Sec. 301. Federal financial incentives
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Section 1703 of the Energy Policy Act of 2005 ( 42 U.S.C. 16513 ) is amended— in subsection (b)(5), by inserting and projects described in subsection
(f)before the period at the end; and by adding at the end the following: In this subsection: The term commercial scale means, with respect to an electric generation unit, a unit that is designed— to generate and sell electric power directly to consumers or for resale; and with a carbon dioxide capture system having a useful life of not fewer than 15 years. The term eligible unit has the meaning given the term in section 84E of the Internal Revenue Code of 1986. The term permanent geologic storage site means a site that— the Secretary determines is capable of storing carbon dioxide; and is located in saline formations or other deep geologic storage structures. Notwithstanding subsection (a)(2), the Secretary may make guarantees in amounts totaling not more than $20,000,000,000 for the following carbon capture and sequestration projects: The construction of new industrial facility units or commercial scale electric generation units that are eligible units utilizing carbon capture and sequestration technology. The retrofit of existing industrial facility units or commercial scale electric generation units that are eligible units providing for carbon capture and sequestration. The construction of carbon dioxide transmission pipelines to transport carbon dioxide from carbon capture and sequestration facilities to— sequestration sites; or sites where the carbon dioxide will be used for hydrocarbon recovery. A unit shall not be eligible to receive a guarantee under paragraph
(2)unless the Secretary has certified the unit pursuant to a certification process established by the Secretary by rule. . Section 1704 of the Energy Policy Act of 2005 ( 42 U.S.C. 16514 ) is amended by adding at the end the following: In addition to other amounts made available under this section, there is authorized to be appropriated such sums as are necessary to cover the credit loan subsidy costs associated with the guarantees described in section 1703(f). . Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48D the following new section: For purposes of section 46, the qualifying advanced coal project credit for any taxable year shall also include an additional amount equal to the applicable percentage (as determined under subsection (c)) of the incremental cost for carbon capture and sequestration systems for eligible units, determined as follows: For an eligible unit that is a new electric generation unit, the incremental costs shall be the amount by which the costs incurred by the taxpayer for the unit exceed the costs of construction of a comparable supercritical pulverized coal unit without carbon capture and sequestration technology. To establish incremental costs, the taxpayer shall obtain a certified report of a qualified independent engineer estimating the differential construction cost between the eligible unit and a comparably sized supercritical pulverized coal unit without carbon capture and sequestration. The independent engineer shall utilize cost estimates for supercritical pulverized coal units available from Federal agencies, academia and/or the private sector, appropriately adjusted for size, fuel source and location. An engineering design of a hypothetical supercritical pulverized coal unit shall not be required to establish the incremental costs. For an eligible unit that is a new industrial unit, the incremental costs shall be the amount by which the costs incurred by the taxpayer for the unit exceed the costs of construction of a comparable industrial unit without carbon capture and sequestration. For an eligible unit that retrofits a carbon capture, transportation, and sequestration system on an existing generation or industrial unit, the incremental cost shall be the construction costs incurred by the taxpayer for the carbon capture and sequestration system. The Secretary of Energy shall certify the amount of incremental cost for carbon capture and sequestration systems for eligible units in each case, based on appropriate information. For purposes of this section, the term eligible unit means an electric generation unit or industrial facility unit located in the United States that— uses coal or petroleum coke for at least 75 percent of the fuel used by the unit, uses carbon capture technology to capture and sequester not less than 65 percent of the total carbon dioxide emissions of the unit, transports such captured carbon dioxide to a permanent geologic storage site in the United States or to a site on the North American continent for use for hydrocarbon recovery, and provides for the permanent storage of such carbon dioxide in such site. For purposes of subsection (a), the applicable percentage shall be the amount (expressed as a percentage) equal to the sum of— 15 percent, and the amount (expressed as a percentage) which bears the same ratio to 15 percent as the captured emissions percentage (as determined under paragraph (2)) bears to 35 percent. For purposes of paragraph (1), the captured emissions percentage shall be equal to— the percentage of total carbon dioxide emissions of the eligible unit that is captured and sequestered, minus 65 percentage points. No costs for which a credit has been provided under section 48A or section 48B shall be eligible for a credit under this section. The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection
(a)with respect to any unit that fails to attain or maintain the requirements under subsection (b). . The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 48D the following new item: 48E. Pioneer CCS facilities. . The amendments made by this section shall apply with respect to— new facilities placed in service after December 31, 2014, and before January 1, 2026; and the retrofit of existing facilities that commence operation with the retrofit after December 31, 2014, and before January 1, 2026.
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