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SECTION II - PROGRAM GUIDELINES

The following program guidelines are provided to increase the proposer's understanding of the Clean Coal Technology Program and to assist in the

preparation of proposals.

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The projects in this program will be industry projects assisted by

the Government.

The Congress has stipulated that Government funding

shall not exceed 50% of project cost.

Further guidance on financial

participation is contained in SECTION VI of this PON.

2.

The PON is open to all market applications of clean coal technology

that apply to any segment of the United States coal resource base.

This includes applications for utilities, industry (including steel

and iron ore processing), commercial and residential markets, and

transportation.

3.

The PON is open to both "new" and "retrofit" applications, whether

intended to displace oil and natural gas or to utilize coal more cleanly, efficiently, and/or economically than presently available

technology.

4. Examples of "emerging clean coal technologies" include, but are not

limited to, the following technologies or combinations that include

one or more of these technologies:

(a) Advanced Coal Cleaning

(b) Coal Slurries

(c) Post-Combustion Cleanup

(d)

In-Boiler Control of Oxides of Sulfur and Nitrogen

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(m)

Advanced Industrial Processes (e.g., Steel and iron ore processing)

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