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S. 3254 (is) To provide assistance to East Timor to facilitate the transition of East Timor to an independent nation, and for other purposes. [Introduced in Senate] ...


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106th CONGRESS
  2d Session
                                S. 3253

To authorize Department of Energy programs 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.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            October 27 (legislative day, September 22), 2000

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

_______________________________________________________________________

                                 A BILL


 
To authorize Department of Energy programs 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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``National 
Electricity and Environmental Technology Act''.
    (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.
 TITLE I--ACCELERATED TECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAM FOR 
 ADVANCED CLEAN COAL TECHNOLOGY FOR COAL-BASED ELECTRICITY GENERATING 
                               FACILITIES

Sec. 101. Purpose.
Sec. 102. Definitions.
Subtitle A--National Coal-Based Technology Development and Applications 
                                Program

Sec. 111. Cost and performance goals.
Sec. 112. Study.
Sec. 113. Technology research and development program.
Sec. 114. Authorization of appropriations.
               Subtitle B--Plant Technology Applications

Sec. 121. Plant technology applications.
Sec. 122. Financial assistance.
Sec. 123. Funding.
TITLE II--CREDIT FOR EMISSION REDUCTIONS AND EFFICIENCY IMPROVEMENTS IN 
         EXISTING COAL-BASED ELECTRICITY GENERATION FACILITIES

Sec. 201. Credit for investment in qualifying clean coal technology.
Sec. 202. Credit for production from a qualifying clean coal technology 
                            unit.
  TITLE III--INCENTIVES FOR EARLY COMMERCIAL APPLICATIONS OF ADVANCED 
                        CLEAN COAL TECHNOLOGIES

Sec. 301. Credit for investment in qualifying advanced clean coal 
                            technology.
Sec. 302. Credit for production from qualifying advanced clean coal 
                            technology.
Sec. 303. Risk pool for qualifying advanced clean coal technology.
           TITLE IV--TREATMENT OF CERTAIN TAX-EXEMPT ENTITIES

Sec. 401. Refundable credits for electric cooperatives or publicly 
                            owned electric utilities.
Sec. 402. Offset of certain annual payment obligations in lieu of 
                            qualifying clean coal technology credits.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) reliable, affordable, increasingly clean electricity 
        will continue to power the growing United States economy;
            (2) an increasing use of electrotechnologies, the desire 
        for continuous environmental improvement, a more competitive 
        electricity market, and concerns about rising energy prices add 
        importance to the need for reliable, affordable, increasingly 
        clean electricity;
            (3) coal, which, as of the date of enactment of this Act, 
        accounts for more than \1/2\ of all electricity generated in 
        the United States, is the most abundant fossil energy resource 
        of the United States;
            (4) coal comprises more than 85 percent of all fossil 
        resources in the United States and exists in quantities 
        sufficient to supply the United States for 250 years at current 
        usage rates;
            (5) investments in electricity generating facility 
        emissions control technology over the past 30 years have 
        reduced the aggregate emissions of pollutants from coal-based 
        generating facilities by 21 percent, even as coal use for 
        electricity generation has nearly tripled;
            (6) continuous improvement in efficiency and environmental 
        performance from electricity generating facilities would allow 
        continued use of coal and preserve less-abundant energy 
        resources for other energy uses;
            (7) new technologies for converting coal into electricity 
        can effectively eliminate health-threatening emissions and 
        improve efficiency by as much as 50 percent, but initial 
        commercial deployment of new coal generation technologies 
        entails significant risk that generators may be unable to 
        accept in a newly competitive electricity market; and
            (8) continued environmental improvement in coal-based 
        generation through continued research, development, and 
        demonstration toward an ultimate goal of near-zero emissions is 
        important and desirable.
    (b) Purposes.--The purposes of this Act are--
            (1) to authorize Department of Energy programs to develop 
        and implement an accelerated research and development program 
        for advanced clean coal technologies for use in coal-based 
        electricity generating facilities; and
            (2) to amend the Internal Revenue Code of 1986--
                    (A) to provide financial incentives to encourage 
                the retrofitting, repowering, or replacement of coal-
                based electricity generating facilities to protect the 
                environment and improve efficiency;
                    (B) to encourage the early commercial application 
                of advanced clean coal technologies; and
                    (C) to develop technologies that provide 
                flexibility in obtaining environmental objectives at 
                the lowest possible cost in order to provide 
                electricity to the consumer at the lowest possible 
                cost;
so as to allow coal to help meet the growing need of the United States 
for the generation of reliable and affordable electricity.

 TITLE I--ACCELERATED TECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAM FOR 
 ADVANCED CLEAN COAL TECHNOLOGY FOR COAL-BASED ELECTRICITY GENERATING 
                               FACILITIES

SEC. 101. PURPOSE.

    The purpose of this title is to direct the Secretary--
            (1) to establish a coal-based technology development 
        program designed to achieve cost and performance goals;
            (2) to carry out a study to identify technologies that may 
        be capable of achieving the cost and performance goals and for 
        other purposes; and
            (3) to implement a research, development, and demonstration 
        program to develop and demonstrate in commercial-scale 
        applications advanced clean coal technologies for coal-fired 
        generating units constructed before the date of enactment of 
        this Act.

SEC. 102. DEFINITIONS.

    In this title:
            (1) Cost and performance goals.--The term ``cost and 
        performance goals'' means the cost and performance goals 
        established under section 111.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

Subtitle A--National Coal-Based Technology Development and Applications 
                                Program

SEC. 111. COST AND PERFORMANCE GOALS.

    (a) In General.--The Secretary shall perform an assessment that 
identifies costs and associated performance 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 consult with representatives of--
            (1) the United States coal industry;
            (2) State coal development agencies;
            (3) the electric utility industry;
            (4) railroads and other transportation industries;
            (5) manufacturers of equipment using advanced coal 
        technologies;
            (6) organizations representing workers; and
            (7) organizations formed to--
                    (A) further the goals of environmental protection;
                    (B) promote the use of coal; or
                    (C) promote the development and use of advanced 
                coal technologies.
    (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. 112. STUDY.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary, in cooperation with the Secretary of the 
Interior and the Administrator of the Environmental Protection Agency, 
shall conduct a study to--
            (1) identify technologies 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 the cost and performance goals; and
            (3) develop recommendations for technology development 
        programs, which the Department of Energy could carry out in 
        cooperation with industry, to develop and demonstrate the cost 
        and performance goals.
    (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 111(b).

SEC. 113. TECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAM.

    (a) In General.--The Secretary shall carry out a program of 
research on and development, demonstration, and commercial application 
of coal-based technologies under--
            (1) this Act;
            (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
            (4) title XVI of the Energy Policy Act of 1992 (42 U.S.C. 
        13381 et seq.).
    (b) Conditions.--The research, development, demonstration, and 
commercial application programs identified in section 112(a) shall be 
designed to achieve the cost and performance goals.
    (c) Report.--Not later than 18 months after the date of enactment 
of this Act, the Secretary shall submit to the President and Congress a 
report containing--
            (1) a description of the programs that, as of the date of 
        the report, are in effect or are to be carried out by the 
        Department of Energy to support technologies that are designed 
        to achieve the cost and performance goals; and
            (2) recommendations for additional authorities required to 
        achieve the cost and performance goals.

SEC. 114. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated to carry 
out this subtitle $100,000,000 for each of fiscal years 2002 through 
2012, to remain available until expended.
    (b) Conditions of Authorization.--The authorization of 
appropriations under subsection (a)--
            (1) shall be in addition to authorizations of 
        appropriations in effect on the date of enactment of this Act; 
        and
            (2) shall not be a cap on Department of Energy fossil 
        energy research and development and clean coal technology 
        appropriations.

               Subtitle B--Plant Technology Applications

SEC. 121. PLANT TECHNOLOGY APPLICATIONS.

    (a) In General.--The Secretary shall carry out a program of 
research, development, demonstration, and commercial application for 
the purpose of developing economically and environmentally acceptable 
advanced technologies for use of coal at or within electricity 
generating facilities that use coal as the primary feedstock on the 
date of enactment of this Act.
    (b) Plan.--Not later than 120 days after the date of enactment of 
this Act, the Secretary shall submit to Congress a plan to carry out 
subsection (a) that includes a description of--
            (1) the program elements and management structure to be 
        used;
            (2) the technical milestones to be achieved with respect to 
        each of the advanced coal-based technologies included in the 
        plan; and
            (3) the research, development, and demonstration activities 
        proposed to be conducted at new or existing coal-based 
        electricity generating units having at least 50 megawatts 
        nameplate rating, including improvements designed to allow the 
        units to provide--
                    (A) an overall efficiency improvement of not less 

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