Page images
PDF
EPUB

APPENDIX A

CONGRESSIONAL GUIDANCE

[blocks in formation]
[ocr errors]
[merged small][merged small][merged small][ocr errors][merged small][merged small][merged small]

Provided further,

That of the funds in the Energy Security Reserve prior to the date of enactment of this Act $400,000,000 shall be available for the Clean Coal Technology Program in the Department of Energy authorized under the Clean Coal Technology Reserve proviso of Public Law 98-473 for the purpose of conducting cost-shared Clean Coal Technology projects for the construction and operation of facilities to demonstrate the feasibility for future commercial applications of such technology, to remain available until expended, of which $100,000,000 shall be immediately available; (2) an additional $150,000,000 shall be available beginning October 1, 1986; and (3) an additional $150,000,000 shall be available beginning october 1, 1987: Provided further, That the proviso in Public Law 98-473 depositing and retaining in the Clean Coal Technology Reserve $750,000,000 of funds in the Energy Security Reserve rescinded by said Act is amended so as to reduce the current amount of such deposited and retained funds to $350,000,000:

Within 60 days following enactment of this Act, the Secretary of Energy shall, pursuant to the Federal Nonnuclear Energy Research and Development Act of 1974 142 U.S.C. 5901, et seq.), issue a general request for proposals for clean coal technology projects for which the Secretary of Energy upon review may provide financial assistance awards. Proposals for clean coal technology projects under this section shall be submitted to the Department of Energy within 60 days after issuance of the general request for proposals. The Secretary of Energy shall make any project selections no later than August 1, 1986: Provided, That the Secretary may vest fee title or other property interests acquired under cost-shared clean coal technology agreements in any entity, including the United States: Provided further, That the Secretary shall not finance more than 50 per centum of the total costs of a project as estimated by the Secretary as of the date of award of financial assistance: Provided further, That cost-sharing by project sponsors is required in each of the design, construction, and operating phases proposed to be included in a project: Provided further, That financial assistance for costs in excess of those estimated as of the date of award of original financial assistance may not be provided in excess of the proportion of costs borne by the Government in the original agreement and only up to 25 per centum of the original financial assistance: Provided further, That revenues or royalties from prospective operation of projects beyond the time considered in the award of financial assistance, or proceeds from prospective sale of the assets of the project, or revenues or royalties from replication of technology in future projects or plants are not cost-sharing for the purposes of this appropriation: Provided further, That other appropriated Federal funds are not cost-sharing for the purposes of this ap propriation: Provided further, That existing facilities, equipment, and supplies, or previously expended research or development funds are not cost-sharing for the purposes of this appropriation, except as amortized, depreciated, or expensed in normal business practice.

[merged small][merged small][ocr errors][merged small][merged small]

None of the funds made available to the Department of Energy under this Act shall be used to implement or finance authorized price support or loan guarantee programs unless specific provision is made for such programs in an appropriations Act.

The Secretary is authorized to accept lands, buildings, equipment, and other contributions from public and private sources and to prosecute projects in cooperation with other agencies, Federal, State, private, or foreign: Provided, That revenues and other moneys received by or for the account of the Department of Energy or otherwise generated by sale of products in connection with projects of the Department appropri. ated under this Act may be retained by the Secretary of Energy, to be available until expended, and used only for plant construction, operation, costs, and payments to costsharing entities as provided in appropriate cost-sharing contracts or agreements: Provided further, That the remainder of revenues after the making of such payments shall be covered into the Treasury as miscel· laneous receipts: Provided further, That any contract, agreement or provision thereof entered into by the Secretary pursuant to this authority shall not be executed prior to the expiration of 30 calendar days (not including any day in which either House of Congress is not in session because of adjournment of more than three calendar days to a day certain) from the receipt by the Speaker of the House of Representatives and the President of the Senate of a full and comprehensive report on such project, including the facts and circumstances relied upon in sup port of the proposed project

SEC. 325. Each amount of budget authority provided in this Act, or made available in the Energy Security Reserve for the Clean Coal Technology Program, for payments not required by law, is hereby reduced by 0.6 per centum: Provided, That such reductions shall be applied ratably to each account, program, activity, and project provided for in this Act;

[merged small][merged small][ocr errors][merged small][merged small]

The managers agree to rescind all funds appropriated to the Energy Security Reserve except $400,000,000 for a clean coal technology program to be administered by the Secretary of Energy in the Department of Energy, and $10,000,000 for expenses incidental to the closing of the Synthetic Fuels Corporation (SFC). Of the $400,000,000, $100,000,000 will be immediately available, $150,000,000 will be available beginning on October 1, 1986, and $150,000,000 will be available beginning on October 1, 1987. The remaining funds in the "Clean Coal Technology Reserve" are reduced $350,000,000.

DEPARTMENT OF ENERGY Clean Coal Technology

to

The managers have agreed to $400,000,000 Clean Coal Technology program as described under the Department of the Treasury, Energy Security Reserve. Bill language is included which provides for the selection of projects no later than August 1, 1986. Within that period, a general request for proposals must be issued within 60 days and proposals must be submitted to the Department within 60 days after issuance of the general request for proposals. Language is also included allowing the Secretary of Energy to vest title in interests acquired under agreements in any entity, including the United States, and delineating costsharing requirements. Funds for these activities and projects are made available to the Clean Coal Technology program in the Energy Security program.

It is the intent of the managers that contributions in the form of facilities and equipment be considered only to the extent that they would be amortized, depreciated or expensed in normal business practice. Normal business practice shall be determined by the Secretary and is not necessarily the practice of any single proposer. Property which has been fully depreciated would not receive any cost-sharing value except to the extent that it has been in continuous use by the proposer during the calendar year immediately preceding the enactment of this Act. For this property, a fair use value for the life of the project may be assigned. Property offered as a cost-share by the proposer that is currently being depreciated would be limited in its cost-share value to the depreciation claimed during the life of the demonstration project. Furthermore, in determining normal business practice, the Secretary should not accept valuation for property sold, transferred, exchanged, or otherwise manipulated to acquire a new basis for depreciation purposes or to establish a rental value in circumstances which would amount to a transaction for the mere purpose of participating in this program.

The managers agree that, with respect to cost-sharing, tax implications of proposals and tax advantages available to individual proposers should not be considered in determining the percentage of Federal cost-sharing. This is consistent with current and historical practices in Department of Energy procurements.

It is the intent of the managers that there be full and open competition and that the solicitation be open to all markets utilizing the entire coal resource base. However, projects should be limited to the use of United States mined coal as the feedstock and demonstration sites should be located within the United States.

The managers agree that no more than $1,500,000 shall be available in FY 1986 and $2,000,000 each year thereafter for contracting, travel, and ancillary costs of the program, and that manpower costs are to be funded under the fossil energy research and development program.

The managers direct the Department, after projects are selected, to provide a comprehensive report to the Congress on proposals received.

The managers also expect the request for proposals to be for the full $400,000,000 program, and not only for the first $100,000,000 available in fiscal year 1986.

« PreviousContinue »