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                                                                Order Code RS20877
                                                                        April 6, 2001



 CRS Report for Congress

              Received through the CRS Web



       The Clean Coal Technology Program:

                       Current Prospects

                             Carl E. Behrens
                       Specialist in Energy Policy
                Resources, Science, and Industry Division

Summary


     The Clean Coal Technology (CCT) program, started in the 1980's and funded
 generously in the early 1990's, has completed most of its surviving projects and has not
 funded any new ones since 1994. However, President Bush's FY2002 budget outline
 proposed spending $2 billion over 10 years on a restructured CCT program. It is not
 clear what kind of projects would be included in the new program.


 Background and History

    The Clean Coal Technology (CCT) Program was started in 1984 as a vestige of the
defunct Synthetic Fuels Corporation, a government corporation created to help develop
new fuels from domestic sources. By 1990 Congress had appropriated approximately $2.6
billion for the program, and the Department of Energy (DOE) selected and made cost-
sharing cooperative agreements for a large number of projects of varying size and
technologies. By the mid-1990s, the potential for adoption of most CCT technologies by
industry without government subsidy began to dim, and DOE in 1994 recommended that
no further projects be funded. Since then, approximately $300 million of previously
appropriated funding has been rescinded, and other funding has been deferred - including
$67 million in FY2001. President Bush's FY2002 budget outline, however, proposed
spending $2 billion over 10 years on a restructured CCT program, with the same industrial
cost-sharing principle as the existing program.

    CCT Technologies. The CCT program currently has 40 projects on its books, of
which 24 have been completed and seven are operating. One is under construction, six are
in the design stage, and two are on hold. (For details, see the CCT web site at
[http://www.lanl.gov/projects/cctc/resources/library/bibliography/bibliography.html])
These projects fall into four general categories:

    * Environmental Control Devices. Many of the early CCT projects were
       retrofits of existing powerplants to demonstrate emission control
       technologies as alternatives to traditional scrubbers or to conversion to


       Congressional Research Service o*o The Library of Congress

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