109th CONGRESS
2d Session
H. R. 6025
To promote coal-to-liquid fuel activities.
IN THE HOUSE OF REPRESENTATIVES
July 28, 2006
Mr. WHITFIELD introduced the following bill; which was referred to the
Committee on Energy and Commerce, and in addition to the Committee on Science,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of
the committee concerned
A BILL
To promote coal-to-liquid fuel activities.
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 `Alternative Liquid Transportation Fuel Promotion
Act of 2006'.
SEC. 2. DEFINITIONS.
(1) BIOMASS- The term `biomass' means any organic material other than
oil and natural gas (or any product thereof).
(2) COAL- The term `coal' means any carbonized or semicarbonized matter,
including peat and biomass.
(3) COAL-TO-LIQUID- The term `coal-to-liquid' means--
(A) with respect to a process or technology, the use of the coal resources
of the United States, using the class of chemical reactions known as
Fischer-Tropsch, to produce synthetic fuel suitable for transportation;
and
(B) with respect to a facility, the portion of a facility related to
the Fischer-Tropsch process, Fischer-Tropsch finished fuel production,
or the capture, transportation, or sequestration of byproducts of the
use of coal at the Fischer-Tropsch facility, including carbon emissions.
(4) SECRETARY- The term `Secretary' means the Secretary of Energy.
SEC. 3. COAL-TO-LIQUID FUEL LOAN GUARANTEE PROGRAM.
(a) Eligible Projects- Section 1703(b) of the Energy Policy Act of 2005
(42 U.S.C. 16513(b)) is amended by adding at the end the following:
`(11) Large-scale coal-to-liquid facilities (as defined in section 2 of
the Alternative Liquid Transportation Fuel Promotion Act of 2006), that
use coal resources of the United States to produce not less than 5,000
barrels a day of liquid transportation fuel.'.
(b) Authorization of Appropriations- Section 1704 of the Energy Policy Act
of 2005 (42 U.S.C. 16514) is amended by adding at the end the following:
`(c) Coal-to-Liquid Projects-
`(1) IN GENERAL- There are authorized to be appropriated such sums as
are necessary to provide the cost of guarantees for projects involving
large-scale coal-to-liquid facilities under section 1703(b)(11).
`(A) IN GENERAL- No loan guarantees shall be provided under this title
for projects described in paragraph (1) after (as determined by the
Secretary)--
`(i) the tenth such loan guarantee is issued under this title; or
`(ii) production capacity covered by such loan guarantees reaches
100,000 barrels per day of coal-to-liquid fuel.
`(B) INDIVIDUAL PROJECTS-
`(i) IN GENERAL- A loan guarantee may be provided under this title
for any large-scale coal-to-liquid facility described in paragraph
(1) that produces no more than 20,000 barrels of coal-to-liquid fuel
per day.
`(ii) NON-FEDERAL FUNDING REQUIREMENT- To be eligible for a loan guarantee
under this title, a large-scale coal-to-liquid facility described
in paragraph (1) that produces more than 20,000 barrels of coal-to-liquid
fuel per day shall be required to provide non-Federal funding for
the proportional cost of the loan guarantee for production that exceeds
20,000 barrels of coal-to-liquid fuel per day.'.
SEC. 4. COAL-TO-LIQUID FACILITIES LOAN PROGRAM.
(a) Definition of Eligible Recipient- In this section, the term `eligible
recipient' means an individual, organization, or other entity that owns,
operates, or plans to construct a coal-to-liquid facility that will produce
at least 5,000 barrels per day of coal-to-liquid fuel.
(b) Establishment- The Secretary shall establish a program under which the
Secretary shall provide loans, in a total amount not to exceed $20,000,000,
for use by eligible recipients to pay the Federal share of the cost of obtaining
any services necessary for the planning, permitting, and construction of
a coal-to-liquid facility.
(c) Application- To be eligible to receive a loan under subsection (b),
an owner or operator of a coal-to-liquid facility shall submit to the Secretary
an application at such time, in such manner, and containing such information
as the Secretary may require.
(d) Non-Federal Match- To be eligible to receive a loan under this section,
an eligible recipient shall use non-Federal funds to provide a dollar-for-dollar
match of the amount of the loan.
(1) IN GENERAL- To be eligible to receive a loan under this section, an
eligible recipient shall agree to repay the original amount of the loan
to the Secretary not later than 5 years after the date of the receipt
of the loan.
(2) SOURCE OF FUNDS- Repayment of a loan under paragraph (1) may be made
from any financing or assistance received for the construction of a coal-to-liquid
facility described in subsection (a), including a loan guarantee provided
under section 1703(b)(11) of the Energy Policy Act of 2005 (42 U.S.C.
16513(b)(11)).
(f) Authorization of Appropriations- There are authorized to be appropriated
to carry out this section $200,000,000, to remain available until expended.
SEC. 5. STRATEGIC PETROLEUM RESERVE.
(a) Development, Operation, and Maintenance of Reserve- Section 159 of the
Energy Policy and Conservation Act (42 U.S.C. 6239) is amended--
(1) by redesignating subsections (f), (g), (j), (k), and (l) as subsections
(a), (b), (e), (f), and (g), respectively; and
(2) by inserting after subsection (b) (as redesignated by paragraph (1))
the following:
`(c) Study of Maintaining Coal-to-Liquid Products in Reserve- Not later
than 1 year after the date of enactment of the Alternative Liquid Transportation
Fuel Promotion Act of 2006, the Secretary shall--
`(1) conduct a study of the feasibility and suitability of maintaining
coal-to-liquid products in the Reserve; and
`(2) submit to the Committee on Energy and Natural Resources of the Senate
and the Committee on Energy and Commerce of the House of Representatives
a report describing the results of the study.
`(d) Construction or Lease of Storage Facilities- As soon as practicable
after the date of enactment of the Alternative Liquid Transportation Fuel
Promotion Act of 2006, the Secretary may construct or lease 1 or more storage
facilities--
`(1) in the vicinity of pipeline infrastructure and at least 1 military
base; but
`(2) outside the boundaries of any State on the coast of the Gulf of Mexico.'.
(b) Petroleum Products for Storage in Reserve- Section 160 of the Energy
Policy and Conservation Act (42 U.S.C. 6240) is amended--
(A) in paragraph (1), by inserting a semicolon at the end;
(B) in paragraph (2), by striking `and' at the end;
(C) in paragraph (3), by striking the period at the end and inserting
`; and'; and
(D) by adding at the end the following:
`(4) coal-to-liquid products (as defined in section 2 of the Alternative
Liquid Transportation Fuel Promotion Act of 2006), as the Secretary determines
to be appropriate, in a quantity not to exceed 20 percent of the total
quantity of petroleum products in the Reserve.';
(2) in subsection (b), by redesignating paragraphs (3) through (5) as
paragraphs (2) through (4), respectively; and
(3) by redesignating subsections (f) and (h) as subsections (d) and (e),
respectively.
(c) Conforming Amendments- Section 167 of the Energy Policy and Conservation
Act (42 U.S.C. 6247) is amended--
(A) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2),
respectively; and
(B) in paragraph (2) (as redesignated by subparagraph (A)), by striking
`section 160(f)' and inserting `section 160(e)'; and
(2) in subsection (d), in the matter preceding paragraph (1), by striking
`section 160(f)' and inserting `section 160(e)'.
END
