To provide further incentives for the commercialization of coal-to-liquid fuel activities.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Coal-to-Liquid Fuel Energy Act of 
2006''.

SEC. 2. DEFINITION.

    In this Act:
            (1) Coal-to-liquid fuel.--The term ``coal-to-liquid fuel'' 
        means any liquid fuel derived from coal through the Fischer-
        Tropsch process.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

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

    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 fuel facilities (as 
        defined in section 2 of the Coal-to-Liquid Fuel Energy Act of 
        2006).''.

SEC. 4. COAL-TO-LIQUID FUEL 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 fuel 
facility that will produce at least 10,000 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 fuel facility.
    (c) Application.--To be eligible to receive a loan under subsection 
(b), an owner or operator of a coal-to-liquid fuel 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 fuel 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), (d), (e), and (f), respectively; 
        and
            (2) by inserting after subsection (b) (as redesignated by 
        paragraph (1)) the following new subsection:
    ``(c) Study of Maintaining Coal-to-Liquid Fuel Products in 
Reserve.--Not later than 1 year after the date of enactment of the 
Coal-to-Liquid Fuel Energy Act of 2006, the Secretary shall--
            ``(1) conduct a study of the feasibility and suitability of 
        maintaining coal-to-liquid fuel 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.''.
    (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 fuel products (as defined in section 2 
        of the Coal-to-Liquid Fuel 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) 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)''.

SEC. 6. EXTENSION OF EXCISE TAX CREDITS FOR CERTAIN LIQUID FUEL DERIVED 
              FROM COAL.

    (a) Alternative Fuel Credit.--Paragraph (4) of section 6426(d) of 
the Internal Revenue Code of 1986 (relating to termination) is amended 
by inserting ``(December 31, 2020, in the case of any sale or use 
involving liquid fuel derived from coal which is described in paragraph 
(2)(E))'' before the period at the end.
    (b) Alternative Fuel Mixture Credit.--Paragraph (3) of section 
6426(e) of such Code (relating to termination) is amended by inserting 
``(December 31, 2020, in the case of any sale or use involving liquid 
fuel derived from coal which is described in subsection (d)(2)(E))'' 
before the period at the end.
    (c) Refundability of Credit.--Paragraph (5) of section 6427(e) of 
such Code (relating to termination) is amended--
            (1) by striking ``and'' at the end of subparagraph (C), by 
        striking the period at the end of subparagraph (D) and 
        inserting ``, and'', and by adding at the end the following new 
        subparagraph:
                    ``(E) any alternative fuel or alternative fuel 
                mixture (as so defined) involving liquid fuel derived 
                from coal which is described in section 6426(d)(2)(E) 
                sold or used after December 31, 2020.'', and
            (2) by inserting ``or (E)'' after ``subparagraph (D)'' in 
        subparagraph (C).
    (d) Effective Date.--The amendments made by this section shall 
apply to any sale or use for any period after September 30, 2006.

Summary: Coal-to-Liquid Fuel Energy Act of 2006 - Amends the Energy Policy Act of 2005 to include among the projects eligible for Department of Energy (DOE) loan guarantees large-scale coal-to-liquid fuel facilities that will produce at least 10,000 barrels a day of coal-to-liquid fuel. Instructs the Secretary of Energy to establish a federal loan program for use by eligible recipients pay the federal share of the cost of obtaining services necessary for the planning, permitting, and construction of a coal-to-liquid fuel 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 (SPR). Authorizes the Secretary to acquire, place in storage, transport, or exchange coal-to-liquid products, not to exceed 20 of the total quantity of petroleum products in the SPR. Amends the Internal Revenue Code to extend excise tax credits for certain alternative fuels and alternative fuel mixtures.