109 HR 5778 IH: Coal-to-Liquid Fuel Energy Act of 2006 U.S. House of Representatives 2006-07-12 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

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.

1.

Short title

This Act may be cited as the Coal-to-Liquid Fuel Energy Act of 2006.

2.

Definition

In this Act: (1)

Coal-to-liquid fuel

The term coal-to-liquid fuel means any liquid fuel derived from coal through the Fischer-Tropsch process. (2)

Secretary

The term Secretary means the Secretary of Energy.

3.

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: (11)Large-scale coal-to-liquid fuel facilities (as defined in section 2 of the Coal-to-Liquid Fuel Energy Act of 2006). .

4.

Coal-to-liquid fuel 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 fuel 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 fuel facility. (c)

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. (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 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)). (f)

Authorization of appropriations

There are authorized to be appropriated to carry out this section $200,000,000, to remain available until expended.

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), (d), (e), and (f), respectively; and (2)by inserting after subsection (b) (as redesignated by paragraph (1)) the following new subsection: (c)

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— (1)conduct a study of the feasibility and suitability of maintaining coal-to-liquid fuel 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. . (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 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. ; (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).

6.

Extension of excise tax credits for certain liquid fuel derived from coal

(a)

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. (b)

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. (c)

Refundability of credit

Paragraph (5) of section 6427(e) of such Code (relating to termination) is amended— (1)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: (E)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 (2)by inserting or (E) after subparagraph (D) in subparagraph (C). (d)

Effective date

The amendments made by this section shall apply to any sale or use for any period after September 30, 2006.