[Congressional Record Volume 149, Number 38 (Monday, March 10, 2003)]
[Senate]
[Pages S3412-S3420]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. LUGAR:
S. 580. A bill to authorize the extension of nondiscriminatory
treatment (normal trad relations treatment) to the products of Russia;
to the Committee on Finance.
Mr. LUGAR. Mr. President, I rise today to offer legislation to repeal
the Jackson-Vanik amendment to Title IV of the 1974 Trade Act as it
relates to Russia and to authorize the President to grant permanent
normal trade relations to Russia.
Congress passed the 1974 Jackson-Vanik amendment to deny permanent
normal trade relations to communist countries that restricted
emigration rights. Over the years, it has been an effective tool to
promote free emigration, but its continuing applicability to Russia no
longer makes sense in the context of the many changes that have
occurred since the fall of the Soviet Union.
Since 1994, successive Administrations have found Russia in full
compliance with the requirements of freedom of emigration. Because
Russia continues to be subject to Jackson-Vanik, the Administration
must submit a semi-annual report to the Congress on Russia's continued
compliance with freedom of emigration requirements. Since 1991,
Congress has authorized the removal of Jackson-Vanik restrictions from
Estonia, Latvia, Lithuania, the Czech Republic, the Slovak Republic,
Hungary, Bulgaria, Romania, Kyrgyzstan, Albania, and Georgia. The
conditions that have warranted these countries' removal from Title IV
reporting apply equally to Russia.
For more than 8 years, Russia has satisfied the requirements of the
Jackson-Vanik legislation. It has supported free emigration and it has
signed a bilateral trade agreement with the United States allowing the
application of normal trade relations status. Last year, the United
States declared that Russia would no longer be considered a nonmarket
economy for the purposes of trade remedies laws. Russia has made
tremendous strides in the last decade. While Russia currently receives
normal trade relations treatment with respect to its exports to the
U.S., repealing Jackson-Vanik will remove the requirement of semi-
annual reports that have been an irritant in U.S.-Russia relations.
Granting permanent normal trade relations also will provide certainty
that will improve the investment climate and promote enhanced economic
relations between the U.S. and Russia. I urge my colleagues to support
this legislation.
______
By Mr. BUNNING:
S. 582. A bill to authorize the Department of Energy to develop and
implement an accelerated research and development program for advanced
clean coal technologies for use in coal-based electricity generating
facilities and to amend the Internal Revenue Code of 1986 to provide
financial incentives to encourage the retrofitting, repowering, or
replacement of coal-based electricity generating facilities to protect
the environment and improve efficiency and encourage the early
commercial application of advanced clean coal technologies, so as to
allow coal to help meet the growing need of the United States for the
generation of reliable and affordable electricity; to the Committee on
Finance.
Mr. BUNNING. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 582
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
(a) Short Title.--This Act may be cited as the ``Coal
Energy Research Development and Demonstration Act of 2003''.
SEC. 2. TABLE OF CONTENTS.
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I.--ACCELERATED TECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAM FOR
ADVANCED CLEAN COAL TECHNOLOGY
Sec. 101. Definitions.
Sec. 102. Cost and performance goals.
Sec. 103. Study.
Sec. 104. Technology research and development program.
Sec. 105. Authorization of appropriations.
TITLE II--CLEAN COAL POWER INITIATIVE
Sec. 201. Authorization of appropriations.
Sec. 202. Clean coal power initiative criteria.
Sec. 203. Report.
Sec. 204. Clean coal centers of excellence.
TITLE III--CLEAN COAL INCENTIVES
Subtitle A--Credit for Emission Reductions and Efficiency Improvements
in Existing Coal-Based Electricity Generation Facilities
Sec. 301. Credit for production from a qualifying clean coal technology
unit.
Subtitle B--Incentives for Early Commercial Applications of Advanced
Clean Coal Technologies
Sec. 302. Credit for investment in qualifying advanced clean coal
technology.
Sec. 303. Credit for production from a qualifying advanced clean coal
technology unit.
Subtitle C--Treatment of persons Not Able To Use Entire Credit
Sec. 304. Treatment of persons not able to use entire credit.
TITLE I--ACCELERATED TECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAM FOR
ADVANCED CLEAN COAL TECHNOLOGY
SEC. 101. DEFINITIONS.
In this title:
(a) Cost and Performance Goals.--The term ``cost and
performance goals'' means the cost and performance goals
established under section 102.
(b) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
SEC. 102. COST AND PERFORMANCE GOALS.
(a) In General.--The Secretary shall perform an assessment
that identifies cost and performance goals of technologies
that would permit the continued cost-competitive use of coal
for electricity generation, as chemical feedstocks, and as
transportation fuel in 2007, 2015 and the years after 2020.
(b) Consultation.--In establishing the cost and performance
goals, the Secretary shall--
(1) consider activities and studies undertaken to date by
industry in cooperation with the Department of Energy in
support of such assessment; and
(2) consult with interested entities, including coal
producers, industries using coal, organizations to promote
coal and advanced coal technologies, environmental
organizations and organizations representing workers.
(c) Timing.--The Secretary shall--
(1) Not later than 120 days after the date of enactment of
this Act, issue a set of draft cost and performance goals for
public comment; and
(2) not later than 180 days after the date of enactment of
this Act, after taking into consideration any public comments
received, submit to Congress the final cost and performance
goals.
SEC. 103. STUDY.
(a) In General.--Not later than 1 year after the date of
enactment of this Act, and once every 2 years thereafter
through 2016, the Secretary, in cooperation with other
appropriate federal agencies, shall conduct a study to--
(1) identify technologies that, by themselves or in
combination with other technologies, may be capable of
achieving the cost and performance goals;
(2) assess the costs that would be incurred by, and the
period of time that would be required for, the development
and demonstration of technologies that, by themselves or in
combination with other technologies, contribute to the
achievement of the cost and performance goals;
(3) develop recommendations for technology development
programs, which the Department of Energy could carry out in
cooperation with industry, to develop and demonstrate
technologies that, by themselves or in combination with other
technologies, achieves the cost and performance goals; and
(4) develop recommendations for additional authorities
required to achieve the cost and performance goals, and
review and recommend changes, if any, to those cost and
performance goals if the Secretary determines that such
changes are necessary as a result of ongoing research,
development and demonstration of technologies.
(b) Cooperation--In carrying out this section, the
Secretary shall give due weight to the expert advice of
representatives of the entities described in section
102(b)(2).
SEC. 104. TECHNOLOGY RESEARCH, DEVELOPMENT AND DEMONSTRATION
PROGRAM.
(a) In General.--The Secretary shall carry out a technology
research, development and demonstration program to facilitate
production and generation of coal-based power through methods
and equipment under--
(1) this Title;
(2) the Federal Nonnuclear Energy Research and Development
Act of 1974 (42 U.S.C. 5901 et seq.);
(3) the Energy Reorganization Act of 1974 (42 U.S.C. 5801
et seq.); and
[[Page S3413]]
(4) title XVI of the Energy Policy Act of 1992 (42 U.S.C.
13381 et seq.).
(b) Conditions.--The program described in subsection (a)
shall be designed to achieve the cost and performance goals
required by Section 102.
SEC. 105. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated to
the Secretary $200,000,000 for fiscal year 2004, $210,000,000
for fiscal year 2005, and $220,500,000 for fiscal year 2006,
to remain available until expended, for coal and related
technologies research and development programs, which shall
include--
(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; and
(8) advanced coal-related research.
(b) Limit on Use of Funds.--
(1) Prior to the use of funds authorized by this section,
the Secretary shall transmit to the Congress a report
describing the proposed use of funds and containing a plan
that includes--
(a) a detailed description of how proposals, if any, will
be solicited and evaluated, including a list of all
activities expected to be undertaken;
(b) a detailed list of technical milestones for each coal
and related technology that will be pursued;
(c) a description of how the programs authorized in this
section will be carried out so as to complement and not
duplicate activities authorized under the Clean Coal Power
Initiative authorized under Title II.
(2) Thirty days shall elapse from receipt of the report
required by this subsection after which the Secretary may
then use the authorization of appropriations provided by this
section.
TITLE II--CLEAN COAL POWER INITIATIVE
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
(a) Clean Coal Power Initiative.--Except as provided in
subsection (b), there are authorized to be appropriated to
the Secretary to carry out the activities authorized by this
title $200,000,000 for each of the fiscal years 2003 through
2011, to remain available until expended.
(b) Limit on Use of Funds.--
(1) Notwithstanding subsection (a), the Secretary is
authorized to obligate the use of funds prior to the date
authorized herein, subject to appropriations.
(2) The Secretary shall transmit to the Committee on Energy
and Commerce and the Committee on Science of the House of
Representatives, and to the Senate, a report, with respect to
subsection (a), containing--
(A) a detailed assessment of whether the aggregate funding
levels provided under subsection (a) are the appropriate
funding levels for that program;
(B) a detailed description of how proposals 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 program will avoid
problems enumerated in General Accounting Office reports on
the Clean Coal Technology Program, including problems that
have resulted in unspent funds and projects that failed
either financially or scientifically.
(3) Thirty days elapse from receipt of the report required
by this subsection after which the Secretary may then use the
authorization of appropriations provided by this section.
(c) Applicability.--Subsection (b) shall not apply to any
project begun before September 30, 2003.
SEC. 202. CLEAN COAL POWER INITIATIVE CRITERIA.
(a) In General.--The Secretary shall not provide funding
under this title for any project that does not advance
efficiency, environmental performance, and cost
competitiveness well beyond the level of technologies that
are in operation or have been demonstrated as of the date of
the enactment of this Act.
(b) Technical Criteria for Clean Coal Power Initiative.--
(1) Gasification.--
(A) In allocating the funds made available under section
201(a), the Secretary shall ensure that not less than 55
percent, but not more than 80 percent, of the funds are used
for coal-based gasification technologies, coal based projects
that includes the separation and capture of carbon dioxide,
or coal based projects that include gasification combined
cycle, gasification fuel cells, gasification coproduction, or
hybrid gasification/combustion.
(B) The Secretary shall set technical milestones specifying
emissions levels that coal gasification projects must be
designed to and reasonably expected to achieve. The
milestones shall get more restrictive through the life of the
program. The milestones shall be designed to achieve by 2020
coal gasification projects able--
(i) to remove 99 percent of sulfur dioxide;
(ii) to emit no more than .05 lbs of NOX per
million BTU;
(iii) to achieve substantial reductions in mercury
emissions; and
(iv) to achieve a thermal efficiency of--
(I) 60 percent for coal of more than 9,000 Btu;
(II) 59 percent for coal of 7,000 to 9,000 Btu; and
(III) 57 percent for coal of less than 7,000 Btu.
(2) Other projects.--For projects not described in
paragraph (1), the Secretary shall set technical milestones
specifying emissions levels that the projects must be
designed to and reasonably expected to achieve. The
milestones shall get more restrictive through the life of the
program. The milestones hall be designed to achieve by 2010
projects able--
(A) to remove 97 percent of sulfur dioxide;
(B) to emit no more than .08 lbs of NOx per million BTU;
(C) to achieve substantial reductions in mercury emissions;
and
(D) to achieve a thermal efficiency of--
(i) 45 percent for coal of more than 9,000 Btu;
(ii) 44 percent for coal 7,000 to 9,000 Btu; and
(iii) 42 percent for coal of less than 7,000 Btu.
(3) Consultation.--Before setting the technical milestones
under paragraphs (1)(B) and (2), the Secretary shall consult
with the Administrator of the Environmental Protection Agency
and interested entities, including coal producers, industries
using coal, organizations to promote coal or advanced coal
technologies, environmental organizations, and organizations
representing workers.
(4) Existing units.--In the case of projects at existing
units, in lieu of the thermal efficiency requirements set
forth in paragraph (1)(B)(iv) and (2)(D), the projects 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 percent for coal of more than 9,000 Btu;
(B) 6 percent for coal of 7,000 to 9,000 Btu; or
(C) 4 percent for coal of less than 7,000 Btu.
(c) Financial Criteria.--The Secretary shall not provide a
funding award under this title unless the recipient has
documented to the satisfaction of the Secretary that--
(1) the award recipient is financially viable without the
receipt of additional Federal funding;
(2) the recipient will provide sufficient information to
the Secretary for the Secretary to ensure that the award
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
financial assistance to projects that meet the requirements
of subsections (a), (b), and (c) and are likely to--
(1) achieve overall cost reductions in the utilization of
coal to generate useful forms of energy;
(2) 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
requirements; and
(3) demonstrate methods and equipment that are applicable
to 25 percent of the electricity generating facilities that
use coal as the primary feedstock as of the date of the
enactment of this Act.
(e) Federal Share.--The Federal share of the cost of a coal
or related technology project funded by the Secretary shall
not exceed 50 percent. The Federal share may repaid over a
reasonable period of time as agreed upon with the Secretary.
(f) Applicability.--No technology, or level of emission
reduction, shall be treated as adequately demonstrated for
purposes of section 111 of the Clean Air Act, achievable for
purposes of section 169 of that Act, or achievable in
practice for purposes of section 171 of that Act solely by
reason of the use of such technology, or the achievement of
such emission reduction, by one or more facilities
receiving assistance under this title.
SEC. 203. REPORT.
(a) Not later than 1 year after the date of the enactment
of this Act, and once every 2 years thereafter through 2011,
the Secretary, in consultation with other appropriate Federal
agencies, shall transmit to the Committee on Energy and
Commerce and the Committee on Science of the House of
Representatives, and to the Senate, a report describing--
(1) the technical milestones set forth in section 202 and
how those milestones ensure progress toward meeting the
requirements of subsections (b)(1)(B) and (b)(2) of section
202; and
SEC. 204. CLEAN COAL CENTERS OF EXCELLENCE.
As part of the program authorized in section 201, the
Secretary shall award competitive, merit-based grants to
universities for the establishment of Centers of Excellence
for Energy Systems of the Future. The Secretary shall provide
grants to universities that can show the greatest potential
for advancing new clean coal technologies.
TITLE III--CLEAN COAL INCENTIVES
Subtitle A--Credit for Emission Reductions and Efficiency Improvements
in Existing Coal-Based Electricity Generation Facilities
SEC. 301. CREDIT FOR PRODUCTION FROM A QUALIFYING CLEAN COAL
TECHNOLOGY UNIT.
(a) Credit for Production From a Qualifying Clean Coal
Technology Unit.--Subpart D of part IV of subchapter A of
chapter
[[Page S3414]]
1 of the Internal Revenue Code of 1986 (relating to business
related credits) is amended by adding at the end the
following new section:
``SEC. 451. CREDIT FOR PRODUCTION FROM A QUALIFYING CLEAN
COAL TECHNOLOGY UNIT.
``(a) General Rule.--For purposes of section 38, the
qualifying clean coal technology production credit of any
taxpayer for any taxable year is equal to the product of--
``(1) the applicable amount of clean technology production
credit, multiplied by
``(2) the applicable percentage of the kilowatt hours of
electricity produced and the equivalent heat value of other
fuels or chemicals produced by the taxpayer during such
taxable year at a qualifying clean coal technology unit, but
only if such production occurs during the 10-year period
beginning on the date the unit was returned to service after
becoming a qualifying clean coal technology unit.
``(b) Applicable Amount.--
``(1) In general.--For purposes of this section, the
applicable amount of clean coal technology production credit
is equal to $0.0034 per kilowatt-hour of electricity produced
and the equivalent heat value of other fuels or chemicals
produced from not more than 300,000 kilowatts of nameplate
capacity at the same qualifying clean coal technology unit.
``(2) Inflation adjustment.--For calendar years after 2003,
the applicable amount of clean coal technology production
credit shall be adjusted by multiplying such amount by the
inflation adjustment factor for the calendar year in which
the amount is applied. If any amount as increased under the
preceding sentence is not a multiple of 0.01 cent, such
amount shall be rounded to the nearest multiple of 0.01 cent.
``(c) Applicable Percentage.--For purposes of this section,
with respect to any qualifying clean coal technology unit,
the applicable percentage is the percentage equal to the
ratio which the portion of the national megawatt capacity
limitation allocated to the taxpayer with respect to such
unit under subsection (e) bears to the total megawatt
capacity of such unit.
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Qualifying clean coal technology unit.--The term
``qualifying clean coal technology unit'' means a clean coal
technology unit of the taxpayer which--
``(A) on the date of the enactment of this section was a
coal-based electricity generating steam generator-turbine
unit which was not a clean coal technology unit;
``(B) has a nameplate capacity rating of not more than
300,000 kilowatts as of the date of enactment of this
section;
``(C) becomes a clean coal technology unit as the result of
the retrofitting, repowering, or replacement of the unit with
clean coal technology, which nameplate capacity may then be
greater than 300,000 kilowatts, during the 10-year period
beginning on the date of the enactment of this section;
``(D) is not receiving nor is scheduled to receive funding
under the Clean Coal Technology Program, the Power Plant
Improvement Initiative, or the Clean Coal Power Initiative
administered by the Secretary of Energy; and
``(E) receives an allocation of a portion of the national
megawatt capacity limitation under subsection (e), which
shall not exceed 300,000 kilowatts.
``(2) Clean coal technology unit.--The term ``clean coal
technology unit'' means a unit which--
``(A) uses clean coal technology, including advanced
pulverized coal or atmosphere fluidized bed combustion,
pressurized fluidized bed combustion, integrated gasification
combined cycle, or any other technology for the production of
electricity;
``(B) uses at least 75 percent coal to produce 50 percent
or more of its thermal output as electricity;
``(C) has a design net heat rate of at least 500 less than
that of such unit as described in paragraph (1)(A);
``(D) has a maximum design net heat rate of not more than
9,500; and
``(E) meets the pollution control requirements of paragraph
(3).
``(3) Pollution control requirements.--
``(A) In general.--A unit meets the requirements of this
paragraph if--
``(i) its emissions of sulfur dioxide, nitrogen oxide, or
particulates meet the lower of the emission levels for each
such emission specified in--
``(I) subparagraph (B), or
``(II) the new source performance standards of the Clean
Air Act (42 U.S.C. 7411) which are in effect for the category
of source at the time of the retrofitting, repowering, or
replacement of the unit, and
``(ii) its emissions do not exceed any relevant emission
level specified by regulation pursuant to the hazardous air
pollutant requirements of the Clean Air Act (42 U.S.C. 7412)
is effect at the time of the retrofitting, repowering, or
replacement.
``(B) Specific levels.--The levels specified in this
subparagraph are--
``(i) in the case of sulfur dioxide emissions, 50 percent
of the sulfur dioxide emission levels specified in the new
source performance standards of the Clean Air Act (42 U.S.C.
7411) in effect on the date of the enactment of this section
for the category of source,
``(ii) in the case of nitrogen oxide emissions--
``(I) 0.1 pound per million Btu of heat input if the unit
is not a cyclone-fired boiler, and
``(II) if the unit is a cyclone-fired boiler, 15 percent of
the uncontrolled nitrogen oxide emissions from such boilers,
and
``(ii) in the case of particulate emissions, 0.02 pound per
million Btu of heat input.
``(4) Design net heat rate.--The design net heat rate with
respect to any unit, measured in Btu per kilowatt hour
(HHV)--
``(A) shall be based on the design annual heat input to and
the design annual net electrical power, fuels and chemicals
output from such unit (determined without regard to such
unit's co-generation of steam),
``(B) shall be adjusted for the heat content of the design
coal to be used by the unit if it is less than 12,000 Btu per
pound according to the following formula:
Design net heat rate = Unit net heat rate [1-{((12,000-design
coal heat content, Btu per pound)/1,000) 0.013 ],
``(C) shall be corrected for the site reference conditions
of--
``(i) elevation above sea level of 500 feet,
``(ii) air pressure of 14.4 pounds per square inch absolute
(psia),
``(iii) temperature, dry bulb of 63 deg.F,
``(iv) temperature, wet bulb of 54 deg.F, and
``(v) relative humidity of 55 percent, and
``(D) shall be adjusted (or credit given) for any
qualifying unit that installs carbon capture controls that
remove not less than 50 percent of the unit's carbon dioxide
emissions up to the design heat rate level that would have
resulted without installation of carbon capture controls.
``(5) HHV.--The term ``HHV'' means higher heating value.
``(6) Application of certain rules.--The rules of
paragraphs (3), (4), and (5) of section 45(d) shall apply.
``(7) Inflation adjustment factor.--
``(A) In general.-- The term ``inflation adjustment
factor'' means, with respect to a calendar year, a fraction
the numerator of which is the GDP implicit price deflator for
the preceding calendar year and the denominator of which is
the GDP implicit price deflator for the calendar year 2003.
``(B) GDP Implicit price deflator.--The term ``GDP implicit
price deflator'' means the most recent revision of the
implicit price deflator for the gross domestic product as
computed by the Department of Commerce before March 15 of the
calendar year.
``(8) Noncompliance with pollution laws.--For purposes of
this section, a unit which is not in compliance with the
applicable State and Federal pollution prevention, control,
and permit requirements for any period of time shall not be
considered to be a qualifying clean coal technology unit
during such period.
``(e) National Limitation on the Aggregate Capability of
Qualifying Clean Coal Technology Units.--
``(1) In general.--For purposes of subsection (d)(1)(E),
the national megawatt capacity limitation for qualifying
clean coal technology units is 4,000 megawatts.
``(2) Allocation of limitation.--The Secretary shall
allocate the national megawatt capacity limitation for
qualifying clean coal technology units in such manner as the
Secretary may prescribe under the regulations under paragraph
(3) provided, however, that such allocation shall not exceed
300,000 kilowatts per qualifying clean coal technology unit.
``(3) Regulations.--Not later than 6 months after the date
of the enactment of this section, the Secretary shall
prescribe such regulations as may be necessary or
appropriate--
``(A) to carry out the purposes of this subsection,
``(B) to limit the capacity of any qualifying clean coal
technology unit to which this section applies so that the
combined megawatt capacity allocated to all such units under
this subsection when all such units are placed in service
during the 10-year period described in subsection (d)(1)(C),
does not exceed 4,000 megawatts,
``(C) to provide a certification process under which the
Secretary, in consultation with the Secretary of Energy,
shall approve and allocate the national megawatt capacity
limitation--
``(i) to encourage the units with the highest thermal
efficiencies, when adjusted for the heat content of the
design coal and site reference conditions described in
subsection (d)(4)(C), and superior environmental performance
compared to other proposals, be placed in service as soon as
possible,
``(ii) to allocate capacity to taxpayers that have a
definite and credible plan for placing into commercial
operation a qualifying clean coal technology unit,
including--
``(I) a site,
``(II) contractual commitments for procurement and
construction or, in the case of regulated utilities, the
agreement of the State utility commission,
``(III) filings for all necessary preconstruction
approvals,
``(IV) a demonstrated record of having successfully
completed comparable projects on a timely basis, and
``(V) such other factors that the Secretary determines are
appropriate,
``(D) to allocate the national megawatt capacity limitation
to a portion of the capacity of a qualifying clean coal
technology unit if the Secretary determines that such an
allocation would maximize the amount of efficient production
encouraged with the available tax credits,
``(E) to set progress requirements and conditional
approvals so that capacity allocations for clean coal
technology units that become unlikely to meet the necessary
conditions for qualifying can be reallocated by the
[[Page S3415]]
Secretary to other clean coal technology units, and
``(F) to provide taxpayers with opportunities to correct
administrative errors and omissions with respect to
allocations and record keeping within a reasonable period
after discovery, taking into account the availability of
regulations and other administrative guidance from the
Secretary.''.
(b) Credit Treated as Business Credit.--Section 38(b) of
the Internal Revenue Code of 1986, as amended by this Act, is
amended by striking ``plus'' at the end of paragraph (18), by
striking the period at the end of paragraph (19) and
inserting ``, plus'', and by adding at the end the following
new paragraph:
``(20) the qualifying clean coal technology production
credit determined under section 45I(a).''.
(c) Transitional Rule.--Section 39(d) of the Internal
Revenue Code of 1986 (relating to transitional rules), as
amended by this Act, is amended by adding at the end the
following new paragraph:
``(16) No carryback of section 45I credit before effective
date.--No portion of the unused business credit for any
taxable year which is attributable to the qualifying clean
coal technology production credit determined under section
45I may be carried back to a taxable year ending on or before
the date of the enactment of section 45I.''.
(d) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 of the Internal
Revenue Code of 1986, as amended by this Act, is amended by
adding at the end the following new item:
``Sec. 45I. Credit for production from a qualifying clean coal
technology unit.''.
(e) Effective Date.--The amendments made by this section
shall apply to production after the date of the enactment of
this act, in taxable years ending after such date.
Subtitle B--Incentives for Early Commercial Applications of Advanced
Clean Coal Technologies
SEC. 302. CREDIT FOR INVESTMENT IN QUALIFYING ADVANCED CLEAN
COAL TECHNOLOGY.
(a) Allowance of Qualifying Advanced Clean Coal Technology
Unit Credit.--Section 46 of the Internal Revenue Code of 1986
(relating to amount of credit) is amended by striking ``and''
at the end of paragraph (2), by striking the period at the
end of paragraph (3) and inserting ``, and'', and by adding
at the end the following new paragraph:
``(4) the qualifying advanced clean coal technology unit
credit.''.
(b) Amount of Qualifying Advanced Clean Coal Technology
Unit Credit.--Subpart E of part IV of subchapter A of chapter
1 of the Internal Revenue Code of 1986 (relating to rules for
computing investment credit) is amended by inserting after
section 48 the following new section:
``SEC. 48A. QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY UNIT
CREDIT.
``(a) In General.--For purposes of section 46, the
qualifying advanced clean coal technology unit credit for any
taxable year is an amount equal to 10 percent of the
applicable percentage of the qualified investment in a
qualifying advanced clean coal technology unit for such
taxable year.
``(b) Qualifying Advanced Clean Coal Technology Unit.--
``(1) In general.--For purposes of subsection (a), the term
``q1ualifying advanced clean coal technology unit'' means an
advanced clean coal technology unit of the taxpayer--
``(A)(i)(I) in the case of a unit first placed in service
after the date of the enactment of this section, the original
use of which commences with the taxpayer, or
``(II) in the case of the retrofitting or repowering of a
unit first placed in service before such date of enactment,
the retrofitting or repowering of which is completed by the
taxpayer after such date, or
``(ii) which is acquired through purchase (as defined by
section 179(d)(2)),
``(B) which is depreciable under section 167,
``(C) which has a useful life of not less than 4 years,
``(D) which is located in the United States,
``(E) which is not receiving nor is scheduled to receive
funding under the Clean Coal Technology Program, the Power
Plant Improvement Initiative, or the Clean Coal Power
Initiative administered by the Secretary of Energy,
``(F) which is not a qualifying clean coal technology unit,
and
``(G) which receives an allocation of a portion of the
national megawatt capacity limitation under subsection (f).
``(2) Special rule for sale-leasebacks.--For purposes of
subparagraph (A) of paragraph (1), in the case of a unit
which--
``(A) is originally placed in service by a person, and
``(B) is sold and leased back by such person, or is leased
to such person, within 3 months after the date such unit was
originally placed in service, for a period of not less than
12 years, such unit shall be treated as originally placed in
service not earlier than the date on which such unit is used
under the leaseback (or lease) referred to in subparagraph
(B). The preceding sentence shall not apply to any property
if the lessee and lessor of such property make an
election under this sentence. Such as election, once made,
may be revoked only with the consent of the Secretary.
``(3) Noncompliance with pollution laws.--For purposes of
this subsection, a unit which is not in compliance with the
applicable State and Federal pollution prevention, control,
and permit requirements for any period of time shall not be
considered to be a qualifying advanced clean coal technology
unit during such period.
``(c) Applicable Percentage.--For purposes of this section,
with respect to any qualifying advanced clean coal technology
unit, the applicable percentage is the percentage equal to
the ratio which the portion of the national megawatt capacity
limitation allocated to the taxpayer with respect to such
unit under subsection (f) bears to the total megawatt
capacity of such unit.
``(d) Advanced Clean Coal Technology Unit.--For purposes of
this section--
``(1) In general.--The term ``advanced clean coal
technology unit'' means a new, retrofit, or repowering unit
of the taxpayer which--
``(A) is--
``(i) an eligible advanced pulverized coal or atmospheric
fluidized bed combustion technology unit,
``(ii) an eligible pressurized fluidized bed combustion
technology unit,
``(iii) an eligible integrated gasification combined cycle
technology unit, or
``(iv) an eligible other technology unit, and
``(B) meets the carbon emission rate requirements of
paragraph (6).
``(2) Eligible advanced pulverized coal or atmospheric
fluidized bed combustion technology unit.--The term
``eligible advanced pulverized coal or atmospheric fluidized
bed combustion technology unit'' means a clean coal
technology unit using advanced pulverized coal or atmospheric
fluidized bed combustion technology which--
``(A) is placed in service after the date of the enactment
of this section and before January 1, 2015, and
``(B) has a design net heat of not more than 8,500 (8,900
in the case of units placed in service before 2011).
``(3) Eligible pressurized fluidized bed combustion
technology unit.--The term ``eligible pressurized fluidized
bed combustion technology unit'' means a clean coal
technology unit using pressurized fluidized bed combustion
technology which--
``(A) is placed in service after the date of the enactment
of this section and before January 1, 2019, and
``(B) has a design net heat of not more than 7,720 (8,900
in the case of units placed in service before 2011, and 8,500
in the case of units placed in service after 2010 and before
2015).
``(4) Eligible integrated gasification combined cycle
technology unit.--The term ``eligible integrated gasification
combined cycle technology unit'' means a clean coal
technology unit using integrated gasification combined cycle
technology, with or without fuel or chemical co-production,
which--
``(A) is placed in service after the date of the enactment
of this section and before January 1, 2019.
``(B) has a design net heat rate of not more than 7,720
(8,900 in the case of units placed in service before 2011,
and 8,500 in the case of units placed in service after 2010
and before 2015) and
``(C) has a net thermal efficiency (HHV) using coal with
fuel or chemical co-production of not less than 44.2 percent
(38.4 percent in the case of units placed in service before
2011, and 40.2 percent in the case of units placed in service
after 2010 and before 2015).
``(5) Eligible other technology unit.--The term ``eligible
other technology unit'' means a clean coal technology unit
using any other technology for the production of electricity
which is placed in service after the date of the enactment of
this section and before January 1, 2019.
``(6) Carbon emission rate requirements--
``A) In general--Except as provided in subparagraph (B), a
unit meets the requirements of this paragraph if--
``(i) in the case of a unit design coal with a heat content
of not more than 9,000 Btu per pound, the carbon emission
rate is less than 0.60 pound of carbon per kilowatt hour, and
``(ii) in the case of a unit design coal with a heat
content of more than 9,000 Btu per pound, the carbon emission
rate is less than 0.54 pound of carbon per kilowatt hour.
``(B) Eligible other technology unit.--In the case of an
eligible other technology unit, subparagraph (A) shall be
applied by substituting ``0.51'' and ``0.459'' for ``0.60''
and ``0.54'', respectively.
``(e) General Definitions.--Any term used in this section
which is also used in section 45I shall have the meaning
given such term in section 45I.
``(f) National Limitation on the Aggregate Capacity of
Advanced Clean Coal Technology Units--
``(1) In general.--For purposes of subsection (b)(1)(G),
the national megawatt capacity limitation is--
``(A) for qualifying advanced clean coal technology units
using advanced pulverized coal or atmospheric fluidized bed
combustion technology, not more than 1,000 megawatts (not
more than 500 megawatts in the case of units placed in
service before 2011),
``(B) for such units using pressurized fluidized bed
combustion technology, not more than 500 megawatts (not more
than 250 megawatts in the case of units placed in service
before 2011),
``(C) for such units using integrated gasification combined
cycle technology, with or without fuel or chemical co-
production, not more than 2,000 megawatts (not more than 750
megawatts, or not more than one project with a design net
heat rate greater than 8900 Btu per kilowatt hour, whichever
is less, in the case of units placed in service before 2011),
and
[[Page S3416]]
``(D) for such units using other technology for the
production of electricity, not more than 500 megawatts (not
more than 250 megawatts in the case of units placed in
service before 2011).
``(2) Allocation of limitation.--The Secretary shall
allocate the national megawatt capacity limitation for
qualifying advanced clean coal technology units in such
manner as the Secretary may prescribe under the regulations
under paragraph (3).
``(3) Regulations.--Not later than 6 months after the date
of the enactment of this section, the Secretary shall
prescribe such regulations as may be necessary or
appropriate--
``(A) to carry out the purposes of this subsection and
section 45J,
``(B) to limit the capacity of any qualifying advanced
clean coal technology unit to which this section applies so
that the combined megawatt capacity of all such units to
which this section applies does not exceed 4,000 megawatts.
``(C) to provide a certification process described in
section 45I(e)(3)(C)(i)-(ii),
``(D) to carry out the purposes described in subparagraphs
(D), (E), and (F) of section 45I(e)(3), and
``(E) to reallocate capacity which is not allocated to any
technology described in subparagraphs (A) through (D) of
paragraph (1) because an insufficient number of qualifying
units request an allocation for such technology, to another
technology described in such subparagraphs in order to
maximize the amount of energy efficient production
encouraged with the available tax credits.
``(4) Selection criteria.--For purposes of paragraph
(3)(C), the selection criteria for allocating the national
megawatt capacity limitation to qualifying advanced clean
coal technology units--
``(A) shall be established by the Secretary of Energy as
part of a competitive solicitation,
``(B) shall include primary criteria of minimum design net
heat rate, maximum design thermal efficiency, environmental
performance, and lowest cost to the Government,
``(C) shall include criteria for the selection of a unit(s)
that achieves a thermal efficiency of lower than 8,900 Btu
per kilowatt hour in that instance where two or more projects
are otherwise eligible for the credit provided by this
section, and have applied to the Secretary for selection at
or near the same period in time, and
``(D) shall include supplemental criteria as determined
appropriate by the Secretary of Energy.
``(g) Qualified Investment.--For purposes of subsection
(a), the term ``qualified investment'' means, with respect to
any taxable year, the basis of a qualifying advanced clean
coal technology unit placed in service by the taxpayer during
such taxable year (in the case of a unit described in
subsection (b)(1)(A)(i)(II), only that portion of the basis
of such unit which is properly attributable to the
retrofitting or repowering of such unit).
``(h) Qualified Progress Expenditures--
``(1) Increase in qualified investment.--In the case of a
taxpayer who has made an election under paragraph (5), the
amount of the qualified investment of such taxpayer for the
taxable year (determined under subsection (g) without regard
to this subsection) shall be increased by an amount equal to
the aggregate of each qualified progress expenditure for the
taxable year with respect to progress expenditure property.
``(2) Progress expenditure property defined.--For purposes
of this subsection, the term ``progress expenditure
property'' means any property being constructed by or for the
taxpayer and which it is reasonable to believe will qualify
as a qualifying advanced clean coal technology unit which is
being constructed by or for the taxpayer when it is placed in
service.
``(3) Qualified progress expenditures defined.--For
purposes of this subsection--
``(A) Self-constructed property.--In the case of any self-
constructed property, the term ``qualified progress
expenditures'' means the amount which, for purposes of this
subpart, is properly chargeable (during such taxable year) to
capital account with respect to such property.
``(B) Nonself-constructed property.--In the case of
nonself-constructed property, the term ``qualified progress
expenditures'' means the amount paid during the taxable year
to another person for the construction of such property.
``(4) Other definitions.--For purposes of this subsection--
``(A) Self-constructed property.--The term ``self-
constructed property'' means property for which it is
reasonable to believe that more than half of the construction
expenditures will be made directly by the taxpayer.
``(B) Nonself-constructed property.--The term ``nonself-
constructed property'' means property which is not self-
constructed property.
``(C) Construction, etc.--The term ``construction''
includes reconstruction and erection, and the term
``constructed'' includes reconstructed and erected.
``(D) Only construction of qualifying advanced clean coal
technology unit to be taken into account.--Construction shall
be taken into account only if, for purposes of this subpart,
expenditures therefor are properly chargeable to capital
account with respect to the property.
``(5) Election.--An election under this subsection may be
made at such time and in such manner as the Secretary may by
regulations prescribe. Such an election shall apply to the
taxable year for which made and to all subsequent taxable
years. Such an election, once made, may not be revoked except
with the consent of the Secretary.
``(i) Coordination With Other Credits.--This section shall
not apply to any property with respect to which the
rehabilitation credit under section 47 or the energy credit
under section 48 is allowed unless the taxpayer elects to
waive the application of such credit to such property.''.
(c) Recapture.--Section 50(a) of the Internal Revenue Code
of 1986 (relating to other special rules) is amended by
adding at the end the following new paragraph:
``(6) Special rules relating to qualifying advanced clean
coal technology unit.--For purposes of applying this
subsection in the case of any credit allowable by reason of
section 48A, the following shall apply:
``(A) General rule.--In lieu of the amount of the increase
in tax under paragraph (1), the increase in tax shall be an
amount equal to the investment tax credit allowed under
section 38 for all prior taxable years with respect to a
qualifying advanced clean coal technology unit (as defined by
section 48A(b)(1)) multiplied by a fraction whose numerator
is the number of years remaining to fully depreciate under
this title the qualifying advanced clean coal technology unit
disposed of, and whose denominator is the total number of
years over which such unit would otherwise have been subject
to depreciation. For purposes of the preceding sentence, the
year of disposition of the qualifying advanced clean coal
technology unit shall be treated as a year of remaining
depreciation.
``(B) Property ceases to qualify for progress
expenditures.--Rules similar to the rules of paragraph (2)
shall apply in the case of qualified progress expenditures
for a qualifying advanced clean coal technology unit under
section 48A, except that the amount of the increase in tax
under subparagraph (A) of this paragraph shall be substituted
for the amount described in such paragraph (2).
``(C) Application of paragraph.--This paragraph shall be
applied separately with respect to the credit allowed under
section 38 regarding a qualifying advanced clean coal
technology unit.''.
(d) Transitional Rule.--Section 39(d) of the Internal
Revenue Code of 1986 (relating to transitional rules), as
amended by this Act, is amended by adding at the end the
following new paragraph:
``(17) No carryback of section 48a credit before effective
date.--No portion of the unused business credit for any
taxable year which is attributable to the qualifying advanced
clean coal technology unit credit determined under section
48A may be carried back to a taxable year ending on or before
the date of the enactment of section 48A.''.
(e) Technical Amendments--
(1) Section 49(a)(1)(C) of the Internal Revenue Code of
1986 is amended by striking ``and'' at the end of clause
(ii), by striking the period at the end of clause (iii) and
inserting ``, and'', and by adding at the end the following
new clause:
``(iv) the portion of the basis of any qualifying advanced
clean coal technology unit attributable to any qualified
investment (as defined by section 48A(g)).''.
(2) Section 50(a)(4) of the Internal Revenue Code of 1986
is amended by striking ``and (2)'' and inserting ``(2), and
(6)''.
(3) Section 50(c) of the Internal Revenue Code of 1986 is
amended by adding at the end the following new paragraph:
``(6) Nonapplication.--Paragraphs (1) and (2) shall not
apply to any qualifying advanced clean coal technology unit
credit under section 48A.''.
(4) The table of sections for subpart E of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to
section 48 the following new item:
``Sec. 48A. Qualifying advanced clean coal technology unit credit.''.
(f) Effective Date.--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).
SEC. 2212. CREDIT FOR PRODUCTION FROM A QUALIFYING ADVANCED
CLEAN COAL TECHNOLOGY UNIT.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to
business related credits), as amended by this Act, is amended
by adding at the end the following new section:
``SEC. 45J. CREDIT FOR PRODUCTION FROM A QUALIFYING ADVANCED
CLEAN COAL TECHNOLOGY UNIT.
``(a) General Rule.--For purposes of section 38, the
qualifying advanced clean coal technology production credit
of any taxpayer for any taxable year is equal to--
``(1) the applicable amount of advanced clean coal
technology production credit, multiplied by
``(2) the applicable percentage (as determined under
section 48A(c)) of the sum of--
``(A) the kilowatt hours of electricity, plus
``(B) each 3,413 Btu of fuels or chemicals,
produced by the taxpayer during such taxable year at a
qualifying advanced clean coal technology unit during the 10-
year period beginning on the date the unit was originally
[[Page S3417]]
placed in service (or returned to service after becoming a
qualifying advanced clean coal technology unit).
``(b) Applicable Amount.--For purposes of this section, the
applicable amount of advanced clean coal technology
production credit with respect to production from a
qualifying advanced clean coal technology unit shall be
determined as follows:
``(1) Where the qualifying advanced clean coal technology
unit is producing electricity only:
``(A) In the case of a unit originally placed in service
before 2011, if--
------------------------------------------------------------------------
The applicable
amount is:
---------------------
``The design net heat rate is: For 1st 5 For 2d 5
years of years of
such such
service service
------------------------------------------------------------------------
Not more than 8,500............................... $.0060 $.0038
More than 8,500 but not more than 8,750........... $.0025 $.0010
More than 8,750 but less than 8,900............... $.0010 $.0010.
------------------------------------------------------------------------
``(B) In the case of a unit originally placed in service
after 2010 and before 2015, if--
------------------------------------------------------------------------
The applicable
amount is:
---------------------
``The design net heat rate is: For 1st 5 For 2d 5
years of years of
such such
service service
------------------------------------------------------------------------
Not more than 7,770............................... $.0105 $.0090
More than 7,770 but not more than 8,125........... $.0085 $.0068
More than 8,125 but less than 8,350............... $.0075 $.0055.
------------------------------------------------------------------------
``(C) In the case of a unit originally placed in service
after 2014 and before 2019, if--
------------------------------------------------------------------------
The applicable
amount is:
---------------------
``The design net heat rate is: For 1st 5 For 2d 5
years of years of
such such
service service
------------------------------------------------------------------------
Not more than 7,380............................... $.0140 $.0115
More than 7,380 but not more than 7,720........... $.0120 $.0090.
------------------------------------------------------------------------
``(2) Where the qualifying advanced clean coal technology
unit is producing fuel or chemicals:
``(A) In the case of a unit originally placed in service
before 2011, if--
------------------------------------------------------------------------
The applicable
amount is:
---------------------
``The unit design net thermal efficiency (HHV) is: For 1st 5 For 2d 5
years of years of
such such
service service
------------------------------------------------------------------------
Not less than 40.6 percent........................ $.0060 $.0038
Less than 40.6 but not less than 40 percent....... $.0025 $.0010
Less than 40 but not less than 38.4 percent....... $.0010 $.0010.
------------------------------------------------------------------------
``(B) In the case of a nit originally placed in service
after 2010 and before 2015, if--
------------------------------------------------------------------------
The applicable
amount is:
---------------------
For the
``The unit design net thermal efficiency (HHV) is: 1st 5 For 2d 5
years of years of
such such
service service
------------------------------------------------------------------------
Not less than 43.6 percent........................ $.0105 $.0090
Less than 43.6 but not less than 42 percent....... $.0085 $.0068
Less than 42 but not less than 40.2 percent....... $.0075 $.0055.
------------------------------------------------------------------------
``(C) In the case of a unit originally placed in service
after 2014 and before 2019, if--
------------------------------------------------------------------------
The applicable
amount is:
---------------------
``The unit design net thermal efficiency (HHV) is: For 1st 5 For 2d 5
years of years of
such such
service service
------------------------------------------------------------------------
Not less than 44.2 percent........................ $.0140 $.0115
Less than 44.2 but not less than 43.9 percent..... $.0120 $.0090.
------------------------------------------------------------------------
``(c) A qualifying clean coal technology facility
originally placed in service before 2009 that has a design
heat rate that meets a lower heat rate test in paragraphs
(1)(A)(B) and (C) and (2) (A)(B) and (C) above or a
qualifying clean coal technology facility originally placed
in service before 2013 that has a design heat rate that meets
a lower heat rate test in paragraphs (1)(C), or (2)(C) above
shall receive the highest applicable amount with respect to a
production tax credit for which it qualifies.
``(d) Inflation Adjustment.--For calendar years after 2003,
each amount in paragraphs (1) and (2) of subsection (b) shall
be adjusted by multiplying such amount by the inflation
adjustment factor for the calendar year in which the amount
is applied. If any amount as increased under the preceding
sentence is not a multiple of 0.01 cent, such amount shall be
rounded to the nearest multiple of 0.01 cent.
``(e) Definitions and Special Rules.--For purposes of this
section--
``(1) In general.--Any term used in this section which is
also used in section 451 or 48A of the Internal Revenue Code
of 1986 shall have the meaning given such term in such
section.
``(2) Applicable rules.--The rules of paragraphs (3), (4),
and (5) of section 45(d) of the Internal Revenue Code of 1986
shall apply.''.
(b) Credit Treated as Business Credit.--Section 38(b) of
the Internal Revenue Code of 1986, as amended by this Act, is
amended by striking ``plus'' at the end of paragraph (19), by
striking the period at the end of paragraph (2) and inserting
``, plus'', and by adding at the end the following new
paragraph:
``(21) the qualifying advanced clean coal technology
production credit determined under section 45J(a).''.
(c) Transitional Rule.--Section 39(d) of the Internal
Revenue Code of 1986 (relating to transitional rules), as
amended by this Act, is amended by adding at the end the
following new paragraph:
``(18) No carryback of section 45j credit before effective
date.--No portion of the unused business credit for any
taxable year which is attributable to the qualifying advanced
clean coal technology production credit determined under
section 45J may be carried back to a taxable year ending on
or before the date of the enactment of section 45J.''.
(d) Denial of Double Benefit.--Section 29(d) of the
Internal Revenue Code of 1986 (relating to other definitions
and special rules) is amended by adding at the end the
following paragraph:
``(9) Denial of double benefit.--This section shall not
apply with respect to any qualified fuel the production of
which may be taken into account for purposes of determining
the credit under section 45J.''.
(e) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 of the Internal
Revenue Code of 1986, as amended by this Act, is amended by
adding at the end the following new item.
``Sec. 45J. Credit for production from a qualifying advanced clean coal
technology unit.''.
(f) Effective Date.--The amendments made by this section
shall apply to production after the date of the enactment of
this Act, in taxable years ending after such date.
Subtitle C--Treatment of Persons Not Able To Use Entire Credit
SEC. 2221. TREATMENT OF PERSONS NOT ABLE TO USE ENTIRE
CREDIT.
(a) In General.--Section 45I of the Internal Revenue Code
of 1986, as added by this Act, is amended by adding at the
end the following new subsection:
``(f) Treatment of Persons Not Able to Use Entire Credit--
``(1) Allowance of Credits--
``(A) In general.--Any credit allowable under this section,
section 45J, or section 48A with respect to a facility owned
by a person described in subparagraph (B) may be transferred
or used as provided in this subsection, and the determination
as to whether the credit is allowable shall be made without
regard to the tax-exempt status of the person.
``(B) Persons described.--A person is described in this
subparagraph if the person is--
``(i) an organization described in section 501(c)(12)(C)
and exempt from tax under section 501(a),
``(ii) an organization described in section 1381(a)(2)(C),
``(iii) a public utility (as defined in section
136(c)(2)(B)),
``(iv) any State or political subdivision thereof, the
District of Columbia, or any agency or instrumentality of any
of the foregoing,
``(v) any Indian tribal government (within the meaning of
section 7871) or any agency or instrumentality thereof, or
``(vi) the Tennessee Valley Authority.
``(2) Transfer of credit--
``(A) In general.--A person described in clause (i), (ii),
(iii), (iv), or (v) of paragraph (1)(B) may transfer any
credit to which paragraph (1)(A) applies through an
assignment to any other person not described in paragraph
(1)(B). Such transfer may be revoked only with the consent of
the Secretary.
``(B) Regulations.--The Secretary shall prescribe such
regulations as necessary to insure that any credit described
in subparagraph (A) is claimed once and not reassigned by
such other person.
``(C) Transfer proceeds treated as arising from essential
government function.--Any proceeds derived by a person
described in clause (iii), (iv), or (v) of paragraph (1)(B)
from the transfer of any credit under subparagraph (A) shall
be treated as arising from the exercise of an essential
government function.
``(3) Use by tva.--
``(A) In general.--Notwithstanding any other provision of
law, in the case of a person described in paragraph
(1)(B)(vi), any credit to which paragraph (1)(A) applies may
be applied as a credit against the payments required to be
made in any fiscal year under section 15d(e) of the Tennessee
Valley Authority Act of 1933 (16 U.S.C. 831n-4(e)) as an
annual return on the appropriations investment and an annual
repayment sum.
``(B) Treatment of credits.--The aggregate amount of
credits described in paragraph (1)(A) with respect to such
person shall be treated in the same manner and to the same
extent as if such credits were a payment in cash and shall be
applied first against the annual return on the appropriations
investment.
``(C) Credit carryover.--With respect to any fiscal year,
if the aggregate amount of credits described in paragraph
(1)(A) with respect to such person exceeds the aggregate
amount of payment obligations described in subparagraph (A),
the excess amount shall remain available for application as
credits against the amounts of such payment obligations in
succeeding fiscal years in the same manner as described in
this paragraph.
``(5) Credit not income.--Any transfer under paragraph (2)
or use under paragraph (3) of any credit to which paragraph
(1)(A) applies shall not be treated as income for purposes of
section 501(c)(12).
``(6) Treatment of unrelated persons.--For purposes of this
subsection, sales among and between persons described in
clauses (i),
[[Page S3418]]
(ii), (iii), and (v) of paragraph (1)(A) shall be treated as
sales between unrelated parties.''.
``(b) Effective Date.--The amendment made by this section
shall apply to production after the date of the enactment of
this Act, in taxable years ending after such date.
______
By Mrs. HUTCHISON:
S. 583. A bill to require the provision of information to parents and
adults concerning bacterial meningitis and the availability of a
vaccination with respect to such disease; to the Committee on Health
Education, Labor, and Pensions.
Mrs. HUTCHISON. Mr. President, I am pleased to be joined by Senators
Voinovich, DeWine, Mikulski and Warner to offer health legislation that
will bring great benefits to many of our Nation's families.
Bacterial meningitis affects 3,000 people across the United States
each year. Approximately 10 percent of patients with bacterial
meningitis die despite receiving antibiotics early in the course of the
disease. Meningitis occurs most frequently in infants and young adults
living in dormitory settings. The disease can result in permanent brain
damage, hearing loss, learning disability, limb amputation, kidney
failure or death.
In 2001, Lydia Evans entered her sophomore year at North Texas
University as a healthy 20-year-old. Now she's lost both of her legs,
parts of seven fingers and endured 15 surgeries and intensive physical
therapy. She is a victim of a terrible, yet little-known disease called
meningococcal meningitis.
Carolyn Waghorne of Dallas contacted me after the tragic death of her
son, Carter, who contracted meningitis at boarding school in 1998. Mrs.
Waghorne has led the battle in our State to create awareness about the
dangers of the illness. After hearing her story, I knew we needed to
help educate all Americans about this devastating--yet preventable--
disease.
My bill would require the Secretary of Health and Human Services, in
consultation with the Director of the Centers of Disease Control, CDC,
to develop and make information available about bacterial meningitis.
In addition, it would provide information about the availability and
effectiveness of bacterial meningitis vaccinations for children and
adults.
The information would be distributed at institutions, including child
care centers, schools, universities, boarding schools, summer camps,
detention facilities, and other entities that provide housing in a
dorm-like setting.
Meningitis is spread through close contact such as coughing or
sneezing and direct contact with persons infected with meningitis. The
bacteria cannot live outside the body for very long, so the disease is
not as easily transmitted as a cold virus. Many healthy people carry
the bacteria, but if a person has a suppressed immune system they may
contract the disease. A spinal tap procedure enables doctors to
diagnose meningitis, and if the disease is discovered, it is treated
with antibiotics.
The disease can result in permanent brain damage, hearing loss,
learning disability, limb amputation, kidney failure or death.
The CDC reports that two-thirds of cases on college campuses could
have been prevented with a vaccine. In fact, the Advisory Commission on
Immunization Practices, part of the CDC, recommends what this bill
provides.
I commend the Senators for their support and hope other Senators will
join us in this effort to prevent the tragedies that befell Lydia Evans
and Carolyn Waghorne as well as thousands of families every year.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 583
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 ``Meningitis Immunization
Awareness Act''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Approximately 3,000 cases of meningococcal disease
occur each year in the United States. Approximately 10 to 13
percent of patients with such disease die despite receiving
antibiotics early in the disease. Of those individuals who
survive, an additional 10 percent have severe after-effects
of the disease, including mental retardation, hearing loss,
and loss of limbs.
(2) There is a vaccine that protects individuals against
some types of bacterium Neisseria meningitidis (also known as
meningococcus), an important cause of bacterial meningitis
and sepsis in children and young adults. A single dose of the
vaccine is recommended, and vaccination will decrease the
risk of the disease caused by Neisseria meningitidis.
(3) Currently, the only group of individuals that is
vaccinated against bacterial meningitis is the members of the
armed forces. The only other group of individuals that have
been encouraged to get the vaccine are those individuals
attending college.
SEC. 3. PROVISION OF INFORMATION.
(a) Development of Information.--The Secretary of Health
and Human Services, in consultation with the Director of the
Centers for Disease Control and Prevention, shall develop and
make available to entities described in subsection (b)
information concerning bacterial meningitis and the
availability and effectiveness of vaccinations for
individuals 2 years of age or older with respect to such
disease.
(b) Entities.--An entity is described in this subsection if
the entity--
(1) is--
(A) a child care center or provider that is licensed or
certified under an appropriate State law;
(B) an elementary or secondary school (as such terms are
defined in the Elementary and Secondary School Act of 1965
(20 U.S.C. 6301 et seq.);
(C) a college or university;
(D) a boarding school or summer camp;
(E) a prison or other detention facility; or
(F) any other entity that provides for the housing of
individuals in a dorm-like setting; and
(2) any other entity determined appropriate by the
Secretary of Health and Human Services.
______
By Ms. LANDRIEU:
S. 584. A bill to direct the Consumer Product Safety Commission to
promulgate a rule that requires manufacturers of certain consumer
products to establish and maintain a system for providing notification
of recalls of such products to consumers who first purchase such a
product; to the Committee on Commerce, Science, and Transportation.
Ms. LANDRIEU. Mr. President, today I am happy to join my colleagues
in the House of Representatives, Congressman Moran and Congressman
McGovern, in re-introducing the Product Safety Notification and Recall
Effectiveness Act. As my colleagues may recall, this legislation makes
it easier for parents to learn when a product they bought may harm
their children, so that they might take steps to return the item or
have it repaired.
On January 6 of this year, the National Highway Traffic Safety
Administration released a study that contained a lot of good news for
parents. In its study, NHTSA found that its child safety seat
registration program has been incredibly successful. NHTSA implemented
this program in March of 1993, and the information that is starting to
come in shows that nine times more child safety seats are now
registered than before the program was launched. In fact, in 1993 only
3 percent of seats were registered; now 27 percent are. And this is
significant, because this has directly led to more effective recalls of
defective child seats--the recall repair rate has increased by more
than half since 1993, from 13.8 percent to 21.5 percent.
The reason I mention this study to my colleagues is because NHTSA's
program is very much like the one that this bill would establish. This
legislation would require the Consumer Product Safety Commission to
issue a rule requiring manufacturers to establish and maintain a system
for notifying consumers of the recall of certain products that may
cause harm to children. The database could be assembled through the use
of shortened product registration cards, Internet registration, or
other alternate means of encouraging consumers to provide vital contact
information.
There is a very clear reason why such a database is necessary. As we
all know, these products come with registration cards. The intent of
these cards should be that customers will fill them out and send them
in, which gives the companies a way to contact purchasers.
Unfortunately, many times consumers do not return these cards, and
there is a good reason behind this. These cards sometimes contain 40 to
50, or even more, different questions or boxes to fill out. They ask
about marital status, salary information, and about what kind of
products a person buys. Either a person does not wish to
[[Page S3419]]
reveal that much personal information, or they simply do not have time
to fill out the card. In fact, the intent seems to be more to get
personal marketing information from consumers than anything else. That
is why its such a good idea to shorten the card and just ask for the
basic information, like a customer's name, address, phone number, and
e-mail address. Not only have studies done by companies like Mattel and
BrandStamp shown that these methods increase the number of consumers
who respond, NHTSA--working on almost ten years of real data--has
clearly proven a dramatic increase in registration and, as a result, in
the number of products successfully recalled.
But a card is not the only way to compile this information. For
instance, many companies are now using online registration, where
customers can log on to their website and quickly enter the
information. For Americans with Internet connections, this is often
much less of a hassle than filling out a card, attaching a stamp, and
mailing it in. It's quick and easy. And this legislation allows for the
use of alternate methods such as this in compiling this database.
I am sure that some of my colleagues might be concerned about the
cost of setting up such a program. I say to my colleagues that I also
have no desire to pass along more costs to the companies that make
these products and, ultimately, to the consumer. However, let me again
point to the NHTSA study. The indirect cost of consumers for the car
seat program is 43 cents per seat sold. Forty-three cents. I do not
know of a single parent who would not pay an extra forty-three cents to
ensure the safety of their child. But I would say to my colleagues,
don't take my word for it--ask the thousands of parents who have
returned recalled car seats since 1993. I'm sure they would tell you
that was the best 43 cents they had ever spent.
The need for this legislation is only highlighted by the CPSC's
refusal to consider such a rule last Friday, despite intense efforts by
consumer groups like the Consumer Federation of America and SAFE to
highlight the importance of this change to the way recalls work. I
world urge my colleagues to join me in sponsoring this important bill,
and I hope that we can pass this legislation into law as soon as
possible.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 584
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 ``Product Safety Notification
and Recall Effectiveness Act of 2003''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds the following:
(1) The Consumer Product Safety Commission conducts
approximately 300 recalls of hazardous, dangerous, and
defective consumer products each year.
(2) In developing comprehensive corrective action plans
with recalling companies, the Consumer Product Safety
Commission staff greatly relies upon the media and retailers
to alert consumers to the dangers of unsafe consumer
products, because the manufacturers do not generally possess
contact information regarding the purchasing consumers. Based
upon information received from companies maintaining customer
registration lists, such contact information is known for
generally less than 7 percent of the total consumer products
produced and distributed.
(3) The Consumer Product Safety Commission staff has found
that most consumers do not return purchaser identification
cards because of requests for marketing and personal
information on the cards, and the likelihood of receiving
unsolicited marketing materials.
(4) The Consumer Product Safety Commission staff has
conducted research demonstrating that direct consumer contact
is one of the most effective ways of motivating consumer
response to a consumer product recall.
(5) Companies that maintain consumer product purchase data,
such as product registration cards, warranty cards, and
rebate cards, are able to effectively notify consumers of a
consumer product recall.
(6) The Consumer Product Safety Commission staff has found
that a consumer product safety owner card, without marketing
questions or requests for personal information, that
accompanied products such as small household appliances and
juvenile products would increase consumer participation and
information necessary for direct notification in consumer
product recalls.
(7) The National Highway Traffic Safety Administration has,
since March 1993, required similar simplified, marketing-free
product registration cards on child safety seats used in
motor vehicles. The National Highway Traffic Safety
Administration has found this requirement has increased
recall compliance rates.
(b) Purpose.--The purpose of this Act is to reduce the
number of deaths and injuries from defective and hazardous
consumer products through improved recall effectiveness, by--
(1) requiring the Consumer Product Safety Commission to
promulgate a rule to require manufacturers of juvenile
products, small household appliances, and certain other
consumer products, to include a simplified product safety
owner card with those consumer products at the time of
original purchase by consumers, or develop effective
electronic registration of the first purchasers of such
products, to develop a customer database for the purpose of
notifying consumers about recalls of those products; and
(2) encouraging manufacturers, private labelers, retailers,
and others to use creativity and innovation to create and
maintain effective methods of notifying consumers in the
event of a consumer product recall.
SEC. 3. DEFINITIONS.
For purposes of this Act:
(1) Terms defined in consumer product safety act.--The
definitions set forth in section 3 of the Consumer Product
Safety Act (15 U.S.C. 2052) shall apply to this Act.
(2) Covered consumer product.--The term ``covered consumer
product'' means--
(A) a juvenile product;
(B) a small household appliance; and
(C) such other consumer product as the Commission considers
appropriate for achieving the purpose of this Act.
(3) Juvenile product.--The term ``juvenile product''--
(A) means a consumer product intended for use, or that may
be reasonably expected to be used, by children under the age
of 5 years; and
(B) includes, among other items--
(i) full-size cribs and nonfull-size cribs;
(ii) toddler beds;
(iii) high chairs, booster chairs, and hook-on chairs;
(iv) bath seats;
(v) gates and other enclosures for confining a child;
(vi) playpens;
(vii) stationary activity centers;
(viii) strollers;
(ix) walkers;
(x) swings;
(xi) child carriers;
(xii) bassinets and cradles; and
(xiii) children's toys.
(4) Product safety owner card.--The term ``product safety
owner card'' means a standardized product identification card
supplied with a consumer product by the manufacturer of the
product, at the time of original purchase by the first
purchaser of such product for purposes other than resale,
that only requests that the consumer of such product provide
to the manufacturer a minimal level of personal information
needed to enable the manufacturer to contact the consumer in
the event of a recall of the product.
(5) Small household appliance.--The term ``small household
appliance'' means a consumer product that is a toaster,
toaster oven, blender, food processor, coffee maker, or other
similar small appliance as provided for in the rule
promulgated by the Consumer Product Safety Commission.
SEC. 4. RULE REQUIRING SYSTEM TO PROVIDE NOTICE OF RECALLS OF
CERTAIN CONSUMER PRODUCTS.
(a) In General.--The Commission shall promulgate a rule
under section 16(b) of the Consumer Product Safety Act (15
U.S.C. 2065(b)) that requires that the manufacturer of a
covered consumer product shall establish and maintain a
system for providing notification of recalls of such product
to consumers of such product.
(b) Requirement To Create Database.--
(1) In general.--The rule shall require that the system
include use of product safety owner cards, Internet
registration, or an alternative method, to create a database
of information regarding consumers of covered consumer
products, for the sole purpose of notifying such consumers of
recalls of such products.
(2) Use of technology.--Alternative methods specified in
the rule may include use of on-line product registration and
consumer notification, consumer information data bases,
electronic tagging and bar codes, embedded computer chips in
consumer products, or other electronic and design strategies
to notify consumers about product recalls, that the
Commission determines will increase the effectiveness of
recalls of covered consumer products.
(c) Use of Commission Staff Proposal.--In promulgating the
rule, the Commission shall consider the staff draft for an
Advanced Notice of Proposed Rulemaking entitled ``Purchaser
Owner Card Program'', dated June 19, 2001.
(d) Exclusion of Low-Price Items.--The Commission shall
have the authority to exclude certain low-cost items from the
rule for good cause.
(e) Deadlines.--
(1) In general.--The Commission--
(A) shall issue a proposed rule under this section by not
later than 90 days after the date of enactment of this Act;
and
[[Page S3420]]
(B) shall promulgate a final rule under this section by not
later than 270 days after the date of enactment of this Act.
(2) Extension.--The Commission may extend the deadline
described in paragraph (1) if the Commission provides timely
notice to the Committee on Energy and Commerce of the House
of Representatives and the Committee on Commerce, Science,
and Transportation of the Senate.
______
By Mr. NELSON of Florida (for himself, Mr. Lieberman, Mrs.
Murray, Mr. Reid, Mr. Dayton, Mr. Rockefeller, and Mr.
Coleman):
S. 585. A bill to amend title 10, United States Code, to repeal the
requirement for reduction of SBP survivor annuities by dependency and
indemnity compensation; to the Committee on Armed Services.
Mr. NELSON of Florida. Mr. President, I ask unanimous consent that
the text of the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 585
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 ``Military Retiree Survivors
Relief Act of 2003''.
SEC. 2. REPEAL OF REQUIREMENT OF REDUCTION OF SBP SURVIVOR
ANNUITIES BY DEPENDENCY AND INDEMNITY
COMPENSATION.
(a) Repeal.--Section 1451(c) of title 10, United States
Code, is amended by striking paragraph (2).
(b) Prohibition on Retroactive Benefits.--No benefits may
be paid to any person for any period before the effective
date specified in subsection (c) by reason of the amendment
made by subsection (a).
(c) Effective Date.--The amendment made by subsection (a)
shall take effect on--
(1) the first day of the first month that begins after the
date of the enactment of this Act; or
(2) the first day of the fiscal year that begins in the
calendar year in which this Act is enacted, if later than the
date specified in paragraph (1).
____________________