§15962 Project Criteria

Summary

Projects must be much more advanced and more efficient than coal power technologies that were in commercial use or demonstrated as viable on August 8, 2005. At least 70 percent of the money must go to coal-based 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). The Secretary must set technical goals over time that get stricter during the clean coal power initiative and that aim, by 2020, for very low emissions and high efficiency for those gasification projects: remove at least 99% 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 by at least 95%, and reach thermal efficiencies of 50% (coal >9,000 Btu), 48% (7,000–9,000 Btu), or 46% (<7,000 Btu). Up to 30 percent of funds may go to other projects, which must meet slightly less strict 2020 targets: remove at least 97% of SO2, emit no more than 0.08 lb NOx per million Btu, cut mercury by at least 90%, and reach thermal efficiencies of 43% (>9,000 Btu), 41% (7,000–9,000 Btu), or 39% (<7,000 Btu). Before setting these goals, the Secretary must consult the EPA Administrator and interested groups (coal producers, coal-using industries, coal promoters, environmental groups, worker organizations, and consumer groups). For units that existed on August 8, 2005, the goals can be framed as efficiency improvements instead of absolute targets: at least 7% improvement (>9,000 Btu), 6% (7,000–9,000 Btu), or 4% (<7,000 Btu). The Secretary must adjust for site elevation, exclude energy used for CO2 capture when capture is at least 50% from efficiency calculations, and may give priority to projects that capture CO2 or reduce natural gas demand. Recipients must show they are financially responsible, must give enough information so the Secretary can check spending, and must show a market exists with written interest from potential buyers. The Secretary will fund projects that meet the rules and are likely to cut coal use costs, help coal stay competitive to keep fuel choices, and show methods that apply to 25 percent of coal-fired electric plants (as of August 8, 2005). Cost sharing is required under section 16352. The Secretary sets a reasonable time to finish construction or demonstration; recipients must agree not to request extensions, though the Secretary may extend once for up to 4 years if delay is beyond the recipient’s control. The Secretary may hold or transfer property interests from cost-share agreements to any entity, including the United States. For up to 5 years after operations finish, the Secretary may protect trade secrets and confidential commercial information from release. Achievements made only by projects getting this help do not by themselves count as “adequately demonstrated” or “achievable” under Clean Air Act sections 7411, 7479, or 7501.