[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1153 Introduced in Senate (IS)]

  1st Session
                                S. 1153

  To provide Federal financial incentives for deployment of advanced 
                  coal-based generation technologies.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 26, 2005

Mr. Bunning (for himself and Mr. Thomas) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To provide Federal financial incentives for deployment of advanced 
                  coal-based generation technologies.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Coal-based Generation Improvement 
Act''.

SEC. 2. PURPOSE.

    The purpose of this Act is to provide Federal financial assistance 
for projects that will use integrated gasification combined cycle or 
other advanced coal-based generation technologies--
            (1) in new electric generating units;
            (2) to repower existing electric generation units; or
            (3) to retrofit existing natural gas combined cycle units 
        to operate on coal instead of natural gas.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Advanced coal-based generation technology.--The term 
        ``advanced coal-based generation technology'' means a 
        technology that meets the requirements of section 8.
            (2) Certified project.--The term ``certified project'' 
        means a qualifying advanced coal project that the Secretary has 
        certified under section 4 as eligible to receive Federal 
        financial assistance under this Act.
            (3) Electric generation unit.--The term ``electric 
        generation unit'' means any facility at least 50 percent of the 
        total annual net output of which is electrical power, including 
        an otherwise eligible facility that is used in an industrial 
        application.
            (4) Integrated gasification combined cycle.--The term 
        ``integrated gasification combined cycle'' means an electric 
        generation unit that produces electricity by converting coal to 
        synthesis gas that is then used to fuel a combined-cycle plant 
        that produces electricity from both a combustion turbine and a 
        steam turbine.
            (5) Qualifying advanced coal project.--The term 
        ``qualifying advanced coal project'' means a project that meets 
        the requirements of section 6.
            (6) Secretary.--The ``Secretary'' means the Secretary of 
        Energy.

SEC. 4. DEPLOYMENT INCENTIVE PROGRAM.

    (a) Establishment.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall begin carrying out a program 
to provide Federal financial incentives for deployment of advanced 
coal-based generation technologies.
    (b) Certification.--
            (1) In general.--The Secretary may certify a qualifying 
        advanced coal project as eligible to receive 1 of the Federal 
        financial incentives provided under section 5.
            (2) Period of issuance.--A certificate of eligibility under 
        this subsection may be issued only during the 10 fiscal year 
        periods beginning on October 1, 2005.
            (3) Certification commitments.--The Secretary may issue 
        certification commitments in accordance with section 
        6(a)(4)(B).
            (4) Aggregate generating capacity.--
                    (A) In general.--The aggregate generating capacity 
                of projects certified by the Secretary under paragraph 
                (1) may not exceed 10,000 megawatts.
                    (B) Particular projects.--Of the total megawatts of 
                capacity that the Secretary is authorized to certify--
                            (i) 5,000 megawatts shall be available only 
                        for use for integrated gasification combined 
                        cycle projects; and
                            (ii) 5,000 megawatts shall be available 
                        only for use for projects that use other 
                        advanced coal-based generation technologies.
                    (C) Determination of capacity.--In determining 
                capacity under this paragraph in the case of a 
                retrofitted or repowered plant, capacity shall be 
                determined based on total design capacity after the 
                retrofit or repowering of the existing facility is 
                accomplished.
                    (D) Review and redistribution.--
                            (i) Review.--Not later than 6 years after 
                        the date of enactment of this Act, the 
                        Secretary shall review the projects certified 
                        and the megawatts allocated under this section 
                        as of that date.
                            (ii) Redistribution.--The Secretary may 
                        reallocate the remaining megawatts available 
                        under paragraph (4) if the Secretary determines 
                        that--
                                    (I) capacity cannot be used because 
                                there are no qualifying applications 
                                for certification pending for any 
                                available capacity at the time of the 
                                review; or
                                    (II) a certification commitment 
                                made in accordance with paragraph (3) 
                                has not been revoked because the 
                                project subject to the certification 
                                commitment has been delayed as a result 
                                of third party opposition or litigation 
                                with respect to the proposed project.

SEC. 5. ELECTION OF FEDERAL FINANCIAL INCENTIVES.

    (a) Election.--
            (1) In general.--The project sponsor of a certified project 
        may elect to receive the Federal financial incentives described 
        in either subsection (b) or (c).
            (2) Limitation.--A project sponsor may not elect incentives 
        from more than 1 subsection described in paragraph (1).
    (b) Investment Tax Credit and Shortened Recovery Period.--
            (1) Eligibility.--The project sponsor of a certified 
        project may elect to receive the 20 percent investment tax 
        credit provided under section 48 of the Internal Revenue Code 
        of 1986 (as amended by paragraph (2) of this subsection) and 
        the 5-year recovery period provided under section 168 
        (e)(3)(B)(vi) of such Code.
            (2) Amendments to internal revenue code of 1986.--Section 
        48 of the Internal Revenue Code of 1986 (relating to energy 
        credit) is amended--
                    (A) by striking ``10 percent'' in subsection 
                (a)(2)(A) and inserting ``10 percent for energy 
                property other than certified coal property, and 20 
                percent for certified coal property'';
                    (B) by striking ``or'' at the end of clause (i) of 
                subsection (a)(3)(A), by inserting ``or'' at the end of 
                clause (ii) of such subsection, and by inserting after 
                such clause the following:
                            ``(iii) certified coal property.''; and
                    (C) by inserting at the end the following new 
                subsection:
    ``(c) Certified Coal Property.--For purposes of this section:
            ``(1) Definition.--The term `certified coal property' means 
        any property that is part of a qualifying advanced coal project 
        that the Secretary of Energy has certified under section 4 of 
        the Coal-based Generation Improvement Act, if the project 
        sponsor has elected the application of this section for the 
        project under section 5(b)(1) of such Act.
            ``(2) Inapplicability of certain provisions.--The following 
        provisions of this section are inapplicable to certified coal 
        property:
                    ``(A) Subsection (a)(3)(D) (relating to performance 
                and quality standards).
                    ``(B) The penultimate sentence of subsection (a)(3) 
                (relating to public utility property).''.
    (c) Tax Credit Bonds.--
            (1) Election.--A project sponsor that is a qualified issuer 
        (as defined in section 54(i)(4) of the Internal Revenue Code of 
        1986 (as added by paragraph (2)) may elect to issue clean 
        energy bonds under such section 54 for the purpose of financing 
        a certified project.
            (2) Credit to holders of clean energy bonds.--
                    (A) In general.--Part IV of subchapter A of chapter 
                1 of the Internal Revenue Code of 1986 (relating to 
                credits against tax) is amended by adding at the end 
                the following new subpart:

   ``Subpart H--Nonrefundable Credit to Holders of Clean Energy Bonds

``Sec. 54. Credit to holders of clean energy bonds.

``SEC. 54. CREDIT TO HOLDERS OF CLEAN ENERGY BONDS.

    ``(a) Allowance of Credit.--In the case of a taxpayer who holds a 
clean energy bond on a credit allowance date of such bond, which occurs 
during the taxable year, there shall be allowed as a credit against the 
tax imposed by this chapter for such taxable year an amount equal to 
the sum of the credits determined under subsection (b) with respect to 
credit allowance dates during such year on which the taxpayer holds 
such bond.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any credit allowance date 
        for a clean energy bond is 25 percent of the annual credit 
        determined with respect to such bond.
            ``(2) Annual credit.--The annual credit determined with 
        respect to any clean energy bond is the product of--
                    ``(A) the credit rate determined by the Secretary 
                under paragraph (3) for the day on which such bond was 
                sold, multiplied by
                    ``(B) the outstanding face amount of the bond.
            ``(3) Determination.--For purposes of paragraph (2), with 
        respect to any clean energy bond, the Secretary shall determine 
        daily or caused to be determined daily a credit rate which 
        shall apply to the first day on which there is a binding, 
        written contract for the sale or exchange of the bond. The 
        credit rate for any day is the credit rate which the Secretary 
        or the Secretary's designee estimates will permit the issuance 
        of clean energy bonds with a specified maturity or redemption 
        date without discount and without interest cost to the 
        qualified issuer.
            ``(4) Credit allowance date.--For purposes of this section, 
        the term `credit allowance date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term also includes the last day on which the bond is 
        outstanding.
            ``(5) Special rule for issuance and redemption.--In the 
        case of a bond which is issued during the 3-month period ending 
        on a credit allowance date, the amount of the credit determined 
        under this subsection with respect to such credit allowance 
        date shall be a ratable portion of the credit otherwise 
        determined based on the portion of the 3-month period during 
        which the bond is outstanding. A similar rule shall apply when 
        the bond is redeemed or matures.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than subpart C thereof, relating to 
                refundable credits).
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed by 
        paragraph (1) for such taxable year, such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year.
    ``(d) Clean Energy Bond.--For purposes of this section--
            ``(1) In general.--The term `clean energy bond' means any 
        bond issued as part of an issue if--
                    ``(A) the bond is issued by a qualified issuer,
                    ``(B) 95 percent or more of the proceeds from the 
                sale of such issue are to be used for capital 
                expenditures incurred by qualified borrowers for 1 or 
                more qualified projects,
                    ``(C) the qualified issuer designates such bond for 
                purposes of this section and the bond is in registered 
                form, and
                    ``(D) the issue meets the requirements of 
                subsections (e) and (g).
            ``(2) Qualified project; special use rules.--
                    ``(A) In general.--The term `qualified project' 
                means any certified coal property as determined under 
                section 48(c)(1) owned by a qualified borrower.
                    ``(B) Refinancing rules.--For purposes of paragraph 
                (1)(B), a qualified project may be refinanced with 
                proceeds of a clean energy 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.
                    ``(C) Reimbursement.--For purposes of paragraph 
                (1)(B), a clean energy 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 prior to the payment of 
                such expenditure, the qualified borrower declared its 
                intent to reimburse such expenditure with the proceeds 
                of a clean energy bond.
                    ``(D) Treatment of changes in use.--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 bond.
    ``(e) Maturity Limitations.--
            ``(1) Duration of term.--A bond shall not be treated as a 
        clean energy bond if such bond is issued as part of an issue 
        and--
                    ``(A) the average maturity of bonds issued as a 
                part of such issue, exceeds
                    ``(B) 120 percent of the average reasonable 
                expected economic life of the facilities being financed 
                with the proceeds from the sale of such issue.
            ``(2) Determination of averages.--For purposes of paragraph 
        (1), the determination of averages of an issue and economic 
        life of any facility shall be determined in accordance with 
        section 147(b).
            ``(3) Ratable principal amortization required.--A bond 
        shall not be treated as a clean energy bond unless it is part 
        of an issue which provides for an equal amount of principal to 
        be paid by the qualified issuer during each calendar year that 
        the issue is outstanding.
    ``(f) Credit Included in Gross Income.--Gross income includes the 
amount of the credit allowed to the taxpayer under this section 
(determined without regard to subsection (c)) and the amount so 
included shall be treated as interest income.
    ``(g) Special Rules Relating to Expenditures.--
            ``(1) In general.--An issue shall be treated as meeting the 
        requirements of this subsection if--
                    ``(A) at least 95 percent of the 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,
                    ``(B) a binding commitment with a third party to 
                spend at least 10 percent of the 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 
                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
                    ``(C) such projects will be completed with due 
                diligence and the proceeds from the sale of the issue 
                will be spent with due diligence.
            ``(2) Extension of period.--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.
            ``(3) Failure to spend required amount of bond proceeds 
        within 5 years.--To the extent that less than 95 percent of the 
        proceeds of such issue are expended within such 5-year period 
        (and no extension has been obtained under paragraph (2)), the 
        qualified issuer shall redeem all of the nonqualified bonds on 
        the earliest call date subsequent to the expiration of the 5-
        year period. If such earliest call date is more than 90 days 
        subsequent to the expiration of the 5-year period, the 
        qualified issuer shall establish a yield-restricted defeasance 
        escrow within such 90 days to retire such nonqualified bonds on 
        the earlier of the date which is 10 years after the issue date 
        or the first call date. For purposes of this paragraph, the 
        term `nonqualified bonds' means the portion of the outstanding 
        bonds in an amount that, if the remaining bonds were issued on 
        the fifth anniversary of the date of the issuance of the issue, 
        at least 95 percent of the proceeds of the remaining bonds 
        would be used to provide qualified projects.
    ``(h) Special Rules Relating to Arbitrage.--
            ``(1) In general.--A bond which is part of an issue shall 
        not be treated as a clean energy bond unless, with respect to 
        the issue of which the bond is a part, the qualified issuer 
        satisfies the arbitrage rebate requirements of section 148 with 
        respect to gross proceeds of the issue (other than any amounts 
        applied in accordance with subsection (g)). For purposes of 
        such requirements, yield over the term of an issue shall be 
        determined under the principles of section 148 based on the 
        qualified issuer's payments of principal, interest (if any), 
        and fees for qualified guarantees on such issue.
            ``(2) Exception.--Amounts on deposit in a bona fide debt 
        service fund with regard to any clean energy bond are not 
        subject to the arbitrage rebate requirements of section 148.
    ``(i) Cooperative Electric Company; Qualified Energy Tax Credit 
Bond Lender; Governmental Body; Qualified Borrower.--For purposes of 
this section--
            ``(1) Cooperative electric company.--The term `cooperative 
        electric company' 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.
            ``(2) Clean energy bond lender.--The term `clean energy 
        bond lender' 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.
            ``(3) Governmental body.--The term `governmental body' 
        means any State, territory, possession of the United States, 
        the District of Columbia, Indian tribal government, and any 
        political subdivision thereof.
            ``(4) Qualified issuer.--The term `qualified issuer' 
        means--
                    ``(A) a clean energy bond lender,
                    ``(B) a cooperative electric company,
                    ``(C) a governmental body, or
                    ``(D) the Tennessee Valley Authority.
            ``(5) Qualified borrower.--The term `qualified borrower' 
        means--
                    ``(A) a cooperative electric company,
                    ``(B) a governmental body, or
                    ``(C) the Tennessee Valley Authority.
    ``(j) Special Rules Relating to Pool Bonds.--No portion of a pooled 
financing bond may be allocable to loan unless the borrower has entered 
into a written loan commitment for such portion prior to the issue date 
of such issue.
    ``(k) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Bond.--The term `bond' includes any obligation.
            ``(2) Pooled financing bond.--The term `pooled financing 
        bond' shall have the meaning given such term by section 
        149(f)(4)(A).
            ``(3) Partnership; s corporation; and other pass-thru 
        entities.--Under regulations prescribed by the Secretary, in 
        the case of a partnership, trust, S corporation, or other pass-
        thru entity, rules similar to the rules of section 41(g) shall 
        apply with respect to the credit allowable under subsection 
        (a).
            ``(4) Bonds held by regulated investment companies.--If any 
        clean energy bond is held by a regulated investment company, 
        the credit determined under subsection (a) shall be allowed to 
        shareholders of such company under procedures prescribed by the 
        Secretary.
            ``(5) Treatment for estimated tax purposes.--Solely for 
        purposes of sections 6654 and 6655, the credit allowed by this 
        section to a taxpayer by reason of holding a clean energy bond 
        on a credit allowance date shall be treated as if it were a 
        payment of estimated tax made by the taxpayer on such date.
            ``(6) Reporting.--Issuers of clean energy bonds shall 
        submit reports similar to the reports required under section 
        149(e).
    ``(l) Termination.--This section shall not apply with respect to 
any bond issued after December 31, 2008.''.
                    (B) Reporting.--Subsection (d) of section 6049 of 
                such Code (relating to returns regarding payments of 
                interest) is amended by adding at the end the following 
                new paragraph:
            ``(8) Reporting of credit on clean energy bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 54(f) and such amounts shall 
                be treated as paid on the credit allowance date (as 
                defined in section 54(b)(4)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A), subsection 
                (b)(4) shall be applied without regard to subparagraphs 
                (A), (H), (I), (J), (K), and (L)(i) of such subsection.
                    ``(C) Regulatory authority.--The Secretary may 
                prescribe such regulations as are necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations which require more 
                frequent or more detailed reporting.''.
                    (C) Clerical amendments.--
                            (i) The table of subparts for part IV of 
                        subchapter A of chapter 1 of such Code is 
                        amended by adding at the end the following new 
                        item:

 ``subpart h. nonrefundable credit to holders of clean energy bonds.''.
                            (ii) Section 6401(b)(1) of such Code is 
                        amended by striking ``and G'' and inserting 
                        ``G, and H''.
                    (D) Issuance of regulations.--The Secretary of 
                Treasury shall issue regulations required under section 
                54 of the Internal Revenue Code of 1986 (as added by 
                this paragraph) not later than 120 days after the date 
                of the enactment of this Act.
                    (E) Effective date.--The amendments made by this 
                paragraph shall apply to bonds issued after the date of 
                the enactment of this Act.

SEC. 6. QUALIFYING ADVANCED COAL PROJECTS.

    (a) Requirements.--For the purpose of section 4(b), a project shall 
be considered a qualifying advanced coal project that the Secretary may 
certify under section 4(b) if the Secretary determines that, at a 
minimum--
            (1) the project uses an advanced coal-based generation 
        technology--
                    (A) in a new electric generation unit; or
                    (B) to retrofit or repower an existing electric 
                generation unit (including an existing natural gas-
                fired combined cycle unit);
            (2) the fuel input for the project, when completed, is at 
        least 75 percent coal;
            (3) the applicant provides assurance satisfactory to the 
        Secretary that--
                    (A) the project is technologically feasible; and
                    (B) with the Federal financial incentives, the 
                project is economically feasible, taking into 
                consideration--
                            (i) the regulatory approvals or power 
                        purchase contracts referred to in paragraph 
                        (4)(A);
                            (ii) arrangements for supply of fuel to the 
                        project;
                            (iii) contracts or other arrangements for 
                        construction of the project facilities;
                            (iv) any performance guarantees to be 
                        provided by contractors and equipment vendors; 
                        and
                            (v) evidence of the availability of funds 
                        to develop and construct the project;
            (4) the applicant demonstrates that the applicant has 
        obtained--
                    (A) approval by the appropriate regulatory 
                commission of the recovery of the cost of the project; 
                or
                    (B) a power purchase agreement (or letter of intent 
                subject to subsection (b)) that has been approved by 
                the board of directors of, and executed by, a 
                creditworthy purchasing party; and
            (5) except as provided in subsection (c), the applicant 
        demonstrates that the applicant has, or will, obtain all 
        project agreements and approvals.
    (b) Letter of Intent.--A letter of intent described in subsection 
(a)(4)(B) shall be replaced by a binding contract before a certificate 
may be issued.
    (c) Project Agreements and Approvals.--
            (1) Definition of project agreements and approvals.--
                    (A) In general.--In this section, the term 
                ``project agreements and approvals'' means--
                            (i) all necessary power purchase agreements 
                        and all other contracts that the Secretary 
                        determines are necessary to construct, finance, 
                        and operate a project; and
                            (ii) all authorizations by Federal, State, 
                        and local agencies that are required in order 
                        to construct, operate, and recover the cost of 
                        the project.
                    (B) Inclusion.--The term ``project agreements and 
                approvals'' includes any approvals or contracts 
                required under subparagraph (A) or (B) of subsection 
                (a)(4).
            (2) Certification commitment.--
                    (A) In general.--If the applicant has not obtained 
                all agreements and approvals prior to application, the 
                Secretary may issue a certification commitment.
                    (B) Requirements.--
                            (i) In general.--An applicant that receives 
                        a certification commitment shall obtain any 
                        remaining project agreements and approvals not 
                        later than 4 years after the issuance of the 
                        certification commitment.
                            (ii) Revocation.--If all project agreements 
                        and approvals are not obtained during the 4-
                        year period described in clause i), the 
                        certification commitment is terminated without 
                        any other action by the Secretary.
                            (iii) Final certificate.--No certificate 
                        may be issued until such project agreements and 
                        approvals are obtained.
    (b) Incentives.--An application for certification shall specify 
which of the incentives under section 5 the project sponsor will elect.

SEC. 7. PROCESS FOR ACTING ON APPLICATIONS.

    (a) In General.--The Secretary shall act on applications for 
certification under section 3 as the applications are received.
    (b) Determination.--In determining whether to certify a qualifying 
advanced coal project, the Secretary shall take into account any 
written statement from the Governor of the State in which the project 
is to be sited that the construction and operation of the project is 
consistent with State environmental and energy policy.

SEC. 8. ADVANCED COAL-BASED GENERATION TECHNOLOGY.

    (a) In General.--For the purposes of this Act, an electric 
generation unit uses advanced coal-based generation technology if--
            (1) the unit--
                    (A) uses integrated gasification combined cycle 
                technology; or
                    (B) has a design net heat rate of 8530 Btu/kWh (40 
                percent efficiency); and
            (2) the vendor warrants that the unit is designed to meet 
        the performance requirements in the following table:

      

             Performance             Design level for project:
              characteristic
                 SO2 (% removal)...  99% of such amount
                 NOx (emissions)...  0.07 lbs/MMBTU
                 PM* (emissions)...  0.015 lbs/MMBTU
                 Hg (% removal)....  90%.
 

    (b) Design Net Heat Rate.--For purposes of this section, design net 
heat rate with respect to an electric generation unit shall--
            (1) be measured in Btu per kilowatt hour (higher heating 
        value);
            (2) be based on the design annual heat input to the design 
        and the design annual net electrical power, fuels, and 
        chemicals output from the unit (determined without regard to 
        the cogeneration of steam by the unit);
            (3) be adjusted for the heat content of the design coal to 
        be used by the unit--
                    (A) if the heat content is less than 13,500 Btu per 
                pound but greater than 7,000 Btu per pound, according 
                to the following formula: unit net heat rate x [1-
                {((13,500-design coal heat content, Btu per pound)/
                1,000)* 0.013}]; and
                    (B) if the heat content is less than or equal to 
                7,000 Btu per pound, according to the following 
                formula: unit net heat rate x [1-{((13,500-design coal 
                heat content, Btu per pound)/1,000)* 0.018}]; and
            (4) be corrected for the site reference conditions of--
                    (A) elevation above sea level of 500 feet;
                    (B) air pressure of 14.4 pounds per square inch 
                absolute;
                    (C) temperature, dry bulb of 63 deg.F;
                    (D) temperature, wet bulb of 54 deg.F; and
                    (E) relative humidity of 55 percent.

SEC. 9. FEDERAL PROJECT COORDINATOR.

    The Secretary shall designate a Federal project coordinator to 
facilitate any Federal agency approvals of eligible advanced coal 
generation projects.

SEC. 10. APPLICABILITY.

    No technology, or level of emission reduction, solely by reason of 
the use of the technology, or the achievement of the emission 
reduction, by 1 or more facilities receiving assistance under this Act, 
shall be considered to indicate that the technology or performance 
level is--
            (1) adequately demonstrated for purposes of section 111 of 
        the Clean Air Act (42 U.S.C. 7411);
            (2) achievable for purposes of section 169 of that Act (42 
        U.S.C. 7479); or
            (3) achievable in practice for purposes of section 171 of 
        that Act (42 U.S.C. 7501).
                                 <all>