[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3300 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3300

  To provide for the development of a market for coal-to-liquid fuel.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 1, 2007

  Mr. Nunes introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
  To provide for the development of a market for coal-to-liquid fuel.

    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 ``Coal-to-Liquid Fuel Marketing Act of 
2007''.

SEC. 2. GOVERNMENT AUCTION OF LONG TERM PUT OPTION CONTRACTS ON COAL-
              TO-LIQUID FUEL PRODUCED BY QUALIFIED COAL-TO-LIQUID 
              FACILITIES.

    (a) In General.--The Secretary shall, from time to time, auction to 
the public coal-to-liquid fuel put option contracts having expiration 
dates of 5 years, 10 years, 15 years, or 20 years.
    (b) Consultation With Secretary of Energy.--The Secretary shall 
consult with the Secretary of Energy regarding--
            (1) the frequency of the auctions;
            (2) the strike prices specified in the contracts;
            (3) the number of contracts to be auctioned with a given 
        strike price and expiration date; and
            (4) the capacity of existing or planned facilities to 
        produce coal-to-liquid fuel.
    (c) Definitions.--In this section:
            (1) Coal-to-liquid fuel.--The term ``coal-to-liquid fuel'' 
        means any transportation-grade liquid fuel derived primarily 
        from coal (including peat) and produced at a qualified coal-to-
        liquid facility.
            (2) Coal-to-liquid put option contract.--The term ``coal-
        to-liquid put option contract'' means a contract, written by 
        the Secretary, which--
                    (A) gives the holder the right (but not the 
                obligation) to sell to the Government of the United 
                States a certain quantity of a specific type of coal-
                to-liquid fuel produced by a qualified coal-to-liquid 
                facility specified in the contract, at a strike price 
                specified in the contract, on or before an expiration 
                date specified in the contract; and
                    (B) is transferable by the holder to any other 
                entity.
            (3) Qualified coal-to-liquid facility.--The term 
        ``qualified coal-to-liquid facility'' means a manufacturing 
        facility that has the capacity to produce at least 10,000 
        barrels per day of transportation grade liquid fuels from a 
        feedstock that is primarily domestic coal (including peat and 
        any property which allows for the capture, transportation, or 
        sequestration of by-products resulting from such process, 
        including carbon emissions).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (5) Strike price.--The term ``strike price'' means, with 
        respect to a put option contract, the price at which the holder 
        of the contract has the right to sell the fuel which is the 
        subject of the contract.
    (d) Regulations.--The Secretary shall prescribe such regulations as 
may be necessary to carry out this section.
    (e) Effective Date.--This section shall take effect 1 year after 
the date of the enactment of this Act.
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