S.Amdt. 2324

1. Adds SEC. 1031. SYNTHETIC FUEL TECHNOLOGIES at the end of subtitle C of title X

   Adds a section

   Inserted: SEC. 1031. SYNTHETIC FUEL TECHNOLOGIES.

   Inserted: (a) Findings.--Congress makes the following findings:

   Inserted: (1) Synthetic fuel technologies are mature, known technologies that are used around the world.

   Inserted: (2) With sizable coal reserves, the United States is ideally suited for the use of synthetic fuel technologies to produce alternatives for petroleum products.

   Inserted: (3) It is in the best interest of the national security of the United States to develop and commercialize a synthetic fuels industry.

   Inserted: (b) Department of Defense Requirements for Utilization of Synthetic Fuel.--

   Inserted: (1) In general.--Subchapter II of chapter 134 of title 10, United States Code, is amended by adding at the end the following new section:

   Inserted: "Sec. 2263. Fuel: minimum requirements for utilization of synthetic fuel

   Inserted: "(a) In General.--Of the total amount of fuel utilized by the Department of Defense in a calendar year, the percentage of such fuel that is synthetic fuel shall be the percentage as follows:

   Inserted: "(1) In the first applicable utilization year, 5 percent.

   Inserted: "(2) Except as provided in subsection (c), in any year after the first applicable utilization year, a percentage that is 5 greater than the percentage of utilization in the preceding year under this section.

   Inserted: "(b) First Applicable Utilization Year.--For purposes of subsection (a)(1), the first applicable utilization year for synthetic fuel shall be the earlier of the following:

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   Inserted: "(1) The first calendar year after the Secretary Defense certifies to Congress that at least 50 percent of the aircraft fleet of the Department has the proven capability to utilize synthetic fuel without--

   Inserted: "(A) any adverse effect on the aircraft engines of such fleet;

   Inserted: "(B) any adverse effect on the overall performance of the aircraft; and

   Inserted: "(C) any adverse effect on health and safety of the aircrew, passengers, and maintenance crew.

   Inserted: "(2) 2017.

   Inserted: "(c) Exception.--If as of December 31 of any year in which subsection (a) is in effect the average price of crude petroleum (as determined by the Secretary of Energy in 2007 constant dollars) is less then $40 per barrel, paragraph (2) of that subsection shall not be operative in the succeeding year.

   Inserted: "(d) Maximum Percentage.--(1) The maximum percentage of the fuel utilized by the Department that is required by this section to be synthetic fuel is 50 percent.

   Inserted: "(2) Nothing in paragraph (1) shall be construed to limit the percentage of fuel utilized by the Department that is synthetic fuel.

   Inserted: "(e) Synthetic Fuel Defined.--In this section, the term 'synthetic fuel' means the following:

   Inserted: "(1) A fuel made using the Fischer-Tropche process.

   Inserted: "(2)(A) Subject to subparagraph (B), a fuel made using any of the following feedstocks:

   Inserted: "(i) Coal.

   Inserted: "(ii) Natural gas.

   Inserted: "(iii) Petcoke.

   Inserted: "(iv) Biomass.

   Inserted: "(B) A fuel made using a feedstock referred to in clauses (ii) through (iv) is a synthetic fuel only if the British thermal unit (Btu)content per gallon of the fuel so made is equal to or greater than the British thermal unit content per gallon of synthetic fuel made using coal as a feedstock.

   Inserted: "(3) Any other fuel jointly specified by the Secretary of Defense and the Secretary of Energy for purposes of this section but only if the British thermal unit content per gallon of the fuel so specified is equal to or greater than the British thermal unit content per gallon of synthetic fuel made using coal as a feedstock in a Fischer-Tropche process.".

   Inserted: (2) Clerical amendment.--The table of section at the beginning of subchapter II of such chapter is amended by adding at the end the following new item:

   Inserted: "2263. Fuel: minimum requirements for utilization of synthetic fuel.".

   Inserted: (c) Commercial Aircraft Study.--

   Inserted: (1) In general.--The Secretary of Defense shall, in consultation with the Secretary of Energy and the Administrator of the Federal Aviation Administration, conduct a study on aircraft engines and airframes for non-fighter aircraft, including commercial aircraft, to determine the quantity of fuel produced using synthetic fuel technology that may be used without compromising health, safety, or longevity of such engines and airframes, including an analysis of any environmental benefits from using the fuel.

   Inserted: (2) Report.--Not later than 180 days after the date of the completion of the study under paragraph (1), the Secretary of Defense shall submit to Congress a report that describes--

   Inserted: (A) the results of the study; and

   Inserted: (B) any recommendations of the Secretary of Defense.

   Inserted: (d) Synthetic Fuel Defined.--In this section, the term "synthetic fuel" has the meaning given that term in section 2263(e) of title 10, United States Code (as added by subsection (b)).

   Original wording

   At the end of subtitle C of title X, add the following:

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As printed