To promote coal-to-liquid fuel activities.

Summary: Alternative Liquid Transportation Fuel Promotion Act of 2006 - Amends the Energy Policy Act of 2005 to declare eligible for a federal loan guarantee commitment large-scale coal-to-liquid facilities that use coal resources of the United States to produce at least 5,000 barrels a day of liquid transportation fuel.

Directs the Secretary of Energy to establish a federal loan program 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.

Amends the Energy Policy and Conservation Act to direct the Secretary to study and report to certain congressional committees on the feasibility and suitability of maintaining coal-to-liquid products in the Strategic Petroleum Reserve.

Authorizes the Secretary to construct or lease storage facilities in the vicinity of pipeline infrastructure and at least one military base, but outside the boundaries of any state on the coast of the Gulf of Mexico.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Alternative Liquid Transportation 
Fuel Promotion Act of 2006''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Biomass.--The term ``biomass'' means any organic 
        material other than oil and natural gas (or any product 
        thereof).
            (2) Coal.--The term ``coal'' means any carbonized or 
        semicarbonized matter, including peat and biomass.
            (3) Coal-to-liquid.--The term ``coal-to-liquid'' means--
                    (A) with respect to a process or technology, the 
                use of 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 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.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 3. COAL-TO-LIQUID FUEL LOAN GUARANTEE PROGRAM.

    (a) Eligible Projects.--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 Alternative Liquid Transportation Fuel 
        Promotion Act of 2006), that use coal resources of the United 
        States to produce not less than 5,000 barrels a day of liquid 
        transportation fuel.''.
    (b) Authorization of Appropriations.--Section 1704 of the Energy 
Policy Act of 2005 (42 U.S.C. 16514) is amended by adding at the end 
the following:
    ``(c) Coal-to-Liquid Projects.--
            ``(1) In general.--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) Limitations.--
                    ``(A) In general.--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) Individual projects.--
                            ``(i) In general.--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 requirement.--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 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.''.

SEC. 4. COAL-TO-LIQUID 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 
facility that will produce at least 5,000 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 facility.
    (c) Application.--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) 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 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.

SEC. 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), (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 Reserve.--Not 
later than 1 year after the date of enactment of the Alternative Liquid 
Transportation Fuel Promotion Act of 2006, the Secretary 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 of the Senate and the Committee on Energy and 
        Commerce of the House of Representatives a report describing 
        the results of the study.
    ``(d) Construction or Lease of Storage Facilities.--As soon as 
practicable after the date of enactment of the Alternative Liquid 
Transportation Fuel Promotion Act of 2006, the Secretary may construct 
or lease 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 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 products (as defined in section 2 of 
        the Alternative Liquid Transportation Fuel Promotion 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)''.