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and sequester greenhouse gases which result from the
generation of electricity.
‘‘(5) ELECTRIC
GENERATION
UNIT.—The term
‘electric generation unit’ means any facility at least
50 percent of the total annual net output of which is
electrical power, including an otherwise eligible facil-
ity which is used in an industrial application.
‘‘(6) 
INTEGRATED
GASIFICATION
COMBINED
CYCLE.—The term ‘integrated gasification combined
cycle’ means an electric generation unit which pro-
duces electricity by converting coal to synthesis gas
which is used to fuel a combined-cycle plant which
produces electricity from both a combustion turbine
(including a combustion turbine/fuel cell hybrid) and
a steam turbine.
‘‘(d) QUALIFYING ADVANCED COAL PROJECT PRO-
GRAM.—
‘‘(1) ESTABLISHMENT.—Not later than 180 days
after the date of enactment of this section, the Sec-
retary, in consultation with the Secretary of Energy,
shall establish a qualifying advanced coal project pro-
gram for the deployment of advanced coal-based gen-
eration technologies.
‘‘(2) CERTIFICATION.—
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‘‘(A) APPLICATION
PERIOD.—Each appli-
cant for certification under this paragraph shall
submit an application meeting the requirements
of subparagraph (B). An applicant may only
submit an application during the 3-year period
beginning on the date the Secretary establishes
the program under paragraph (1).
‘‘(B) REQUIREMENTS
FOR
APPLICATIONS
FOR CERTIFICATION.—An application under sub-
paragraph (A) shall contain such information as
the Secretary may require in order to make a de-
termination to accept or reject an application
for certification as meeting the requirements
under subsection (e)(1). Any information con-
tained in the application shall be protected as
provided in section 552(b)(4) of title 5, United
States Code.
‘‘(C) TIME TO ACT UPON APPLICATIONS FOR
CERTIFICATION.—The Secretary shall issue a de-
termination as to whether an applicant has met
the requirements under subsection (e)(1) within
60 days following the date of submittal of the ap-
plication for certification.
‘‘(D) TIME TO MEET CRITERIA FOR CER-
TIFICATION.—Each applicant for certification
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shall have 2 years from the date of acceptance by
the Secretary of the application during which to
provide to the Secretary evidence that the cri-
teria set forth in subsection (e)(2) have been met.
‘‘(E) PERIOD OF ISSUANCE.—An applicant
which receives a certification shall have 5 years
from the date of issuance of the certification in
order to place the project in service and if such
project is not placed in service by that time pe-
riod then the certification shall no longer be
valid.’’.
‘‘(3) AGGREGATE GENERATING CAPACITY.—
‘‘(A) IN
GENERAL.—The aggregate gener-
ating capacity of projects certified by the Sec-
retary under paragraph (2) may not exceed
7,500 megawatts.
‘‘(B) PARTICULAR PROJECTS.—Of the total
megawatts of capacity which the Secretary is au-
thorized to certify—
‘‘(i) 4,125 megawatts shall be available
only for use for integrated gasification com-
bined cycle projects, and
‘‘(ii) 3,375 megawatts shall be avail-
able only for use for projects which use other
advanced coal-based generation technologies.
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‘‘(C) DETERMINATION OF CAPACITY.—In de-
termining capacity under this paragraph in the
case of a retrofitted or repowered plant, capacity
shall be determined based on total design capac-
ity after the retrofit or repowering of the existing
facility is accomplished.
‘‘(5) REVIEW AND REDISTRIBUTION.—
‘‘(A) REVIEW.—Not later than 6 years after
the date of enactment of this section, the Sec-
retary shall review the projects certified and
megawatts allocated under this section as of the
date which is 6 years after the date of enactment
of this section.
‘‘(B) 
REDISTRIBUTION.—The 
Secretary
may reallocate the megawatts available under
clauses (i) and (ii) of paragraph (3)(B) if the
Secretary determines that—
‘‘(i) capacity cannot be used because
there is an insufficient quantity of quali-
fying applications for certification pending
for any available capacity at the time of the
review, or
‘‘(ii) any certification made pursuant
to subsection paragraph (2) has not been re-
voked pursuant to subsection paragraph
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(2)(D) because the project subject to the cer-
tification has been delayed as a result of
third party opposition or litigation to the
proposed project.
‘‘(C) REALLOCATION.—If the Secretary de-
termines that megawatts under clause (i) or (ii)
of paragraph (3)(B) are available for realloca-
tion pursuant to the requirements set forth in
paragraph (2), the Secretary is authorized to
conduct an additional program for applications
for certification.’’.
‘‘(e) QUALIFYING ADVANCED COAL PROJECTS.—
‘‘(1) REQUIREMENTS.—For purposes of sub-
section (c)(1), a project shall be considered a quali-
fying advanced coal project that the Secretary may
certify under subsection (d)(2) if the Secretary deter-
mines that, at a minimum—
‘‘(A) the project uses an advanced coal-based
generation technology—
‘‘(i) to power a new electric generation
unit, or
‘‘(ii) to retrofit or repower an existing
electric generation unit (including an exist-
ing natural gas-fired combined cycle unit),
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‘‘(B) the fuel input for the project, when
completed, is at least 75 percent coal,
‘‘(C) the project, consisting of one or more
electric generation units at one site, will have a
total nameplate generating capacity of at least
400 megawatts;
‘‘(D) the applicant demonstrates that there
is a letter of intent signed by an officer of an en-
tity willing to purchase the majority of the out-
put of the project or signed by an officer of a
utility indicating that the electricity capacity
addition is consistent with that utility’s inte-
grated resource plan as approved by the regu-
latory or governing body that oversees electricity
capacity allocations of the utility;
‘‘(E) there is evidence of ownership or con-
trol of a site of sufficient size to allow the pro-
posed project to be constructed and to operate on
a long-term basis; and
‘‘(F) the project will be located in the
United States.
‘‘(2) REQUIREMENTS FOR CERTIFICATION.—For
the purpose of subsection (d)(2)(D), a project shall be
eligible for certification only if the Secretary deter-
mines that—
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‘‘(A) the applicant for certification has re-
ceived all Federal and State environmental au-
thorizations or reviews necessary to commence
construction of the project; and
‘‘(B) the applicant for certification, except
in the case of a retrofit or repower of an existing
electric generation unit, has purchased or entered
into a binding contract for the purchase of the
main steam turbine or turbines for the project,
except that such contract may be contingent
upon receipt of a certification under subsection
(d)(2).’’.
‘‘(3) PRIORITY FOR INTEGRATED GASIFICATION
COMBINED CYCLE PROJECTS.—In determining which
qualifying advanced coal projects to certify under
subsection (d)(2), the Secretary shall—
‘‘(A) certify capacity, in accordance with
the procedures set forth in subsection (d), in rel-
atively equal amounts to—
‘‘(i) projects using bituminous coal as
a primary feedstock,
‘‘(ii) projects using subbituminous coal
as a primary feedstock, and
‘‘(iii) projects using lignite as a pri-
mary feedstock, and
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‘‘(B) give high priority to projects which in-
clude, as determined by the Secretary—
‘‘(i) greenhouse gas capture capability,
‘‘(ii) increased by-product utilization,
and
‘‘(iii) other benefits.
‘‘(g) ADVANCED COAL-BASED GENERATION TECH-
NOLOGY.—
‘‘(1) IN GENERAL.—For the purpose of this sec-
tion, an electric generation unit uses advanced coal-
based generation technology if—
‘‘(A) the unit—
‘‘(i) uses integrated gasification com-
bined cycle technology, or
‘‘(ii) except as provided in paragraph
(3), has a design net heat rate of 8530 Btu/
kWh (40 percent efficiency), and
‘‘(B) the unit is designed to meet the per-
formance requirements in the following table:
Performance characteristic:
Design level for
project:
SO2 (percent removal) ................................................
99 percent
NOx (emissions) ..........................................................
0.07 lbs/MMBTU
PM* (emissions) .........................................................
0.015 lbs/MMBTU
Hg (percent removal) ..................................................
90 percent
‘‘(2) DESIGN NET HEAT RATE.—For purposes of
this subsection, design net heat rate with respect to an
electric generation unit shall—
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‘‘(A) be measured in Btu per kilowatt hour
(higher heating value),
‘‘(B) be based on the design annual heat
input to the unit and the rated net electrical
power, fuels, and chemicals output of the unit
(determined without regard to the cogeneration
of steam by the unit),
‘‘(C) be adjusted for the heat content of the
design coal to be used by the unit—
‘‘(i) if the heat content is less than
13,500 Btu per pound, but greater than
7,000 Btu per pound, according to the fol-
lowing formula: design net heat rate = unit
net heat rate x [1–{((13,500-design coal
heat 
content, 
Btu 
per 
pound)/1,000)*
0.013}], and
‘‘(ii) if the heat content is less than or
equal to 7,000 Btu per pound, according to
the following formula: design net heat rate
= unit net heat rate x [1–{((13,500-design
coal heat content, Btu per pound)/1,000)*
0.018}], and
‘‘(D) be corrected for the site reference con-
ditions of—
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‘‘(i) elevation above sea level of 500
feet,
‘‘(ii) air pressure of 14.4 pounds per
square inch absolute,
‘‘(iii) temperature, dry bulb of 63/o/F,
‘‘(iv) temperature, wet bulb of 54/o/F,
and
‘‘(v) relative humidity of 55 percent.
(3) EXISTING UNITS.—In the case of any electric
generation unit in existence on the date of the enact-
ment of this section, such unit uses advanced coal-
based generation technology if, in lieu of the require-
ments under paragraph (1)(A)(ii), such unit achieves
a minimum efficiency of 35 percent and an overall
thermal design efficiency improvement, compared to
the efficiency of the unit as operated, of not less
than—
(A) 7 percentage points for coal of more
than 9,000 Btu,
(B) 6 percentage points for coal of 7,000 to
9,000 Btu, or
(C) 4 percentage points for coal of less than
7,000 Btu.
‘‘(h) APPLICABILITY.—No use of technology (or level of
emission reduction solely by reason of the use of the tech-
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nology), and no achievement of any emission reduction by
the demonstration of any technology or performance level,
by or at one or more facilities with respect to which a credit
is allowed under this section, shall be considered to indicate
that the technology or performance level is—
‘‘(1) adequately demonstrated for purposes of sec-
tion 111 of the Clean Air Act (42 U.S. C. 7411);
‘‘(2) achievable for purposes of section 169 of
that Act (42 U.S. C. 7479); or
‘‘(3) achievable in practice for purposes of sec-
tion 171 of such Act (42 U.S.C. 7501).
‘‘SEC. 48B. QUALIFYING GASIFICATION PROJECT CREDIT.
‘‘(a) IN GENERAL.—For purposes of section 46, the
qualifying gasification project credit for any taxable year
is an amount equal to 20 percent of the qualified investment
for such taxable year.
‘‘(b) QUALIFIED INVESTMENT.—
‘‘(1) IN GENERAL.—For purposes of subsection
(a), the qualified investment for any taxable year is
the basis of property placed in service by the taxpayer
during such taxable year which is part of a quali-
fying gasification project—
‘‘(A)(i) the construction, reconstruction, or
erection of which is completed by the taxpayer,
or
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‘‘(ii) which is acquired by the taxpayer if
the original use of such property commences with
the taxpayer, and
‘‘(B) with respect to which depreciation (or
amortization in lieu of depreciation) is allow-
able.
‘‘(2) APPLICABLE RULES.—For purposes of this
section, rules similar to the rules of subsection (a)(4)
and (b) of section 48 shall apply.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFYING GASIFICATION PROJECT.—The
term ‘qualifying gasification project’ means any
project which—
‘‘(A) employs gasification technology,
‘‘(B) will be carried out by an eligible enti-
ty, and
‘‘(C) any portion of the qualified investment
in which is certified under the qualifying gasifi-
cation program as eligible for credit under this
section 
in 
an 
amount 
(not 
to 
exceed
$1,000,000,000) determined by the Secretary.
‘‘(2) GASIFICATION
TECHNOLOGY.—The term
‘gasification technology’ means any process which
converts a solid or liquid product from coal, petro-
leum residue, biomass, or other materials which are
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recovered for their energy or feedstock value into a
synthesis gas composed primarily of carbon monoxide
and hydrogen for direct use or subsequent chemical or
physical conversion.
‘‘(3) BIOMASS.—
‘‘(A) IN
GENERAL.—The term ‘biomass’
means any—
‘‘(i) agricultural or plant waste,
‘‘(ii) byproduct of wood or paper mill
operations, 
including 
lignin 
in 
spent
pulping liquors, and
‘‘(iii) other products of forestry main-
tenance.
‘‘(B) EXCLUSION.—The term ‘biomass’ does
not include paper which is commonly recycled.
‘‘(4) CARBON CAPTURE CAPABILITY.—The term
‘carbon capture capability’ means a gasification
plant design which is determined by the Secretary to
reflect reasonable consideration for, and be capable of,
accommodating the equipment likely to be necessary
to capture carbon dioxide from the gaseous stream, for
later use or sequestration, which would otherwise be
emitted in the flue gas from a project which uses a
nonrenewable fuel.