183
ized by this title $200,000,000 for each of the fiscal years 
2003 through 2011, to remain available until expended. 
(b) LIMIT ON USE OF FUNDS.—Notwithstanding sub-
section (a), no funds may be used to carry out the activities 
authorized by this title after September 30, 2005, unless the 
Secretary has transmitted to the Committee on Energy and 
Commerce and the Committee on Science of the House of 
Representatives, and to the Senate, the report required by 
this subsection and one month has elapsed since that trans-
mission. The report shall include, with respect to subsection 
(a), a 10-year plan containing—
(1) a detailed assessment of whether the aggre-
gate funding levels provided under subsection (a) are 
the appropriate funding levels for that program; 
(2) a detailed description of how proposals will 
be solicited and evaluated, including a list of all ac-
tivities expected to be undertaken; 
(3) a detailed list of technical milestones for each 
coal and related technology that will be pursued; and 
(4) a detailed description of how the program 
will avoid problems enumerated in General Account-
ing Office reports on the Clean Coal Technology Pro-
gram, including problems that have resulted in 
unspent funds and projects that failed either finan-
cially or scientifically.
184
(c) APPLICABILITY.—Subsection (b) shall not apply to 
any project begun before September 30, 2005. 
SEC. 502. PROJECT CRITERIA. 
(a) IN GENERAL.—The Secretary shall not provide 
funding under this title for any project that does not ad-
vance efficiency, environmental performance, and cost com-
petitiveness well beyond the level of technologies that are 
in commercial service or have been demonstrated on a scale 
that the Secretary determines is sufficient to demonstrate 
that commercial service is viable as of the date of the enact-
ment of this Act. 
(b) TECHNICAL CRITERIA FOR CLEAN COAL POWER 
INITIATIVE.—
(1) GASIFICATION.—(A) In allocating the funds 
made available under section 501(a), the Secretary 
shall ensure that at least 80 percent of the funds are 
used only for projects on coal-based gasification tech-
nologies, including gasification combined cycle, gasifi-
cation fuel cells, gasification coproduction, and hy-
brid 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
185
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 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. 
(C) Beginning in fiscal year 2009, the Secretary 
may use funds under this paragraph for a project 
that does not meet the criteria described in subpara-
graph (A), but only if—
(i) the Secretary finds that the project is 
likely to result in greater emissions reductions 
than would a project funded pursuant to sub-
paragraph (A); 
(ii) the Secretary finds that the project 
would permit (but not necessarily include) the 
activities described in paragraph (5); and
186
(iii) the Secretary notifies the Congress of 
the project at the time when it is approved. 
(2) OTHER
PROJECTS.—For projects not de-
scribed in paragraph (1), the Secretary shall set tech-
nical 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 achieve substantial reductions in 
mercury emissions; and 
(D) 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 technical 
milestones under paragraphs (1)(B) and (2), the Sec-
retary shall consult with the Administrator of the En-
vironmental Protection Agency and interested enti-
187
ties, including coal producers, industries using coal, 
organizations to promote coal or advanced coal tech-
nologies, environmental organizations, and organiza-
tions representing workers. 
(4) EXISTING UNITS.—In the case of projects at 
existing units, in lieu of the thermal efficiency re-
quirements set forth in paragraph (1)(B)(iv) and 
(2)(D), the projects shall be designed to achieve an 
overall thermal design efficiency improvement com-
pared to the efficiency of the unit as operated, 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; 
or 
(C) 4 percent for coal of less than 7,000 
Btu. 
(5) PERMITTED
USES.—In allocating funds 
made available under section 501, 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—
188
(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 effectively; 
and 
(3) a market exists for the technology being dem-
onstrated or applied, as evidenced by statements of 
interest in writing from potential purchasers of the 
technology. 
(d) FINANCIAL ASSISTANCE.—The Secretary shall pro-
vide financial assistance to projects that meet the require-
ments 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 generating 
facilities that use coal as the primary feedstock as of 
the date of the enactment of this Act.
189
(e) FEDERAL SHARE.—The Federal share of the cost 
of a coal or related technology project funded by the Sec-
retary shall not exceed 50 percent. 
(f) APPLICABILITY.—No technology, or level of emis-
sion reduction, shall be treated as adequately demonstrated 
for purposes of section 111 of the Clean Air Act, achievable 
for purposes of section 169 of that Act, or achievable in 
practice for purposes of section 171 of that Act solely by 
reason of the use of such technology, or the achievement of 
such emission reduction, by one or more facilities receiving 
assistance under this title. 
SEC. 503. REPORT. 
Not later than 1 year after the date of the enactment 
of this Act, and once every 2 years thereafter through 2011, 
the Secretary, in consultation with other appropriate Fed-
eral agencies, shall transmit to the Committee on Energy 
and Commerce and the Committee on Science of the House 
of Representatives, and to the Senate, a report describing—
(1) the technical milestones set forth in section 
502 and how those milestones ensure progress toward 
meeting the requirements of subsections (b)(1)(B) and 
(b)(2) of section 502; and 
(2) the status of projects funded under this title.
190
SEC. 504. CLEAN COAL CENTERS OF EXCELLENCE. 
As part of the program authorized in section 501, the 
Secretary shall award competitive, merit-based grants to 
universities for the establishment of Centers of Excellence 
for Energy Systems of the Future. The Secretary shall pro-
vide grants to universities that can show the greatest poten-
tial for advancing new clean coal technologies.
Union Calendar No. 94
108TH CONGRESS 
1ST SESSION 
H. R. 238
[Report No. 108–128, Part I] 
A BILL 
To provide for Federal energy research, develop-
ment, demonstration, and commercial application 
activities, and for other purposes. 
JUNE 27, 2003
Committee on Resources discharged; committed to the 
Committee of the Whole House on the State of the 
Union and ordered to be printed