1.This Act may be cited as
the Coal-to-Liquid Fuel Promotion
Energy Act of 2006
.
2.In this Act:
(1)The
term coal-to-liquid means—
(A)with respect to a
process or technology, the use of a feedstock, the majority of which is 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
(B)with respect to a
facility, the portion of a facility related to supplying inputs 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.
(2)The
term Secretary means the Secretary of Energy.
3.Coal-to-liquid
fuel loan guarantee program
(a)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 facilities (as defined in section 2 of the
Coal-to-Liquid Fuel Promotion Energy Act of
2006) that use a feedstock, the majority of which is the coal
resources of the United States, to produce not less than 10,000 barrels a day
of liquid transportation
fuel.
.
(b)Authorization
of appropriationsSection 1704 of the Energy Policy Act of 2005
(42 U.S.C. 16514) is amended by adding at the end the following:
(c)
(1)There are authorized to be appropriated such sums as are
necessary to provide the cost of guarantees for projects involving large-scale
coal-to-liquid facilities under section 1703(b)(11).
(2)
(A)No loan guarantees shall be provided under this title for
projects described in paragraph (1) after (as determined by the
Secretary)—
(i)the tenth such
loan guarantee is issued under this title; or
(ii)production
capacity covered by such loan guarantees reaches 100,000 barrels per day of
coal-to-liquid fuel.
(B)
(i)A loan guarantee may be provided under this title for any
large-scale coal-to-liquid facility described in paragraph (1) that produces no
more than 20,000 barrels of coal-to-liquid fuel per day.
(ii)Non-Federal
funding requirementTo be eligible for a loan guarantee under
this title, a large-scale coal-to-liquid facility described in paragraph (1)
that produces more than 20,000 barrels of coal-to-liquid fuel per day shall be
required to provide non-Federal funding for the proportional cost of the loan
guarantee for production that exceeds 20,000 barrels of coal-to-liquid fuel per
day.
.
4.Coal-to-liquid
facilities loan program
(a)Definition of
eligible recipientIn this section, the term eligible
recipient means an individual, organization, or other entity that owns,
operates, or plans to construct a coal-to-liquid facility that will produce at
least 10,000 barrels per day of coal-to-liquid fuel.
(b)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
facility.
(c)To
be eligible to receive a loan under subsection (b), an owner or operator of a
coal-to-liquid facility shall submit to the Secretary an application at such
time, in such manner, and containing such information as the Secretary may
require.
(d)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)
(1)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)Repayment of a loan under paragraph (1) may be made from
any financing or assistance received for the construction of a coal-to-liquid
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 appropriationsThere is authorized to be appropriated to carry
out this section $200,000,000, to remain available until expended.
5.Location of
coal-to-liquid manufacturing facilitiesThe Secretary, in coordination with the head
of any affected agency, shall promulgate such regulations as the Secretary
determines to be necessary to support the development on Federal land
(including land of the Department of Energy, military bases, and military
installations closed or realigned under the defense base closure and
realignment) of coal-to-liquid manufacturing facilities and associated
infrastructure, including the capture, transportation, or sequestration of
carbon dioxide.
6.Strategic
Petroleum Reserve
(a)Development,
operation, and maintenance of ReserveSection 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), (e), (f), and
(g), respectively; and
(2)by inserting
after subsection (b) (as redesignated by paragraph (1)) the following:
(c)Study of
maintaining coal-to-liquid products in ReserveNot later than 1
year after the date of enactment of the Coal-to-Liquid Fuel Promotion Energy Act of
2006, the Secretary and the Secretary of Defense shall—
(1)conduct a study
of the feasibility and suitability of maintaining coal-to-liquid 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.
(d)Construction of
storage facilitiesAs soon as practicable after the date of
enactment of the Coal-to-Liquid Fuel
Promotion Energy Act of 2006, the Secretary may construct 1 or
more storage facilities—
(1)in the vicinity
of pipeline infrastructure and at least 1 military base; but
(2)outside the
boundaries of any State on the coast of the Gulf of
Mexico.
.
(b)Petroleum
products for storage in ReserveSection 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
products (as defined in section 2 of the Coal-to-Liquid Fuel Promotion 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)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)
.
7.Authorization to
conduct research, development, testing, and evaluation of assured domestic
fuelsOf the amount authorized
to be appropriated for the Air Force for research, development, testing, and
evaluation, $10,000,000 may be made available for the Air Force Research
Laboratory to continue support efforts to test, qualify, and procure synthetic
fuels developed from coal for aviation jet use.
8.Coal-to-liquid
facilities on or near military installationsSection 2398a of title 10, United States
Code is amended—
(1)in subsection (b)—
(A)by striking The Secretary
and inserting the following:
(1)The Secretary
;
and
(B)by adding at the
end the following:
(2)Coal-to-liquid
production facilities
(A)The Secretary of Defense may enter into contracts or
other agreements with private companies or other entities to develop and
operate coal-to-liquid facilities (as defined in section 2 of the
Coal-to-Liquid Fuel Promotion Energy Act of
2006) on or near military installations.
(B)In
entering into contracts and other agreements under subparagraph (A), the
Secretary shall consider land availability, testing opportunities, and
proximity to raw
materials.
;
(2)in subsection
(d)—
(A)by striking
Subject to applicable provisions of law, any
and inserting
Any
; and
(B)by striking
1 or more years
and inserting up to 25 years
;
and
(3)by adding at the
end the following:
(f)Authorization
of appropriationsThere are authorized to be appropriated such
sums as are necessary to carry out this
section.
.