For purposes of section 46, the qualifying advanced coal project credit for any taxable year is an amount equal to—
20 percent of the qualified investment for such taxable year in the case of projects described in subsection (d)(3)(B)(i),
15 percent of the qualified investment for such taxable year in the case of projects described in subsection (d)(3)(B)(ii), and
30 percent of the qualified investment for such taxable year in the case of projects described in clause (iii) of subsection (d)(3)(B).
For purposes of subsection (a), the qualified 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 advanced coal project—
the construction, reconstruction, or erection of which is completed by the taxpayer, or
which is acquired by the taxpayer if the original use of such property commences with the taxpayer, and
with respect to which depreciation (or amortization in lieu of depreciation) is allowable.
Special rule for certain subsidized property
Rules similar to section 48(a)(4) (without regard to subparagraph (D) thereof) shall apply for purposes of this section.
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.
For purposes of this section—
Qualifying advanced coal project
The term “qualifying advanced coal project” means a project which meets the requirements of subsection (e).
Advanced coal-based generation technology
The term “advanced coal-based generation technology” means a technology which meets the requirements of subsection (f).
The term “eligible property” means—
in the case of any qualifying advanced coal project using an integrated gasification combined cycle, any property which is a part of such project and is necessary for the gasification of coal, including any coal handling and gas separation equipment, and
in the case of any other qualifying advanced coal project, any property which is a part of such project.
The term “coal” means anthracite, bituminous coal, subbituminous coal, lignite, and peat.
Greenhouse gas capture capability
The term “greenhouse gas capture capability” means an integrated gasification combined cycle technology facility capable of adding components which can capture, separate on a long-term basis, isolate, remove, and sequester greenhouse gases which result from the generation of electricity.
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 facility which is used in an industrial application.
Integrated gasification combined cycle
The term “integrated gasification combined cycle” means an electric generation unit which produces 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.
Qualifying advanced coal projects
For purposes of subsection (c)(1), a project shall be considered a qualifying advanced coal project that the Secretary may certify under subsection (d)(2) if the Secretary determines that, at a minimum—
the project uses an advanced coal-based generation technology—
to power a new electric generation unit; or
to retrofit or repower an existing electric generation unit (including an existing natural gas-fired combined cycle unit);
the fuel input for the project, when completed, is at least 75 percent coal;
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;
the applicant provides evidence that a majority of the output of the project is reasonably expected to be acquired or utilized;
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;
the project will be located in the United States; and
in the case of any project the application for which is submitted during the period described in subsection (d)(2)(A)(ii), the project includes equipment which separates and sequesters at least 65 percent (70 percent in the case of an application for reallocated credits under subsection (d)(4)) of such project’s total carbon dioxide emissions.
Requirements for certification
For the purpose of subsection (d)(2)(D), a project shall be eligible for certification only if the Secretary determines that—
the applicant for certification has received all Federal and State environmental authorizations or reviews necessary to commence construction of the project; and
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).
Priority for certain projects
In determining which qualifying advanced coal projects to certify under subsection (d)(2), the Secretary shall—
certify capacity, in accordance with the procedures set forth in subsection (d), in relatively equal amounts to—
projects using bituminous coal as a primary feedstock,
projects using subbituminous coal as a primary feedstock, and
projects using lignite as a primary feedstock,
give high priority to projects which include, as determined by the Secretary—
greenhouse gas capture capability,
increased by-product utilization,
applicant participants who have a research partnership with an eligible educational institution (as defined in section 529(e)(5)), and
give highest priority to projects with the greatest separation and sequestration percentage of total carbon dioxide emissions.
Advanced coal-based generation technology
For the purpose of this section, an electric generation unit uses advanced coal-based generation technology if—
uses integrated gasification combined cycle technology, or
except as provided in paragraph (3), has a design net heat rate of 8530 Btu/kWh (40 percent efficiency), and
the unit is designed to meet the performance requirements in the following table:
Design level for project:
SO2 (percent removal)
Hg (percent removal)
For purposes of the performance requirement specified for the removal of SO2 in the table contained in subparagraph (B), the SO2 removal design level in the case of a unit designed for the use of feedstock substantially all of which is subbituminous coal shall be 99 percent SO2 removal or the achievement of an emission level of 0.04 pounds or less of SO2 per million Btu, determined on a 30-day average.
Design net heat rate
For purposes of this subsection, design net heat rate with respect to an electric generation unit shall—
be measured in Btu per kilowatt hour (higher heating value),
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),
be adjusted for the heat content of the design coal to be used by the unit—
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
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
be corrected for the site reference conditions of—
elevation above sea level of 500 feet,
air pressure of 14.4 pounds per square inch absolute,
temperature, dry bulb of 63°F,
temperature, wet bulb of 54°F, and
relative humidity of 55 percent.
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 efficiency of the unit as operated, of not less than—
7 percentage points for coal of more than 9,000 Btu,
6 percentage points for coal of 7,000 to 9,000 Btu, or
4 percentage points for coal of less than 7,000 Btu.
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 be considered to indicate that the technology or performance level is—
adequately demonstrated for purposes of section 111 of the Clean Air Act (42 U.S.C. 7411
achievable for purposes of section 169 of that Act (42 U.S.C. 7479
achievable in practice for purposes of section 171 of such Act (42 U.S.C. 7501
Competitive certification awards modification authority
In implementing this section or section 48B, the Secretary is directed to modify the terms of any competitive certification award and any associated closing agreement where such modification—
is consistent with the objectives of such section,
is requested by the recipient of the competitive certification award, and
involves moving the project site to improve the potential to capture and sequester carbon dioxide emissions, reduce costs of transporting feedstock, and serve a broader customer base,
unless the Secretary determines that the dollar amount of tax credits available to the taxpayer under such section would increase as a result of the modification or such modification would result in such project not being originally certified. In considering any such modification, the Secretary shall consult with other relevant Federal agencies, including the Department of Energy.
[Pub. L. 109–58, title XIII, § 1307(b)], Aug. 8, 2005, [119 Stat. 999]; amended [Pub. L. 109–432, div. A, title II, § 203(a)], Dec. 20, 2006, [120 Stat. 2945]; [Pub. L. 110–172, § 11(a)(10)], Dec. 29, 2007, [121 Stat. 2485]; [Pub. L. 110–234, title XV, § 15346(a)], May 22, 2008, [122 Stat. 1523]; [Pub. L. 110–246, § 4(a)], title XV, § 15346(a), June 18, 2008, [122 Stat. 1664], 2285; [Pub. L. 110–343, div. B, title I, § 111(a)]–(d), Oct. 3, 2008, [122 Stat. 3822], 3823; [Pub. L. 111–5, div. B, title I, § 1103(b)(2)(C)], Feb. 17, 2009, [123 Stat. 321].)