Carbon Capture Modernization Act
This bill modifies sequestration and other requirements for the qualifying advanced coal project tax credit.
To amend the Internal Revenue Code of 1986 to modify the qualifying 
         advanced coal project credit, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Carbon Capture Modernization Act''.

SEC. 2. MODIFICATIONS OF QUALIFYING ADVANCED COAL PROJECT CREDIT.

    (a) Sequestration Requirement for Certain Equipment.--Section 
48A(e)(1)(G) of the Internal Revenue Code of 1986 is amended by 
inserting ``and 60 percent in the case of an application for a 
reallocation of credits under subsection (d)(4) with respect to an 
electrical generating unit in existence on October 3, 2008'' after 
``under subsection (d)(4)''.
    (b) Nameplate Generating Capacity Requirement.--Section 
48A(e)(1)(C) of such Code is amended by striking ``400 megawatts'' and 
inserting ``200 megawatts''.
    (c) Advanced Coal-Based Generation Technology Requirements.--
            (1) In general.--Section 48A(f)(1) of such Code is amended 
        by striking ``generation technology if--'' and all that follows 
        through ``the unit is designed'' and inserting ``generation 
        technology if the unit is designed''.
            (2) Conforming amendments.--Section 48A(f) is amended--
                    (A) by striking all that precedes ``the purpose of 
                this section'' and inserting the following:
    ``(f) Advanced Coal-Based Generation Technology.--For'',
                    (B) by striking ``in subparagraph (B)'' in the 
                second sentence and inserting ``in this subsection'', 
                and
                    (C) by striking paragraphs (2) and (3).
    (d) Performance Requirements in Case of Best Available Control 
Technology.--Section 48A(f) of such Code, as amended by this Act, is 
amended by adding at the end the following: ``In the case of a retrofit 
of a unit which has undergone a best available control technology 
analysis after August 8, 2005, with respect to the removal or emissions 
of any pollutant which is SO<INF>2</INF> or NO<INF>x</INF>, the removal 
or emissions design level with respect to such pollutant shall be the 
level determined in such analysis.''.
    (e) Clarification of Reallocation Authority.--Section 48A(d)(4) of 
the Internal Revenue Code of 1986 is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``Not later than 6 years after the 
                date of enactment of this section, the'' and inserting 
                ``The'', and
                    (B) by inserting ``and every 6 months thereafter 
                until all credits available under this section have 
                been allowed'' after ``the date which is 6 years after 
                the date of enactment of this section'',
            (2) in subparagraph (B)--
                    (A) by striking ``may reallocate credits available 
                under clauses (i) and (ii) of paragraph (3)(B)'' and 
                inserting ``shall reallocate credits remaining 
                available under paragraph (3)'',
                    (B) by striking ``or'' at the end of clause (i), 
                and
                    (C) by striking clause (ii) and inserting the 
                following:
                            ``(ii) any applicant for certification 
                        which submitted an accepted application has 
                        subsequently failed to satisfy the requirements 
                        under paragraph (2)(D), or
                            ``(iii) any certification made pursuant to 
                        paragraph (2) has been revoked pursuant to 
                        paragraph (2)(E).'', and
            (3) in subparagraph (C)--
                    (A) by striking ``clause (i) or (ii) of paragraph 
                (3)(B)'' and inserting ``paragraph (3)'',
                    (B) by striking ``is authorized to'' and inserting 
                ``shall'', and
                    (C) by striking ``an additional program'' and 
                inserting ``additional programs''.
    (f) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to allocations and 
        reallocations after the date of the enactment of this Act.
            (2) Reallocation.--The amendments made by subsection (e) 
        shall apply to credits remaining available under section 
        48A(d)(3) of the Internal Revenue Code of 1986 on the date of 
        the enactment of this Act.
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Carbon Capture Modernization Act
A bill to amend the Internal Revenue Code of 1986 to modify the qualifying advanced coal project credit, and for other purposes.
Carbon Capture Modernization Act
Sen. Hoeven, John