qualified emission reduction
(7) Refined coal (A) In general The term “refined coal” means a fuel— (i) which— (I) is a liquid, gaseous, or solid fuel produced from coal (including lignite) or high carbon fly ash, including such fuel used as a feedstock, (II) is sold by the taxpayer with the reasonable expectation that it will be used for the purpose of producing steam, and (III) is certified by the taxpayer as resulting (when used in the production of steam) in a qualified emission reduction, or (ii) which is steel industry fuel. (B) Qualified emission reduction The term “qualified emission reduction” means a reduction of at least 20 percent of the emissions of nitrogen oxide and at least 40 percent of the emissions of either sulfur dioxide or mercury released when burning the refined coal (excluding any dilution caused by materials combined or added during the production process), as compared to the emissions released when burning the feedstock coal or comparable coal predominantly available in the marketplace as of January 1, 2003 . (C) Steel industry fuel (i) In general The term “steel industry fuel” means a fuel which— (I) is produced through a process of liquifying coal waste sludge and distributing it on coal, and (II) is used as a feedstock for the manufacture of coke. (ii) Coal waste sludge The term “coal waste sludge” means the tar decanter sludge and related byproducts of the coking process, including such materials that have been stored in ground, in tanks and in lagoons, that have been treated as hazardous wastes under applicable Federal environmental rules absent liquefaction and processing with coal into a feedstock for the manufacture of coke.