Amends the Internal Revenue Code to allow tax credits for investment in: (1) a qualifying clean coal technology unit in an existing coal-based electricity generation facility; and (2) early commercial applications of qualifying advanced clean coal technologies. Sets forth formulae for determining tax credits for unit production of both kinds of technologies.
Exempts the installation of a qualifying system of continuous emission control from new source review requirements under the Clean Air Act. Grants a ten-year exemption from any new or increased emission control requirements for the specific pollutant controlled by such a system to any existing coal-based electricity generating unit on which it has been installed, if the system meets or exceeds the specified standard of performance for new stationary sources.
Directs the Secretary of the Treasury to establish a financial risk pool for a limited time to offset the modification costs resulting from the failure of qualifying advanced clean coal technology to achieve its design performance.
Cites conditions under which credits for emission reductions and efficiency improvements in existing coal-based generating facilities of electric cooperatives or publicly owned electric utilities may be treated as offset credits.
Entitles the Tennessee Valley Authority to aggregate certain clean coal technology credits and apply them as a credit against obligations for annual returns on the appropriations investment and annual repayment sums.