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DOE’s Carbon Capture and Storage (CCS) and Carbon
Removal Programs
Federally funded research and development (R&D) on
The explanatory statement directed at least $72.5 million of
carbon capture and storage (CCS) and carbon removal is
DOE’s appropriated funds for R&D on CDR (which it
supported primarily by the U.S. Department of Energy
referred to as negative emissions technologies) in three
(DOE). This analysis summarizes recent authorizations and
DOE programs:
appropriations for these activities, covering FY2021 and
FY2022.
within Fossil Energy, not less than $40.0 million,
including not less than $15.0 million for DAC;
Background
CCS is a process that is envisioned to capture man-made
within Energy Efficiency and Renewable Energy, not
carbon dioxide (CO2) at its source and store it underground
less than $10.0 million for DAC; and
to prevent its release to the atmosphere. Captured carbon
also can be used in products, as opposed to being stored
within Science, not less than $22.5 million, including
underground, in a process called carbon capture, utilization,
not less than $7.5 million for DAC.
and storage (CCUS). Carbon dioxide removal (CDR,
sometimes called carbon removal or negative emissions
Energy Act of 2020 Authorizations
technologies) is a suite of technologies and practices that
DOE’s carbon capture R&D activities date back to at least
aim to remove CO2 from the atmosphere and store it
1997 and historically centered on two aspects: carbon
underground or in living organisms. CDR often involves
capture technology for coal-fired power plants and
natural CO2 sinks like forests and croplands, but also can
underground geologic storage reservoirs. In recent
involve technologies like direct air capture (DAC). Further
appropriations reports, Congress recommended that DOE
discussion of some of these technologies and historical
expand its focus to include carbon capture for other sources
appropriations for related DOE R&D activities is provided
and some types of CDR.
in CRS Report R44902, Carbon Capture and Sequestration
(CCS) in the United States.
Congress codified these and other objectives for DOE’s
carbon capture and carbon removal R&D in P.L. 116-260,
CCS (with or without utilization) and CDR both are viewed
the first major amendments to DOE’s statutory R&D
as potential options to address climate change, though they
program objectives since 2007. Most authorizations are
address different aspects of the issue. CCS equipment can
provided by the Energy Act of 2020. The USE IT Act
reduce CO2 emissions from point sources that use fossil
(enacted as part of Division S of P.L. 116-260) provided
fuels (e.g., power plants or other industrial facilities),
additional guidance for DOE carbon utilization R&D.
potentially resulting in low-carbon facilities. DAC facilities
can be located anywhere and can be potentially carbon
The Energy Act of 2020 provides policy direction for
negative if the DAC process uses non-emitting energy
DOE’s CCUS R&D activities in Title IV—Carbon
sources. CDR involving living organisms (e.g., based on
Management. Sections 4002, 4003, and 4004 address
agricultural soils or forestry practices) is often site-
carbon capture, carbon storage, and carbon utilization,
constrained by habitat and related factors.
respectively. In part, the law directs DOE to fund carbon
capture demonstration projects at varying stages of
FY2021 Appropriations
technology maturity, and to continue funding carbon
storage projects. Funded carbon capture projects must apply
Among other provisions, the Energy and Water
to different types of facilities, such as natural gas-fired
Development and Related Agencies Appropriations Act,
power plants and facilities outside the power sector. The
2021 (Division D of P.L. 116-260) provided regular
law also directs DOE to fund research to identify novel uses
appropriations for FY2021 for ongoing R&D activities
of carbon and CO2. DOE’s CCUS R&D activities pursuant
within DOE. Most of DOE’s CCUS research is funded
to Title IV are authorized at $1,284.0 million in FY2021;
through its Fossil Energy program (renamed Fossil Energy
$1,285.3 million in FY2022; $1,131.6 million in FY2023;
and Carbon Management in FY2022). According to the
$1,132.9 million in FY2024; and $1,084.4 million in
explanatory statement for the appropriations act, Congress
FY2025 (all values rounded to the nearest tenth).
provided $188.3 million to CCUS line items for FY2021
(see Table 1). These appropriations are lower than the
The Energy Act of 2020 provides policy direction for
FY2021 authorized amounts in other divisions of the law
DOE’s CDR R&D activities in Title V—Carbon Removal.
(as discussed in the “Energy Act of 2020 Authorizations”
Section 5001 establishes a new DOE research program on
section below.)
CDR, to be coordinated with the U.S. Department of
Agriculture and other relevant federal agencies. Section
https://crsreports.congress.gov
DOE’s Carbon Capture and Storage (CCS) and Carbon Removal Programs
5001 identifies six CDR options DOE should support:
realize economies of scale for CO2 transportation
DAC, bioenergy with CCS, enhanced geological
infrastructure in the United States and address a “chicken
weathering, agricultural practices, forest management and
and egg” problem identified for CCS development. IIJA
afforestation, and planned or managed carbon sinks.
provided $2.1 billion for CIFIA for FY2022-FY2023, the
Section 5001 also establishes Air Capture Prize
bulk of which is provided in FY2023.
Competitions for two classes of DAC. The larger
competition, for more mature technologies, is authorized at
Another newly established program focuses on the
$100 million (available until expended) and may award
development of “commercial large-scale” carbon storage
eligible facilities up to $180 per ton of CO2 captured and
projects. IIJA provided $2.5 billion for this program for
stored. The awards are to be smaller if the captured CO2 is
FY2022-FY2026.
utilized, including for enhanced oil recovery. DOE’s CDR
R&D activities pursuant to Title V are authorized at $175.0
A third newly established program aims to develop four
million in FY2021 (of which $115.0 million is for DAC
Regional Direct Air Capture Hubs. Each hub should have
prize competitions, to remain available until expended);
the capacity to capture, store, and/or utilize at least one
$63.5 million in FY2022; $66.2 million in FY2023; $69.5
million tons of CO2 annually. IIJA provided $2.5 billion for
million in FY2024; and $72.9 million in FY2025 (all values
DAC hubs for FY2022-FY2026.
rounded to the nearest tenth). The FY2021 appropriations
reports did not address any DAC prize competition.
FY2022 Appropriations
The Energy and Water Development and Related Agencies
Infrastructure Investment and Jobs Act
Act, 2022 (Division D of P.L. 117-103) provided regular
The Infrastructure Investment and Jobs Act (IIJA; P.L. 117-
appropriations for DOE’s R&D activities, among other
58) made additional amendments to DOE’s CCS and CDR
provisions.
programs, established several new programs, and provided
supplemental appropriations for FY2022-FY2026.
For FY2022 regular appropriations, Congress directed $225
million for CCS, according to the explanatory statement for
One newly established program is the Carbon Dioxide
the appropriations act. Additionally, Congress directed
Transportation Infrastructure Finance and Innovation
$104 million for CDR, of which not less than $75 million is
Program (CIFIA). CIFIA is to provide low-interest loans
for DAC. One funded congressionally directed spending
for eligible CO2 pipeline projects and grants for initial
project for DOE was for CCS: $9 million for an engineering
excess capacity on eligible new pipelines. CIFIA aims to
study of a CCS project in Louisiana.
Table 1. Funding for Carbon Capture and Storage (CCS) and Carbon Removal R&D Activities at DOE
Budget authority in mil ions of dol ars
FY2022
FY2021
Enacted
FY2022
Program Area
Enacted
(Regular)
Supplemental
Carbon Capture
86.3
99.0
1,344.0
Carbon Utilization
23.0
29.0
41.0
Carbon Storage
79.0
97.0
500.0
CIFIA
n/a
n/a
3.0
CCS Subtotal
188.3
225.0
1,888.0
Carbon Dioxide Removal (FECM)
40.0
49.0
815.0
Carbon Dioxide Removal (other offices)
32.5
55.0
n/a
CDR Subtotal
72.5
104.0
815.0
Total
260.8
329.0
2,703.0
Sources: FY2021 enacted and FY2022 enacted from explanatory statement for P.L. 117-103, Division D. FY2022 supplemental from P.L. 117-
58, Division J.
Notes: FECM = Office of Fossil Energy and Carbon Management, the lead DOE office for CCS and carbon removal research activities. CIFIA =
Carbon Dioxide Transportation Infrastructure Finance and Innovation program. Some of the FY2022 supplemental appropriations for CCS are
to be administered by DOE’s Office of Clean Energy Demonstrations.
IF11861
Ashley J. Lawson, Analyst in Energy Policy
https://crsreports.congress.gov
DOE’s Carbon Capture and Storage (CCS) and Carbon Removal Programs
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https://crsreports.congress.gov | IF11861 · VERSION 2 · UPDATED