[Congressional Record (Bound Edition), Volume 145 (1999), Part 21]
[Senate]
[Pages 30629-30633]
[From the U.S. Government Publishing Office, www.gpo.gov]



                                S. 1949

  Mr. LEAHY. Mr. President, I ask unanimous consent that the text of 
the bill, S. 1949, the ``Clean Power Plant and Modernization Act,'' 
introduced on November 18, 1999, be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1949

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

[[Page 30630]]



     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Clean 
     Power Plant and Modernization Act of 1999''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Combustion heat rate efficiency standards for fossil fuel-fired 
              generating units.
Sec. 5. Air emission standards for fossil fuel-fired generating units.
Sec. 6. Extension of renewable energy production credit.
Sec. 7. Megawatt hour generation fees.
Sec. 8. Clean Air Trust Fund.
Sec. 9. Accelerated depreciation for investor-owned generating units.
Sec. 10. Grants for publicly owned generating units.
Sec. 11. Recognition of permanent emission reductions in future climate 
              change implementation programs.
Sec. 12. Renewable and clean power generation technologies.
Sec. 13. Clean coal, advanced gas turbine, and combined heat and power 
              demonstration program.
Sec. 14. Evaluation of implementation of this Act and other statutes.
Sec. 15. Assistance for workers adversely affected by reduced 
              consumption of coal.
Sec. 16. Community economic development incentives for communities 
              adversely affected by reduced consumption of coal.
Sec. 17. Carbon sequestration.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) the United States is relying increasingly on old, 
     needlessly inefficient, and highly polluting powerplants to 
     provide electricity;
       (2) the pollution from those powerplants causes a wide 
     range of health and environmental damage, including--
       (A) fine particulate matter that is associated with the 
     deaths of approximately 50,000 Americans annually;
       (B) urban ozone, commonly known as ``smog'', that impairs 
     normal respiratory functions and is of special concern to 
     individuals afflicted with asthma, emphysema, and other 
     respiratory ailments;
       (C) rural ozone that obscures visibility and damages 
     forests and wildlife;
       (D) acid deposition that damages estuaries, lakes, rivers, 
     and streams (and the plants and animals that depend on them 
     for survival) and leaches heavy metals from the soil;
       (E) mercury and heavy metal contamination that renders fish 
     unsafe to eat, with especially serious consequences for 
     pregnant women and their fetuses;
       (F) eutrophication of estuaries, lakes, rivers, and 
     streams; and
       (G) global climate change that may fundamentally and 
     irreversibly alter human, animal, and plant life;
       (3) tax laws and environmental laws--
       (A) provide a very strong incentive for electric utilities 
     to keep old, dirty, and inefficient generating units in 
     operation; and
       (B) provide a strong disincentive to investing in new, 
     clean, and efficient generating technologies;
       (4) fossil fuel-fired power plants, consisting of plants 
     fueled by coal, fuel oil, and natural gas, produce nearly 
     two-thirds of the electricity generated in the United States;
       (5) since, according to the Department of Energy, the 
     average combustion heat rate efficiency of fossil fuel-fired 
     power plants in the United States is 33 percent, 67 percent 
     of the heat generated by burning the fuel is wasted;
       (6) technology exists to increase the combustion heat rate 
     efficiency of coal combustion from 35 percent to 50 percent 
     above current levels, and technological advances are possible 
     that would boost the net combustion heat rate efficiency even 
     more;
       (7) coal-fired power plants are the leading source of 
     mercury emissions in the United States, releasing an 
     estimated 52 tons of this potent neurotoxin each year;
       (8) in 1996, fossil fuel-fired power plants in the United 
     States produced over 2,000,000,000 tons of carbon dioxide, 
     the primary greenhouse gas;
       (9) on average--
       (A) fossil fuel-fired power plants emit 1,999 pounds of 
     carbon dioxide for every megawatt hour of electricity 
     produced;
       (B) coal-fired power plants emit 2,110 pounds of carbon 
     dioxide for every megawatt hour of electricity produced; and
       (C) coal-fired power plants emit 205 pounds of carbon 
     dioxide for every million British thermal units of fuel 
     consumed;
       (10) the average fossil fuel-fired generating unit in the 
     United States commenced operation in 1964, 6 years before the 
     Clean Air Act (42 U.S.C. 7401 et seq.) was amended to 
     establish requirements for stationary sources;
       (11)(A) according to the Department of Energy, only 23 
     percent of the 1,000 largest emitting units are subject to 
     stringent new source performance standards under section 111 
     of the Clean Air Act (42 U.S.C. 7411); and
       (B) the remaining 77 percent, commonly referred to as 
     ``grandfathered'' power plants, are subject to much less 
     stringent requirements;
       (12) on the basis of scientific and medical evidence, 
     exposure to mercury and mercury compounds is of concern to 
     human health and the environment;
       (13) pregnant women and their developing fetuses, women of 
     childbearing age, and children are most at risk for mercury-
     related health impacts such as neurotoxicity;
       (14) although exposure to mercury and mercury compounds 
     occurs most frequently through consumption of mercury-
     contaminated fish, such exposure can also occur through--
       (A) ingestion of breast milk;
       (B) ingestion of drinking water, and foods other than fish, 
     that are contaminated with methyl mercury; and
       (C) dermal uptake through contact with soil and water;
       (15) the report entitled ``Mercury Study Report to 
     Congress'' and submitted by the Environmental Protection 
     Agency under section 112(n)(1)(B) of the Clean Air Act (42 
     U.S.C. 7412(n)(1)(B)), in conjunction with other scientific 
     knowledge, supports a plausible link between mercury 
     emissions from combustion of coal and other fossil fuels and 
     mercury concentrations in air, soil, water, and sediments;
       (16)(A) the Environmental Protection Agency report 
     described in paragraph (15) supports a plausible link between 
     mercury emissions from combustion of coal and other fossil 
     fuels and methyl mercury concentrations in freshwater fish;
       (B) in 1997, 39 States issued health advisories that warned 
     the public about consuming mercury-tainted fish, as compared 
     to 27 States that issued such advisories in 1993; and
       (C) the number of mercury advisories nationwide increased 
     from 899 in 1993 to 1,675 in 1996, an increase of 86 percent;
       (17) pollution from powerplants can be reduced through 
     adoption of modern technologies and practices, including--
       (A) methods of combusting coal that are intrinsically more 
     efficient and less polluting, such as pressurized fluidized 
     bed combustion and an integrated gasification combined cycle 
     system;
       (B) methods of combusting cleaner fuels, such as gases from 
     fossil and biological resources and combined cycle turbines;
       (C) treating flue gases through application of pollution 
     controls;
       (D) methods of extracting energy from natural, renewable 
     resources of energy, such as solar and wind sources;
       (E) methods of producing electricity and thermal energy 
     from fuels without conventional combustion, such as fuel 
     cells; and
       (F) combined heat and power methods of extracting and using 
     heat that would otherwise be wasted, for the purpose of 
     heating or cooling office buildings, providing steam to 
     processing facilities, or otherwise increasing total 
     efficiency; and
       (18) adopting the technologies and practices described in 
     paragraph (17) would increase competitiveness and 
     productivity, secure employment, save lives, and preserve the 
     future.
       (b) Purposes.--The purposes of this Act are--
       (1) to protect and preserve the environment while 
     safeguarding health by ensuring that each fossil fuel-fired 
     generating unit minimizes air pollution to levels that are 
     technologically feasible through modernization and 
     application of pollution controls;
       (2) to greatly reduce the quantities of mercury, carbon 
     dioxide, sulfur dioxide, and nitrogen oxides entering the 
     environment from combustion of fossil fuels;
       (3) to permanently reduce emissions of those pollutants by 
     increasing the combustion heat rate efficiency of fossil 
     fuel-fired generating units to levels achievable through--
       (A) use of commercially available combustion technology, 
     including clean coal technologies such as pressurized 
     fluidized bed combustion and an integrated gasification 
     combined cycle system;
       (B) installation of pollution controls;
       (C) expanded use of renewable and clean energy sources such 
     as biomass, geothermal, solar, wind, and fuel cells; and
       (D) promotion of application of combined heat and power 
     technologies;
       (4)(A) to create financial and regulatory incentives to 
     retire thermally inefficient generating units and replace 
     them with new units that employ high-thermal-efficiency 
     combustion technology; and
       (B) to increase use of renewable and clean energy sources 
     such as biomass, geothermal, solar, wind, and fuel cells;
       (5) to establish the Clean Air Trust Fund to fund the 
     training, economic development, carbon sequestration, and 
     research, development, and demonstration programs established 
     under this Act;
       (6) to eliminate the ``grandfather'' loophole in the Clean 
     Air Act relating to sources in operation before the 
     promulgation of standards under section 111 of that Act (42 
     U.S.C. 7411);
       (7) to express the sense of Congress that permanent 
     reductions in emissions of greenhouse gases that are 
     accomplished through the retirement of old units and 
     replacement by new units that meet the combustion heat

[[Page 30631]]

     rate efficiency and emission standards specified in this Act 
     should be credited to the utility sector and the owner or 
     operator in any climate change implementation program;
       (8) to promote permanent and safe disposal of mercury 
     recovered through coal cleaning, flue gas control systems, 
     and other methods of mercury pollution control;
       (9) to increase public knowledge of the sources of mercury 
     exposure and the threat to public health from mercury, 
     particularly the threat to the health of pregnant women and 
     their fetuses, women of childbearing age, and children;
       (10) to decrease significantly the threat to human health 
     and the environment posed by mercury;
       (11) to provide worker retraining for workers adversely 
     affected by reduced consumption of coal; and
       (12) to provide economic development incentives for 
     communities adversely affected by reduced consumption of 
     coal.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Generating unit.--The term ``generating unit'' means an 
     electric utility generating unit.

     SEC. 4. COMBUSTION HEAT RATE EFFICIENCY STANDARDS FOR FOSSIL 
                   FUEL-FIRED GENERATING UNITS.

       (a) Standards.--
       (1) In general.--Not later than the day that is 10 years 
     after the date of enactment of this Act, each fossil fuel-
     fired generating unit that commences operation on or before 
     that day shall achieve and maintain, at all operating levels, 
     a combustion heat rate efficiency of not less than 45 percent 
     (based on the higher heating value of the fuel).
       (2) Future generating units.--Each fossil fuel-fired 
     generating unit that commences operation more than 10 years 
     after the date of enactment of this Act shall achieve and 
     maintain, at all operating levels, a combustion heat rate 
     efficiency of not less than 50 percent (based on the higher 
     heating value of the fuel), unless granted a waiver under 
     subsection (d).
       (b) Test Methods.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator, in consultation 
     with the Secretary of Energy, shall promulgate methods for 
     determining initial and continuing compliance with this 
     section.
       (c) Permit Requirement.--Not later than 10 years after the 
     date of enactment of this Act, each generating unit shall 
     have a permit issued under title V of the Clean Air Act (42 
     U.S.C. 7661 et seq.) that requires compliance with this 
     section.
       (d) Waiver of Combustion Heat Rate Efficiency Standard.--
       (1) Application.--The owner or operator of a generating 
     unit that commences operation more than 10 years after the 
     date of enactment of this Act may apply to the Administrator 
     for a waiver of the combustion heat rate efficiency standard 
     specified in subsection (a)(2) that is applicable to that 
     type of generating unit.
       (2) Issuance.--The Administrator may grant the waiver only 
     if--
       (A)(i) the owner or operator of the generating unit 
     demonstrates that the technology to meet the combustion heat 
     rate efficiency standard is not commercially available; or
       (ii) the owner or operator of the generating unit 
     demonstrates that, despite best technical efforts and 
     willingness to make the necessary level of financial 
     commitment, the combustion heat rate efficiency standard is 
     not achievable at the generating unit; and
       (B) the owner or operator of the generating unit enters 
     into an agreement with the Administrator to offset by a 
     factor of 1.5 to 1, using a method approved by the 
     Administrator, the emission reductions that the generating 
     unit does not achieve because of the failure to achieve the 
     combustion heat rate efficiency standard specified in 
     subsection (a)(2).
       (3) Effect of waiver.--If the Administrator grants a waiver 
     under paragraph (1), the generating unit shall be required to 
     achieve and maintain, at all operating levels, the combustion 
     heat rate efficiency standard specified in subsection (a)(1).

     SEC. 5. AIR EMISSION STANDARDS FOR FOSSIL FUEL-FIRED 
                   GENERATING UNITS.

       (a) All Fossil Fuel-Fired Generating Units.--Not later than 
     10 years after the date of enactment of this Act, each fossil 
     fuel-fired generating unit, regardless of its date of 
     construction or commencement of operation, shall be subject 
     to, and operating in physical and operational compliance 
     with, the new source review requirements under section 111 of 
     the Clean Air Act (42 U.S.C. 7411).
       (b) Emission Rates for Sources Required To Maintain 45 
     Percent Efficiency.--Not later than 10 years after the date 
     of enactment of this Act, each fossil fuel-fired generating 
     unit subject to section 4(a)(1) shall be in compliance with 
     the following emission limitations:
       (1) Mercury.--Each coal-fired or fuel oil-fired generating 
     unit shall be required to remove 90 percent of the mercury 
     contained in the fuel, calculated in accordance with 
     subsection (e).
       (2) Carbon dioxide.--
       (A) Natural gas-fired generating units.--Each natural gas-
     fired generating unit shall be required to achieve an 
     emission rate of not more than 0.9 pounds of carbon dioxide 
     per kilowatt hour of net electric power output.
       (B) Fuel oil-fired generating units.--Each fuel oil-fired 
     generating unit shall be required to achieve an emission rate 
     of not more than 1.3 pounds of carbon dioxide per kilowatt 
     hour of net electric power output.
       (C) Coal-fired generating units.--Each coal-fired 
     generating unit shall be required to achieve an emission rate 
     of not more than 1.55 pounds of carbon dioxide per kilowatt 
     hour of net electric power output.
       (3) Sulfur dioxide.--Each fossil fuel-fired generating unit 
     shall be required--
       (A) to remove 95 percent of the sulfur dioxide that would 
     otherwise be present in the flue gas; and
       (B) to achieve an emission rate of not more than 0.3 pounds 
     of sulfur dioxide per million British thermal units of fuel 
     consumed.
       (4) Nitrogen oxides.--Each fossil fuel-fired generating 
     unit shall be required--
       (A) to remove 90 percent of nitrogen oxides that would 
     otherwise be present in the flue gas; and
       (B) to achieve an emission rate of not more than 0.15 
     pounds of nitrogen oxides per million British thermal units 
     of fuel consumed.
       (c) Emission Rates for Sources Required To Maintain 50 
     Percent Efficiency.--Each fossil fuel-fired generating unit 
     subject to section 4(a)(2) shall be in compliance with the 
     following emission limitations:
       (1) Mercury.--Each coal-fired or fuel oil-fired generating 
     unit shall be required to remove 90 percent of the mercury 
     contained in the fuel, calculated in accordance with 
     subsection (e).
       (2) Carbon dioxide.--
       (A) Natural gas-fired generating units.--Each natural gas-
     fired generating unit shall be required to achieve an 
     emission rate of not more than 0.8 pounds of carbon dioxide 
     per kilowatt hour of net electric power output.
       (B) Fuel oil-fired generating units.--Each fuel oil-fired 
     generating unit shall be required to achieve an emission rate 
     of not more than 1.2 pounds of carbon dioxide per kilowatt 
     hour of net electric power output.
       (C) Coal-fired generating units.--Each coal-fired 
     generating unit shall be required to achieve an emission rate 
     of not more than 1.4 pounds of carbon dioxide per kilowatt 
     hour of net electric power output.
       (3) Sulfur dioxide.--Each fossil fuel-fired generating unit 
     shall be required--
       (A) to remove 95 percent of the sulfur dioxide that would 
     otherwise be present in the flue gas; and
       (B) to achieve an emission rate of not more than 0.3 pounds 
     of sulfur dioxide per million British thermal units of fuel 
     consumed.
       (4) Nitrogen oxides.--Each fossil fuel-fired generating 
     unit shall be required--
       (A) to remove 90 percent of nitrogen oxides that would 
     otherwise be present in the flue gas; and
       (B) to achieve an emission rate of not more than 0.15 
     pounds of nitrogen oxides per million British thermal units 
     of fuel consumed.
       (d) Permit Requirement.--Not later than 10 years after the 
     date of enactment of this Act, each generating unit shall 
     have a permit issued under title V of the Clean Air Act (42 
     U.S.C. 7661 et seq.) that requires compliance with this 
     section.
       (e) Compliance Determination and Monitoring.--
       (1) Regulations.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator, in consultation 
     with the Secretary of Energy, shall promulgate methods for 
     determining initial and continuing compliance with this 
     section.
       (2) Calculation of mercury emission reductions.--Not later 
     than 2 years after the date of enactment of this Act, the 
     Administrator shall promulgate fuel sampling techniques and 
     emission monitoring techniques for use by generating units in 
     calculating mercury emission reductions for the purposes of 
     this section.
       (3) Reporting.--
       (A) In general.--Not less than often than quarterly, the 
     owner or operator of a generating unit shall submit a 
     pollutant-specific emission report for each pollutant covered 
     by this section.
       (B) Signature.--Each report required under subparagraph (A) 
     shall be signed by a responsible official of the generating 
     unit, who shall certify the accuracy of the report.
       (C) Public reporting.--The Administrator shall annually 
     make available to the public, through 1 or more published 
     reports and 1 or more forms of electronic media, facility-
     specific emission data for each generating unit and pollutant 
     covered by this section.
       (D) Consumer disclosure.--Not later than 2 years after the 
     date of enactment of this Act, the Administrator shall 
     promulgate regulations requiring each owner or operator of a 
     generating unit to disclose to residential consumers of 
     electricity generated by the unit, on a regular basis (but 
     not less often than annually) and in a manner convenient to 
     the consumers, data concerning the level of emissions by the 
     generating unit of each pollutant covered by this section and 
     each air pollutant covered by section 111 of the Clean Air 
     Act (42 U.S.C. 7411).

[[Page 30632]]

       (f) Disposal of Mercury Captured or Recovered Through 
     Emission Controls.--
       (1) Captured or recovered mercury.--Not later than 2 years 
     after the date of enactment of this Act, the Administrator 
     shall promulgate regulations to ensure that mercury that is 
     captured or recovered through the use of an emission control, 
     coal cleaning, or another method is disposed of in a manner 
     that ensures that--
       (A) the hazards from mercury are not transferred from 1 
     environmental medium to another; and
       (B) there is no release of mercury into the environment.
       (2) Mercury-containing sludges and wastes.--The regulations 
     promulgated by the Administrator under paragraph (1) shall 
     ensure that mercury-containing sludges and wastes are handled 
     and disposed of in accordance with all applicable Federal and 
     State laws (including regulations).
       (g) Public Reporting of Facility-Specific Emission Data.--
       (1) In general.--The Administrator shall annually make 
     available to the public, through 1 or more published reports 
     and the Internet, facility-specific emission data for each 
     generating unit and for each pollutant covered by this 
     section.
       (2) Source of data.--The emission data shall be taken from 
     the emission reports submitted under subsection (e)(3).

     SEC. 6. EXTENSION OF RENEWABLE ENERGY PRODUCTION CREDIT.

       Section 45(c) of the Internal Revenue Code of 1986 
     (relating to definitions) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A), by striking ``and'';
       (B) in subparagraph (B), by striking the period and 
     inserting ``, and''; and
       (C) by adding at the end the following:
       ``(C) solar power.'';
       (2) in paragraph (3)--
       (A) by inserting ``, and December 31, 1998, in the case of 
     a facility using solar power to produce electricity'' after 
     ``electricity''; and
       (B) by striking ``1999'' and inserting ``2010''; and
       (3) by adding at the end the following:
       ``(4) Solar power.--The term `solar power' means solar 
     power harnessed through--
       ``(A) photovoltaic systems,
       ``(B) solar boilers that provide process heat, and
       ``(C) any other means.''.

     SEC. 7. MEGAWATT HOUR GENERATION FEES.

       (a) In General.--Chapter 38 of the Internal Revenue Code of 
     1986 (relating to miscellaneous excise taxes) is amended by 
     inserting after subchapter D the following:

             ``Subchapter E--Megawatt Hour Generation Fees

``Sec. 4691. Imposition of fees.

     ``SEC. 4691. IMPOSITION OF FEES.

       ``(a) Tax Imposed.--There is hereby imposed on each covered 
     fossil fuel-fired generating unit a tax equal to 30 cents per 
     megawatt hour of electricity produced by the covered fossil 
     fuel-fired generating unit.
       ``(b) Adjustment of Rates.--Not less often than once every 
     2 years beginning after 2002, the Secretary, in consultation 
     with the Administrator of the Environmental Protection 
     Agency, shall evaluate the rate of the tax imposed by 
     subsection (a) and increase the rate if necessary for any 
     succeeding calendar year to ensure that the Clean Air Trust 
     Fund established by section 9511 has sufficient amounts to 
     fully fund the activities described in section 9511(c).
       ``(c) Payment of Tax.--The tax imposed by this section 
     shall be paid quarterly by the owner or operator of each 
     covered fossil fuel-fired generating unit.
       ``(d) Covered Fossil Fuel-Fired Generating Unit.--The term 
     `covered fossil fuel-fired generating unit' means an electric 
     utility generating unit that--
       ``(1) is powered by fossil fuels;
       ``(2) has a generating capacity of 5 or more megawatts; and
       ``(3) because of the date on which the generating unit 
     commenced commercial operation, is not subject to all 
     regulations promulgated under section 111 of the Clean Air 
     Act (42 U.S.C. 7411).''.
       (b) Conforming Amendment.--The table of subchapters for 
     such chapter 38 is amended by inserting after the item 
     relating to subchapter D the following:

``Subchapter E. Megawatt hour generation fees.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to electricity produced in calendar years 
     beginning after December 31, 2000.

     SEC. 8. CLEAN AIR TRUST FUND.

       (a) In General.--Subchapter A of chapter 98 of the Internal 
     Revenue Code of 1986 (relating to trust fund code) is amended 
     by adding at the end the following:

     ``SEC. 9511. CLEAN AIR TRUST FUND.

       ``(a) Creation of Trust Fund.--There is established in the 
     Treasury of the United States a trust fund to be known as the 
     `Clean Air Trust Fund' (hereafter referred to in this section 
     as the `Trust Fund'), consisting of such amounts as may be 
     appropriated or credited to the Trust Fund as provided in 
     this section or section 9602(b).
       ``(b) Transfers to Trust Fund.--There are hereby 
     appropriated to the Trust Fund amounts equivalent to the 
     taxes received in the Treasury under section 4691.
       ``(c) Expenditures From Trust Fund.--Amounts in the Trust 
     Fund shall be available, without further Act of 
     appropriation, upon request by the head of the appropriate 
     Federal agency in such amounts as the agency head determines 
     are necessary--
       ``(1) to provide funding under section 12 of the Clean 
     Power Plant and Modernization Act of 1999, as in effect on 
     the date of enactment of this section;
       ``(2) to provide funding for the demonstration program 
     under section 13 of such Act, as so in effect;
       ``(3) to provide assistance under section 15 of such Act, 
     as so in effect;
       ``(4) to provide assistance under section 16 of such Act, 
     as so in effect; and
       ``(5) to provide funding under section 17 of such Act, as 
     so in effect.''.
       (b) Conforming Amendment.--The table of sections for such 
     subchapter A is amended by adding at the end the following:

``Sec. 9511. Clean Air Trust Fund.''.

     SEC. 9. ACCELERATED DEPRECIATION FOR INVESTOR-OWNED 
                   GENERATING UNITS.

       (a) In General.--Section 168(e)(3) of the Internal Revenue 
     Code of 1986 (relating to classification of certain property) 
     is amended--
       (1) in subparagraph (E) (relating to 15-year property), 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:
       ``(iv) any 45-percent efficient fossil fuel-fired 
     generating unit.''; and
       (2) by adding at the end the following:
       ``(F) 12-year property.--The term `12-year property' 
     includes any 50-percent efficient fossil fuel-fired 
     generating unit.''.
       (b) Definitions.--Section 168(i) of the Internal Revenue 
     Code of 1986 (relating to definitions and special rules) is 
     amended by adding at the end the following:
       ``(15) Fossil fuel-fired generating units.--
       ``(A) 50-percent efficient fossil fuel-fired generating 
     unit.--The term `50-percent efficient fossil fuel-fired 
     generating unit' means any property used in an investor-owned 
     fossil fuel-fired generating unit pursuant to a plan approved 
     by the Secretary, in consultation with the Administrator of 
     the Environmental Protection Agency, to place into service 
     such a unit that is in compliance with sections 4(a)(2) and 
     5(c) of the Clean Power Plant and Modernization Act of 1999, 
     as in effect on the date of enactment of this paragraph.
       ``(B) 45-percent efficient fossil fuel-fired generating 
     unit.--The term `45-percent efficient fossil fuel-fired 
     generating unit' means any property used in an investor-owned 
     fossil fuel-fired generating unit pursuant to a plan so 
     approved to place into service such a unit that is in 
     compliance with sections 4(a)(1) and 5(b) of such Act, as so 
     in effect.''.
       (c) Conforming Amendment.--The table contained in section 
     168(c) of the Internal Revenue Code of 1986 (relating to 
     applicable recovery period) is amended by inserting after the 
     item relating to 10-year property the following:

  ``12-year property...................................12 years''. ....

       (d) Effective Date.--The amendments made by this section 
     shall apply to property used after the date of enactment of 
     this Act.

     SEC. 10. GRANTS FOR PUBLICLY OWNED GENERATING UNITS.

       Any capital expenditure made after the date of enactment of 
     this Act to purchase, install, and bring into commercial 
     operation any new publicly owned generating unit that--
       (1) is in compliance with sections 4(a)(1) and 5(b) shall, 
     for a 15-year period, be eligible for partial reimbursement 
     through annual grants made by the Secretary of the Treasury, 
     in consultation with the Administrator, in an amount equal to 
     the monetary value of the depreciation deduction that would 
     be realized by reason of section 168(c)(3)(E) of the Internal 
     Revenue Code of 1986 by a similarly-situated investor-owned 
     generating unit over that period; and
       (2) is in compliance with sections 4(a)(2) and 5(c) shall, 
     over a 12-year period, be eligible for partial reimbursement 
     through annual grants made by the Secretary of the Treasury, 
     in consultation with the Administrator, in an amount equal to 
     the monetary value of the depreciation deduction that would 
     be realized by reason of section 168(c)(3)(D) of such Code by 
     a similarly-situated investor-owned generating unit over that 
     period.

     SEC. 11. RECOGNITION OF PERMANENT EMISSION REDUCTIONS IN 
                   FUTURE CLIMATE CHANGE IMPLEMENTATION PROGRAMS.

       It is the sense of Congress that--
       (1) permanent reductions in emissions of carbon dioxide and 
     nitrogen oxides that are accomplished through the retirement 
     of old generating units and replacement by new generating 
     units that meet the combustion heat rate efficiency and 
     emission standards specified in this Act, or through 
     replacement of old generating units with nonpolluting 
     renewable power generation technologies, should be credited 
     to the utility sector, and

[[Page 30633]]

     to the owner or operator that retires or replaces the old 
     generating unit, in any climate change implementation program 
     enacted by Congress;
       (2) the base year for calculating reductions under a 
     program described in paragraph (1) should be the calendar 
     year preceding the calendar year in which this Act is 
     enacted; and
       (3) a reasonable portion of any monetary value that may 
     accrue from the crediting described in paragraph (1) should 
     be passed on to utility customers.

     SEC. 12. RENEWABLE AND CLEAN POWER GENERATION TECHNOLOGIES.

       (a) In General.--Under the Renewable Energy and Energy 
     Efficiency Technology Act of 1989 (42 U.S.C. 12001 et seq.), 
     the Secretary of Energy shall fund research and development 
     programs and commercial demonstration projects and 
     partnerships to demonstrate the commercial viability and 
     environmental benefits of electric power generation from--
       (1) biomass (excluding unseparated municipal solid waste), 
     geothermal, solar, and wind technologies; and
       (2) fuel cells.
       (b) Types of Projects.--Demonstration projects may include 
     solar power tower plants, solar dishes and engines, co-firing 
     of biomass with coal, biomass modular systems, next-
     generation wind turbines and wind turbine verification 
     projects, geothermal energy conversion, and fuel cells.
       (c) Authorization of Appropriations.--In addition to 
     amounts made available under any other law, there is 
     authorized to be appropriated to carry out this section 
     $75,000,000 for each of fiscal years 2001 through 2010.

     SEC. 13. CLEAN COAL, ADVANCED GAS TURBINE, AND COMBINED HEAT 
                   AND POWER DEMONSTRATION PROGRAM.

       (a) In General.--Under subtitle B of title XXI of the 
     Energy Policy Act of 1992 (42 U.S.C. 13471 et seq.), the 
     Secretary of Energy shall establish a program to fund 
     projects and partnerships designed to demonstrate the 
     efficiency and environmental benefits of electric power 
     generation from--
       (1) clean coal technologies, such as pressurized fluidized 
     bed combustion and an integrated gasification combined cycle 
     system;
       (2) advanced gas turbine technologies, such as flexible 
     midsized gas turbines and baseload utility scale 
     applications; and
       (3) combined heat and power technologies.
       (b) Selection Criteria.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Energy shall 
     promulgate criteria and procedures for selection of 
     demonstration projects and partnerships to be funded under 
     subsection (a).
       (2) Required criteria.--At a minimum, the selection 
     criteria shall include--
       (A) the potential of a proposed demonstration project or 
     partnership to reduce or avoid emissions of pollutants 
     covered by section 5 and air pollutants covered by section 
     111 of the Clean Air Act (42 U.S.C. 7411); and
       (B) the potential commercial viability of the proposed 
     demonstration project or partnership.
       (c) Authorization of Appropriations.--
       (1) In general.--In addition to amounts made available 
     under any other law, there is authorized to be appropriated 
     to carry out this section $75,000,000 for each of fiscal 
     years 2001 through 2010.
       (2) Distribution.--The Secretary shall make reasonable 
     efforts to ensure that, under the program established under 
     this section, the same amount of funding is provided for 
     demonstration projects and partnerships under each of 
     paragraphs (1), (2), and (3) of subsection (a).

     SEC. 14. EVALUATION OF IMPLEMENTATION OF THIS ACT AND OTHER 
                   STATUTES.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary of Energy, in 
     consultation with the Chairman of the Federal Energy 
     Regulatory Commission and the Administrator, shall submit to 
     Congress a report on the implementation of this Act.
       (b) Identification of Conflicting Law.--The report shall 
     identify any provision of the Energy Policy Act of 1992 
     (Public Law 102-486), the Energy Supply and Environmental 
     Coordination Act of 1974 (15 U.S.C. 791 et seq.), the Public 
     Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 et 
     seq.), or the Powerplant and Industrial Fuel Use Act of 1978 
     (42 U.S.C. 8301 et seq.), or the amendments made by those 
     Acts, that conflicts with the intent or efficient 
     implementation of this Act.
       (c) Recommendations.--The report shall include 
     recommendations from the Secretary of Energy, the Chairman of 
     the Federal Energy Regulatory Commission, and the 
     Administrator for legislative or administrative measures to 
     harmonize and streamline the statutes specified in subsection 
     (b) and the regulations implementing those statutes.

     SEC. 15. ASSISTANCE FOR WORKERS ADVERSELY AFFECTED BY REDUCED 
                   CONSUMPTION OF COAL.

       In addition to amounts made available under any other law, 
     there is authorized to be appropriated $75,000,000 for each 
     of fiscal years 2001 through 2015 to provide assistance, 
     under the economic dislocation and worker adjustment 
     assistance program of the Department of Labor authorized by 
     title III of the Job Training Partnership Act (29 U.S.C. 1651 
     et seq.), to coal industry workers who are terminated from 
     employment as a result of reduced consumption of coal by the 
     electric power generation industry.

     SEC. 16. COMMUNITY ECONOMIC DEVELOPMENT INCENTIVES FOR 
                   COMMUNITIES ADVERSELY AFFECTED BY REDUCED 
                   CONSUMPTION OF COAL.

       In addition to amounts made available under any other law, 
     there is authorized to be appropriated $75,000,000 for each 
     of fiscal years 2001 through 2015 to provide assistance, 
     under the economic adjustment program of the Department of 
     Commerce authorized by the Public Works and Economic 
     Development Act of 1965 (42 U.S.C. 3121 et seq.), to assist 
     communities adversely affected by reduced consumption of coal 
     by the electric power generation industry.

     SEC. 17. CARBON SEQUESTRATION.

       (a) Carbon Sequestration Strategy.--In addition to amounts 
     made available under any other law, there is authorized to be 
     appropriated to the Environmental Protection Agency and the 
     Department of Energy for each of fiscal years 2001 through 
     2003 a total of $15,000,000 to conduct research and 
     development activities in basic and applied science in 
     support of development by September 30, 2003, of a carbon 
     sequestration strategy that is designed to offset all growth 
     in carbon dioxide emissions in the United States after 2010.
       (b) Methods for Biologically Sequestering Carbon Dioxide.--
     In addition to amounts made available under any other law, 
     there is authorized to be appropriated to the Environmental 
     Protection Agency and the Department of Agriculture for each 
     of fiscal years 2001 through 2010 a total of $30,000,000 to 
     carry out soil restoration, tree planting, wetland 
     protection, and other methods of biologically sequestering 
     carbon dioxide.
       (c) Limitation.--A project carried out using funds made 
     available under this section shall not be used to offset any 
     emission reduction required under any other provision of this 
     Act.

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