---
kind: "section"
citation: "42 U.S.C. § 15962"
title: "42"
title_heading: "The Public Health and Welfare"
number: "15962"
heading: "Project criteria"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/15962"
units:
  - "Chapter 149 — National Energy Policy and Programs"
  - "Subchapter IV — Coal"
  - "Part A — Clean Coal Power Initiative"
---

# §15962. Project criteria

- (a) **In general—** To be eligible to receive assistance under this part, a [project](/usc/42/16371.md?p=12) shall advance efficiency, environmental performance, and cost competitiveness well beyond the level of technologies that are in commercial service or have been demonstrated on a scale that the [Secretary](/usc/42/15801.md?p=4) determines is sufficient to demonstrate that commercial service is viable as of August 8, 2005.
- (b) **Technical criteria for clean coal power initiative—**
  - (1) **Gasification projects—**
    - (A) **In general—** In allocating the funds made available under [section 15961(a) of this title](/usc/42/15961.md?p=a), the [Secretary](/usc/42/15801.md?p=4) shall ensure that at least 70 percent of the funds are used only to fund [projects](/usc/42/16371.md?p=12) on coal-based gasification technologies, including—
      - (i) gasification combined cycle;
      - (ii) gasification [fuel cells](/usc/42/16121.md?p=1) and turbine combined cycle;
      - (iii) gasification coproduction;
      - (iv) hybrid gasification and combustion; and
      - (v) other advanced coal based technologies capable of producing a concentrated stream of carbon dioxide.
    - (B) **Technical milestones—**
      - (i) **Periodic determination—**
        - (I) **In general—** The [Secretary](/usc/42/15801.md?p=4) shall periodically set technical milestones specifying the emission and thermal efficiency levels that coal gasification [projects](/usc/42/16371.md?p=12) under this part shall be designed, and reasonably expected, to achieve.
        - (II) **Prescriptive milestones—** The technical milestones shall become more prescriptive during the period of the clean coal power initiative.
      - (ii) **2020 goals—** The [Secretary](/usc/42/15801.md?p=4) shall establish the periodic milestones so as to achieve by the year 2020 coal gasification [projects](/usc/42/16371.md?p=12) able—
        - (I)
          - (aa) to remove at least 99 percent of sulfur dioxide; or
          - (bb) to emit not more than 0.04 pound SO<sub>2</sub> per million Btu, based on a 30-day average;
        - (II) to emit not more than .05 lbs of NO<sub>x</sub> per million Btu;
        - (III) to achieve at least 95 percent reductions in mercury emissions; and
        - (IV) to achieve a thermal efficiency of at least—
          - (aa) 50 percent for coal of more than 9,000 Btu;
          - (bb) 48 percent for coal of 7,000 to 9,000 Btu; and
          - (cc) 46 percent for coal of less than 7,000 Btu.
  - (2) **Other projects—**
    - (A) **Allocation of funds—** The [Secretary](/usc/42/15801.md?p=4) shall ensure that up to 30 percent of the funds made available under [section 15961(a) of this title](/usc/42/15961.md?p=a) are used to fund [projects](/usc/42/16371.md?p=12) other than those described in [paragraph (1)](#b-1).
    - (B) **Technical milestones—**
      - (i) **Periodic determination—**
        - (I) **In general—** The [Secretary](/usc/42/15801.md?p=4) shall periodically establish technical milestones specifying the emission and thermal efficiency levels that [projects](/usc/42/16371.md?p=12) funded under this paragraph shall be designed, and reasonably expected, to achieve.
        - (II) **Prescriptive milestones—** The technical milestones shall become more prescriptive during the period of the clean coal power initiative.
      - (ii) **2020 goals—** The [Secretary](/usc/42/15801.md?p=4) shall set the periodic milestones so as to achieve by the year 2020 [projects](/usc/42/16371.md?p=12) able—
        - (I) to remove at least 97 percent of sulfur dioxide;
        - (II) to emit no more than .08 lbs of NO<sub>x</sub> per million Btu;
        - (III) to achieve at least 90 percent reductions in mercury emissions; and
        - (IV) to achieve a thermal efficiency of at least—
          - (aa) 43 percent for coal of more than 9,000 Btu;
          - (bb) 41 percent for coal of 7,000 to 9,000 Btu; and
          - (cc) 39 percent for coal of less than 7,000 Btu.
  - (3) **Consultation—** Before setting the technical milestones under paragraphs [(1)(B)](#b-1-B) and [(2)(B)](#b-2-B), the [Secretary](/usc/42/15801.md?p=4) shall consult with—
    - (A) the [Administrator](/usc/42/15951.md?p=b-1) of the Environmental Protection [Agency](/usc/42/8262.md?p=1); and
    - (B) interested entities, including—
      - (i) coal producers;
      - (ii) industries using coal;
      - (iii) organizations that promote coal or advanced coal technologies;
      - (iv) environmental organizations;
      - (v) organizations representing workers; and
      - (vi) organizations representing consumers.
  - (4) **Existing units—** In the case of [projects](/usc/42/16371.md?p=12) at units in existence on August 8, 2005, in lieu of the thermal efficiency requirements described in paragraphs [(1)(B)(ii)(IV)](#b-1-B-ii-IV) and [(2)(B)(ii)(IV)](#b-2-B-ii-IV), the milestones shall be designed to achieve an overall thermal design efficiency improvement, compared 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) **Administration—**
    - (A) **Elevation of site—** In evaluating [project](/usc/42/16371.md?p=12) proposals to achieve thermal efficiency levels established under paragraphs [(1)(B)(i)](#b-1-B-i) and [(2)(B)(i)](#b-2-B-i) and in determining progress towards thermal efficiency milestones under paragraphs [(1)(B)(ii)(IV)](#b-1-B-ii-IV), [(2)(B)(ii)(IV)](#b-2-B-ii-IV), and [(4)](#b-4), the [Secretary](/usc/42/15801.md?p=4) shall take into account and make adjustments for the elevation of the site at which a [project](/usc/42/16371.md?p=12) is proposed to be constructed.
    - (B) **Applicability of milestones—** In applying the thermal efficiency milestones under paragraphs [(1)(B)(ii)(IV)](#b-1-B-ii-IV), [(2)(B)(ii)(IV)](#b-2-B-ii-IV), and [(4)](#b-4) to [projects](/usc/42/16371.md?p=12) that separate and capture at least 50 percent of the potential emissions of carbon dioxide by a facility, the energy used for separation and capture of carbon dioxide shall not be counted in calculating the thermal efficiency.
    - (C) **Permitted uses—** In carrying out this section, the [Secretary](/usc/42/15801.md?p=4) may give priority to [projects](/usc/42/16371.md?p=12) that include, as part of the [project](/usc/42/16371.md?p=12)—
      - (i) the separation or capture of carbon dioxide; or
      - (ii) the reduction of the demand for natural gas if deployed.
- (c) **Financial criteria—** The [Secretary](/usc/42/15801.md?p=4) shall not provide financial assistance under this part for a [project](/usc/42/16371.md?p=12) unless the recipient documents to the satisfaction of the [Secretary](/usc/42/15801.md?p=4) that—
  - (1) the recipient is financially responsible;
  - (2) the recipient will provide sufficient information to the [Secretary](/usc/42/15801.md?p=4) to enable the [Secretary](/usc/42/15801.md?p=4) to ensure that the funds are spent efficiently and effectively; and
  - (3) a market exists for the technology being demonstrated or applied, as evidenced by statements of interest in writing from potential purchasers of the technology.
- (d) **Financial assistance—** The [Secretary](/usc/42/15801.md?p=4) shall provide financial assistance to [projects](/usc/42/16371.md?p=12) that, as determined by the [Secretary](/usc/42/15801.md?p=4)—
  - (1) meet the requirements of subsections [(a)](#a), [(b)](#b), and [(c)](#c); and
  - (2) are likely—
    - (A) to achieve overall cost reductions in the use of coal to [generate](/usc/42/2021b.md?p=8) useful forms of energy or chemical feedstocks;
    - (B) to improve the competitiveness of coal among various forms of energy in order to maintain a diversity of fuel choices in the United States to meet electricity generation requirements; and
    - (C) to demonstrate methods and equipment that are applicable to 25 percent of the electricity generating facilities, using various types of coal, that use coal as the primary feedstock as of August 8, 2005.
- (e) **Cost-sharing—** In carrying out this part, the [Secretary](/usc/42/15801.md?p=4) shall require cost sharing in accordance with [section 16352 of this title](/usc/42/16352.md).
- (f) **Scheduled completion of selected projects—**
  - (1) **In general—** In selecting a [project](/usc/42/16371.md?p=12) for financial assistance under this section, the [Secretary](/usc/42/15801.md?p=4) shall establish a reasonable period of time during which the [owner](/usc/42/13641.md?p=4) or operator of the [project](/usc/42/16371.md?p=12) shall complete the [construction](/usc/42/300s–3.md?p=7) or demonstration phase of the [project](/usc/42/16371.md?p=12), as the [Secretary](/usc/42/15801.md?p=4) determines to be appropriate.
  - (2) **Condition of financial assistance—** The [Secretary](/usc/42/15801.md?p=4) shall require as a condition of receipt of any financial assistance under this part that the recipient of the assistance enter into an agreement with the [Secretary](/usc/42/15801.md?p=4) not to request an extension of the time period established for the [project](/usc/42/16371.md?p=12) by the [Secretary](/usc/42/15801.md?p=4) under [paragraph (1)](#f-1).
  - (3) **Extension of time period—**
    - (A) **In general—** Subject to [subparagraph (B)](#f-3-B), the [Secretary](/usc/42/15801.md?p=4) may extend the time period established under [paragraph (1)](#f-1) if the [Secretary](/usc/42/15801.md?p=4) determines, in the sole discretion of the [Secretary](/usc/42/15801.md?p=4), that the [owner](/usc/42/13641.md?p=4) or operator of the [project](/usc/42/16371.md?p=12) cannot complete the [construction](/usc/42/300s–3.md?p=7) or demonstration phase of the [project](/usc/42/16371.md?p=12) within the time period due to circumstances beyond the control of the [owner](/usc/42/13641.md?p=4) or operator.
    - (B) **Limitation—** The [Secretary](/usc/42/15801.md?p=4) shall not extend a time period under [subparagraph (A)](#f-3-A) by more than 4 years.
- (g) **Fee title—** The [Secretary](/usc/42/15801.md?p=4) may vest fee title or other property interests acquired under cost-share clean coal power initiative agreements under this part in any entity, including the United States.
- (h) **Data protection—** For a period not exceeding 5 years after completion of the operations phase of a cooperative agreement, the [Secretary](/usc/42/15801.md?p=4) may provide appropriate protections (including exemptions from subchapter II of [chapter 5](/usc/5/chptI/ch5.md) of title 5) against the dissemination of information that—
  - (1) results from demonstration activities carried out under the clean coal power initiative program; and
  - (2) would be a trade secret or commercial or financial information that is privileged or confidential if the information had been obtained from and first produced by a non-Federal party participating in a clean coal power initiative [project](/usc/42/16371.md?p=12).
- (i) **Applicability—** No technology, or level of emission reduction, solely by reason of the use of the technology, or the achievement of the emission reduction, by 1 or more facilities receiving assistance under this Act, shall be considered to be—
  - (1) adequately demonstrated for purposes of [section 7411 of this title](/usc/42/7411.md);
  - (2) achievable for purposes of [section 7479 of this title](/usc/42/7479.md); or
  - (3) achievable in practice for purposes of [section 7501 of this title](/usc/42/7501.md).

## Source credit

(Pub. L. 109–58, title IV, § 402, Aug. 8, 2005, 119 Stat. 750; Pub. L. 110–140, title VI, § 653, Dec. 19, 2007, 121 Stat. 1695.)

## Notes

### Editorial Notes

### References in Text

This Act, referred to in subsec. (i), is Pub. L. 109–58, Aug. 8, 2005, 119 Stat. 594, known as the Energy Policy Act of 2005, which enacted this chapter and enacted, amended, and repealed numerous other sections and notes in the Code. For complete classification of this Act to the Code, see Short Title note set out under section 15801 of this title and Tables.

### Amendments

2007—Subsec. (b)(1)(B)(ii)(I). Pub. L. 110–140 added subcl. (I) and struck out former subcl. (I) which read as follows: “to remove at least 99 percent of sulfur dioxide;”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2007 Amendment

Amendment by Pub. L. 110–140 effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of Pub. L. 110–140, set out as an Effective Date note under section 1824 of Title 2, The Congress.