140
the production of electricity that exceeds the
performance of conventional technology.
‘‘(D) CONVENTIONAL TECHNOLOGY.—The
term ‘conventional technology’ means—
‘‘(i) coal-fired combustion technology
with a design net heat rate of not less than
9,300 Btu’s per kilowatt hour (HHV) and
a carbon equivalents omission rate of not
more than 0.53 pounds of carbon per kilo-
watt hour when the design coal has a heat
content of more than 8,000 Btu per
pound, or
‘‘(ii) coal-fired combustion technology
with a design net heat rate of not less than
10,500 Btu’s per kilowatt hour (HHV)
and a carbon equivalents emission rate of
not more than 0.60 pounds of carbon per
kilowatt hour when the design coal has a
heat content of 8,000 Btu per pound or
less, or
‘‘(iii) natural gas-fired combustion
technology with a design net heat rate of
not less than 7,500 Btu’s per kilowatt
hour (HHV) and a carbon equivalents
141
emission rate of not more than 0.24 pound
of carbon per kilowatt hour.
‘‘(E) DESIGN NET HEAT RATE.—The term
‘design net heat rate’ shall be based on the de-
sign annual heat input to and the design annual
net electrical output from the qualifying ad-
vanced clean coal technology (determined with-
out regard to such technology’s cogeneration of
steam).
‘‘(F) SELECTION CRITERIA.—Selection cri-
teria for clean coal technology facilities—
‘‘(i) shall be established by the Sec-
retary of Energy as part of a competitive
solicitation,
‘‘(ii) shall include primary criteria of
minimum design net heat rate, maximum
design thermal efficiency, and lowest cost
to the Government, and
‘‘(iii) shall include supplemental cri-
teria as determined appropriate by the
Secretary of Energy.
‘‘(c) QUALIFIED INVESTMENT.—For purposes of sub-
section (a), the term ‘qualified investment’ means, with
respect to any taxable year, the basis of a qualifying ad-
142
vanced clean coal technology facility placed in service by
the taxpayer during such taxable year.
‘‘(d) QUALIFIED PROGRESS EXPENDITURES.—
‘‘(1) INCREASE IN QUALIFIED INVESTMENT.—
In the case of a taxpayer who has made an election
under paragraph (5), the amount of the qualified in-
vestment of such taxpayer for the taxable year (de-
termined under subsection (c) without regard to this
section) shall be increased by an amount equal to
the aggregate of each qualified progress expenditure
for the taxable year with respect to progress expend-
iture property.
‘‘(2) PROGRESS EXPENDITURE PROPERTY DE-
FINED.—For purposes of this subsection, the term
‘progress expenditure property’ means any property
being constructed by or for the taxpayer and which
it is reasonable to believe will qualify as a qualifying
advanced clean coal technology facility which is
being constructed by or for the taxpayer when it is
placed in service.
‘‘(3) QUALIFIED PROGRESS EXPENDITURES DE-
FINED.—For purposes of this subsection—
‘‘(A) SELF-CONSTRUCTED PROPERTY.—In
the case of any self-constructed property, the
term ‘qualified progress expenditures’ means
143
the amount which, for purposes of this subpart,
is properly chargeable (during such taxable
year) to capital account with respect to such
property.
‘‘(B) 
NON-SELF-CONSTRUCTED
PROP-
ERTY.—In the case of non-self-constructed
property, the term ‘qualified progress expendi-
tures’ means the amount paid during the tax-
able year to another person for the construction
of such property.
‘‘(4) OTHER
DEFINITIONS.—For purposes of
this subsection—
‘‘(A) SELF-CONSTRUCTED
PROPERTY.—
The term ‘self-constructed property’ means
property for which it is reasonable to believe
that more than half of the construction expendi-
tures will be made directly by the taxpayer.
‘‘(B) 
NON-SELF-CONSTRUCTED
PROP-
ERTY.—The term ‘non-self-constructed prop-
erty’ means property which is not self-con-
structed property.
‘‘(C) CONSTRUCTION, 
ETC.—The term
‘construction’ includes reconstruction and erec-
tion, and the term ‘constructed’ includes recon-
structed and erected.
144
‘‘(D) ONLY
CONSTRUCTION
OF
QUALI-
FYING
ADVANCED
CLEAN
COAL
TECHNOLOGY
FACILITY TO BE TAKEN INTO ACCOUNT.—Con-
struction shall be taken into account only if, for
purposes of this subpart, expenditures therefor
are properly chargeable to capital account with
respect to the property.
‘‘(5) ELECTION.—An election under this sub-
section may be made at such time and in such man-
ner as the Secretary may by regulations prescribe.
Such an election shall apply to the taxable year for
which made and to all subsequent taxable years.
Such an election, once made, may not be revoked ex-
cept with the consent of the Secretary.
‘‘(e) COORDINATION WITH OTHER CREDITS.—This
section shall not apply to any property with respect to
which the rehabilitation credit under section 47 or the en-
ergy credit under section 48 is allowed unless the taxpayer
elects to waive the application of such credit to such prop-
erty.
‘‘(f) TERMINATION.—This section shall not apply
with respect to any qualified investment made more than
10 years after the effective date of this section.’’
145
(c) RECAPTURE.—Section 50(a) of the Internal Rev-
enue Code of 1986 (relating to other special rules) is
amended by adding at the end the following:
‘‘(7) SPECIAL RULES RELATING TO QUALIFYING
ADVANCED CLEAN COAL TECHNOLOGY FACILITY.—
For purposes of applying the subsection in the case
of any credit allowable by reason of section 48B, the
following shall apply:
‘‘(A) GENERAL
RULE.—In lieu of the
amount of the increase in tax under paragraph
(1), the increase in tax shall be an amount
equal to the investment tax credit allowed under
section 38 for all prior taxable years with re-
spect to a qualifying advanced clean coal tech-
nology facility (as defined by section 48B(b)(1))
multiplied by a fraction whose numerator is the
number of years remaining to fully depreciate
under this title the qualifying advanced clean
coal technology facility disposed of, and whose
denominator is the total number of years over
which such facility would otherwise have been
subject to depreciation. For purposes of this
preceding sentence, the year of disposition of
the qualifying advanced clean coal technology
146
facility property shall be treated as a year of re-
maining depreciation.
‘‘(B) PROPERTY CEASES TO QUALIFY FOR
PROGRESS
EXPENDITURES.—Rules similar to
the rules of paragraph (2) shall apply in the
case of qualified progress expenditures for a
qualifying advanced clean coal technology facil-
ity under section 48B, except that the amount
of the increase in tax under subparagraph (A)
of this paragraph shall be substituted in lieu of
the amount described in such paragraph (2).
‘‘(C) APPLICATION OF PARAGRAPH.—This
paragraph shall be applied separately with re-
spect to the credit allowed under section 38 re-
garding a qualifying advanced clean coal tech-
nology facility.’’
(d) TRANSITIONAL RULE.—Section 39(d) of the In-
ternal Revenue Code of 1986 (relating to transitional
rules) is amended by adding at the end the following:
‘‘(12) NO CARRYBACK TO SECTION 48B CREDIT
BEFORE EFFECTIVE DATE.—No portion of the un-
used business credit for any taxable year which is
attributable to the qualifying advanced clean coal
technology facility credit determined under section
147
48B may be carried back to a taxable year ending
before the date of the enactment of section 48B.’’
(e) TECHNICAL AMENDMENTS.—
(1) Section 49(a)(1)(C) is amended by striking
‘‘and’’ at the end of clause (iii), by striking the pe-
riod at the end of clause (iv) and inserting ‘‘, and’’,
and by adding at the end the following:
‘‘(v) the portion of the basis of any
qualifying advanced clean coal technology
facility attributable to any qualified invest-
ment (as defined by section 48B(c)).’’
(2) Section 50(a)(4) is amended by striking
‘‘and (6)’’ and inserting ‘‘, (6), and (7)’’.
(3) Section 50(c)(3) is amended by inserting
after subparagraph (C) the following:
‘‘(D) Any advanced clean coal technology
facility credit shall be exempt from paragraph
(1) and paragraph (2) of section 50(c).
(4) The table of sections for subpart E of part
IV of subchapter A of chapter 1 is amended by in-
serting after the item relating to section 48A the fol-
lowing:
‘‘Sec. 48B. Qualifying advanced clean coal technology facility
credit.’’
(f) INSTALLATIONS NOT SUBJECT TO NEW SOURCE
REVIEW.—
148
(1) Installation of a qualifying advanced clean
coal technology facility shall be exempt from the new
source review provisions of the Clean Air Act (42
U.S.C. 1857 et seq.).
(2) Installation of a qualifying advanced clean
coal technology facility that meets or exceeds, for the
applicable source category, the standards of per-
formance for new stationary sources established
under section 111 of the Clean Air Act (42 U.S.C.
1857 et seq.), shall exempt that facility from any
new or increased emission control requirements
under title I of the Clean Air Act (42 U.S.C. 1857
et seq.) for a period of 10 years after the qualifying
clean coal technology facility is originally placed in
service.
(g) EFFECTIVE DATE.—The amendments made by
this section shall apply to periods after December 31,
2000, under rules similar to the rules of section 48(m)
of the Internal Revenue Code of 1986 (as in effect on the
day before the date of the enactment of the Revenue Rec-
onciliation Act of 1990).
SEC. 302. CREDIT FOR PRODUCTION FROM QUALIFYING
ADVANCED CLEAN COAL TECHNOLOGY.
(a) CREDIT FOR PRODUCTION FROM QUALIFYING
ADVANCED CLEAN COAL TECHNOLOGY.—Subpart D of
149
part IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 (relating to business related credits)
is amended by adding at the end the following:
‘‘SEC. 45F. CREDIT FOR PRODUCTION FROM QUALIFYING
ADVANCED CLEAN COAL TECHNOLOGY.
‘‘(a) GENERAL RULE.—For purposes of section 38,
the qualifying advanced clean coal technology production
credit of any taxpayer for any taxable year is equal to—
‘‘(1) the applicable amount of advanced clean
coal technology production credit, multiplied by
‘‘(2) the kilowatt hours of electricity—
‘‘(A) produced by the taxpayer at a quali-
fying advanced clean coal technology facility
during the 10-year period beginning on the date
the facility was originally placed in service, and
‘‘(B) sold by the taxpayer to an unrelated
person during such taxable year.
‘‘(b) APPLICABLE AMOUNT.—For purposes of this
section, the applicable amount with respect to production
from a qualifying advanced clean coal technology facility
shall be determined as follows:
‘‘(1) In the case of a facility originally placed
in service before 2008, if
150
The facility design net heat rate, Btu/kWh (HHV) is
equal to
The applicable amount is:
For 1st 5
years of such
service
For 2d 5
years of such
service
Not more than 8,400 ..............................................
$.0130
$.0115
More than 8,400 but not more than 8,550 ............
.0100
.0080
More than 8,550 but not more than 8,750 ............
.0075
.0060
‘‘(2) In the case of a facility originally placed
in service after 2007 and before 2012, if
The facility design net heat rate, Btu/kWh (HHV) is
equal to
The applicable amount is:
For 1st 5
years of such
service
For 2d 5
years of such
service
Not more than 7,700 ..............................................
$.0135
$.0110
More than 7,700 but not more than 8,125 ............
.0115
.0090
More than 8,125 but not more than 8,350 ............
.0090
.0080
‘‘(3) In the case of a facility originally placed
in service after 2011 and before 2016, if
The facility design net heat rate, Btu/kWh (HHV) is
equal to
The applicable amount is:
For 1st 5
years of such
service
For 2d 5
years of such
service
Not more than 7,380 ..............................................
$.0155
$.0135
More than 7,380 but not more than 7,720 ............
.0135
.0115
‘‘(c) 
INFLATION
ADJUSTMENT
FACTOR.—Each
amount in paragraphs (1), (2), and (3) shall be adjusted
by multiplying such amount by the inflation adjustment
factor for the calendar year in which the amount is ap-
plied. If any amount as increased under the preceding sen-
tence is not a multiple of 0.01 cent, such amount shall
be rounded to the nearest multiple of 0.01 cent.
152
rules), as amended by section 201(d), is amended by add-
ing at the end the following:
‘‘(13) NO
CARRYBACK
OF
CERTAIN
CREDITS
BEFORE EFFECTIVE DATE.—No portion of the un-
used business credit for any taxable year which is
attributable to the credits allowable under any sec-
tion added to this subpart by the amendments made
by the National Energy Security Tax Act of 2000
may be carried back to a taxable year ending before
the date of the enactment of such Act.’’
(d) CLERICAL AMENDMENT.—The table of sections
for subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following:
‘‘Sec. 45F. Credit for production from qualifying advanced clean
coal technology.’’
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to production after the date of the
enactment of this Act.
SEC. 1043. DEBT REPAYMENT FOR THE INVESTMENT IN AD-
VANCED CLEAN COAL TECHNOLOGY.
(a) ALLOWANCE OF DEBT REPAYMENT IN LIEU OF
QUALIFYING
ADVANCED
CLEAN
COAL
TECHNOLOGY
CREDITS.—The owner of a qualified advanced clean coal
technology facility under sections 1041 and 1042 may
elect to have the amount of the qualifying clean coal tech-
153
nology credits applied to the prepayment of any debt or
obligations the owner has incurred under subchapter I,
chapter 31, title 7 of the Rural Electrification Act of 1936
(7 U.S.C. 901 et seq.) and has been selected by the owner
for such prepayment in lieu of a credit against the owner’s
tax obligations under the Internal Revenue Code of 1986.
Æ