113 S2152 IS: Advanced Clean Coal Technology Investment in Our Nation Act of 2014
U.S. Senate
2014-03-25
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents(a)This Act may be cited as the
Advanced Clean Coal Technology Investment in Our Nation Act of 2014
or the ACCTION Act of 2014
.(b)The table of contents of this Act is as follows:Sec. 1. Short title; table of contents.
Sec. 2. Findings.
TITLE I—Federal investment in clean coal technologies
Sec. 101. Large-scale carbon storage program.
Sec. 102. Research, development and demonstration programs.
Sec. 103. Innovative technology loan guarantee program.
Sec. 104. Coordination of clean coal generating projects.
TITLE II—Federal incentives for private investment in clean coal technologies
Sec. 201. Seven-year amortization for certain systems installed on coal-fired electric generation
units.
Sec. 202. Credit for carbon sequestration from coal facilities.
Sec. 203. Variable price support for carbon dioxide sequestration.
Sec. 204. Clean energy coal bonds.
TITLE III—Reports required
Sec. 301. Definitions.
Sec. 302. Reports to Congress.
2.Congress finds that—(1)the President believes that the United States energy policy must have an all-of-the-above strategy for the 21st century that develops every source of American-made
energy
;(2)according to the Energy Information Administration, 37 percent of all energy generated in the
United States comes from coal and by 2040, coal will still account for 32
percent of energy generation in the United States;(3)the United States has enough recoverable coal reserves to last at least another 250 years;(4)as the world becomes increasingly carbon constrained, coal-fired power plants must increasingly be
integrated
with carbon capture and storage systems;(5)efficiency improvements to the coal fleet will decrease carbon emissions and use less coal while
providing the same power;(6)the potential to increase efficiency is evident in the current fleet of power plants in the United
States, as the top 10 percent of coal plants have efficiencies as high as
37 percent while the average plant has an efficiency of 32 percent;(7)efficiencies as high as 48 percent may be attained with ultrasupercritical coal-fired power plants;(8)replacing the average subcritical coal-fired power plant with a supercritical or ultrasupercritical
coal-fired power plant would reduce carbon emissions by 18 to 22 percent
per megawatt hour of energy generated; and(9)the coal industry is a significant source of jobs in the United States as in 2012 alone, coal was
responsible for 137,650 jobs for coal miners, 92,472 jobs for operator
employees, and 45,178 jobs for contractors.<enum>I</enum><header>Federal investment in clean coal technologies</header><section id="idCB858EC20ED14035A1B8015E97237C38"><enum>101.</enum><header>Large-scale
carbon storage program</header><subsection id="idADCC7112D5064018AB78F06A743A5B60"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subtitle F of title
IX of the <act-name>Energy Policy Act of 2005</act-name> (42 U.S.C. 16291 et
seq.) is amended by inserting after section 963 (<external-xref legal-doc="usc" parsable-cite="usc/42/16293">42 U.S.C. 16293</external-xref>) the
following:</text><quoted-block display-inline="no-display-inline" id="id7E385B81F04243AAB0183F53CA1F1429" style="OLC"><section id="IDeee046c35c194137b9d5ca1b09e19bac"><enum>963A.</enum><header>Large-scale
carbon storage program</header><subsection id="idDB2E846F35FE46049982D5AE6D70F46C"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text><paragraph id="id3A1A9297D3964D18B6AC00D2A70AB0C3"><enum>(1)</enum><header>Industrial
source</header><text>The term <term>industrial source</term> means any source
of carbon dioxide that is not naturally occurring.</text></paragraph><paragraph id="idA52CBB94855F4472A37031A82BDC3373"><enum>(2)</enum><header>Large-scale</header><text>The
term <term>large-scale</term> means the injection from industrial sources into a geological
formation of—</text><subparagraph id="id0590EB5BB4F248129E1E8A98ADE99A47"><enum>(A)</enum><text>over 1,000,000 tons of
carbon dioxide each year; or</text></subparagraph><subparagraph id="idD7ED06CAD174434ABA16A90ECC537AA3"><enum>(B)</enum><text>carbon dioxide to a scale that
demonstrates the ability to inject and sequester several million metric
tons of industrial source carbon dioxide for a large number of years.</text></subparagraph></paragraph><paragraph id="id28E09BE51B264EEEB1AF747181D642C3"><enum>(3)</enum><header>Secretary
concerned</header><text>The term <term>Secretary concerned</term> means—</text><subparagraph id="idA230DA7D1AE64ED5A8965B11429FD3C2"><enum>(A)</enum><text>the Secretary of
Agriculture (acting through the Chief of the Forest Service), with
respect to
National Forest System land; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7F5D46B4D2C44FA1BE152FE16CD9D388"><enum>(B)</enum><text>the Secretary of
the Interior, with respect to land managed by the Bureau of Land
Management
(including land held for the benefit of an Indian tribe).</text></subparagraph></paragraph></subsection><subsection id="ID3855638709d84f76925d7dd31693d8f3"><enum>(b)</enum><header>Program</header><text>The Secretary shall carry out a program to demonstrate
the
integration of systems for the capture,
transportation, and injection of carbon dioxide from industrial sources,
either for the purpose of
long-term geological storage or enhanced oil recovery at a commercial
scale.</text></subsection><subsection id="ID4c496684535c4e3bb3952ae6c608e859"><enum>(c)</enum><header>Authorized
assistance</header><paragraph id="id5254C4A4B47840A7A5A16A9899DF5F33"><enum>(1)</enum><header>In general</header><text>In carrying out the program, the Secretary may enter
into cooperative agreements to provide financial and technical
assistance to up
to 10 large-scale geological storage or enhanced oil recovery
projects.</text></paragraph><paragraph id="id6BD466EBB96B439CA340AC0A19B40026"><enum>(2)</enum><header>Limitation</header><text>Not fewer than 3 of the 10 projects selected shall be large-scale projects
that undertake site characterization and permitting to qualify the
projects as ready for long-term saline storage sites.</text></paragraph></subsection><subsection id="IDcab6ec6410ab48d59548eaf2f15aad64"><enum>(d)</enum><header>Project
selection</header><text>The Secretary shall competitively select recipients of
cooperative agreements under this section from among applicants
that—</text><paragraph id="ID94993f29b9c94e27a4caf2c956b284a4"><enum>(1)</enum><text>provide the
Secretary with sufficient geological site information (including
hydrogeological and geophysical information) to establish that the
proposed
geological formation is capable of use for enhanced oil recovery
and, in the case of geological storage, is capable of long-term storage of
the
injected carbon
dioxide, including—</text><subparagraph id="ID0ab7768b49d54a308e53e70f5f98330c"><enum>(A)</enum><text>the location,
extent, and storage capacity of the geological storage unit at the
site into
which the carbon dioxide will be injected;</text></subparagraph><subparagraph id="IDb7c438e4f0574e0799246e97346ce036"><enum>(B)</enum><text>the principal
potential modes of geomechanical failure in the geological storage
unit;</text></subparagraph><subparagraph id="ID59682908f0e541839b6d02206f787caa"><enum>(C)</enum><text>the ability of
the geological storage unit to retain injected carbon dioxide;</text></subparagraph><subparagraph id="IDd8bc5c002e1f4fbe8a4841288558a92b"><enum>(D)</enum><text>the measurement,
monitoring, and verification requirements necessary to ensure
adequate
information on the operation of the geological storage unit during
and after
the injection of carbon dioxide; and</text></subparagraph><subparagraph id="idA58EA5000F9047098304A14C1B75CFCD"><enum>(E)</enum><text>a study and report on the rate of injection of carbon dioxide from power plants (based on operating
the plant on a 24-hours-a-day, 7-days-a-week, and 365-days-a-year basis
over several decades) necessary to avoid—</text><clause id="id483ECBE0E24D4A71B0127492759A2F37"><enum>(i)</enum><text>imbalances of carbon dioxide; and</text></clause><clause id="id0DDA79CCF68F49E493D5262B9C682C35"><enum>(ii)</enum><text>making the proposed geological formation of the site into which the carbon dioxide will be injected
unusable, unstable, or such that there would be forced stoppages of
injection;</text></clause></subparagraph></paragraph><paragraph id="ID5e631431012143948799bc120ae87e05"><enum>(2)</enum><text>have legal authority to use the land
or interests in land necessary for—</text><subparagraph id="ID2608a3e0b2e3441598a792ceb60fe6c6"><enum>(A)</enum><text>the injection of the carbon dioxide at the proposed geological storage unit or enhanced oil
recovery site;
and</text></subparagraph><subparagraph id="ID89b96f40f5204964bf25f41c43f492a3"><enum>(B)</enum><text>the storage, closure,
monitoring, and long-term stewardship of the geological storage
unit for geological storage of carbon dioxide; and</text></subparagraph></paragraph><paragraph id="ida933056bf7f24b34a7afc862645e57b9"><enum>(3)</enum><text>sequester not fewer than 500,000 metric tons of carbon dioxide in 1 contiguous geographic and
geologic formation.</text></paragraph></subsection><subsection id="ID60ca636b74e14ad08a7766462e022783"><enum>(e)</enum><header>Terms and
conditions</header><text>The Secretary shall condition receipt of financial
assistance pursuant to a cooperative agreement under this section
on the
recipient agreeing—</text><paragraph id="IDf6f050abfa1749bb8cb0803de9fcdbdf"><enum>(1)</enum><text>to comply with all
applicable Federal and State laws (including regulations),
including—</text><subparagraph id="id501F493729B240E2B4A80A0878A5358F"><enum>(A)</enum><text>the requirements of the underground injection control program under part C
of the Safe Drinking Water Act (42 U.S.C. 300h
et seq.) (referred to in this section as the <quote>UIC program</quote>); and</text></subparagraph><subparagraph id="id8D78FECABB754717B953D8AAC9C64DD7"><enum>(B)</enum><text>any other Federal and State requirements to protect drinking
water
supplies; and</text></subparagraph></paragraph><paragraph id="ID5b1e2044edf34c0fbf8eec0cfebb268e"><enum>(2)</enum><text>in the case of
industrial sources subject to the <act-name>Clean Air Act</act-name> (42 U.S.C.
7401 et seq.), to inject only carbon dioxide captured from
industrial
sources in
compliance with that Act.</text></paragraph></subsection><subsection id="IDcc2f20b075ac47bc8111f8cb30df798f"><enum>(f)</enum><header>Indemnification
agreements for geological storage</header><paragraph id="ID7fbbb86d4d904d66a38421463b317581"><enum>(1)</enum><header>Definition of
liability</header><text>In this subsection, the term <term>liability</term>
means any legal liability for—</text><subparagraph id="IDf4916c7fc85a4d2696195391d7a1ea18"><enum>(A)</enum><text>bodily injury,
sickness, disease, or death;</text></subparagraph><subparagraph id="ID33f5de063a524a9592ca44a738bc12c0"><enum>(B)</enum><text>loss of or damage
to property, or loss of use of property; or</text></subparagraph><subparagraph id="ID1e272341c4ef4899ace3b372d5299504"><enum>(C)</enum><text>injury to or
destruction or loss of natural resources, including fish, wildlife,
and
drinking water supplies.</text></subparagraph></paragraph><paragraph id="ID89da907f4faf478aaa0c96f5e314e95c"><enum>(2)</enum><header>Agreements</header><text>Not
later than 1 year after the date of the receipt by the Secretary of
a completed
application for assistance authorized under subsection (c), the
Secretary may agree to
indemnify
and hold harmless the recipient of a cooperative agreement under
this section
from liability arising out of or resulting from a demonstration
project in
excess of the amount of liability covered by financial protection
maintained by
the recipient in accordance with the requirements of the UIC
program.</text></paragraph><paragraph id="ID99631eccaeb74fa2a9b74aa450375dad"><enum>(3)</enum><header>Exception for
gross negligence and intentional misconduct</header><text>Notwithstanding
paragraph (1), the Secretary may not indemnify the recipient of a
cooperative
agreement under this section from liability arising out of conduct
of a
recipient that is grossly negligent or that constitutes intentional
misconduct.</text></paragraph><paragraph id="id959833608235442CBB7E3F69599B52CA"><enum>(4)</enum><header>Collection of
fees</header><subparagraph id="idCE24B1C8B6914B53B68EE905FF733D3A"><enum>(A)</enum><header>In
general</header><text>The Secretary shall collect a fee from any person with
whom an agreement for indemnification is executed under this
subsection in an
amount that is equal to the net present value of payments made by
the United
States to cover liability under the indemnification agreement.</text></subparagraph><subparagraph id="id07E5983A4CE9461FA63AEF32C49E6F96"><enum>(B)</enum><header>Amount</header><text>The
Secretary shall establish, by regulation, criteria for determining
the amount
of the fee, taking into account—</text><clause id="id72B13BD1970E4A8294E61F5C79F3653E"><enum>(i)</enum><text>the likelihood of
an incident resulting in liability to the United States under the
indemnification agreement; and</text></clause><clause id="id2518864EBBA140F2BE124E2A3556D688"><enum>(ii)</enum><text>other factors
pertaining to the hazard of the indemnified project.</text></clause></subparagraph><subparagraph id="id466581F127E54448803C55ED1AD4046A"><enum>(C)</enum><header>Use of
fees</header><text>Fees collected under this paragraph shall be deposited in
the Treasury and credited to miscellaneous receipts.</text></subparagraph></paragraph><paragraph id="IDdb05d4694e834b09b5e957bcd6dccaf0"><enum>(5)</enum><header>Contracts in
advance of appropriations</header><subparagraph id="id7F9EBA5191AB414B954B05424AB9369F"><enum>(A)</enum><header>In
general</header><text>Subject to subparagraph (B), the Secretary
may enter into agreements of indemnification under this subsection
in advance
of appropriations and incur obligations without regard to section
1341 of title
31, United States Code (commonly known as the <quote><act-name>Anti-Deficiency
Act</act-name></quote>), or <external-xref legal-doc="usc" parsable-cite="usc/41/11">section 11</external-xref> of title 41, United States Code
(commonly known as the <quote><act-name>Adequacy of Appropriations
Act</act-name></quote>).</text></subparagraph><subparagraph id="id93F807246611497EADD0FC40BC301D09"><enum>(B)</enum><header>Limitation</header><text>The
amount of indemnification under this subsection shall not exceed
$10,000,000,000 (adjusted not less than once during each 5-year
period
following the date of enactment of this section, in accordance with
the
aggregate percentage change in the Consumer Price Index since the
previous
adjustment under this subparagraph), in the aggregate, for all
persons
indemnified in connection with an agreement and for each project,
including
such legal costs as are approved by the Secretary.</text></subparagraph></paragraph><paragraph id="ID7c31cfcaed37411daf5aacd683fc5381"><enum>(6)</enum><header>Conditions of
agreements of indemnification</header><subparagraph id="id7609EEB4250E4CC3ABD4E748147F954D"><enum>(A)</enum><header>In general</header><text>The
agreement shall provide that, if the Secretary makes a
determination that there is a substantial likelihood that the United
States will be required to make indemnity payments under
the
agreement, the Attorney General—</text><clause id="id99A974CD80964DAC91CB4A1024C422F8"><enum>(i)</enum><text>shall collaborate
with the recipient of an award under this subsection; and</text></clause><clause id="idA31F673157274F4FBF6DBC0B4AB59450"><enum>(ii)</enum><text>may—</text><subclause id="idDED84A705D3E4C87B701B963F78D908A"><enum>(I)</enum><text>approve the
payment of any claim under the agreement of indemnification;</text></subclause><subclause id="id3CF0FCFCB6894267B5F9EC018CA1FF4A"><enum>(II)</enum><text>appear on behalf
of the recipient;</text></subclause><subclause id="id08DF95BAD98B4D3B812E30F6B207FAAA"><enum>(III)</enum><text>take charge of
an action; and</text></subclause><subclause id="idF7EE64200C6248FDBEE9343490A4F1B1"><enum>(IV)</enum><text>settle or defend
an action.</text></subclause></clause></subparagraph><subparagraph id="id7261533D79BF4B329A595401F4069AF4"><enum>(B)</enum><header>Settlement of
claims</header><clause id="idB61F925867C143FA837CFAEEE5330937"><enum>(i)</enum><header>In
general</header><text>The Attorney General shall have final authority on behalf
of the United States to settle or approve the settlement of any
claim under
this subsection on a fair and reasonable basis with due regard for
the purposes
of this subsection.</text></clause><clause id="idD136781265F54C7680B0EFD1F2002A33"><enum>(ii)</enum><header>Expenses</header><text>The
settlement shall not include expenses in connection with the claim
incurred by
the recipient.</text></clause></subparagraph></paragraph></subsection><subsection id="IDec85f789c2b04e72a5984702f00518a3"><enum>(g)</enum><header>Federal
land</header><paragraph id="id82CB67F1544D4E4DA9AA1E2171FC3DF4"><enum>(1)</enum><header>In
general</header><text>The Secretary concerned may authorize the siting of a
project on Federal land under the jurisdiction of the Secretary
concerned in a
manner consistent with applicable laws and land management plans
and subject to
such terms and conditions as the Secretary concerned determines to
be
necessary.</text></paragraph><paragraph id="id14AF172D39724030B3182DA584E2755E"><enum>(2)</enum><header>Framework for
geological carbon sequestration on public land</header><text>In determining
whether to authorize a project on Federal land, the Secretary
concerned shall
take into account the framework for geological carbon sequestration
on public
land prepared in accordance with section 714 of the <act-name>Energy
Independence and Security Act of 2007</act-name> (<external-xref legal-doc="public-law" parsable-cite="pl/110/140">Public Law 110–140</external-xref>; 121 Stat.
1715).</text></paragraph></subsection><subsection id="ID9398ac0ed0094fcf8fd8f87057141127"><enum>(h)</enum><header>Acceptance of
title and long-Term monitoring</header><paragraph id="ID476b7071ec004f76b7b5f2100bf26b55"><enum>(1)</enum><header>In
general</header><text>As a condition of a cooperative agreement under this
section, the Secretary may accept title to, or transfer of
administrative
jurisdiction from another Federal agency over, any land or interest
in land
necessary for the monitoring, remediation, or long-term stewardship
of a
project site.</text></paragraph><paragraph id="ID047a005b845a40a28aef6e3a1f9c0053"><enum>(2)</enum><header>Long-term
monitoring activities for geological storage</header><text>After accepting title to, or transfer of, a
site closed in accordance with this section, the Secretary shall
monitor the
site and conduct any remediation activities to ensure the
geological integrity
of the site and prevent any endangerment of public health or
safety.</text></paragraph><paragraph id="IDedf4c37eff35489fad4f5e047fa35330"><enum>(3)</enum><header>Funding</header><text>There
is appropriated to the Secretary, out of funds of the Treasury not
otherwise
appropriated, such sums as are necessary to carry out paragraph
(2).</text></paragraph></subsection><subsection id="id308F53B0F6954048A3CA7EE373C97FF0"><enum>(i)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this section such sums as are necessary.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section id="id333e8a4bebbb47f69ca758257e08dd96"><enum>102.</enum><header>Research, development and demonstration programs</header><subsection id="id4f08304b1d4f4174a00a0fa1dfae2ce2"><enum>(a)</enum><header>In general</header><text>Section 962 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16292">42 U.S.C. 16292</external-xref>) is amended—</text><paragraph id="id71B2D570F1F04BB9A58B2F3E14647BD9"><enum>(1)</enum><text>in subsection (a)—</text><subparagraph id="idE62E81993A7F4F598B69BC119DDDAC6F"><enum>(A)</enum><text>in paragraph (10), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph id="id9E5655DE973240729BD38B3CBA19610C"><enum>(B)</enum><text>in paragraph (11), by striking the period at the end and inserting <quote>; and</quote>; and</text></subparagraph><subparagraph id="id13011321DD0D403DAAE4B7B63C35F3EF"><enum>(C)</enum><text>by adding at
the end the following:</text><quoted-block display-inline="no-display-inline" id="id020a33c1bf494537a95caaa0a28cf9f6" style="OLC"><paragraph id="id4cfa50637a4c40e2a68b3978d5063c53"><enum>(12)</enum><text>specific additional programs to address water use and reuse;</text></paragraph><paragraph id="id98381df37b6e420a9ac9bd91cb599e77"><enum>(13)</enum><text>the testing, including the construction of testing facilities, for high temperature materials for
use in advanced systems for combustion or use of coal; and</text></paragraph><paragraph id="idfe664015269a48fa8003a5e0c1acabba"><enum>(14)</enum><text>innovations to application of existing coal conversion systems designed to increase efficiency
of conversion, flexibility of operation, and other modifications to
address
existing usage requirements.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id3DBC671E1C04415681FB1F17EE00D039"><enum>(2)</enum><text>by redesignating subsections (b) through (d) as subsections (c) through (e), respectively;</text></paragraph><paragraph id="idFF83478D89F34DC7A2007B82B9AE4D6F"><enum>(3)</enum><text>by inserting after subsection (a) the following:</text><quoted-block display-inline="no-display-inline" id="idF88994DA09DE48D5B4FB4C9164579232" style="OLC"><subsection id="idF061FF07980F4FDDA2DB704C5BC81AFD"><enum>(b)</enum><header>Transformational coal technology program</header><paragraph id="idC5A470C88D9D4CCA8EBBADF6706F3816"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">As part of the program established under subsection (a), the Secretary may carry out a program
designed to
undertake research, development, and demonstration of
technologies, including the accelerated development of—</text><subparagraph id="idF1BC313543E44E3991AF08510D343454"><enum>(A)</enum><text display-inline="yes-display-inline">chemical
looping technology;</text></subparagraph><subparagraph id="id2EAED3EA80FD4DD8B2880F7195849B41"><enum>(B)</enum><text display-inline="yes-display-inline">supercritical carbon dioxide power generation cycles;</text></subparagraph><subparagraph id="id7E8F3753743745A68F045733909F9F22"><enum>(C)</enum><text display-inline="yes-display-inline">pressurized oxycombustion, including new and retrofit technologies; and</text></subparagraph><subparagraph id="id03DA4022916641C395D6B48F47F4FD2E"><enum>(D)</enum><text display-inline="yes-display-inline">other
technologies that are characterized by the use of—</text><clause id="id14A12363A90345918CFACAD915D6C55C"><enum>(i)</enum><text display-inline="yes-display-inline">alternative energy cycles;</text></clause><clause id="id84597BE9D1194F8F8F16206AF9E16DB5"><enum>(ii)</enum><text display-inline="yes-display-inline">thermionic devices using waste heat;</text></clause><clause id="id5E478FBD2301434FBE0A514282F87CB2"><enum>(iii)</enum><text display-inline="yes-display-inline">fuel cells;</text></clause><clause id="id2C9AE27A87244E858B4A13BE76A75698"><enum>(iv)</enum><text display-inline="yes-display-inline">replacement of chemical
processes with biotechnology;</text></clause><clause id="idA88B7D2FD3A54CB7A16C47E745DBF1E0"><enum>(v)</enum><text display-inline="yes-display-inline">nanotechnology;</text></clause><clause id="id6F89D6A89254442CA235A63A3F6E8C29"><enum>(vi)</enum><text display-inline="yes-display-inline">new materials in
applications (other than extending cycles to higher temperature and
pressure), such as membranes or ceramics;</text></clause><clause id="idCC963EE52E6B4F698AEF9E64BA63743B"><enum>(vii)</enum><text display-inline="yes-display-inline">carbon utilization (other than enhanced oil recovery), such as construction materials, using low
quality energy to reconvert back
to a fuel, or manufactured food;</text></clause><clause id="id0F5D3B4FEE184A3B8E93F4A307FE31CE"><enum>(viii)</enum><text display-inline="yes-display-inline">advanced gas separation concepts; and</text></clause><clause id="id10699B5B8CB74C2DB5D4E086513CFAF4"><enum>(ix)</enum><text display-inline="yes-display-inline">other technologies, including—</text><subclause id="idB80C79FFC9954B51B94E6C08140B3604"><enum>(I)</enum><text display-inline="yes-display-inline">modular, manufactured components; and</text></subclause><subclause id="idE16E8E4F7916404E96E8B4350F46B80A"><enum>(II)</enum><text display-inline="yes-display-inline">innovative production or research techniques, such as using 3–D printer systems, for the
production of early research and
development prototypes.</text></subclause></clause></subparagraph></paragraph><paragraph id="idEDC06AEF44B24AC88E36A24D876CF286"><enum>(2)</enum><header>Cost share</header><text>In carrying out the program described in paragraph (1), the Secretary may enter into
partnerships with private entities to share the costs of carrying out the
program.</text></paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="id5228f3b8599b48d788c911324a5dee9d"><enum>(4)</enum><text>in subsection (c) (as so redesignated)—</text><subparagraph id="idF0C8D0A1F4C14F0D9F6CC497B0D61420"><enum>(A)</enum><text>by striking paragraph (1) and inserting the following:</text><quoted-block display-inline="no-display-inline" id="idD9CD9BEF0E914DCE9CA11A33E61AD634" style="OLC"><paragraph id="id818b01463fc84b68b0991e3ce2ce47ad"><enum>(1)</enum><header>In general</header><text>In carrying out programs authorized by this section, during each of calendar years 2015, 2017,
2020, and annually thereafter, the Secretary shall identify cost and
performance goals for coal-based technologies that would permit the
continued cost-competitive use of coal for the production of electricity,
chemical feedstocks, transportation fuels, and other marketable products.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph id="id2f419fa99b294e6490d9f80b2ab6e7f9"><enum>(B)</enum><text>in paragraph (2), by
striking <quote>date of enactment of this Act</quote> each place it appears and inserting <quote>date of enactment of the <short-title>Advanced Clean Coal Technology Investment in Our Nation Act of 2014</short-title></quote>.</text></subparagraph></paragraph></subsection><subsection id="id7ec909005fdb49faa946837f52970776"><enum>(b)</enum><header>Advisory committee; authorization of appropriations</header><text>Section 963 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16293">42 U.S.C. 16293</external-xref>) is amended—</text><paragraph id="id43CA02620B374D009AB36DBBF56CF57E"><enum>(1)</enum><text>in subsection (c), by striking paragraph (6) and inserting the following:</text><quoted-block display-inline="no-display-inline" id="id66B6A7924F914B0E8529974169544978" style="OLC"><paragraph id="idCA8DC43CBBDC45A1B68B59492E56A925"><enum>(6)</enum><header>Advisory committee</header><subparagraph id="idF22FED0D905E4A44BFB433DCC00DB015"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subparagraph (B), the Secretary shall establish an advisory committee—</text><clause id="id108CAA7613EB47A58CA1249068C7F4EA"><enum>(i)</enum><text display-inline="yes-display-inline">to undertake, not less frequently than once every 3 years, a review and prepare a report on the
progress being made by the Department of Energy to achieve the
goals described in subsections (a) and (b) of section 962 and subsection
(b) of this section; and</text></clause><clause id="id31F413B009D041FB94A6CB583E04B65F"><enum>(ii)</enum><text display-inline="yes-display-inline">to assess and
provide recommendations on how the capture of carbon from other fossil
fuels could be supported through the objectives described in subsection
(b).</text></clause></subparagraph><subparagraph id="idF7A41D063B5949D08793A15D3D3F81E8"><enum>(B)</enum><header>Membership requirements</header><text display-inline="yes-display-inline">Members of the advisory committee under subparagraph (A) shall be appointed by the President.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="idA3639457342C4C39A8AEA6D51807FCFE"><enum>(2)</enum><text>by striking subsection (d) and inserting the following:</text><quoted-block display-inline="no-display-inline" id="idAEB510B7F2DE44C497F974EE349D8F29" style="OLC"><subsection id="id9F01F197FDF0494B91252A885D783E98"><enum>(d)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There are authorized to be appropriated to carry out section 962 and this section—</text><paragraph id="id360410182a3a422495ed513c768a1572"><enum>(1)</enum><text>$1,654,000,000 for fiscal years 2015 through 2018;</text></paragraph><paragraph id="id8bc75a06c09d4c80b8f6986025830250"><enum>(2)</enum><text>$5,283,000,000 for fiscal years 2019 through 2025; and</text></paragraph><paragraph id="idd5d984c49b68476fb0b28ed39dc4bb3c"><enum>(3)</enum><text>$3,300,000,000 for fiscal years 2026 through 2035.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="idB029D7E72C9C4E0EA5F8921C9D94C7B8"><enum>(c)</enum><header>Cost sharing reduction</header><text>Section 988(b) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16352">42 U.S.C. 16352(b)</external-xref>) is amended by striking
paragraph (3) and inserting the following:</text><quoted-block display-inline="no-display-inline" id="id8D3A95091019426E8F0D79E44AFF6CB1" style="OLC"><paragraph id="id204A5B5023D74B1F9F4BED47C4D29A88"><enum>(3)</enum><header>Reduction</header><text>The Secretary shall reduce or eliminate the requirement of paragraph (1) for a research and
development activity of an applied nature if the Secretary—</text><subparagraph id="idECF8D300CC5847B6B28C1A69845853CD"><enum>(A)</enum><text>is petitioned for a reduction by a non-Federal source; and</text></subparagraph><subparagraph id="id41C56FEAFB7848089745804698804EC7"><enum>(B)</enum><text>determines that the reduction is necessary and appropriate to achieve the purposes and goals of—</text><clause id="id8B33D5844F5B45C4A7AC69C6816E6678"><enum>(i)</enum><text>this Act; and</text></clause><clause commented="no" display-inline="no-display-inline" id="id33473ED79C6A4C13B0143E0B413944F7"><enum>(ii)</enum><text>the program or activity for which the research or development activity is being undertaken.</text></clause></subparagraph></paragraph><after-quoted-block>. </after-quoted-block></quoted-block></subsection></section><section id="id3909d44d5a3944a5a6d4d591d3c2e422"><enum>103.</enum><header>Innovative technology loan guarantee program</header><subsection id="id266103C7E9AD4F0AB83A3167D9763DC0"><enum>(a)</enum><header>In general</header><text>Section 1703 of the Energy Policy Act of 2005 (42 U.S.C. 16513) is amended by adding at the end
the following:</text><quoted-block display-inline="no-display-inline" id="idCEED6D6872D743F0A57FD889F3BA415F" style="OLC"><subsection id="id82DD33B4C8674939A1D29CFFB69F0517"><enum>(f)</enum><header>Other forms of Federal support allowed</header><text>An eligible project that is eligible for or in receipt of other forms of Federal financial
assistance shall not be precluded from receiving a loan guarantee made
pursuant to this section.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="ida4d89547686440c9bca33b786879a23f"><enum>(g)</enum><header>Timeline for loan guarantee approval for certain projects</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law, not later than 2 years after the date of enactment of
the <short-title>Advanced Clean Coal Technology Investment in Our Nation Act of 2014</short-title>, the Secretary shall—</text><paragraph commented="no" display-inline="no-display-inline" id="idFA186C41785749ADBE61BD38F2B9C403"><enum>(1)</enum><text display-inline="yes-display-inline">give final approval to
applications for loan guarantees under subsection (a) for projects
described in subsection (b)(2); and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF3360E1A1A944FFD8981F246CBA5219E"><enum>(2)</enum><text display-inline="yes-display-inline">make loans for those projects in amounts equal to $2,000,000,000.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id38B15FF61BA44172BA6270191C180F9D"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="id146D40ACB2E048A0BAAB00FF4B084C34"><enum>(1)</enum><text>Title III of division C of the Omnibus Appropriations Act, 2009 (<external-xref legal-doc="public-law" parsable-cite="pl/111/8">Public Law 111–8</external-xref>; 123 Stat. 619)
is amended in the matter under the heading <quote><header-in-text level="appropriations-intermediate" style="appropriations">Title 17 innovative technology loan guarantee program</header-in-text></quote>, by striking the seventh, eighth, and ninth provisos.</text></paragraph><paragraph id="id9759E82D08584A68B2D5527EB1FF73FF"><enum>(2)</enum><text>The Supplemental Appropriations Act, 2009 (<external-xref legal-doc="public-law" parsable-cite="pl/111/32">Public Law 111–32</external-xref>) is amended by striking section 408
(123 Stat. 1878).</text></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="idD44EA53E2273417E8C6C414295676F3A"><enum>104.</enum><header>Coordination of clean coal generating projects</header><subsection commented="no" display-inline="no-display-inline" id="id9ABB155F7549412EA97DDDFC3FE16B1D"><enum>(a)</enum><header>Definitions</header><text>In this section, the term <term>eligible clean coal generating projects</term> means any project undertaken to
install and operate an advanced carbon capture and storage technology at a
new or existing steam generating unit.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="id0BD9D5A178114C2083B33A8A6D2FEAA2"><enum>(b)</enum><header>Lead agency</header><text display-inline="yes-display-inline">The Department of Energy shall be the lead agency for the purposes of coordinating all requirements
under Federal law with
respect to eligible clean coal generating projects, including any
requirements of—</text><paragraph commented="no" display-inline="no-display-inline" id="idFE2DF7216D87480E8BBB1A50B7D4A3A4"><enum>(1)</enum><text display-inline="yes-display-inline">the <act-name parsable-cite="CAA">Clean Air
Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7401">42 U.S.C. 7401 et seq.</external-xref>);</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB595B5CFE75D44CAB0803B53ECAB032B"><enum>(2)</enum><text display-inline="yes-display-inline">the <act-name parsable-cite="FWPCA">Federal
Water Pollution Control Act</act-name> (33 U.S.C. 1251 et
seq.);</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9F50A6CEC68E4BFBA694F678C1D97C26"><enum>(3)</enum><text display-inline="yes-display-inline">the <act-name parsable-cite="ESA">Endangered Species Act of 1973</act-name> (16 U.S.C. 1531
et seq.);</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7B6EDF5F67D64D6999AAE8DF76EC0989"><enum>(4)</enum><text display-inline="yes-display-inline">the
<act-name parsable-cite="NEPA69">National Environmental Policy Act of
1969</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/4321">42 U.S.C. 4321 et seq.</external-xref>); and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD23AAC33721D453E9B29BC9F31CE47C4"><enum>(5)</enum><text display-inline="yes-display-inline">the Safe Drinking Water Act (42 U.S.C. 300f
et seq.).</text></paragraph></subsection><subsection commented="no" id="ida4e2bb6de4624e2c9d4127f5e184b946"><enum>(c)</enum><header>Schedule</header><text>In carrying out subsection (b), the Secretary of Energy shall establish a schedule for all Federal
authorizations with respect to each eligible project, including by—</text><paragraph commented="no" id="idc02f791b8cbb431c8e4ef651c79da5f3"><enum>(1)</enum><text>setting binding intermediate milestones and deadlines to ensure expeditious completion of all
proceedings and final action on all Federal authorizations relating to the
eligible project;</text></paragraph><paragraph commented="no" id="idc2a61339b703436cbdc3ed48b349fc67"><enum>(2)</enum><text>requiring that all permit decisions and related environmental reviews under applicable Federal law
shall be completed not later than 1 year after the date on which a
complete
application for each environmental review is submitted, or as soon as
practicable thereafter; and</text></paragraph><paragraph commented="no" id="idf928fef35f9f42b6b27b31ccc34c4361"><enum>(3)</enum><text>coordinating, to the maximum extent practicable, any State permitting and environmental
requirements.</text></paragraph></subsection><subsection commented="no" id="id9a04bf88f8a84ef1bc6a3d13730f4d88"><enum>(d)</enum><header>Memoranda of understanding</header><text>To streamline and expedite review of Federal authorizations for eligible clean coal generating
projects, the Secretary of Energy shall—</text><paragraph commented="no" id="id9125ADA93CC444E7BB79048B8DE02A4C"><enum>(1)</enum><text>enter
into memoranda of understanding with applicable Federal agencies;</text></paragraph><paragraph commented="no" id="id33B7299D4D3E436D98AA15AF69DDA1D1"><enum>(2)</enum><text>facilitate
a pre-application review process with applicable Federal agencies; and</text></paragraph><paragraph commented="no" id="id427C3623B9104DF58C864CE779290607"><enum>(3)</enum><text>consolidate all environmental reviews of the eligible clean coal generating
project into a single environmental review document.</text></paragraph></subsection><subsection commented="no" id="id5EE444911C614ED78A232ED8D1DACCFE"><enum>(e)</enum><header>Judicial review</header><text>With respect to an application for Federal authorization relating to an eligible clean coal
generating project, the
applicable Federal circuit court may review and remedy—</text><paragraph commented="no" id="id81A178B74DF949DDA9695BF33F20F8F0"><enum>(1)</enum><text>any
failure by a Federal agency to complete action on the application by the
date that is 1
year after the date on which the complete application was submitted to the
agency; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1BAB876C1CB54C5F9EA6E539DC8D556E"><enum>(2)</enum><text>any issuance of an action or order
by a Federal agency with respect to the application that is inconsistent
with applicable Federal law.</text></paragraph></subsection></section><enum>II</enum><header>Federal incentives for private investment in clean coal technologies</header><section id="H0CCF16B660E940B8BC3F74768F3B20E7"><enum>201.</enum><header>Seven-year
amortization for certain systems installed on coal-fired electric
generation
units</header><subsection id="H95AE6159DC074FA7B865309B72C4AD83"><enum>(a)</enum><header>In
general</header><text>Subsection (d) of section 169 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
paragraph:</text><quoted-block id="H6A1DDEE0B1A042BE8200DFEE7C13C0F7" style="OLC"><paragraph id="H3D3A271F24484896002C2EF3A8271E9D"><enum>(6)</enum><header>Special rule for
systems installed on coal-fired electric generation units</header><subparagraph id="H01760A82B0BA4BDD9B9EFBB9A015FE16"><enum>(A)</enum><header>In
general</header><text>Any mechanical or electronic system—</text><clause id="HCE9B8FCB03C84846A4EBC316361E71D5"><enum>(i)</enum><text display-inline="yes-display-inline">which is installed on a coal-fired electric
generation unit after the date of the enactment of this paragraph,
and</text></clause><clause id="H0580C4C52F46475386EEB1D2B9D6F0DF"><enum>(ii)</enum><text>which reduces
carbon dioxide emissions per net megawatt hour of electricity
generation by 1
or more of the means described in subparagraph (B) or any other
means,</text></clause><continuation-text continuation-text-level="subparagraph">shall
be treated for purposes of this section as a new identifiable
treatment
facility which abates or controls atmospheric pollution or
contamination by
removing, altering, disposing, storing, or preventing the creation
or emission
of pollutants, contaminants, wastes, or heat. Paragraph (1)(C) of
this
subsection, and subsection (e), shall not apply to any system which
is so
treated.</continuation-text></subparagraph><subparagraph id="H86A4587A66F84406A9CB006F51F69043"><enum>(B)</enum><header>Means for
reducing emissions</header><text>The means described in this subparagraph
are—</text><clause id="H6B53816D59854974BE10E7D9C70571E5"><enum>(i)</enum><text>optimizing
combustion,</text></clause><clause id="H8E6C78CB86EB4C3EB11F75FB201C9F12"><enum>(ii)</enum><text>optimizing
sootblowing and heat transfer,</text></clause><clause id="HB11C8C4134F24D719844399854434DB8"><enum>(iii)</enum><text>upgrading steam
temperature control capabilities,</text></clause><clause id="H24BB63F5328248509769EB8DB0E1D478"><enum>(iv)</enum><text>reducing exit gas
temperatures (air heater modifications),</text></clause><clause id="H70478877702245A300C59123001D6C00"><enum>(v)</enum><text>predrying low rank
coals using power plant waste heat,</text></clause><clause id="H143E53B895D4454586DDAA0252F04B64"><enum>(vi)</enum><text>modifying steam
turbines or change the steam path/blading,</text></clause><clause id="H8F7A98B7433543808EC7F545CE8E7961"><enum>(vii)</enum><text>replacing single
speed motors with variable speed drives for fans and pumps, and</text></clause><clause id="H06885635CB5842108C3EB1F8D2D780A1"><enum>(viii)</enum><text>improving
operational controls, including neural networks.</text></clause></subparagraph><subparagraph id="HDE3B828F02E1411287C28445343FC701"><enum>(C)</enum><header>Special rule for
minimum tax</header><text>Section 56(a)(5) shall not apply to property to which
this paragraph
applies.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="HFC5C4BC340904ACDA52727DCD9D4243F"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service after the date of the enactment of this Act.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="idB1284A6616E5471DA9ECCE451042C098"><enum>202.</enum><header>Credit for
carbon sequestration from coal facilities</header><subsection id="H4C71F771CBC04BE5904822D9EB38617D"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subpart E of part IV
of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is
amended by
inserting after section 48D the following new section:</text><quoted-block id="H396B7CA5C0F84ECB8D9F53EFC2C94169" style="OLC"><section id="HA8FF1E4B8363482C989644D32ED3C8DC"><enum>48E.</enum><header>Qualifying
carbon dioxide capture, transport, and storage equipment credit</header><subsection id="H5D10724CB64144568288EBA34BAD5E2F"><enum>(a)</enum><header>General
rule</header><text display-inline="yes-display-inline">For purposes of section
46, the qualifying carbon dioxide capture, transport, and storage
equipment
credit for any taxable year is an amount equal to 30 percent of the
qualified
investment for such taxable year.</text></subsection><subsection id="H6D549AFCBF744DD9A1AF93696B478566"><enum>(b)</enum><header>Qualified
investment</header><paragraph id="HA73D072DA7AB470B8FDEEB2778502476"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of
subsection (a), the qualified investment for any taxable year is
the basis of
eligible carbon dioxide capture, transport, and storage property
placed in
service by the taxpayer during such taxable year which is part of a
qualifying
clean coal project—</text><subparagraph id="H282AF0075C104193B164F03FF9560059"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="id5C46A861139E4799A02262CF09DC1E7C"><enum>(i)</enum><text display-inline="yes-display-inline">the construction, reconstruction, or
erection of which is completed by the taxpayer, or</text></clause><clause id="H68360BD99CA04489A9172FB19D47940" indent="up1"><enum>(ii)</enum><text>which is acquired by the taxpayer
if the original use of such property commences with the taxpayer,
and</text></clause></subparagraph><subparagraph id="H676BF596C11049519EC426AD77B5BEC1"><enum>(B)</enum><text>with respect to
which depreciation (or amortization in lieu of depreciation) is
allowable.</text></subparagraph></paragraph><paragraph id="HBBEE492B71C04307A7ECBD22E47DFAD0"><enum>(2)</enum><header>Special rule for
certain subsidized property</header><text display-inline="yes-display-inline">Rules similar to section 48(a)(4) shall
apply for purposes of this section.</text></paragraph><paragraph id="H694EDEBA9EC146198651016CD8D1FE00"><enum>(3)</enum><header>Certain
qualified progress expenditures rules made applicable</header><text display-inline="yes-display-inline">Rules similar to the rules of subsections
(c)(4) and (d) of section 46 (as in effect on the day before the
enactment of
the Revenue Reconciliation Act of 1990) shall apply for purposes of
this
section.</text></paragraph></subsection><subsection id="id10E91FABA04B49A6A65C40E0ADBC8EC5"><enum>(c)</enum><header>Definitions</header><text>For
purposes of this section—</text><paragraph id="H2A54242DA9404106A2D63400E08C82C7"><enum>(1)</enum><header>Coal</header><text display-inline="yes-display-inline">The term <term>coal</term> means bituminous
coal, subbituminous coal, and lignite.</text></paragraph><paragraph id="idAC805388104342CFB2426DE292438591"><enum>(2)</enum><header>Eligible carbon
dioxide capture, transport, and storage property</header><text>The term
<term>eligible carbon dioxide capture, transport, and storage property</term>
means any property—</text><subparagraph id="IDc9f0199c9120404585b97f8ae6e291f5"><enum>(A)</enum><text>which is used to
capture, transport, or store carbon dioxide emitted at a qualifying
clean coal
project, including equipment used to separate and pressurize carbon
dioxide for
transport (including equipment to operate such equipment),</text></subparagraph><subparagraph id="idAB0A7BFA4BF3445A9E58DC22700B7AE6"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="id638F3A02F6434D75BB6AB21032180FF0"><enum>(i)</enum><text>the construction,
reconstruction, or erection of which is completed by the taxpayer,
or</text></clause><clause id="idA27AA68F39B1466992A77C25C768DAED" indent="up1"><enum>(ii)</enum><text>which is acquired by the taxpayer
if the original use of such property commences with the taxpayer,
and</text></clause></subparagraph><subparagraph id="id722885A10DE7427F86A84B5030B2A0AE"><enum>(C)</enum><text>with respect to
which depreciation (or amortization in lieu of depreciation) is
allowable.</text></subparagraph></paragraph><paragraph id="idD82D107CB16E4C3EAFC1F03024A81DEE"><enum>(3)</enum><header>Qualified polygeneration plant</header><text>The term <term>qualified polygeneration plant</term> means a plant that produces 2 or more marketable products, including electricity, chemicals,
liquid or gaseous fuels, and carbon
dioxide for beneficial use or sale.</text></paragraph><paragraph id="id7D7B1AE7FFCF454A82F57B0F97F30657"><enum>(4)</enum><header>Qualifying
clean coal project</header><subparagraph id="id607F3747248D4771875182B16C71C37A"><enum>(A)</enum><header>In
general</header><text>The term <term>qualifying clean coal project</term> means
any project if such project—</text><clause id="idD3AE702D60B54C9B972D37AD6739B41E"><enum>(i)</enum><text>uses—</text><subclause id="id79B18A88D02D448BB26097FC37906CD8"><enum>(I)</enum><text>gasification
technology (as defined in section 48B(c)(2)), or</text></subclause><subclause id="id466AF724583342DB8088C6F1746BEFDD"><enum>(II)</enum><text>coal as not less than 75 percent of the project fuel source,</text></subclause><continuation-text continuation-text-level="clause">to produce
electricity or is a polygeneration plant,
and</continuation-text></clause><clause id="id0340B13D67E04ED78312C2CEF26B4700"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="id0969C984DBBE46C6B174ACF03EA78E7E"><enum>(I)</enum><text>is a new project which
is designed to meet the requirements of subparagraph (B), or</text></subclause><subclause id="id45591298C14144D8B01FEB50067FBA6F" indent="up1"><enum>(II)</enum><text>consists of retrofits to existing
equipment such that the project meets the requirements of
subparagraph (B).</text></subclause></clause></subparagraph><subparagraph id="id58C54E92A2E049B1A02944BF2D421D4F"><enum>(B)</enum><header>Requirements</header><clause id="id68567BC287BF43A8967A4386718341D4"><enum>(i)</enum><header>In
general</header><text>A project shall meet the emission
requirement of
clause (ii) and the carbon capture requirement of clause (iii).</text></clause><clause id="idEF31DE68BD574D45AC0D47F4BB784978"><enum>(ii)</enum><header>Emission
requirement</header><text>The requirement of this clause is met if the project
is designed—</text><subclause id="idA12F7B35B7DF4725A06AD29118B24FF2"><enum>(I)</enum><text>to emit carbon
dioxide at an average annual rate of less than 1,100 pounds per net
megawatt
hour of electrical generation, or</text></subclause><subclause id="idD3CD7BF8F39B41EBA83191B91430DBE9"><enum>(II)</enum><text>such that the
carbon dioxide emissions of such project are no greater than half
of the
average carbon dioxide emissions for facilities producing
electricity during
2005 from the same coal rank as such project, as determined under
regulations
prescribed by the Secretary in consultation with the Secretary of
Energy and
the Administrator of the Environmental Protection Agency.</text></subclause></clause><clause id="id36FA8317B75F4DC0B698342474EC205A"><enum>(iii)</enum><header>Carbon
capture requirement</header><text>The requirement of this clause is met—</text><subclause commented="no" id="id796055B19DDF4F48A69885DDBCA0E539"><enum>(I)</enum><text>if such unit is
among the first 1,000 megawatts of electric generation units
certified by the
Secretary under subsection (e), to capture and sequester not less
than 500,000
metric tons per year of carbon dioxide,</text></subclause><subclause commented="no" id="HDB7ADAEF34E048D4948D86D124A28618"><enum>(II)</enum><text display-inline="yes-display-inline">if such unit is among the next 3,000
megawatts of electric generation units certified by the Secretary
under
subsection (e), to capture and sequester not less than 1,000,000
metric tons
per year of carbon dioxide, and</text></subclause><subclause commented="no" id="id3EE7A735DF9F4817B21A3815130299E5"><enum>(III)</enum><text>for any other
unit, to capture and sequester not less than 2,000,000 metric tons
per year of
carbon dioxide.</text></subclause></clause></subparagraph></paragraph></subsection><subsection id="H932753687A5C4D84BDDD8B67B47BFEC1"><enum>(d)</enum><header>Aggregate
credits</header><paragraph id="HFB85B2087A01482ABE9DD7E2EC977700"><enum>(1)</enum><header>In
general</header><text>No credit shall be allowed under this section with
respect to any qualifying clean coal project unless such project is
certified
by the Secretary under subsection (e).</text></paragraph><paragraph id="H7B254397191B4B2BAAA2E7C6C12F4DD"><enum>(2)</enum><header>Limitation on
projects certified</header><text>The Secretary may certify under subsection (e)
no more than—</text><subparagraph id="idF8C5E9C24E514126AA5706CD4A56F421"><enum>(A)</enum><text>20 projects
described in subsection (c)(4)(A)(ii)(I), and</text></subparagraph><subparagraph id="idE2315CB7B5BF4A0BAFF60D602E4DE826"><enum>(B)</enum><text>20 projects
described in subsection (c)(4)(A)(ii)(II).</text></subparagraph></paragraph></subsection><subsection id="H47C0A4D0B8A54DD695BDD38843B0EE1C"><enum>(e)</enum><header>Certification</header><paragraph id="HE507531AF06843DF89CC7CB8A969ED00"><enum>(1)</enum><header>Certification
process</header><text display-inline="yes-display-inline">The Secretary, in
consultation with the Secretary of Energy and the Administrator of
the
Environmental Protection Agency, shall establish a certification
process to
determine if a project meets all criteria and other requirements to
be
recognized as a qualifying clean coal project.</text></paragraph><paragraph id="HB65CEF5E376F4DE886F148AAC3E13206"><enum>(2)</enum><header>Feedstock
requirements</header><text display-inline="yes-display-inline">After the date
of publication by the Secretary of the final certification process
referred to
in paragraph (1), the Secretary shall allocate the limitation in
subsection
(d)(2) in equal amounts among—</text><subparagraph id="HDD58E7AE54EB4A318F18EC69F5008B8D"><enum>(A)</enum><text>projects using
bituminous coal as a primary feedstock,</text></subparagraph><subparagraph id="HD820D98E87EC44499129F2B6269F14BE"><enum>(B)</enum><text>projects using
subbituminous coal as a primary feedstock, and</text></subparagraph><subparagraph id="H74C0686084C7490FAD91F48B9669E681"><enum>(C)</enum><text>projects using
lignite as a primary feedstock.</text></subparagraph></paragraph><paragraph id="H7EA8A0254EF142C988975E5D962CE14"><enum>(3)</enum><header>Redistribution</header><text display-inline="yes-display-inline">The Secretary may reallocate credits if the
Secretary determines that there is an insufficient quantity of
qualifying
applications for certification, pending at the time of review, to
comply with
the feedstock requirements of paragraph (2). The Secretary may
conduct an
additional program for applications for certification and
reallocate available
credits without regard to the feedstock requirement which was not
satisfied as
a result of insufficient applications for certification.</text></paragraph><paragraph id="HC9C528D0822D4AD7ADFD97F605BADBF2"><enum>(4)</enum><header>Requirements for
applications for certification</header><text>An application for certification
shall contain such information as the Secretary may require in
order to make a
determination to accept or reject the application and establish
applicable
credit entitlement. Any information contained in the application
shall be
protected as provided in <external-xref legal-doc="usc" parsable-cite="usc/5/552">section 552(b)(4)</external-xref> of title 5, United
States
Code.</text></paragraph></subsection><subsection id="H6BD04D6BE4354ADEA8B9DFCDEBB88EA"><enum>(f)</enum><header>Denial of double
benefit</header><text>No credit shall be allowed under this section for any
property for which credit is allowed under sections 48A, 48B, or
48C.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H54EDF37051C04E6989C7B4F6D6A79BEF"><enum>(b)</enum><header>Conforming
amendments</header><paragraph id="H3C8EF4ED058D44338F51BB83CB25B27"><enum>(1)</enum><text display-inline="yes-display-inline">Section 46 of such Code (relating to amount
of credit) is amended by striking <quote>and</quote> at the end of paragraph
(5), by striking the period at the end of paragraph (6) and inserting <quote>,
and</quote>, and by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H3AC44E68D0D846C0B86C937176DB8C00" style="OLC"><paragraph id="HCE74782C71C740F294B2369944AEE000"><enum>(7)</enum><text display-inline="yes-display-inline">the qualifying carbon dioxide capture,
transport, and storage equipment
credit.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H9DDB0762709147B9BAB16D3099602F02"><enum>(2)</enum><text display-inline="yes-display-inline">Subparagraph (C) of section 49(a)(1) of
such Code is amended by striking <quote>and</quote> at the end of clause (v),
by striking the period at the end of clause (vi) and inserting <quote>,
and</quote>, and by adding after clause (vi) the following new clause:</text><quoted-block display-inline="no-display-inline" id="HC3D74E1B6FB047E39346993128763B39" style="OLC"><clause id="HF60D3FE41D4E4A50B39ED2867595BA01"><enum>(vii)</enum><text display-inline="yes-display-inline">the basis of any qualifying carbon dioxide
capture, transport, and storage equipment under section
48E.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HC6B478991A1D4FEAACB800F1897C9090"><enum>(3)</enum><text display-inline="yes-display-inline">The table of sections for subpart E of part
IV of subchapter A of chapter 1 of such Code is amended by inserting after
the
item relating to section 48D the following new item:</text><quoted-block id="idcab52aaa-5b8d-4396-8158-c0a82614feca" style="OLC"><toc><toc-entry idref="HA8FF1E4B8363482C989644D32ED3C8DC" level="section">Sec. 48E. Qualifying carbon dioxide capture, transport, and
storage equipment
credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection display-inline="no-display-inline" id="HE7AA36BFDC3C47D4A9C2A8B10127DE55"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to periods after the date of the enactment of
this Act
under rules similar to the rules of section 48(m) of the Internal Revenue
Code
of 1986 (as in effect on the day before the date of the enactment of the
Revenue Reconciliation Act of 1990).</text></subsection></section><section commented="no" id="id44F634A50A0746919D550FCCC911AC86"><enum>203.</enum><header>Variable price support for carbon dioxide sequestration</header><subsection commented="no" id="id2571351E7DFD45A5AABE0B4CA307008B"><enum>(a)</enum><header>Definitions</header><text>In this section:</text><paragraph commented="no" id="idC3A023C92B7B4113A1E3E4FDAE7FC740"><enum>(1)</enum><header>Carbon dioxide price difference</header><text>The term <term>carbon dioxide price difference</term> means the amount calculated in accordance with subsection (f)(1).</text></paragraph><paragraph commented="no" id="id41A45EAB3DC1471F90A8D73F1F52EA24"><enum>(2)</enum><header>Design capacity</header><text>The term <term>design capacity</term> means a project that has the capacity to capture—</text><subparagraph commented="no" id="idE1A238B542C94005977C02B5C98C8152"><enum>(A)</enum><text>not fewer than 3,000,000 tons of carbon dioxide annually; or</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idAFC030C76E644290AC00A42637F5E059"><enum>(B)</enum><text>fewer than 3,000,000 tons of carbon dioxide annually if agreed to by the
Secretary and project owner.</text></subparagraph></paragraph><paragraph commented="no" id="id28CDC5C8D8854DD78632486D1F1CAB84"><enum>(3)</enum><header>Eligible project</header><text>The term <term>eligible project</term> means a project that—</text><subparagraph commented="no" id="id97C8CB1F8FAB4B05B0F337C8A8A45E53"><enum>(A)</enum><text>captures and sells carbon dioxide that is used for enhanced recovery and generates electricity or
gaseous or liquid
fuels, or is a qualified polygeneration plant (as defined in section
48E(c) of the Internal Revenue Code of 1986);</text></subparagraph><subparagraph commented="no" id="idDAF1382C74A74A9DBB133BB87C6E023A"><enum>(B)</enum><text>is located in the United States;</text></subparagraph><subparagraph commented="no" id="id19D4E0716D074F95B45DE969A9D161E5"><enum>(C)</enum><text>uses coal as not less than 75 percent of the project fuel source;</text></subparagraph><subparagraph commented="no" id="id84818E63B7AF482B964CB8750D81B787"><enum>(D)</enum><text>captures not less than 50 percent of carbon dioxide produced by coal conversion;</text></subparagraph><subparagraph commented="no" id="idAAABA92E56F14D3C8E3AC3836EF82F13"><enum>(E)</enum><text>has reached design capacity; and</text></subparagraph><subparagraph commented="no" id="id020BB80ACAD84DF7B751E5C297E94BDD"><enum>(F)</enum><text>has a contract with an enhanced recovery company that is for a period that is equal to or greater
than the subsidy period.</text></subparagraph></paragraph><paragraph commented="no" id="id5645E0FB19264FD5A45BD97805F00144"><enum>(4)</enum><header>Enhanced recovery</header><text>The term <term>enhanced recovery</term> means enhanced oil recovery and enhanced gas recovery.</text></paragraph><paragraph commented="no" id="id39CFF96BF6B647E5B090D7F554FF48D7"><enum>(5)</enum><header>Lowest bid</header><text>The term <term>lowest bid</term> means a bid made by an applicant to the program that has the least cost to the Federal Government,
as compared to competing bids.</text></paragraph><paragraph commented="no" id="idDE00496A528248B59096734ED7D45D1E"><enum>(6)</enum><header>Market price of oil</header><text>The term <term>market price of oil</term> means the price of oil as reported in a public oil market index such as the New York Mercantile
Exchange.</text></paragraph><paragraph commented="no" id="idAB651F644A6B4D079FFB99E2F44CBE3D"><enum>(7)</enum><header>Program</header><text>The term <term>program</term> means the Enhanced Recovery Program established under subsection (b).</text></paragraph><paragraph commented="no" id="idA061182BD84B497896517D7A17A2DF4A"><enum>(8)</enum><header>Qualifying carbon dioxide</header><text>The term <term>qualifying carbon dioxide</term> means carbon dioxide that is captured from an eligible project and is eligible for variable price
support.</text></paragraph><paragraph commented="no" id="idD901610E3A054F19A5E7E0C650CEB4DE"><enum>(9)</enum><header>Rate</header><text>The term <term>rate</term> means the ratio bid by the project owner of the price of carbon dioxide to the market price of
oil, and that is
used to calculate the synthetic price of carbon dioxide.</text></paragraph><paragraph commented="no" id="id8026CF5B4864417DB5A0F88032BDBCC2"><enum>(10)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Energy.</text></paragraph><paragraph commented="no" id="idEDA3936E45BA49BBA906AD9EE94F3958"><enum>(11)</enum><header>Strike price of carbon dioxide</header><text>The term <term>strike price of carbon dioxide</term> means the price of carbon dioxide bid by the project owner—</text><subparagraph commented="no" id="idD534B25602094F1E87CB3E2161A8FC1C"><enum>(A)</enum><text>below which a project will receive a subsidy; and</text></subparagraph><subparagraph commented="no" id="id1D0874D6A6584B21BACAB9E71BE5F530"><enum>(B)</enum><text>above which the project owner will make payments to the Federal Government.</text></subparagraph></paragraph><paragraph commented="no" id="idC0665264C9EA4106BF108965AD56173F"><enum>(12)</enum><header>Subsidy period</header><text>The term <term>subsidy period</term> means the period of time, not to exceed 10 years, bid by the project owner during which the
eligible project will be eligible to receive a subsidy under this section.</text></paragraph><paragraph commented="no" id="id5A36701C39804DE4B902FB464B56BBAC"><enum>(13)</enum><header>Synthetic price of carbon dioxide</header><text>The term <term>synthetic price of carbon dioxide</term> means the price of carbon dioxide calculated by multiplying the market price of oil by the rate.</text></paragraph><paragraph commented="no" id="id2BD0ED959C454802A0A090396302173A"><enum>(14)</enum><header>Variable price support</header><text>The term <term>variable price support</term> means financial support provided by the Federal Government in an amount equal to the carbon
dioxide price difference for each ton of
qualifying carbon dioxide provided directly to the owner of an eligible
project selected to receive assistance under this section.</text></paragraph></subsection><subsection commented="no" id="idF8F6C4CDA9F24C02823DAFA90BE64E4A"><enum>(b)</enum><header>Establishment; purpose</header><paragraph commented="no" id="id28F536EDC9784EA98E0CE6FB51758A39"><enum>(1)</enum><header>In general</header><text>There is established in the Department of Energy a variable price support program, to be known as
the <quote>Enhanced Recovery Program</quote>, to accelerate the construction and operation of eligible advanced coal-fueled projects that
capture carbon dioxide emissions and sell or use the carbon dioxide for
enhanced recovery.</text></paragraph><paragraph commented="no" id="idD54C35B88E164A40B9649F8232053880"><enum>(2)</enum><header>Purpose</header><text>The purpose of the program shall be—</text><subparagraph commented="no" id="id85931AF98DAB4ED58ED219BF75262618"><enum>(A)</enum><text>to reduce the cost of carbon capture by providing variable price support to carbon capture and
sequestration project owners to enable the owner to finance eligible
projects;</text></subparagraph><subparagraph commented="no" id="idC1828F996411445192FF1146657E3FB2"><enum>(B)</enum><text>to advance the development and widespread use of carbon capture technology; and</text></subparagraph><subparagraph commented="no" id="idBEF4AC5BDFE6411DBF6BABAF15A12A1B"><enum>(C)</enum><text>to increase the domestic production of oil and natural gas in the United States.</text></subparagraph></paragraph></subsection><subsection commented="no" id="id7FB42E7E65FD458D9512AC94C931C6E6"><enum>(c)</enum><header>Variable price support</header><paragraph commented="no" id="id187D90742F6F4C41B97AC6D4BD4F98E1"><enum>(1)</enum><header>In general</header><text>In carrying out the program, the Secretary, in consultation with the Secretary of the Treasury, is
authorized to provide variable price support for
eligible projects—</text><subparagraph commented="no" id="id92A9A1AFA09E4A3EB958463803C0849C"><enum>(A)</enum><text>for which an application is submitted to the Secretary under subsection (d);</text></subparagraph><subparagraph commented="no" id="id6FC0709EF3CE44F881641B0902BE0AED"><enum>(B)</enum><text>that are selected under the competitive bidding process under subsection (e); and</text></subparagraph><subparagraph commented="no" id="id7F592248984D49078FE9D548325644BF"><enum>(C)</enum><text>for which a variable price support agreement to implement the payment terms described in
subsections
(f) and (g) is executed.</text></subparagraph></paragraph><paragraph commented="no" id="id6C0589CC8AFA44A8B9F053E4673C3D1B"><enum>(2)</enum><header>Period</header><text>The Secretary shall provide variable price support to an eligible project under this section for a
period of not more than 10 years beginning on the date on which the
eligible project reaches design capacity.</text></paragraph><paragraph commented="no" id="id0E1B03C5614D45B2A851D27E8FE16CD2"><enum>(3)</enum><header>Profit sharing agreements</header><subparagraph commented="no" id="id983F25BC62DA469E9FE42C7AA3AD25A8"><enum>(A)</enum><header>In general</header><text>To be eligible to receive variable price support under paragraph (1), a project owner shall enter
into a profit-sharing agreement with the Secretary at the time that the
variable price support agreement is executed.</text></subparagraph><subparagraph commented="no" id="id65C0FA2AC6F64572BD3158C3D4B3E250"><enum>(B)</enum><header>Payments</header><text>Once every calendar quarter, for each project owner subject to a profit-sharing agreement executed
under subparagraph (A), the Secretary shall calculate whether the
synthetic
price of carbon dioxide is greater than the strike price of carbon
dioxide, and, if so, request from the project owner a profit-sharing
payment for that quarter, in an amount equal to—</text><clause commented="no" id="id6737EFC4AA0A4D49947455DE021FE940"><enum>(i)</enum><text>the difference between the synthetic price of carbon dioxide and the strike price of carbon
dioxide;
less</text></clause><clause commented="no" id="id8D69F958482B45FF90F4E9C4F4B51C9A"><enum>(ii)</enum><text>any repayments made under subsection (g) during that calendar quarter.</text></clause></subparagraph></paragraph></subsection><subsection commented="no" id="idDA4BE4E54ACA41F59F0F17B125EF6E9B"><enum>(d)</enum><header>Applications</header><text>An owner of an eligible project desiring variable price support under this section shall submit to
the
Secretary an application at such time, in such manner, and containing such
information as the Secretary may require.</text></subsection><subsection commented="no" id="id121C47801173404195CB7058E846AC03"><enum>(e)</enum><header>Selection; competitive bidding process</header><paragraph commented="no" id="idC406EB4B04A940E382AEF3EEBF8D28AE"><enum>(1)</enum><header>In general</header><text>Once every year, the Secretary shall solicit bids from applicants for an allocation of the funding
made available under subsection (h) to provide variable price support to
eligible projects.</text></paragraph><paragraph commented="no" id="idBE3836FFEB3747D4B29F611D652A071D"><enum>(2)</enum><header>Bid submission</header><text>Applicants participating in the competitive bidding process shall submit a bid for an eligible
project that includes—</text><subparagraph commented="no" id="id02A8DC56FC504DE4BE93146C4AD7B4D8"><enum>(A)</enum><text>the strike price of carbon dioxide for a ton of qualifying carbon dioxide;</text></subparagraph><subparagraph commented="no" id="id24CB0FB7F73C46D2A611DF759DB2A818"><enum>(B)</enum><text>a rate;</text></subparagraph><subparagraph commented="no" id="id8A13AA4B6A50443CA1C0F32E77BE8CA0"><enum>(C)</enum><text>a plan for the project for a period of not more than 10 years; and</text></subparagraph><subparagraph commented="no" id="id2B047C155CD54CE78606FC82306166EC"><enum>(D)</enum><text>the projected tonnage of qualifying carbon dioxide that the eligible project will capture and sell
for enhanced recovery over the project period.</text></subparagraph></paragraph><paragraph commented="no" id="id247E0EA051FF4D50893D1BBE1DC29195"><enum>(3)</enum><header>Selection</header><text>For each fiscal year, the Secretary shall—</text><subparagraph commented="no" id="id0D247277EDB64498885EE0B8175E9B58"><enum>(A)</enum><text>determine the cost to the Federal Government of each bid
submitted under
paragraph (2); and</text></subparagraph><subparagraph commented="no" id="idBB1E0B8CEC614F3DB2F2C6FCCCA91100"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="id52FD1C47C8E14399B4D59119B9261393"><enum>(i)</enum><text>select 1 or more of the lowest bids until all of the
available funding authorized by subsection (h) is obligated; or</text></clause><clause commented="no" id="idFEB0E976C6634A419144613E40918D64" indent="up1"><enum>(ii)</enum><text>if the Secretary determines that no bids submitted under paragraph (2) are acceptable to the
Secretary, reject the bids.</text></clause></subparagraph></paragraph></subsection><subsection commented="no" id="idD3017C10EEA647AEB98DF42FAFFBB30B"><enum>(f)</enum><header>Administration</header><paragraph commented="no" id="idEFC4B8D757654F9F886B999FDC72ED11"><enum>(1)</enum><header>In general</header><text>In carrying out a variable price support agreement entered into under subsection (c), the Secretary
shall calculate the carbon dioxide price difference as a
dollar amount equal to—</text><subparagraph commented="no" id="idD5A23BF53B2345A785637EC9A86461ED"><enum>(A)</enum><text>the strike price of carbon dioxide; less</text></subparagraph><subparagraph commented="no" id="id4B5625B7166442CBA85AAE99598B2383"><enum>(B)</enum><text>the synthetic price of carbon dioxide in a qualifying ton.</text></subparagraph></paragraph><paragraph commented="no" id="id138C47FEEE684539A8100440E46F34D8"><enum>(2)</enum><header>Payments</header><text>Payments between the Secretary and the project owner shall be made as follows:</text><subparagraph commented="no" id="idB51F8C112B4C455C83672DA74D6E0BFA"><enum>(A)</enum><text>If the amount calculated in paragraph (1) is a positive number, the
Secretary shall pay to the project owner an amount equal to the product
obtained by multiplying—</text><clause commented="no" id="id5261777837704A67A8F5338DC12D9A2A"><enum>(i)</enum><text>the carbon dioxide price difference calculated under paragraph (1); and</text></clause><clause commented="no" id="id52F3FD0A3A334E3FA596B54B781CAE38"><enum>(ii)</enum><text>the quantity in tons of qualifying carbon dioxide sold for enhanced
recovery.</text></clause></subparagraph><subparagraph commented="no" id="id5B6DD03FA6ED4277ABE2B2480F407CCC"><enum>(B)</enum><text>If the amount calculated in paragraph (1) is a negative number, the
project owner shall pay to the Secretary an amount equal to the product
obtained by multiplying—</text><clause commented="no" id="idF22B421A9B79421CA782769898FFB657"><enum>(i)</enum><text>the absolute value of the carbon dioxide price difference calculated under
paragraph (1); and</text></clause><clause commented="no" id="id901C00CCFC9C44E4B384AE0EF1ACD0AA"><enum>(ii)</enum><text>the quantity in tons of qualifying carbon
dioxide sold for enhanced recovery.</text></clause></subparagraph><subparagraph commented="no" id="id6768212C9FDA4061A44471B65572D13F"><enum>(C)</enum><text>Payments between the Secretary and the project owner made under subparagraphs (A) and (B) shall be
reconciled on an annual basis based on—</text><clause commented="no" id="idE79B998D9C554CDE996AD17F0D67041E"><enum>(i)</enum><text>daily carbon dioxide sales records reported by the project owner; and</text></clause><clause commented="no" id="id8D4C5F1112514685BC4FA7A8D55FCC02"><enum>(ii)</enum><text>the daily price of West Texas intermediate crude oil listed in the New York Mercantile
Exchange.</text></clause></subparagraph></paragraph></subsection><subsection commented="no" id="id6A6E49FC31FE42ED8492C2A673921D96"><enum>(g)</enum><header>Payments to the Federal Government</header><paragraph commented="no" id="id9203DD64E35E44DFA210263688CFE6B9"><enum>(1)</enum><header>In general</header><text>The Secretary shall establish terms and conditions for a variable price support agreement entered
into under subsection (c)(1)(C).</text></paragraph><paragraph commented="no" id="id2E0B6F167141461D94A04C0C15D9F7A4"><enum>(2)</enum><header>Repayments</header><text>The repayment terms of any variable price support agreement shall commence if, during the subsidy
period of the agreement, and subject to the limitations described in
paragraph (3), the amount calculated under subsection (f)(1) is a positive
number.</text></paragraph><paragraph commented="no" id="id5EAA14186A4546BAB9F41C759EDA2E70"><enum>(3)</enum><header>Limitations</header><subparagraph commented="no" id="idBE06D6054EEB4B129E0165F643C559BE"><enum>(A)</enum><header>In general</header><text>The repayment terms described in paragraph (2) shall be subject to the following limitations:</text><clause id="idc404151b9ead496fa32fce3edc5ead73"><enum>(i)</enum><text>If, during any calendar quarter during the subsidy period of the variable price support agreement,
the synthetic price of carbon dioxide is less than the strike price of
carbon dioxide, the project owner may elect to defer all or part of the
repayment obligations of the project owner due in that quarter and any
unpaid obligations will continue to accrue interest.</text></clause><clause id="id43ea1cbba7a04e8990a5ac6a1e1835bc"><enum>(ii)</enum><text>If, during any calendar quarter during the subsidy period of the variable price support agreement,
the synthetic price of carbon dioxide is greater than the strike price of
carbon dioxide, the project owner—</text><subclause id="id3bf3c1c90e1040e2bd856d1bc0933863"><enum>(I)</enum><text>shall meet the scheduled repayment obligations plus any deferred repayment obligations; but</text></subclause><subclause id="ide4e087ca340849879fdb351e6b2fab32"><enum>(II)</enum><text>shall not be required to pay in that quarter an amount that is greater than the amount equal to the
product obtained by multiplying—</text><item id="id4164dd27bb68409e8112cff677c3ff78"><enum>(aa)</enum><text>the excess of the synthetic price of carbon dioxide over the strike price of carbon dioxide; and</text></item><item id="id4a06a30fef354133bf94cea0702641e2"><enum>(bb)</enum><text>the output of the project.</text></item></subclause></clause></subparagraph><subparagraph id="id3cb81aa66fc04c88ae38330b8361c542"><enum>(B)</enum><header>Repayments beyond subsidy term</header><text>At the end of the subsidy period of the agreement, the cumulative amount of any deferred repayment
obligations, together with accrued interest, shall be amortized (with
interest) over the remainder of the full term of the agreement.</text></subparagraph></paragraph></subsection><subsection commented="no" id="id704D3B372A7D4F948A218870B440D8B7"><enum>(h)</enum><header>Funding</header><paragraph commented="no" id="id243C8A549E4A4391993C047FBC3DC74A"><enum>(1)</enum><header>In general</header><text>Prior to selecting bids under subsection (e)(3) for a fiscal year, the Secretary shall make
available to carry out
the program the following amounts, to be allocated from unobligated funds
of the Department of Energy.</text><table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" subformat="S6211" table-template-name="Flush/hang, 1 text, 1 num, bold hds" table-type="Leaderwork"><tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="269pts" min-data-value="55"></colspec><colspec coldef="fig" colname="column2" colwidth="260.44pt" min-data-value="10"></colspec><thead><row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0"><bold> Years:</bold></entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0"><bold>Available Credit:</bold></entry></row></thead><tbody><row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Year
1</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">$1,350,000</entry></row><row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Year
2</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">$1,350,000</entry></row><row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Year
3</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">$1,350,000</entry></row><row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Year
4</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">$2,700,000</entry></row><row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Year
5</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">$2,700,000</entry></row><row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Year 6</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">$2,700,000</entry></row><row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Year 7</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">$4,050,000</entry></row><row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Year 8</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">$5,400,000</entry></row><row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr">Year 9 and
thereafter</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">$6,750,000.</entry></row></tbody></tgroup></table></paragraph><paragraph id="id0C6201975C6D4D96B3FC45F9D8A2FAA4"><enum>(2)</enum><header>Extension</header><text>If the amounts made available under paragraph (1) for a fiscal year are not used during the
applicable fiscal year—</text><subparagraph id="idE9719A52368A40698795BF421BCEDD87"><enum>(A)</enum><text>the program shall be extended for an additional fiscal year; and</text></subparagraph><subparagraph id="id2212C982F01C47AF82D8E40EAA151F90"><enum>(B)</enum><text>the amounts authorized under paragraph (1) that were not used during the applicable fiscal year
shall be carried over to carry out the program during the additional
fiscal year.</text></subparagraph></paragraph></subsection></section><section id="H6B25A6F4A05D496FB27613A35C8F9EDD"><enum>204.</enum><header>Clean energy
coal bonds</header><subsection id="idE923CA26090649DE85919D7840598278"><enum>(a)</enum><header>In
general</header><paragraph id="id92606EEAAA334B5DB778A84626A74FEB"><enum>(1)</enum><header>Treatment as
tax credit bonds</header><text display-inline="yes-display-inline">Subpart I of
part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986
is
amended by adding at the end the following new section:</text><quoted-block display-inline="no-display-inline" id="idBF9F5FB722954E88BB07677F122C52BD" style="OLC"><section id="ID69f9d6dc09264b2e99fbc3f53090ad73"><enum>54G.</enum><header>Clean energy
coal bonds</header><subsection id="ID645d81a51d2d4387822d308b5e37fe36"><enum>(a)</enum><header>Clean energy
coal bond</header><text>For purposes of this subchapter—</text><paragraph id="ID19671904dc884285bd198e67ea9b6355"><enum>(1)</enum><header>In
general</header><text>The term <term>clean energy coal bond</term> means any
bond issued as part of an issue if—</text><subparagraph id="ID4fa2d83cb27d49488d7da700f2e574db"><enum>(A)</enum><text>the bond is
issued by a qualified issuer pursuant to an allocation by the
Secretary to such
issuer of a portion of the national clean energy coal bond
limitation under
subsection (b)(2),</text></subparagraph><subparagraph id="idD526EAD251B14BFA8E347E578F6311AB"><enum>(B)</enum><text>so much of
the available project proceeds from the sale of such issue as is
equal to 95 percent of the excess of—</text><clause id="id720DE518B1AB4545A048206E0B94C97E"><enum>(i)</enum><text>the total available project proceeds from the sale of such issue, over</text></clause><clause id="id528A0363066A42E7BCEAD98FFB18BFE0"><enum>(ii)</enum><text>the amounts in a reasonably required reserve (within the meaning of section 150(a)(3)) with respect
to such issue,</text></clause><continuation-text continuation-text-level="subparagraph">are to
be used for
capital expenditures incurred by qualified borrowers for 1 or more
qualified
projects,</continuation-text></subparagraph><subparagraph id="id6DF2AE065482490491BCA73EC5956A33"><enum>(C)</enum><text>the qualified issuer makes an irrevocable election to have this section apply,</text></subparagraph><subparagraph id="id34C7E7313B574291A00B8F14ACDB883D"><enum>(D)</enum><text>the qualified
issuer designates such bond for purposes of this section and the
bond is in
registered form, and</text></subparagraph><subparagraph id="idBB872D692BD44B33AF551EFEDE75DA0A"><enum>(E)</enum><text>in lieu of the
requirements of section 54A(d)(2), the issue meets the requirements
of
subsection (c).</text></subparagraph></paragraph><paragraph id="ID372e039f1d624340aa0266829aee049f"><enum>(2)</enum><header>Qualified
project; special use rules</header><subparagraph id="IDd68ca314d9494c1ca059371805ce4a58"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified project</term> means a qualified
clean coal project (as defined in subsection (h)(1)) placed in
service by a
qualified borrower.</text></subparagraph><subparagraph id="ID383cd7ce65ff405a84063843197c7146"><enum>(B)</enum><header>Refinancing
rules</header><text>For purposes of paragraph (1)(B), a qualified project may
be refinanced with proceeds of a clean energy coal bond only if the
indebtedness being refinanced (including any obligation directly or
indirectly
refinanced by such indebtedness) was originally incurred by a
qualified
borrower after the date of the enactment of this section.</text></subparagraph><subparagraph id="ID4a442e0f2fd949ce96f7a8e46174d69e"><enum>(C)</enum><header>Reimbursement</header><text>For
purposes of paragraph (1)(B), a clean energy coal bond may be
issued to
reimburse a qualified borrower for amounts paid after the date of
the enactment
of this section with respect to a qualified project, but only if—</text><clause id="ID82e54aea13c04ba1b95c769d8486901e"><enum>(i)</enum><text>prior to the
payment of the original expenditure, the qualified borrower
declared its intent
to reimburse such expenditure with the proceeds of a clean energy
coal
bond,</text></clause><clause id="id045BF0AA88C340A19CDFFC084900D3A6"><enum>(ii)</enum><text>not later than
60 days after payment of the original expenditure, the qualified
issuer adopts
an official intent to reimburse the original expenditure with such
proceeds,
and</text></clause><clause id="idF5F355CA0C514A6BA7E76A106966CC88"><enum>(iii)</enum><text>reimbursement
is not made later than 18 months after the date the original
expenditure is
paid or the date the project is placed in service or abandoned, but
in no event
more than 3 years after the original expenditure is paid.</text></clause></subparagraph><subparagraph id="IDd17efb4239ee4fa39ba4aa636b610cc0"><enum>(D)</enum><header>Treatment of
changes in use</header><text>For purposes of paragraph (1)(B), the proceeds of
an issue shall not be treated as used for a qualified project to
the extent
that a qualified borrower takes any action within its control which
causes such
proceeds not to be used for a qualified project. The Secretary
shall prescribe
regulations specifying remedial actions that may be taken
(including conditions
to taking such remedial actions) to prevent an action described in
the
preceding sentence from causing a bond to fail to be a clean energy
coal
bond.</text></subparagraph></paragraph></subsection><subsection id="IDf89bdd064a8c4a1a8d165dbb512aad58"><enum>(b)</enum><header>Limitation on
amount of bonds designated</header><paragraph id="ID584e7016c80e46ccac214bb86d9df6ec"><enum>(1)</enum><header>National
limitation</header><text>There is a national clean energy coal bond limitation
of $5,000,000,000.</text></paragraph><paragraph id="ID2d2d0639f4e74ca995ee4e308a2cb8f1"><enum>(2)</enum><header>Allocation by
Secretary</header><text>The Secretary shall allocate the amount described in
paragraph (1) among qualified projects in such manner as the
Secretary
determines appropriate.</text></paragraph></subsection><subsection id="ID9a90ba234b304043ab3a5365a37c0c23"><enum>(c)</enum><header>Special rules
relating to expenditures</header><paragraph id="ID675909b3c32b4749a244a9ffd26c648a"><enum>(1)</enum><header>In
general</header><text>An issue shall be treated as meeting the requirements of
this subsection if, as of the date of issuance, the qualified
issuer reasonably
expects—</text><subparagraph id="ID723f641d246844c8b5a59803cc7d4b5d"><enum>(A)</enum><text>100 percent or
more of the available project proceeds from the sale of the issue
are to be
spent for 1 or more qualified projects within the 5-year period
beginning on
the date of issuance of the clean energy bond,</text></subparagraph><subparagraph id="idF7A11260DBCC4E4AA45E800B0511DA90"><enum>(B)</enum><text>a binding
commitment with a third party to spend at least 10 percent of such
available
project proceeds from the sale of the issue will be incurred within
the 6-month
period beginning on the date of issuance of the clean energy bond
or, in the
case of a clean energy bond the available project proceeds of which
are to be
loaned to 2 or more qualified borrowers, such binding commitment
will be
incurred within the 6-month period beginning on the date of the
loan of such
proceeds to a qualified borrower, and</text></subparagraph><subparagraph id="id2E1DE313F17D4D26A985D075D3F0F45C"><enum>(C)</enum><text>such projects
will be completed with due diligence and the available project
proceeds from
the sale of the issue will be spent with due diligence.</text></subparagraph></paragraph><paragraph id="ID24077af2179c4abe9939cd05f85841d8"><enum>(2)</enum><header>Extension of
period</header><text>Upon submission of a request prior to the expiration of
the period described in paragraph (1)(A), the Secretary may extend
such period
if the qualified issuer establishes that the failure to satisfy the
5-year
requirement is due to reasonable cause and the related projects
will continue
to proceed with due diligence.</text></paragraph><paragraph id="ID92f7cc8a51c74bd8a2168c41c8b31b13"><enum>(3)</enum><header>Failure to
spend required amount of bond proceeds within 5 years</header><text>To the
extent that less than 100 percent of the available project proceeds
of such
issue are expended by the close of the 5-year period beginning on
the date of
issuance (or if an extension has been obtained under paragraph (2),
by the
close of the extended period), the qualified issuer shall redeem
all of the
nonqualified bonds within 90 days after the end of such period. For
purposes of
this paragraph, the amount of the nonqualified bonds required to be
redeemed
shall be determined in the same manner as under section 142.</text></paragraph></subsection><subsection id="id427A615F35B044F99EB5CC24F1D14777"><enum>(d)</enum><header>Reduced credit
amount</header><text>The annual credit determined under section 54A(b) with
respect to any clean coal energy bond shall be 70 percent of the
amount so
determined without regard to this subsection.</text></subsection><subsection id="ID88e602ee13df4b26b5df3ce70e80ac81"><enum>(e)</enum><header>Cooperative
electric company; qualified energy tax credit bond lender;
governmental body;
qualified borrower</header><text>For purposes of this section—</text><paragraph id="IDc4dd67e95f1d4bca8d33c39053380abf"><enum>(1)</enum><header>Cooperative
electric company</header><text>The term <term>cooperative electric
company</term> means a mutual or cooperative electric company described in
section 501(c)(12) or section 1381(a)(2)(C), or a not-for-profit
electric
utility which has received a loan or loan guarantee under the Rural
Electrification Act.</text></paragraph><paragraph id="IDb78730ba4fa243749c02265593c10239"><enum>(2)</enum><header>Clean energy
bond lender</header><text>The term <term>clean energy bond lender</term> means
a lender which is a cooperative which is owned by, or has
outstanding loans to,
100 or more cooperative electric companies and is in existence on
February 1,
2002, and shall include any affiliated entity which is controlled
by such
lender.</text></paragraph><paragraph id="ID15af0420abe54fab9eeaa8afb7c60a0c"><enum>(3)</enum><header>Public power
entity</header><text>The term <term>public power entity</term> means a State
utility with a service obligation, as such terms are defined in
section 217 of
the Federal Power Act (as in effect on the date of enactment of
this
paragraph).</text></paragraph><paragraph id="id5D54EDA51612479EAC4DB985F939C920"><enum>(4)</enum><header>Qualified
issuer</header><text>The term <term>qualified issuer</term> means—</text><subparagraph id="ID446c27400c374522b4a1780fe0d3527f"><enum>(A)</enum><text>a clean energy
bond lender,</text></subparagraph><subparagraph id="idDC7B811AB73641E49BBEDB603AAEA3CA"><enum>(B)</enum><text>a cooperative
electric company, or</text></subparagraph><subparagraph id="id1A481CA954A64FE79BDB6C86E9A28DE3"><enum>(C)</enum><text>a public power
entity.</text></subparagraph></paragraph><paragraph id="id2EB74C3E60B34CA8AD01DBE325A2252B"><enum>(5)</enum><header>Qualified
borrower</header><text>The term <term>qualified borrower</term> means—</text><subparagraph id="IDc64acabfd31a48218e70de4f5b343eca"><enum>(A)</enum><text>a mutual or
cooperative electric company described in section 501(c)(12) or
1381(a)(2)(C),
or</text></subparagraph><subparagraph id="id66ECD265F0FD43DB926ABA5D12FE8BA4"><enum>(B)</enum><text>a public power
entity.</text></subparagraph></paragraph></subsection><subsection id="id3ED79D161709491084323ABC0B2F2649"><enum>(f)</enum><header>Special rules
relating to pool bonds</header><text>No portion of a pooled financing bond may
be allocable to any loan unless the borrower has entered into a
written loan
commitment for such portion prior to the issue date of such issue.</text></subsection><subsection id="id15195BA2B81E4324A4471144FAA70F26"><enum>(g)</enum><header>Gross-Up of payment to issuers in case of sequestration</header><text>In the case of any payment due under section 6431(b) by reason of section 6431(f)(3)(A)(v) which is
subject to reduction in accordance with a sequestration report prepared by
the Director of the Office of Management and Budget pursuant to the
Balanced Budget and Emergency Deficit Control Act of 1985 or the Statutory
Pay-As-You-Go Act of 2010—</text><paragraph id="id3A300DDCB0974DEB99A25A65C87909FD"><enum>(1)</enum><text>the amount of such payment shall be increased to an amount equal to the product of—</text><subparagraph id="id66F294F40AD3454A86711D4D43AC6358"><enum>(A)</enum><text>the amount of such payment as determined before the reduction in accordance with the sequestration
report, and</text></subparagraph><subparagraph id="idB3C509D0B55440D9AB1AACFE18A78B90"><enum>(B)</enum><text>a fraction the numerator of which is 1 and the denominator of which is the excess of—</text><clause id="id6EA177E8D9DE44A5B69A54EAC8C3D83A"><enum>(i)</enum><text>100, over</text></clause><clause id="idCF83DA407D65427089B8283121793B60"><enum>(ii)</enum><text>the percentage by which such payment is reduced (without regard to this subsection) in accordance
with the sequestration report, and</text></clause></subparagraph></paragraph><paragraph id="id971C66B663414F43A56BE0D03BE7268B"><enum>(2)</enum><text>such increase shall be treated as not subject to the sequestration report.</text></paragraph></subsection><subsection commented="no" id="ID004f544d6aaf48cdbb6c6e7073c17af8"><enum>(h)</enum><header>Other
definitions and special rules</header><text>For purposes of this
section—</text><paragraph commented="no" id="ID70ab0565fede40feb7dd0563b864d3ce"><enum>(1)</enum><header>Qualified clean
coal project</header><text>The term
<term>qualified clean coal project</term> means—</text><subparagraph commented="no" id="ID716df909475f451c912e6565824842ec"><enum>(A)</enum><text>an atmospheric
pollution control facility (within the meaning of section
169(d)(1)),</text></subparagraph><subparagraph commented="no" id="ID5efb985d93d34063b4a6e3f9f011cf71"><enum>(B)</enum><text>a qualifying
clean coal project (within the meaning of section 48E(c)(1)),</text></subparagraph><subparagraph commented="no" id="ID7a3dad6290d0416f8b79770639209d6a"><enum>(C)</enum><text>a qualified
facility (within the meaning of section 45Q(c)), or</text></subparagraph><subparagraph commented="no" id="ida8dfe76bd7554340a24ef7b9842abe1d"><enum>(D)</enum><text>an integrated gasification combined cycle unit, supercritical coal-fired power plant, or
ultrasupercritical coal-fired power
plant, with an energy efficiency percentage (as defined in section
48(c)(3)(C)(i))
that is not less than 5 percentage points greater than the average energy
efficiency percentage for coal electrical production facilities in the
United
States and corrected for the impact of carbon capture (as determined by
the Secretary of Energy).</text></subparagraph></paragraph><paragraph commented="no" id="id0985c43211ab415db5e01a79f60b27ce"><enum>(2)</enum><header>Definitions</header><subparagraph commented="no" id="idd17c9ef1accb45258549241a98c55de8"><enum>(A)</enum><header>Integrated gasification combined cycle unit</header><text>The term <term>integrated gasification combined cycle unit</term> means an electric generation unit that produces electricity by converting coal to synthesis gas
that is used to fuel a combined-cycle plant that produces electricity from
both a combustion turbine (including a combustion turbine/fuel cell
hybrid) and a steam turbine.</text></subparagraph><subparagraph commented="no" id="id6EA91D00CEF14BD08AA2FD14F3D73339"><enum>(B)</enum><header>Pooled
financing bond</header><text>The term <term>pooled financing bond</term> shall
have the meaning given such term by section
149(f)(6)(A).</text></subparagraph><subparagraph commented="no" id="id50e50e2c961a4712a0f1b7c722a46b8f"><enum>(C)</enum><header>Supercritical coal-fired power plant</header><text>The term <term>supercritical coal-fired power plant</term> means a coal-fired power plant operating at pressures such that water boils first and then is
converted to superheated
steam.</text></subparagraph><subparagraph commented="no" id="id9d77327c37e34437b89acb5bcea5aa22"><enum>(D)</enum><header>Ultrasupercritical coal-fired power plant</header><text>The term <term>ultrasupercritical coal-fired power plant</term> means a power plant described in subparagraph (C) operating above supercritical pressure and at
steam temperatures above 1,100 degrees
Fahrenheit.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id388F530FB7664FA2A1ABBFCAF9931143"><enum>(2)</enum><header>Bonds not
subject to maturity limitation</header><text>Paragraph (5) of section 54A(d) of
such Code is amended by adding at the end the following new
subparagraph:</text><quoted-block display-inline="no-display-inline" id="id6E3B7E0F76334C2F9DD674C06A4A2AA7" style="OLC"><subparagraph id="id3999D13C09EC443DB3F732C32B87733D"><enum>(C)</enum><header>Special rule
for clean energy coal bonds</header><text>The requirements of this paragraph
shall not apply to a clean energy coal bond under section
54G.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HC92553D5E8054F58B3F871A3D06ED286"><enum>(3)</enum><header>Conforming
amendments</header><subparagraph id="H7CC5868434B847ABB22E80EC17B88E4F"><enum>(A)</enum><text>Paragraph (1) of
<external-xref legal-doc="usc" parsable-cite="usc/26/54A">section 54A(d)</external-xref> of the Internal Revenue Code of 1986 is amended by striking
<quote>or</quote> at the end of subparagraph (D), by inserting
<quote>or</quote> at the end of subparagraph (E), and by inserting after
subparagraph (E) the following new subparagraph:</text><quoted-block display-inline="no-display-inline" id="idAD7D37F4C789456183344B16003CE776" style="OLC"><subparagraph id="id427AE6E42F35436E8AD8E915A782505F"><enum>(F)</enum><text>a clean energy
coal
bond,</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph id="id29F1F2349D6D49AAA693DC93CE1B70EE"><enum>(B)</enum><text>The table of
sections for subpart I of part IV of subchapter A of chapter 1 of the
Internal
Revenue Code of 1986 is amended by adding at the end the following new
item:</text><quoted-block id="idf7d6bef2-336f-4013-9dee-4a1b75e70b72" style="OLC"><toc><toc-entry idref="ID69f9d6dc09264b2e99fbc3f53090ad73" level="section">Sec. 54G. Clean energy coal
bonds.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="ID0a8b51f920e74aa587129494bf8328d9"><enum>(b)</enum><header>Bonds treated
as specified tax credit bonds</header><paragraph id="id8DF53DD912E64DB8AD797F0A7B6254AD"><enum>(1)</enum><header>In
general</header><text>Section 6431(f)(3)(A) of the Internal Revenue Code of
1986 is amended by striking <quote>or</quote> at the end of clause (iii), by
striking <quote>and</quote> at the end of clause (iv) and inserting
<quote>or</quote>, and by adding at the end the following new clause:</text><quoted-block display-inline="no-display-inline" id="idC6CCC757B1FD44CDAE821AE9F9FD781D" style="OLC"><clause id="idBDB7C1209D5A4DD2A04034E8B0CA2EF6"><enum>(v)</enum><text>a
clean energy coal bond (as defined in section 54G),
and</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id4BEC7C3000DA476285A275ED3F0C2C49"><enum>(2)</enum><header>Special
rule</header><text>Paragraph (2) of section 6431(f) of such Code is
amended—</text><subparagraph id="id24B316A9AF12460FA7FFCFA78E90B10C"><enum>(A)</enum><text>by striking
<quote>clause (i) or (ii)</quote> and inserting <quote>clause (i), (ii), or
(v)</quote>; and</text></subparagraph><subparagraph id="id799D90E72798487ABCF070E955E893AA"><enum>(B)</enum><text>by striking the
heading and inserting <quote><header-in-text level="paragraph" style="OLC">Special rule for certain bonds</header-in-text></quote>.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID9feb4fd50f304bdaacbde7957564c70e"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to bonds
issued after the date of the enactment of this Act.</text>
</subsection></section><enum>III</enum><header>Reports required</header><section id="idBC897AAF87AD4F328BD55AAF52443927"><enum>301.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text><paragraph id="id4ADA6F13903E46CE985B1ACF6D3B751F"><enum>(1)</enum><header>CCS</header><text display-inline="yes-display-inline">the term <term>CCS</term> means carbon capture and storage, including geological storage and enhanced oil recovery, as well
as other forms of carbon utilization.</text></paragraph><paragraph id="id1A8009C4DEE44761BEA8A4BD8C356FF4"><enum>(2)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Energy.</text></paragraph></section><section id="id9691d8ec586540a1820956428ad1eb61"><enum>302.</enum><header>Reports to Congress</header><subsection id="id7938DF02EB3E4BC6A572F50736CBC999"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, and annually thereafter, the
Secretary shall submit to Congress and make available to the public
(including on
the website of the Department of Energy) a report that—</text><paragraph id="id556bd5a2708049998f36e5024951eb9f"><enum>(1)</enum><text>provides a comprehensive review of the annual progress made by the National Laboratories and the
offices of the Department of Energy that are currently active in
researching and developing clean coal technologies and CCS, including—</text><subparagraph id="id18a7f829ac9b4cc98c32be29c4a94f88"><enum>(A)</enum><text>the status of carbon capture, transport, storage, and utilization, including—</text><clause id="id4826e755679145febbac84db23d3896a"><enum>(i)</enum><text>an overview and evaluation of key technologies;</text></clause><clause id="id8c7f704da75d487bb11745355f4c3265"><enum>(ii)</enum><text>a description of existing CCS infrastructure and demonstration projects in the United States,
including the status of permitting, financing, and construction and the
expected date of commencement of operations;</text></clause><clause id="ida79218c761234ecba217f3a5929c1db9"><enum>(iii)</enum><text>the associated costs of key technologies, including the amount and type of Federal funding; and</text></clause><clause id="id97f97a70316e4c88ac329f4ac3fd2fad"><enum>(iv)</enum><text>an estimated timeline to commercial scalability;</text></clause></subparagraph><subparagraph id="id958e2731d94340c5ab39ee931b65f152"><enum>(B)</enum><text>a description of the current barriers for CCS deployment and commercialization, including—</text><clause id="idedc67c52273d43e1b6654cc21d0e491b"><enum>(i)</enum><text>market failures;</text></clause><clause id="id6fea27592e51466dada738b98ef7a1fb"><enum>(ii)</enum><text>regulatory framework;</text></clause><clause id="ida195ffa51c344679a66142c1a32b559e"><enum>(iii)</enum><text>long-term liability for carbon storage;</text></clause><clause id="idca7f98eec3e54632abca9a03ef9df1b1"><enum>(iv)</enum><text>public outreach; and</text></clause><clause id="id980264BFABCC4D80851EB18494F75E32"><enum>(v)</enum><text>annual progress on overcoming the identified barriers;</text></clause></subparagraph><subparagraph id="id167d6181f98b4809aba33c21026246e4"><enum>(C)</enum><text>possible solutions to address the barriers described in subparagraph (B), including—</text><clause id="id8dc573a517c945a1b2b19c5a48a40fde"><enum>(i)</enum><text>funding options for CCS projects;</text></clause><clause id="idcc98319f2e414fcab1ffacde725a19b7"><enum>(ii)</enum><text>options to improve the current legal and regulatory framework; and</text></clause><clause id="ide54c2f76c70a436b847c147d0007ca09"><enum>(iii)</enum><text>suggestions for Federal Government action on effective public outreach; and</text></clause></subparagraph><subparagraph id="id57f8f509af6b4c90aa30014c1fe80b83"><enum>(D)</enum><text>a separate review that focuses on international research and projects sponsored by the Department
of Energy, including—</text><clause id="id09a075eda3944d74a4ebdcf9911d5a8c"><enum>(i)</enum><text>a clear description of how the Federal Government has participated in each project, including the
amount and type of Federal funding;</text></clause><clause id="id8f1434bcda4f4e7bb87687bf7eeca154"><enum>(ii)</enum><text>the technical and economic status of each project, including the expected date of commencement of
operations; and</text></clause><clause id="id4ad157e8e43e4a13b81054c13d34233a"><enum>(iii)</enum><text>recommendations on—</text><subclause id="id7DF7E017F64B41A380DB15B77FFF7022"><enum>(I)</enum><text>how to most efficiently engage in each project in the future; and</text></subclause><subclause id="idD07253FEFD2E4D749E371643E5E3CBC7"><enum>(II)</enum><text>whether a change of funding support could assist in those efforts; and</text></subclause></clause></subparagraph></paragraph><paragraph id="id3f2e7a731cce464db10cc856e885205d"><enum>(2)</enum><text>addresses all of the international consortia that the Federal Government is currently engaged in
by—</text><subparagraph id="id08c8486393e642e1a4729e5a9c173a2f"><enum>(A)</enum><text>detailing the type of Federal Government activity in each consortium;</text></subparagraph><subparagraph id="id392ab5a77e834e81a90dbe5f12ba8eb3"><enum>(B)</enum><text>including a description of any <quote>lessons learned</quote> by participants from the Federal Government as a direct result of consortium activity;</text></subparagraph><subparagraph id="id95afa83f82f94d51981924cf99567b87"><enum>(C)</enum><text>describing the benefits derived from Federal Government involvement; and</text></subparagraph><subparagraph id="ida549ff53f5994f0183de9f7aaca602a8"><enum>(D)</enum><text>making recommendations for the involvement of the Federal Government in each consortium including—</text><clause id="id2f2e8a4bc8ee485691994ad477ab6dbb"><enum>(i)</enum><text>whether the Federal Government should continue to participate; and</text></clause><clause id="id2ba98ad59e9d4390b451244b79ff9a1b"><enum>(ii)</enum><text>how the Federal Government could increase the productivity of the consortium, if possible.</text></clause></subparagraph></paragraph></subsection><subsection id="id3af5569fb5c8471fb22c2952b07a7011"><enum>(b)</enum><header>Additional report</header><text display-inline="yes-display-inline">Not later than 18 months after the date of enactment of this Act, and not less frequently than once
every year for the next 5 years thereafter, the Secretary shall submit to
Congress and make available to the public (including on the website of the
Department of Energy) a report that—</text><paragraph id="id7aa3859ecb2f406b90a08de1ff8f7874"><enum>(1)</enum><text>provides an assessment of the upcoming CCS projects in Canada, including—</text><subparagraph id="id3EBDBAB66FC3422D995A52F8B8D9AC8B"><enum>(A)</enum><text>the SaskPower Boundary Dam
Integrated CCS Demonstration Project;</text></subparagraph><subparagraph id="id9D63FD126607465CBFE91D07583F4F34"><enum>(B)</enum><text>the Shell Quest Project; and</text></subparagraph><subparagraph id="id97D3C5B6483040169A7515DDADBB2321"><enum>(C)</enum><text>the Alberta Carbon Trunk Line; and</text></subparagraph></paragraph><paragraph id="id869A2C4ED439427C995FC787696F0E67"><enum>(2)</enum><text display-inline="yes-display-inline">determines—</text><subparagraph id="id501cdd15cba74095a8f6ca14023872c2"><enum>(A)</enum><text>whether operation of the CCS system is meeting the project goals;</text></subparagraph><subparagraph id="id815a2be8cd594e55b13d6794acc9817e"><enum>(B)</enum><text>the economic status of the project, including—</text><clause id="idA405CF6772A846CC8E6A126775FC1564"><enum>(i)</enum><text>an overview of the ratio of private and public funds for capital costs;</text></clause><clause id="id63089613B8D24135A6D7BBAECC45D253"><enum>(ii)</enum><text>whether the project is generating revenue; and</text></clause><clause id="idC4C2F16729484ACD8F18A76DDD5AD07B"><enum>(iii)</enum><text>the current return on investment;</text></clause></subparagraph><subparagraph id="id635fa9e362f5441f9596f395ece4ecda"><enum>(C)</enum><text>whether the project is the type of project that the Federal Government should replicate in the
United States to move CCS forward on a pilot level;</text></subparagraph><subparagraph id="id096B9CCA139F4BF7989B8774F50260E6"><enum>(D)</enum><text>whether the project could comply with subparagraph (E) or (F) if the project should be replicated
under subparagraph (C);</text></subparagraph><subparagraph id="idf627453e23794dc4adfac2763ac1ad14"><enum>(E)</enum><text>whether the Federal Government and private industry in the United States can work together to
develop a similar pilot project in the United States; and</text></subparagraph><subparagraph id="id0058A1EF8E15457D8F0EFD85039AA038"><enum>(F)</enum><text>if the Federal Government and private industry cannot work together under subparagraph (E),
whether the Federal Government should work jointly with Canada on a
similar project.</text></subparagraph></paragraph></subsection></section>