Both the House and Senate included increase for clean coal technologies in their stimulus bills. The House provided $2.4 billion for carbon capture and storage technologies and the Senate provided $4.6 billion for fossil fuel energy research and development. Of the $4.6 billion, the Senate earmarked $2 billion for one or more near zero-emissions power plants which use carbon capture and storage. This sounds similar to the FutureGen project DOE recently abandoned because of massive increases in cost. The Senate also earmarks $1 billion for the Clean Coal Power Initiative with the remainder allotted for carbon capture and sequestration projects.

Unfortunately subsidies for clean fossil energy technology is not a new idea, since the late 1970’s, the federal government has funneled billions of dollars into “Clean Coal” technology and programs designed to make the mining and burning of coal less polluting. Despite these multi-billion dollar investments the government’s poorly run and over-funded attempts to establish clean coal technology have proven to do little to help federal taxpayers. The coal industry has been heavily subsidized for decades and should bear the cost of developing clean coal technology. These stimulus proposals will be just be spending money with very little valuable return. Other options would be far more stimulative.

The House provision passed on Wednesday, January 28th and the Senate provision is expected to be voted on late the week of February 2nd.

Senate Bill Report Language
FOSSIL ENERGY RESEARCH A ND DEVELOPMENT
The Committee provides an additional $4,600,000,000, to remain available for projects awarded by September 30, 2010. Of the amounts appropriated, $2,000,000,000 is available for one or more near-zero emissions powerplant(s) designed to capture and sequester a high percentage of carbon dioxide

Of the amounts appropriated, $1,000,000,000 is available, in addition to amounts appropriated in the fiscal year 2009 spending bill and such other amounts available from prior appropriations, for selections under the Department's Clean Coal Power Initiative Round I11 Funding Opportunity Announcement. The Department is encouraged to establish a second closing date on or after April 1, 2009 for the receipt of new or modified applications. Notwithstanding the mandatory eligibility requirements of the Funding Opportunity Announcement, the Committee finds that projects using petroleum coke as a fuel may directly lead to improvements in technology applicable to coal-based systems and is consistent with program objectives. Therefore, language is included in the bill directing the Department to consider applications that utilize petroleum coke for some or all of the project's fuel input.

Of the amounts appropriated, $1,520,000,000 is available for a competitive solicitation pursuant to section 703 of Public Law 110-140 for projects that demonstrate carbon capture from industrial sources. Such projects may include plant efficiency improvements for integration with carbon capture technology. Preferences will be given to projects that capture and sequester at least 75 percent of the carbon dioxide that would otherwise be emitted to the atmosphere or put such carbon dioxide to beneficial reuse that provides an equivalent net reduction of carbon emissions to the atmosphere. Of the amounts appropriated, $50,000,000 is available for a competitive solicitation pursuant to section 702(c)(3)(B) of Public Law 110-140 to conduct site characterization for a minimum of 10 candidate geologic sequestration formations. The Secretary may provide awards to project recipients previously provided funding for large-scale testing by the Department of Energy. Preference should be given to qualifying projects which include a private-public partnership with State Geological Surveys, and have storage sites near high point sources of carbon dioxide emissions. $20,000,000 is available to carry out the geologic sequestration training and research grant program authorized in section 705(b) of Public Law 110-140, and $10,000,000 is available for program direction funding. The Committee recognizes the broad sequestration experience resident in the Office of Fossil Energy.

House Bill Language:
FOSSIL ENERGY
For an additional amount for ‘‘Fossil Energy’’, $2,400,000,000 for necessary expenses to demonstrate carbon capture and sequestration technologies as authorized under section 702 of the Energy Independence and Security Act of 2007.

Our Clean Coal Fact Sheet:
Clean Coal Projects: Cleaning Out the Pockets of Taxpayers