II 

110TH CONGRESS 

1ST SESSION S. 1443 

To provide standards for renewable fuels and coal-derived fuels. 

IN THE SENATE OF THE UNITED STATES 

MAY 21, 2007 

Mr. THOMAS (for himself and Mr. BUNNING) introduced the following bill; 

which was read twice and referred to the Committee on Energy and Natural Resources 

A BILL 

To provide standards for renewable fuels and coal-derived 

fuels. 

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 ‘‘Clean, Affordable, and 

5 Domestic Fuels for Energy Security Act of 2007’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) ADVANCED BIOFUEL.— 

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1 (A) IN GENERAL.—The term ‘‘advanced 

2 biofuel’’ means fuel derived from renewable bio3 mass other than corn starch. 

4 (B) INCLUSIONS.—The term ‘‘advanced 

5 biofuel’’ includes— 

6 (i) ethanol derived from cellulose, 

7 hemicellulose, or lignin; 

8 (ii) ethanol derived from sugar or 

9 starch, other than ethanol derived from 

10 corn starch; 

11 (iii) ethanol derived from waste mate12 rial, including crop residue, other vegeta13 tive waste material, animal waste, and food 

14 waste and yard waste; 

15 (iv) diesel-equivalent fuel derived from 

16 renewable biomass, including vegetable oil 

17 and animal fat; 

18 (v) biogas produced through the con19 version of organic matter from renewable 

20 biomass; and 

21 (vi) butanol or higher alcohols pro22 duced through the conversion of organic 

23 matter from renewable biomass. 

24 (2) COAL-DERIVED FUEL.—The term ‘‘coal-de25 rived fuel’’ means fuel derived from coal that is— 

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1 (A) extracted by mining or in-situ methods 

2 in the United States; and 

3 (B) refined or otherwise processed at facili4 ties located in the United States that are capa5 ble of capturing carbon dioxide emissions. 

6 (3) CONVENTIONAL BIOFUEL.—The term ‘‘con7 ventional biofuel’’ means ethanol derived from corn 

8 starch. 

9 (4) COVERED FUEL.—The term ‘‘covered fuel’’ 

10 means— 

11 (A) aviation fuel; 

12 (B) motor vehicle fuel; 

13 (C) home heating oil; and 

14 (D) boiler fuel. 

15 (5) GREENHOUSE GAS.—The term ‘‘greenhouse 

16 gas’’ means any of— 

17 (A) carbon dioxide; 

18 (B) methane; 

19 (C) nitrous oxide; 

20 (D) hydrofluorocarbons; 

21 (E) perfluorocarbons; and 

22 (F) sulfur hexafluoride. 

23 (6) GREENHOUSE GAS EMISSION STANDARD.— 

24 The term ‘‘greenhouse gas emission standard’’ 

25 means a comprehensive measurement of the level of 

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1 greenhouse gases emitted by a fuel, as calculated 

2 during the period beginning with the acquisition of 

3 feedstock by a refinery, blender, or importer of the 

4 fuel and continuing through manufacture, transpor5 tation, and use of the fuel in a motor vehicle, air6 craft, boiler, or furnace. 

7 (7) RENEWABLE BIOMASS.—The term ‘‘renew8 able biomass’’ means— 

9 (A) biomass (as defined by section 210 of 

10 the Energy Policy Act of 2005 (42 U.S.C. 

11 15855)) that is harvested where permitted by 

12 law and in accordance with applicable land 

13 management plans from— 

14 (i) National Forest System land; or 

15 (ii) public lands (as defined in section 

16 103 of the Federal Land Policy and Man17 agement Act of 1976 (43 U.S.C. 1702)); 

18 or 

19 (B) any organic matter that is available on 

20 a renewable or recurring basis from non-Fed21 eral land or from land belonging to an Indian 

22 tribe, or an Indian individual, that is held in 

23 trust by the United States or subject to a re24 striction against alienation imposed by the 

25 United States, including— 

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1 (i) renewable plant material, includ2 ing— 

3 (I) feed grains; 

4 (II) other agricultural commod5 ities; 

6 (III) other plants and trees; and 

7 (IV) algae; and 

8 (ii) waste material, including— 

9 (I) crop residue; 

10 (II) other vegetative waste mate11 rial (including wood waste and wood 

12 residues); 

13 (III) animal waste and byprod14 ucts (including fats, oils, greases, and 

15 manure); and 

16 (IV) food waste and yard waste. 

17 (8) RENEWABLE FUEL.— 

18 (A) IN GENERAL.—The term ‘‘renewable 

19 fuel’’ means motor vehicle fuel, boiler fuel, or 

20 home heating fuel that is— 

21 (i) produced from renewable biomass; 

22 and 

23 (ii) used to replace or reduce the 

24 quantity of fossil fuel present in a fuel or 

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1 fuel mixture used to operate a motor vehi2 cle, boiler, or furnace. 

3 (B) INCLUSION.—The term ‘‘renewable 

4 fuel’’ includes— 

5 (i) conventional biofuel; and 

6 (ii) advanced biofuel. 

7 (9) SECRETARY.—The term ‘‘Secretary’’ means 

8 the Secretary of Energy. 

9 (10) SMALL REFINERY.—The term ‘‘small re10 finery’’ means a refinery for which the average ag11 gregate daily crude oil throughput for a calendar 

12 year (as determined by dividing the aggregate 

13 throughput for the calendar year by the number of 

14 days in the calendar year) does not exceed 75,000 

15 barrels. 

16 SEC. 3. CLEAN, AFFORDABLE, AND DOMESTIC FUEL PRO17 GRAM. 

18 (a) PROGRAM.— 

19 (1) IN GENERAL.—Not later than 1 year after 

20 the date of enactment of this Act, the President 

21 shall promulgate regulations to ensure that covered 

22 fuel sold or introduced into commerce in the United 

23 States (except in noncontiguous States or terri24 tories), on an annual average basis, contains the apVerDate Aug 31 2005 04:33 May 22, 2007 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1443.IS S1443
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1 plicable volume of coal-derived fuel determined in ac2 cordance with paragraph (4). 

3 (2) PROVISIONS OF REGULATIONS.—Regardless 

4 of the date of promulgation, the regulations promul5 gated under paragraph (1)— 

6 (A) shall contain compliance provisions ap7 plicable to refineries, blenders, distributors, and 

8 importers, as appropriate, to ensure that the re9 quirements of this subsection are met; but 

10 (B) shall not— 

11 (i) restrict geographic areas in the 

12 contiguous United States in which coal-de13 rived fuel may be used; or 

14 (ii) impose any per-gallon obligation 

15 for the use of coal-derived fuel. 

16 (3) GREENHOUSE GAS EMISSION STANDARD.— 

17 (A) LIMITATION.—No coal-derived fuel 

18 shall be included in the applicable volume estab19 lished under paragraph (4), or satisfy the coal20 derived fuel obligation for refineries, blenders, 

21 and importers under subsection (b)(2)(B), un22 less the coal-derived fuel meets the greenhouse 

23 gas emissions level requirement for coal-derived 

24 fuel under subparagraph (C). 

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1 (B) REDUCTION OF GREENHOUSE GAS

2 EMISSIONS LEVEL.—The greenhouse gas emis3 sions level shall be reduced by the sum of, as 

4 applicable— 

5 (i) the quantity of greenhouse gases 

6 absorbed in the production of any renew7 able biomass used in the production of the 

8 coal-derived fuel; and 

9 (ii) the quantity of greenhouse gases 

10 produced during the production of the 

11 coal-derived fuel that are sequestered. 

12 (C) GREENHOUSE GAS EMISSIONS LEVEL

13 OF COAL-DERIVED FUEL.— 

14 (i) IN GENERAL.—The greenhouse gas 

15 emissions level for coal-derived fuel, as ad16 justed under clause (ii), shall not exceed 

17 the greenhouse gas emissions level for the 

18 same quantity of covered fuel, as applica19 ble. 

20 (ii) ADJUSTMENT.—The greenhouse 

21 gas emissions level for coal-derived fuel 

22 shall be adjusted by the product of— 

23 (I) the greenhouse gas emissions 

24 level; and 

25 (II) the ratio that— 

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1 (aa) the number of British 

2 thermal units of energy produced 

3 by the combustion of 1 gallon of 

4 covered fuel, as applicable (as 

5 measured under conditions deter6 mined by the Secretary); bears to 

7 (bb) the number of British 

8 thermal units of energy produced 

9 by the combustion of 1 gallon of 

10 the coal-derived fuel (as meas11 ured under conditions determined 

12 by the Secretary to be com13 parable to conditions for meas14 uring the energy produced by 

15 covered fuel, as applicable). 

16 (D) FUEL PRODUCTION EMISSIONS LEVEL

17 OF COVERED FUELS.—The greenhouse gas 

18 emissions level of covered fuel, as applicable, 

19 shall be based on fuels that do not contain re20 newable fuels. 

21 (4) APPLICABLE VOLUME.— 

22 (A) CALENDAR YEARS 2016 THROUGH

23 2022.—For the purpose of this subsection, the 

24 applicable volume for any of calendar years 

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1 2016 through 2022 shall be determined in ac2 cordance with the following table: 

Applicable volume of coalderived fuels 

Calendar year: (in billions of gallons): 

2016 ......................................................................................... 3.0

2017 ......................................................................................... 6.0

2018 ......................................................................................... 9.0

2019 ......................................................................................... 12.0

2020 ......................................................................................... 15.0

2021 ......................................................................................... 18.0

2022 ......................................................................................... 21.0. 

3 (B) CALENDAR YEAR 2023 AND THERE4 AFTER.—Subject to subparagraph (C), for the 

5 purposes of this subsection, the applicable vol6 ume for calendar year 2023 and each calendar 

7 year thereafter shall be determined by the 

8 President, in coordination with the Secretary 

9 and the Administrator of the Environmental 

10 Protection Agency, based on a review of the im11 plementation of the program during calendar 

12 years 2016 through 2022, including a review 

13 of— 

14 (i) the impact of coal-derived fuels on 

15 the energy security of the United States; 

16 (ii) the expected annual rate of future 

17 production of coal-derived fuels; and 

18 (iii) the impact of the use of coal-de19 rived fuels on other factors, including job 

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1 creation, rural economic development, and 

2 the environment. 

3 (C) MINIMUM APPLICABLE VOLUME.—For 

4 the purpose of this subsection, the applicable 

5 volume for calendar year 2023 and each cal6 endar year thereafter shall be equal to the prod7 uct obtained by multiplying— 

8 (i) the number of gallons of covered 

9 fuel that the President estimates will be 

10 sold or introduced into commerce in the 

11 calendar year; and 

12 (ii) the ratio that— 

13 (I) 21,000,000,000 gallons of 

14 coal-derived fuel; bears to 

15 (II) the number of gallons of cov16 ered fuel sold or introduced into com17 merce in calendar year 2022. 

18 (b) APPLICABLE PERCENTAGES.— 

19 (1) PROVISION OF ESTIMATE OF VOLUMES OF

20 CERTAIN FUEL SALES.—Not later than October 31 

21 of each of calendar years 2016 through 2021, the 

22 Administrator of the Energy Information Adminis23 tration shall provide to the President an estimate, 

24 with respect to the following calendar year, of the 

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1 volumes of covered fuel projected to be sold or intro2 duced into commerce in the United States. 

3 (2) DETERMINATION OF APPLICABLE PERCENT4 AGES.— 

5 (A) IN GENERAL.—Not later than Novem6 ber 30 of each of calendar years 2016 through 

7 2022, based on the estimate provided under 

8 paragraph (1), the President shall determine 

9 and publish in the Federal Register, with re10 spect to the following calendar year, the coal11 derived fuel obligation that ensures that the re12 quirements of subsection (a) are met. 

13 (B) REQUIRED ELEMENTS.—The coal-de14 rived fuel obligation determined for a calendar 

15 year under subparagraph (A) shall— 

16 (i) be applicable to refineries, blend17 ers, and importers, as appropriate; 

18 (ii) be expressed in terms of a volume 

19 percentage of covered fuel sold or intro20 duced into commerce in the United States; 

21 and 

22 (iii) subject to paragraph (3)(A), con23 sist of a single applicable percentage that 

24 applies to all categories of persons speci25 fied in clause (i). 

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1 (3) ADJUSTMENTS.—In determining the appli2 cable percentage for a calendar year, the President 

3 shall make adjustments— 

4 (A) to prevent the imposition of redundant 

5 obligations on any person specified in para6 graph (2)(B)(i); and 

7 (B) to account for the use of coal-derived 

8 fuel during the previous calendar year by small 

9 refineries that are exempt under subsection (f). 

10 (c) VOLUME CONVERSION FACTORS FOR COAL-DE11 RIVED FUELS BASED ON ENERGY CONTENT.— 

12 (1) IN GENERAL.—For the purpose of sub13 section (a), the President shall assign values to spe14 cific types of coal-derived fuel for the purpose of sat15 isfying the fuel volume requirements of subsection 

16 (a)(4) in accordance with this subsection. 

17 (2) ENERGY CONTENT RELATIVE TO DIESEL

18 FUEL.—For coal-derived fuels, 1 gallon of the coal19 derived fuel shall be considered to be the equivalent 

20 of 1 gallon of diesel fuel multiplied by the ratio 

21 that— 

22 (A) the number of British thermal units of 

23 energy produced by the combustion of 1 gallon 

24 of the coal-derived fuel (as measured under con25 ditions determined by the Secretary); bears to 

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1 (B) the number of British thermal units of 

2 energy produced by the combustion of 1 gallon 

3 of diesel fuel (as measured under conditions de4 termined by the Secretary to be comparable to 

5 conditions described in subparagraph (A)). 

6 (d) CREDIT PROGRAM.— 

7 (1) IN GENERAL.—The President, in consulta8 tion with the Secretary and the Administrator of the 

9 Environmental Protection Agency, shall implement a 

10 credit program to manage the coal-derived fuel re11 quirement of this section. 

12 (2) MARKET TRANSPARENCY.—In carrying out 

13 the credit program under this subsection, the Presi14 dent shall facilitate price transparency in markets 

15 for the sale and trade of credits, with due regard for 

16 the public interest, the integrity of those markets, 

17 fair competition, and the protection of consumers. 

18 (e) WAIVERS.— 

19 (1) IN GENERAL.—The President, in consulta20 tion with the Secretary and the Administrator of the 

21 Environmental Protection Agency, may waive the re22 quirements of subsection (a) in whole or in part on 

23 petition by 1 or more States by reducing the na24 tional quantity of coal-derived fuel required under 

25 subsection (a), based on a determination by the 

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1 President (after public notice and opportunity for 

2 comment), that— 

3 (A) implementation of the requirement 

4 would severely harm the economy or environ5 ment of a State, a region, or the United States; 

6 or 

7 (B) extreme and unusual circumstances 

8 exist that prevent distribution of an adequate 

9 supply of domestically-produced coal-derived 

10 fuel to consumers in the United States. 

11 (2) PETITIONS FOR WAIVERS.—The President, 

12 in consultation with the Secretary and the Adminis13 trator of the Environmental Protection Agency, shall 

14 approve or disapprove a State petition for a waiver 

15 of the requirements of subsection (a) within 90 days 

16 after the date on which the petition is received by 

17 the President. 

18 (3) TERMINATION OF WAIVERS.—A waiver 

19 granted under paragraph (1) shall terminate after 1 

20 year, but may be renewed by the President after 

21 consultation with the Secretary and the Adminis22 trator of the Environmental Protection Agency. 

23 (f) SMALL REFINERIES.— 

24 (1) TEMPORARY EXEMPTION.— 

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1 (A) IN GENERAL.—The requirements of 

2 subsection (a) shall not apply to small refineries 

3 until calendar year 2018. 

4 (B) EXTENSION OF EXEMPTION.— 

5 (i) STUDY BY SECRETARY.—Not later 

6 than December 31, 2013, the Secretary 

7 shall submit to the President and Congress 

8 a report describing the results of a study 

9 to determine whether compliance with the 

10 requirements of subsection (a) would im11 pose a disproportionate economic hardship 

12 on small refineries. 

13 (ii) EXTENSION OF EXEMPTION.—In 

14 the case of a small refinery that the Sec15 retary determines under clause (i) would 

16 be subject to a disproportionate economic 

17 hardship if required to comply with sub18 section (a), the President shall extend the 

19 exemption under subparagraph (A) for the 

20 small refinery for a period of not less than 

21 2 additional years. 

22 (2) PETITIONS BASED ON DISPROPORTIONATE

23 ECONOMIC HARDSHIP.— 

24 (A) EXTENSION OF EXEMPTION.—A small 

25 refinery may at any time petition the President 

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1 for an extension of the exemption under para2 graph (1) for the reason of disproportionate 

3 economic hardship. 

4 (B) EVALUATION OF PETITIONS.—In eval5 uating a petition under subparagraph (A), the 

6 President, in consultation with the Secretary, 

7 shall consider the findings of the study under 

8 paragraph (1)(B) and other economic factors. 

9 (C) DEADLINE FOR ACTION ON PETI10 TIONS.—The President shall act on any petition 

11 submitted by a small refinery for a hardship ex12 emption not later than 90 days after the date 

13 of receipt of the petition. 

14 (3) OPT-IN FOR SMALL REFINERIES.—A small 

15 refinery shall be subject to the requirements of sub16 section (a) if the small refinery notifies the Presi17 dent that the small refinery waives the exemption 

18 under paragraph (1). 

19 (g) PENALTIES AND ENFORCEMENT.— 

20 (1) CIVIL PENALTIES.— 

21 (A) IN GENERAL.—Any person that vio22 lates a regulation promulgated under subsection 

23 (a), or that fails to furnish any information re24 quired under such a regulation, shall be liable 

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1 to the United States for a civil penalty of not 

2 more than the total of— 

3 (i) $25,000 for each day of the viola4 tion; and 

5 (ii) the amount of economic benefit or 

6 savings received by the person resulting 

7 from the violation, as determined by the 

8 President. 

9 (B) COLLECTION.—Civil penalties under 

10 subparagraph (A) shall be assessed by, and col11 lected in a civil action brought by, the Secretary 

12 or such other officer of the United States as is 

13 designated by the President. 

14 (2) INJUNCTIVE AUTHORITY.— 

15 (A) IN GENERAL.—The district courts of 

16 the United States shall have jurisdiction to— 

17 (i) restrain a violation of a regulation 

18 promulgated under subsection (a); 

19 (ii) award other appropriate relief; 

20 and 

21 (iii) compel the furnishing of informa22 tion required under the regulation. 

23 (B) ACTIONS.—An action to restrain such 

24 violations and compel such actions shall be 

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1 brought by and in the name of the United 

2 States. 

3 (C) SUBPOENAS.—In the action, a sub4 poena for a witness who is required to attend 

5 a district court in any district may apply in any 

6 other district. 

7 (h) EFFECTIVE DATE.—Except as otherwise specifi8 cally provided in this section, this section takes effect on 

9 January 1, 2016. 

10 SEC. 4. LOAN GUARANTEES FOR COAL-DERIVED FUEL FA11 CILITIES. 

12 (a) IN GENERAL.—Section 1703 of the Energy Policy 

13 Act of 2005 (42 U.S.C. 16513) is amended by adding at 

14 the end the following: 

15 ‘‘(f) COAL-DERIVED FUEL FACILITIES.— 

16 ‘‘(1) IN GENERAL.—The Secretary may make 

17 guarantees under this title for projects that produce 

18 coal-derived fuel (as defined in section 2 of the 

19 Clean, Affordable, and Domestic Fuels for Energy 

20 Security Act of 2007). 

21 ‘‘(2) REQUIREMENTS.—A project under this 

22 subsection shall employ new or significantly im23 proved technologies for the production of coal-de24 rived fuels as compared to commercial technologies 

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1 in service in the United States at the time that the 

2 guarantee is issued. 

3 ‘‘(3) ISSUANCE OF FIRST LOAN GUARANTEES.— 

4 Section 20320(b) of division B of the Continuing 

5 Appropriations Resolution, 2007 (42 U.S.C. 

6 16515(b)) shall not apply to the first 6 guarantees 

7 issued under this subsection. 

8 ‘‘(4) MAXIMUM GUARANTEED PRINCIPAL.—The 

9 total principal amount of a loan guaranteed under 

10 this subsection may not exceed $250,000,000 for a 

11 single facility. 

12 ‘‘(5) AMOUNT OF GUARANTEE.—The Secretary 

13 shall guarantee 100 percent of the principal and in14 terest due on 1 or more loans made for a facility 

15 that is the subject of the guarantee under this sub16 section. 

17 ‘‘(6) DEADLINE.—The Secretary shall approve 

18 or disapprove an application for a guarantee under 

19 this subsection not later than 90 days after the date 

20 of receipt of the application. 

21 ‘‘(7) REPORT.—Not later than 30 days after 

22 approving or disapproving an application under this 

23 subsection, the Secretary shall submit to Congress a 

24 report on the approval or disapproval (including the 

25 reasons for the action).’’. 

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1 (b) IMPROVEMENTS TO UNDERLYING LOAN GUAR2 ANTEE AUTHORITY.— 

3 (1) DEFINITION OF COMMERCIAL TECH4 NOLOGY.—Section 1701(1) of the Energy Policy Act 

5 of 2005 (42 U.S.C. 16511(1)) is amended by strik6 ing subparagraph (B) and inserting the following: 

7 ‘‘(B) EXCLUSION.—The term ‘commercial 

8 technology’ does not include a technology if the 

9 sole use of the technology is in connection 

10 with— 

11 ‘‘(i) a demonstration plant; or 

12 ‘‘(ii) a project for which the Secretary 

13 approved a loan guarantee.’’. 

14 (2) SPECIFIC APPROPRIATION OR CONTRIBU15 TION.—Section 1702 of the Energy Policy Act of 

16 2005 (42 U.S.C. 16512) is amended by striking sub17 section (b) and inserting the following: 

18 ‘‘(b) SPECIFIC APPROPRIATION OR CONTRIBU19 TION.— 

20 ‘‘(1) IN GENERAL.—No guarantee shall be 

21 made unless— 

22 ‘‘(A) an appropriation for the cost has 

23 been made; or 

24 ‘‘(B) the Secretary has received from the 

25 borrower a payment in full for the cost of the 

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1 obligation and deposited the payment into the 

2 Treasury. 

3 ‘‘(2) LIMITATION.—The source of payments re4 ceived from a borrower under paragraph (1)(B) shall 

5 not be a loan or other debt obligation that is made 

6 or guaranteed by the Federal Government. 

7 ‘‘(3) RELATION TO OTHER LAWS.—Section 

8 504(b) of the Federal Credit Reform Act of 1990 (2 

9 U.S.C. 661c(b)) shall not apply to a loan or loan 

10 guarantee made in accordance with paragraph 

11 (1)(B).’’. 

12 (3) AMOUNT.—Section 1702 of the Energy Pol13 icy Act of 2005 (42 U.S.C. 16512) is amended by 

14 striking subsection (c) and inserting the following: 

15 ‘‘(c) AMOUNT.— 

16 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

17 the Secretary shall guarantee up to 100 percent of 

18 the principal and interest due on 1 or more loans for 

19 a facility that are the subject of the guarantee. 

20 ‘‘(2) LIMITATION.—The total amount of loans 

21 guaranteed for a facility by the Secretary shall not 

22 exceed 80 percent of the total cost of the facility, as 

23 estimated at the time at which the guarantee is 

24 issued.’’. 

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1 (4) SUBROGATION.—Section 1702(g)(2) of the 

2 Energy Policy Act of 2005 (42 U.S.C. 16512(g)(2)) 

3 is amended— 

4 (A) by striking subparagraph (B); and 

5 (B) by redesignating subparagraph (C) as 

6 subparagraph (B). 

7 (5) FEES.—Section 1702(h) of the Energy Pol8 icy Act of 2005 (42 U.S.C. 16512(h)) is amended by 

9 striking paragraph (2) and inserting the following: 

10 ‘‘(2) AVAILABILITY.—Fees collected under this 

11 subsection shall— 

12 ‘‘(A) be deposited by the Secretary into a 

13 special fund in the Treasury to be known as the 

14 ‘Incentives For Innovative Technologies Fund’; 

15 and 

16 ‘‘(B) remain available to the Secretary for 

17 expenditure, without further appropriation or 

18 fiscal year limitation, for administrative ex19 penses incurred in carrying out this title.’’. 

20 SEC. 5. COAL RESEARCH AND DEVELOPMENT. 

21 Section 961 of the Energy Policy Act of 2005 (42 

22 U.S.C. 16291) is amended— 

23 (1) in subsection (b)— 

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1 (A) in paragraph (2), by striking 

2 ‘‘$626,000,000’’ and inserting ‘‘$627,000,000’’; 

3 and 

4 (B) in paragraph (3), by striking 

5 ‘‘$641,000,000’’ and inserting ‘‘$645,000,000’’; 

6 and 

7 (2) in subsection (c)(1)— 

8 (A) in subparagraph (B), by striking 

9 ‘‘$376,000,000’’ and inserting ‘‘$377,000,000’’; 

10 and 

11 (B) in subparagraph (C), by striking 

12 ‘‘$394,000,000’’ and inserting ‘‘$398,000,000’’. 

13 SEC. 6. COAL CENTERS FOR TRANSPORTATION SECTOR RE14 SEARCH. 

15 Section 962 of the Energy Policy Act of 2005 (42 

16 U.S.C. 16292) is amended by adding at the end the fol17 lowing: 

18 ‘‘(e) COAL RESEARCH CENTERS.— 

19 ‘‘(1) ESTABLISHMENT.—The Secretary shall es20 tablish at least 7 coal research centers to conduct re21 search on transportation fuels, with an emphasis on 

22 research on the technologies and procedures de23 scribed in paragraphs (2), (5), (6), (7), (9), (10), 

24 and (11) of subsection (a). 

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1 ‘‘(2) LOCATION.—At least 1 coal research cen2 ter authorized under paragraph (1) shall be estab3 lished in each of the following States: 

4 ‘‘(A) Colorado. 

5 ‘‘(B) Kentucky. 

6 ‘‘(C) Montana. 

7 ‘‘(D) North Dakota. 

8 ‘‘(E) Pennsylvania. 

9 ‘‘(F) West Virginia. 

10 ‘‘(G) Wyoming.’’. 

11 SEC. 7. STUDY OF DEFENSE DEPARTMENT PROCUREMENT 

12 OF COAL-DERIVED FUELS. 

13 (a) IN GENERAL.—The Secretary, in consultation 

14 with the Secretary of Defense and private sector stake15 holders, shall conduct a comprehensive feasibility study of 

16 developing a domestic coal-derived fuels industry, includ17 ing an analysis of the national security benefits. 

18 (b) FACTORS FOR CONSIDERATION.—In conducting 

19 the study under subsection (a), the Secretary shall take 

20 into consideration— 

21 (1) the existing authority of the Secretary of 

22 Defense to procure coal-derived fuels; and 

23 (2) the estimated future authority of the Sec24 retary of Defense to enter into long-term contracts 

25 with private entities or other entities to purchase 

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1 coal-derived fuel or to develop or operate coal-de2 rived fuel facilities on or near military installations, 

3 based on— 

4 (A)(i) the availability of land and testing 

5 opportunities; and 

6 (ii) the proximity to raw materials; 

7 (B) a contract term of not more than 25 

8 years; 

9 (C) the authority to purchase coal-derived 

10 fuels at fixed prices above, at, or below com11 parable market prices of fuel during the term of 

12 the contract; 

13 (D)(i) the corresponding budgetary impact 

14 of the long-term contracts; and 

15 (ii) alternative methods for accounting for 

16 the contracts; and 

17 (E) any legislative, administrative, or other 

18 actions that could decrease obstacles to the use 

19 of long-term contracts. 

20 (c) REPORT.—Not later than 90 days after the date 

21 of enactment of this Act, the Secretary, in consultation 

22 with the Secretary of Defense and private sector stake23 holders, shall submit to Congress a report describing the 

24 results of the study conducted under subsection (a). 

Æ