De-risking Compensation Program

(a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available through September 30, 2034, to carry out this section: Provided, That no disbursements may be made under this section after September 30, 2034. (b) De-Risking Compensation Program (1) Establishment There is established in the Department of Energy a program, to be known as the De-Risking Compensation Program, to provide compensation to sponsors, with respect to covered energy projects, that suffer unrecoverable losses due to qualifying Federal actions. (2) Eligibility A sponsor may enroll in the program with respect to a covered energy project if— (A) all approvals or permits required or authorized under Federal law for the covered energy project have been received, regardless of whether a court order subsequently remands or vacates such approvals or permits; (B) the sponsor commenced construction of the covered energy project or made capital expenditures with respect to the covered energy project in reliance on such approvals or permits; and (C) at the time of enrollment, no qualifying Federal action has been issued or taken that has an effect described in subsection (g)(4)(B) on the covered energy project. (3) Application A sponsor may apply to enroll with respect to a covered energy project in the program by submitting to the Secretary an application containing such information as the Secretary may require. (4) Enrollment Not later than 90 days after the date on which the Secretary receives an application submitted under paragraph (3), the Secretary shall enroll the sponsor in the program for the covered energy project with respect to which the application was submitted if the Secretary determines that the sponsor meets the requirements of paragraph (2) with respect to the covered energy project. (c) Fees and premiums (1) Enrollment fee Not later than 60 days after the date on which a sponsor is enrolled in the program under subsection (b)(4), the sponsor shall pay to the Secretary a one-time enrollment fee equal to 5 percent of the sponsor capital contribution for the applicable covered energy project. (2) Annual premiums (A) In general The Secretary shall establish and annually collect a premium from each sponsor enrolled in the program for each covered energy project with respect to which the sponsor is enrolled. (B) Requirements A premium established and collected from a sponsor under subparagraph (A) shall— (i) be equal to 1.5 percent of the sponsor capital contribution for the applicable covered energy project; and (ii) be paid beginning with the year of enrollment and continuing until the earlier of— (I) fiscal year 2033; or (II) the year in which the sponsor withdraws from the program with respect to the applicable covered energy project. (C) Adjustment The Secretary may adjust the percentage required by subparagraph (B)(i) once every two fiscal years to ensure Fund solvency, except that— (i) the Secretary may not vary such percentage between sponsors or projects; and (ii) such percentage may not exceed 5 percent. (D) Publication The Secretary shall publish in the Federal Register not later than 60 days prior to the start of each fiscal year a list of each premium to be collected for the fiscal year. (d) Compensation (1) In general Using amounts available in the Fund, and subject to paragraph (5), the Secretary shall provide compensation to a sponsor enrolled in the program with respect to a covered energy project if— (A) the sponsor paid the enrollment fee and the premium for each year the sponsor was enrolled in the program with respect to the covered energy project; and (B) the sponsor demonstrates, in a request submitted to the Secretary, that a qualifying Federal action has been issued or taken that has an effect described in subsection (g)(4)(B) on the covered energy project. (2) Request for compensation A request under paragraph (1) shall contain the following: (A) Information on each Federal approval or permit relating to the covered energy project, including the date on which such approval or permit was issued. (B) A certified accounting of capital expenditures made in reliance on each such Federal approval or permit. (C) A description of, and, if applicable, a citation to, the applicable qualifying Federal action. (D) A causal statement showing how the qualifying Federal action directly resulted in unrecoverable losses or cessation of the covered energy project and that absent the qualifying Federal action the project would have otherwise been viable. (E) Any supporting economic analysis demonstrating the financial effects of the covered energy project being rendered unviable. (3) Approval The Secretary shall approve a request submitted under paragraph (1) and, subject to paragraph (5), provide compensation to the applicable sponsor if the Secretary determines that such request is complete and in compliance with the requirements of this section. (4) Limitations on denials The Secretary may not deny a request submitted under paragraph (1) based on— (A) the merit of the applicable covered energy project, as determined by the Secretary; or (B) the type of technology used in the applicable covered energy project. (5) Limitations on compensation amount (A) Sponsors The amount of compensation provided to a sponsor under this subsection with respect to a covered energy project shall not exceed the sponsor capital contribution for the covered energy project. (B) Available funds In determining the amount of compensation to be provided to a sponsor under this subsection— (i) such amount may be any amount, including zero, that is less than or equal to the amount of the sponsor capital contribution for the covered energy project, regardless of the amount of capital expenditures made by the sponsor (as certified and included in the request pursuant to paragraph (2)(B)); and (ii) the Secretary shall determine such amount in a manner that ensures no funds will be obligated or expended in amounts that exceed the amounts in the Fund at the time of approval of the applicable request submitted under paragraph (1). (e) De-Risking Compensation Fund (1) Establishment There is established a fund, to be known as the De-Risking Compensation Fund, consisting of such amounts as are deposited in the Fund under this subsection or credited to the Fund under subsection (f). (2) Use of funds Amounts in the Fund— (A) shall remain available until September 30, 2034; and (B) may be used, without further appropriation— (i) to make compensation payments to sponsors under this section; and (ii) to administer the program. (3) Limitation on administrative expenses Not more than 3 percent of amounts in the Fund may be used to administer the program. (4) Deposits The Secretary shall deposit the fees and premiums received under subsection (c) into the Fund. (f) Fund management and investment The Fund shall be managed and invested as follows: (1) The Fund shall be maintained and administered by the Secretary. (2) Amounts in the Fund shall be invested in obligations of the United States in accordance with the requirements of section 9702 of title 31, United States Code. (3) The interest on such investments shall be credited to the Fund. (g) Definitions For purposes of this section: (1) Covered energy project The term covered energy project means a project located in the United States for the development, extraction, processing, transportation, or use of coal, coal byproducts, critical minerals, oil, natural gas, or nuclear energy with a total projected capital expenditure of not less than $30,000,000, as certified by the Secretary. (2) Fund The term Fund means the De-Risking Compensation Fund established in subsection (e)(1). (3) Program The term program means the De-Risking Compensation Program established in subsection (b)(1). (4) Qualifying Federal action The term qualifying Federal action means a regulation, administrative decision, or executive action— (A) issued or taken after a sponsor received a Federal approval or permit for a covered energy project; and (B) that revokes such approval or permit or cancels, delays, or renders unviable the covered energy project regardless of whether the regulation, administrative decision, or executive action is responsive to a court order. (5) Secretary The term Secretary means the Secretary of Energy. (6) Sponsor The term sponsor means an entity incorporated and headquartered in the United States with an ownership or development interest in a covered energy project. (7) Sponsor capital contribution The term sponsor capital contribution means the projected capital expenditure of a sponsor for a covered energy project, as certified by the Secretary at the time of enrollment in the program, which shall include verifiable development, construction, permitting, and financing costs directly related to the covered energy project.

(a) Appropriation In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available through September 30, 2034, to carry out this section: Provided, That no disbursements may be made under this section after September 30, 2034. (b) De-Risking Compensation Program (1) Establishment There is established in the Department of Energy a program, to be known as the De-Risking Compensation Program, to provide compensation to sponsors, with respect to covered energy projects, that suffer unrecoverable losses due to qualifying Federal actions. (2) Eligibility A sponsor may enroll in the program with respect to a covered energy project if— (A) all approvals or permits required or authorized under Federal law for the covered energy project have been received, regardless of whether a court order subsequently remands or vacates such approvals or permits; (B) the sponsor commenced construction of the covered energy project or made capital expenditures with respect to the covered energy project in reliance on such approvals or permits; and (C) at the time of enrollment, no qualifying Federal action has been issued or taken that has an effect described in subsection (g)(4)(B) on the covered energy project. (3) Application A sponsor may apply to enroll with respect to a covered energy project in the program by submitting to the Secretary an application containing such information as the Secretary may require. (4) Enrollment Not later than 90 days after the date on which the Secretary receives an application submitted under paragraph (3), the Secretary shall enroll the sponsor in the program for the covered energy project with respect to which the application was submitted if the Secretary determines that the sponsor meets the requirements of paragraph (2) with respect to the covered energy project. (c) Fees and premiums (1) Enrollment fee Not later than 60 days after the date on which a sponsor is enrolled in the program under subsection (b)(4), the sponsor shall pay to the Secretary a one-time enrollment fee equal to 5 percent of the sponsor capital contribution for the applicable covered energy project. (2) Annual premiums (A) In general The Secretary shall establish and annually collect a premium from each sponsor enrolled in the program for each covered energy project with respect to which the sponsor is enrolled. (B) Requirements A premium established and collected from a sponsor under subparagraph (A) shall— (i) be equal to 1.5 percent of the sponsor capital contribution for the applicable covered energy project; and (ii) be paid beginning with the year of enrollment and continuing until the earlier of— (I) fiscal year 2033; or (II) the year in which the sponsor withdraws from the program with respect to the applicable covered energy project. (C) Adjustment The Secretary may adjust the percentage required by subparagraph (B)(i) once every two fiscal years to ensure Fund solvency, except that— (i) the Secretary may not vary such percentage between sponsors or projects; and (ii) such percentage may not exceed 5 percent. (D) Publication The Secretary shall publish in the Federal Register not later than 60 days prior to the start of each fiscal year a list of each premium to be collected for the fiscal year. (d) Compensation (1) In general Using amounts available in the Fund, and subject to paragraph (5), the Secretary shall provide compensation to a sponsor enrolled in the program with respect to a covered energy project if— (A) the sponsor paid the enrollment fee and the premium for each year the sponsor was enrolled in the program with respect to the covered energy project; and (B) the sponsor demonstrates, in a request submitted to the Secretary, that a qualifying Federal action has been issued or taken that has an effect described in subsection (g)(4)(B) on the covered energy project. (2) Request for compensation A request under paragraph (1) shall contain the following: (A) Information on each Federal approval or permit relating to the covered energy project, including the date on which such approval or permit was issued. (B) A certified accounting of capital expenditures made in reliance on each such Federal approval or permit. (C) A description of, and, if applicable, a citation to, the applicable qualifying Federal action. (D) A causal statement showing how the qualifying Federal action directly resulted in unrecoverable losses or cessation of the covered energy project and that absent the qualifying Federal action the project would have otherwise been viable. (E) Any supporting economic analysis demonstrating the financial effects of the covered energy project being rendered unviable. (3) Approval The Secretary shall approve a request submitted under paragraph (1) and, subject to paragraph (5), provide compensation to the applicable sponsor if the Secretary determines that such request is complete and in compliance with the requirements of this section. (4) Limitations on denials The Secretary may not deny a request submitted under paragraph (1) based on— (A) the merit of the applicable covered energy project, as determined by the Secretary; or (B) the type of technology used in the applicable covered energy project. (5) Limitations on compensation amount (A) Sponsors The amount of compensation provided to a sponsor under this subsection with respect to a covered energy project shall not exceed the sponsor capital contribution for the covered energy project. (B) Available funds In determining the amount of compensation to be provided to a sponsor under this subsection— (i) such amount may be any amount, including zero, that is less than or equal to the amount of the sponsor capital contribution for the covered energy project, regardless of the amount of capital expenditures made by the sponsor (as certified and included in the request pursuant to paragraph (2)(B)); and (ii) the Secretary shall determine such amount in a manner that ensures no funds will be obligated or expended in amounts that exceed the amounts in the Fund at the time of approval of the applicable request submitted under paragraph (1). (e) De-Risking Compensation Fund (1) Establishment There is established a fund, to be known as the De-Risking Compensation Fund, consisting of such amounts as are deposited in the Fund under this subsection or credited to the Fund under subsection (f). (2) Use of funds Amounts in the Fund— (A) shall remain available until September 30, 2034; and (B) may be used, without further appropriation— (i) to make compensation payments to sponsors under this section; and (ii) to administer the program. (3) Limitation on administrative expenses Not more than 3 percent of amounts in the Fund may be used to administer the program. (4) Deposits The Secretary shall deposit the fees and premiums received under subsection (c) into the Fund. (f) Fund management and investment The Fund shall be managed and invested as follows: (1) The Fund shall be maintained and administered by the Secretary. (2) Amounts in the Fund shall be invested in obligations of the United States in accordance with the requirements of section 9702 of title 31, United States Code. (3) The interest on such investments shall be credited to the Fund. (g) Definitions For purposes of this section: (1) Covered energy project The term covered energy project means a project located in the United States for the development, extraction, processing, transportation, or use of coal, coal byproducts, critical minerals, oil, natural gas, or nuclear energy with a total projected capital expenditure of not less than $30,000,000, as certified by the Secretary. (2) Fund The term Fund means the De-Risking Compensation Fund established in subsection (e)(1). (3) Program The term program means the De-Risking Compensation Program established in subsection (b)(1). (4) Qualifying Federal action The term qualifying Federal action means a regulation, administrative decision, or executive action— (A) issued or taken after a sponsor received a Federal approval or permit for a covered energy project; and (B) that revokes such approval or permit or cancels, delays, or renders unviable the covered energy project regardless of whether the regulation, administrative decision, or executive action is responsive to a court order. (5) Secretary The term Secretary means the Secretary of Energy. (6) Sponsor The term sponsor means an entity incorporated and headquartered in the United States with an ownership or development interest in a covered energy project. (7) Sponsor capital contribution The term sponsor capital contribution means the projected capital expenditure of a sponsor for a covered energy project, as certified by the Secretary at the time of enrollment in the program, which shall include verifiable development, construction, permitting, and financing costs directly related to the covered energy project.