Federal government bets billions on carbon removal—and fossil-fuel workers

What it does

This bill requires the Department of Energy to purchase and deploy direct air capture (DAC) and ocean-based carbon dioxide removal technologies, starting with 50,000 metric tons annually in 2026–2027, scaling to 10 million metric tons annually by 2036 and beyond. The Secretary must contract with private companies and independent verifiers to remove CO₂ at declining price caps ($750/ton initially, dropping to $150/ton by 2037), prioritizing projects that create domestic jobs, support small and minority-owned businesses, and benefit fossil-fuel-dependent communities. The bill also mandates a study on scaling federal CO₂ removal to gigaton levels by 2050.

Why we flagged it

The bill's core mechanism is a federal procurement mandate for carbon dioxide removal services, structured as a market-creation tool to drive private-sector innovation while explicitly embedding economic-development and labor-equity priorities. It is neither pure climate policy nor pure industrial policy, but a hybrid that uses government purchasing power to achieve both environmental and regional economic goals.

What the text implies

• The bill creates a guaranteed federal revenue stream for carbon removal companies, potentially attracting venture capital and spurring a new industry, but success depends entirely on whether removal costs actually decline to the specified price caps—if they don't, the Secretary may be unable to meet targets without exceeding budget authority.
• The 'economically feasible' standard allows the Secretary to skip removal in any year if costs exceed the price cap, creating a potential loophole where climate targets are deferred rather than met, especially in early years when technology is expensive.

The full analysis lists 5 implications of this text.

Who stands to gain

Direct air capture (DAC) technology companies; Ocean-based carbon removal firms; Independent third-party verification and monitoring services