II 

109TH CONGRESS 

2D SESSION S. 3325 

To promote coal-to-liquid fuel activities. 

IN THE SENATE OF THE UNITED STATES 

MAY 26, 2006 

Mr. BUNNING (for himself, Mr. OBAMA, Mr. LUGAR, Mr. BURNS, and Mr. 

PRYOR) introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To promote coal-to-liquid fuel activities. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Coal-to-Liquid Fuel 

5 Promotion Act of 2006’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) COAL-TO-LIQUID.—The term ‘‘coal-to-liq9 uid’’ means— 

10 (A) with respect to a process or tech11 nology, the use of the coal resources of the 


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1 United States, using the class of chemical reac2 tions known as Fischer-Tropsch, to produce 

3 synthetic fuel suitable for transportation; and 

4 (B) with respect to a facility, the portion 

5 of a facility related to the Fischer-Tropsch 

6 process, Fischer-Tropsch finished fuel produc7 tion, or the capture, transportation, or seques8 tration of byproducts of the use of coal at the 

9 Fischer-Tropsch facility, including carbon emis10 sions. 

11 (2) SECRETARY.—The term ‘‘Secretary’’ means 

12 the Secretary of Energy. 

13 SEC. 3. COAL-TO-LIQUID FUEL LOAN GUARANTEE PRO14 GRAM. 

15 (a) ELIGIBLE PROJECTS.—Section 1703(b) of the 

16 Energy Policy Act of 2005 (42 U.S.C. 16513(b)) is 

17 amended by adding at the end the following: 

18 ‘‘(11) Large-scale coal-to-liquid facilities (as de19 fined in section 2 of the Coal-to-Liquid Fuel Pro20 motion Act of 2006), that use coal resources of the 

21 United States to produce not less than 10,000 bar22 rels a day of liquid transportation fuel.’’. 

23 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

24 1704 of the Energy Policy Act of 2005 (42 U.S.C. 16514) 

25 is amended by adding at the end the following: 


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1 ‘‘(c) COAL-TO-LIQUID PROJECTS.— 

2 ‘‘(1) IN GENERAL.—There are authorized to be 

3 appropriated such sums as are necessary to provide 

4 the cost of guarantees for projects involving large5 scale coal-to-liquid facilities under section 

6 1703(b)(11). 

7 ‘‘(2) LIMITATIONS.— 

8 ‘‘(A) IN GENERAL.—No loan guarantees 

9 shall be provided under this title for projects 

10 described in paragraph (1) after (as determined 

11 by the Secretary)— 

12 ‘‘(i) the tenth such loan guarantee is 

13 issued under this title; or 

14 ‘‘(ii) production capacity covered by 

15 such loan guarantees reaches 100,000 bar16 rels per day of coal-to-liquid fuel. 

17 ‘‘(B) INDIVIDUAL PROJECTS.— 

18 ‘‘(i) IN GENERAL.—A loan guarantee 

19 may be provided under this title for any 

20 large-scale coal-to-liquid facility described 

21 in paragraph (1) that produces no more 

22 than 20,000 barrels of coal-to-liquid fuel 

23 per day. 

24 ‘‘(ii) NON-FEDERAL FUNDING RE25 QUIREMENT.—To be eligible for a loan 


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1 guarantee under this title, a large-scale 

2 coal-to-liquid facility described in para3 graph (1) that produces more than 20,000 

4 barrels of coal-to-liquid fuel per day shall 

5 be required to provide non-Federal funding 

6 for the proportional cost of the loan guar7 antee for production that exceeds 20,000 

8 barrels of coal-to-liquid fuel per day.’’. 

9 SEC. 4. COAL-TO-LIQUID FACILITIES LOAN PROGRAM. 

10 (a) DEFINITION OF ELIGIBLE RECIPIENT.—In this 

11 section, the term ‘‘eligible recipient’’ means an individual, 

12 organization, or other entity that owns, operates, or plans 

13 to construct a coal-to-liquid facility that will produce at 

14 least 10,000 barrels per day of coal-to-liquid fuel. 

15 (b) ESTABLISHMENT.—The Secretary shall establish 

16 a program under which the Secretary shall provide loans, 

17 in a total amount not to exceed $20,000,000, for use by 

18 eligible recipients to pay the Federal share of the cost of 

19 obtaining any services necessary for the planning, permit20 ting, and construction of a coal-to-liquid facility. 

21 (c) APPLICATION.—To be eligible to receive a loan 

22 under subsection (b), an owner or operator of a coal-to23 liquid facility shall submit to the Secretary an application 

24 at such time, in such manner, and containing such infor25 mation as the Secretary may require. 


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1 (d) NON-FEDERAL MATCH.—To be eligible to receive 

2 a loan under this section, an eligible recipient shall use 

3 non-Federal funds to provide a dollar-for-dollar match of 

4 the amount of the loan. 

5 (e) REPAYMENT OF LOAN.— 

6 (1) IN GENERAL.—To be eligible to receive a 

7 loan under this section, an eligible recipient shall 

8 agree to repay the original amount of the loan to the 

9 Secretary not later than 5 years after the date of the 

10 receipt of the loan. 

11 (2) SOURCE OF FUNDS.—Repayment of a loan 

12 under paragraph (1) may be made from any financ13 ing or assistance received for the construction of a 

14 coal-to-liquid facility described in subsection (a), in15 cluding a loan guarantee provided under section 

16 1703(b)(11) of the Energy Policy Act of 2005 (42 

17 U.S.C. 16513(b)(11)). 

18 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

19 authorized to be appropriated to carry out this section 

20 $200,000,000, to remain available until expended. 

21 SEC. 5. LOCATION OF COAL-TO-LIQUID MANUFACTURING 

22 FACILITIES. 

23 The Secretary, in coordination with the head of any 

24 affected agency, shall promulgate such regulations as the 

25 Secretary determines to be necessary to support the develVerDate Aug 31 2005 22:56 Jun 01, 2006 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3325.IS S3325

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1 opment on Federal land (including land of the Department 

2 of Energy, military bases, and military installations closed 

3 or realigned under the defense base closure and realign4 ment) of coal-to-liquid manufacturing facilities and associ5 ated infrastructure, including the capture, transportation, 

6 or sequestration of carbon dioxide. 

7 SEC. 6. CREDIT FOR INVESTMENT IN COAL-TO-LIQUID 

8 FUELS PROJECTS. 

9 (a) IN GENERAL.—Section 46 of the Internal Rev10 enue Code of 1986 (relating to amount of credit) is 

11 amended by striking ‘‘and’’ at the end of paragraph (3), 

12 by striking the period at the end of paragraph (4) and 

13 inserting ‘‘, and’’, and by adding at the end the following 

14 new paragraph: 

15 ‘‘(5) the qualifying coal-to-liquid fuels project 

16 credit.’’. 

17 (b) AMOUNT OF CREDIT.—Subpart E of part IV of 

18 subchapter A of chapter 1 of the Internal Revenue Code 

19 of 1986 (relating to rules for computing investment credit) 

20 is amended by inserting after section 48B the following 

21 new section: 

22 ‘‘SEC. 48C. QUALIFYING COAL-TO-LIQUID FUELS PROJECT 

23 CREDIT. 

24 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

25 qualifying coal-to-liquid fuels project credit for any taxable 


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1 year is an amount equal to 20 percent of the qualified 

2 investment for such taxable year. 

3 ‘‘(b) QUALIFIED INVESTMENT.— 

4 ‘‘(1) IN GENERAL.—For purposes of subsection 

5 (a), the qualified investment for any taxable year is 

6 the basis of property placed in service by the tax7 payer during such taxable year which is part of a 

8 qualifying coal-to-liquid fuels project— 

9 ‘‘(A)(i) the construction, reconstruction, or 

10 erection of which is completed by the taxpayer, 

11 or 

12 ‘‘(ii) which is acquired by the taxpayer if 

13 the original use of such property commences 

14 with the taxpayer, and 

15 ‘‘(B) with respect to which depreciation (or 

16 amortization in lieu of depreciation) is allow17 able. 

18 ‘‘(2) APPLICABLE RULES.—For purposes of this 

19 section, rules similar to the rules of subsection 

20 (a)(4) and (b) of section 48 shall apply. 

21 ‘‘(c) DEFINITIONS.—For purposes of this section— 

22 ‘‘(1) QUALIFYING COAL-TO-LIQUID FUELS

23 PROJECT.—The term ‘qualifying coal-to-liquid fuels 

24 project’ means any domestic project which— 


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1 ‘‘(A) employs the Fischer-Tropsch process 

2 to produce at least 10,000 barrels per day of 

3 transportation grade liquid fuels from coal (in4 cluding any property which allows for the cap5 ture, transportation, or sequestration of by6 products resulting from such process, including 

7 carbon emissions), and 

8 ‘‘(B) any portion of the qualified invest9 ment in which is certified under the qualifying 

10 coal-to-liquid program as eligible for credit 

11 under this section in an amount (not to exceed 

12 $200,000,000) determined by the Secretary. 

13 ‘‘(2) COAL.—The term ‘coal’ means any carbon14 ized or semicarbonized matter, including peat. 

15 ‘‘(d) QUALIFYING COAL-TO-LIQUID FUELS PROJECT

16 PROGRAM.— 

17 ‘‘(1) IN GENERAL.—The Secretary, in consulta18 tion with the Secretary of Energy, shall establish a 

19 qualifying coal-to-liquid fuels project program to 

20 consider and award certifications for qualified in21 vestment eligible for credits under this section to 10 

22 qualifying coal-to-liquid fuels project sponsors under 

23 this section. The total qualified investment which 

24 may be awarded eligibility for credit under the pro25 gram shall not exceed $2,000,000,000. 


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1 ‘‘(2) PERIOD OF ISSUANCE.—A certificate of 

2 eligibility under paragraph (1) may be issued only 

3 during the 10-fiscal year period beginning on Octo4 ber 1, 2006. 

5 ‘‘(3) SELECTION CRITERIA.—The Secretary 

6 shall not make a competitive certification award for 

7 qualified investment for credit eligibility under this 

8 section unless the recipient has documented to the 

9 satisfaction of the Secretary that— 

10 ‘‘(A) the award recipient is financially via11 ble without the receipt of additional Federal 

12 funding associated with the proposed project, 

13 ‘‘(B) the recipient will provide sufficient 

14 information to the Secretary for the Secretary 

15 to ensure that the qualified investment is spent 

16 efficiently and effectively, 

17 ‘‘(C) a market exists for the products of 

18 the proposed project as evidenced by contracts 

19 or written statements of intent from potential 

20 customers, 

21 ‘‘(D) the fuels identified with respect to 

22 the gasification technology for such project will 

23 comprise at least 90 percent of the fuels re24 quired by the project for the production of 

25 transportation grade liquid fuels, 


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1 ‘‘(E) the award recipient’s project team is 

2 competent in the construction and operation of 

3 the Fischer-Tropsch process, with preference 

4 given to those recipients with experience which 

5 demonstrates successful and reliable operations 

6 of such process, and 

7 ‘‘(F) the award recipient has met other cri8 teria established and published by the Sec9 retary. 

10 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—No deduction 

11 or other credit shall be allowed with respect to the basis 

12 of any property taken into account in determining the 

13 credit allowed under this section.’’. 

14 (c) CONFORMING AMENDMENTS.— 

15 (1) Section 49(a)(1)(C) of the Internal Revenue 

16 Code of 1986 is amended by striking ‘‘and’’ at the 

17 end of clause (iii), by striking the period at the end 

18 of clause (iv) and inserting ‘‘, and’’, and by adding 

19 after clause (iv) the following new clause: 

20 ‘‘(v) the basis of any property which 

21 is part of a qualifying coal-to-liquid fuels 

22 project under section 48C.’’. 

23 (2) The table of sections for subpart E of part 

24 IV of subchapter A of chapter 1 of such Code is 


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1 amended by inserting after the item relating to sec2 tion 48B the following new item: 

‘‘48C. Qualifying coal-to-liquid fuels project credit.’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to periods after the date of the 

5 enactment of this Act, under rules similar to the rules of 

6 section 48(m) of the Internal Revenue Code of 1986 (as 

7 in effect on the day before the date of the enactment of 

8 the Revenue Reconciliation Act of 1990). 

9 SEC. 7. TEMPORARY EXPENSING FOR EQUIPMENT USED IN 

10 COAL-TO-LIQUID FUELS PROCESS. 

11 (a) IN GENERAL.—Part VI of subchapter B of chap12 ter 1 of the Internal Revenue Code of 1986 is amended 

13 by inserting after section 179D the following new section: 

14 ‘‘SEC. 179E. ELECTION TO EXPENSE CERTAIN COAL-TO-LIQ15 UID FUELS FACILITIES. 

16 ‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may 

17 elect to treat the cost of any qualified coal-to-liquid fuels 

18 process property as an expense which is not chargeable 

19 to capital account. Any cost so treated shall be allowed 

20 as a deduction for the taxable year in which the expense 

21 is incurred. 

22 ‘‘(b) ELECTION.— 

23 ‘‘(1) IN GENERAL.—An election under this sec24 tion for any taxable year shall be made on the tax25 payer’s return of the tax imposed by this chapter for 


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1 the taxable year. Such election shall be made in such 

2 manner as the Secretary may by regulations pre3 scribe. 

4 ‘‘(2) ELECTION IRREVOCABLE.—Any election 

5 made under this section may not be revoked except 

6 with the consent of the Secretary. 

7 ‘‘(c) QUALIFIED COAL-TO-LIQUID FUELS PROCESS

8 PROPERTY.—The term ‘qualified coal-to-liquid fuels proc9 ess property’ means any property located in the United 

10 States— 

11 ‘‘(1) which employs the Fischer-Tropsch process 

12 to produce transportation grade liquid fuels from 

13 coal (including any property which allows for the 

14 capture, transportation, or sequestration of by-prod15 ucts resulting from such process, including carbon 

16 emissions), 

17 ‘‘(2) the original use of which commences with 

18 the taxpayer, 

19 ‘‘(3) the construction of which— 

20 ‘‘(A) except as provided in subparagraph 

21 (B), is subject to a binding construction con22 tract entered into after the date of the enact23 ment of this section and before January 1, 

24 2011, but only if there was no written binding 


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1 construction contract entered into on or before 

2 such date of enactment, or 

3 ‘‘(B) in the case of self-constructed prop4 erty, began after the date of the enactment of 

5 this section and before January 1, 2011, and 

6 ‘‘(4) which is placed in service by the taxpayer 

7 after the date of the enactment of this section and 

8 before January 1, 2016. 

9 ‘‘(d) ELECTION TO ALLOCATE DEDUCTION TO COOP10 ERATIVE OWNER.—If— 

11 ‘‘(1) a taxpayer to which subsection (a) applies 

12 is an organization to which part I of subchapter T 

13 applies, and 

14 ‘‘(2) one or more persons directly holding an 

15 ownership interest in the taxpayer are organizations 

16 to which part I of subchapter T apply, 

17 the taxpayer may elect to allocate all or a portion of the 

18 deduction allowable under subsection (a) to such persons. 

19 Such allocation shall be equal to the person’s ratable share 

20 of the total amount allocated, determined on the basis of 

21 the person’s ownership interest in the taxpayer. The tax22 able income of the taxpayer shall not be reduced under 

23 section 1382 by reason of any amount to which the pre24 ceding sentence applies. 

25 ‘‘(e) BASIS REDUCTION.— 


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1 ‘‘(1) IN GENERAL.—For purposes of this title, 

2 if a deduction is allowed under this section with re3 spect to any qualified coal-to-liquid fuels process 

4 property, the basis of such property shall be reduced 

5 by the amount of the deduction so allowed. 

6 ‘‘(2) ORDINARY INCOME RECAPTURE.—For 

7 purposes of section 1245, the amount of the deduc8 tion allowable under subsection (a) with respect to 

9 any property which is of a character subject to the 

10 allowance for depreciation shall be treated as a de11 duction allowed for depreciation under section 167. 

12 ‘‘(f) APPLICATION WITH OTHER DEDUCTIONS AND

13 CREDITS.— 

14 ‘‘(1) OTHER DEDUCTIONS.—No deduction shall 

15 be allowed under any other provision of this chapter 

16 with respect to any expenditure with respect to 

17 which a deduction is allowed under subsection (a) to 

18 the taxpayer. 

19 ‘‘(2) CREDITS.—No credit shall be allowed 

20 under section 38 with respect to any amount for 

21 which a deduction is allowed under subsection (a). 

22 ‘‘(g) REPORTING.—No deduction shall be allowed 

23 under subsection (a) to any taxpayer for any taxable year 

24 unless such taxpayer files with the Secretary a report con25 taining such information with respect to the operation of 


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1 the property of the taxpayer as the Secretary shall re2 quire.’’. 

3 (b) CONFORMING AMENDMENTS.— 

4 (1) Section 1016(a) of the Internal Revenue 

5 Code of 1986 is amended by striking ‘‘and’’ at the 

6 end of paragraph (36), by striking the period at the 

7 end of paragraph (37) and inserting ‘‘, and’’, and by 

8 adding at the end the following new paragraph: 

9 ‘‘(38) to the extent provided in section 

10 179E(e)(1).’’. 

11 (2) Section 1245(a) of such Code is amended 

12 by inserting ‘‘179E,’’ after ‘‘179D,’’ both places it 

13 appears in paragraphs (2)(C) and (3)(C). 

14 (3) Section 263(a)(1) of such Code is amended 

15 by striking ‘‘or’’ at the end of subparagraph (J), by 

16 striking the period at the end of subparagraph (K) 

17 and inserting ‘‘, or’’, and by inserting after subpara18 graph (K) the following new subparagraph: 

19 ‘‘(L) expenditures for which a deduction is 

20 allowed under section 179E.’’. 

21 (4) Section 312(k)(3)(B) of such Code is 

22 amended by striking ‘‘or 179D’’ each place it ap23 pears in the heading and text and inserting ‘‘179D, 

24 or 179E’’. 


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1 (5) The table of sections for part VI of sub2 chapter B of chapter 1 of such Code is amended by 

3 inserting after the item relating to section 179D the 

4 following new item: 

‘‘Sec. 179E. Election to expense certain coal-to-liquid fuels facilities.’’. 

5 (c) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to properties placed in service after 

7 the date of the enactment of this Act. 

8 SEC. 8. EXTENSION OF ALTERNATIVE FUEL CREDIT FOR 

9 FUEL DERIVED FROM COAL THROUGH THE 

10 FISCHER-TROPSCH PROCESS. 

11 (a) ALTERNATIVE FUEL CREDIT.—Paragraph (4) of 

12 section 6426(d) of the Internal Revenue Code of 1986 is 

13 amended to read as follows: 

14 ‘‘(4) TERMINATION.—This subsection shall not 

15 apply to— 

16 ‘‘(A) any sale or use involving liquid fuel 

17 derived from coal (including peat) through the 

18 Fischer-Tropsch process for any period after 

19 September 30, 2020, 

20 ‘‘(B) any sale or use involving liquified hy21 drogen for any period after September 30, 

22 2014, and 

23 ‘‘(C) any other sale or use for any period 

24 after September 30, 2009.’’. 

25 (b) PAYMENTS.— 


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1 (1) IN GENERAL.—Paragraph (5) of section 

2 6427(e) of the Internal Revenue Code of 1986 is 

3 amended by striking ‘‘and’’ and the end of subpara4 graph (C), by striking the period at the end of sub5 paragraph (D) and inserting ‘‘, and’’, and by adding 

6 at the end the following new subparagraph: 

7 ‘‘(E) any alternative fuel or alternative fuel 

8 mixture (as so defined) involving liquid fuel de9 rived from coal (including peat) through the 

10 Fischer-Tropsch process sold or used after Sep11 tember 30, 2020.’’. 

12 (2) CONFORMING AMENDMENT.—Section 

13 6427(e)(5)(C) of such Code is amended by striking 

14 ‘‘subparagraph (D)’’ and inserting ‘‘subparagraphs 

15 (D) and (E)’’. 

16 SEC. 9. STRATEGIC PETROLEUM RESERVE. 

17 (a) DEVELOPMENT, OPERATION, AND MAINTENANCE

18 OF RESERVE.—Section 159 of the Energy Policy and Con19 servation Act (42 U.S.C. 6239) is amended— 

20 (1) by redesignating subsections (f), (g), (j), 

21 (k), and (l) as subsections (a), (b), (e), (f), and (g), 

22 respectively; and 

23 (2) by inserting after subsection (b) (as redesig24 nated by paragraph (1)) the following: 


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1 ‘‘(c) STUDY OF MAINTAINING COAL-TO-LIQUID

2 PRODUCTS IN RESERVE.—Not later than 1 year after the 

3 date of enactment of the Coal-to-Liquid Fuel Promotion 

4 Act of 2006, the Secretary and the Secretary of Defense 

5 shall— 

6 ‘‘(1) conduct a study of the feasibility and suit7 ability of maintaining coal-to-liquid products in the 

8 Reserve; and 

9 ‘‘(2) submit to the Committee on Energy and 

10 Natural Resources and the Committee on Armed 

11 Services of the Senate and the Committee on Energy 

12 and Commerce and the Committee on Armed Serv13 ices of the House of Representatives a report de14 scribing the results of the study. 

15 ‘‘(d) CONSTRUCTION OF STORAGE FACILITIES.—As 

16 soon as practicable after the date of enactment of the 

17 Coal-to-Liquid Fuel Promotion Act of 2006, the Secretary 

18 may construct 1 or more storage facilities— 

19 ‘‘(1) in the vicinity of pipeline infrastructure 

20 and at least 1 military base; but 

21 ‘‘(2) outside the boundaries of any State on the 

22 coast of the Gulf of Mexico.’’. 

23 (b) PETROLEUM PRODUCTS FOR STORAGE IN RE24 SERVE.—Section 160 of the Energy Policy and Conserva25 tion Act (42 U.S.C. 6240) is amended— 


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1 (1) in subsection (a)— 

2 (A) in paragraph (1), by inserting a semi3 colon at the end; 

4 (B) in paragraph (2), by striking ‘‘and’’ at 

5 the end; 

6 (C) in paragraph (3), by striking the pe7 riod at the end and inserting ‘‘; and’’; and 

8 (D) by adding at the end the following: 

9 ‘‘(4) coal-to-liquid products (as defined in sec10 tion 2 of the Coal-to-Liquid Fuel Promotion Act of 

11 2006), as the Secretary determines to be appro12 priate, in a quantity not to exceed 20 percent of the 

13 total quantity of petroleum products in the Re14 serve.’’; 

15 (2) in subsection (b), by redesignating para16 graphs (3) through (5) as paragraphs (2) through 

17 (4), respectively; and 

18 (3) by redesignating subsections (f) and (h) as 

19 subsections (d) and (e), respectively. 

20 (c) CONFORMING AMENDMENTS.—Section 167 of the 

21 Energy Policy and Conservation Act (42 U.S.C. 6247) is 

22 amended— 

23 (1) in subsection (b)— 

24 (A) by redesignating paragraphs (2) and 

25 (3) as paragraphs (1) and (2), respectively; and 


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1 (B) in paragraph (2) (as redesignated by 

2 subparagraph (A)), by striking ‘‘section 160(f)’’ 

3 and inserting ‘‘section 160(e)’’; and 

4 (2) in subsection (d), in the matter preceding 

5 paragraph (1), by striking ‘‘section 160(f)’’ and in6 serting ‘‘section 160(e)’’. 

7 SEC. 10. AUTHORIZATION TO CONDUCT RESEARCH, DEVEL8 OPMENT, TESTING, AND EVALUATION OF AS9 SURED DOMESTIC FUELS. 

10 Of the amount authorized to be appropriated for the 

11 Air Force for research, development, testing, and evalua12 tion, $10,000,000 may be made available for the Air Force 

13 Research Laboratory to continue support efforts to test, 

14 qualify, and procure synthetic fuels developed from coal 

15 for aviation jet use. 

16 SEC. 11. PROCUREMENT OF UNCONVENTIONAL FUELS BY 

17 THE DEPARTMENT OF DEFENSE. 

18 Section 2398a of title 10, United States Code, is 

19 amended— 

20 (1) in subsection (b)— 

21 (A) by striking ‘‘The Secretary’’ and in22 serting the following: 

23 ‘‘(1) IN GENERAL.—The Secretary’’; and 

24 (B) by adding at the end the following: 


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1 ‘‘(2) COAL-TO-LIQUID PRODUCTION FACILI2 TIES.— 

3 ‘‘(A) IN GENERAL.—The Secretary of De4 fense may enter into contracts or other agree5 ments with private companies or other entities 

6 to develop and operate coal-to-liquid facilities 

7 (as defined in section 2 of the Coal-to-Liquid 

8 Fuel Promotion Act of 2006) on or near mili9 tary installations. 

10 ‘‘(B) CONSIDERATIONS.—In entering into 

11 contracts and other agreements under subpara12 graph (A), the Secretary shall consider land 

13 availability, testing opportunities, and proximity 

14 to raw materials.’’; 

15 (2) in subsection (d), by striking ‘‘1 or more 

16 years’’ and inserting ‘‘up to 25 years’’; and 

17 (3) by adding at the end the following: 

18 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 

19 are authorized to be appropriated such sums as are nec20 essary to carry out this section.’’. 

Æ 


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