§15962 Project criteria

Summary

Projects must be much cleaner, more efficient, and cheaper than the coal technologies that were in commercial use or proven by August 8, 2005. At least 70 percent of the money must go to coal-based gasification projects (for example: gasification combined cycle, gasification with fuel cells or turbine combined cycle, coproduction, hybrid gasification/combustion, and other advanced coal technologies that can make a concentrated CO2 stream). The Secretary will set periodic technical milestones that get stricter over time and must aim by 2020 for coal gasification projects to remove at least 99 percent of SO2 or emit no more than 0.04 lb SO2 per million Btu (30-day average), emit no more than 0.05 lb NOx per million Btu, cut mercury emissions by at least 95 percent, and reach thermal efficiency of at least 50% for coal >9,000 Btu, 48% for 7,000–9,000 Btu, and 46% for <7,000 Btu. Up to 30 percent of funds can go to other projects that must meet similar but slightly lower 2020 goals: 97% SO2 removal, no more than 0.08 lb NOx per million Btu, 90% mercury reduction, and thermal efficiency of 43% (>9,000 Btu), 41% (7,000–9,000 Btu), and 39% (<7,000 Btu). Before setting milestones, the Secretary must talk with the EPA Administrator and interested groups like coal producers, users, industry advocates, environmental groups, workers, and consumers. For projects at units already in existence on August 8, 2005, the goal is a thermal efficiency improvement of at least 7% (>9,000 Btu), 6% (7,000–9,000 Btu), or 4% (<7,000 Btu) instead of the absolute targets. The Secretary will adjust efficiency goals for site elevation and will not count the energy used to capture CO2 when a project separates at least 50% of potential CO2 emissions. Projects that capture CO2 or reduce natural gas demand may get priority. To get money, applicants must show they are financially responsible, will share needed information, and have written interest from potential buyers. Funded projects must also be likely to lower coal energy costs, help coal stay competitive, and show methods that apply to 25% of U.S. coal-fired electricity generators as of August 8, 2005. Cost sharing is required under section 16352. The Secretary sets a deadline to finish construction or demonstration, the recipient must agree not to seek extensions, but the Secretary may extend once for up to 4 years if delays are beyond the recipient’s control. The Secretary may transfer property interests as needed. For up to 5 years after operations end, certain demonstration information that is a trade secret or privileged commercial or financial data may be kept from public release. Meeting these goals with funding under this program does not by itself make a technology or its emission reductions “adequately demonstrated” or “achievable” for the purposes of sections 7411, 7479, or 7501.