26 U.S.C. § 48A: Qualifying advanced coal project credit

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). 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. Rules similar to section 48(a)(4) (without regard to subparagraph (D) thereof) shall apply for purposes of this section. 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. The term “qualifying advanced coal project” means a project which meets the requirements of subsection (e). The term “advanced coal-based generation technology” means a technology which meets the requirements of subsection (f). 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. 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. 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. 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. Not later than 180 days after the date of enactment of this section, the Secretary, in consultation with the Secretary of Energy, shall establish a qualifying advanced coal project program for the deployment of advanced coal-based generation technologies. for an allocation from the dollar amount specified in clause (i) or (ii) of paragraph (3)(B) during the 3-year period beginning on the date the Secretary establishes the program under paragraph (1), and for an allocation from the dollar amount specified in paragraph (3)(B)(iii) during the 3-year period beginning at the earlier of the termination of the period described in clause (i) or the date prescribed by the Secretary. An application under subparagraph (A) shall contain such information as the Secretary may require in order to make a determination to accept or reject an application for certification as meeting the requirements under subsection (e)(1). Any information contained in the application shall be protected as provided in section 552(b)(4) of title 5 , United States Code. The Secretary shall issue a determination as to whether an applicant has met the requirements under subsection (e)(1) within 60 days following the date of submittal of the application for certification. Each applicant for certification shall have 2 years from the date of acceptance by the Secretary of the application during which to provide to the Secretary evidence that the criteria set forth in subsection (e)(2) have been met. An applicant which receives a certification shall have 5 years from the date of issuance of the certification in order to place the project in service and if such project is not placed in service by that time period then the certification shall no longer be valid. The aggregate credits allowed under subsection (a) for projects certified by the Secretary under paragraph (2) may not exceed $2,550,000,000. $800,000,000 for integrated gasification combined cycle projects the application for which is submitted during the period described in paragraph (2)(A)(i), $500,000,000 for projects which use other advanced coal-based generation technologies the application for which is submitted during the period described in paragraph (2)(A)(i), and $1,250,000,000 for advanced coal-based generation technology projects the application for which is submitted during the period described in paragraph (2)(A)(ii). Not later than 6 years after the date of enactment of this section, the Secretary shall review the credits allocated under this section as of the date which is 6 years after the date of enactment of this section. there is an insufficient quantity of qualifying applications for certification pending at the time of the review, or any certification made pursuant to paragraph (2) has been revoked pursuant to paragraph (2)(D) because the project subject to the certification has been delayed as a result of third party opposition or litigation to the proposed project. If the Secretary determines that credits under clause (i) or (ii) of paragraph (3)(B) are available for reallocation pursuant to the requirements set forth in paragraph (2), the Secretary is authorized to conduct an additional program for applications for certification. The Secretary shall, upon making a certification under this subsection or section 48B(d), publicly disclose the identity of the applicant and the amount of the credit certified with respect to such applicant. 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. 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). projects using bituminous coal as a primary feedstock, projects using subbituminous coal as a primary feedstock, and projects using lignite as a primary feedstock, 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 other benefits, and give highest priority to projects with the greatest separation and sequestration percentage of total carbon dioxide emissions. 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: Performance characteristic: Design level for project: SO 2 (percent removal) 99 percent NO x (emissions) 0.07 lbs/MMBTU PM* (emissions) 0.015 lbs/MMBTU Hg (percent removal) 90 percent 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), 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 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. 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. 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 ); or achievable in practice for purposes of section 171 of such Act ( 42 U.S.C. 7501 ). 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, The Secretary shall provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any project which fails to attain or maintain the separation and sequestration requirements of subsection (e)(1)(G). Except as otherwise provided in this subsection, the amendments made by this section [amending this section] shall apply to credits the application for which is submitted during the period described in section 48A(d)(2)(A)(ii) of the Internal Revenue Code of 1986 and which are allocated or reallocated after the date of the enactment of this Act [ Oct. 3, 2008 ]. The amendment made by subsection (d) [amending this section] shall apply to certifications made after the date of the enactment of this Act. The amendment made by subsection (c)(5) [amending this section] shall take effect as if included in the amendment made by section 1307(b) of the Energy Tax Incentives Act of 2005 [ Pub. L. 109–58 ].”