Part B—Clean Power Projects
§15971. Integrated coal/renewable energy system
(a) In general
Subject to the availability of appropriations, the Secretary may provide loan guarantees for a project to produce energy from coal of less than 7,000 Btu/lb. using appropriate advanced integrated gasification combined cycle technology, including repowering of existing facilities, that—
(1) is combined with wind and other renewable sources;
(2) minimizes and offers the potential to sequester carbon dioxide emissions; and
(3) provides a ready source of hydrogen for near-site fuel cell demonstrations.
(b) Requirements
The facility—
(1) may be built in stages;
(2) shall have a combined output of at least 200 megawatts at successively more competitive rates; and
(3) shall be located in the Upper Great Plains.
(c) Technical criteria
Technical criteria described in
(d) Investment tax credits
(1) In general
The loan guarantees provided under this section do not preclude the facility from receiving an allocation for investment tax credits under
(2) Other funding
Use of the investment tax credit described in paragraph (1) does not prohibit the use of other clean coal program funding.
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§15972. Loan to place Alaska clean coal technology facility in service
(a) Definitions
In this section:
(1) Borrower
The term "borrower" means the owner of the clean coal technology plant.
(2) Clean coal technology plant
The term "clean coal technology plant" means the plant located near Healy, Alaska, constructed under Department cooperative agreement number DE–FC–22–91PC90544.
(3) Cost of a direct loan
The term "cost of a direct loan" has the meaning given the term in
(b) Authorization
Subject to subsection (c), the Secretary shall use amounts made available under subsection (e) to provide the cost of a direct loan to the borrower for purposes of placing the clean coal technology plant into reliable operation for the generation of electricity.
(c) Requirements
(1) Maximum loan amount
The amount of the direct loan provided under subsection (b) shall not exceed $80,000,000.
(2) Determinations by Secretary
Before providing the direct loan to the borrower under subsection (b), the Secretary shall determine that—
(A) the plan of the borrower for placing the clean coal technology plant in reliable operation has a reasonable prospect of success;
(B) the amount of the loan (when combined with amounts available to the borrower from other sources) will be sufficient to carry out the project; and
(C) there is a reasonable prospect that the borrower will repay the principal and interest on the loan.
(3) Interest; term
The direct loan provided under subsection (b) shall bear interest at a rate and for a term that the Secretary determines appropriate, after consultation with the Secretary of the Treasury, taking into account the needs and capacities of the borrower and the prevailing rate of interest for similar loans made by public and private lenders.
(4) Additional terms and conditions
The Secretary may require any other terms and conditions that the Secretary determines to be appropriate.
(d) Use of payments
The Secretary shall retain any payments of principal and interest on the direct loan provided under subsection (b) to support energy research and development activities, to remain available until expended, subject to any other conditions in an applicable appropriations Act.
(e) Authorization of appropriations
There are authorized to be appropriated such sums as are necessary to provide the cost of a direct loan under subsection (b).
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§15973. Western integrated coal gasification demonstration project
(a) In general
Subject to the availability of appropriations, the Secretary shall carry out a project to demonstrate production of energy from coal mined in the western United States using integrated gasification combined cycle technology (referred to in this section as the "demonstration project").
(b) Components
The demonstration project—
(1) may include repowering of existing facilities;
(2) shall be designed to demonstrate the ability to use coal with an energy content of not more than 9,000 Btu/lb.; and
(3) shall be capable of removing and sequestering carbon dioxide emissions.
(c) All types of western coals
Notwithstanding the foregoing, and to the extent economically feasible, the demonstration project shall also be designed to demonstrate the ability to use a variety of types of coal (including subbituminous and bituminous coal with an energy content of up to 13,000 Btu/lb.) mined in the western United States.
(d) Location
The demonstration project shall be located in a western State at an altitude of greater than 4,000 feet above sea level.
(e) Cost sharing
The Federal share of the cost of the demonstration project shall be determined in accordance with
(f) Loan guarantees
Notwithstanding subchapter XIII, the demonstration project shall not be eligible for Federal loan guarantees.
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Editorial Notes
References in Text
Subchapter XIII, referred to in subsec. (f), was in the original "title XIV", meaning title XIV of
§15974. Coal gasification
The Secretary is authorized to provide loan guarantees for a project to produce energy from a plant using integrated gasification combined cycle technology of at least 400 megawatts in capacity that produces power at competitive rates in deregulated energy generation markets and that does not receive any subsidy (direct or indirect) from ratepayers.
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§15975. Petroleum coke gasification
The Secretary is authorized to provide loan guarantees for at least 5 petroleum coke gasification projects.
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§15976. Electron scrubbing demonstration
The Secretary shall use $5,000,000 from amounts appropriated to initiate, through the Chicago Operations Office, a project to demonstrate the viability of high-energy electron scrubbing technology on commercial-scale electrical generation using high-sulfur coal.
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§15977. Department of Energy transportation fuels from Illinois basin coal
(a) In general
The Secretary shall carry out a program to evaluate the commercial and technical viability of advanced technologies for the production of Fischer-Tropsch transportation fuels, and other transportation fuels, manufactured from Illinois basin coal, including the capital modification of existing facilities and the construction of testing facilities under subsection (b).
(b) Facilities
For the purpose of evaluating the commercial and technical viability of different processes for producing Fischer-Tropsch transportation fuels, and other transportation fuels, from Illinois basin coal, the Secretary shall support the use and capital modification of existing facilities and the construction of new facilities at—
(1) Southern Illinois University Coal Research Center;
(2) University of Kentucky Center for Applied Energy Research; and
(3) Energy Center at Purdue University.
(c) Gasification products test center
In conjunction with the activities described in subsections (a) and (b), the Secretary shall construct a test center to evaluate and confirm liquid and gas products from syngas catalysis in order that the system has an output of at least 500 gallons of Fischer-Tropsch transportation fuel per day in a 24-hour operation.
(d) Milestones
(1) Selection of processes
Not later than 180 days after August 8, 2005, the Secretary shall select processes for evaluating the commercial and technical viability of different processes of producing Fischer-Tropsch transportation fuels, and other transportation fuels, from Illinois basin coal.
(2) Agreements
Not later than 1 year after August 8, 2005, the Secretary shall offer to enter into agreements—
(A) to carry out the activities described in this section, at the facilities described in subsection (b); and
(B) for the capital modifications or construction of the facilities at the locations described in subsection (b).
(3) Evaluations
Not later than 3 years after August 8, 2005, the Secretary shall begin, at the facilities described in subsection (b), evaluation of the technical and commercial viability of different processes of producing Fischer-Tropsch transportation fuels, and other transportation fuels, from Illinois basin coal.
(4) Construction of facilities
(A) In general
The Secretary shall construct the facilities described in subsection (b) at the lowest cost practicable.
(B) Grants or agreements
The Secretary may make grants or enter into agreements or contracts with the institutions of higher education described in subsection (b).
(e) Cost sharing
The cost of making grants under this section shall be shared in accordance with
(f) Authorization of appropriations
There is authorized to be appropriated to carry out this section $85,000,000 for the period of fiscal years 2006 through 2010.
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