§15962 Project Criteria

Summary

Pays for projects that do much better than the coal power technology that was in commercial use on August 8, 2005. At least 70% of the money must go to coal gasification projects (like gasification combined cycle, gasification with fuel cells or turbines, coproduction, hybrid gasification/combustion, and other advanced coal tech that can make a concentrated CO2 stream). Up to 30% can fund other types of projects. The Secretary must set periodic, stricter technical goals so that by 2020 gasification projects will, for example, remove at least 99% of sulfur dioxide 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 by at least 95%, and reach thermal efficiencies of 50% (>9,000 Btu coal), 48% (7,000–9,000 Btu), or 46% (<7,000 Btu). Other projects must by 2020 remove 97% SO2, emit no more than 0.08 lb NOx per million Btu, cut mercury by 90%, and reach thermal efficiencies of 43%/41%/39% for the same coal categories. For units already operating on August 8, 2005, the goal can be a net improvement in thermal design efficiency of at least 7%, 6%, or 4% (by coal Btu range). The Secretary must talk with the EPA and with coal producers, users, industry groups, environmental groups, worker and consumer organizations before setting these goals. Site elevation will be considered when judging efficiency. If a project captures at least 50% of its CO2, the energy used for capture is not counted against its efficiency. Projects that include CO2 capture or that reduce natural gas demand may get priority. The Secretary must not give money unless the applicant shows it is financially responsible, will provide enough information to show funds are used well, and has written interest from potential buyers showing a market. Funding will go to projects that meet the rules above and are likely to lower coal energy costs, help coal stay competitive as a fuel, and apply to 25% of the U.S. coal-fired electricity plants (as of August 8, 2005). Cost sharing is required under section 16352. The Secretary will set a reasonable deadline to finish construction or demonstration. Recipients must agree not to ask for an extension, though the Secretary can grant an extension of up to 4 years for reasons beyond the recipient’s control. The Secretary may hold fee title or other property interests. For up to 5 years after operations end, the Secretary can protect demonstration data that would be a trade secret or confidential commercial information. Finally, a technology or emission level reached by a funded project does not by itself count as “adequately demonstrated” or “achievable” under sections 7411, 7479, or 7501.