,,ii  #aacth ,,congress  #b;d ,session  
,s4 #baeb  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,march #be1    
#bjad,ms4 ,heitkamp introduced the      
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,a ,,bill  ,to direct ,federal          
investment in carbon capture and storage
 and other clean coal technologies1 and 
for other purposes4  #a4 ,short title2  
table of contents  7a7 ,short title     
,this ,act may be cited as the ,advanced
 ,clean ,coal ,technology ,investment in
 ,our ,nation ,act of #bjad or the      
,,acction ,act of #bjad4  7b7 ,table of 
contents ,the table of contents of this 
,act is as follows3 ,sec4 #a4 ,short    
title2 table of contents4 ,sec4 #b4     
,findings4 ,,title ,i--,federal         
investment in clean coal technologies   
,sec4 #aja4 ,large-scale carbon storage 
program4 ,sec4 #ajb4 ,research1         
development and demonstration programs4 
,sec4 #ajc4 ,innovative technology loan 
guarantee program4 ,sec4 #ajd4          

,coordination of clean coal generating  
projects4 ,,title ,,ii--,federal        
incentives for private investment in    
clean coal technologies ,sec4 #bja4     
,seven-year amortization for certain    
systems installed on coal-fired electric
 generation units4 ,sec4 #bjb4 ,credit  
for carbon sequestration from coal      
facilities4 ,sec4 #bjc4 ,variable price 
support for carbon dioxide              
sequestration4 ,sec4 #bjd4 ,clean energy
 coal bonds4 ,,title ,,iii--,reports    
required ,sec4 #cja4 ,definitions4 ,sec4
 #cjb4 ,reports to ,congress4  #b4      
,findings ,congress finds that-- 7#a7   
the ,president believes that the ,united
 ,states energy policy must have an     
all-of-the-above strategy for the #bast 
century that develops every source of   
,american-made energy2  7#b7 according  
to the ,energy ,information             
,administration1 #cg percent of all     
energy generated in the ,united ,states 
comes from coal and by #bjdj1 coal will 
still account for #cb percent of energy 

generation in the ,united ,states2  7#c7
 the ,united ,states has enough         
recoverable coal reserves to last at    
least another #bej years2  7#d7 as the  
world becomes increasingly carbon       
constrained1 coal-fired power plants    
must increasingly be integrated with    
carbon capture and storage systems2     
7#e7 efficiency improvements to the coal
 fleet will decrease carbon emissions   
and use less coal while providing the   
same power2  7#f7 the potential to      
increase efficiency is evident in the   
current fleet of power plants in the    
,united ,states1 as the top #aj percent 
of coal plants have efficiencies as high
 as #cg percent while the average plant 
has an efficiency of #cb percent2  7#g7 
efficiencies as high as #dh percent may 
be attained with ultrasupercritical     
coal-fired power plants2  7#h7 replacing
 the average subcritical coal-fired     
power plant with a supercritical or     
ultrasupercritical coal-fired power     
plant would reduce carbon emissions by  

#ah to #bb percent per megawatt hour of 
energy generated2 and  7#i7 the coal    
industry is a significant source of jobs
 in the ,united ,states as in #bjab     
alone1 coal was responsible for #acg1fej
 jobs for coal miners1 #ib1dgb jobs for 
operator employees1 and #de1agh jobs for
 contractors4  ,i ,federal investment in
 clean coal technologies  #aja4         
,large-scale carbon storage program  7a7
 ,in general ,subtitle ,f of title ,,ix 
of the ,energy ,policy ,act of #bjje    
7#db ,u4,s4,c4 #afbia et seq47 is       
amended by inserting after section #ifc 
7#db ,u4,s4,c4 #afbic7 the following3   
#ifc;,a4 ,large-scale carbon storage    
program  7a7 ,definitions ,in this      
section3 7#a7 ,industrial source ,the   
term industrial source means any source 
of carbon dioxide that is not naturally 
occurring4  7#b7 ,large-scale ,the term 
large-scale means the injection from    
industrial sources into a geological    
formation of-- 7,a7 over #a1jjj1jjj tons
 of carbon dioxide each year2 or  7,b7  

carbon dioxide to a scale that          
demonstrates the ability to inject and  
sequester several million metric tons of
 industrial source carbon dioxide for a 
large number of years4  7#c7 ,secretary 
concerned ,the term ,secretary concerned
 means-- 7,a7 the ,secretary of         
,agriculture 7acting through the ,chief 
of the ,forest ,service71 with respect  
to ,national ,forest ,system land2 and  
7,b7 the ,secretary of the ,interior1   
with respect to land managed by the     
,bureau of ,land ,management 7including 
land held for the benefit of an ,indian 
tribe74  7b7 ,program ,the ,secretary   
shall carry out a program to demonstrate
 the integration of systems for the     
capture1 transportation1 and injection  
of carbon dioxide from industrial       
sources1 either for the purpose of      
long-term geological storage or enhanced
 oil recovery at a commercial scale4    
7c7 ,authorized assistance  7#a7 ,in    
general ,in carrying out the program1   
the ,secretary may enter into           

cooperative agreements to provide       
financial and technical assistance to up
 to #aj large-scale geological storage  
or enhanced oil recovery projects4  7#b7
 ,limitation ,not fewer than #c of the  
#aj projects selected shall be          
large-scale projects that undertake site
 characterization and permitting to     
qualify the projects as ready for       
long-term saline storage sites4  7d7    
,project selection ,the ,secretary shall
 competitively select recipients of     
cooperative agreements under this       
section from among applicants that--    
7#a7 provide the ,secretary with        
sufficient geological site information  
7including hydrogeological and          
geophysical information7 to establish   
that the proposed geological formation  
is capable of use for enhanced oil      
recovery and1 in the case of geological 
storage1 is capable of long-term storage
 of the injected carbon dioxide1        
including-- 7,a7 the location1 extent1  
and storage capacity of the geological  

storage unit at the site into which the 
carbon dioxide will be injected2  7,b7  
the principal potential modes of        
geomechanical failure in the geological 
storage unit2  7,c7 the ability of the  
geological storage unit to retain       
injected carbon dioxide2  7,d7 the      
measurement1 monitoring1 and            
verification requirements necessary to  
ensure adequate information on the      
operation of the geological storage unit
 during and after the injection of      
carbon dioxide2 and  7,e7 a study and   
report on the rate of injection of      
carbon dioxide from power plants 7based 
on operating the plant on a             
#bd-;hours-a-day1 #g-;days-a-week1 and  
#cfe-;days-a-year basis over several    
decades7 necessary to avoid-- 7i7       
imbalances of carbon dioxide2 and  7ii7 
making the proposed geological formation
 of the site into which the carbon      
dioxide will be injected unusable1      
unstable1 or such that there would be   
forced stoppages of injection2  7#b7    

have legal authority to use the land or 
interests in land necessary for-- 7,a7  
the injection of the carbon dioxide at  
the proposed geological storage unit or 
enhanced oil recovery site2 and  7,b7   
the storage1 closure1 monitoring1 and   
long-term stewardship of the geological 
storage unit for geological storage of  
carbon dioxide2 and  7#c7 sequester not 
fewer than #ejj1jjj metric tons of      
carbon dioxide in #a contiguous         
geographic and geologic formation4  7e7 
,terms and conditions ,the ,secretary   
shall condition receipt of financial    
assistance pursuant to a cooperative    
agreement under this section on the     
recipient agreeing-- 7#a7 to comply with
 all applicable ,federal and ,state laws
 7including regulations71 including--   
7,a7 the requirements of the underground
 injection control program under part ,c
 of the ,safe ,drinking ,water ,act 7#db
 ,u4,s4,c4 #cjj;h et seq47 7referred to 
in this section as the ,,uic program72  
and  7,b7 any other ,federal and ,state 

requirements to protect drinking water  
supplies2 and  7#b7 in the case of      
industrial sources subject to the ,clean
 ,air ,act 7#db ,u4,s4,c4 #gdja et      
seq471 to inject only carbon dioxide    
captured from industrial sources in     
compliance with that ,act4  7f7         
,indemnification agreements for         
geological storage  7#a7 ,definition of 
liability ,in this subsection1 the term 
liability means any legal liability     
for-- 7,a7 bodily injury1 sickness1     
disease1 or death2  7,b7 loss of or     
damage to property1 or loss of use of   
property2 or  7,c7 injury to or         
destruction or loss of natural          
resources1 including fish1 wildlife1 and
 drinking water supplies4  7#b7         
,agreements ,not later than #a year     
after the date of the receipt by the    
,secretary of a completed application   
for assistance authorized under         
subsection 7c71 the ,secretary may agree
 to indemnify and hold harmless the     
recipient of a cooperative agreement    

under this section from liability       
arising out of or resulting from a      
demonstration project in excess of the  
amount of liability covered by financial
 protection maintained by the recipient 
in accordance with the requirements of  
the ,,uic program4  7#c7 ,exception for 
gross negligence and intentional        
misconduct ,notwithstanding paragraph   
7#a71 the ,secretary may not indemnify  
the recipient of a cooperative agreement
 under this section from liability      
arising out of conduct of a recipient   
that is grossly negligent or that       
constitutes intentional misconduct4     
7#d7 ,collection of fees  7,a7 ,in      
general ,the ,secretary shall collect a 
fee from any person with whom an        
agreement for indemnification is        
executed under this subsection in an    
amount that is equal to the net present 
value of payments made by the ,united   
,states to cover liability under the    
indemnification agreement4  7,b7 ,amount
 ,the ,secretary shall establish1 by    

regulation1 criteria for determining the
 amount of the fee1 taking into         
account-- 7i7 the likelihood of an      
incident resulting in liability to the  
,united ,states under the               
indemnification agreement2 and  7ii7    
other factors pertaining to the hazard  
of the indemnified project4  7,c7 ,use  
of fees ,fees collected under this      
paragraph shall be deposited in the     
,treasury and credited to miscellaneous 
receipts4  7#e7 ,contracts in advance of
 appropriations  7,a7 ,in general       
,subject to subparagraph 7,b71 the      
,secretary may enter into agreements of 
indemnification under this subsection in
 advance of appropriations and incur    
obligations without regard to section   
#acda of title #ca1 ,united ,states     
,code 7commonly known as the            
,anti-,deficiency ,act71 or section #aa 
of title #da1 ,united ,states ,code     
7commonly known as the ,adequacy of     
,appropriations ,act74  7,b7 ,limitation
 ,the amount of indemnification under   

this subsection shall not exceed        
#aj1jjj1jjj1jjj 7adjusted not less than 
once during each #e-year period         
following the date of enactment of this 
section1 in accordance with the         
aggregate percentage change in the      
,consumer ,price ,index since the       
previous adjustment under this          
subparagraph71 in the aggregate1 for all
 persons indemnified in connection with 
an agreement and for each project1      
including such legal costs as are       
approved by the ,secretary4  7#f7       
,conditions of agreements of            
indemnification  7,a7 ,in general ,the  
agreement shall provide that1 if the    
,secretary makes a determination that   
there is a substantial likelihood that  
the ,united ,states will be required to 
make indemnity payments under the       
agreement1 the ,attorney ,general-- 7i7 
shall collaborate with the recipient of 
an award under this subsection2 and     
7ii7 may-- 7,i7 approve the payment of  
any claim under the agreement of        

indemnification2  7,,ii7 appear on      
behalf of the recipient2  7,,iii7 take  
charge of an action2 and  7,,iv7 settle 
or defend an action4  7,b7 ,settlement  
of claims  7i7 ,in general ,the         
,attorney ,general shall have final     
authority on behalf of the ,united      
,states to settle or approve the        
settlement of any claim under this      
subsection on a fair and reasonable     
basis with due regard for the purposes  
of this subsection4  7ii7 ,expenses ,the
 settlement shall not include expenses  
in connection with the claim incurred by
 the recipient4  7g7 ,federal land  7#a7
 ,in general ,the ,secretary concerned  
may authorize the siting of a project on
 ,federal land under the jurisdiction of
 the ,secretary concerned in a manner   
consistent with applicable laws and land
 management plans and subject to such   
terms and conditions as the ,secretary  
concerned determines to be necessary4   
7#b7 ,framework for geological carbon   
sequestration on public land ,in        

determining whether to authorize a      
project on ,federal land1 the ,secretary
 concerned shall take into account the  
framework for geological carbon         
sequestration on public land prepared in
 accordance with section #gad of the    
,energy ,independence and ,security ,act
 of #bjjg 7,public ,law #aaj-adj2 #aba  
,stat4 #agae74  7h7 ,acceptance of title
 and long-,term monitoring  7#a7 ,in    
general ,as a condition of a cooperative
 agreement under this section1 the      
,secretary may accept title to1 or      
transfer of administrative jurisdiction 
from another ,federal agency over1 any  
land or interest in land necessary for  
the monitoring1 remediation1 or         
long-term stewardship of a project site4
  7#b7 ,long-term monitoring activities 
for geological storage ,after accepting 
title to1 or transfer of1 a site closed 
in accordance with this section1 the    
,secretary shall monitor the site and   
conduct any remediation activities to   
ensure the geological integrity of the  

site and prevent any endangerment of    
public health or safety4  7#c7 ,funding 
,there is appropriated to the           
,secretary1 out of funds of the         
,treasury not otherwise appropriated1   
such sums as are necessary to carry out 
paragraph 7#b74  7i7 ,authorization of  
appropriations ,there are authorized to 
be appropriated to carry out this       
section such sums as are necessary4  4  
#ajb4 ,research1 development and        
demonstration programs  7a7 ,in general 
,section #ifb of the ,energy ,policy    
,act of #bjje 7#db ,u4,s4,c4 #afbib7 is 
amended-- 7#a7 in subsection 7a7-- 7,a7 
in paragraph 7#aj71 by striking and at  
the end2  7,b7 in paragraph 7#aa71 by   
striking the period at the end and      
inserting 2 and2 and  7,c7 by adding at 
the end the following3  7#ab7 specific  
additional programs to address water use
 and reuse2  7#ac7 the testing1         
including the construction of testing   
facilities1 for high temperature        
materials for use in advanced systems   

for combustion or use of coal2 and      
7#ad7 innovations to application of     
existing coal conversion systems        
designed to increase efficiency of      
conversion1 flexibility of operation1   
and other modifications to address      
existing usage requirements4  2  7#b7 by
 redesignating subsections 7b7 through  
7d7 as subsections 7c7 through 7e71     
respectively2  7#c7 by inserting after  
subsection 7a7 the following3  7b7      
,transformational coal technology       
program  7#a7 ,in general ,as part of   
the program established under subsection
 7a71 the ,secretary may carry out a    
program designed to undertake research1 
development1 and demonstration of       
technologies1 including the accelerated 
development of-- 7,a7 chemical looping  
technology2  7,b7 supercritical carbon  
dioxide power generation cycles2  7,c7  
pressurized oxycombustion1 including new
 and retrofit technologies2 and  7,d7   
other technologies that are             
characterized by the use of-- 7i7       

alternative energy cycles2  7ii7        
thermionic devices using waste heat2    
7iii7 fuel cells2  7iv7 replacement of  
chemical processes with biotechnology2  
7v7 nanotechnology2  7vi7 new materials 
in applications 7other than extending   
cycles to higher temperature and        
pressure71 such as membranes or         
ceramics2  7vii7 carbon utilization     
7other than enhanced oil recovery71 such
 as construction materials1 using low   
quality energy to reconvert back to a   
fuel1 or manufactured food2  7viii7     
advanced gas separation concepts2 and   
7ix7 other technologies1 including--    
7,i7 modular1 manufactured components2  
and  7,,ii7 innovative production or    
research techniques1 such as using      
#c-;,d printer systems1 for the         
production of early research and        
development prototypes4  7#b7 ,cost     
share ,in carrying out the program      
described in paragraph 7#a71 the        
,secretary may enter into partnerships  
with private entities to share the costs

 of carrying out the program4  2 and    
7#d7 in subsection 7c7 7as so           
redesignated7-- 7,a7 by striking        
paragraph 7#a7 and inserting the        
following3  7#a7 ,in general ,in        
carrying out programs authorized by this
 section1 during each of calendar years 
#bjae1 #bjag1 #bjbj1 and annually       
thereafter1 the ,secretary shall        
identify cost and performance goals for 
coal-based technologies that would      
permit the continued cost-competitive   
use of coal for the production of       
electricity1 chemical feedstocks1       
transportation fuels1 and other         
marketable products4  2 and  7,b7 in    
paragraph 7#b71 by striking date of     
enactment of this ,act each place it    
appears and inserting date of enactment 
of the ,advanced ,clean ,coal           
,technology ,investment in ,our ,nation 
,act of #bjad4  7b7 ,advisory committee2
 authorization of appropriations        
,section #ifc of the ,energy ,policy    
,act of #bjje 7#db ,u4,s4,c4 #afbic7 is 

amended-- 7#a7 in subsection 7c71 by    
striking paragraph 7#f7 and inserting   
the following3  7#f7 ,advisory committee
  7,a7 ,in general ,subject to          
subparagraph 7,b71 the ,secretary shall 
establish an advisory committee-- 7i7 to
 undertake1 not less frequently than    
once every #c years1 a review and       
prepare a report on the progress being  
made by the ,department of ,energy to   
achieve the goals described in          
subsections 7a7 and 7b7 of section #ifb 
and subsection 7b7 of this section2 and 
7ii7 to assess and provide              
recommendations on how the capture of   
carbon from other fossil fuels could be 
supported through the objectives        
described in subsection 7b74  7,b7      
,membership requirements ,members of the
 advisory committee under subparagraph  
7,a7 shall be appointed by the          
,president4  2 and  7#b7 by striking    
subsection 7d7 and inserting the        
following3  7d7 ,authorization of       
appropriations ,there are authorized to 

be appropriated to carry out section    
#ifb and this section-- 7#a7            
#a1fed1jjj1jjj for fiscal years #bjae   
through #bjah2  7#b7 #e1bhc1jjj1jjj for 
fiscal years #bjai through #bjbe2 and   
7#c7 #c1cjj1jjj1jjj for fiscal years    
#bjbf through #bjce4  4  7c7 ,cost      
sharing reduction ,section #ihh7;b7 of  
the ,energy ,policy ,act of #bjje 7#db  
,u4,s4,c4 #afceb7;b77 is amended by     
striking paragraph 7#c7 and inserting   
the following3  7#c7 ,reduction ,the    
,secretary shall reduce or eliminate the
 requirement of paragraph 7#a7 for a    
research and development activity of an 
applied nature if the ,secretary-- 7,a7 
is petitioned for a reduction by a      
non-,federal source2 and  7,b7          
determines that the reduction is        
necessary and appropriate to achieve the
 purposes and goals of-- 7i7 this ,act2 
and  7ii7 the program or activity for   
which the research or development       
activity is being undertaken4  4  #ajc4 
,innovative technology loan guarantee   

program  7a7 ,in general ,section #agjc 
of the ,energy ,policy ,act of #bjje    
7#db ,u4,s4,c4 #afeac7 is amended by    
adding at the end the following3  7f7   
,other forms of ,federal support allowed
 ,an eligible project that is eligible  
for or in receipt of other forms of     
,federal financial assistance shall not 
be precluded from receiving a loan      
guarantee made pursuant to this section4
  7g7 ,timeline for loan guarantee      
approval for certain projects           
,notwithstanding any other provision of 
law1 not later than #b years after the  
date of enactment of the ,advanced      
,clean ,coal ,technology ,investment in 
,our ,nation ,act of #bjad1 the         
,secretary shall-- 7#a7 give final      
approval to applications for loan       
guarantees under subsection 7a7 for     
projects described in subsection        
7b77#b72 and  7#b7 make loans for those 
projects in amounts equal to            
#b1jjj1jjj1jjj4  4  7b7 ,conforming     
amendments  7#a7 ,title ,,iii of        

division ,c of the ,omnibus             
,appropriations ,act1 #bjji 7,public    
,law #aaa-h2 #abc ,stat4 #fai7 is       
amended in the matter under the heading 
,title #ag innovative technology loan   
guarantee program1 by striking the      
seventh1 eighth1 and ninth provisos4    
7#b7 ,the ,supplemental ,appropriations 
,act1 #bjji 7,public ,law #aaa-cb7 is   
amended by striking section #djh 7#abc  
,stat4 #ahgh74  #ajd4 ,coordination of  
clean coal generating projects  7a7     
,definitions ,in this section1 the term 
eligible clean coal generating projects 
means any project undertaken to install 
and operate an advanced carbon capture  
and storage technology at a new or      
existing steam generating unit4  7b7    
,lead agency ,the ,department of ,energy
 shall be the lead agency for the       
purposes of coordinating all            
requirements under ,federal law with    
respect to eligible clean coal          
generating projects1 including any      
requirements of-- 7#a7 the ,clean ,air  

,act 7#db ,u4,s4,c4 #gdja et seq472     
7#b7 the ,federal ,water ,pollution     
,control ,act 7#cc ,u4,s4,c4 #abea et   
seq472  7#c7 the ,endangered ,species   
,act of #aigc 7#af ,u4,s4,c4 #aeca et   
seq472  7#d7 the ,national              
,environmental ,policy ,act of #aifi    
7#db ,u4,s4,c4 #dcba et seq472 and  7#e7
 the ,safe ,drinking ,water ,act 7#db   
,u4,s4,c4 #cjj;f et seq474  7c7         
,schedule ,in carrying out subsection   
7b71 the ,secretary of ,energy shall    
establish a schedule for all ,federal   
authorizations with respect to each     
eligible project1 including by-- 7#a7   
setting binding intermediate milestones 
and deadlines to ensure expeditious     
completion of all proceedings and final 
action on all ,federal authorizations   
relating to the eligible project2  7#b7 
requiring that all permit decisions and 
related environmental reviews under     
applicable ,federal law shall be        
completed not later than #a year after  
the date on which a complete application

 for each environmental review is       
submitted1 or as soon as practicable    
thereafter2 and  7#c7 coordinating1 to  
the maximum extent practicable1 any     
,state permitting and environmental     
requirements4  7d7 ,memoranda of        
understanding ,to streamline and        
expedite review of ,federal             
authorizations for eligible clean coal  
generating projects1 the ,secretary of  
,energy shall-- 7#a7 enter into         
memoranda of understanding with         
applicable ,federal agencies2  7#b7     
facilitate a pre-application review     
process with applicable ,federal        
agencies2 and  7#c7 consolidate all     
environmental reviews of the eligible   
clean coal generating project into a    
single environmental review document4   
7e7 ,judicial review ,with respect to an
 application for ,federal authorization 
relating to an eligible clean coal      
generating project1 the applicable      
,federal circuit court may review and   
remedy-- 7#a7 any failure by a ,federal 

agency to complete action on the        
application by the date that is #a year 
after the date on which the complete    
application was submitted to the agency2
 and  7#b7 any issuance of an action or 
order by a ,federal agency with respect 
to the application that is inconsistent 
with applicable ,federal law4  ,,ii     
,federal incentives for private         
investment in clean coal technologies   
#bja4 ,seven-year amortization for      
certain systems installed on coal-fired 
electric generation units  7a7 ,in      
general ,subsection 7d7 of section #afi 
of the ,internal ,revenue ,code of #aihf
 is amended by adding at the end the    
following new paragraph3  7#f7 ,special 
rule for systems installed on coal-fired
 electric generation units  7,a7 ,in    
general ,any mechanical or electronic   
system-- 7i7 which is installed on a    
coal-fired electric generation unit     
after the date of the enactment of this 
paragraph1 and  7ii7 which reduces      
carbon dioxide emissions per net        

megawatt hour of electricity generation 
by #a or more of the means described in 
subparagraph 7,b7 or any other means1   
shall be treated for purposes of this   
section as a new identifiable treatment 
facility which abates or controls       
atmospheric pollution or contamination  
by removing1 altering1 disposing1       
storing1 or preventing the creation or  
emission of pollutants1 contaminants1   
wastes1 or heat4 ,paragraph 7#a77;,c7 of
 this subsection1 and subsection 7e71   
shall not apply to any system which is  
so treated4  7,b7 ,means for reducing   
emissions ,the means described in this  
subparagraph are-- 7i7 optimizing       
combustion1  7ii7 optimizing sootblowing
 and heat transfer1  7iii7 upgrading    
steam temperature control capabilities1 
7iv7 reducing exit gas temperatures 7air
 heater modifications71  7v7 predrying  
low rank coals using power plant waste  
heat1  7vi7 modifying steam turbines or 
change the steam path_/blading1  7vii7  
replacing single speed motors with      

variable speed drives for fans and      
pumps1 and  7viii7 improving operational
 controls1 including neural networks4   
7,c7 ,special rule for minimum tax      
,section #ef7;a77#e7 shall not apply to 
property to which this paragraph        
applies4  4  7b7 ,effective date ,the   
amendment made by this section shall    
apply to property placed in service     
after the date of the enactment of this 
,act4  #bjb4 ,credit for carbon         
sequestration from coal facilities  7a7 
,in general ,subpart ,e of part ,,iv of 
subchapter ,a of chapter #a of the      
,internal ,revenue ,code of #aihf is    
amended by inserting after section      
#dh;,d the following new section3       
#dh;,e4 ,qualifying carbon dioxide      
capture1 transport1 and storage         
equipment credit  7a7 ,general rule ,for
 purposes of section #df1 the qualifying
 carbon dioxide capture1 transport1 and 
storage equipment credit for any taxable
 year is an amount equal to #cj percent 
of the qualified investment for such    

taxable year4  7b7 ,qualified investment
  7#a7 ,in general ,for purposes of     
subsection 7a71 the qualified investment
 for any taxable year is the basis of   
eligible carbon dioxide capture1        
transport1 and storage property placed  
in service by the taxpayer during such  
taxable year which is part of a         
qualifying clean coal project-- 7,a7 7i7
 the construction1 reconstruction1 or   
erection of which is completed by the   
taxpayer1 or  7ii7 which is acquired by 
the taxpayer if the original use of such
 property commences with the taxpayer1  
and  7,b7 with respect to which         
depreciation 7or amortization in lieu of
 depreciation7 is allowable4  7#b7      
,special rule for certain subsidized    
property ,rules similar to section      
#dh7;a77#d7 shall apply for purposes of 
this section4  7#c7 ,certain qualified  
progress expenditures rules made        
applicable ,rules similar to the rules  
of subsections 7c77#d7 and 7d7 of       
section #df 7as in effect on the day    

before the enactment of the ,revenue    
,reconciliation ,act of #aiij7 shall    
apply for purposes of this section4  7c7
 ,definitions ,for purposes of this     
section-- 7#a7 ,coal ,the term coal     
means bituminous coal1 subbituminous    
coal1 and lignite4  7#b7 ,eligible      
carbon dioxide capture1 transport1 and  
storage property ,the term eligible     
carbon dioxide capture1 transport1 and  
storage property means any property--   
7,a7 which is used to capture1          
transport1 or store carbon dioxide      
emitted at a qualifying clean coal      
project1 including equipment used to    
separate and pressurize carbon dioxide  
for transport 7including equipment to   
operate such equipment71  7,b7 7i7 the  
construction1 reconstruction1 or        
erection of which is completed by the   
taxpayer1 or  7ii7 which is acquired by 
the taxpayer if the original use of such
 property commences with the taxpayer1  
and  7,c7 with respect to which         
depreciation 7or amortization in lieu of

 depreciation7 is allowable4  7#c7      
,qualified polygeneration plant ,the    
term qualified polygeneration plant     
means a plant that produces #b or more  
marketable products1 including          
electricity1 chemicals1 liquid or       
gaseous fuels1 and carbon dioxide for   
beneficial use or sale4  7#d7           
,qualifying clean coal project  7,a7 ,in
 general ,the term qualifying clean coal
 project means any project if such      
project-- 7i7 uses-- 7,i7 gasification  
technology 7as defined in section       
#dh;,b7c77#b771 or  7,,ii7 coal as not  
less than #ge percent of the project    
fuel source1  to produce electricity or 
is a polygeneration plant1 and  7ii7    
7,i7 is a new project which is designed 
to meet the requirements of subparagraph
 7,b71 or  7,,ii7 consists of retrofits 
to existing equipment such that the     
project meets the requirements of       
subparagraph 7,b74  7,b7 ,requirements  
7i7 ,in general ,a project shall meet   
the emission requirement of clause 7ii7 

and the carbon capture requirement of   
clause 7iii74  7ii7 ,emission           
requirement ,the requirement of this    
clause is met if the project is         
designed-- 7,i7 to emit carbon dioxide  
at an average annual rate of less than  
#a1ajj pounds per net megawatt hour of  
electrical generation1 or  7,,ii7 such  
that the carbon dioxide emissions of    
such project are no greater than half of
 the average carbon dioxide emissions   
for facilities producing electricity    
during #bjje from the same coal rank as 
such project1 as determined under       
regulations prescribed by the ,secretary
 in consultation with the ,secretary of 
,energy and the ,administrator of the   
,environmental ,protection ,agency4     
7iii7 ,carbon capture requirement ,the  
requirement of this clause is met-- 7,i7
 if such unit is among the first #a1jjj 
megawatts of electric generation units  
certified by the ,secretary under       
subsection 7e71 to capture and sequester
 not less than #ejj1jjj metric tons per 

year of carbon dioxide1  7,,ii7 if such 
unit is among the next #c1jjj megawatts 
of electric generation units certified  
by the ,secretary under subsection 7e71 
to capture and sequester not less than  
#a1jjj1jjj metric tons per year of      
carbon dioxide1 and  7,,iii7 for any    
other unit1 to capture and sequester not
 less than #b1jjj1jjj metric tons per   
year of carbon dioxide4  7d7 ,aggregate 
credits  7#a7 ,in general ,no credit    
shall be allowed under this section with
 respect to any qualifying clean coal   
project unless such project is certified
 by the ,secretary under subsection 7e74
  7#b7 ,limitation on projects certified
 ,the ,secretary may certify under      
subsection 7e7 no more than-- 7,a7 #bj  
projects described in subsection        
7c77#d77;,a77ii77,i71 and  7,b7 #bj     
projects described in subsection        
7c77#d77;,a77ii77,,ii74  7e7            
,certification  7#a7 ,certification     
process ,the ,secretary1 in consultation
 with the ,secretary of ,energy and the 

,administrator of the ,environmental    
,protection ,agency1 shall establish a  
certification process to determine if a 
project meets all criteria and other    
requirements to be recognized as a      
qualifying clean coal project4  7#b7    
,feedstock requirements ,after the date 
of publication by the ,secretary of the 
final certification process referred to 
in paragraph 7#a71 the ,secretary shall 
allocate the limitation in subsection   
7d77#b7 in equal amounts among-- 7,a7   
projects using bituminous coal as a     
primary feedstock1  7,b7 projects using 
subbituminous coal as a primary         
feedstock1 and  7,c7 projects using     
lignite as a primary feedstock4  7#c7   
,redistribution ,the ,secretary may     
reallocate credits if the ,secretary    
determines that there is an insufficient
 quantity of qualifying applications for
 certification1 pending at the time of  
review1 to comply with the feedstock    
requirements of paragraph 7#b74 ,the    
,secretary may conduct an additional    

program for applications for            
certification and reallocate available  
credits without regard to the feedstock 
requirement which was not satisfied as a
 result of insufficient applications for
 certification4  7#d7 ,requirements for 
applications for certification ,an      
application for certification shall     
contain such information as the         
,secretary may require in order to make 
a determination to accept or reject the 
application and establish applicable    
credit entitlement4 ,any information    
contained in the application shall be   
protected as provided in section        
#eeb7;b77#d7 of title #e1 ,united       
,states ,code4  7f7 ,denial of double   
benefit ,no credit shall be allowed     
under this section for any property for 
which credit is allowed under sections  
#dh;,a1 #dh;,b1 or #dh;,c4  4  7b7      
,conforming amendments  7#a7 ,section   
#df of such ,code 7relating to amount of
 credit7 is amended by striking and at  
the end of paragraph 7#e71 by striking  

the period at the end of paragraph 7#f7 
and inserting 1 and1 and by adding at   
the end the following new paragraph3    
7#g7 the qualifying carbon dioxide      
capture1 transport1 and storage         
equipment credit4  4  7#b7 ,subparagraph
 7,c7 of section #di7;a77#a7 of such    
,code is amended by striking and at the 
end of clause 7v71 by striking the      
period at the end of clause 7vi7 and    
inserting 1 and1 and by adding after    
clause 7vi7 the following new clause3   
7vii7 the basis of any qualifying carbon
 dioxide capture1 transport1 and storage
 equipment under section #dh;,e4  4     
7#c7 ,the table of sections for subpart 
,e of part ,,iv of subchapter ,a of     
chapter #a of such ,code is amended by  
inserting after the item relating to    
section #dh;,d the following new item3  
,sec4 #dh;,e4 ,qualifying carbon dioxide
 capture1 transport1 and storage        
equipment credit4  4  7c7 ,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 #dh7m7 of the ,internal ,revenue
 ,code of #aihf 7as in effect on the day
 before the date of the enactment of the
 ,revenue ,reconciliation ,act of       
#aiij74  #bjc4 ,variable price support  
for carbon dioxide sequestration  7a7   
,definitions ,in this section3 7#a7     
,carbon dioxide price difference ,the   
term carbon dioxide price difference    
means the amount calculated in          
accordance with subsection 7f77#a74     
7#b7 ,design capacity ,the term design  
capacity means a project that has the   
capacity to capture-- 7,a7 not fewer    
than #c1jjj1jjj tons of carbon dioxide  
annually2 or  7,b7 fewer than #c1jjj1jjj
 tons of carbon dioxide annually if     
agreed to by the ,secretary and project 
owner4  7#c7 ,eligible project ,the term
 eligible project means a project that--
 7,a7 captures and sells carbon dioxide 
that is used for enhanced recovery and  
generates electricity or gaseous or     

liquid fuels1 or is a qualified         
polygeneration plant 7as defined in     
section #dh;,e7c7 of the ,internal      
,revenue ,code of #aihf72  7,b7 is      
located in the ,united ,states2  7,c7   
uses coal as not less than #ge percent  
of the project fuel source2  7,d7       
captures not less than #ej percent of   
carbon dioxide produced by coal         
conversion2  7,e7 has reached design    
capacity2 and  7,f7 has a contract with 
an enhanced recovery company that is for
 a period that is equal to or greater   
than the subsidy period4  7#d7 ,enhanced
 recovery ,the term enhanced recovery   
means enhanced oil recovery and enhanced
 gas recovery4  7#e7 ,lowest bid ,the   
term lowest bid means a bid made by an  
applicant to the program that has the   
least cost to the ,federal ,government1 
as compared to competing bids4  7#f7    
,market price of oil ,the term market   
price of oil means the price of oil as  
reported in a public oil market index   
such as the ,new ,york ,mercantile      

,exchange4  7#g7 ,program ,the term     
program means the ,enhanced ,recovery   
,program established under subsection   
7b74  7#h7 ,qualifying carbon dioxide   
,the term qualifying carbon dioxide     
means carbon dioxide that is captured   
from an eligible project and is eligible
 for variable price support4  7#i7 ,rate
 ,the term rate means the ratio bid by  
the project owner of the price of carbon
 dioxide to the market price of oil1 and
 that is used to calculate the synthetic
 price of carbon dioxide4  7#aj7        
,secretary ,the term ,secretary means   
the ,secretary of ,energy4  7#aa7       
,strike price of carbon dioxide ,the    
term strike price of carbon dioxide     
means the price of carbon dioxide bid by
 the project owner-- 7,a7 below which a 
project will receive a subsidy2 and     
7,b7 above which the project owner will 
make payments to the ,federal           
,government4  7#ab7 ,subsidy period ,the
 term subsidy period means the period of
 time1 not to exceed #aj years1 bid by  

the project owner during which the      
eligible project will be eligible to    
receive a subsidy under this section4   
7#ac7 ,synthetic price of carbon dioxide
 ,the term synthetic price of carbon    
dioxide means the price of carbon       
dioxide calculated by multiplying the   
market price of oil by the rate4  7#ad7 
,variable price support ,the term       
variable price support means financial  
support provided by the ,federal        
,government in an amount equal to the   
carbon dioxide price difference for each
 ton of qualifying carbon dioxide       
provided directly to the owner of an    
eligible project selected to receive    
assistance under this section4  7b7     
,establishment2 purpose  7#a7 ,in       
general ,there is established in the    
,department of ,energy a variable price 
support program1 to be known as the     
,enhanced ,recovery ,program1 to        
accelerate the construction and         
operation of eligible advanced          
coal-fueled projects that capture carbon

 dioxide emissions and sell or use the  
carbon dioxide for enhanced recovery4   
7#b7 ,purpose ,the purpose of the       
program shall be-- 7,a7 to reduce the   
cost of carbon capture by providing     
variable price support to carbon capture
 and sequestration project owners to    
enable the owner to finance eligible    
projects2  7,b7 to advance the          
development and widespread use of carbon
 capture technology2 and  7,c7 to       
increase the domestic production of oil 
and natural gas in the ,united ,states4 
7c7 ,variable price support  7#a7 ,in   
general ,in carrying out the program1   
the ,secretary1 in consultation with the
 ,secretary of the ,treasury1 is        
authorized to provide variable price    
support for eligible projects-- 7,a7 for
 which an application is submitted to   
the ,secretary under subsection 7d72    
7,b7 that are selected under the        
competitive bidding process under       
subsection 7e72 and  7,c7 for which a   
variable price support agreement to     

implement the payment terms described in
 subsections 7f7 and 7g7 is executed4   
7#b7 ,period ,the ,secretary shall      
provide variable price support to an    
eligible project under this section for 
a period of not more than #aj years     
beginning on the date on which the      
eligible project reaches design         
capacity4  7#c7 ,profit sharing         
agreements  7,a7 ,in general ,to be     
eligible to receive variable price      
support under paragraph 7#a71 a project 
owner shall enter into a profit-sharing 
agreement with the ,secretary at the    
time that the variable price support    
agreement is executed4  7,b7 ,payments  
,once every calendar quarter1 for each  
project owner subject to a              
profit-sharing agreement executed under 
subparagraph 7,a71 the ,secretary shall 
calculate whether the synthetic price of
 carbon dioxide is greater than the     
strike price of carbon dioxide1 and1 if 
so1 request from the project owner a    
profit-sharing payment for that quarter1

 in an amount equal to-- 7i7 the        
difference between the synthetic price  
of carbon dioxide and the strike price  
of carbon dioxide2 less  7ii7 any       
repayments made under subsection 7g7    
during that calendar quarter4  7d7      
,applications ,an owner of an eligible  
project desiring variable price support 
under this section shall submit to the  
,secretary an application at such time1 
in such manner1 and containing such     
information as the ,secretary may       
require4  7e7 ,selection2 competitive   
bidding process  7#a7 ,in general ,once 
every year1 the ,secretary shall solicit
 bids from applicants for an allocation 
of the funding made available under     
subsection 7h7 to provide variable price
 support to eligible projects4  7#b7    
,bid submission ,applicants             
participating in the competitive bidding
 process shall submit a bid for an      
eligible project that includes-- 7,a7   
the strike price of carbon dioxide for a
 ton of qualifying carbon dioxide2  7,b7

 a rate2  7,c7 a plan for the project   
for a period of not more than #aj years2
 and  7,d7 the projected tonnage of     
qualifying carbon dioxide that the      
eligible project will capture and sell  
for enhanced recovery over the project  
period4  7#c7 ,selection ,for each      
fiscal year1 the ,secretary shall-- 7,a7
 determine the cost to the ,federal     
,government of each bid submitted under 
paragraph 7#b72 and  7,b7 7i7 select #a 
or more of the lowest bids until all of 
the available funding authorized by     
subsection 7h7 is obligated2 or  7ii7 if
 the ,secretary determines that no bids 
submitted under paragraph 7#b7 are      
acceptable to the ,secretary1 reject the
 bids4  7f7 ,administration  7#a7 ,in   
general ,in carrying out a variable     
price support agreement entered into    
under subsection 7c71 the ,secretary    
shall calculate the carbon dioxide price
 difference as a dollar amount equal    
to-- 7,a7 the strike price of carbon    
dioxide2 less  7,b7 the synthetic price 

of carbon dioxide in a qualifying ton4  
7#b7 ,payments ,payments between the    
,secretary and the project owner shall  
be made as follows3 7,a7 ,if the amount 
calculated in paragraph 7#a7 is a       
positive number1 the ,secretary shall   
pay to the project owner an amount equal
 to the product obtained by             
multiplying-- 7i7 the carbon dioxide    
price difference calculated under       
paragraph 7#a72 and  7ii7 the quantity  
in tons of qualifying carbon dioxide    
sold for enhanced recovery4  7,b7 ,if   
the amount calculated in paragraph 7#a7 
is a negative number1 the project owner 
shall pay to the ,secretary an amount   
equal to the product obtained by        
multiplying-- 7i7 the absolute value of 
the carbon dioxide price difference     
calculated under paragraph 7#a72 and    
7ii7 the quantity in tons of qualifying 
carbon dioxide sold for enhanced        
recovery4  7,c7 ,payments between the   
,secretary and the project owner made   
under subparagraphs 7,a7 and 7,b7 shall 

be reconciled on an annual basis based  
on-- 7i7 daily carbon dioxide sales     
records reported by the project owner2  
and  7ii7 the daily price of ,west      
,texas intermediate crude oil listed in 
the ,new ,york ,mercantile ,exchange4   
7g7 ,payments to the ,federal           
,government  7#a7 ,in general ,the      
,secretary shall establish terms and    
conditions for a variable price support 
agreement entered into under subsection 
7c77#a77;,c74  7#b7 ,repayments ,the    
repayment terms of any variable price   
support agreement shall commence if1    
during the subsidy period of the        
agreement1 and subject to the           
limitations described in paragraph 7#c71
 the amount calculated under subsection 
7f77#a7 is a positive number4  7#c7     
,limitations  7,a7 ,in general ,the     
repayment terms described in paragraph  
7#b7 shall be subject to the following  
limitations3 7i7 ,if1 during any        
calendar quarter during the subsidy     
period of the variable price support    

agreement1 the synthetic price of carbon
 dioxide is less than the strike price  
of carbon dioxide1 the project owner may
 elect to defer all or part of the      
repayment obligations of the project    
owner due in that quarter and any unpaid
 obligations will continue to accrue    
interest4  7ii7 ,if1 during any calendar
 quarter during the subsidy period of   
the variable price support agreement1   
the synthetic price of carbon dioxide is
 greater than the strike price of carbon
 dioxide1 the project owner-- 7,i7 shall
 meet the scheduled repayment           
obligations plus any deferred repayment 
obligations2 but  7,,ii7 shall not be   
required to pay in that quarter an      
amount that is greater than the amount  
equal to the product obtained by        
multiplying-- 7aa7 the excess of the    
synthetic price of carbon dioxide over  
the strike price of carbon dioxide2 and 
7bb7 the output of the project4  7,b7   
,repayments beyond subsidy term ,at the 
end of the subsidy period of the        

agreement1 the cumulative amount of any 
deferred repayment obligations1 together
 with accrued interest1 shall be        
amortized 7with interest7 over the      
remainder of the full term of the       
agreement4  7h7 ,funding  7#a7 ,in      
general ,prior to selecting bids under  
subsection 7e77#c7 for a fiscal year1   
the ,secretary shall make available to  
carry out the program the following     
amounts1 to be allocated from           
unobligated funds of the ,department of 
,energy4  ,years3,available             
,credit3,year #aa1cej1jjj,year          
#ba1cej1jjj,year #ca1cej1jjj,year       
#db1gjj1jjj,year #eb1gjj1jjj,year       
#fb1gjj1jjj,year #gd1jej1jjj,year       
#he1djj1jjj,year #i and                 
thereafter#f1gej1jjj4  7#b7 ,extension  
,if the amounts made available under    
paragraph 7#a7 for a fiscal year are not
 used during the applicable fiscal      
year-- 7,a7 the program shall be        
extended for an additional fiscal year2 
and  7,b7 the amounts authorized under  

paragraph 7#a7 that were not used during
 the applicable fiscal year shall be    
carried over to carry out the program   
during the additional fiscal year4      
#bjd4 ,clean energy coal bonds  7a7 ,in 
general  7#a7 ,treatment as tax credit  
bonds ,subpart ,i of part ,,iv of       
subchapter ,a of chapter #a of the      
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new section3  #ed;,g4 ,clean  
energy coal bonds  7a7 ,clean energy    
coal bond ,for purposes of this         
subchapter-- 7#a7 ,in general ,the term 
clean energy coal bond means any bond   
issued as part of an issue if-- 7,a7 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 7b77#b71    
7,b7 so much of the available project   
proceeds from the sale of such issue as 
is equal to #ie percent of the excess   
of-- 7i7 the total available project    

proceeds from the sale of such issue1   
over  7ii7 the amounts in a reasonably  
required reserve 7within the meaning of 
section #aej7;a77#c77 with respect to   
such issue1  are to be used for capital 
expenditures incurred by qualified      
borrowers for #a or more qualified      
projects1  7,c7 the qualified issuer    
makes an irrevocable election to have   
this section apply1  7,d7 the qualified 
issuer designates such bond for purposes
 of this section and the bond is in     
registered form1 and  7,e7 in lieu of   
the requirements of section             
#ed;,a7d77#b71 the issue meets the      
requirements of subsection 7c74  7#b7   
,qualified project2 special use rules   
7,a7 ,in general ,the term qualified    
project means a qualified clean coal    
project 7as defined in subsection       
7h77#a77 placed in service by a         
qualified borrower4  7,b7 ,refinancing  
rules ,for purposes of paragraph        
7#a77;,b71 a qualified project may be   
refinanced with proceeds of a clean     

energy coal bond only if the            
indebtedness being refinanced 7including
 any obligation directly or indirectly  
refinanced by such indebtedness7 was    
originally incurred by a qualified      
borrower after the date of the enactment
 of this section4  7,c7 ,reimbursement  
,for purposes of paragraph 7#a77;,b71 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 project1 but only if--   
7i7 prior to the payment of the original
 expenditure1 the qualified borrower    
declared its intent to reimburse such   
expenditure with the proceeds of a clean
 energy coal bond1  7ii7 not later than 
#fj days after payment of the original  
expenditure1 the qualified issuer adopts
 an official intent to reimburse the    
original expenditure with such proceeds1
 and  7iii7 reimbursement is not made   
later than #ah months after the date the
 original expenditure is paid or the    

date the project is placed in service or
 abandoned1 but in no event more than #c
 years after the original expenditure is
 paid4  7,d7 ,treatment of changes in   
use ,for purposes of paragraph          
7#a77;,b71 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 
project4 ,the ,secretary shall prescribe
 regulations specifying remedial actions
 that may be taken 7including conditions
 to taking such remedial actions7 to    
prevent an action described in the      
preceding sentence from causing a bond  
to fail to be a clean energy coal bond4 
7b7 ,limitation on amount of bonds      
designated  7#a7 ,national limitation   
,there is a national clean energy coal  
bond limitation of #e1jjj1jjj1jjj4  7#b7
 ,allocation by ,secretary ,the         
,secretary shall allocate the amount    
described in paragraph 7#a7 among       

qualified projects in such manner as the
 ,secretary determines appropriate4  7c7
 ,special rules relating to expenditures
  7#a7 ,in general ,an issue shall be   
treated as meeting the requirements of  
this subsection if1 as of the date of   
issuance1 the qualified issuer          
reasonably expects-- 7,a7 #ajj percent  
or more of the available project        
proceeds from the sale of the issue are 
to be spent for #a or more qualified    
projects within the #e-year period      
beginning on the date of issuance of the
 clean energy bond1  7,b7 a binding     
commitment with a third party to spend  
at least #aj percent of such available  
project proceeds from the sale of the   
issue will be incurred within the       
#f-month period beginning on the date of
 issuance of the clean energy bond or1  
in the case of a clean energy bond the  
available project proceeds of which are 
to be loaned to #b or more qualified    
borrowers1 such binding commitment will 
be incurred within the #f-month period  

beginning on the date of the loan of    
such proceeds to a qualified borrower1  
and  7,c7 such projects will be         
completed with due diligence and the    
available project proceeds from the sale
 of the issue will be spent with due    
diligence4  7#b7 ,extension of period   
,upon submission of a request prior to  
the expiration of the period described  
in paragraph 7#a77;,a71 the ,secretary  
may extend such period if the qualified 
issuer establishes that the failure to  
satisfy the #e-year requirement is due  
to reasonable cause and the related     
projects will continue to proceed with  
due diligence4  7#c7 ,failure to spend  
required amount of bond proceeds within 
#e years ,to the extent that less than  
#ajj percent of the available project   
proceeds of such issue are expended by  
the close of the #e-year period         
beginning on the date of issuance 7or if
 an extension has been obtained under   
paragraph 7#b71 by the close of the     
extended period71 the qualified issuer  

shall redeem all of the nonqualified    
bonds within #ij days after the end of  
such period4 ,for purposes of this      
paragraph1 the amount of the            
nonqualified bonds required to be       
redeemed shall be determined in the same
 manner as under section #adb4  7d7     
,reduced credit amount ,the annual      
credit determined under section         
#ed;,a7b7 with respect to any clean coal
 energy bond shall be #gj percent of the
 amount so determined without regard to 
this subsection4  7e7 ,cooperative      
electric company2 qualified energy tax  
credit bond lender2 governmental body2  
qualified borrower ,for purposes of this
 section-- 7#a7 ,cooperative electric   
company ,the term cooperative electric  
company means a mutual or cooperative   
electric company described in section   
#eja7;c77#ab7 or section                
#acha7;a77#b77;,c71 or a not-for-profit 
electric utility which has received a   
loan or loan guarantee under the ,rural 
,electrification ,act4  7#b7 ,clean     

energy bond lender ,the term clean      
energy bond lender means a lender which 
is a cooperative which is owned by1 or  
has outstanding loans to1 #ajj or more  
cooperative electric companies and is in
 existence on ,february #a1 #bjjb1 and  
shall include any affiliated entity     
which is controlled by such lender4     
7#c7 ,public power entity ,the term     
public power entity means a ,state      
utility with a service obligation1 as   
such terms are defined in section #bag  
of the ,federal ,power ,act 7as in      
effect on the date of enactment of this 
paragraph74  7#d7 ,qualified issuer ,the
 term qualified issuer means-- 7,a7 a   
clean energy bond lender1  7,b7 a       
cooperative electric company1 or  7,c7 a
 public power entity4  7#e7 ,qualified  
borrower ,the term qualified borrower   
means-- 7,a7 a mutual or cooperative    
electric company described in section   
#eja7;c77#ab7 or #acha7;a77#b77;,c71 or 
7,b7 a public power entity4  7f7        
,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 issue4  7g7      
,gross-,up of payment to issuers in case
 of sequestration ,in the case of any   
payment due under section #fdca7;b7 by  
reason of section #fdca7;f77#c77;,a77v7 
which is subject to reduction in        
accordance with a sequestration report  
prepared by the ,director of the ,office
 of ,management and ,budget pursuant to 
the ,balanced ,budget and ,emergency    
,deficit ,control ,act of #aihe or the  
,statutory ,pay-,as-,you-,go ,act of    
#bjaj-- 7#a7 the amount of such payment 
shall be increased to an amount equal to
 the product of-- 7,a7 the amount of    
such payment as determined before the   
reduction in accordance with the        
sequestration report1 and  7,b7 a       
fraction the numerator of which is #a   
and the denominator of which is the     
excess of-- 7i7 #ajj1 over  7ii7 the    

percentage by which such payment is     
reduced 7without regard to this         
subsection7 in accordance with the      
sequestration report1 and  7#b7 such    
increase shall be treated as not subject
 to the sequestration report4  7h7      
,other definitions and special rules    
,for purposes of this section-- 7#a7    
,qualified clean coal project ,the term 
qualified clean coal project means--    
7,a7 an atmospheric pollution control   
facility 7within the meaning of section 
#afi7;d77#a771  7,b7 a qualifying clean 
coal project 7within the meaning of     
section #dh;,e7c77#a771  7,c7 a         
qualified facility 7within the meaning  
of section #de,q7c771 or  7,d7 an       
integrated gasification combined cycle  
unit1 supercritical coal-fired power    
plant1 or ultrasupercritical coal-fired 
power plant1 with an energy efficiency  
percentage 7as defined in section       
#dh7;c77#c77;,c77i77 that is not less   
than #e percentage points greater than  
the average energy efficiency percentage

 for coal electrical production         
facilities in the ,united ,states and   
corrected for the impact of carbon      
capture 7as determined by the ,secretary
 of ,energy74  7#b7 ,definitions  7,a7  
,integrated gasification combined cycle 
unit ,the term integrated gasification  
combined cycle unit means an electric   
generation unit that produces           
electricity by converting coal to       
synthesis gas that is used to fuel a    
combined-cycle plant that produces      
electricity from both a combustion      
turbine 7including a combustion         
turbine_/fuel cell hybrid7 and a steam  
turbine4  7,b7 ,pooled financing bond   
,the term pooled financing bond shall   
have the meaning given such term by     
section #adi7;f77#f77;,a74  7,c7        
,supercritical coal-fired power plant   
,the term supercritical coal-fired power
 plant means a coal-fired power plant   
operating at pressures such that water  
boils first and then is converted to    
superheated steam4  7,d7                

,ultrasupercritical coal-fired power    
plant ,the term ultrasupercritical      
coal-fired power plant means a power    
plant described in subparagraph 7,c7    
operating above supercritical pressure  
and at steam temperatures above #a1ajj  
degrees ,fahrenheit4  4  7#b7 ,bonds not
 subject to maturity limitation         
,paragraph 7#e7 of section #ed;,a7d7 of 
such ,code is amended by adding at the  
end the following new subparagraph3     
7,c7 ,special rule for clean energy coal
 bonds ,the requirements of this        
paragraph shall not apply to a clean    
energy coal bond under section #ed;,g4  
4  7#c7 ,conforming amendments  7,a7    
,paragraph 7#a7 of section #ed;,a7d7 of 
the ,internal ,revenue ,code of #aihf is
 amended by striking or at the end of   
subparagraph 7,d71 by inserting or at   
the end of subparagraph 7,e71 and by    
inserting after subparagraph 7,e7 the   
following new subparagraph3  7,f7 a     
clean energy coal bond1  4  7,b7 ,the   
table of sections for subpart ,i of part

 ,,iv of subchapter ,a of chapter #a of 
the ,internal ,revenue ,code of #aihf is
 amended by adding at the end the       
following new item3  ,sec4 #ed;,g4      
,clean energy coal bonds4  4  7b7 ,bonds
 treated as specified tax credit bonds  
7#a7 ,in general ,section               
#fdca7;f77#c77;,a7 of the ,internal     
,revenue ,code of #aihf is amended by   
striking or at the end of clause 7iii71 
by striking and at the end of clause    
7iv7 and inserting or1 and by adding at 
the end the following new clause3  7v7 a
 clean energy coal bond 7as defined in  
section #ed;,g71 and  4  7#b7 ,special  
rule ,paragraph 7#b7 of section         
#fdca7;f7 of such ,code is amended--    
7,a7 by striking clause 7i7 or 7ii7 and 
inserting clause 7i71 7ii71 or 7v72 and 
7,b7 by striking the heading and        
inserting ,special rule for certain     
bonds4  7c7 ,effective date ,the        
amendments made by this section shall   
apply to bonds issued after the date of 
the enactment of this ,act4  ,,iii      

,reports required  #cja4 ,definitions   
,in this title3 7#a7 ,,ccs the term     
,,ccs means carbon capture and storage1 
including geological storage and        
enhanced oil recovery1 as well as other 
forms of carbon utilization4  7#b7      
,secretary ,the term ,secretary means   
the ,secretary of ,energy4  #cjb4       
,reports to ,congress  7a7 ,in general  
,not later than #a year after the date  
of enactment of this ,act1 and annually 
thereafter1 the ,secretary shall submit 
to ,congress and make available to the  
public 7including on the website of the 
,department of ,energy7 a report that-- 
7#a7 provides a comprehensive review of 
the annual progress made by the         
,national ,laboratories and the offices 
of the ,department of ,energy that are  
currently active in researching and     
developing clean coal technologies and  
,,ccs1 including-- 7,a7 the status of   
carbon capture1 transport1 storage1 and 
utilization1 including-- 7i7 an overview
 and evaluation of key technologies2    

7ii7 a description of existing ,,ccs    
infrastructure and demonstration        
projects in the ,united ,states1        
including the status of permitting1     
financing1 and construction and the     
expected date of commencement of        
operations2  7iii7 the associated costs 
of key technologies1 including the      
amount and type of ,federal funding2 and
  7iv7 an estimated timeline to         
commercial scalability2  7,b7 a         
description of the current barriers for 
,,ccs deployment and commercialization1 
including-- 7i7 market failures2  7ii7  
regulatory framework2  7iii7 long-term  
liability for carbon storage2  7iv7     
public outreach2 and  7v7 annual        
progress on overcoming the identified   
barriers2  7,c7 possible solutions to   
address the barriers described in       
subparagraph 7,b71 including-- 7i7      
funding options for ,,ccs projects2     
7ii7 options to improve the current     
legal and regulatory framework2 and     
7iii7 suggestions for ,federal          

,government action on effective public  
outreach2 and  7,d7 a separate review   
that focuses on international research  
and projects sponsored by the           
,department of ,energy1 including-- 7i7 
a clear description of how the ,federal 
,government has participated in each    
project1 including the amount and type  
of ,federal funding2  7ii7 the technical
 and economic status of each project1   
including the expected date of          
commencement of operations2 and  7iii7  
recommendations on-- 7,i7 how to most   
efficiently engage in each project in   
the future2 and  7,,ii7 whether a change
 of funding support could assist in     
those efforts2 and  7#b7 addresses all  
of the international consortia that the 
,federal ,government is currently       
engaged in by-- 7,a7 detailing the type 
of ,federal ,government activity in each
 consortium2  7,b7 including a          
description of any lessons learned by   
participants from the ,federal          
,government as a direct result of       

consortium activity2  7,c7 describing   
the benefits derived from ,federal      
,government involvement2 and  7,d7      
making recommendations for the          
involvement of the ,federal ,government 
in each consortium including-- 7i7      
whether the ,federal ,government should 
continue to participate2 and  7ii7 how  
the ,federal ,government could increase 
the productivity of the consortium1 if  
possible4  7b7 ,additional report ,not  
later than #ah months after the date of 
enactment of this ,act1 and not less    
frequently than once every year for the 
next #e years thereafter1 the ,secretary
 shall submit to ,congress and make     
available to the public 7including on   
the website of the ,department of       
,energy7 a report that-- 7#a7 provides  
an assessment of the upcoming ,,ccs     
projects in ,canada1 including-- 7,a7   
the ,sask,power ,boundary ,dam          
,integrated ,,ccs ,demonstration        
,project2  7,b7 the ,shell ,quest       
,project2 and  7,c7 the ,alberta ,carbon

 ,trunk ,line2 and  7#b7 determines--   
7,a7 whether operation of the ,,ccs     
system is meeting the project goals2    
7,b7 the economic status of the project1
 including-- 7i7 an overview of the     
ratio of private and public funds for   
capital costs2  7ii7 whether the project
 is generating revenue2 and  7iii7 the  
current return on investment2  7,c7     
whether the project is the type of      
project that the ,federal ,government   
should replicate in the ,united ,states 
to move ,,ccs forward on a pilot level2 
7,d7 whether the project could comply   
with subparagraph 7,e7 or 7,f7 if the   
project should be replicated under      
subparagraph 7,c72  7,e7 whether the    
,federal ,government and private        
industry in the ,united ,states can work
 together to develop a similar pilot    
project in the ,united ,states2 and     
7,f7 if the ,federal ,government and    
private industry cannot work together   
under subparagraph 7,e71 whether the    
,federal ,government should work jointly

 with ,canada on a similar project4