Loan Guarantees Under Section 16513. IRA (2022)
(a)In generalThe Secretary may make guarantees under this section only for projects that—
(b)CategoriesProjects from the following categories shall be eligible for a guarantee under this section:
(2) Advanced fossil energy technology (including coal gasification meeting the criteria in subsection (d)).
(4) Advanced nuclear energy facilities, including manufacturing of nuclear supply components for advanced nuclear reactors.
(8) Production facilities for the manufacture of fuel efficient vehicles or parts of those vehicles, including electric drive vehicles and advanced diesel vehicles.
(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 that increase the domestically produced supply of critical minerals (as defined in section 1606(a) of title 30), including through the production, processing, manufacturing, recycling, or fabrication of mineral alternatives.
The Secretary may make guarantees for the following gasification projects:
(1)Integrated gasification combined cycle projects Integrated gasification combined cycle plants meeting the emission levels under subsection (d), including—
(A) projects for the generation of electricity—
(i) for which, during the term of the guarantee—
(ii) that have a design that is determined by the Secretary 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 capital and operating costs (including servicing all debt obligations covered by the guarantee) that is approved by the Secretary and the relevant State public utility commission; and
(iv) on which construction commences not later than the date that is 3 years after the date of the issuance of the guarantee;
(B)a project 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—
(iv) shall be located in a western State at an altitude greater than 4,000 feet; and
(C) a project located in a taconite-producing region of the United States that is entitled under the law of the State in which the plant is located to enter into a long-term contract approved by a State public utility commission to sell at least 450 megawatts of output to a utility;
(E)a project to produce energy and clean fuels, using appropriate coal liquefaction technology, from Western bituminous or subbituminous coal, that—
(i) is owned by a State government; and
(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 is encouraged to make loan guarantees under this subchapter available for petroleum coke gasification projects.
Notwithstanding any other provision of law, funds awarded under the Department of Energy’s Clean Coal Power Initiative for Fischer-Tropsch coal-to-oil liquefaction projects may be used to finance the cost of loan guarantees for projects awarded such funds.
(d)Emission levelsIn addition to any other applicable Federal or State emission limitation requirements, a project shall attain at least—
(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;
(e)Qualification of facilities receiving tax credits
A project that receives tax credits for clean coal technology shall not be disqualified from receiving a guarantee under this subchapter.
Notwithstanding subsection (a)(2), the Secretary may, if regional variation significantly affects the deployment of a technology, make guarantees under this subchapter for up to 6 projects that employ the same or similar technology as another project, provided no more than 2 projects that use the same or a similar technology are located in the same region of the United States.
Attributed to: https://www.law.cornell.edu/uscode/text/42/16513