1.This Act may be cited as
the Coal-to-Liquid Fuel Promotion Act
of 2007
.
<enum>I</enum><header>Coal-to-liquid
fuel activities</header>
<section id="idB46F57D67AC1433883B7E7938FC6C77D"><enum>101.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="ID16ea7076f6514c5590e79871add0437b"><enum>(1)</enum><header>Coal-to-liquid</header><text>The
term <term>coal-to-liquid</term> means—</text>
<subparagraph id="IDc22a54bc4b39493bb039ac58b19abb7f"><enum>(A)</enum><text>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 reactions known as
Fischer-Tropsch, to produce synthetic fuel suitable for transportation;
and</text>
</subparagraph><subparagraph id="ID231e79f45f834a3297b47b159642a8e7"><enum>(B)</enum><text>with respect to a
facility, the portion of a facility related to producing the inputs to the
Fischer-Tropsch process, the Fischer-Tropsch process, finished fuel production,
or the capture, transportation, or sequestration of byproducts of the use of a
feedstock that is primarily domestic coal at the Fischer-Tropsch facility,
including carbon emissions.</text>
</subparagraph></paragraph><paragraph id="idC934C38669E046C2A78525A54AB5FA69"><enum>(2)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Energy.</text>
</paragraph></section><section id="idB3AA687C5BE84319855B798FC8020B66"><enum>102.</enum><header>Coal-to-liquid
fuel loan guarantee program</header>
<subsection id="IDb4df044f2cc24fff95f55049d4016ae9"><enum>(a)</enum><header>Eligible
projects</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="id03D0EC2BC3184A44AA9EFAFBAB646F0A" style="OLC">
<paragraph id="id5E9A2884657A46CF96E9EE542939CAED"><enum>(11)</enum><text>Large-scale
coal-to-liquid facilities (as defined in section 101 of the
<short-title>Coal-to-Liquid Fuel Promotion Act of
2007</short-title>) 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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDae07574e6fd64da7a79aa00e5e47b8c3"><enum>(b)</enum><header>Authorization
of appropriations</header><text>Section 1704 of the Energy Policy Act of 2005
(42 U.S.C. 16514) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id6D156CEE9A8C416B88B5B2A65B0FB3DB" style="OLC">
<subsection id="idDD92B9420DC04FFEAA269D7ADF9BB35B"><enum>(c)</enum><header>Coal-to-liquid
projects</header>
<paragraph id="idA12DC46DDAAE4CA6B4A5D211A40F22F3"><enum>(1)</enum><header>In
general</header><text>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).</text>
</paragraph><paragraph id="IDe1c52c0f3e7c41389fe0bd87d61a4a35"><enum>(2)</enum><header>Alternative
Funding</header><text>If no appropriations are made available under paragraph
(1), an eligible applicant may elect to provide payment to the Secretary, to be
delivered if and at the time the application is approved, in the amount of the
estimated cost of the loan guarantee to the Federal Government, as determined
by the Secretary.</text>
</paragraph><paragraph id="id010560417F714261A20717DF42CE1AC7"><enum>(3)</enum><header>Limitations</header>
<subparagraph id="id7E67ECDD8DCE49F98530386270A056CA"><enum>(A)</enum><header>In
general</header><text>No loan guarantees shall be provided under this title for
projects described in paragraph (1) after (as determined by the
Secretary)—</text>
<clause id="id81B0037051E549419E75A2FB55F8843F"><enum>(i)</enum><text>the tenth such
loan guarantee is issued under this title; or</text>
</clause><clause id="idBDA9B550F1194989B698E24D9B428CFC"><enum>(ii)</enum><text>production
capacity covered by such loan guarantees reaches 100,000 barrels per day of
coal-to-liquid fuel.</text>
</clause></subparagraph><subparagraph id="id0BC16709767E4650AEA8C19BF5FCA91D"><enum>(B)</enum><header>Individual
projects</header>
<clause id="idB16BFC85498A4A649B996772B1F22ECE"><enum>(i)</enum><header>In
general</header><text>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.</text>
</clause><clause id="idB2591AC9C0194B409A774EDD1A9E47C3"><enum>(ii)</enum><header>Non-Federal
funding requirement</header><text>To 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 per day of coal-to-liquid fuel shall be
eligible to receive a loan guarantee for the proportion of the cost of the
facility that represents 20,000 barrels of coal-to-liquid fuel per day of
production.</text>
</clause></subparagraph></paragraph><paragraph id="id254F95714D2F44FAA8178C525894CEEA"><enum>(4)</enum><header>Requirements</header>
<subparagraph id="id2E6387537B3B4417AFA5AF695A7A8F01"><enum>(A)</enum><header>Guidelines</header><text>Not
later than 180 days after the date of enactment of this subsection, the
Secretary shall publish guidelines for the coal-to-liquids loan guarantee
application process.</text>
</subparagraph><subparagraph id="idAD0AEAAF90BC4EEE866461A2834EC199"><enum>(B)</enum><header>Applications</header><text>Not
later than 1 year after the date of enactment of this subsection, the Secretary
shall begin to accept applications for coal-to-liquid loan guarantees under
this subsection.</text>
</subparagraph><subparagraph id="id34B3E7E8578448F1BA3E5E056E0991E2"><enum>(C)</enum><header>Deadline</header><text>Not
later than 1 year from the date of acceptance of an application under
subparagraph (B), the Secretary shall evaluate the application and make final
determinations under this subsection.</text>
</subparagraph></paragraph><paragraph id="idEE639C496DE54A65941B9E0A5A8B54F4"><enum>(5)</enum><header>Reports to
Congress</header><text>The Secretary shall submit to the Committee on Energy
and Natural Resources of the Senate and the Committee on Energy and Commerce of
the House of Representatives a report describing the status of the program
under this subsection not later than each of—</text>
<subparagraph id="idEEDBE55FCD174F6291F177DB3DBF6DB6"><enum>(A)</enum><text>180 days after
the date of enactment of this subsection;</text>
</subparagraph><subparagraph id="idD65D06A336DA4DE085AD994A37E317F4"><enum>(B)</enum><text>1 year after the
date of enactment of this subsection; and</text>
</subparagraph><subparagraph id="id8F4EABA9A7554BF79592DE17A173947E"><enum>(C)</enum><text>the dates on
which the Secretary approves the first and fifth applications for
coal-to-liquid loan guarantees under this
subsection.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="id8EE03AC584E94A6D8B80D2303A101D79"><enum>103.</enum><header>Coal-to-liquid
facilities loan program</header>
<subsection id="idE9B26E799909411196E2124F3F347359"><enum>(a)</enum><header>Definition of
eligible recipient</header><text>In this section, the term <term>eligible
recipient</term> 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.</text>
</subsection><subsection id="id93398BDC4885405DA1CE99C372C7FD51"><enum>(b)</enum><header>Establishment</header><text>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.</text>
</subsection><subsection id="id6781C4AB28BF4DE9BABE80004D81D1A1"><enum>(c)</enum><header>Application</header><text>To
be eligible to receive a loan under subsection (b), the eligible recipient
shall submit to the Secretary an application at such time, in such manner, and
containing such information as the Secretary may require.</text>
</subsection><subsection id="id66E03ACFA780471A86341E6C73A0747E"><enum>(d)</enum><header>Non-Federal
match</header><text>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.</text>
</subsection><subsection id="idA703A0E1C23E465D8BD512F7CD4763BB"><enum>(e)</enum><header>Repayment of
loan</header>
<paragraph id="idDE9033FCCB6244318F778F0DFF97A717"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="id8D787F46202B439B9B99EAA5C1AE433C"><enum>(2)</enum><header>Source of
funds</header><text>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)).</text>
</paragraph></subsection><subsection id="idF6B86D917559463A8535B709B27EB5FB"><enum>(f)</enum><header>Requirements</header>
<paragraph id="id4F38E435F538405F9E712411EBA63003"><enum>(1)</enum><header>Guidelines</header><text>Not
later than 180 days after the date of enactment of this Act, the Secretary
shall publish guidelines for the coal-to-liquids loan application
process.</text>
</paragraph><paragraph id="id20A0814128EF4D0A9AE6773CCD8B8F4C"><enum>(2)</enum><header>Applications</header><text>Not
later than 1 year after the date of enactment of this Act, the Secretary shall
begin to accept applications for coal-to-liquid loans under this
section.</text>
</paragraph></subsection><subsection id="id7D5F959582724F769D308990761FF17E"><enum>(g)</enum><header>Reports to
Congress</header><text>Not later than each of 180 days and 1 year after the
date of enactment of this Act, the Secretary shall submit to the Committee on
Energy and Natural Resources of the Senate and the Committee on Energy and
Commerce of the House of Representatives a report describing the status of the
program under this section.</text>
</subsection><subsection id="id18CACFE80E92473EBB0B5AD9A5F39CC7"><enum>(h)</enum><header>Authorization
of appropriations</header><text>There is authorized to be appropriated to carry
out this section $200,000,000, to remain available until expended.</text>
</subsection></section><section id="idAA808D7C02AA40039DBB25C302C7DA5F"><enum>104.</enum><header>Location of
coal-to-liquid manufacturing facilities</header><text display-inline="no-display-inline">The 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.</text>
</section><section id="id35FDBBB64DF74ADBAB51D35BF743B634"><enum>105.</enum><header>Strategic
Petroleum Reserve</header>
<subsection id="idE6AC872BF8894FF2BB676A18CC02F5C4"><enum>(a)</enum><header>Development,
operation, and maintenance of Reserve</header><text display-inline="yes-display-inline">Section 159 of the Energy Policy and
Conservation Act (42 U.S.C. 6239) is amended—</text>
<paragraph id="id0C204AE2FB734B24BC1E9E482F8B067D"><enum>(1)</enum><text>by redesignating
subsections (f), (g), (j), (k), and (l) as subsections (a), (b), (e), (f), and
(g), respectively; and</text>
</paragraph><paragraph id="id48699017B045437C8E06E54930733486"><enum>(2)</enum><text>by inserting
after subsection (b) (as redesignated by paragraph (1)) the following:</text>
<quoted-block display-inline="no-display-inline" id="idE7D6EAB1004E41419E60729C5441E9C5" style="OLC">
<subsection id="idE37DC3AED1964CE99AC4E8B5ACF9B6D3"><enum>(c)</enum><header>Study of
maintaining coal-to-liquid products in Reserve</header><text>Not later than 1
year after the date of enactment of the <short-title>Coal-to-Liquid Fuel Promotion Act of 2007</short-title>,
the Secretary and the Secretary of Defense shall—</text>
<paragraph id="idA996E342D3E340F0B62945ED25EACA7C"><enum>(1)</enum><text>conduct a study
of the feasibility and suitability of maintaining coal-to-liquid products in
the Reserve; and</text>
</paragraph><paragraph id="idF0266C439B1B4A10AF2E460DEA5E3761"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="id80EA7B1F9F73499C99B42B855D47F03B"><enum>(d)</enum><header>Construction of
storage facilities</header><text>As soon as practicable after the date of
enactment of the <short-title>Coal-to-Liquid Fuel
Promotion Act of 2007</short-title>, the Secretary may construct 1 or more
storage facilities in the vicinity of pipeline infrastructure and at least 1
military
base.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id8EDB4907941C4C5D87A22CAFB22D9EA1"><enum>(b)</enum><header>Petroleum
products for storage in Reserve</header><text display-inline="yes-display-inline">Section 160 of the Energy Policy and
Conservation Act (42 U.S.C. 6240) is amended—</text>
<paragraph id="id6F16B4B6B874484DB329669010F0389E"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="id5B67EA020DA9493983EF8A125B73BB41"><enum>(A)</enum><text>in paragraph (1),
by inserting a semicolon at the end;</text>
</subparagraph><subparagraph id="id2361FBA5DB094D58B6C2B2B1BBD1390D"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="id4979E5323C1F4CD1B8E43795680A1F23"><enum>(C)</enum><text>in paragraph (3),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</subparagraph><subparagraph id="id839A16E3EB3C48DFBDE7CE4262CB00F5"><enum>(D)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id82D45E4C547E4C4383FE2F3C21A6F937" style="OLC">
<paragraph id="id4F627CEF9BBE4A42B3BB4BDD38F5B00E"><enum>(4)</enum><text>coal-to-liquid
products (as defined in section 101 of the <short-title>Coal-to-Liquid Fuel Promotion Act of 2007</short-title>),
as the Secretary determines to be appropriate, in a quantity not to exceed 20
percent of the total quantity of petroleum and petroleum products in the
Reserve.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id28CDC008C68F4DCCAAFD98AE996B88B8"><enum>(2)</enum><text>in subsection
(b), by redesignating paragraphs (3) through (5) as paragraphs (2) through (4),
respectively; and</text>
</paragraph><paragraph id="id8945602C36C6427EAB9C2BDFAAA7B243"><enum>(3)</enum><text>by redesignating
subsections (f) and (h) as subsections (d) and (e), respectively.</text>
</paragraph></subsection><subsection id="idD98E0F66521C49459948AF89215C786E"><enum>(c)</enum><header>Conforming
amendments</header><text>Section 167 of the Energy Policy and Conservation Act
(42 U.S.C. 6247) is amended—</text>
<paragraph id="idEDD82F52468E4AA1BE63AD0366E3F40E"><enum>(1)</enum><text>in subsection
(b)—</text>
<subparagraph id="id728183226F1A43F5BF9A39718193BF49"><enum>(A)</enum><text>by redesignating
paragraphs (2) and (3) as paragraphs (1) and (2), respectively; and</text>
</subparagraph><subparagraph id="id832D4023FD6249CBBCD37047FEE39C3B"><enum>(B)</enum><text>in paragraph (2)
(as redesignated by subparagraph (A)), by striking <quote>section
160(f)</quote> and inserting <quote>section 160(e)</quote>; and</text>
</subparagraph></paragraph><paragraph id="id8F373C3D4AE343658F1CC4137DFB74B5"><enum>(2)</enum><text>in subsection
(d), in the matter preceding paragraph (1), by striking <quote>section
160(f)</quote> and inserting <quote>section 160(e)</quote>.</text>
</paragraph></subsection></section><section id="ID5db2389bd94a46a1a96267408048346a"><enum>106.</enum><header>Authorization
to conduct research, development, testing, and evaluation of assured domestic
fuels</header><text display-inline="no-display-inline">Of 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.</text>
</section><section id="ID1f4704139ff142d2a3f0f57040567518"><enum>107.</enum><header>Coal-to-liquid
long-term fuel procurement and department of defense development</header><text display-inline="no-display-inline">Section 2398a of title 10, United States
Code is amended—</text>
<paragraph id="idD15366ADF3BC46A69BF92BC9495652BD"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)—</text>
<subparagraph id="idD2C453FFD55748978895335DA5F856B4"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>The Secretary</quote>
and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idE8E409C3EF7C4D4587809A5156A85435" style="OLC">
<paragraph id="idD2009A19C42047D1806675E71780CD92"><enum>(1)</enum><header>In
general</header><text>The Secretary</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id2FB70CF9506F4F7BBFA2EB95F15DFE76"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id55BBEC733AAC4BE9AE6A9AFEB281FB17" style="OLC">
<paragraph id="ID46a3c711480648bfb0501ee37b97d5e6"><enum>(2)</enum><header>Coal-to-liquid
production facilities</header>
<subparagraph id="id106B8CA8881C4BDB80E6BDCFA7B69F7E"><enum>(A)</enum><header>In
general</header><text>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 101 of the
<short-title>Coal-to-Liquid Fuel Promotion Act of
2007</short-title>) on or near military installations.</text>
</subparagraph><subparagraph id="id070F908B0BB74C4E9240700C36551F6B"><enum>(B)</enum><header>Considerations</header><text>In
entering into contracts and other agreements under subparagraph (A), the
Secretary shall consider land availability, testing opportunities, and
proximity to raw
materials.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="idB4F7CED763A74FA391D7671AE3C1E6D1"><enum>(2)</enum><text>in subsection
(d)—</text>
<subparagraph id="idF5183D97842B42118A926A1C47016D48"><enum>(A)</enum><text>by striking
<quote>Subject to applicable provisions of law, any</quote> and inserting
<quote>Any</quote>; and</text>
</subparagraph><subparagraph id="idC259CB12688B46A189DF4ED2476C1B23"><enum>(B)</enum><text>by striking
<quote>1 or more years</quote> and inserting <quote>up to 25 years</quote>;
and</text>
</subparagraph></paragraph><paragraph id="idE5186CC0634A441BA90CA2F3BB14DE58"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id2AF254AD1BBA41ADB897B0096832A12E" style="OLC">
<subsection id="id873CB68B5B6A4E11A2350AAC4427844C"><enum>(f)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated such
sums as are necessary to carry out this
section.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="idFE63B7098C9D40BD85BC37438E2998F3"><enum>108.</enum><header>Report on
emissions of Fischer-Tropsch products used as transportation fuels</header>
<subsection id="ID99df27535f444adb8151c2b896ff1ae8"><enum>(a)</enum><header>In
general</header><text>In cooperation with the Administrator of the
Environmental Protection Agency, the Secretary of Defense, the Administrator of
the Federal Aviation Administration, and the Secretary of Health and Human
Services, the Secretary shall—</text>
<paragraph id="ID55939aef97cf4e5ab2f343f8f14351ea"><enum>(1)</enum><text>carry out a
research and demonstration program to evaluate the emissions of the use of
Fischer-Tropsch fuel for transportation, including diesel and jet fuel;</text>
</paragraph><paragraph id="ID8d1c53c8669449c285f321ef09d75086"><enum>(2)</enum><text>evaluate the
effect of using Fischer-Tropsch transportation fuel on land and air engine
exhaust emissions; and</text>
</paragraph><paragraph id="IDbc0ee3a15fec40e5a82e0486263b0676"><enum>(3)</enum><text>in accordance
with subsection (e), submit to Congress a report on the effect on air quality
and public health of using Fischer-Tropsch fuel in the transportation
sector.</text>
</paragraph></subsection><subsection id="ID98cff714e3284eb1bdb973e4b26a0138"><enum>(b)</enum><header>Guidance and
technical support</header><text>The Secretary shall issue any guidance or
technical support documents necessary to facilitate the effective use of
Fischer-Tropsch fuel and blends under this section.</text>
</subsection><subsection id="ID4915177345a641adac036cf500d54619"><enum>(c)</enum><header>Facilities</header><text>For
the purpose of evaluating the emissions of Fischer-Tropsch transportation
fuels, the Secretary shall—</text>
<paragraph id="idFD9579A23F754B3ABB0CB515970AA841"><enum>(1)</enum><text>support the use
and capital modification of existing facilities and the construction of new
facilities at the research centers designated in section 417 of the Energy
Policy Act of 2005 (42 U.S.C. 15977); and</text>
</paragraph><paragraph id="idDA8E862121C441628CC3B3E5BF7B5C68"><enum>(2)</enum><text>engage those
research centers in the evaluation and preparation of the report required under
subsection (a)(3).</text>
</paragraph></subsection><subsection id="IDa85479ce84a74f889d830ca0626f47ad"><enum>(d)</enum><header>Requirements</header><text>The
program described in subsection (a)(1) shall consider—</text>
<paragraph id="IDc091400b431c48b2b5f7384f247c40e4"><enum>(1)</enum><text>the use of neat
(100 percent) Fischer-Tropsch fuel and blends of Fischer-Tropsch fuels with
conventional crude oil-derived fuel for heavy-duty and light-duty diesel
engines and the aviation sector; and</text>
</paragraph><paragraph id="IDde00b7ac9b1b425f874a0138be7c383b"><enum>(2)</enum><text>the production
costs associated with domestic production of those fuels and prices for
consumers.</text>
</paragraph></subsection><subsection id="ID54b06b83866f4d0dba2d2a57e3da1d66"><enum>(e)</enum><header>Reports</header><text>The
Secretary shall submit to the Committee on Energy and Natural Resources of the
Senate and the Committee on Energy and Commerce of the House of
Representatives—</text>
<paragraph id="ID53a2eb18dbc445449df65e23b8dc8718"><enum>(1)</enum><text>not later than
180 days after the date of enactment of this Act, an interim report on actions
taken to carry out this section; and</text>
</paragraph><paragraph id="ID431b05d3b307493295014923721b6dfa"><enum>(2)</enum><text>not later than 1
year after the date of enactment of this Act, a final report on actions taken
to carry out this section.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDe147db3f420f450ebc4280d2465722a9"><enum>(f)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated such
sums as are necessary to carry out this section.</text>
</subsection></section><enum>II</enum><header>Amendments to
the Internal Revenue Code of 1986</header>
<section id="ID00E8B8E37CAC488D939749A14AC5FE5E"><enum>201.</enum><header>Credit for
investment in coal-to-liquid fuels projects</header>
<subsection id="ID5D8DEB6CB74F4CD3AFF04E9703DBD13E"><enum>(a)</enum><header>In
general</header><text>Section 46 of the Internal Revenue Code of 1986 (relating
to amount of credit) is amended by striking <quote>and</quote> at the end of
paragraph (3), by striking the period at the end of paragraph (4) and inserting
<quote>, and</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block id="ID656BF78FB8A64EA3B8DDE0ED47EFA5A0">
<paragraph id="IDC9F87479671B4F19939D2DE683FBE2BF"><enum>(5)</enum><text>the qualifying
coal-to-liquid fuels project
credit.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDB01ABF716E8348A8AF52742953EC2A99"><enum>(b)</enum><header>Amount of
credit</header><text>Subpart E of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to rules for computing investment
credit) is amended by inserting after section 48B the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="ID95FBEFD9E8984BE9A775FD252FB88FAA" style="OLC">
<section id="ID36FFB5BD05E04EF2AE15B68C384CD706"><enum>48C.</enum><header>Qualifying
coal-to-liquid fuels project credit</header>
<subsection id="ID606F7BE560DE4D6C805F3848922E7F4D"><enum>(a)</enum><header>In
general</header><text>For purposes of section 46, the qualifying coal-to-liquid
fuels project credit for any taxable year is an amount equal to 20 percent of
the qualified investment for such taxable year.</text>
</subsection><subsection id="IDBFB7624E237544928FA110EEA66BB3EF"><enum>(b)</enum><header>Qualified
investment</header>
<paragraph id="ID0C2BF98C4B364BF1B25405F09C21BA53"><enum>(1)</enum><header>In
general</header><text>For purposes of subsection (a), the qualified investment
for any taxable year is the basis of property placed in service by the taxpayer
during such taxable year which is part of a qualifying coal-to-liquid fuels
project—</text>
<subparagraph id="ID851308FF0D2F4649A0921502E9635207"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="IDA509DB22276C47CB8DC97B7376C861C0"><enum>(i)</enum><text>the construction,
reconstruction, or erection of which is completed by the taxpayer, or</text>
</clause><clause id="ID5F8BDCA7CC9148189CE03F2F72DC3AA0" indent="up1"><enum>(ii)</enum><text>which is acquired by the taxpayer
if the original use of such property commences with the taxpayer, and</text>
</clause></subparagraph><subparagraph id="ID600413CE8AA9488C90016704A1CD94E6"><enum>(B)</enum><text>with respect to
which depreciation (or amortization in lieu of depreciation) is
allowable.</text>
</subparagraph></paragraph><paragraph id="IDD6454BFA25134F78A77DE95B7C651752"><enum>(2)</enum><header>Applicable
rules</header><text>For purposes of this section, rules similar to the rules of
subsection (a)(4) and (b) of section 48 shall apply.</text>
</paragraph></subsection><subsection id="ID4AD9B6BAA0A840A9A93440450A4BC387"><enum>(c)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="ID7798E3ADB46144F0BC387933ABABA0FA"><enum>(1)</enum><header>Qualifying
coal-to-liquid fuels project</header><text>The term <term>qualifying
coal-to-liquid fuels project</term> means any domestic project which—</text>
<subparagraph id="IDE38CEB43E8EC49D4BD0894D0F7318478"><enum>(A)</enum><text>employs the class
of reactions known as Fischer-Tropsch to produce at least 10,000 barrels per
day of transportation grade liquid fuels from a feedstock that is primarily
domestic coal (including any property which allows for the capture,
transportation, or sequestration of by-products resulting from such process,
including carbon emissions), and</text>
</subparagraph><subparagraph id="ID7865A523F9A946CC8A8FB62B5CBF1278"><enum>(B)</enum><text>any portion of
the qualified investment in which is certified under the qualifying
coal-to-liquid program as eligible for credit under this section in an amount
(not to exceed $200,000,000) determined by the Secretary.</text>
</subparagraph></paragraph><paragraph id="ID2DEED214F2D1417282385F0201A66E59"><enum>(2)</enum><header>Coal</header><text>The
term <term>coal</term> means any carbonized or semicarbonized matter, including
peat.</text>
</paragraph></subsection><subsection id="ID170C56561E19492A9767DBC7FC2C9F2C"><enum>(d)</enum><header>Qualifying
coal-to-liquid fuels project program</header>
<paragraph id="ID3F311C5A69B443F19323DAA1EFCCA590"><enum>(1)</enum><header>In
general</header><text>The Secretary, in consultation with the Secretary of
Energy, shall establish a qualifying coal-to-liquid fuels project program to
consider and award certifications for qualified investment eligible for credits
under this section to 10 qualifying coal-to-liquid fuels project sponsors under
this section. The total qualified investment which may be awarded eligibility
for credit under the program shall not exceed $2,000,000,000.</text>
</paragraph><paragraph id="ID89309610DF274DFD8BAA1FC40B3ADC09"><enum>(2)</enum><header>Period of
issuance</header><text>A certificate of eligibility under paragraph (1) may be
issued only during the 10-fiscal year period beginning on October 1,
2007.</text>
</paragraph><paragraph id="ID0CB4078B87414F238CADEBB3CE79CFEE"><enum>(3)</enum><header>Selection
criteria</header><text>The Secretary shall not make a competitive certification
award for qualified investment for credit eligibility under this section unless
the recipient has documented to the satisfaction of the Secretary that—</text>
<subparagraph id="ID0374974006B5483F99DBF1B144D34C2F"><enum>(A)</enum><text>the proposal of
the award recipient is financially viable,</text>
</subparagraph><subparagraph id="ID2E45386A4D274580A8F32CB0CDC241E2"><enum>(B)</enum><text>the recipient
will provide sufficient information to the Secretary for the Secretary to
ensure that the qualified investment is spent efficiently and
effectively,</text>
</subparagraph><subparagraph id="ID650CE353FD4C4B1EB2692CCDABA73F2F"><enum>(C)</enum><text>the fuels
identified with respect to the gasification technology for such project will
comprise at least 90 percent of the fuels required by the project for the
production of transportation grade liquid fuels,</text>
</subparagraph><subparagraph id="ID87285002C9E44114B96A840500590E1D"><enum>(D)</enum><text>the award
recipient’s project team is competent in the planning and construction of coal
gasification facilities and familiar with operation of the Fischer-Tropsch
process, with preference given to those recipients with experience which
demonstrates successful and reliable operations of such process, and</text>
</subparagraph><subparagraph id="ID87DBF14249364CEA9735DC977E9D62ED"><enum>(E)</enum><text>the award
recipient has met other criteria established and published by the
Secretary.</text>
</subparagraph></paragraph></subsection><subsection id="id1CE8A43610054F2FAB35872E7AF4538D"><enum>(e)</enum><header>Denial of
double benefit</header><text>No deduction or other credit shall be allowed with
respect to the basis of any property taken into account in determining the
credit allowed under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDAB71C8ADC32143E98F1A9458B9B02383"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="ID5D01D28D62AB48CF9BCCC60CB633A9F1"><enum>(1)</enum><text>Section
49(a)(1)(C) of the Internal Revenue Code of 1986 is amended by striking
<quote>and</quote> at the end of clause (iii), by striking the period at the
end of clause (iv) and inserting <quote>, and</quote>, and by adding after
clause (iv) the following new clause:</text>
<quoted-block id="IDA4E7D1AEDFA341EB839B7D860A7F0E93">
<clause id="IDA925C342133E4060BE1F0B3A10DB4BC9"><enum>(v)</enum><text>the basis of any
property which is part of a qualifying coal-to-liquid fuels project under
section
48C.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID16AFF10EF0314AAAA647A66ACEFC4675"><enum>(2)</enum><text>The table of
sections for subpart E of part IV of subchapter A of chapter 1 of such Code is
amended by inserting after the item relating to section 48B the following new
item:</text>
<quoted-block id="IDC496565B18144917B7B688291C895819" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">48C. Qualifying coal-to-liquid fuels
project
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID89B52528DF5D4413906FC33FAFC78DD4"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to periods
after the date of the enactment of this Act, under rules similar to the rules
of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day
before the date of the enactment of the Revenue Reconciliation Act of
1990).</text>
</subsection></section><section id="ID353EC3FD1B4B4934BCFF14D8964A2234"><enum>202.</enum><header>Temporary
expensing for equipment used in coal-to-liquid fuels process</header>
<subsection id="ID51BABC70E2CC407DBA954B128A683E6A"><enum>(a)</enum><header>In
general</header><text>Part VI of subchapter B of chapter 1 of the Internal
Revenue Code of 1986 is amended by inserting after section 179D the following
new section:</text>
<quoted-block id="IDFF8F42404C554475971875BE631265B9">
<section id="ID4B2B54A1603745AEAB4C9EBE951D0648"><enum>179E.</enum><header>Election to
expense certain coal-to-liquid fuels facilities</header>
<subsection id="IDF6164B3DCE504329947ECADBA085A0F4"><enum>(a)</enum><header>Treatment as
expenses</header><text>A taxpayer may elect to treat the cost of any qualified
coal-to-liquid fuels process property as an expense which is not chargeable to
capital account. Any cost so treated shall be allowed as a deduction for the
taxable year in which the expense is incurred.</text>
</subsection><subsection id="IDA8E2A9BFADE044AB923E6F8470A4F7F4"><enum>(b)</enum><header>Election</header>
<paragraph id="ID6B9903EEB0B64C6DAD910E60B566494C"><enum>(1)</enum><header>In
general</header><text>An election under this section for any taxable year shall
be made on the taxpayer’s return of the tax imposed by this chapter for the
taxable year. Such election shall be made in such manner as the Secretary may
by regulations prescribe.</text>
</paragraph><paragraph id="IDC5DAD4B21744408EB174115DB6974D27"><enum>(2)</enum><header>Election
irrevocable</header><text>Any election made under this section may not be
revoked except with the consent of the Secretary.</text>
</paragraph></subsection><subsection id="ID248C19B824A74EDD8C5D53DE40FB49B8"><enum>(c)</enum><header>Qualified
coal-to-liquid fuels process property</header><text>The term <term>qualified
coal-to-liquid fuels process property</term> means any property located in the
United States—</text>
<paragraph id="id3B5527188252439A8243E2D03B8A0DCC"><enum>(1)</enum><text>which employs the
Fischer-Tropsch process to produce transportation grade liquid fuels from a
feedstock that is primarily domestic coal (including any property which allows
for the capture, transportation, or sequestration of by-products resulting from
such process, including carbon emissions),</text>
</paragraph><paragraph id="ID82A2C0747CAB4538A95BD28667BA4118"><enum>(2)</enum><text>the original use
of which commences with the taxpayer,</text>
</paragraph><paragraph id="IDACDEBDB7BBA74610888978BCFD100463"><enum>(3)</enum><text>the construction
of which—</text>
<subparagraph id="IDD932FBC25D164D4AAFC7020FB68BDE14"><enum>(A)</enum><text>except as
provided in subparagraph (B), is subject to a binding construction contract
entered into after the date of the enactment of this section and before January
1, 2011, but only if there was no written binding construction contract entered
into on or before such date of enactment, or</text>
</subparagraph><subparagraph id="ID0B6F1486536E4D819B41128FA1795161"><enum>(B)</enum><text>in the case of
self-constructed property, began after the date of the enactment of this
section and before January 1, 2011, and</text>
</subparagraph></paragraph><paragraph id="ID198DD3C5207542A68D81FC759910B7E1"><enum>(4)</enum><text>which is placed
in service by the taxpayer after the date of the enactment of this section and
before January 1, 2016.</text>
</paragraph></subsection><subsection id="IDA4F2D2020FCB4048B483F514026036F9"><enum>(d)</enum><header>Election to
allocate deduction to cooperative owner</header><text>If—</text>
<paragraph id="ID6F7A177A118A4A14B5C3BAF54162B9EA"><enum>(1)</enum><text>a taxpayer to
which subsection (a) applies is an organization to which part I of subchapter T
applies, and</text>
</paragraph><paragraph id="ID1A7992656710430D951AE16EDD4C168D"><enum>(2)</enum><text>one or more
persons directly holding an ownership interest in the taxpayer are
organizations to which part I of subchapter T apply,</text>
</paragraph><continuation-text continuation-text-level="subsection">the
taxpayer may elect to allocate all or a portion of the deduction allowable
under subsection (a) to such persons. Such allocation shall be equal to the
person’s ratable share of the total amount allocated, determined on the basis
of the person’s ownership interest in the taxpayer. The taxable income of the
taxpayer shall not be reduced under section 1382 by reason of any amount to
which the preceding sentence applies.</continuation-text></subsection><subsection id="id76331E9C281D432D807909A110BA9073"><enum>(e)</enum><header>Basis
reduction</header>
<paragraph id="idA6E930F2CADC44DFAF1ADDF807330670"><enum>(1)</enum><header>In
general</header><text>For purposes of this title, if a deduction is allowed
under this section with respect to any qualified coal-to-liquid fuels process
property, the basis of such property shall be reduced by the amount of the
deduction so allowed.</text>
</paragraph><paragraph id="idFADAE27A8ED24DFCBCEE5E2DC87B2432"><enum>(2)</enum><header>Ordinary income
recapture</header><text>For purposes of section 1245, the amount of the
deduction allowable under subsection (a) with respect to any property which is
of a character subject to the allowance for depreciation shall be treated as a
deduction allowed for depreciation under section 167.</text>
</paragraph></subsection><subsection id="id13B7F35706784076B65D45A0A799009F"><enum>(f)</enum><header>Application
with other deductions and credits</header>
<paragraph id="idA2CE9883463742BCB8A3B9C911493D7A"><enum>(1)</enum><header>Other
deductions</header><text>No deduction shall be allowed under any other
provision of this chapter with respect to any expenditure with respect to which
a deduction is allowed under subsection (a) to the taxpayer.</text>
</paragraph><paragraph id="id19A06625D54F4DFF821C7E3D2DE99376"><enum>(2)</enum><header>Credits</header><text>No
credit shall be allowed under section 38 with respect to any amount for which a
deduction is allowed under subsection (a).</text>
</paragraph></subsection><subsection id="IDA2D223D30EDA4510B47A540272F94D4D"><enum>(g)</enum><header>Reporting</header><text>No
deduction shall be allowed under subsection (a) to any taxpayer for any taxable
year unless such taxpayer files with the Secretary a report containing such
information with respect to the operation of the property of the taxpayer as
the Secretary shall
require.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID37B5D4DB75644D1BB1868305AF0AFC41"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="id3E7D40887902456687DE2C41A562A8E9"><enum>(1)</enum><text>Section 1016(a)
of the Internal Revenue Code of 1986 is amended by striking <quote>and</quote>
at the end of paragraph (36), by striking the period at the end of paragraph
(37) and inserting <quote>, and</quote>, and by adding at the end the following
new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id6989310E2C494BABAF7C9E36929104C7" style="OLC">
<paragraph id="idEFABCC8F5DDB41399D8B27AD388F6FD0"><enum>(38)</enum><text>to the extent
provided in section
179E(e)(1).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID8BBE8ADF04B9465A99D75E0CD6400E74"><enum>(2)</enum><text>Section 1245(a)
of such Code is amended by inserting <quote>179E,</quote> after
<quote>179D,</quote> both places it appears in paragraphs (2)(C) and
(3)(C).</text>
</paragraph><paragraph id="ID6B169F07374047878A385B84E80B5E4A"><enum>(3)</enum><text>Section 263(a)(1)
of such Code is amended by striking <quote>or</quote> at the end of
subparagraph (J), by striking the period at the end of subparagraph (K) and
inserting <quote>, or</quote>, and by inserting after subparagraph (K) the
following new subparagraph:</text>
<quoted-block id="ID461DE34AF14F449888330BC38DAAB17A">
<subparagraph id="ID77C95A39DC13430AB4FA273094A1209D"><enum>(L)</enum><text>expenditures for
which a deduction is allowed under section
179E.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDBEB4282B50DB44DAB71FEFF2B166DD31"><enum>(4)</enum><text>Section
312(k)(3)(B) of such Code is amended by striking <quote>or 179D</quote> each
place it appears in the heading and text and inserting <quote>179D, or
179E</quote>.</text>
</paragraph><paragraph id="ID512643FFE2D946388491A67675959D39"><enum>(5)</enum><text>The table of
sections for part VI of subchapter B of chapter 1 of such Code is amended by
inserting after the item relating to section 179D the following new
item:</text>
<quoted-block id="ID42C6441F7E384F5DB56A8FAF491843CF" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 179E. Election to expense certain
coal-to-liquid fuels
facilities.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID5201C383B9864EE994532E8C4BF251FB"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
properties placed in service after the date of the enactment of this
Act.</text>
</subsection></section><section id="id23EB0E7D9F654A87BEE0B16FE5403B0C"><enum>203.</enum><header>Extension of
alternative fuel credit for fuel derived from coal through the Fischer-Tropsch
process</header>
<subsection id="idF56DFFA4D9A24AD9A51B650DA187EBC9"><enum>(a)</enum><header>Alternative
fuel credit</header><text display-inline="yes-display-inline">Paragraph (4) of
section 6426(d) of the Internal Revenue Code of 1986 is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id4F41924354FC4C37B817195CC230FE5E" style="OLC">
<paragraph id="idB068B2C17225440F96ACD00BEE7DDAE1"><enum>(4)</enum><header>Termination</header><text>This
subsection shall not apply to—</text>
<subparagraph id="id73D595175D8543B092E37E896463A919"><enum>(A)</enum><text>any sale or use
involving liquid fuel derived from a feedstock that is primarily domestic coal
(including peat) through the Fischer-Tropsch process for any period after
September 30, 2020,</text>
</subparagraph><subparagraph id="idA7B6F2924CA745DEBA10B7862D1872DD"><enum>(B)</enum><text>any sale or use
involving liquified hydrogen for any period after September 30, 2014,
and</text>
</subparagraph><subparagraph id="id958D02A093AF41939463E07A6FD7A766"><enum>(C)</enum><text>any other sale or
use for any period after September 30,
2009.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id95C0E9BCEBA5403881F513F00E3874ED"><enum>(b)</enum><header>Payments</header>
<paragraph id="idF7C3DFDFD7484CCF860D0C6662CB82F1"><enum>(1)</enum><header>In
general</header><text>Paragraph (5) of section 6427(e) of the Internal Revenue
Code of 1986 is amended by striking <quote>and</quote> and the end of
subparagraph (C), by striking the period at the end of subparagraph (D) and
inserting <quote>, and</quote>, and by adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="idB790A492F3A5487CA5665C6A60F81B3C" style="OLC">
<subparagraph id="id8EC9AA6A91B440E5BC7160BFCDC7D61F"><enum>(E)</enum><text>any alternative
fuel or alternative fuel mixture (as so defined) involving liquid fuel derived
from coal (including peat) through the Fischer-Tropsch process sold or used
after September 30,
2020.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id9E4623E152EC45CD91D7AA3FB39DBA56"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 6427(e)(5)(C) of such Code is amended by
striking <quote>subparagraph (D)</quote> and inserting <quote>subparagraphs (D)
and (E)</quote>.</text>
</paragraph></subsection></section><section id="idC0BD4ADF4BF44585A4C987FE5277D4BF"><enum>204.</enum><header>Modifications
to enhanced oil recovery credit</header>
<subsection id="ID42c58e30d8d041eea4396cb1e9c4ef01"><enum>(a)</enum><header>Enhanced credit
for carbon dioxide injections</header><text>Section 43 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="idBEECC8BC185D4D109736D63C66093FCB" style="OLC">
<subsection id="IDe4dd84d565304c899a6f0ab623c2df78"><enum>(f)</enum><header>Enhanced credit
for projects using qualified carbon dioxide</header>
<paragraph id="ID72aeb93613fb41bd84081d70b70406c8"><enum>(1)</enum><header>In
general</header><text>For purposes of this section—</text>
<subparagraph id="IDda9a49ecf9f54879b2eeb8b9115846ac"><enum>(A)</enum><text>the term
<term>qualified project</term> includes a project described in paragraph (2),
and</text>
</subparagraph><subparagraph id="ID33187cfeec56400c9a1b361c0679f078"><enum>(B)</enum><text>in the case of a
project described in paragraph (2), subsection (a) shall be applied by
substituting ‘50 percent’ for ‘15 percent’.</text>
</subparagraph></paragraph><paragraph id="IDaabdf2dd9ed844a5b132d22220f3cc44"><enum>(2)</enum><header>Projects
described</header><text>A project is described in this paragraph if it begins
or is substantially expanded after December 31, 2007, and</text>
<subparagraph id="IDf6aae90060dd4229abab3790ccf87a73"><enum>(A)</enum><text>uses qualified
carbon dioxide in an enhanced oil, natural gas, or coalbed methane recovery
method, which involves flooding or injection, or</text>
</subparagraph><subparagraph id="ID3c1c7a5808d14082b54f3fc7f6c570f7"><enum>(B)</enum><text>enables the
capture or sequestration of qualified carbon dioxide.</text>
</subparagraph></paragraph><paragraph id="id7CF2F13DCE54468D8C9E938CB1853461"><enum>(3)</enum><header>Definitions</header><text>For
purposes of this subsection—</text>
<subparagraph id="IDd25550ef3a1548b88a68fed742758403"><enum>(A)</enum><header>Enhanced oil
recovery</header><text>The term <term>enhanced oil recovery</term> means
recovery of oil by injecting or flooding with qualified carbon dioxide.</text>
</subparagraph><subparagraph id="ID14bba6e8598e4991a4c3085ba45c04ec"><enum>(B)</enum><header>Enhanced
natural gas recovery</header><text>The term <term>enhanced natural gas
recovery</term> means recovery of natural gas by injecting or flooding with
qualified carbon dioxide.</text>
</subparagraph><subparagraph id="ID906405d88b9d479897db25cc27b837f3"><enum>(C)</enum><header>Enhanced
coalbed methane recovery</header><text>The term <term>enhanced coalbed methane
recovery</term> means recovery of coalbed methane by injecting or flooding with
qualified carbon dioxide.</text>
</subparagraph><subparagraph id="ID81bba7a5313c4036befa1d383d67cc58"><enum>(D)</enum><header>Qualified
carbon dioxide</header><text>The term <term>qualified carbon dioxide</term>
means carbon dioxide which is produced from the gasification and subsequent
refinement of a feedstock which is primarily domestic coal, at a facility which
produces coal-to-liquid fuel.</text>
</subparagraph><subparagraph id="ID75a2319d781e424da09bc03db7bdd390"><enum>(E)</enum><header>Capture or
sequestration</header><text>The term <term>capture or sequestration</term>
means any equipment or facility necessary to—</text>
<clause id="IDd336ddab89bc4bf7b866eb5d80d46bbc"><enum>(i)</enum><text>capture or
separate qualified carbon dioxide from other emissions,</text>
</clause><clause id="IDe36147f38cff4083aa8cf2cd8caba1c7"><enum>(ii)</enum><text>transport
qualified carbon dioxide, or</text>
</clause><clause id="ID407ecc59c8f949fbad56fdc8388dc4be"><enum>(iii)</enum><text>process and use
qualified carbon dioxide in a qualified project.</text>
</clause></subparagraph></paragraph><paragraph id="IDc8d3c891a4a0470eab25ca161512d22d"><enum>(4)</enum><header>Termination</header><text>This
subsection shall not apply to costs paid or incurred for any qualified project
after December 31,
2020.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID40a767e6207f4c0dbddb235a6d9d5c78"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="IDedca35a2948b439896df87f2f88d4cee"><enum>(1)</enum><text>Section 43 of the
Internal Revenue Code of 1986 is amended—</text>
<subparagraph id="ID09624f26f569439c97ace4de657e2a28"><enum>(A)</enum><text>by striking
<quote>enhanced oil recovery credit</quote> in subsection (a) and inserting
<quote>enhanced oil, natural gas, and coalbed methane recovery, and capture and
sequestration credit</quote>,</text>
</subparagraph><subparagraph id="ID559e98b64f004253b81521a5f86c2af1"><enum>(B)</enum><text>by striking
<quote>qualified enhanced oil recovery costs</quote> each place it appears and
inserting <quote>qualified costs</quote>,</text>
</subparagraph><subparagraph id="ID6ce3efe333064e0783d996ab11450867"><enum>(C)</enum><text>by striking
<quote>qualified enhanced oil recovery project</quote> each place it appears
and inserting <quote>qualified project</quote>, and</text>
</subparagraph><subparagraph id="ID94f389fc7c6246b49319414a019687a9"><enum>(D)</enum><text>by striking the
heading and inserting:</text>
<quoted-block display-inline="no-display-inline" id="id4877C5D23EEB4BBCB6B85A3B05CFEFDC" style="OLC">
<section id="id57031EC8E2164D35BDC2D583AC549A01"><enum>43.</enum><header>Enhanced oil,
natural gas, and coalbed methane recovery, and capture and sequestration
credit</header>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="IDcd5089edc1b64af7b549e7e2f23c1d78"><enum>(2)</enum><text>The item in the
table of sections for subpart D of part IV of subchapter A of chapter 1 of such
Code relating to section 43 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id138C600C4FB6490C970B0FD13030DBE2" style="OLC">
<toc>
<toc-entry bold="off" level="section">Sec. 43. Enhanced oil. natural
gas, and coalbed methane recovery, and capture and sequestration
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID323edf24ac44437e8a1cbd94d4ec2442"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to costs
paid or incurred in taxable years ending after December 31, 2007.</text>
</subsection></section><section id="idAC2D76C2C77C4C658EADC3518E2C6DC9"><enum>205.</enum><header>Allowance of
enhanced oil, natural gas, and coalbed methane recovery, and capture and
sequestration credit against the alternative minimum tax</header>
<subsection id="IDe70682bf78e546aaad2fe9edd658c1b8"><enum>(a)</enum><header>In
general</header><text>Subsection (c) of section 38 of the Internal Revenue Code
of 1986 (relating to limitation based on amount of tax) is amended by
redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively,
and by inserting after paragraph (3) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id24725938DDA148BE9DF2F9539A01C3B3" style="OLC">
<paragraph id="IDdbfac036e4e546a697aca50903b80fbf"><enum>(4)</enum><header>Special rules
for enhanced oil, natural gas, and coalbed methane recovery, and capture and
sequestration credit</header><text>In the case of the enhanced oil, natural
gas, and coalbed methane recovery, and capture and sequestration credit
determined under section 43—</text>
<subparagraph id="ID912f9db7dfd847a2a6275ef6141e129b"><enum>(A)</enum><text>this section and
section 39 shall be applied separately with respect to such credit, and</text>
</subparagraph><subparagraph id="IDa8c41f0c226a4c60a91291dd5933c6d8"><enum>(B)</enum><text>in applying
paragraph (1) to such credit—</text>
<clause id="ID0fc3b3d945dd4a37acdac1c1b2a2b856"><enum>(i)</enum><text>the tentative
minimum tax shall be treated as being zero, and</text>
</clause><clause id="ID50566e0997b245e890e3d61c245096e7"><enum>(ii)</enum><text>the limitation
under paragraph (1) (as modified by clause (i)) shall be reduced by the credit
allowed under subsection (a) for the taxable year (other than the enhanced oil,
natural gas, and coalbed methane recovery, and capture and sequestration credit
and the specified
credits).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID7339fafd169843b1892710ebda1b1a37"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="id2C3934BFC0734587818EE67F1FA9FC6D"><enum>(1)</enum><text>Section
38(c)(2)(A)(ii)(II) of such Code is amended by inserting <quote>the enhanced
oil, natural gas, and coalbed methane recovery, and capture and sequestration
credit,</quote> after <quote>employee credit,</quote>.</text>
</paragraph><paragraph id="id156F8BD9F7064654A6D04DCC48BF3E51"><enum>(2)</enum><text>Section
38(c)(3)(A)(ii)(II) of such Code is amended by inserting <quote>, the enhanced
oil, natural gas, coalbed methane recovery, capture and sequestration
credit,</quote> after <quote>employee credit</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID9db04a1b92e2407190c4a80d21f0e587"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years ending after December 31, 2007.</text>
</subsection></section>