I 
108TH CONGRESS 
1ST SESSION H. R. 1269
To provide for research, development, and demonstration on coal and related 
technologies, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 13, 2003
Mr. COSTELLO (for himself, Mr. BOUCHER, Mr. WHITFIELD, Mr. SHIMKUS, 
Mr. LIPINSKI, and Mr. MOLLOHAN) introduced the following bill; which 
was referred to the Committee on Science 
A BILL 
To provide for research, development, and demonstration on 
coal and related technologies, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Coal Energy Research, 
Development, and Demonstration Act of 2003’’. 
SEC. 2. DEFINITIONS. 
For purposes of this Act: 
(1) COST
AND
PERFORMANCE
GOALS.—The 
term ‘‘cost and performance goals’’ means the cost
and performance goals established under section 
101(a). 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
TITLE I—COAL RESEARCH AND 
DEVELOPMENT 
SEC. 101. COAL AND RELATED TECHNOLOGIES PROGRAMS. 
(a) ESTABLISHMENT OF COST AND PERFORMANCE 
GOALS.—
(1) IN GENERAL.—The Secretary shall perform 
an assessment that identifies cost and performance 
goals, for achievement in 2007, 2015, and the years 
after 2020, for technologies that would permit the 
continued cost-competitive use of coal for electricity 
generation, as chemical feedstocks, and as transpor-
tation fuel. 
(2) CONSULTATION.—In establishing the cost 
and performance goals under this subsection, the 
Secretary shall—
(A) consider activities and studies under-
taken by industry in cooperation with the De-
partment of Energy in support of the assess-
ment performed under paragraph (1); and 
(B) consult with interested entities, includ-
ing coal producers, industries using coal, orga-
nizations to promote coal and advanced coal 
technologies, environmental organizations, and 
organizations representing workers. 
(3) TIMING.—The Secretary shall—
(A) not later than 120 days after the date 
of enactment of this Act, issue a set of draft 
cost and performance goals for public comment; 
and 
(B) not later than 180 days after the date 
of enactment of this Act, after taking into con-
sideration any public comments received, trans-
mit to Congress the final cost and performance 
goals. 
(b) STUDY.—
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, and once every 2 
years thereafter through 2016, the Secretary, in co-
operation with other appropriate Federal agencies, 
shall conduct and transmit to the Congress a study 
to—
(A) identify technologies that, by them-
selves or in combination with other tech-
nologies, may be capable of achieving the cost 
and performance goals;
(B) assess the costs that would be incurred 
by, and the period of time that would be re-
quired for, the development and demonstration 
of technologies that, by themselves or in com-
bination with other technologies, contribute to 
the achievement of the cost and performance 
goals; 
(C) develop recommendations for tech-
nology development programs, which the De-
partment of Energy could carry out in coopera-
tion with industry, to develop and demonstrate 
technologies that, by themselves or in combina-
tion with other technologies, achieve the cost 
and performance goals; and 
(D) develop recommendations for addi-
tional authorities required to achieve the cost 
and performance goals and review and rec-
ommend changes, if any, to those cost and per-
formance goals if the Secretary determines that 
such changes are necessary as a result of ongo-
ing research, development, and demonstration 
of technologies. 
(2) EXPERT ADVICE.—In carrying out this sub-
section, the Secretary shall give due weight to the
expert advice of representatives of the entities de-
scribed in subsection (a)(2)(B). 
SEC. 102. PRODUCTION AND GENERATION OF COAL-BASED 
POWER. 
(a) IN GENERAL.—The Secretary shall carry out a 
technology research, development, and demonstration pro-
gram to facilitate production and generation of coal-based 
power through methods and equipment under—
(1) this title; 
(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 XVI of the Energy Policy Act of 1992 
(42 U.S.C. 13381 et seq.). 
(b) CONDITIONS.—The program described in sub-
section (a) shall be designed to achieve the cost and per-
formance goals. 
SEC. 103. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—There are authorized to be appro-
priated to the Secretary $200,000,000 for fiscal year 
2005, 
$210,000,000 
for 
fiscal 
year 
2006, 
and 
$220,500,000 for fiscal year 2007, to remain available
until expended, for carrying out the program under section 
102, which may include—
(1) innovations for existing plants; 
(2) integrated gasification combined cycle; 
(3) advanced combustion systems; 
(4) turbines for synthesis gas derived from coal; 
(5) carbon capture and sequestration research 
and development; 
(6) coal-derived transportation fuels and chemi-
cals; 
(7) solid fuels and feedstocks; 
(8) advanced coal-related research; and 
(9) advanced separation technologies. 
(b) LIMIT ON USE OF FUNDS.—The Secretary shall 
not use funds appropriated under this section until 30 
days after the Secretary has transmitted to the Congress 
a report describing the proposed use of such funds and 
containing a plan that includes—
(1) a detailed description of how proposals, if 
any, will be solicited and evaluated, including a list 
of all activities expected to be undertaken; 
(2) a detailed list of technical milestones for 
each coal and related technology that will be pur-
sued; and
(3) a description of how the programs for which 
such funds are authorized will be carried out so as 
to complement and not duplicate activities author-
ized under the Clean Coal Power Initiative author-
ized under title II. 
TITLE II—CLEAN COAL POWER 
INITIATIVE 
SEC. 201. PROJECT CRITERIA. 
(a) IN GENERAL.—The Secretary shall provide fund-
ing under this title for coal energy generation projects that 
advance efficiency, environmental performance, and cost 
competitiveness well beyond the level of technologies that 
on a full scale are in operation or have been demonstrated 
as of the date of enactment of this Act. 
(b) TECHNICAL CRITERIA FOR CLEAN COAL POWER 
INITIATIVE.—
(1) GASIFICATION.—
(A) TECHNOLOGIES.—In allocating the 
funds made available under section 204(a), the 
Secretary shall ensure that up to 80 percent of 
the funds are used for coal-based gasification 
technologies, including gasification combined 
cycle, gasification fuel cells, gasification co-
production, and hybrid gasification/combustion 
projects.
(B) TECHNICAL
MILESTONES.—The Sec-
retary shall set technical milestones specifying 
emissions levels for projects funded under this 
paragraph. The milestones shall be designed to 
increasingly restrict emissions levels 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 di-
oxide; 
(ii) to emit no more than .05 lb of 
NOX per million BTU; 
(iii) to achieve substantial reductions 
in mercury emissions; and 
(iv) to achieve a thermal efficiency 
of—
(I) 60 percent for coal of more 
than 9,000 Btu; 
(II) 59 percent for coal of 7,000 
to 9,000 Btu; and 
(III) 50 percent for coal of less 
than 7,000 Btu. 
(2) OTHER PROJECTS.—For projects not de-
scribed in paragraph (1), the Secretary shall set 
technical milestones specifying emissions levels. The
milestones shall be designed to increasingly restrict 
emissions levels 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 lb of NOX 
per million BTU; 
(C) to achieve substantial reductions in 
mercury emissions; and 
(D) except as provided in paragraph (4), 
to achieve a thermal efficiency of—
(i) 45 percent for coal of more than 
9,000 Btu; 
(ii) 44 percent for coal of 7,000 to 
9,000 Btu; and 
(iii) 40 percent for coal of less than 
7,000 Btu. 
(3) CONSULTATION.—Before setting the tech-
nical milestones under paragraphs (1)(B) and (2), 
the Secretary shall consult with the Administrator of 
the Environmental Protection Agency and interested 
entities, including coal producers, industries using 
coal, organizations to promote coal or advanced coal 
technologies, environmental organizations, and orga-
nizations representing workers.
(4) EXISTING UNITS.—In the case of projects 
at coal-powered electricity generating facilities exist-
ing as of the date of enactment of this Act, in lieu 
of the thermal efficiency requirements set forth in 
paragraph (1)(B)(iv) and (2)(D), the projects shall 
be designed to achieve an overall thermal efficiency 
improvement, compared to the efficiency of the unit 
as of the date of enactment of this Act, of not less 
than—
(A) 7 percent for coal of more than 9,000 
Btu; 
(B) 6 percent for coal of 7,000 to 9,000 
Btu; and 
(C) 4 percent for coal of less than 7,000 
Btu. 
(5) PERMITTED USES.—In allocating amounts 
made available under this title, the Secretary may 
fund projects that include as part of the project the 
separation and capture of carbon dioxide. 
(c) FINANCIAL CRITERIA.—The Secretary shall not 
provide a funding award under this title unless the recipi-
ent 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 informa-
tion to the Secretary for the Secretary to ensure 
that the award funds are spent efficiently and effec-
tively; 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) FINANCIAL ASSISTANCE.—The Secretary shall 
provide financial assistance to projects that meet the re-
quirements of subsections (a), (b), and (c) and are likely 
to—
(1) achieve overall cost reductions in the utiliza-
tion of coal to generate useful forms of energy; 
(2) improve the competitiveness of coal among 
various forms of energy in order to maintain a diver-
sity of fuel choices in the United States to meet elec-
tricity generation requirements; and 
(3) demonstrate methods and equipment that 
are applicable to 25 percent of the electricity gener-
ating facilities that use coal as the primary feedstock 
as of the date of the enactment of this Act. 
(e) FEDERAL SHARE.—The Federal share of the cost 
of a project funded under this title shall not exceed 50 
percent.
(f) APPLICABILITY.—No technology, or level of emis-
sion reduction, shall be treated as adequately dem-
onstrated for purposes of any other statute solely by rea-
son of the use of such technology, or the achievement of 
such emission reduction, by one or more facilities receiving 
assistance under this title, unless this title is specifically 
referenced in such statute. 
SEC. 202. REPORT. 
Not later than 1 year after the date of the enactment 
of this Act, and once every 2 years thereafter through 
2012, the Secretary, in consultation with other appro-
priate Federal agencies, shall transmit to the Congress a 
report describing—
(1) the technical milestones set forth in section 
201 and how those milestones ensure progress to-
ward meeting the requirements of subsections 
(b)(1)(B) and (b)(2) of section 201; and 
(2) the status of projects funded under this 
title. 
SEC. 203. CLEAN COAL CENTERS OF EXCELLENCE. 
As part of the program authorized under this title, 
the Secretary shall award competitive, merit-based grants 
to universities for the establishment of Centers of Excel-
lence for Energy Systems of the Future. The Secretary 
shall provide grants to universities that can show the
greatest potential for advancing new clean coal tech-
nologies. 
SEC. 204. AUTHORIZATION OF APPROPRIATIONS. 
(a) CLEAN COAL POWER INITIATIVE.—Except as 
provided in subsection (b), there are authorized to be ap-
propriated to the Secretary to carry out the activities au-
thorized by this title $200,000,000 for each of the fiscal 
years 2005 through 2013, to remain available until ex-
pended. 
(b) LIMIT ON USE OF FUNDS.—
(1) OBLIGATION OF FUNDS.—The Secretary is 
authorized to obligate the use of funds under this 
section prior to the fiscal year such funds are au-
thorized for under subsection (a), subject to appro-
priations. 
(2) REPORT.—The Secretary shall transmit to 
the Congress a report describing the proposed use of 
funds which includes—
(A) a detailed assessment of whether the 
aggregate funding levels provided under sub-
section (a) are the appropriate funding levels 
for this title; 
(B) a detailed description of how proposals 
will be solicited and evaluated, including a list 
of all activities expected to be undertaken;
(C) a detailed list of technical milestones 
for each technology that will be pursued; and 
(D) a detailed description of how the ini-
tiative under this title will avoid problems enu-
merated in General Accounting Office reports 
on the Clean Coal Technology Program, includ-
ing problems that have resulted in unspent 
funds and projects that failed either financially 
or scientifically. 
(3) USE OF FUNDS.—The Secretary may not 
use funds appropriated under this section until 30 
days have elapsed after receipt of the report under 
paragraph (2). 
(c) APPLICABILITY.—Subsection (b) shall not apply 
to any project selected before September 30, 2004.
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