S.Amdt. 4943

1. 1

   Change 1: Adds TITLE XVIII--CLEAN ENERGY SOLUTIONS RESEARCH, DEVELOPMENT, AND DEPLOYMENT at the end of the bill

   Adds a title

   In S. 3036 · Placed on Calendar Senate

   (3) in subparagraph (A), by striking "air pollution which" and inserting "air pollution or water pollution (including any degradation in the quality of groundwater) that".

   Inserted: TITLE XVIII--CLEAN ENERGY SOLUTIONS RESEARCH, DEVELOPMENT, AND DEPLOYMENT

   Inserted: SEC. 1801. DEFINITIONS.

   Inserted: In this title:

   Inserted: (1) Advanced biofuel.--The term "advanced biofuel" has the meaning given the term in section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)).

   Inserted: (2) Advanced vehicle battery.--The term "advanced vehicle battery" means an electrochemical energy storage system powered directly by electrical current that provides motive power to an electric vehicle, hybrid electric vehicle, or plug-in hybrid electric vehicle.

   Inserted: (3) Electric vehicle.--The term "electric vehicle" means an on-road light-duty or non-road vehicle that uses an advanced vehicle battery or a fuel cell (as defined in section 803 of the Spark M. Matsunaga Hydrogen Act of 2005 (42 U.S.C. 16152)).

   Inserted: (4) Hybrid electric vehicle.--The term "hybrid electric vehicle" means a new qualified hybrid motor vehicle (as defined in section 30B(d)(3) of the Internal Revenue Code of 1986).

   Inserted: (5) IGCC.--The term "IGCC" means integrated coal gasification combined cycle.

   Inserted: (6) Plug-in hybrid electric vehicle.--The term "plug-in hybrid electric vehicle" means a hybrid electric vehicle that--

   Inserted: (A) draws motive power from a battery with a capacity of at least 4 kilowatt-hours;

   Inserted: (B) can be recharged from an external source of electricity for motive power; and

   Inserted: (C) is a light-, medium-, or heavy-duty motor vehicle or nonroad vehicle (as those terms are defined in section 216 of the Clean Air Act (42 U.S.C. 7550)).

   Show 222 more inserted paragraphsShow less

   Inserted: (7) Renewable fuel.--The term "renewable fuel" means any fuel--

   Inserted: (A) at least 85 percent of the volume of which consists of ethanol or advanced biofuel; or

   Inserted: (B) any mixture of biodiesel and diesel or renewable diesel (as defined in regulations adopted pursuant to section 211(o) of the Clean Air Act (part 80 of title 40 Code of Federal Regulations (as in effect on the date of enactment of this Act))), determined without regard to any use of kerosene and containing at least 20 percent biodiesel or renewable diesel.

   Inserted: (8) Secretary.--The term "Secretary" means the Secretary of Energy.

   Inserted: SEC. 1802. COORDINATION WITH EXISTING PROGRAMS.

   Inserted: In carrying out this title, the Secretary, in consultation with the heads of other appropriate Federal agencies, shall take into consideration the ongoing research, development, demonstration, and deployment activities associated with this title to avoid duplication of the ongoing activities while expanding and accelerating activities as required by this title.

   Inserted: SEC. 1803. PROGRESS REPORT.

   Inserted: Not later than 1 year after the date of enactment of this Act and every 2 calendar years thereafter, the Secretary shall submit to each committee of Congress with jurisdiction over greenhouse gas emissions and global climate change a report and detailed analysis of the status of implementation of this title with an emphasis on the widespread commercial availability, affordability, and maintenance of products that use the technologies and activities advanced under this title.

   Inserted: Subtitle A--Reduced Carbon Emissions Through Clean Vehicles SEC. 1811. STATEMENT OF POLICY.

   Inserted: It is the policy of the United States to reduce carbon emissions from fossil-based transportation fuel usage by aggressively promoting advanced vehicle battery technology and domestic manufacturing capability necessary for widespread commercial viability of hybrid electric vehicles, plug-in hybrid electric vehicles, and electric vehicles.

   Inserted: SEC. 1812. ADVANCED VEHICLE BATTERY RESEARCH AND DEVELOPMENT.

   Inserted: (a) In General.--The Secretary shall--

   Inserted: (1) expand and accelerate research and development efforts for advanced vehicle batteries; and

   Inserted: (2) emphasize lower cost enablers for abuse-tolerant batteries with the appropriate balance of power and energy capacity to meet market requirements.

   Inserted: (b) Authorization of Appropriations.--There is authorized to be appropriated to carry out this section $100,000,000 for each of fiscal years 2010 through 2014.

   Inserted: SEC. 1813. DOMESTIC ADVANCED VEHICLE BATTERY MANUFACTURING PROCESS IMPROVEMENTS.

   Inserted: (a) In General.--The Secretary shall establish a program to provide grants to improve domestic manufacturing equipment and assembly process capabilities for advanced vehicle batteries and components that--

   Inserted: (1) reduce manufacturing time;

   Inserted: (2) reduce manufacturing energy intensity;

   Inserted: (3) reduce negative environmental impact or byproducts; or

   Inserted: (4) increase spent battery or component recycling.

   Inserted: (b) Inclusion.--The Secretary shall include in the program established under subsection (a) grants to support the development and deployment of domestic high-speed, automated, production-scale advanced vehicle battery and component manufacturing equipment.

   Inserted: (c) Cost Sharing.--The Secretary shall require that not less than 20 percent of the cost of a project funded by a grant under this section be provided by a non-Federal source.

   Inserted: (d) Authorization of Appropriations.--There is authorized to be appropriated to carry out this section $250,000,000 for each of fiscal years 2010 through 2014.

   Inserted: SEC. 1814. DOMESTIC ADVANCED VEHICLE BATTERY MANUFACTURING SUPPLY BASE EXPANSION.

   Inserted: (a) In General.--The Secretary shall establish a program to provide grants to expand the domestic manufacturing supply base for advanced vehicle batteries and components with a particular emphasis on facilities that manufacture or assemble--

   Inserted: (1) cell materials, including--

   Inserted: (A) substrates and active materials for electrodes;

   Inserted: (B) carbonaceous and graphite additives;

   Inserted: (C) separators;

   Inserted: (D) electrolytes; and

   Inserted: (E) roll stock aluminum and copper; and

   Inserted: (2) system components, including--

   Inserted: (A) power electronics;

   Inserted: (B) drivetrain electromechanical devices;

   Inserted: (C) a secure supply of raw battery materials; and

   Inserted: (D) battery management systems, including software development.

   Inserted: (b) Cost Sharing.--The Secretary shall require that not less than 20 percent of the cost of a project funded by a grant under this section be provided by a non-Federal source.

   Inserted: (c) Authorization of Appropriations.--There is authorized to be appropriated to carry out this section $650,000,000 for each of fiscal years 2010 through 2014.

   Inserted: SEC. 1815. OPERATING PLAN.

   Inserted: Not later than 120 days after the date of enactment of this Act and with the submission of the budget of the United States Government by the President under section 1105 of title 31, United States Code, for each fiscal year thereafter, the Secretary shall submit to the appropriate authorizing and appropriations committees of Congress an operating plan for spending the full amount of funds authorized for sections 1812, 1813, and 1814.

   Inserted: Subtitle B--Reduced Carbon Emissions Through Renewable and Hydrogen Fuel Infrastructure Expansion SEC. 1821. STATEMENT OF POLICY.

   Inserted: It is the policy of the United States to reduce emissions from fossil-based transportation fuel use by aggressively deploying renewable fuel infrastructure to achieve the widespread use of renewable fuels.

   Inserted: SEC. 1822. EXPANDED RENEWABLE FUEL INFRASTRUCTURE GRANTS.

   Inserted: (a) Infrastructure Development Grants.--The Secretary shall expand and accelerate the program for making grants for providing assistance to retail and wholesale motor fuel dealers or other entities for the installation, replacement, or conversion of motor fuel storage and dispensing infrastructure to be used exclusively to store and dispense renewable fuel.

   Inserted: (b) Limitations.--Assistance provided under this section shall not exceed the greater of--

   Inserted: (1) 50 percent of the estimated cost of the installation, replacement, or conversion of motor fuel storage and dispensing infrastructure; or

   Inserted: (2) $50,000 for a combination of equipment at any 1 retail outlet location.

   Inserted: (c) Authorization of Appropriations.--There is authorized to be appropriated to carry out this section $500,000,000 for each of fiscal years 2010 through 2014.

   Inserted: SEC. 1823. HYDROGEN FUELING PUMPS.

   Inserted: (a) Grant Program.--The Secretary of Transportation shall establish a program under which the Secretary of Transportation shall provide grants with the goal of establishing, by calendar year 2013, at least 100 publicly available hydrogen fueling pumps at retail gas stations in at least 2 selected regions.

   Inserted: (b) Required Contribution.--As a condition of receiving a grant under subsection (a) for a hydrogen fueling pump, the owner or operator of a service station shall be required to contribute, or obtain funding from a State or local government entity for, at least 10 percent of the cost of the hydrogen fueling pump.

   Inserted: (c) Authorization of Appropriations.--There is authorized to be appropriated to the Secretary of Transportation to carry out this section $85,000,000 for each of fiscal years 2009 through 2013.

   Inserted: SEC. 1824. FEDERAL ACQUISITION OF HYDROGEN FUEL CELL VEHICLES.

   Inserted: There is authorized to be appropriated to the Administrator of General Services for the acquisition of hydrogen fuel cell vehicles for use by Federal agencies $85,000,000 for each of fiscal years 2012 through 2014.

   Inserted: Subtitle C--Reduced Carbon Emissions Through Electricity Transmission and Management Efficiency SEC. 1831. STATEMENT OF POLICY.

   Inserted: It is the policy of the United States to reduce carbon emissions from electric power production through electricity transmission, distribution, and management efficiency gains.

   Inserted: SEC. 1832. ELECTRICITY TRANSMISSION, DISTRIBUTION, AND MANAGEMENT EFFICIENCY RESEARCH AND DEVELOPMENT.

   Inserted: (a) Superconducting Transmission.--

   Inserted: (1) In general.--In accordance with paragraph (2), the Secretary shall expand and accelerate efforts to conduct research and develop high-temperature superconducting power equipment that, in comparison to conventional copper wires--

   Inserted: (A) increases electricity carrying capacity;

   Inserted: (B) increases fault current limiting and overload protection;

   Inserted: (C) reduces energy loss due to electrical resistance;

   Inserted: (D) reduces equipment footprints; or

   Inserted: (E) reduces environmental impacts.

   Inserted: (2) Required efforts.--In expanding and accelerating efforts described in paragraph (1), the Secretary shall include efforts to improve--

   Inserted: (A) the nanoscale engineering of high-temperature superconducting wire;

   Inserted: (B) the production of high-temperature superconducting wire in long lengths in a cost-effective manner;

   Inserted: (C) the coating and preparation of underlying high-temperature superconducting wire metal substrate;

   Inserted: (D) the joining of high-temperature superconducting conductors to normal conductors; and

   Inserted: (E) the minimization of electrical loss due to alternating currents.

   Inserted: (b) Transformers.--

   Inserted: (1) In general.--In accordance with paragraph (2), the Secretary shall expand and accelerate efforts to conduct research and develop efficiency improvements in electricity distribution transformers.

   Inserted: (2) Required efforts.--In expanding and accelerating efforts described in paragraph (1), the Secretary shall include efforts--

   Inserted: (A) to improve initial and life-cycle costs;

   Inserted: (B) to improve utilization; and

   Inserted: (C) to make metallurgical advances in transformer components.

   Inserted: (c) Grid Communication.--

   Inserted: (1) In general.--In accordance with paragraph (2), the Secretary shall expand and accelerate efforts to conduct research and develop cost-effective improvements in grid communication technology.

   Inserted: (2) Required components.--In expanding and accelerating efforts described in paragraph (1), the Secretary shall include efforts to research and develop--

   Inserted: (A) remote sensors (including nanosensors) to be used in the electrical grid to enable the timely control, identification, and correction of temperature, faults, and other adverse online effects;

   Inserted: (B) smart meters that have the capability to be used to carry out real-time data acquisition and dynamic energy management;

   Inserted: (C) grid management, distribution, and operation systems; and

   Inserted: (D) interoperability standards to ensure the integration of smart grid sensor, meter, and management systems.

   Inserted: (d) End-Use Technologies.--The Secretary shall expand and accelerate efforts to conduct research and develop consumer technologies to reduce electricity usage, with a particular emphasis on smart thermostats that enable consumers to change energy usage based on--

   Inserted: (1) the time of day;

   Inserted: (2) peak energy usage times; or

   Inserted: (3) any other information made available through grid communication technology.

   Inserted: (e) Operating Plan.--Not later than 120 days after the date of enactment of this Act and with the submission of the budget of the United States Government by the President under section 1105 of title 31, United States Code, for each fiscal year thereafter, the Secretary shall submit to the appropriate authorizing and appropriations committees of Congress an operating plan for spending the full amount of funds made available for this section.

   Inserted: (f) Authorization of Appropriations.--There is authorized to be appropriated to carry out this section $250,000,000 for each of fiscal years 2010 through 2014.

   Inserted: SEC. 1833. ELECTRICITY TRANSMISSION, DISTRIBUTION, AND MANAGEMENT EFFICIENCY TECHNOLOGY DEPLOYMENT.

   Inserted: (a) In General.--The Secretary shall establish a program under which the Secretary shall provide grants for the deployment of electricity transmission, distribution, and management efficiency technologies.

   Inserted: (b) Priority.--In providing grants under this section, the Secretary shall give priority to applications with proposed projects that--

   Inserted: (1) reduce congestion in transmission corridors; or

   Inserted: (2) relieve demand for electricity generation growth in areas with inadequate access to--

   Inserted: (A) renewable energy sources; or

   Inserted: (B) low-carbon fuel sources.

   Inserted: (c) Cost Sharing.--Section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to any grant made by the Secretary in carrying out this section.

   Inserted: (d) Authorization of Appropriations.--There is authorized to be appropriated to carry out this section $450,000,000 for each of fiscal years 2010 through 2014.

   Inserted: SEC. 1834. STATE CONSIDERATION OF HIGH-TEMPERATURE SUPERCONDUCTIVITY POWER EQUIPMENT.

   Inserted: Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) (as amended by sections 532(a) and 1307(a) of the Energy Independence and Security Act of 2007 (121 Stat. 1665, 1791)) is amended--

   Inserted: (1) by redesignating paragraphs (16) and (17) (as added by section 1307(a) of that Act) as paragraphs (18) and (19), respectively; and

   Inserted: (2) by adding at the end the following:

   Inserted: "(20) Recovery of costs relating to deployment of power equipment.--Each State shall consider authorizing each electric utility of the State to recover from ratepayers any costs of the electric utility relating to the deployment of high-temperature superconductivity power equipment.".

   Inserted: Subtitle D--Reduced Carbon Emissions Through Residential and Commercial Energy Efficiency SEC. 1841. STATEMENT OF POLICY.

   Inserted: It is the policy of the United States to reduce carbon emissions from electric power production through more efficient residential and commercial energy using technologies.

   Inserted: SEC. 1842. RESIDENTIAL AND COMMERCIAL ENERGY EFFICIENCY RESEARCH AND DEVELOPMENT.

   Inserted: (a) In General.--The Secretary shall expand and accelerate efforts to conduct research and develop methods--

   Inserted: (1) to reduce installation costs of geothermal heat pumps for new and existing residences and businesses;

   Inserted: (2) to improve the widespread availability and reliability of high-efficiency heat pump water heaters;

   Inserted: (3) to advance the efficiency and cost-effectiveness of fluorescent, high-intensity discharge, and light-emitting diode lamps; and

   Inserted: (4) to improve small-scale battery and energy storage technologies.

   Inserted: (b) Operating Plan.--Not later than 120 days after the date of enactment of this Act and with the submission of the budget of the United States Government by the President under section 1105 of title 31, United States Code, for each fiscal year thereafter, the Secretary shall submit to the appropriate authorizing and appropriations committees of Congress an operating plan for spending the full amount of funds made available for this section.

   Inserted: (c) Authorization of Appropriations.--There is authorized to be appropriated to carry out this section $100,000,000 for each of fiscal years 2010 through 2014.

   Inserted: Subtitle E--Reduced Carbon Emissions Through Increased Renewable Energy Storage SEC. 1851. STATEMENT OF POLICY.

   Inserted: It is the policy of the United States to reduce carbon emissions through the increased ability to store energy generated from renewable energy sources.

   Inserted: SEC. 1852. RENEWABLE ENERGY STORAGE RESEARCH AND DEVELOPMENT.

   Inserted: (a) In General.--The Secretary shall expand and accelerate efforts to conduct research and develop large megawatt level and smaller distributed electricity storage systems--

   Inserted: (1) to reduce electricity transmission congestion;

   Inserted: (2) to manage peak loads;

   Inserted: (3) to make renewable electricity sources more dispatchable; and

   Inserted: (4) to increase the reliability of the electric grid.

   Inserted: (b) Operating Plan.--Not later than 120 days after the date of enactment of this Act and with the submission of the budget of the United States Government by the President under section 1105 of title 31, United States Code, for each fiscal year thereafter, the Secretary shall submit to the appropriate authorizing and appropriations committees of Congress an operating plan for spending the full amount of funds authorized for this section.

   Inserted: (c) Authorization of Appropriations.--There is authorized to be appropriated to carry out this section $100,000,000 for each of fiscal years 2010 through 2014.

   Inserted: SEC. 1853. RENEWABLE ENERGY STORAGE DEPLOYMENT.

   Inserted: (a) In General.--The Secretary shall establish a program under which the Secretary shall provide grants for the deployment of large megawatt level and smaller distributed electricity storage systems.

   Inserted: (b) Priority.--In providing grants under this section, the Secretary shall give priority, in descending order of importance, to applications with proposed projects that--

   Inserted: (1) make renewable electricity sources more dispatchable;

   Inserted: (2) reduce electricity transmission congestion;

   Inserted: (3) increase the reliability of the electric grid; or

   Inserted: (4) manage peak loads.

   Inserted: (c) Cost Sharing.--Section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to any grant made under this section.

   Inserted: (d) Authorization of Appropriations.--There is authorized to be appropriated to carry out this section $500,000,000 for each of fiscal years 2010 through 2014.

   Inserted: SEC. 1854. STATE CONSIDERATION OF ENERGY STORAGE FOR ELECTRIC POWER.

   Inserted: Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) (as amended by section 1834) is amended by adding at the end the following:

   Inserted: "(21) Recovery of costs relating to deployment of storage systems.--Each State shall consider authorizing each electric utility of the State to recover from ratepayers any costs of the electric utility relating to the deployment of energy storage systems for electric power.".

   Inserted: Subtitle F--Reduced Carbon Emissions Through Clean Coal Technologies SEC. 1861. STATEMENT OF POLICY.

   Inserted: It is the policy of the United States to reduce carbon emissions from technology improvements to coal-fired power plants that will reduce the quantity of coal burned and carbon dioxide emitted per unit of power produced.

   Inserted: SEC. 1862. CLEAN COAL RESEARCH AND DEVELOPMENT.

   Inserted: (a) In General.--The Secretary shall expand and accelerate efforts to conduct research and develop technologies that reduce carbon dioxide emissions from coal-fired facilities with an emphasis on commercial viability and reliability.

   Inserted: (b) Short-, Medium- and Long-Term Technology Areas.--The Secretary shall emphasize technologies that reduce carbon dioxide emissions in the short-, medium-, and long-term time frames, including--

   Inserted: (1) innovations for existing power plants that reduce carbon dioxide emissions by energy efficiency increases or by capturing carbon emissions, including technologies that--

   Inserted: (A) reduce the quantity of fuel combusted per unit of electricity output;

   Inserted: (B) reduce parasitic power loss from carbon control technology;

   Inserted: (C) improve compression of the separated and captured carbon dioxide;

   Inserted: (D) reuse or reduce water consumption and withdrawal; and

   Inserted: (E) capture carbon dioxide post-combustion from flue gas, such as through the use of ammonia-based, aqueous amine or ionic liquid solutions or other methods;

   Inserted: (2) new combustion systems, including--

   Inserted: (A) oxyfuel combustion that burns fuel in the presence of oxygen and recirculated flue gas instead of air producing a concentrated stream of carbon dioxide that can be readily captured for storage or use;

   Inserted: (B) chemical looping combustion that burns fuel in the presence of a solid oxygen carrier instead of air producing concentrated stream of carbon dioxide that can be readily captured for storage or use;

   Inserted: (C) high-temperature and pressure steam systems, such as ultra supercritical steam generation, that result in high net plant efficiency and reduced fuel consumption, thus producing less carbon dioxide per unit of energy;

   Inserted: (D) other innovative carbon dioxide control technologies appropriate for new combustion systems; and

   Inserted: (E) high temperature and high pressure materials that will result in much higher plant efficiencies and carbon dioxide emission reductions;

   Inserted: (3) innovations for IGCC systems that build on the ability of the IGCC to separate pollutants and carbon emissions from gas streams, including--

   Inserted: (A) advanced membrane technology for carbon dioxide separation;

   Inserted: (B) improved air separation systems;

   Inserted: (C) improved compression for the separated and captured carbon dioxide; and

   Inserted: (D) other innovative carbon dioxide control technologies appropriate for IGCC systems;

   Inserted: (4) advanced combustion turbines, including--

   Inserted: (A) ultra low emission hydrogen turbines; and

   Inserted: (B) oxycoal combustion turbines; and

   Inserted: (5) sequestration of captured carbon in geological formations, including--

   Inserted: (A) plume tracking;

   Inserted: (B) carbon dioxide leak detection and mitigation;

   Inserted: (C) carbon dioxide fate and transport models; and

   Inserted: (D) site evaluation instrumentation.

   Inserted: (c) Authorization of Appropriations.--There are authorized to be appropriated to carry out this section, to remain available until expended--

   Inserted: (1) for innovations at power plants in operation as of the date of enactment of this Act $450,000,000 for the period of fiscal years 2009 through 2020;

   Inserted: (2) for new combustion systems $450,000,000 for the period of fiscal years 2009 through 2025;

   Inserted: (3) for IGCC systems $850,000,000 for the period of fiscal years 2009 through 2025;

   Inserted: (4) for advanced combustion turbines $350,000,000 for the period of fiscal years 2009 through 2025;

   Inserted: (5) for carbon storage $400,000,000 for the period of fiscal years 2009 through 2020.

   Inserted: SEC. 1863. CLEAN COAL DEMONSTRATION.

   Inserted: (a) In General.--The Secretary shall expand and accelerate the demonstration of technologies that reduce carbon dioxide emissions from coal-fired facilities by demonstrating, at a minimum-- (1) through facilities in operation as of the date of enactment of this Act--

   Inserted: (A) post-combustion carbon dioxide capture at pilot scale at not less than 2 facilities, the award of contracts for which shall be completed by 2010;

   Inserted: (B) oxycoal combustion at commercial scale retrofitted to not less than 1 facility, the award of contracts for which shall be completed by 2012;

   Inserted: (C) post-combustion carbon dioxide capture at commercial scale retrofitted to not less than 1 facility, the award of contracts for which shall be completed by 2012;

   Inserted: (D) heat rate and efficiency improvements at commercial scale at not less than 2 facilities, the award of contracts for which shall be completed by 2012; and

   Inserted: (E) water consumption reduction at commercial scale at not less than 2 facilities, the award of contracts for which shall be completed by 2012;

   Inserted: (F) post-combustion carbon dioxide capture at pilot scale with technologies other than technologies demonstrated under subparagraphs (A) and (C) at not less than 1 facility, the award of contracts for which shall be completed by 2012;

   Inserted: (G) heat rate and efficiency improvements at commercial scale at not less than 3 facilities, the award of contracts for which shall be completed by 2014;

   Inserted: (H) water consumption reduction at commercial scale at not less than 3 facilities, the award of contracts for which shall be completed by 2014; and

   Inserted: (I) post-combustion carbon dioxide capture at pilot scale with technologies other than technologies demonstrated under subparagraphs (A), (C), and (F) at not less than 1 facility, the award of contracts for which shall be completed by 2016; (2) through new coal combustion facilities that include carbon capture--

   Inserted: (A) oxycoal combustion at pilot scale at not less than 1 facility, the award of contracts for which shall be completed by 2010;

   Inserted: (B) post-combustion carbon dioxide capture at pilot scale at not less than 1 facility, the award of contracts for which shall be completed by 2012;

   Inserted: (C) oxycoal combustion at commercial scale at not less than 1 facility, the award of contracts for which shall be completed by 2012;

   Inserted: (D) supercritical pulverized coal combustion with advanced emission controls and partial carbon dioxide capture at commercial scale at not less than 1 facility, the award of contracts for which shall be completed by 2012;

   Inserted: (E) oxycoal supercritical circulating fluidized bed combustion at commercial scale at not less than 1 facility, the award of contracts for which shall be completed by 2012;

   Inserted: (F) post-combustion carbon dioxide capture at commercial scale at not less than 1 facility, the award of contracts for which shall be completed by 2012;

   Inserted: (G) post-combustion carbon dioxide capture at pilot scale with technologies other than technologies demonstrated under subparagraphs (B) or (F) at not less than 1 facility, the award of contracts for which shall be completed by 2014;

   Inserted: (H) ultra supercritical (1290F) pulverized coal combustion with near-zero emission controls and 90 percent carbon dioxide capture at commercial scale at not less than 1 facility, the award of contracts for which shall be completed by 2014;

   Inserted: (I) oxycoal combustion with an advanced oxygen separation system at commercial scale at not less than 1 facility, the award of contracts for which shall be completed by 2016;

   Inserted: (J) second generation post-combustion carbon dioxide capture at commercial scale at not less than 1 facility, the award of contracts for which shall be completed by 2014;

   Inserted: (K) chemical looping combustion at commercial scale at not less than 1 facility, the award of contracts for which shall be completed by 2018; and

   Inserted: (L) ultra advanced supercritical (1400F) combustion with near-zero emission controls and 90 percent integrated carbon dioxide capture at commercial scale at not less than 1 facility, the award of contracts for which shall be completed by 2018; (3) through IGCC with carbon capture--

   Inserted: (A) partial carbon dioxide capture without a water gas shift system at commercial scale at not less than 1 facility, the award of contracts for which shall be completed by 2010;

   Inserted: (B) using G class turbine at not less than 1 facility with at least 400 megawatts in generating capacity, the award of contracts for which shall be completed by 2012;

   Inserted: (C) using H class turbines at not less than 1 facility with at least 400 megawatts in generating capacity, the award of contracts for which shall be completed by 2014; and

   Inserted: (D) using H class turbines at not less than 1 facility with at least 400 megawatts in generating capacity, the award of contracts for which shall be completed by 2016. (4) through advanced turbines using--

   Inserted: (A) monitoring systems for advanced IGCC gas turbine at commercial scale at not less than 1 facility, the award of contracts for which shall be completed by 2010;

   Inserted: (B) advanced oxygen separation of at least 2,000 tons per day in size integrated with a combustion turbine at not less than 1 facility, the award of contracts for which shall be completed by 2012;

   Inserted: (C) an oxyfuel turbine of at least 50 megawatts in generating capacity, at not less than 1 facility, the award of contracts for which shall be completed by 2015;

   Inserted: (D) advanced oxygen separation of at least 2,000 tons per day in size integrated with a gas turbine at not less than 1 facility, the award of contracts for which shall be completed by 2015; and

   Inserted: (E) an oxyfuel turbine of at least 400 megawatts in generating capacity, at not less than 1 facility, the award of contracts for which shall be completed by 2020; and

   Inserted: (5) for storage of carbon dioxide captured through--

   Inserted: (A) a field test of sequestration of at least 1,000,000 tons of carbon dioxide per year in a saline formation, the award of contracts for which shall be completed by 2010;

   Inserted: (B) field tests of sequestration of at least 2,000,000 tons of carbon dioxide per year in a saline formation, the award of contracts for which shall be completed by 2012; and

   Inserted: (C) a field test of sequestration of at least 1,000,000 tons of carbon dioxide per year in a saline formation, the award of contracts for which shall be completed by 2014.

   Inserted: (b) Sequestration of Captured Carbon Dioxide.--In any demonstration referred to in subsection (a) that demonstrates carbon dioxide capture, the carbon dioxide capture shall be used for enhanced oil recovery, sequestered in geologically appropriate formations, or permanently sequestered or reused, with funds made available to carry out each such demonstration for the respective purpose of the demonstration.

   Inserted: (c) Authorization of Appropriations.--There are authorized to be appropriated to carry out this section, to remain available until expended--

   Inserted: (1) for demonstrations through facilities in operation as of the date of enactment of this Act $850,000,000 for the period of fiscal years 2009 through 2025;

   Inserted: (2) for new combustion systems $1,950,000,000 for the period of fiscal years 2009 through 2025;

   Inserted: (3) for IGCC systems $2,950,000,000 for the period of fiscal years 2009 through 2025;

   Inserted: (4) for advanced combustion turbines $400,000,000 for the period of fiscal years 2009 through 2025; and

   Inserted: (5) for carbon storage $1,350,000,000 for the period of fiscal years 2009 through 2020.

   Inserted: SEC. 1864. IDENTIFICATION OF CLEAN COAL RESEARCH, DEVELOPMENT, AND DEMONSTRATION PROJECTS.

   Inserted: (a) In General.--The Secretary shall take such steps as are necessary to carry out this subtitle.

   Inserted: (b) Public Comment.--Not later than 90 days after the date of enactment of this Act and every 2 years thereafter, the Secretary shall institute a public comment period of at least 45 days to assist the determination of the specific research, development, and demonstration projects required under this subtitle.

   Inserted: (c) Applications.--Not later than 120 days after the end of each public comment period required under subsection (b), the Secretary shall--

   Inserted: (1) publicly identify the specific types of projects that the Secretary intends to pursue to carry out this subtitle;

   Inserted: (2) establish selection criteria for the specific types of projects identified under paragraph (1); and

   Inserted: (3) establish an application process that allows persons that are interested in participating in projects identified under paragraph (1) to provide such information as the Secretary determines to be necessary.

   Original wording

   At the end, add the following:

2. 2

   Change 2: Replaces “part C of the Safe Drinking Water Act (42 U.S.C. 300h et seq.)” with “subtitle C of title X”

   ReplacesPage 310, lines 1–3Printed page

   [struck: part C of the Safe Drinking Water Act (42 U.S.C. 300h et seq.)][inserted: subtitle C of title X]

   Original wording

   On page 310, lines 1 through 3, strike “part C of the Safe Drinking Water Act (42 U.S.C. 300h et seq.)” and insert “subtitle C of title X”.

3. 3

   Change 3: Rewrites page 318, line 6 through page 320, line 7

   ReplacesPrinted page

   Removes page 318, line 6 through page 320, line 7 of the printed bill. See that page

   Inserted: SEC. 1021. CARBON SEQUESTRATION AND CAPTURE.

   Inserted: (a) Definitions.--In this section:

   Inserted: (1) Anthropogenic.--The term "anthropogenic" means produced or caused by human activity.

   Inserted: (2) Carbon dioxide.--The term "carbon dioxide" means anthropogenically sourced carbon dioxide that is of sufficient purity and quality as to not compromise the safety and efficiency of any reservoir in which the carbon dioxide is stored.

   Inserted: (3) Federal agency.--The term "Federal agency" means any department, agency, or instrumentality of the United States.

   Inserted: (4) Geological storage.--The term "geological storage" means permanent or short-term underground storage of carbon dioxide in a reservoir.

   Inserted: (5) Person.--

   Inserted: (A) In general.--The term "person" means an individual, corporation, company (including a limited liability company), association, partnership, State, municipality, or Federal agency.

   Inserted: (B) Inclusions.--The term "person" includes an officer, employee, and agent of any corporation, company (including a limited liability company), association, partnership, State, municipality, or Federal agency.

   Inserted: (6) Reservoir.--

   Inserted: (A) In general.--The term "reservoir" means any subsurface sedimentary stratum, formation, aquifer, or cavity or void (whether natural or artificially created) that is suitable for, or capable of being made suitable for, the injection and storage of carbon dioxide.

   Inserted: (B) Inclusions.--The term "reservoir" includes--

   Show 161 more inserted paragraphsShow less

   Inserted: (i) an oil and gas reservoir;

   Inserted: (ii) a saline formation or coal seam; and

   Inserted: (iii) the seabed and subsoil of a submarine area.

   Inserted: (7) State.--

   Inserted: (A) In general.--The term "State" means--

   Inserted: (i) each of the several States of the United States;

   Inserted: (ii) the District of Columbia;

   Inserted: (iii) the Commonwealth of Puerto Rico;

   Inserted: (iv) Guam;

   Inserted: (v) American Samoa;

   Inserted: (vi) the Commonwealth of the Northern Mariana Islands;

   Inserted: (vii) the Federated States of Micronesia;

   Inserted: (viii) the Republic of the Marshall Islands;

   Inserted: (ix) the Republic of Palau; and

   Inserted: (x) the United States Virgin Islands.

   Inserted: (B) Inclusions.--The term "State" includes all territorial water, seabed, and subsoil of submarine areas of each State.

   Inserted: (8) State regulatory agency.--The term "State regulatory agency" means the agency designated by the Governor of a State to administer a carbon dioxide storage program of the State.

   Inserted: (9) Storage facility.--

   Inserted: (A) In general.--The term "storage facility" means--

   Inserted: (i) an underground reservoir, underground equipment, and surface structures and equipment used in an operation to store carbon dioxide in a reservoir; and

   Inserted: (ii) any other facilities that the Administrator may include by regulation or permit.

   Inserted: (B) Exclusions.--The term "storage facility" does not include pipelines used to transport the carbon dioxide from 1 or more capture facilities to the storage and injection site.

   Inserted: (10) Storage operator.--The term "storage operator" means any person or other entity authorized by the Administrator or State regulatory agency to operate a storage facility.

   Inserted: (11) Underground reservoir.--The term "underground reservoir", with respect to a storage facility, includes any necessary and reasonable areal buffer and subsurface monitoring zones that are--

   Inserted: (A) designated by the Administrator or State regulatory agency for the purpose of ensuring the safe and efficient operation of the storage facility for the storage of carbon dioxide; and

   Inserted: (B) selected to protect against pollution, invasion, and escape or migration of the stored carbon dioxide.

   Inserted: (b) State Carbon Dioxide Geological Storage Programs.--

   Inserted: (1) Regulations.--

   Inserted: (A) In general.--The Administrator shall--

   Inserted: (i) not later than 180 days after the date of enactment of this Act, publish in the Federal Register proposed regulations for State carbon dioxide storage programs; and

   Inserted: (ii) not later than 180 days after the date of publication of the proposed regulations under clause (i), promulgate final regulations for State carbon dioxide storage programs that meet the requirements described in paragraph (2)(A), including such modifications as the Administrator determines to be appropriate.

   Inserted: (B) Updating.--The Administrator may periodically review and, as necessary, revise the regulations promulgated under this subsection.

   Inserted: (2) State regulatory authority.--

   Inserted: (A) In general.--The regulations promulgated under paragraph (1)(A)(ii) shall establish minimum requirements that States shall meet in order to be approved to administer a carbon dioxide storage program under subsection (c)(1), including--

   Inserted: (i) a prohibition on carbon dioxide storage in the State that is not authorized by a permit issued by the State;

   Inserted: (ii) inspection, monitoring, recordkeeping, and reporting requirements; and

   Inserted: (iii) authority for the State regulatory agency to issue a permit, after public notice and hearing, approving a storage facility for the proposed geological storage of carbon dioxide if the State regulatory authority determines that--

   Inserted: (I) the horizontal and vertical boundaries of the geological storage facility designated by the permit are appropriate for the storage facility;

   Inserted: (II) the storage facility and reservoir are suitable and feasible for the injection and storage of carbon dioxide;

   Inserted: (III) a good faith effort has been made to obtain the consent of a majority of the owners having property interests affected by the storage facility, and that the storage operator intends to acquire any remaining interest by eminent domain or by a method otherwise allowed by law;

   Inserted: (IV) the use of the storage facility for the geological storage of carbon dioxide will not result in the unpermitted migration of carbon dioxide into other formations containing fresh drinking water or oil, gas, coal, or other commercial mineral deposits that are not owned by the storage operator; and

   Inserted: (V) the proposed storage would--

   Inserted: (aa) not unduly endanger human health or the environment; and

   Inserted: (bb) be in the public interest.

   Inserted: (B) State authority.--A State regulatory agency approved under subsection (c)(1) to administer a carbon dioxide storage program shall issue such orders, permits, certificates, rules, and regulations, including establishment of such appropriate and sufficient financial sureties as are necessary, for the purpose of regulating the drilling, operation, and well plugging and abandonment and removal of surface buildings and equipment of the storage facility in order to protect the storage facility against pollution, invasion, and the escape or migration of carbon dioxide.

   Inserted: (C) Eminent domain.--A storage operator may be empowered by a State to exercise the right of eminent domain under State law to acquire all surface and subsurface rights and interests necessary or useful for the purpose of operating the storage facility, including easements and rights-of-way across land that are necessary to transport carbon dioxide among components of the storage facility.

   Inserted: (D) Variance in conditions.--The regulations promulgated under paragraph (1)(A)(ii) shall permit or provide for consideration of varying geological, hydrological, and historical conditions in different States and in different areas within a State.

   Inserted: (E) Enhanced recovery operations.--

   Inserted: (i) In general.--Upon the approval of a State to administer a carbon dioxide storage program under subsection (c)(1), the State regulatory agency designated by the State may develop rules to allow the conversion into a storage facility of an enhanced recovery operation that is in existence as of the date on which administration of the program by the State is approved.

   Inserted: (ii) Oil and gas recovery.--Nothing in this section applies to or otherwise affects the use of carbon dioxide as a part of or in conjunction with any enhanced recovery method the sole purpose of which is enhanced oil or gas recovery.

   Inserted: (c) State Primary Enforcement Responsibility.--

   Inserted: (1) Approval of state carbon dioxide storage programs.--

   Inserted: (A) Application.--

   Inserted: (i) In general.--After promulgation of the regulations under subsection (b)(1)(A)(ii), each State may submit to the Administrator an application that demonstrates, to the satisfaction of the Administrator, that the State--

   Inserted: (I) has adopted, after providing for reasonable notice and an opportunity for public comment, and will implement, a carbon dioxide storage program that meets the requirements of the regulations; and

   Inserted: (II) will keep such records and make such reports with respect to the activities of the State under the carbon dioxide storage program as the Administrator may require by regulation.

   Inserted: (ii) Revisions.--Not later than the expiration of the 270-day period beginning on the date on which any regulation promulgated under subsection (b)(1)(A)(ii) is revised or amended with respect to a requirement applicable to State carbon dioxide storage programs, each State with a carbon dioxide storage program approved under subparagraph (B) shall submit, in such form and in such manner as the Administrator may require, a notice to the Administrator that demonstrates, to the satisfaction of the Administrator, that the State carbon dioxide storage program meets the revised or amended requirement.

   Inserted: (B) Approval or disapproval.--Not later than 90 days after the date on which a State submits to the Administrator an application under subparagraph (A)(i) or a notice under subparagraph (A)(ii), and after a reasonable (as determined by the Administrator) opportunity for discussion, the Administrator shall by regulation approve, disapprove, or approve in part and disapprove in part, the carbon dioxide storage program proposed by the State.

   Inserted: (C) Effect of approval.--If the Administrator approves the carbon dioxide storage program of a State under subparagraph (B), the State shall have primary enforcement responsibility for carbon dioxide storage in the State until such time as the Administrator determines, by regulation, that the State no longer meets the requirements of subparagraph (A)(i).

   Inserted: (D) Public participation.--Before making a determination under subparagraph (B) or (C), the Administrator shall provide an opportunity for a public hearing with respect to the determination.

   Inserted: (2) States without primary enforcement responsibility.--

   Inserted: (A) In general.--If a State fails to submit an application under paragraph (1)(A)(i) by the date that is 270 days after the date of promulgation of regulations under subsection (b)(1)(A)(ii), the Administrator shall by regulation prescribe (and may from time to time by regulation revise) a program applicable to the State that meets the terms and conditions of subsection (b)(2).

   Inserted: (B) Disapproval.--If the Administrator disapproves all or a portion of the program of a State under paragraph (1)(B), if the Administrator determines under paragraph (1)(C) that a State no longer meets the requirements of subclause (I) or (II) of paragraph (1)(A)(i), or if a State fails to submit a notice before the expiration of the period specified in paragraph (1)(A)(ii), the Administrator shall by regulation, not later than 90 days after the date of the disapproval, determination, or expiration (as the case may be), prescribe (and may from time to time by regulation revise) a program applicable to the State that meets the requirements of subsection (b)(2).

   Inserted: (C) Applicability.--A program prescribed by the Administrator under subparagraph (B) shall apply in a State only to the extent that a program adopted by the State that the Administrator determines meets the requirements of this section or subsection (b)(2) is not in effect.

   Inserted: (D) Public participation.--Before promulgating any regulation under subparagraph (B) or (C), the Administrator shall provide an opportunity for a public hearing with respect to the regulation.

   Inserted: (d) Enforcement of Program.--

   Inserted: (1) Notification.--

   Inserted: (A) In general.--In any case in which the Administrator determines, during a period during which a State has primary enforcement responsibility for carbon dioxide storage, that any person who is subject to a requirement of the carbon dioxide storage program is violating the requirement, the Administrator shall notify the State and the person violating the requirement of the violation.

   Inserted: (B) Failure to enforce.--If, after the date that is 30 days after the Administrator notifies a State of a violation under subparagraph (A), the State has not commenced appropriate enforcement action, the Administrator shall--

   Inserted: (i) issue an order under paragraph (2) requiring the person to--

   Inserted: (I) correct the matter; and

   Inserted: (II) comply with the requirement; or

   Inserted: (ii) bring a civil action in accordance with paragraph (3).

   Inserted: (C) Violations in certain states.--In any case in which the Administrator determines, during a period during which a State does not have primary enforcement responsibility for carbon dioxide storage, that any person subject to any requirement of any applicable carbon dioxide storage program in the State is violating the requirement, the Administrator shall--

   Inserted: (i) issue an order under paragraph (2) requiring the person to comply with requirement; or

   Inserted: (ii) bring a civil action in accordance with paragraph (3).

   Inserted: (2) Administrative orders and appeals.--

   Inserted: (A) In general.--In any case in which the Administrator has the authority to bring a civil action under this subsection with respect to any regulation or other requirement of this section, the Administrator may, in addition to bringing the civil action, issue an order under this paragraph that--

   Inserted: (i) assesses a civil penalty of not more than $10,000 for each day of violation for any past or current violation, up to a maximum aggregate civil penalty of $125,000, for each covered entity;

   Inserted: (ii) requires compliance with the regulation or other requirement; or

   Inserted: (iii) accomplishes each of the actions described in clauses (i) and (ii).

   Inserted: (B) Timing.--An order under this paragraph shall be issued by the Administrator only after an opportunity (provided in accordance with this paragraph) for a hearing.

   Inserted: (C) Notice.--Before issuing any order under subparagraph (A), the Administrator shall provide to the person to whom the order applies--

   Inserted: (i) written notice of the intent of the Administrator to issue the order; and

   Inserted: (ii) the opportunity to request, within the 30-day period beginning on the date of receipt by the person of the notice, a hearing on the order.

   Inserted: (D) Requirements.--A hearing described in subparagraph (C)(ii)--

   Inserted: (i) shall not be subject to section 554 or 556 of title 5, United States Code; but

   Inserted: (ii) shall provide to each interested person a reasonable opportunity to be heard and to present evidence.

   Inserted: (E) Notice and comment.--The Administrator shall provide public notice of, and a reasonable opportunity to comment on, any proposed order.

   Inserted: (F) Specific notice.--Any person who comments on any proposed order under subparagraph (E) shall be given notice of any hearing under this paragraph and of any order.

   Inserted: (G) Effective date.--Any order issued under this paragraph shall become effective on the date that is 30 days after the date of issuance of the order, unless an appeal is taken pursuant to subparagraph (K).

   Inserted: (H) Contents of order.--Any order issued under this paragraph--

   Inserted: (i) shall state with reasonable specificity the nature of the violation; and

   Inserted: (ii) may specify a reasonable period to achieve compliance.

   Inserted: (I) Considerations.--In assessing any civil penalty under this paragraph, the Administrator shall take into consideration all appropriate factors, including--

   Inserted: (i) the seriousness of the violation;

   Inserted: (ii) the economic benefit (if any) resulting from the violation;

   Inserted: (iii) any history of similar violations;

   Inserted: (iv) any good-faith efforts to comply with the applicable requirements;

   Inserted: (v) the economic impact of the penalty on the violator; and

   Inserted: (vi) such other matters as justice may require.

   Inserted: (J) Other actions.--Any violation with respect to which the Administrator has commenced and is diligently prosecuting a civil action under a provision of law other than this section, or has issued an order under this paragraph assessing a civil penalty, shall not be subject to a civil action under paragraph (3).

   Inserted: (K) Appeals.--Any person against whom an order is issued may file an appeal of the order, not later than 30 days after the date of issuance of the order, with--

   Inserted: (i) the United States District Court for the District of Columbia; or

   Inserted: (ii) the United States district court for the district in which the violation is alleged to have occurred.

   Inserted: (L) Distribution of copies.--An appellant shall simultaneously send a copy of an appeal filed under subparagraph (K) by certified mail to the Administrator and to the Attorney General.

   Inserted: (M) Record.--The Administrator shall promptly file in the appropriate court described in subparagraph (K) a certified copy of the record on which an order was based.

   Inserted: (N) Judicial action.--A court having jurisdiction over an order issued under this paragraph shall not--

   Inserted: (i) set aside or remand the order unless the court determines that--

   Inserted: (I) there is not substantial evidence on the record, taken as a whole, to support the finding of a violation; or

   Inserted: (II) the assessment by the Administrator of a civil penalty, or a requirement for compliance, constitutes an abuse of discretion; or

   Inserted: (ii) impose additional civil penalties for the same violation unless the court determines that the assessment by the Administrator of a civil penalty constitutes an abuse of discretion.

   Inserted: (O) Failure to pay.--

   Inserted: (i) In general.--If any person fails to pay an assessment of a civil penalty after an order becomes effective under subparagraph (G), or after a court, in a civil action brought under subparagraph (K), has entered a final judgment in favor of the Administrator, the Administrator may request the Attorney General to bring a civil action in an appropriate United States district court to recover the amount assessed, plus costs, attorneys' fees, and interest at currently prevailing rates, calculated from the date on which the order is effective or the date of the final judgment, as the case may be.

   Inserted: (ii) No review of amount.--In a civil action brought under clause (i), the validity, amount, and appropriateness of the civil penalty shall not be subject to review.

   Inserted: (P) Authority of administrator.--The Administrator may, in connection with administrative proceedings under this paragraph--

   Inserted: (i) issue subpoenas compelling the attendance and testimony of witnesses and subpoenas duces tecum; and

   Inserted: (ii) request the Attorney General to bring a civil action to enforce any subpoena issued under this subparagraph.

   Inserted: (Q) Enforcement.--The United States district courts shall have jurisdiction to enforce, and impose sanctions with respect to, subpoenas issued under subparagraph (P).

   Inserted: (3) Civil and criminal actions.--

   Inserted: (A) In general.--A civil action referred to in subparagraph (B) or (C) of paragraph (1) shall be brought in the appropriate United States district court.

   Inserted: (B) Authority; judgement.--A court described in subparagraph (A)--

   Inserted: (i) shall have jurisdiction to require compliance with any requirement of an applicable carbon dioxide storage program or with an order issued under paragraph (2); and

   Inserted: (ii) may enter such judgment as the protection of public health may require.

   Inserted: (C) Penalties.--Any person who violates any requirement of an applicable carbon dioxide storage program or an order requiring compliance under paragraph (2)--

   Inserted: (i) shall be subject to a civil penalty of not more than $25,000 for each day of such violation; and

   Inserted: (ii) if the violation is willful, may, in addition to or in lieu of the civil penalty under clause (i), be imprisoned for not more than 3 years, fined in accordance with title 18, United States Code, or both.

   Inserted: (4) Effect on state authority.--

   Inserted: (A) In general.--Nothing in this subsection diminishes or otherwise affects any authority of a State or political subdivision of a State to adopt or enforce any law (including a regulation) (relating to the storage of carbon dioxide.

   Inserted: (B) Other requirements.--No law (including a regulation) described in subparagraph (A) shall relieve any person of any requirement otherwise applicable under this Act.

   Inserted: (e) Financial Assurances for Storage Operators.--

   Inserted: (1) In general.--Each storage operator shall be required by the State regulatory agency (in the case of a State with primary enforcement authority) or the Administrator (in the case of a State that does not have primary enforcement authority) to have and maintain financial assurances of such type and in such amounts as are necessary to cover public liability claims relating to the storage facility of the storage operator.

   Inserted: (2) Maintenance of financial assurances.--The financial assurances required under paragraph (1) shall be maintained by the storage operator until such time as the operator obtains a certificate of completion of injection operations under subsection (f).

   Inserted: (3) Amount.--The amount of financial assurances required under paragraph (1) shall be the maximum amount of liability insurance available at a reasonable cost and on reasonable terms from private sources (including private insurance, private contractual indemnities, self-insurance, or a combination of those measures), as determined by the Administrator.

   Inserted: (f) Cessation of Storage Operations.--Upon a showing by a storage operator that a storage facility is reasonably expected to retain mechanical integrity and remain in place, the State regulatory agency (in the case of a State with primary enforcement authority) or the Administrator (in the case of a State that does not have primary enforcement authority) shall issue a certificate of completion of injection operations to the storage operator.

   Inserted: (g) Liability of Storage Operators for Release of Carbon Dioxide.--

   Inserted: (1) In general.--The Administrator shall agree to indemnify and hold harmless a storage operator (and if different from the storage operator, the owner of the storage facility) that has maintained financial assurances under subsection (e) from liability arising from the leakage of carbon dioxide at any storage facility operated by the storage operator, to the extent that the liability is in excess of the level of financial protection required of the storage operator.

   Inserted: (2) Completion of operations.--Upon the issuance of certificate of completion of injection operations by a State regulatory agency (in the case of a State with primary enforcement authority) or the Administrator (in the case of a State that does not have primary enforcement authority)--

   Inserted: (A) the Administrator shall be vested with complete and absolute title and ownership of the storage facility and any stored carbon dioxide at the facility;

   Inserted: (B) the storage operator and all generators of any injected carbon dioxide shall be released from all further liability associated with the project; and

   Inserted: (C)(i) any performance bonds posted by the storage operator shall be released; and

   Inserted: (ii) continued monitoring of the storage facility, including remediation of any well leakage, shall become the responsibility of the Administrator.

   Inserted: (h) Funding.--

   Inserted: (1) In general.--For each fiscal year, the Administrator shall collect an annual assessment from each storage operator for each storage facility that has not obtained a certificate of completion of injection operations.

   Inserted: (2) Assessment amount.--The amount of the assessment for a storage facility for a fiscal year shall be equal to the product obtained by multiplying--

   Inserted: (A) the per-ton assessment for the fiscal year calculated under paragraph (4); and

   Inserted: (B) the total number of tons of carbon dioxide injected for storage by the storage operator during the preceding fiscal year at all storage facilities operated by the storage operator during the fiscal year.

   Inserted: (3) Aggregate amount.--The aggregate amount of assessments collected from all storage operators under paragraph (1) for any fiscal year shall be equal to the sum of, with respect to the fiscal year--

   Inserted: (A) any indemnification payments required to be made pursuant to subsection (g)(1);

   Inserted: (B) any costs associated with storage facilities to which the Administrator has taken title pursuant to subsection (g)(2), including costs associated with any--

   Inserted: (i) inspection, monitoring, recordkeeping, and reporting requirements of those facilities;

   Inserted: (ii) remediation of carbon dioxide leakage; or

   Inserted: (iii) plugging and abandoning of remaining wells; and

   Inserted: (C) any costs associated with public liability of storage facilities to which the Administrator has taken title pursuant to subsection (g)(2).

   Inserted: (4) Calculation of assessment.--The assessment under this subsection per ton of carbon dioxide for a fiscal year shall be equal to the quotient obtained by dividing--

   Inserted: (A) the aggregate amount of assessments calculated under paragraph (3) for the fiscal year; by

   Inserted: (B) the aggregate number of tons of carbon dioxide injected for storage during the preceding fiscal year by all storage operators.

   Inserted: (5) Information.--The Administrator shall require the submission of such information by each storage operator on an annual basis as is necessary to make the calculations required under this subsection.

   Inserted: (i) Relationship to Other Laws.--

   Inserted: (1) In general.--The Administrator shall promulgate regulations for permitting commercial-scale underground injection of carbon dioxide for purposes of geological sequestration under this section.

   Inserted: (2) Safe drinking water act.--Section 1421 of the Safe Drinking Water Act (42 U.S.C. 300h) shall not be used as a basis for permitting commercial-scale underground injection or storage of carbon dioxide.

   Original wording

   Beginning on page 318, strike line 6 and all that follows through page 320, line 7, and insert the following:

4. 4

   Change 4: Strikes page 329, line 1 through page 330, line 3

   StrikesPrinted page

   Removes page 329, line 1 through page 330, line 3 of the printed bill. See that page

   Original wording

   Beginning on page 329, strike line 1 and all that follows through page 330, line 3.

5. 5

   Change 5: Adds Subtitle D--Clean Coal Technology Incentives SEC. 1031. SHORT TITLE at the end of title X

   Adds a section

   In S. 3036 · Placed on Calendar Senate

   (1) may be sold, traded, or transferred to any hydrofluorocarbon producer or hydrofluorocarbon importer referred to in section 10005(b); but (2) shall not be sold, traded, transferred, or used for compliance with any other emission allowance requirement of this Act or any other law.

   Inserted: Subtitle D--Clean Coal Technology Incentives SEC. 1031. SHORT TITLE.

   Inserted: This subtitle may be cited as the "Energy Security and Climate Enhancement Through Clean Coal Technology Act of 2008".

   Inserted: SEC. 1032. MODIFICATION OF SPECIAL RULES FOR ATMOSPHERIC POLLUTION CONTROL FACILITIES.

   Inserted: (a) In General.--Subsection (d) of section 169 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

   Inserted: "(6) Special rules for certain atmospheric pollution control facilities.--Notwithstanding paragraph (1), the term 'pollution control facility' includes any mechanical or electronic system which--

   Inserted: "(A) which is a new identifiable treatment facility (as defined in paragraph (4)),

   Inserted: "(B) which is--

   Inserted: "(i) installed after December 31, 2007, and

   Inserted: "(ii) used in connection with an electric generation plant or other property which is primarily coal fired, and

   Inserted: "(C) which is certified by the owner or operator of the plant or other property, in such form and manner as prescribed by the Secretary, to reduce carbon dioxide emissions per net megawatt hour of electricity generation by--

   Inserted: "(i) optimizing combustion,

   Inserted: "(ii) optimizing sootblowing and heat transfer,

   Show 177 more inserted paragraphsShow less

   Inserted: "(iii) upgrading steam temperature control capabilities,

   Inserted: "(iv) reducing exit gas temperatures (air heater modifications)

   Inserted: "(v) predrying low rank coals using power plant waste heat,

   Inserted: "(vi) modifying steam turbines or change the steam path/ blading,

   Inserted: "(vii) replacing single speed motors with variable speed drives for fans and pumps,

   Inserted: "(viii) improving operational controls, including neural networks, or

   Inserted: "(ix) any other means approved by the Secretary, in consultation with the Secretary of Health and Human Services.".

   Inserted: (b) Deduction Not Adjusted for Purposes of Determining Alternative Minimum Tax.--Paragraph (5) of section 56(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: "The preceding sentences of this paragraph shall not apply to any pollution control facility described in section 169(d)(6).".

   Inserted: (c) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2007.

   Inserted: SEC. 1033. EXTENSION AND MODIFICATION OF PRODUCTION CREDIT FOR CLOSED-LOOP BIOMASS.

   Inserted: (a) In General.--Clause (ii) of section 45(d)(2)(A) of the Internal Revenue Code of 1986 is amended to read as follows:

   Inserted: "(iii) owned by the taxpayer which after before January 1, 2014 is originally placed in service and modified, or is originally placed in service as a facility, to use closed-loop biomass to co-fire (or, in the case of an integrated gasification combined cycle facility, to co-process) with coal, with other biomass, or with both.".

   Inserted: (b) Effective Date.--The amendment made by this section shall apply to electricity produced and sold after the date of the enactment of this Act.

   Inserted: SEC. 1034. QUALIFYING NEW CLEAN COAL POWER PLANT CREDIT.

   Inserted: (a) In General.--Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48B the following new section:

   Inserted: "SEC. 48C. QUALIFYING NEW CLEAN COAL POWER PLANT CREDIT.

   Inserted: "(a) Allowance of Credit.--

   Inserted: "(1) In general.--For purposes of section 46, the qualifying new clean coal power plant credit for any taxable year is an amount equal to the applicable percentage of the qualified investment for such taxable year.

   Inserted: "(2) Applicable percentage.--For purposes of paragraph (1), the applicable percentage shall be determined as follows:

   Inserted: ----------------------------------------------------------------------------------------------------------------"In the case of a plant which either has--

   Inserted: ------------------------------------------------------------------------------------ The applicable percentage a carbon dioxide emission is:

   Inserted: a design net heat rate below-- or rate of--

   Inserted: 7,580 Btu/kWh (45% efficiency)........... ........... 1,577 lbs/MWh or less...... 30 percent 7,760 Btu/kWh (44% efficiency)........... ........... 1,613 lbs/MWh or less...... 28 percent 7,940 Btu/kWh (43% efficiency)........... ........... 1,650 lbs/MWh or less...... 26 percent 8,120 Btu/kWh (42% efficiency)........... ........... 1,690 lbs/MWh or less...... 20 percent 8,322 Btu/kWh (41% efficiency)........... ........... 1,731 lbs/MWh or less...... 10 percent 8,530 Btu/kWh (40% efficiency)........... ........... 1,774 lbs/MWh or less...... 10 percent

   Inserted: "(b) Qualified Investment.--

   Inserted: "(1) In general.--For purposes of subsection (a), the qualified investment for any taxable year is the basis of eligible property placed in service by the taxpayer during such taxable year which is part of a qualifying new clean coal power plant--

   Inserted: "(A)(i) the construction, reconstruction, or erection of which is completed by the taxpayer, or

   Inserted: "(ii) which is acquired by the taxpayer if the original use of such property commences with the taxpayer, and

   Inserted: "(B) with respect to which depreciation (or amortization in lieu of depreciation) is allowable.

   Inserted: "(2) Special rule for certain subsidized property.--Rules similar to section 48(a)(4) shall apply for purposes of this section.

   Inserted: "(3) Certain qualified progress expenditures rules made applicable.--Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section.

   Inserted: "(c) Definitions.--For purposes of this section--

   Inserted: "(1) Qualifying new clean coal power plant.--The term 'qualifying new clean coal power plant' means a facility which--

   Inserted: "(A) which meets the requirements of section 48A(e),

   Inserted: "(B) which either--

   Inserted: "(i) has a design net heat rate of below 8,530 Btu/kWh, or

   Inserted: "(ii) has a carbon dioxide emission rate of 1,774 lbs/MWh or less, and

   Inserted: "(C) which--

   Inserted: "(i) is designed to capture carbon dioxide emissions, or

   Inserted: "(ii)(I) is designed to include a built-in space for future carbon dioxide capture hardware (and improved foundations and ironwork necessary to accommodate the additional hardware),

   Inserted: "(II) includes an engineering feasibility study identifying a system, including associated cost and performance parameters, to retrofit carbon capture equipment, and

   Inserted: "(III) includes a site or sited identified where carbon dioxide may be stored or used for commercial purposes.

   Inserted: "(2) Eligible property.--The term 'eligible property' means any property which is a part of a qualifying new clean coal power plant.

   Inserted: "(d) Qualifying New Clean Coal Power Plant Program.--

   Inserted: "(1) Establishment.--Not later than 180 days after the date of enactment of this section, the Secretary, in consultation with the Secretary of Energy, shall establish a qualifying new clean coal power plant program, under which the Secretary shall certify projects eligible for the credit under subsection (a)

   Inserted: "(2) Application.--An application under for certification under this section shall contain such information as the Secretary may require in order to make a determination to accept or reject an application for certification as meeting the requirements of this section. Any information contained in the application shall be protected as provided in section 552(b)(4) of title 5, United States Code.

   Inserted: "(3) Aggregate credits.--The aggregate or projects certified by the Secretary under this subsection shall not exceed an aggregate capacity for electricity generation of more than 6,000 megawatts.".

   Inserted: "(e) Recapture of Credit.--The Secretary shall provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any project which fails to attain or maintain any of the requirements of this section.".

   Inserted: (b) Conforming Amendments.--

   Inserted: (1) Section 46 of the Internal Revenue Code of 1986 is amended by striking "and" at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting ", and", and by adding at the end the following new paragraph:

   Inserted: "(5) the qualifying new clean coal power plant credit.".

   Inserted: (2) Section 49(a)(1)(C) of such Code is amended by striking "and" at the end of clause (iii), by striking the period at the end of clause (iv) and inserting ", and", and by adding at the end the following new clause:

   Inserted: "(v) the basis of any property which is part of a qualifying new clean coal power plant under section 48C.".

   Inserted: (3) The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 48B the following new item:

   Inserted: "Sec. 48C. Qualifying new clean coal power plant credit.".

   Inserted: (c) 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 before the date of the enactment of the Revenue Reconciliation Act of 1990).

   Inserted: SEC. 1035. INVESTMENT CREDIT FOR EQUIPMENT USED TO CAPTURE, TRANSPORT, AND STORE CARBON DIOXIDE.

   Inserted: (a) In General.--Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986, as amended by this Act, is amended by inserting after section 48C the following new section:

   Inserted: "SEC. 48D. EQUIPMENT USED TO CAPTURE, TRANSPORT, AND STORE CARBON DIOXIDE EMISSIONS.

   Inserted: "(a) General Rule.--For purposes of section 46, the qualifying carbon dioxide equipment credit for any taxable year is an amount equal to 30 percent of the qualified investment for such taxable year.

   Inserted: "(b) Qualified Investment.--For purposes of subsection (a), the qualified investment for any taxable year is the basis of eligible property placed in service by the taxpayer during such taxable year.

   Inserted: "(c) Definitions.--For purposes of this section--

   Inserted: "(1) Eligible property.--The term 'eligible property' means equipment installed on a qualified coal-fired electric power generating unit to capture, transport, and store carbon dioxide produced at such generating unit, including equipment to separate and pressurize carbon dioxide for transport (including hardware to operate such equipment) and equipment to transport, inject, and monitor such carbon dioxide, as further specified and identified, by rule, by the Secretary.

   Inserted: "(2) Qualified coal-fired electric generation unit.--The term 'qualified coal-fired electric generation unit' means a unit which, after installation of eligible property, is designed to capture and store in a geologic formation not less than 500,000 metric tons of carbon dioxide per year.

   Inserted: "(d) Aggregate Credits.--The credits allowed under subsection (a) shall apply only to the first 9,000 megawatts of capacity of qualified coal-fired electric power generating units certified by the Secretary under subsection (e).

   Inserted: "(e) Certification.--

   Inserted: "(1) Certification process.--The Secretary shall establish a certification process to determine the extent to which eligible property has been installed on a qualified coal-fired electric power generating unit, and to make such other determinations as the Secretary deems appropriate. The Secretary shall prepare an application for certification.

   Inserted: "(2) Requirements for applications for certification.--An application for certification shall contain such information as the Secretary may require in order to establish credit entitlement. Any information contained in an application shall be protected as provided in section 552(b)(4) of title 5, United States Code.".

   Inserted: (b) Conforming Amendments.--

   Inserted: (1) Section 46 of the Internal Revenue Code of 1986, as amended by this Act, is amended by striking "and" at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting ", and", and by adding at the end the following new paragraph:

   Inserted: "(6) the qualifying carbon dioxide equipment credit.".

   Inserted: (2) Section 49(a)(1)(C) of such Code, as amended by this Act, is amended by striking "and" at the end of clause (iv), by striking the period at the end of clause (v) and inserting ", and", and by adding at the end the following new clause:

   Inserted: "(vi) the basis of any eligible property under section 48D.".

   Inserted: (3) The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code, as amended by this Act is amended by inserting after the item relating to section 48C the following new section:

   Inserted: "Sec. 48D. Equipment used to capture, transport, and store carbon dioxide emissions.".

   Inserted: (c) 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 before the date of the enactment of the Revenue Reconciliation Act of 1990).

   Inserted: SEC. 1036. TAX CREDIT FOR CARBON DIOXIDE SEQUESTRATION IN THE GENERATION OF ELECTRICITY.

   Inserted: (a) In General.--Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business credits) is amended by adding at the end the following new section:

   Inserted: "SEC. 45Q. CREDIT SEQUESTERING CARBON DIOXIDE IN THE GENERATION OF ELECTRICITY.

   Inserted: "(a) General Rule.--For purposes of section 38, the carbon dioxide sequestration credit for any taxable year is an amount equal to the sum of--

   Inserted: "(1) $30 per metric ton of qualified carbon dioxide which is--

   Inserted: "(A) captured by the taxpayer at a qualified facility during the credit period, and

   Inserted: "(B) disposed of by the taxpayer in secure geological storage, and

   Inserted: "(2) $10 per metric ton of qualified carbon dioxide which is--

   Inserted: "(A) captured by the taxpayer at a qualified facility during the credit period, and

   Inserted: "(B) used by the taxpayer as a tertiary injectant in a qualified enhanced oil or natural gas recovery project.

   Inserted: "(b) Qualified Facility.--For purposes of this section--

   Inserted: "(1) In general.--The term 'qualified facility' means any industrial facility--

   Inserted: "(A) which is owned by the taxpayer,

   Inserted: "(B) at which carbon capture equipment is placed in service,

   Inserted: "(C) which captures not less than 500,000 metric tons of carbon dioxide during the taxable year, and

   Inserted: "(D) which is certified by the Secretary under paragraph (2).

   Inserted: "(2) Certification.--

   Inserted: "(A) In general.--The Secretary, in consultation with the Secretary of Energy, shall establish a program under which facilities which use coal for the generation of electricity are certified for purposes of this section.

   Inserted: "(B) Limitation.--The total aggregate generating capacity of all facilities certified by the Secretary under this paragraph shall not exceed 9,000 megawatts.

   Inserted: "(c) Qualified Carbon Dioxide.--For purposes of this section--

   Inserted: "(1) In general.--The term 'qualified carbon dioxide' means carbon dioxide captured from an industrial source which--

   Inserted: "(A) would otherwise be released into the atmosphere as industrial emissions of greenhouse gas, and

   Inserted: "(B) is measured at the source of capture and verified at the point of disposal or injection.

   Inserted: "(2) Recycled carbon dioxide.--The term 'qualified carbon dioxide' includes the initial deposit of captured carbon dioxide used as a tertiary injectant. Such term does not include carbon dioxide that is re-captured, recycled, and re-injected as part of the enhanced oil and natural gas recovery process.

   Inserted: "(d) Special Rules and Definitions.--For purposes of this section--

   Inserted: "(1) Credit period.--The term 'credit period' means, with respect to any qualified facility, the 10-year period beginning on the date on which qualified carbon dioxide for which a credit was allowed under subsection (a) was first captured.

   Inserted: "(2) Only carbon dioxide captured within the united states taken into account.--The credit under this section shall apply only with respect to qualified carbon dioxide the capture of which is within--

   Inserted: "(A) the United States (within the meaning of section 638(1)), or

   Inserted: "(B) a possession of the United States (within the meaning of section 638(2)).

   Inserted: "(3) Secure geological storage.--The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall establish regulations for determining adequate security measures for the geological storage of carbon dioxide under subsection (a)(1)(B) such that the carbon dioxide does not escape into the atmosphere. Such term shall include storage at deep saline formations and unminable coal seems under such conditions as the Secretary may determine under such regulations.

   Inserted: "(4) Tertiary injectant.--The term 'tertiary injectant' has the same meaning as when used within section 193(b)(1).

   Inserted: "(5) Qualified enhanced oil or natural gas recovery project.--The term 'qualified enhanced oil or natural gas recovery project' has the meaning given the term 'qualified enhanced oil recovery project' by section 43(c)(2), by substituting 'crude oil or natural gas' for 'crude oil' in subparagraph (A)(i) thereof.

   Inserted: "(6) Credit attributable to taxpayer.--Any credit under this section shall be attributable to the person that captures and physically or contractually ensures the disposal of or the use as a tertiary injectant of the qualified carbon dioxide, except to the extent provided in regulations prescribed by the Secretary.

   Inserted: "(7) Recapture.--The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any qualified carbon dioxide which ceases to be captured, disposed of, or used as a tertiary injectant in a manner consistent with the requirements of this section.

   Inserted: "(8) Inflation adjustment.--In the case of any taxable year beginning in a calendar year after 2008, there shall be substituted for each dollar amount contained in subsection (a) an amount equal to the product of--

   Inserted: "(A) such dollar amount, multiplied by

   Inserted: "(B) the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting '2007' for '1990'.".

   Inserted: (b) Conforming Amendment.--Section 38(b) of the Internal Revenue Code of 1986 (relating to general business credit) is amended by striking "plus" at the end of paragraph (32), by striking the period at the end of paragraph (33) and inserting ", plus", and by adding at the end of following new paragraph:

   Inserted: "(34) the carbon dioxide sequestration credit determined under section 45Q(a).".

   Inserted: (c) Clerical Amendment.--The table of sections for subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to other credits) is amended by adding at the end the following new section:

   Inserted: "Sec. 45Q. Credit for sequestering carbon dioxide in the generation of electricity.".

   Inserted: (d) Effective Date.--The amendments made by this section shall apply carbon dioxide captured after the date of the enactment of this Act.

   Inserted: SEC. 1037. CLEAN ENERGY COAL BONDS.

   Inserted: (a) In General.--Subpart I of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to qualified tax credit bonds) is amended by adding at the end the following new section:

   Inserted: "SEC. 54C. CLEAN ENERGY COAL BONDS.

   Inserted: "(a) Clean Energy Coal Bond.--For purposes of this subchapter--

   Inserted: "(1) In general.--The term 'clean energy coal bond' means any bond issued as part of an issue if--

   Inserted: "(A) the bond is issued by a qualified issuer pursuant to an allocation by the Secretary to such issuer of a portion of the national clean energy coal bond limitation under subsection (b)(2);

   Inserted: "(B) 100 percent of the available project proceeds from the sale of such issue are to be used for capital expenditures incurred by qualified borrowers for 1 or more qualified projects;

   Inserted: "(C) the qualified issuer designates such bond for purposes of this section and the bond is in registered form; and

   Inserted: "(D) in lieu of the requirements of section 54A(d)(2), the issue meets the requirements of subsection (c).

   Inserted: "(2) Qualified project; special use rules.--

   Inserted: "(A) In general.--The term 'qualified project' means a qualified clean coal project (as defined in subsection (f)(1)) placed in service by a qualified borrower.

   Inserted: "(B) Refinancing rules.--For purposes of paragraph (1)(B), a qualified project may be refinanced with proceeds of a clean energy coal bond only if the indebtedness being refinanced (including any obligation directly or indirectly refinanced by such indebtedness) was originally incurred by a qualified borrower after the date of the enactment of this section.

   Inserted: "(C) Reimbursement.--For purposes of paragraph (1)(B), a clean energy coal bond may be issued to reimburse a qualified borrower for amounts paid after the date of the enactment of this section with respect to a qualified project, but only if--

   Inserted: "(i) prior to the payment of the original expenditure, the qualified borrower declared its intent to reimburse such expenditure with the proceeds of a clean energy coal bond;

   Inserted: "(ii) not later than 60 days after payment of the original expenditure, the qualified issuer adopts an official intent to reimburse the original expenditure with such proceeds; and

   Inserted: "(iii) reimbursement is not made later than 18 months after the date the original expenditure is paid or the date the project is placed in service or abandoned, but in no event more than 3 years after the original expenditure is paid.

   Inserted: "(D) Treatment of changes in use.--For purposes of paragraph (1)(B), the proceeds of an issue shall not be treated as used for a qualified project to the extent that a qualified borrower takes any action within its control which causes such proceeds not to be used for a qualified project. The Secretary shall prescribe regulations specifying remedial actions that may be taken (including conditions to taking such remedial actions) to prevent an action described in the preceding sentence from causing a bond to fail to be a clean energy coal bond.

   Inserted: "(b) Limitation on Amount of Bonds Designated.--

   Inserted: "(1) National limitation.--There is a national clean energy coal bond limitation of $5,000,000,000.

   Inserted: "(2) Allocation by secretary.--The Secretary shall allocate the amount described in paragraph (1) among qualified projects in such manner as the Secretary determines appropriate.

   Inserted: "(c) Special Rules Relating to Expenditures.--

   Inserted: "(1) In general.--An issue shall be treated as meeting the requirements of this subsection if, as of the date of issuance. the qualified issuer reasonably expects--

   Inserted: "(A) 100 percent or more of the available project proceeds from the sale of the issue are to be spent for 1 or more qualified projects within the 5-year period beginning on the date of issuance of the clean energy bond;

   Inserted: "(B) a binding commitment with a third party to spend at least 10 percent of such available project proceeds from the sale of the issue will be incurred within the 6-month period beginning on the date of issuance of the clean energy bond or, in the case of a clean energy bond the available project proceeds of which are to be loaned to 2 or more qualified borrowers, such binding commitment will be incurred within the 6-month period beginning on the date of the loan of such proceeds to a qualified borrower; and

   Inserted: "(C) such projects will be completed with due diligence and the available project proceeds from the sale of the issue will be spent with due diligence.

   Inserted: "(2) Extension of period.--Upon submission of a request prior to the expiration of the period described in paragraph (1)(A), the Secretary may extend such period if the qualified issuer establishes that the failure to satisfy the 5-year requirement is due to reasonable cause and the related projects will continue to proceed with due diligence.

   Inserted: "(3) Failure to spend required amount of bond proceeds within 5 years.--To the extent that less than 100 percent of the available project proceeds of such issue are expended by the close of the 5-year period beginning on the date of issuance (or if an extension has been obtained under paragraph (2), by the close of the extended period), the qualified issuer shall redeem all of the nonqualified bonds within 90 days after the end of such period. For purposes of this paragraph, the amount of the nonqualified bonds required to be redeemed shall be determined in the same manner as under section 142.

   Inserted: "(d) Cooperative Electric Company; Qualified Energy Tax Credit Bond Lender; Governmental Body; Qualified Borrower.--For purposes of this section--

   Inserted: "(1) Cooperative electric company.--The term 'cooperative electric company' means a mutual or cooperative electric company described in section 501(c)(12) or section 1381(a)(2)(C), or a not-for-profit electric utility which has received a loan or loan guarantee under the Rural Electrification Act.

   Inserted: "(2) Clean energy bond lender.--The term 'clean energy bond lender' means a lender which is a cooperative which is owned by, or has outstanding loans to, 100 or more cooperative electric companies and is in existence on February 1, 2002, and shall include any affiliated entity which is controlled by such lender.

   Inserted: "(3) Public power entity.--The term 'public power entity' means a State utility with a service obligation, as such terms are defined in section 217 of the Federal Power Act (as in effect on the date of enactment of this paragraph).

   Inserted: "(4) Qualified issuer.--The term 'qualified issuer' means--

   Inserted: "(A) a clean energy bond lender;

   Inserted: "(B) a cooperative electric company; or

   Inserted: "(C) a public power entity.

   Inserted: "(5) Qualified borrower.--The term 'qualified borrower' means--

   Inserted: "(A) a mutual or cooperative electric company described in section 501(c)(12) or 1381(a)(2)(C); or

   Inserted: "(B) a public power entity.

   Inserted: "(e) Special Rules Relating to Pool Bonds.--No portion of a pooled financing bond may be allocable to any loan unless the borrower has entered into a written loan commitment for such portion prior to the issue date of such issue.

   Inserted: "(f) Other Definitions and Special Rules.--For purposes of this section--

   Inserted: "(1) Qualified clean coal project.--For purposes of this section, the term 'qualified clean coal project' means--

   Inserted: "(A) an atmospheric pollution control facility (within the meaning of section 169(d)(5)(C));

   Inserted: "(B) a closed-loop biomass facility (within the meaning of section 45(d)(2));

   Inserted: "(C) a qualified new clean coal power plant (within the meaning of section 48C(d)(1));

   Inserted: "(D) qualifying carbon dioxide equipment described in section 48D(c)(1); or

   Inserted: "(E) a qualified facility (within the meaning of section 450(c)).

   Inserted: "(2) Pooled financing bond.--The term 'pooled financing bond' shall have the meaning given such term by section 149(f)(4)(A).

   Inserted: "(g) Termination.--This section shall not apply with respect to any bond issued after December 31, 2018.".

   Inserted: (b) Conforming Amendments.--

   Inserted: (1) Paragraph (1) of section 54A(d) of the Internal Revenue Code of 1986 is amended to read as follows:

   Inserted: "(1) Qualified tax credit bond.--The term 'qualified tax credit bond' means--

   Inserted: "(A) a qualified forestry conservation bond, or

   Inserted: "(B) a clean energy coal bond, which is part of an issue that meets requirements of paragraphs (2), (3), (4), (5), and (6).".

   Inserted: (2) Subparagraph (C) of section 54A(d)(2) of such Code is amended to read as follows:

   Inserted: "(C) Qualified purpose.--For purposes of this paragraph, the term 'qualified purpose' means--

   Inserted: "(i) in the case of a qualified forestry conservation bond, a purpose specified in section 54B(e), and

   Inserted: "(ii) in the case of a clean energy coal bond, a purpose specified in section 54C(f)(1).".

   Inserted: (c) Clerical Amendment.--The table of sections for subpart I of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

   Inserted: "Sec. 54C. Clean energy coal bonds.".

   Inserted: (d) Effective Date.--The amendments made by this section shall apply to bonds issued after December 31, 2008.

   Original wording

   At the end of title X, add the following:

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As printed