H. R. 6—409
‘‘(ii) to retrofit or repower an existing electric 
generation unit (including an existing natural gas-fired 
combined cycle unit); 
‘‘(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 provides evidence that a majority 
of the output of the project is reasonably expected to be 
acquired or utilized; 
‘‘(E) the applicant provides evidence of ownership or 
control of a site of sufficient size to allow the proposed 
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 determines that— 
‘‘(A) the applicant for certification has received all Fed-
eral and State environmental authorizations 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 relatively equal amounts 
to— 
‘‘(i) projects using bituminous coal as a primary 
feedstock, 
‘‘(ii) projects using subbituminous coal as a pri-
mary feedstock, and 
‘‘(iii) projects using lignite as a primary feedstock, 
and 
‘‘(B) give high priority to projects which include, as 
determined by the Secretary— 
‘‘(i) greenhouse gas capture capability, 
‘‘(ii) increased by-product utilization, and 
‘‘(iii) other benefits. 
‘‘(f) ADVANCED COAL-BASED GENERATION TECHNOLOGY.— 
‘‘(1) IN GENERAL.—For the purpose of this section, an elec-
tric generation unit uses advanced coal-based generation tech-
nology if— 
‘‘(A) the unit— 
‘‘(i) uses integrated gasification combined cycle 
technology, or 
‘‘(ii) except as provided in paragraph (3), has a 
design net heat rate of 8530 Btu/kWh (40 percent 
efficiency), and
H. R. 6—410
‘‘(B) the unit is designed to meet the performance 
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 sub-
section, design net heat rate with respect to an electric genera-
tion unit shall— 
‘‘(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 following 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 for-
mula: 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 conditions of— 
‘‘(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°F, 
‘‘(iv) temperature, wet bulb of 54°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 enactment of this section, 
such unit uses advanced coal-based generation technology if, 
in lieu of the requirements under paragraph (1)(A)(ii), such 
unit achieves a minimum efficiency of 35 percent and an overall 
thermal design efficiency improvement, compared to the effi-
ciency 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. 
‘‘(g) APPLICABILITY.—No use of technology (or level of emission 
reduction solely by reason of the use of the technology), 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
H. R. 6—411
be considered to indicate that the technology or performance level 
is— 
‘‘(1) adequately demonstrated for purposes of section 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 section 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 quali-
fied investment for any taxable year is the basis of eligible 
property placed in service by the taxpayer during such taxable 
year which is part of a qualifying gasification project— 
‘‘(A)(i) the construction, reconstruction, or erection of 
which is completed by the taxpayer, or 
‘‘(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 allowable. 
‘‘(2) SPECIAL RULE FOR CERTAIN SUBSIDIZED PROPERTY.—
Rules similar to section 48(a)(4) shall apply for purposes of 
this section. 
‘‘(3) CERTAIN
QUALIFIED
PROGRESS
EXPENDITURES
RULES 
MADE APPLICABLE.—Rules similar to the rules of subsections 
(c)(4) and (d) of section 46 (as in effect on the day before 
the enactment of the Revenue Reconciliation Act of 1990) shall 
apply for purposes of this section. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFYING GASIFICATION PROJECT.—The term ‘quali-
fying gasification project’ means any project which— 
‘‘(A) employs gasification technology, 
‘‘(B) will be carried out by an eligible entity, and 
‘‘(C) any portion of the qualified investment of which 
is certified under the qualifying gasification program as 
eligible for credit under this section in an amount (not 
to exceed $650,000,000) determined by the Secretary. 
‘‘(2) GASIFICATION
TECHNOLOGY.—The term ‘gasification 
technology’ means any process which converts a solid or liquid 
product from coal, petroleum residue, biomass, or other mate-
rials which are 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) ELIGIBLE
PROPERTY.—The term ‘eligible property’ 
means any property which is a part of a qualifying gasification 
project and is necessary for the gasification technology of such 
project. 
‘‘(4) 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