I
109th CONGRESS
2d Session
H. R. 5778
IN THE HOUSE OF REPRESENTATIVES
July 12, 2006
Mr. Rahall introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Science and Ways and Means, 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 provide further incentives for the commercialization of coal-to-liquid fuel activities.
Short title
This Act may be cited as the
Coal-to-Liquid Fuel Energy Act of
2006
.
Definition
In this Act:
Coal-to-liquid fuel
The term coal-to-liquid fuel means any liquid fuel derived from coal through the Fischer-Tropsch process.
Secretary
The term Secretary means the Secretary of Energy.
Coal-to-liquid fuel loan guarantee program
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:
Large-scale coal-to-liquid fuel facilities (as defined in section 2 of the Coal-to-Liquid Fuel Energy Act of 2006).
.
Coal-to-liquid fuel facilities loan program
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 fuel facility that will produce at least 10,000 barrels per day of coal-to-liquid fuel.
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 fuel facility.
Application
To be eligible to receive a loan under subsection (b), an owner or operator of a coal-to-liquid fuel facility shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.
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.
Repayment of loan
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.
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 fuel 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)).
Authorization of appropriations
There are authorized to be appropriated to carry out this section $200,000,000, to remain available until expended.
Strategic Petroleum Reserve
Development, operation, and maintenance of Reserve
Section 159 of the Energy Policy and Conservation Act (42 U.S.C. 6239) is amended—
by redesignating subsections (f), (g), (j), (k), and (l) as subsections (a), (b), (d), (e), and (f), respectively; and
by inserting after subsection (b) (as redesignated by paragraph (1)) the following new subsection:
Study of maintaining coal-to-liquid fuel products in Reserve
Not later than 1 year after the date of enactment of the Coal-to-Liquid Fuel Energy Act of 2006, the Secretary shall—
conduct a study of the feasibility and suitability of maintaining coal-to-liquid fuel products in the Reserve; and
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.
.
Petroleum products for storage in Reserve
Section 160 of the Energy Policy and Conservation Act (42 U.S.C. 6240) is amended—
in subsection (a)—
in paragraph (1), by inserting a semicolon at the end;
in paragraph (2),
by striking and
at the end;
in paragraph (3),
by striking the period at the end and inserting ; and
;
and
by adding at the end the following:
coal-to-liquid fuel products (as defined in section 2 of the Coal-to-Liquid Fuel 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.
;
in subsection (b), by redesignating paragraphs (3) through (5) as paragraphs (2) through (4), respectively; and
by redesignating subsections (f) and (h) as subsections (d) and (e), respectively.
Conforming amendments
Section 167 of the Energy Policy and Conservation Act (42 U.S.C. 6247) is amended—
in subsection (b)—
by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively; and
in paragraph (2)
(as redesignated by subparagraph (A)), by striking section
160(f)
and inserting section 160(e)
; and
in subsection (d),
in the matter preceding paragraph (1), by striking section
160(f)
and inserting section 160(e)
.
Extension of excise tax credits for certain liquid fuel derived from coal
Alternative fuel credit
Paragraph (4) of section 6426(d) of the Internal Revenue
Code of 1986 (relating to termination) is amended by inserting (December
31, 2020, in the case of any sale or use involving liquid fuel derived from
coal which is described in paragraph (2)(E))
before the period at the
end.
Alternative fuel mixture credit
Paragraph (3)
of section 6426(e) of such Code (relating to termination) is amended by
inserting (December 31, 2020, in the case of any sale or use involving
liquid fuel derived from coal which is described in subsection
(d)(2)(E))
before the period at the end.
Refundability of credit
Paragraph (5) of section 6427(e) of such Code (relating to termination) is amended—
by
striking and
at the end of subparagraph (C), by striking the
period at the end of subparagraph (D) and inserting , and
, and
by adding at the end the following new subparagraph:
any alternative fuel or alternative fuel mixture (as so defined) involving liquid fuel derived from coal which is described in section 6426(d)(2)(E) sold or used after December 31, 2020.
, and
by
inserting or (E)
after subparagraph (D)
in
subparagraph (C).
Effective date
The amendments made by this section shall apply to any sale or use for any period after September 30, 2006.