S.Amdt. 4697Senate109th Congress (2005-2007)

S.Amdt. 4697

What it does: Adds SEC. ___. REFINERY PERMITTING PROCESS wherever appropriate
Submitted July 26, 2006

What it changes

1 change to S. 3711

Adds a section
  1. Adds SEC. ___. REFINERY PERMITTING PROCESS wherever appropriate

    Adds a section

    Inserted: SEC. ___. REFINERY PERMITTING PROCESS.

    Inserted: (a) Short Title.--This section may be cited as the "Domestic Fuel Security Act".

    Inserted: (b) Definitions.--In this section:

    Inserted: (1) Administrator.--The term "Administrator" means the Administrator of the Environmental Protection Agency.

    Inserted: (2) Indian tribe.--The term "Indian tribe" has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).

    Inserted: (3) Permit.--The term "permit" means any permit, license, approval, variance, or other form of authorization that a refiner is required to obtain--

    Inserted: (A) under any Federal law; or

    Inserted: (B) from a State or Indian tribal government agency delegated authority by the Federal Government, or authorized under Federal law, to issue permits.

    Inserted: (4) Refiner.--The term "refiner" means a person that--

    Inserted: (A) owns or operates a refinery; or

    Inserted: (B) seeks to become an owner or operator of a refinery.

    Inserted: (5) Refinery.--

    Show 118 more inserted paragraphs

    Inserted: (A) In general.--The term "refinery" means--

    Inserted: (i) a facility at which crude oil is refined into transportation fuel or other petroleum products; and

    Inserted: (ii) a coal liquification or coal-to-liquid facility at which coal is processed into synthetic crude oil or any other fuel.

    Inserted: (B) Inclusions.--The term "refinery" includes--

    Inserted: (i) an expansion of a refinery;

    Inserted: (ii) a biorefinery; and

    Inserted: (iii) any facility that produces a renewable fuel (as defined in section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)).

    Inserted: (6) Refinery expansion.--The term "refinery expansion" means a physical change in a refinery that results in an increase in the capacity of the refinery.

    Inserted: (7) Refinery permitting agreement.--The term "refinery permitting agreement" means an agreement entered into between the Administrator and a State or Indian tribe under subsection (d).

    Inserted: (8) Refinery project.--The term "refinery project" means a project for--

    Inserted: (A) acquisition or development of a base realignment and closure site for use for a refinery; or

    Inserted: (B) acquisition, development, rehabilitation, expansion, or improvement of refining operations on a base realignment and closure site or in a community affected by a base realignment and closure site.

    Inserted: (9) Secretary.--The term "Secretary" means the Secretary of Commerce.

    Inserted: (10) State.--The term "State" means--

    Inserted: (A) a State;

    Inserted: (B) the District of Columbia;

    Inserted: (C) the Commonwealth of Puerto Rico; and

    Inserted: (D) any other territory or possession of the United States.

    Inserted: (c) Economic Development Assistance to Encourage Petroleum-Based Refinery Activity on BRAC Property.--

    Inserted: (1) Priority.--Notwithstanding section 206 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3146), in awarding funds made available to carry out section 209(c)(1) of that Act (42 U.S.C. 3149(c)(1)) pursuant to section 702 of that Act (42 U.S.C. 3232), the Secretary and the Economic Development Administration shall give priority to refinery projects.

    Inserted: (2) Federal share.--Except as provided in paragraph (3)(C)(ii) and notwithstanding the Public Works and Economic Development Act of 1965 (42 U.S.C. 3121 et seq.), the Federal share of a refinery project shall be 80 percent of the project cost.

    Inserted: (3) Additional award.--

    Inserted: (A) In general.--The Secretary shall make an additional award in connection with a grant made to a recipient for a refinery project.

    Inserted: (B) Amount.--The amount of an additional award shall be 10 percent of the amount of the grant for the refinery project.

    Inserted: (C) Use.--An additional award under this paragraph shall be used--

    Inserted: (i) to carry out any eligible purpose under the Public Works and Economic Development Act of 1965 (42 U.S.C. 3121 et seq.);

    Inserted: (ii) notwithstanding section 204 of that Act (42 U.S.C. 3144), to pay up to 100 percent of the cost of an eligible project or activity under that Act; or

    Inserted: (iii) to meet the non-Federal share requirements of that Act or any other Act.

    Inserted: (D) Non-federal source.--For the purpose of subparagraph (C)(iii), an additional award shall be treated as funds from a non-Federal source.

    Inserted: (E) Funding.--The Secretary shall use to carry out this paragraph any amounts made available for economic development assistance programs or under section 702 of that Act (42 U.S.C. 3232).

    Inserted: (d) Streamlining of Refinery Permitting Process.--

    Inserted: (1) In general.--At the request of the Governor of a State or the governing body of an Indian tribe, the Administrator shall enter into a refinery permitting agreement with the State or Indian tribe under which the process for obtaining all permits necessary for the construction and operation of a refinery shall be streamlined using a systematic interdisciplinary multimedia approach as provided in this section.

    Inserted: (2) Authority of administrator.--Under a refinery permitting agreement--

    Inserted: (A) the Administrator shall have authority, as applicable and necessary, to--

    Inserted: (i) accept from a refiner a consolidated application for all permits that the refiner is required to obtain to construct and operate a refinery;

    Inserted: (ii) in consultation and cooperation with each Federal, State, or Indian tribal government agency that is required to make any determination to authorize the issuance of a permit, establish a schedule under which each agency shall--

    Inserted: (I) concurrently consider, to the maximum extent practicable, each determination to be made; and

    Inserted: (II) complete each step in the permitting process; and

    Inserted: (iii) issue a consolidated permit that combines all permits issued under the schedule established under clause (ii); and

    Inserted: (B) the Administrator shall provide to State and Indian tribal government agencies--

    Inserted: (i) financial assistance in such amounts as the agencies reasonably require to hire such additional personnel as are necessary to enable the government agencies to comply with the applicable schedule established under subparagraph (A)(ii); and

    Inserted: (ii) technical, legal, and other assistance in complying with the refinery permitting agreement.

    Inserted: (3) Agreement by the state.--Under a refinery permitting agreement, a State or governing body of an Indian tribe shall agree that--

    Inserted: (A) the Administrator shall have each of the authorities described in paragraph (2); and

    Inserted: (B) each State or Indian tribal government agency shall--

    Inserted: (i) in accordance with State law, make such structural and operational changes in the agencies as are necessary to enable the agencies to carry out consolidated project-wide permit reviews concurrently and in coordination with the Environmental Protection Agency and other Federal agencies; and

    Inserted: (ii) comply, to the maximum extent practicable, with the applicable schedule established under paragraph (2)(A)(ii).

    Inserted: (4) Interdisciplinary approach.--

    Inserted: (A) In general.--The Administrator and a State or governing body of an Indian tribe shall incorporate an interdisciplinary approach, to the maximum extent practicable, in the development, review, and approval of permits subject to this subsection.

    Inserted: (B) Options.--Among other options, the interdisciplinary approach may include use of--

    Inserted: (i) environmental management practices; and

    Inserted: (ii) third party contractors.

    Inserted: (5) Deadlines.--

    Inserted: (A) New refineries.--In the case of a consolidated permit for the construction of a new refinery, the Administrator and the State or governing body of an Indian tribe shall approve or disapprove the consolidated permit not later than--

    Inserted: (i) 360 days after the date of the receipt of the administratively complete application for the consolidated permit; or

    Inserted: (ii) on agreement of the applicant, the Administrator, and the State or governing body of the Indian tribe, 90 days after the expiration of the deadline established under clause (i).

    Inserted: (B) Expansion of existing refineries.--In the case of a consolidated permit for the expansion of an existing refinery, the Administrator and the State or governing body of an Indian tribe shall approve or disapprove the consolidated permit not later than--

    Inserted: (i) 120 days after the date of the receipt of the administratively complete application for the consolidated permit; or

    Inserted: (ii) on agreement of the applicant, the Administrator, and the State or governing body of the Indian tribe, 30 days after the expiration of the deadline established under clause (i).

    Inserted: (6) Federal agencies.--Each Federal agency that is required to make any determination to authorize the issuance of a permit shall comply with the applicable schedule established under paragraph (2)(A)(ii).

    Inserted: (7) Judicial review.--Any civil action for review of any permit determination under a refinery permitting agreement shall be brought exclusively in the United States district court for the district in which the refinery is located or proposed to be located.

    Inserted: (8) Efficient permit review.--In order to reduce the duplication of procedures, the Administrator shall use State permitting and monitoring procedures to satisfy substantially equivalent Federal requirements under this title.

    Inserted: (9) Severability.--If 1 or more permits that are required for the construction or operation of a refinery are not approved on or before any deadline established under paragraph (5), the Administrator may issue a consolidated permit that combines all other permits that the refiner is required to obtain other than any permits that are not approved.

    Inserted: (10) Savings.--Nothing in this subsection affects the operation or implementation of otherwise applicable law regarding permits necessary for the construction and operation of a refinery.

    Inserted: (11) Consultation with local governments.--Congress encourages the Administrator, States, and tribal governments to consult, to the maximum extent practicable, with local governments in carrying out this subsection.

    Inserted: (12) Authorization of appropriations.--There are authorized to be appropriated such sums as are necessary to carry out this subsection.

    Inserted: (13) Effect on local authority.--Nothing in this subsection affects--

    Inserted: (A) the authority of a local government with respect to the issuance of permits; or

    Inserted: (B) any requirement or ordinance of a local government (such as a zoning regulation).

    Inserted: (e) Efficiency.--

    Inserted: (1) Natural gas efficiency projects.--

    Inserted: (A) In general.--Not later than 180 days after the date of enactment of this Act, the Administrator shall solicit applications from eligible entities, as determined by the Administrator, for grants under the Natural Gas STAR Program under the Environmental Protection Agency to pay the Federal share of the cost of projects relating to the reduction of methane emissions in the oil and gas industries.

    Inserted: (B) Project inclusions.--To receive a grant under subparagraph (A), the application of the eligible entity shall include--

    Inserted: (i) an identification of 1 or more technologies used to achieve a reduction in the emission of methane; and

    Inserted: (ii) an analysis of the cost-effectiveness of a technology described in clause (i).

    Inserted: (C) Limitation.--A grant to an eligible entity under this paragraph shall not exceed $50,000.

    Inserted: (D) Federal share.--The Federal share of the cost of a project under this paragraph shall not exceed 50 percent.

    Inserted: (E) Authorization of appropriations.--There is authorized to be appropriated to carry out this paragraph $1,000,000 for the period of fiscal years 2006 through 2010.

    Inserted: (2) Efficiency promotion workshops.--

    Inserted: (A) In general.--The Administrator, in conjunction with the Interstate Oil and Gas Compact Commission, shall conduct a series of technical workshops to provide information to officials in oil- and gas-producing States relating to methane emission reduction techniques.

    Inserted: (B) Authorization of appropriations.--There is authorized to be appropriated to carry out this paragraph $1,000,000 for the period of fiscal years 2006 through 2010.

    Inserted: (f) Fuel Emergency Waivers.--Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) (as amended by section 1541 of the Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 1106)) is amended--

    Inserted: (1) by redesignating the first clause (v) as clause (vi);

    Inserted: (2) by redesignating the second clause (v) as clause (vii); and

    Inserted: (3) by inserting after clause (iv) the following:

    Inserted: "(v) A State shall be held harmless and not be required to revise its State implementation plan under section 110 to account for the emissions from a waiver granted by the Administrator under clause (ii).".

    Inserted: (g) Procurement of Fuel Derived From Coal, Oil Shale, and Tar Sands.--

    Inserted: (1) Definitions.--In this subsection:

    Inserted: (A) Coal-to-liquid.--The term "coal-to-liquid" means--

    Inserted: (i) 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

    Inserted: (ii) 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.

    Inserted: (B) Covered fuel.--The term "covered fuel" means fuel that is--

    Inserted: (i) produced, in whole or in part, from coal, oil shale, or tar sands;

    Inserted: (ii) extracted by mining or in-situ methods; and

    Inserted: (iii) refined or otherwise processed in the United States.

    Inserted: (C) Secretary.--The term "Secretary" means the Secretary of Defense.

    Inserted: (2) Use of fuel to meet department of defense needs.--The Secretary shall develop a strategy to use covered fuel to assist in meeting the fuel requirements of the Department of Defense at any time at which the Secretary determines that the use of covered fuel would be in the national interest.

    Inserted: (3) Procurement authority.--

    Inserted: (A) In general.--The Secretary may enter into 1 or more contracts or other agreements that meet the requirements of this subsection to procure covered fuel to meet 1 or more fuel requirements of the Department of Defense.

    Inserted: (B) Coal-to-liquid production facilities.--

    Inserted: (i) In general.--The Secretary may enter into contracts or other agreements with private and other entities to develop and operate coal-to-liquid facilities on or near military installations.

    Inserted: (ii) Considerations.--In entering into contracts and other agreements under clause (i), the Secretary shall consider land availability, testing opportunities, and proximity of raw materials.

    Inserted: (4) Clean fuel requirements.--A covered fuel may be procured under this subsection only if the covered fuel meets such standards for clean fuel produced from domestic sources as the Secretary, in consultation with the Secretary of Energy, shall establish for purposes of this subsection.

    Inserted: (5) Long-term contract authority.--The Secretary may enter into any contract or other agreement under this subsection for a period of up to 25 years.

    Inserted: (6) Fuel source analysis.--To facilitate the procurement by the Department of Defense of covered fuel under this subsection, the Secretary may carry out a comprehensive assessment of current and potential locations in the United States for the supply of covered fuel to the Department of Defense.

    Inserted: (7) Authorization of appropriations.--There are authorized to be appropriated such sums as are necessary to carry out this subsection.

    Inserted: (h) Fischer-Tropsch Fuels.--

    Inserted: (1) In general.--In cooperation with the Secretary of Energy, the Secretary of Defense, the Administrator of the Federal Aviation Administration, Secretary of Health and Human Services, and Fischer-Tropsch industry representatives, the Administrator shall--

    Inserted: (A) conduct a research and demonstration program to evaluate the air quality benefits of ultra-clean Fischer-Tropsch transportation fuel, including diesel and jet fuel;

    Inserted: (B) evaluate the use of ultra-clean Fischer-Tropsch transportation fuel as a mechanism for reducing engine exhaust emissions; and

    Inserted: (C) submit recommendations to Congress on the most effective use and associated benefits of these ultra-clean fuel for reducing public exposure to exhaust emissions.

    Inserted: (2) Guidance and technical support.--The Administrator shall, to the extent necessary, issue any guidance or technical support documents that would facilitate the effective use and associated benefit of Fischer-Tropsch fuel and blends.

    Inserted: (3) Requirements.--The program described in paragraph (1) shall consider--

    Inserted: (A) the use of neat (100 percent) Fischer-Tropsch fuel and blends with conventional crude oil-derived fuel for heavy-duty and light-duty diesel engines and the aviation sector; and

    Inserted: (B) the production costs associated with domestic production of those ultra clean fuel and prices for consumers.

    Inserted: (4) Reports.--The Administrator shall submit to the Committee on Environment and Public Works of the Senate and the Committee on Energy and Commerce of the House of Representatives--

    Inserted: (A) not later than October 1, 2006, an interim report on actions taken to carry out this subsection; and

    Inserted: (B) not later than December 1, 2007, a final report on actions taken to carry out this subsection.

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    Original wording

    At the appropriate place, insert the following:

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As printed

SA 4697. Mr. INHOFE submitted an amendment intended to be proposed by him to the bill S. 3711, to enhance the energy independence and security of the United States by providing for exploration, development, and production activities for mineral resources in the Gulf of Mexico, and for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. ___. REFINERY PERMITTING PROCESS.

(a) Short Title.--This section may be cited as the “Domestic Fuel Security Act”.

(b) Definitions.--In this section:

(1) Administrator.--The term “Administrator” means the Administrator of the Environmental Protection Agency.

(2) Indian tribe.--The term “Indian tribe” has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).

(3) Permit.--The term “permit” means any permit, license, approval, variance, or other form of authorization that a refiner is required to obtain--

(A) under any Federal law; or

(B) from a State or Indian tribal government agency delegated authority by the Federal Government, or authorized under Federal law, to issue permits.

(4) Refiner.--The term “refiner” means a person that--

(A) owns or operates a refinery; or

(B) seeks to become an owner or operator of a refinery.

(5) Refinery.--

(A) In general.--The term “refinery” means--

(i) a facility at which crude oil is refined into transportation fuel or other petroleum products; and

(ii) a coal liquification or coal-to-liquid facility at which coal is processed into synthetic crude oil or any other fuel.

(B) Inclusions.--The term “refinery” includes--

(i) an expansion of a refinery;

(ii) a biorefinery; and

(iii) any facility that produces a renewable fuel (as defined in section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)).

(6) Refinery expansion.--The term “refinery expansion” means a physical change in a refinery that results in an increase in the capacity of the refinery.

(7) Refinery permitting agreement.--The term “refinery permitting agreement” means an agreement entered into between the Administrator and a State or Indian tribe under subsection (d).

(8) Refinery project.--The term “refinery project” means a project for--

(A) acquisition or development of a base realignment and closure site for use for a refinery; or

(B) acquisition, development, rehabilitation, expansion, or improvement of refining operations on a base realignment and closure site or in a community affected by a base realignment and closure site.

(9) Secretary.--The term “Secretary” means the Secretary of Commerce.

(10) State.--The term “State” means--

(A) a State;

(B) the District of Columbia;

(C) the Commonwealth of Puerto Rico; and

(D) any other territory or possession of the United States.

(c) Economic Development Assistance to Encourage Petroleum-Based Refinery Activity on BRAC Property.--

(1) Priority.--Notwithstanding section 206 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3146), in awarding funds made available to carry out section 209(c)(1) of that Act (42 U.S.C. 3149(c)(1)) pursuant to section 702 of that Act (42 U.S.C. 3232), the Secretary and the Economic Development Administration shall give priority to refinery projects.

(2) Federal share.--Except as provided in paragraph (3)(C)(ii) and notwithstanding the Public Works and Economic Development Act of 1965 (42 U.S.C. 3121 et seq.), the Federal share of a refinery project shall be 80 percent of the project cost.

(3) Additional award.--

(A) In general.--The Secretary shall make an additional award in connection with a grant made to a recipient for a refinery project.

(B) Amount.--The amount of an additional award shall be 10 percent of the amount of the grant for the refinery project.

(C) Use.--An additional award under this paragraph shall be used--

(i) to carry out any eligible purpose under the Public Works and Economic Development Act of 1965 (42 U.S.C. 3121 et seq.);

(ii) notwithstanding section 204 of that Act (42 U.S.C. 3144), to pay up to 100 percent of the cost of an eligible project or activity under that Act; or

(iii) to meet the non-Federal share requirements of that Act or any other Act.

(D) Non-federal source.--For the purpose of subparagraph (C)(iii), an additional award shall be treated as funds from a non-Federal source.

(E) Funding.--The Secretary shall use to carry out this paragraph any amounts made available for economic development assistance programs or under section 702 of that Act (42 U.S.C. 3232).

(d) Streamlining of Refinery Permitting Process.--

(1) In general.--At the request of the Governor of a State or the governing body of an Indian tribe, the Administrator shall enter into a refinery permitting agreement with the State or Indian tribe under which the process for obtaining all permits necessary for the construction and operation of a refinery shall be streamlined using a systematic interdisciplinary multimedia approach as provided in this section.

(2) Authority of administrator.--Under a refinery permitting agreement--

(A) the Administrator shall have authority, as applicable and necessary, to--

(i) accept from a refiner a consolidated application for all permits that the refiner is required to obtain to construct and operate a refinery;

(ii) in consultation and cooperation with each Federal, State, or Indian tribal government agency that is required to make any determination to authorize the issuance of a permit, establish a schedule under which each agency shall--

(I) concurrently consider, to the maximum extent practicable, each determination to be made; and

(II) complete each step in the permitting process; and

(iii) issue a consolidated permit that combines all permits issued under the schedule established under clause (ii); and

(B) the Administrator shall provide to State and Indian tribal government agencies--

(i) financial assistance in such amounts as the agencies reasonably require to hire such additional personnel as are necessary to enable the government agencies to comply with the applicable schedule established under subparagraph (A)(ii); and

(ii) technical, legal, and other assistance in complying with the refinery permitting agreement.

(3) Agreement by the state.--Under a refinery permitting agreement, a State or governing body of an Indian tribe shall agree that--

(A) the Administrator shall have each of the authorities described in paragraph (2); and

(B) each State or Indian tribal government agency shall--

(i) in accordance with State law, make such structural and operational changes in the agencies as are necessary to enable the agencies to carry out consolidated project-wide permit reviews concurrently and in coordination with the Environmental Protection Agency and other Federal agencies; and

(ii) comply, to the maximum extent practicable, with the applicable schedule established under paragraph (2)(A)(ii).

(4) Interdisciplinary approach.--

(A) In general.--The Administrator and a State or governing body of an Indian tribe shall incorporate an interdisciplinary approach, to the maximum extent practicable, in the development, review, and approval of permits subject to this subsection.

(B) Options.--Among other options, the interdisciplinary approach may include use of--

(i) environmental management practices; and

(ii) third party contractors.

(5) Deadlines.--

(A) New refineries.--In the case of a consolidated permit for the construction of a new refinery, the Administrator and the State or governing body of an Indian tribe shall approve or disapprove the consolidated permit not later than--

(i) 360 days after the date of the receipt of the administratively complete application for the consolidated permit; or

(ii) on agreement of the applicant, the Administrator, and the State or governing body of the Indian tribe, 90 days after the expiration of the deadline established under clause (i).

(B) Expansion of existing refineries.--In the case of a consolidated permit for the expansion of an existing refinery, the Administrator and the State or governing body of an Indian tribe shall approve or disapprove the consolidated permit not later than--

(i) 120 days after the date of the receipt of the administratively complete application for the consolidated permit; or

(ii) on agreement of the applicant, the Administrator, and the State or governing body of the Indian tribe, 30 days after the expiration of the deadline established under clause (i).

(6) Federal agencies.--Each Federal agency that is required to make any determination to authorize the issuance of a permit shall comply with the applicable schedule established under paragraph (2)(A)(ii).

(7) Judicial review.--Any civil action for review of any permit determination under a refinery permitting agreement shall be brought exclusively in the United States district court for the district in which the refinery is located or proposed to be located.

(8) Efficient permit review.--In order to reduce the duplication of procedures, the Administrator shall use State permitting and monitoring procedures to satisfy substantially equivalent Federal requirements under this title.

(9) Severability.--If 1 or more permits that are required for the construction or operation of a refinery are not approved on or before any deadline established under paragraph (5), the Administrator may issue a consolidated permit that combines all other permits that the refiner is required to obtain other than any permits that are not approved.

(10) Savings.--Nothing in this subsection affects the operation or implementation of otherwise applicable law regarding permits necessary for the construction and operation of a refinery.

(11) Consultation with local governments.--Congress encourages the Administrator, States, and tribal governments to consult, to the maximum extent practicable, with local governments in carrying out this subsection.

(12) Authorization of appropriations.--There are authorized to be appropriated such sums as are necessary to carry out this subsection.

(13) Effect on local authority.--Nothing in this subsection affects--

(A) the authority of a local government with respect to the issuance of permits; or

(B) any requirement or ordinance of a local government (such as a zoning regulation).

(e) Efficiency.--

(1) Natural gas efficiency projects.--

(A) In general.--Not later than 180 days after the date of enactment of this Act, the Administrator shall solicit applications from eligible entities, as determined by the Administrator, for grants under the Natural Gas STAR Program under the Environmental Protection Agency to pay the Federal share of the cost of projects relating to the reduction of methane emissions in the oil and gas industries.

(B) Project inclusions.--To receive a grant under subparagraph (A), the application of the eligible entity shall include--

(i) an identification of 1 or more technologies used to achieve a reduction in the emission of methane; and

(ii) an analysis of the cost-effectiveness of a technology described in clause (i).

(C) Limitation.--A grant to an eligible entity under this paragraph shall not exceed $50,000.

(D) Federal share.--The Federal share of the cost of a project under this paragraph shall not exceed 50 percent.

(E) Authorization of appropriations.--There is authorized to be appropriated to carry out this paragraph $1,000,000 for the period of fiscal years 2006 through 2010.

(2) Efficiency promotion workshops.--

(A) In general.--The Administrator, in conjunction with the Interstate Oil and Gas Compact Commission, shall conduct a series of technical workshops to provide information to officials in oil- and gas-producing States relating to methane emission reduction techniques.

(B) Authorization of appropriations.--There is authorized to be appropriated to carry out this paragraph $1,000,000 for the period of fiscal years 2006 through 2010.

(f) Fuel Emergency Waivers.--Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) (as amended by section 1541 of the Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 1106)) is amended--

(1) by redesignating the first clause (v) as clause (vi);

(2) by redesignating the second clause (v) as clause (vii); and

(3) by inserting after clause (iv) the following:

“(v) A State shall be held harmless and not be required to revise its State implementation plan under section 110 to account for the emissions from a waiver granted by the Administrator under clause (ii).”.

(g) Procurement of Fuel Derived From Coal, Oil Shale, and Tar Sands.--

(1) Definitions.--In this subsection:

(A) Coal-to-liquid.--The term “coal-to-liquid” means--

(i) 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

(ii) 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.

(B) Covered fuel.--The term “covered fuel” means fuel that is--

(i) produced, in whole or in part, from coal, oil shale, or tar sands;

(ii) extracted by mining or in-situ methods; and

(iii) refined or otherwise processed in the United States.

(C) Secretary.--The term “Secretary” means the Secretary of Defense.

(2) Use of fuel to meet department of defense needs.--The Secretary shall develop a strategy to use covered fuel to assist in meeting the fuel requirements of the Department of Defense at any time at which the Secretary determines that the use of covered fuel would be in the national interest.

(3) Procurement authority.--

(A) In general.--The Secretary may enter into 1 or more contracts or other agreements that meet the requirements of this subsection to procure covered fuel to meet 1 or more fuel requirements of the Department of Defense.

(B) Coal-to-liquid production facilities.--

(i) In general.--The Secretary may enter into contracts or other agreements with private and other entities to develop and operate coal-to-liquid facilities on or near military installations.

(ii) Considerations.--In entering into contracts and other agreements under clause (i), the Secretary shall consider land availability, testing opportunities, and proximity of raw materials.

(4) Clean fuel requirements.--A covered fuel may be procured under this subsection only if the covered fuel meets such standards for clean fuel produced from domestic sources as the Secretary, in consultation with the Secretary of Energy, shall establish for purposes of this subsection.

(5) Long-term contract authority.--The Secretary may enter into any contract or other agreement under this subsection for a period of up to 25 years.

(6) Fuel source analysis.--To facilitate the procurement by the Department of Defense of covered fuel under this subsection, the Secretary may carry out a comprehensive assessment of current and potential locations in the United States for the supply of covered fuel to the Department of Defense.

(7) Authorization of appropriations.--There are authorized to be appropriated such sums as are necessary to carry out this subsection.

(h) Fischer-Tropsch Fuels.--

(1) In general.--In cooperation with the Secretary of Energy, the Secretary of Defense, the Administrator of the Federal Aviation Administration, Secretary of Health and Human Services, and Fischer-Tropsch industry representatives, the Administrator shall--

(A) conduct a research and demonstration program to evaluate the air quality benefits of ultra-clean Fischer-Tropsch transportation fuel, including diesel and jet fuel;

(B) evaluate the use of ultra-clean Fischer-Tropsch transportation fuel as a mechanism for reducing engine exhaust emissions; and

(C) submit recommendations to Congress on the most effective use and associated benefits of these ultra-clean fuel for reducing public exposure to exhaust emissions.

(2) Guidance and technical support.--The Administrator shall, to the extent necessary, issue any guidance or technical support documents that would facilitate the effective use and associated benefit of Fischer-Tropsch fuel and blends.

(3) Requirements.--The program described in paragraph (1) shall consider--

(A) the use of neat (100 percent) Fischer-Tropsch fuel and blends with conventional crude oil-derived fuel for heavy-duty and light-duty diesel engines and the aviation sector; and

(B) the production costs associated with domestic production of those ultra clean fuel and prices for consumers.

(4) Reports.--The Administrator shall submit to the Committee on Environment and Public Works of the Senate and the Committee on Energy and Commerce of the House of Representatives--

(A) not later than October 1, 2006, an interim report on actions taken to carry out this subsection; and

(B) not later than December 1, 2007, a final report on actions taken to carry out this subsection.

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Senate amendment submitted

July 26, 2006