[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 957 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                 S. 957

  To establish a clean coal power initiative, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 28, 2005

  Mr. Bunning (for himself and Ms. Landrieu) introduced the following 
bill; which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
  To establish a clean coal power initiative, and for other purposes.

    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 ``Clean Coal Power Initiative Act of 
2005''.

SEC. 2. CLEAN COAL POWER INITIATIVE.

    (a) In General.--
            (1) Establishment.--The Secretary of Energy (referred to in 
        this Act as the ``Secretary'') shall establish a clean coal 
        power initiative under which the Secretary shall provide 
        assistance under this Act for projects described in paragraph 
        (2).
            (2) Projects.--To be eligible to receive assistance under 
        this Act, a project shall advance efficiency, reliability, 
        environmental performance, and cost competitiveness 
        significantly more than the level of technologies that are in 
        commercial service or have been demonstrated on a scale that 
        the Secretary determines is sufficient to demonstrate that 
        commercial service is viable, as determined by the Secretary.
    (b) Technical Criteria.--
            (1) Gasification projects.--
                    (A) Allocation of funds.--In allocating the funds 
                made available under section 5(a), the Secretary shall 
                ensure that at least 60 percent of the funds are used 
                to fund projects using coal-based gasification 
                technologies, including--
                            (i) gasification combined cycle;
                            (ii) gasification fuel cells;
                            (iii) gasification coproduction; and
                            (iv) hybrid gasification or combustion.
                    (B) Technical milestones.--
                            (i) Periodic determination.--
                                    (I) In general.--The Secretary 
                                shall periodically establish technical 
                                milestones specifying the emission and 
                                thermal efficiency levels that coal 
                                gasification projects under this Act 
                                shall be designed, and reasonably 
                                expected, to achieve.
                                    (II) Restrictive milestones.--The 
                                technical milestones shall become more 
                                restrictive during the period of the 
                                clean coal power initiative.
                            (ii) 2021 goals.--The Secretary shall 
                        establish the periodic milestones so as to 
                        achieve by the year 2021 coal gasification 
                        projects able--
                                    (I) to remove at least 99 percent 
                                of the sulfur compounds;
                                    (II) to emit not more than .05 lbs 
                                of NOx per million Btu;
                                    (III) to achieve at least 90 
                                percent reductions in mercury 
                                emissions; and
                                    (IV) to achieve a thermal 
                                efficiency of at least--
                                            (aa) 50 percent for coal of 
                                        more than 9,000 Btu;
                                            (bb) 48 percent for coal of 
                                        7,000 to 9,000 Btu; and
                                            (cc) 46 percent for coal of 
                                        less than 7,000 Btu.
            (2) Other projects.--
                    (A) Allocation of funds.--The Secretary shall 
                ensure that not more than 40 percent of the funds made 
                available under section 5(a) are used to fund projects 
                other than those described in paragraph (1)(A).
                    (B) Technical milestones.--
                            (i) Periodic determination.--
                                    (I) In general.--The Secretary 
                                shall periodically establish technical 
                                milestones specifying the emission and 
                                thermal efficiency levels that projects 
                                other than those described in paragraph 
                                (1)(A) shall be designed, and 
                                reasonably expected, to achieve.
                                    (II) Restrictive milestones.--The 
                                technical milestones shall become more 
                                restrictive during the period of the 
                                clean coal power initiative.
                            (ii) 2015 goals.--The Secretary shall 
                        establish the periodic milestones so as to 
                        achieve by the year 2015 projects able--
                                    (I) to remove at least 97 percent 
                                of sulfur dioxide;
                                    (II) to emit not more than .08 lbs 
                                of NOx per million Btu;
                                    (III) to achieve at least 70 
                                percent reductions in mercury 
                                emissions; and
                                    (IV) to achieve a thermal 
                                efficiency of at least--
                                            (aa) 43 percent for coal of 
                                        more than 9,000 Btu;
                                            (bb) 41 percent for coal of 
                                        7,000 to 9,000 Btu; and
                                            (cc) 39 percent for coal of 
                                        less than 7,000 Btu.
            (3) Consultation.--Before establishing the technical 
        milestones under paragraphs (1)(B)(i)(I) and (2)(B)(i)(I), the 
        Secretary shall consult with--
                    (A) the Administrator of the Environmental 
                Protection Agency; and
                    (B) interested persons, including--
                            (i) coal producers;
                            (ii) industries using coal;
                            (iii) organizations that promote coal or 
                        advanced coal technologies;
                            (iv) environmental organizations; and
                            (v) organizations representing workers.
            (4) Existing units.--In the case of projects at units in 
        existence on the date of enactment of this Act, in lieu of the 
        thermal efficiency requirements described in paragraphs 
        (1)(B)(ii) and (2)(B)(ii), the milestones shall be designed to 
        achieve an overall thermal design efficiency improvement, 
        compared to the efficiency of the unit as operated, of not less 
        than--
                    (A) 7 percentage points for coal of more than 9,000 
                Btu;
                    (B) 6 percentage points for coal of 7,000 to 9,000 
                Btu; or
                    (C) 4 percentage points for coal of less than 7,000 
                Btu.
            (5) Project selection.--
                    (A) In general.--In evaluating project proposals, 
                the Secretary shall select those projects that are 
                expected to demonstrate progress toward achieving the 
                milestones described in paragraphs (1)(B)(i) and 
                (2)(B)(i).
                    (B) Site elevation and rank of coal.--In evaluating 
                project proposals to achieve the milestones described 
                in paragraphs (1)(B)(i), (2)(B)(i), and (4) and in 
                determining progress toward achieving the milestones 
                described in paragraphs (1)(B)(ii), (2)(B)(ii), and 
                (4), the Secretary shall consider and make adjustments 
                for the Btu value of various coals and the elevation of 
                the site at which a project is proposed to be 
                constructed.
                    (C) Evaluation.--The Secretary shall base project 
                selection on an evaluation of whether the construction 
                and operation of the proposed project will progress 
                toward achieving the milestones described in paragraphs 
                (1)(B)(ii) and (2)(B)(ii) through subsequent 
                replications of the technology.
            (6) Permitted uses.--
                    (A) In general.--In carrying out this Act, the 
                Secretary shall give high priority to projects that 
                include, as part of the project--
                            (i) the reduction of the demand for natural 
                        gas if deployed; or
                            (ii) the separation or capture of carbon 
                        dioxide.
                    (B) Thermal efficiency limitation.--For purposes of 
                subparagraph (A)(ii), the thermal efficiency goals of 
                paragraphs (1), (2), and (4) shall not apply to 
                projects that separate and capture at least 50 percent 
                of the potential emissions of carbon dioxide by a 
                facility.
    (c) Financial Criteria.--The Secretary shall not provide financial 
assistance under this Act for a project unless the recipient documents 
to the satisfaction of the Secretary that--
            (1) the recipient is financially viable without the receipt 
        of additional Federal assistance;
            (2) the recipient will provide sufficient information to 
        the Secretary to enable the Secretary to ensure that the funds 
        are spent efficiently and effectively; and
            (3) a market exists for the technology being demonstrated 
        or applied, as evidenced by statements of interest in writing 
        from potential purchasers of the technology.
    (d) Financial Assistance.--The Secretary shall provide assistance 
to projects that, as determined by the Secretary--
            (1) meet the requirements of subsections (a), (b), and (c); 
        and
            (2) are likely--
                    (A) to achieve overall cost reductions in the use 
                of coal to generate useful forms of energy; and
                    (B) to improve the competitiveness of coal among 
                various forms of energy in order to maintain a 
                diversity of fuel choices in the United States to meet 
                electricity generation or chemical feedstock 
                requirements.
    (e) Federal Share.--The Federal share of the cost of a coal or 
related technology project carried out using funds made available under 
this Act shall not exceed 50 percent, as determined by the Secretary.
    (f) 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 be--
            (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).
    (g) Report.--Not later than 1 year after the date of enactment of 
this Act, and once every 2 years thereafter through 2013, the 
Secretary, in consultation with other appropriate Federal agencies, 
shall submit to Congress a report describing--
            (1)(A) the technical milestones described in this section; 
        and
            (B) how those milestones ensure progress toward meeting the 
        requirements of paragraphs (1)(B)(ii) and (2)(B)(ii) of 
        subsection (b);
            (2) how the technologies being demonstrated under the clean 
        coal power initiative demonstrate methods and equipment that 
        can be used in broader commercial applications in addition to 
        electric power generation; and
            (3) the status of projects that receive assistance under 
        this Act.
    (h) Consideration of Applications.--Not later than 90 days after 
the date of enactment of this Act, the Secretary shall issue rules 
providing that any application for funding for a project under this 
section shall be approved or rejected not later than 180 days after the 
date on which the application was submitted, unless otherwise agreed to 
by the applicant.

SEC. 3. CLEAN COAL CENTERS OF EXCELLENCE.

    (a) In General.--The Secretary shall award competitive, merit-based 
grants to institutions of higher education (as defined in section 102 
of the Higher Education Act of 1965 (20 U.S.C. 1002)) for the 
establishment of centers of excellence for energy systems of the 
future, including clean coal technology.
    (b) Basis for Grants.--The Secretary shall award grants under this 
section to such institutions of higher education that show the greatest 
potential for advancing new clean coal technologies.

SEC. 4. RESEARCH PROGRAMS.

    (a) Objectives.--The Secretary shall conduct a program of 
technology research, development, demonstration, and commercial 
application for coal and power systems, including programs to 
facilitate production and generation of coal-based power through--
            (1) innovations for existing plants;
            (2) integrated gasification combined cycle;
            (3) advanced combustion systems;
            (4) turbines for synthesis gas derived from coal;
            (5) carbon capture and sequestration research and 
        development;
            (6) coal-derived transportation fuels and chemicals;
            (7) solid fuels and feedstocks;
            (8) advanced coal-related research;
            (9) advanced separation technologies; and
            (10) a joint project for permeability enhancement in coals 
        for natural gas production and carbon dioxide sequestration.
    (b) Program.--
            (1) In general.--The Secretary shall establish a program of 
        research and development to develop cost effective carbon 
        dioxide capture technologies that could be--
                    (A) applicable to the existing fleet of coal fired 
                units; or
                    (B) used in new coal combustion systems.
            (2) Objectives.--The program objectives shall be--
                    (A) to develop add-on carbon dioxide capture 
                technologies, including adsorption and absorption 
                techniques and chemical processes, to remove the carbon 
                dioxide from flue gas, producing concentrated streams 
                of carbon dioxide potentially amenable to 
                sequestration;
                    (B) to develop technologies for the existing fleet 
                of coal units that would directly produce concentrated 
                streams of carbon dioxide potentially amenable to 
                sequestration; and
                    (C) to increase the efficiency of the overall 
                combustion system to reduce the quantity of carbon 
                dioxide emissions released from the system per megawatt 
                generated.
            (3) Carbon sequestration.--In conjunction with the program 
        under paragraph (1), the Secretary shall continue to pursue a 
        robust carbon sequestration program in conjunction with the 
        private sector, through regional carbon sequestration 
        partnerships.
    (c) Cost and Performance Goals.--
            (1) In general.--In carrying out programs under subsections 
        (a) and (b), in each of fiscal years 2008 and 2016 and in each 
        year following fiscal year 2021, the Secretary shall identify 
        cost and performance goals for coal-based technologies that 
        would permit the continued cost-competitive use of coal for 
        electricity generation, as chemical feedstocks, and as 
        transportation fuel.
            (2) Establishing goals.--In identifying cost and 
        performance goals under paragraph (1), the Secretary shall--
                    (A) consider activities and studies undertaken as 
                of the date of enactment of this Act by industry in 
                cooperation with the Department of Energy in support of 
                the goals;
                    (B) consult with interested persons, including--
                            (i) coal producers;
                            (ii) industries using coal;
                            (iii) organizations that promote coal and 
                        advanced coal technologies;
                            (iv) environmental organizations; and
                            (v) organizations representing workers;
                    (C) not later than 120 days after the date of 
                enactment of this Act, publish in the Federal Register 
                proposed draft cost and performance goals for public 
                comment; and
                    (D) not later than 180 days after the date of 
                enactment of this Act and every 4 years thereafter, 
                submit to Congress a report that--
                            (i) describes final cost and performance 
                        goals for technologies described in paragraph 
                        (1);
                            (ii) includes a list of technical 
                        milestones; and
                            (iii) explains how programs authorized in 
                        subsection (a) will not duplicate activities 
                        carried out under sections 2 and 3.

SEC. 5. AUTHORIZATIONS OF APPROPRIATIONS.

    (a) Clean Coal Power Initiative.--
            (1) In general.--There is authorized to be appropriated to 
        the Secretary to carry out sections 2 and 3 $200,000,000 for 
        each of fiscal years 2006 through 2013, to remain available 
        until expended.
            (2) Report.--Not later than March 31, 2007, the Secretary 
        shall submit to Congress a report that includes a 10-year plan 
        that includes--
                    (A) a detailed assessment of whether the aggregate 
                assistance levels provided under paragraph (1) are the 
                appropriate assistance levels for the clean coal power 
                initiative;
                    (B) a detailed description of how proposals for 
                assistance under the clean coal power initiative will 
                be solicited and evaluated, including a list of all 
                activities expected to be undertaken;
                    (C) a detailed list of technical milestones for 
                each coal and related technology that will be pursued; 
                and
                    (D) a detailed description of how the clean coal 
                initiative will avoid problems enumerated in Government 
                Accountability Office reports on the Clean Coal 
                Technology Program of the Department of Energy, 
                including problems that have resulted in unspent funds 
                and projects that failed either financially or 
                scientifically.
    (b) Research Programs.--
            (1) In general.--There are authorized to be appropriated to 
        the Secretary to carry out clean coal technology research, 
        development, demonstration, and commercial application 
        activities, including activities described in section 4(a)--
                    (A) $259,000,000 for fiscal year 2006;
                    (B) $272,000,000 for fiscal year 2007;
                    (C) $285,000,000 for fiscal year 2008;
                    (D) $298,000,000 for fiscal year 2009; and
                    (E) $308,000,000 for fiscal year 2010.
            (2) Program.--There is authorized to be appropriated to the 
        Secretary to carry out section 4(b) $40,000,000 for each of 
        fiscal years 2006 through 2014, to remain available until 
        expended.
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