To authorize research, development, demonstration, and commercial application activities relating to clean coal technologies, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clean Coal Power Initiative Act of 
2001''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) reliable, affordable, increasingly clean electricity 
        will continue to power the growing United States economy;
            (2) an increasing use of electrotechnologies, the desire 
        for continuous environmental improvement, a more competitive 
        electricity market, and concerns about rising energy prices add 
        importance to the need for reliable, affordable, increasingly 
        clean electricity;
            (3) coal, which, as of the date of enactment of this Act, 
        accounts for more than \1/2\ of all electricity generated in 
        the United States, is the most abundant fossil energy resource 
        of the United States;
            (4) coal comprises more than 85 percent of all fossil 
        resources in the United States and exists in quantities 
        sufficient to supply the United States for 250 years at current 
        usage rates;
            (5) investments in electricity generating facility 
        emissions control technology over the past 30 years have 
        reduced the aggregate emissions of pollutants from coal-based 
        generating facilities by 21 percent, even as coal use for 
        electricity generation has nearly tripled; and
            (6) continued environmental improvement in coal-based 
        generation through continued research, development, 
        demonstration, and commercial application toward an ultimate 
        goal of near-zero emissions is important and desirable.

SEC. 3. CLEAN COAL POWER INITIATIVE.

    (a) In General.--The Secretary of Energy (in this Act referred to 
as the ``Secretary'') shall carry out a program of research on and 
development, demonstration, and commercial application of clean coal 
technologies under--
            (1) this Act;
            (2) the Federal Nonnuclear Energy Research and Development 
        Act of 1974 (42 U.S.C. 5901 et seq.);
            (3) the Energy Reorganization Act of 1974 (42 U.S.C. 5801 
        et seq.); and
            (4) title XIII of the Energy Policy Act of 1992 (42 U.S.C. 
        13331 et seq.).
    (b) Conditions.--The research, development, demonstration, and 
commercial application program described in subsection (a) shall be 
designed to achieve cost and performance-based goals established by the 
Secretary under section 4.

SEC. 4. COST AND PERFORMANCE-BASED GOALS.

    (a) Review and Assessment.--The Secretary shall perform an 
assessment that establishes measurable cost and performance-based goals 
for 2005, 2010, 2015, and 2020 for the programs authorized by this Act. 
Such assessment shall be based on the latest scientific and technical 
knowledge, and shall also take into consideration, as appropriate, the 
comparative environmental impacts (including emissions of greenhouse 
gases) of the energy saved or produced by specific programs.
    (b) Consultation.--In establishing the measurable cost and 
performance-based goals under subsection (a), the Secretary shall 
consult with the private sector, institutions of higher learning, 
national laboratories, environmental organizations, professional and 
technical societies, and any other persons as the Secretary considers 
appropriate.
    (c) Schedule.--The Secretary shall--
            (1) issue and publish in the Federal Register a set of 
        draft measurable cost and performance-based goals for the 
        programs authorized by this Act for public comment--
                    (A) in the case of a program established before the 
                date of the enactment of this Act, not later than 120 
                days after the date of the enactment of this Act; and
                    (B) in the case of a program not established before 
                the date of the enactment of this Act, not later than 
                120 days after the date of establishment of the 
                program;
            (2) not later than 60 days after the date of publication 
        under paragraph (1), after taking into consideration any public 
        comments received, transmit to the Congress and publish in the 
        Federal Register the final measurable cost and performance-
        based goals; and
            (3) update all such cost and performance-based goals on a 
        biennial basis.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

    (a) Clean Coal Power Initiative.--Except as provided in subsection 
(c), there are authorized to be appropriated to the Secretary to carry 
out the Clean Coal Power Initiative under section 3 $200,000,000 for 
each of the fiscal years 2002 through 2011, to remain available until 
expended.
    (b) Other Coal and Related Technologies Programs.--Except as 
provided in subsection (c), there are authorized to be appropriated to 
the Secretary $172,000,000 for fiscal year 2002, $179,000,000 for 
fiscal year 2003, and $186,000,000 for fiscal year 2004, to remain 
available until expended, for other coal and related technologies 
research and development programs, which shall include--
            (1) Innovations for Existing Plants;
            (2) Integrated Gasification Combined Cycle;
            (3) advanced combustion systems;
            (4) Turbines;
            (5) Sequestration Research and Development;
            (6) innovative technologies for demonstration;
            (7) Transportation Fuels and Chemicals;
            (8) Solid Fuels and Feedstocks;
            (9) Advanced Fuels Research; and
            (10) Advanced Research.
    (c) Limit on Use of Funds.--Notwithstanding subsections (a) and 
(b), no funds may be used to carry out the activities authorized by 
this Act after September 30, 2002, unless the Secretary has transmitted 
to the Congress the report required by this subsection and 1 month have 
elapsed since that transmission. The report shall include--
            (1) with respect to subsection (a), a 10-year plan 
        containing--
                    (A) a detailed assessment of whether the aggregate 
                funding levels provided under subsection (a) are the 
                appropriate funding levels for that program;
                    (B) a detailed description of how proposals will be 
                solicited and evaluated, including a list of all 
                demonstration activities expected to be undertaken;
                    (C) a detailed list of technical milestones for 
                each coal and related technology that will be pursued;
                    (D) recommendations for a mechanism for recoupment 
                of Federal funding for successful commercial projects; 
                and
                    (E) a detailed description of how the program will 
                avoid problems enumerated in General Accounting Office 
                reports on the Clean Coal Technology Program, including 
                problems that have resulted in unspent funds and 
                projects that failed either financially or 
                scientifically;
            (2) with respect to subsection (b), a plan containing--
                    (A) a detailed description of how proposals will be 
                solicited and evaluated, including a list of all 
                demonstration activities expected to be undertaken; and
                    (B) a detailed list of technical milestones for 
                each coal and related technology that will be pursued; 
                and
            (3) a description of how the programs will be carried out 
        under subsection (a) and subsection (b) so as to complement 
        each other and not duplicate activities.
    (d) Applicability.--Subsection (c) shall not apply to any program, 
project, or activity begun before September 30, 2001.

SEC. 6. PROJECT CRITERIA.

    (a) In General.--The Secretary shall not provide funding for any 
research, development, demonstration, or commercial application of coal 
and related technologies that do not advance efficiency, environmental 
performance, and cost competitiveness well beyond the level of 
technologies that are in operation or have been demonstrated as of the 
date of the enactment of this Act.
    (b) Technical Criteria for Clean Coal Power Initiative.--
            (1) Sequestration and gasification.--(A) In allocating the 
        funds authorized under section 5(a), the Secretary shall ensure 
        that at least 80 percent of the funds are used only for 
        projects on carbon sequestration, or coal-based gasification 
        technologies, including gasification combined cycle, 
        gasification fuel cells, gasification coproduction and hybrid 
        gasification/combustion.
            (B) The Secretary shall set technical milestones specifying 
        emissions levels that coal gasification projects must be 
        designed to and reasonably expected to achieve. The milestones 
        shall get more restrictive through the life of the program. The 
        milestones shall be designed to achieve by 2020 coal 
        gasification projects able--
                    (i) to remove 99 percent of sulfur dioxide;
                    (ii) to emit no more than .05 lbs of NOx per 
                million BTU;
                    (iii) to remove 95 percent of mercury; and
                    (iv) to achieve a thermal efficiency of 60 percent 
                (higher heating value).
            (2) Other projects.--For projects not described in 
        paragraph (1), the Secretary shall set technical milestones 
        specifying emissions levels that the projects must be designed 
        to and reasonably expected to achieve. The milestones shall get 
        more restrictive through the life of the program. The 
        milestones shall be designed to achieve by 2010 projects able--
                    (A) to remove 97 percent of sulfur dioxide;
                    (B) to emit no more than .08 lbs of NOx per million 
                BTU;
                    (C) to remove 90 percent of mercury; and
                    (D) to achieve a thermal efficiency of 45 percent 
                (higher heating value).
    (c) Financial Criteria.--The Secretary shall not provide a funding 
award for any research, development, demonstration, or commercial 
application of coal and related technologies unless the recipient of 
the award has documented to the satisfaction of the Secretary that--
            (1) the award recipient is financially viable without the 
        receipt of additional Federal funding;
            (2) the recipient will provide sufficient information to 
        the Secretary for the Secretary to ensure that the award funds 
        are spent efficiently and effectively; and
            (3) a market exists for the technology being demonstrated 
        or applied, as evidenced by statements of interest in writing 
        from potential purchasers of the technology.
    (d) Federal Share.--The Federal share of the cost of a coal or 
related technology project funded by the Secretary shall not exceed 50 
percent.

Summary: Clean Coal Power Initiative Act of 2001 - Directs the Secretary of Energy to: (1) carry out programs of research on and development, demonstration, and commercial application of clean coal technologies, and other specified coal and related technologies. And (2) perform an assessment that establishes cost and performance goals for such programs for specified five-year periods.