Clean Coal Production and Utilization Technology Demonstration Act

Clean Coal Production and Utilization Technology Demonstration Act - Directs the Secretary of Energy to establish a technology demonstration program of advanced systems to: (1) reduce air pollution from coal-burning powerplants and other facilities; and (2) prove more efficient and environmentally acceptable processes for producing coal-derived fuels. States that such program and its funding shall be in addition to the Research and Base Technology activity contained in the existing fossil energy research and development budget of the Department of Energy. Directs the Secretary to prepare detailed specifications for advanced systems to demonstrate: (1) five specified near-term technologies; (2) seven longer-term, second generation technologies; and (3) any other advanced technologies which may appear promising for extracting gas and oil from shale and coal through field tests, with an emphasis on exploiting these resources in the Eastern region of the United States. Directs the Secretary within six months from the date of the enactment of this Act to solicit proposals from the public to construct, install, and operate these systems pursuant to such detailed specifications, on a cooperative basis with appropriate assistance from the Secretary, in one or more new or existing electric powerplants. Directs the Secretary to report to the appropriate committees of Congress concerning the selection of a proposal at least 45 days prior to accepting any proposal for technology demonstration.

Directs the Secretary, within eight months following the date of the enactment of this Act, to prepare and submit to the appropriate committees of Congress a five-year national coal engineering, development, and technology demonstration plan. Requires such plan to be updated annually and submitted to such committees by January 31 of each succeeding year.

Makes available, pursuant to authorization and annual appropriation to the Secretary of Energy for use in carrying out this Act, a specified amount of the funds deposited in the Energy Security Reserve pursuant to provisions of the United States Synthetic Fuels Corporation Act of 1980. Authorizes an amount to be appropriated for FY 1986 from such reallocated funds to carry out the purposes of this Act.