§ 15962 — Project Criteria

(a) To be eligible to receive assistance under this part, a project shall advance efficiency, environmental performance, and cost competitiveness well beyond the level of technologies that are in commercial service or have been demonstrated on a scale that the Secretary determines is sufficient to demonstrate that commercial service is viable as of August 8, 2005. (A) In allocating the funds made available under section 15961(a) of this title, the Secretary shall ensure that at least 70 percent of the funds are used only to fund projects on coal-based gasification technologies, including— (i) gasification combined cycle; (ii) gasification fuel cells and turbine combined cycle; (iii) gasification coproduction; (iv) hybrid gasification and combustion; and (v) other advanced coal based technologies capable of producing a concentrated stream of carbon dioxide. (I) The Secretary shall periodically set technical milestones specifying the emission and thermal efficiency levels that coal gasification projects under this part shall be designed, and reasonably expected, to achieve. (II) The technical milestones shall become more prescriptive during the period of the clean coal power initiative. (ii) The Secretary shall establish the periodic milestones so as to achieve by the year 2020 coal gasification projects able— (aa) to remove at least 99 percent of sulfur dioxide; or (bb) to emit not more than 0.04 pound SO2 per million Btu, based on a 30-day average; (II) to emit not more than .05 lbs of NOx per million Btu; (III) to achieve at least 95 percent reductions in mercury emissions; and (IV) to achieve a thermal efficiency of at least— (aa) 50 percent for coal of more than 9,000 Btu; (bb) 48 percent for coal of 7,000 to 9,000 Btu; and (cc) 46 percent for coal of less than 7,000 Btu. (A) The Secretary shall ensure that up to 30 percent of the funds made available under section 15961(a) of this title are used to fund projects other than those described in paragraph (1). (I) The Secretary shall periodically establish technical milestones specifying the emission and thermal efficiency levels that projects funded under this paragraph shall be designed, and reasonably expected, to achieve. (II) The technical milestones shall become more prescriptive during the period of the clean coal power initiative. (ii) The Secretary shall set the periodic milestones so as to achieve by the year 2020 projects able— (I) to remove at least 97 percent of sulfur dioxide; (II) to emit no more than .08 lbs of NOx per million Btu; (III) to achieve at least 90 percent reductions in mercury emissions; and (IV) to achieve a thermal efficiency of at least— (aa) 43 percent for coal of more than 9,000 Btu; (bb) 41 percent for coal of 7,000 to 9,000 Btu; and (cc) 39 percent for coal of less than 7,000 Btu. (3) Before setting the technical milestones under paragraphs (1)(B) and (2)(B), the Secretary shall consult with— (A) the Administrator of the Environmental Protection Agency; and (B) interested entities, including— (i) coal producers; (ii) industries using coal; (iii) organizations that promote coal or advanced coal technologies; (iv) environmental organizations; (v) organizations representing workers; and (vi) organizations representing consumers. (4) In the case of projects at units in existence on August 8, 2005, in lieu of the thermal efficiency requirements described in paragraphs (1)(B)(ii)(IV) and (2)(B)(ii)(IV), the milestones shall be designed to achieve an overall thermal design efficiency improvement, compared to the efficiency of the unit as operated, of not less than— (A) 7 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. (A) In evaluating project proposals to achieve thermal efficiency levels established under paragraphs (1)(B)(i) and (2)(B)(i) and in determining progress towards thermal efficiency milestones under paragraphs (1)(B)(ii)(IV), (2)(B)(ii)(IV), and (4), the Secretary shall take into account and make adjustments for the elevation of the site at which a project is proposed to be constructed. (B) In applying the thermal efficiency milestones under paragraphs (1)(B)(ii)(IV), (2)(B)(ii)(IV), and (4) to projects that separate and capture at least 50 percent of the potential emissions of carbon dioxide by a facility, the energy used for separation and capture of carbon dioxide shall not be counted in calculating the thermal efficiency. (C) In carrying out this section, the Secretary may give priority to projects that include, as part of the project— (i) the separation or capture of carbon dioxide; or (ii) the reduction of the demand for natural gas if deployed. (c) The Secretary shall not provide financial assistance under this part for a project unless the recipient documents to the satisfaction of the Secretary that— (1) the recipient is financially responsible; (2) the recipient will provide sufficient information to the Secretary to enable the Secretary to ensure that the funds are spent efficiently and effectively; and (3) a market exists for the technology being demonstrated or applied, as evidenced by statements of interest in writing from potential purchasers of the technology. (d) The Secretary shall provide financial assistance to projects that, as determined by the Secretary— (1) meet the requirements of subsections (a), (b), and (c); and (2) are likely— (A) to achieve overall cost reductions in the use of coal to generate useful forms of energy or chemical feedstocks; (B) to improve the competitiveness of coal among various forms of energy in order to maintain a diversity of fuel choices in the United States to meet electricity generation requirements; and (C) to demonstrate methods and equipment that are applicable to 25 percent of the electricity generating facilities, using various types of coal, that use coal as the primary feedstock as of August 8, 2005. (e) In carrying out this part, the Secretary shall require cost sharing in accordance with section 16352 of this title. (1) In selecting a project for financial assistance under this section, the Secretary shall establish a reasonable period of time during which the owner or operator of the project shall complete the construction or demonstration phase of the project, as the Secretary determines to be appropriate. (2) The Secretary shall require as a condition of receipt of any financial assistance under this part that the recipient of the assistance enter into an agreement with the Secretary not to request an extension of the time period established for the project by the Secretary under paragraph (1). (A) Subject to subparagraph (B), the Secretary may extend the time period established under paragraph (1) if the Secretary determines, in the sole discretion of the Secretary, that the owner or operator of the project cannot complete the construction or demonstration phase of the project within the time period due to circumstances beyond the control of the owner or operator. (B) The Secretary shall not extend a time period under subparagraph (A) by more than 4 years. (g) The Secretary may vest fee title or other property interests acquired under cost-share clean coal power initiative agreements under this part in any entity, including the United States. (h) For a period not exceeding 5 years after completion of the operations phase of a cooperative agreement, the Secretary may provide appropriate protections (including exemptions from subchapter II of chapter 5 of title 5) against the dissemination of information that— (1) results from demonstration activities carried out under the clean coal power initiative program; and (2) would be a trade secret or commercial or financial information that is privileged or confidential if the information had been obtained from and first produced by a non-Federal party participating in a clean coal power initiative project. (i) No technology, or level of emission reduction, solely by reason of the use of the technology, or the achievement of the emission reduction, by 1 or more facilities receiving assistance under this Act, shall be considered to be— (1) adequately demonstrated for purposes of section 7411 of this title; (2) achievable for purposes of section 7479 of this title; or (3) achievable in practice for purposes of section 7501 of this title.