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HR 9975

Carbon Dioxide Removal Leadership Act of 2026

119th Congress Introduced by Scott Peters and 1 co-sponsor

Creates a federal program to remove CO2 from air or seawater with defined targets, costs, MRV, contracts up to 15 years, and reporting to scale CDR.

Introduced in House
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Bill Summary · HR 9975

Overview

  • Bill: H.R. 9975 (119th Congress, 2nd Session)
  • Title: Carbon Dioxide Removal Leadership Act of 2026

  • Purpose: Direct the Secretary of Energy to remove carbon dioxide directly from ambient air or seawater (carbon dioxide removal, CDR) and establish related standards, contracts, reporting, and study provisions to scale removal efforts.

  • Introduced: July 27, 2026 by Rep. Tonko (with Rep. Peters as co-sponsor)

  • Status: Referred to the House Committee on Energy and Commerce

Main Purpose and Intent

  • Create a federal program obligating the Secretary of Energy to systematically remove CO2 from the atmosphere or seawater on defined targets and to contract for removal using specified cost caps and verification requirements.
  • Establish a framework for measurement, verification, standards, contracting, prioritization, reporting, and long-term planning for CDR at scale.

Key Provisions and Changes

  • Section 2: Federal Requirement to Remove Carbon Dioxide

    • Required removal targets (lifecyle basis), by fiscal year:
    • FY2026–2027: 50,000 net metric tons per year
    • FY2028–2030: 500,000 net metric tons per year
    • FY2031–2035: 5,000,000 net metric tons per year
    • FY2036 onward: 10,000,000 net metric tons per year
    • Timing: Each target to be achieved by no later than 3 years after the start of the fiscal year in which removal is required.
    • Small removal project set-aside: At least 20% of annual removal must come from small removal projects (FY2026–2035).
    • Economic feasibility: Establishes price caps per metric ton by time period (adjusted for inflation):
    • FY2026–2027: up to $750/ton
    • FY2028–2030: up to $500/ton
    • FY2031–2033: up to $300/ton
    • FY2034–2036: up to $200/ton
    • FY2037 onward: up to $150/ton
    • Includes measurement, monitoring, reporting, and verification (MRV) costs in the feasibility price.
    • Multi-year contracts: Feasibility can be evaluated to cover entire contract length if the price is met in the first year.
    • Federal assistance: Funds from contracts are not considered Federal assistance for eligibility or tax incentives.

  • Section 2 (continued) – MRV and Standards

    • MRV to be performed by an independent third party; contractors must also MRV their own removals.
    • By 1 year after enactment, standards for MRV methods must be established in consultation with several agencies (NOAA, EPA, USDA, NIST, etc.).
    • Standards must emphasize best practices, safety, durability, additionality, transparency, and periodic updates.
    • Prohibition on double counting: CO2 removed for compliance cannot be counted toward other programs.

  • Section 2 – Priorities for Projects

    • Priorities in selecting projects include:
    • Emissions minimization within the project
    • Support for commercialization of innovative, potentially cost-competitive removal technologies
    • Variety/diversity of eligible technologies
    • Domestic job creation and partnerships with labor, small, minority-, and women-owned businesses
    • Domestic sourcing of materials
    • Economic development or diversification in regions tied to fossil fuels
    • Environmental and public health co-benefits (air/water/soil quality, land/water/energy footprints) and use of zero-emission energy where feasible
    • Robust public engagement and enforceable community benefit agreements

  • Section 2 – Contracts

    • After a transparent, competitive process, the Secretary may enter into one or more removal contracts.
    • Contract length: Up to 15 years.
    • Maintenance obligation: Contract terms require the entity to remove additional CO2 equal to any CO2 later released from locations where CO2 was stored under the contract.
    • Cap on single-entity contribution: No single entity should remove more than 25% of the annual requirement in a given fiscal year if there are enough capable providers.

  • Section 2 – Reporting and Transparency

    • Annual report (beginning Jan 1, 2029, then every two years) to Congress and public:
    • Verified removal amounts and third-party verifiers
    • Total price and price per ton
    • Technology categories, energy use, storage methods
    • Locations of CO2 removal
    • MRV methods and the verifiers
    • Entities conducting MRV
    • Local community/environmental health impacts and benefits
    • Labor impacts and job creation
    • How priorities were applied

  • Section 2 – Definitions

    • Eligible technology: Equipment/tech that removes CO2 directly from ambient air or seawater, placed in service after Jan 1, 2022; exclusions include removal from naturally releasing subsurface springs, natural photosynthesis (except eligible cases), and CO2 used in enhanced oil recovery.
    • Expansion: Allows certain waste-material–based removal tech (e.g., gasification, pyrolysis) to qualify if the Secretary ensures accurate MRV, environmental protection, durable storage, and lifecycle emissions accounting.
    • Lifecycle basis: Considers cradle-to-grave GHG emissions, including energy inputs, land-use changes, transport, storage leakage, and embodied emissions of equipment.
    • Definitions for “Remove,” “Small removal project,” and “Secretary.”

  • Section 3. Study on Long-Term Future

    • Not later than 1 year after enactment, DOE (with NOAA, EPA, USDA, and others) must provide a report evaluating design and financing options for a scalable CO2 removal offtake program aiming at gigaton-scale removal by 2050.
    • Considers organizational structures (government-sponsored enterprise, government corporation, program office, or contracted service provider).

  • Section 3 – Authorization of Appropriations

    • Authorization for such sums as necessary to carry out the section.

Who/Bodies Affected

  • Federal: Secretary of Energy, and various agencies for MRV standards (NOAA, EPA, USDA, NIST, etc.).
  • Private sector: Firms providing CO2 removal technologies and services, including potential multiyear contractors.
  • Communities and labor: Regions tied to fossil fuel activity and communities affected by CDR projects; emphasis on inclusive, diverse contracting and community benefits.
  • Public: Recipients of annual reports and MRV data.

Timelines and Procedural Notes

  • Target removals begin in FY2026–2027 with initial 50,000 tons; ramping to multi-million-ton levels by 2036 onward.
  • MRV standards to be established within 1 year of enactment.
  • Biannual reporting cycle begins in 2029 (first report due Jan 1, 2029, then every two years).
  • Contracts limited to 15-year terms; larger programs may be studied for long-term governance by 2050.
  • 20% of capacity reserved for small removal projects through 2035.

Potential Impacts

  • Establishes a formal, government-led pathway for large-scale CDR with defined cost caps, verification, and accountability.
  • Promotes development and deployment of diverse CDR technologies, with a bias toward domestic jobs and local benefits.
  • Creates a governance/financing framework for possible future national CDR programs and scalability to gigaton levels by 2050.
  • Adds comprehensive reporting and independent verification requirements to ensure transparency and avoid double counting.

Compiled from official sources — confirm details with the bill’s official record.

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