this new office, should it be
demonstration projects. FY2022 activities represent a focus
funded, would focus on energy storage in its first year.
on new capture technologies in addition to the
Later years could potentially focus on carbon capture or
demonstration of more proven capture approaches.”
carbon removal.
The Administration also proposes a new DOE budget line
The request also proposes a new Advanced Research
item for CDR within FECM’s account. As described by
Projects Agency–Climate (ARPA-C) within DOE, modeled
DOE’s Budget in Brief (p. 53), “FECM has focused on the
on the existing Advanced Research Projects Agency–
chemical and mineral-based CDR approaches, which was
Energy (ARPA-E), to “develop technologies to address
previously funded under the Carbon Capture Program. It
climate adaptation, resilience and non-energy emissions
builds upon past CCUS efforts which have been funded
mitigation” (p. 2). Should the new program be funded, it
through FECM’s CCUS programs, such as past work on
could potentially support some carbon removal activities as
DAC mineralization, co-firing of biomass, and capture
part of a non-energy emissions mitigation portfolio.
technology development.”
Ashley J. Lawson, Analyst in Energy Policy
IF11861
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Funding for Carbon Capture and Carbon Removal at DOE
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