Clean Power Plant and Modernization Act of 2001

Clean Power Plant and Modernization Act of 2001 - Requires fossil fuel-fired generating units that commence operation before ten years after this Act's enactment to achieve and maintain a specified combustion heat rate efficiency. Authorizes waivers for units that commence operation more than ten years after enactment. Requires units, not later than ten years after enactment, to operate in compliance with new source review requirements under the Clean Air Act.

Establishes specified emission limitations for mercury, carbon dioxide, sulfur dioxide, and nitrogen oxides from units based on the respective efficiency standards. Requires units to obtain permits under such Act that require compliance with such standards and limitations.

Directs the Administrator of the Environmental Protection Agency to promulgate: (1) fuel sampling and emission monitoring techniques for use in calculating mercury emission reductions; and (2) regulations concerning disclosure to consumers of unit emissions levels and the transfer of captured or recovered mercury.

Qualifies certain solar or geothermal power facilities for the renewable energy tax credit and extends the date by which eligible facilities must have been placed in service.

Imposes an excise tax on covered fossil fuel-fired generating units based upon megawatt hour generation to fund the Clean Air Trust Fund established by this Act.

Provides for: (1) accelerated depreciation and cost recovery for certain investor-owned units; and (2) annual grants for capital expenditures for new publicly owned units in amounts equal to the depreciation deduction that would be realized by similarly situated investor-owned units.

Expresses the sense of Congress with respect to crediting permanent reductions in carbon dioxide and nitrogen oxide emissions to the utility sector and owners or operators in any climate change implementation program enacted by Congress and passing on accrued value to utility customers.

Directs the Secretary of Energy to: (1) fund programs and partnerships to demonstrate the commercial viability and environmental benefits of power generation from biomass, geothermal, solar, and wind technologies and from fuel cells; and (2) establish a program to demonstrate the benefits of power generation from clean coal, advanced gas turbine, and combined heat and power technologies.

Provides assistance for coal industry and community transition, carbon sequestration activities, and atmospheric monitoring programs.