[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3623 Introduced in Senate (IS)]
109th CONGRESS
2d Session
S. 3623
To promote coal-to-liquid fuel activities.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 29, 2006
Mr. Bunning (for himself, Mr. Obama, Mr. Lugar, Mr. Burns, Mr. Pryor,
Ms. Murkowski, and Mr. Bond) introduced the following bill; which was
read twice and referred to the Committee on Energy and Natural
Resources
_______________________________________________________________________
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 ``Coal-to-Liquid Fuel Promotion Energy
Act of 2006''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Coal-to-liquid.--The term ``coal-to-liquid'' means--
(A) with respect to a process or technology, the
use of a feedstock, the majority of which is 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 supplying inputs 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.
(2) 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 Coal-to-Liquid Fuel Promotion Energy Act of
2006) that use a feedstock, the majority of which is the coal
resources of the United States, to produce not less than 10,000
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).
``(2) Limitations.--
``(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 10,000 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.
(e) Repayment of 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 is authorized to be
appropriated to carry out this section $200,000,000, to remain
available until expended.
SEC. 5. LOCATION OF COAL-TO-LIQUID MANUFACTURING FACILITIES.
The Secretary, in coordination with the head of any affected
agency, shall promulgate such regulations as the Secretary determines
to be necessary to support the development on Federal land (including
land of the Department of Energy, military bases, and military
installations closed or realigned under the defense base closure and
realignment) of coal-to-liquid manufacturing facilities and associated
infrastructure, including the capture, transportation, or sequestration
of carbon dioxide.
SEC. 6. 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 Coal-to-Liquid
Fuel Promotion Energy Act of 2006, the Secretary and the Secretary of
Defense 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 and the Committee on Armed Services of the Senate and
the Committee on Energy and Commerce and the Committee on Armed
Services of the House of Representatives a report describing
the results of the study.
``(d) Construction of Storage Facilities.--As soon as practicable
after the date of enactment of the Coal-to-Liquid Fuel Promotion Energy
Act of 2006, the Secretary may construct 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--
(1) in subsection (a)--
(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 Coal-to-Liquid Fuel Promotion Energy 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--
(1) in subsection (b)--
(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)''.
SEC. 7. AUTHORIZATION TO CONDUCT RESEARCH, DEVELOPMENT, TESTING, AND
EVALUATION OF ASSURED DOMESTIC FUELS.
Of the amount authorized to be appropriated for the Air Force for
research, development, testing, and evaluation, $10,000,000 may be made
available for the Air Force Research Laboratory to continue support
efforts to test, qualify, and procure synthetic fuels developed from
coal for aviation jet use.
SEC. 8. COAL-TO-LIQUID FACILITIES ON OR NEAR MILITARY INSTALLATIONS.
Section 2398a of title 10, United States Code is amended--
(1) in subsection (b)--
(A) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary''; and
(B) by adding at the end the following:
``(2) Coal-to-liquid production facilities.--
``(A) In general.--The Secretary of Defense may
enter into contracts or other agreements with private
companies or other entities to develop and operate
coal-to-liquid facilities (as defined in section 2 of
the Coal-to-Liquid Fuel Promotion Energy Act of 2006)
on or near military installations.
``(B) Considerations.--In entering into contracts
and other agreements under subparagraph (A), the
Secretary shall consider land availability, testing
opportunities, and proximity to raw materials.'';
(2) in subsection (d)--
(A) by striking ``Subject to applicable provisions
of law, any'' and inserting ``Any''; and
(B) by striking ``1 or more years'' and inserting
``up to 25 years''; and
(3) by adding at the end the following:
``(f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.''.
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