[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6356 Introduced in House (IH)]







109th CONGRESS
  2d Session
                                H. R. 6356

  To provide for the research, development, and demonstration of coal 
   gasification technology as an energy source in ethanol production.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 5, 2006

 Mr. Costello introduced the following bill; which was referred to the 
                          Committee on Science

_______________________________________________________________________

                                 A BILL



  To provide for the research, development, and demonstration of coal 
   gasification technology as an energy source in ethanol production.

    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 ``America's Domestic Fuels Act''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Currently, the bulk of energy used in the production of 
        ethanol comes from natural gas. While coal is used for this 
        purpose, advanced coal gasification technologies would increase 
        the use of coal and reduce air emissions.
            (2) In coal gasification-based systems, pollutant-forming 
        impurities can be separated from the gaseous stream before 
        combustion. As much as 99 percent of sulfur and other 
        pollutants can be removed and processed into commercial 
        products. Ethanol plants using coal gasification technology 
        offer many benefits.
            (3) Coal potentially is an economically desirable 
        alternative to natural gas as the fuel in ethanol production 
        facilities. The Energy Information Administration projects that 
        in 2025 the industrial cost of natural gas will be $5.99 per 
        million Btu but coal will only be $1.86 per million Btu.
            (4) Coal is our most price-consistent fossil fuel. Natural 
        gas is our most price-volatile and unpredictable fuel. In 2005 
        alone, natural gas ranged from $5.75 to over $15.00 per million 
        Btu. Coal therefore has the potential to allow ethanol plants 
        to better manage their costs.
            (5) Coal is a domestic fuel with substantial reserves and 
        growing production. The United States has a vast supply of 
        domestic coal resources to meet soaring energy needs.
            (6) Once demonstrated for this purpose, coal should offer 
        ethanol producers the opportunity to sign long-term contracts.
            (7) As the Governor's Ethanol Coalition noted, increased 
        ethanol production is an important step toward improved 
        national security. Utilizing coal as a major fuel source for 
        ethanol production could eliminate the need to import natural 
        gas for the process.
            (8) Using domestic coal to produce ethanol has the 
        potential to create jobs, spur new businesses, and generate tax 
        revenues for local communities.
            (9) The United States has ambitious plans to rapidly grow 
        ethanol production, but the scale of this growth will depend 
        upon the availability of an economical fuel source. Events over 
        the past few years have demonstrated that we do not want to be 
        overly dependent on any one fuel source. Thus, dependency on 
        natural gas for ethanol production is undesirable. Diversifying 
        the fuel source used for ethanol production by increasing the 
        number of ethanol plants that are coal fueled reduces risk.

SEC. 3. RESEARCH, DEVELOPMENT, AND DEMONSTRATION.

    (a) Grant Program.--The Secretary of Energy shall provide grants to 
States for the conduct of the research needed to expedite the use of 
coal gasification as an energy source in ethanol production. Such 
research assistance shall be provided--
            (1) to develop the knowledge base that will be needed to 
        expediently permit coal gasification fueled ethanol plants;
            (2) to aid ethanol producers in the evaluation and 
        inclusion of coal gasification technologies in existing or new 
        ethanol plants;
            (3) to understand how to reduce the capital costs of coal 
        gasification as an energy source in ethanol production, 
        including making use of byproducts from agricultural practice, 
        and biomass material or blends, in the processing of ethanol; 
        and
            (4) to understand the applicability of carbon dioxide 
        capture and sequestration technologies, including adsorption 
        and absorption techniques and chemical processes, to coal 
        gasification as an energy source in ethanol production.
    (b) Demonstration Project.--At least 1 pilot project receiving 
assistance under this section shall be fueled by coal gasification and 
located in an area with high sulfur bituminous coal reserves.
    (c) Research and Development Authorization of Appropriations.--
There are authorized to be appropriated to the Secretary of Energy for 
carrying out research and development activities under this section 
$5,000,000 for fiscal year 2007.
    (d) Demonstration Project Authorization of Appropriations.--There 
are authorized to be appropriated to the Secretary of Energy for 
carrying out demonstration activities under this section $20,000,000 
for fiscal year 2007.
                                 <all>