---
kind: "section"
citation: "42 U.S.C. § 16513"
title: "42"
title_heading: "The Public Health and Welfare"
number: "16513"
heading: "Eligible projects"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/16513"
units:
  - "Chapter 149 — National Energy Policy and Programs"
  - "Subchapter XV — Incentives for Innovative Technologies"
---

# §16513. Eligible projects

- (a) **In general—** The [Secretary](/usc/42/15801.md?p=4) may make [guarantees](/usc/42/16511.md?p=4-A) under this section only for [projects](/usc/42/16371.md?p=12) that—
  - (1) avoid, reduce, utilize, or sequester air pollutants or anthropogenic emissions of greenhouse gases; and
  - (2) employ new or significantly improved technologies as compared to [commercial technologies](/usc/42/16511.md?p=1-A) in service in the United States at the time the [guarantee](/usc/42/16511.md?p=4-A) is issued, including [projects](/usc/42/16371.md?p=12) that employ elements of [commercial technologies](/usc/42/16511.md?p=1-A) in combination with new or significantly improved technologies.
- (b) **Categories—** [Projects](/usc/42/16371.md?p=12) from the following categories shall be eligible for a [guarantee](/usc/42/16511.md?p=4-A) under this section:
  - (1) Renewable energy systems.
  - (2) Advanced fossil energy technology (including coal gasification meeting the criteria in [subsection (d)](#d)).
  - (3) Hydrogen [fuel cell](/usc/42/16121.md?p=1) technology for residential, industrial, or transportation applications.
  - (4) Advanced nuclear energy facilities, including manufacturing of nuclear supply components for advanced nuclear reactors.
  - (5) Carbon capture, utilization, and sequestration [practices](/usc/42/17061.md?p=19) and technologies, including—
    - (A) agricultural and forestry [practices](/usc/42/17061.md?p=19) that store and sequester carbon; and
    - (B) synthetic technologies to remove carbon from the air and oceans.
  - (6) Efficient electrical generation, transmission, and distribution technologies.
  - (7) Efficient end-use energy technologies.
  - (8) Production facilities for the manufacture of fuel efficient vehicles or parts of those vehicles, including electric drive vehicles and advanced diesel vehicles.
  - (9) Pollution control equipment.
  - (10) Refineries, meaning facilities at which crude oil is refined into gasoline.
  - (11) Energy storage technologies for residential, industrial, transportation, and power generation applications.
  - (12) Technologies or processes for reducing greenhouse gas emissions from industrial applications, including iron, steel, cement, and ammonia production, hydrogen production, and the generation of high-temperature heat.
  - (13) [Projects](/usc/42/16371.md?p=12) that increase the domestically produced supply of critical minerals (as defined in [section 1606(a) of title 30](/usc/30/1606.md?p=a)), including through the production, processing, manufacturing, recycling, or fabrication of mineral alternatives.
- (c) **Gasification projects—** The [Secretary](/usc/42/15801.md?p=4) may make [guarantees](/usc/42/16511.md?p=4-A) for the following gasification [projects](/usc/42/16371.md?p=12):
  - (1) **Integrated gasification combined cycle projects—** Integrated gasification combined cycle plants meeting the emission levels under [subsection (d)](#d), including—
    - (A) [projects](/usc/42/16371.md?p=12) for the generation of electricity—
      - (i) for which, during the term of the [guarantee](/usc/42/16511.md?p=4-A)—
        - (I) coal, biomass, petroleum coke, or a combination of coal, biomass, and petroleum coke will account for at least 65 percent of annual heat input; and
        - (II) electricity will account for at least 65 percent of net useful annual energy output;
      - (ii) that have a design that is determined by the [Secretary](/usc/42/15801.md?p=4) to be capable of accommodating the equipment likely to be necessary to capture the carbon dioxide that would otherwise be emitted in flue gas from the plant;
      - (iii) that have an assured revenue stream that covers [project](/usc/42/16371.md?p=12) capital and operating costs (including servicing all debt [obligations](/usc/42/16511.md?p=5) covered by the [guarantee](/usc/42/16511.md?p=4-A)) that is approved by the [Secretary](/usc/42/15801.md?p=4) and the relevant [State](/usc/42/16511.md?p=6) [public utility](/usc/42/16451.md?p=13) [commission](/usc/42/16451.md?p=3); and
      - (iv) on which [construction](/usc/42/300s–3.md?p=7) commences not later than the date that is 3 years after the date of the issuance of the [guarantee](/usc/42/16511.md?p=4-A);
    - (B) a [project](/usc/42/16371.md?p=12) to produce energy from coal (of not more than 13,000 Btu/lb and mined in the western United States) using appropriate advanced integrated gasification combined cycle technology that minimizes and offers the potential to sequester carbon dioxide emissions and that—
      - (i) may include repowering of existing facilities;
      - (ii) may be built in stages;
      - (iii) shall have a combined output of at least 100 megawatts;
      - (iv) shall be located in a western [State](/usc/42/16511.md?p=6) at an altitude greater than 4,000 feet; and
      - (v) shall demonstrate the ability to use coal with an energy content of not more than 9,000 Btu/lb;
    - (C) a [project](/usc/42/16371.md?p=12) located in a taconite-producing region of the United States that is entitled under the law of the [State](/usc/42/16511.md?p=6) in which the plant is located to enter into a long-term contract approved by a [State](/usc/42/16511.md?p=6) [public utility](/usc/42/16451.md?p=13) [commission](/usc/42/16451.md?p=3) to sell at least 450 megawatts of output to a utility;
    - (D) facilities that—
      - (i) [generate](/usc/42/2021b.md?p=8) one or more hydrogen-rich and carbon monoxide-rich product streams from the gasification of coal or coal waste; and
      - (ii) use those streams to facilitate the production of ultra clean premium fuels through the Fischer-Tropsch process; and
    - (E) a [project](/usc/42/16371.md?p=12) to produce energy and clean fuels, using appropriate coal liquefaction technology, from Western bituminous or subbituminous coal, that—
      - (i) is owned by a [State](/usc/42/16511.md?p=6) government; and
      - (ii) may include tribal and private coal resources.
  - (2) **Industrial gasification projects—** Facilities that gasify coal, biomass, or petroleum coke in any combination to produce synthesis gas for use as a fuel or feedstock and for which electricity accounts for less than 65 percent of the useful energy output of the facility.
  - (3) **Petroleum coke gasification projects—** The [Secretary](/usc/42/15801.md?p=4) is encouraged to make [loan guarantees](/usc/42/16511.md?p=4-A) under this subchapter available for petroleum coke gasification [projects](/usc/42/16371.md?p=12).
  - (4) **Liquefaction project—** Notwithstanding any other provision of law, funds awarded under the [Department](/usc/42/15801.md?p=1) of Energy’s Clean Coal Power Initiative for Fischer-Tropsch coal-to-oil liquefaction [projects](/usc/42/16371.md?p=12) may be used to finance the cost of [loan guarantees](/usc/42/16511.md?p=4-A) for [projects](/usc/42/16371.md?p=12) awarded such funds.
- (d) **Emission levels—** In addition to any other applicable Federal or [State](/usc/42/16511.md?p=6) emission limitation requirements, a [project](/usc/42/16371.md?p=12) shall attain at least—
  - (1) total sulfur dioxide emissions in flue gas from the [project](/usc/42/16371.md?p=12) that do not exceed 0.05 lb/MMBtu;
  - (2) a 90-percent removal rate (including any fuel pretreatment) of mercury from the coal-derived gas, and any other fuel, combusted by the [project](/usc/42/16371.md?p=12);
  - (3) total nitrogen oxide emissions in the flue gas from the [project](/usc/42/16371.md?p=12) that do not exceed 0.08 lb/MMBtu; and
  - (4) total particulate emissions in the flue gas from the [project](/usc/42/16371.md?p=12) that do not exceed 0.01 lb/MMBtu.
- (e) **Qualification of facilities receiving tax credits—** A [project](/usc/42/16371.md?p=12) that receives tax credits for clean coal technology shall not be disqualified from receiving a [guarantee](/usc/42/16511.md?p=4-A) under this subchapter.
- (f) **Regional variation—** Notwithstanding [subsection (a)(2)](#a-2), the [Secretary](/usc/42/15801.md?p=4) may, if regional variation significantly affects the deployment of a technology, make [guarantees](/usc/42/16511.md?p=4-A) under this subchapter for up to 6 [projects](/usc/42/16371.md?p=12) that employ the same or similar technology as another [project](/usc/42/16371.md?p=12), provided no more than 2 [projects](/usc/42/16371.md?p=12) that use the same or a similar technology are located in the same region of the United States.

## Source credit

(Pub. L. 109–58, title XVII, § 1703, Aug. 8, 2005, 119 Stat. 1120; Pub. L. 109–168, § 1(b)(1), Jan. 10, 2006, 119 Stat. 3580; Pub. L. 110–140, title I, § 134(b), Dec. 19, 2007, 121 Stat. 1513; Pub. L. 116–260, div. Z, title IX, § 9010(b), Dec. 27, 2020, 134 Stat. 2605; Pub. L. 117–58, div. D, title IV, § 40401(a)(2)(A), Nov. 15, 2021, 135 Stat. 1034.)

## Notes

### Editorial Notes

### Amendments

2021—Subsec. (b)(13). Pub. L. 117–58 added par. (13).

2020—Subsec. (a)(1). Pub. L. 116–260, § 9010(b)(1)(A), inserted “, utilize” after “reduce”.

Subsec. (a)(2). Pub. L. 116–260, § 9010(b)(1)(B), inserted “, including projects that employ elements of commercial technologies in combination with new or significantly improved technologies” before period at end.

Subsec. (b)(4). Pub. L. 116–260, § 9010(b)(2)(A), inserted “, including manufacturing of nuclear supply components for advanced nuclear reactors” after “facilities”.

Subsec. (b)(5). Pub. L. 116–260, § 9010(b)(2)(B), amended par. (5) generally. Prior to amendment, par. (5) read as follows: “Carbon capture and sequestration practices and technologies, including agricultural and forestry practices that store and sequester carbon.”

Subsec. (b)(11), (12). Pub. L. 116–260, § 9010(b)(2)(C), added pars. (11) and (12).

Subsec. (f). Pub. L. 116–260, § 9010(b)(3), added subsec. (f).

2007—Subsec. (b)(8). Pub. L. 110–140 added par. (8) and struck out former par. (8) which read as follows: “Production facilities for fuel efficient vehicles, including hybrid and advanced diesel vehicles.”

2006—Subsec. (c)(4). Pub. L. 109–168 substituted “Department of Energy’s Clean Coal Power Initiative for Fischer-Tropsch” for “clean coal power initiative under part A of subchapter IV for”.

### 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.

### Wage Rate Requirements

For provisions relating to rates of wages to be paid to laborers and mechanics on projects for construction, alteration, or repair work funded under div. D or an amendment by div. D of Pub. L. 117–58, including authority of Secretary of Labor, see section 18851 of this title.