II 

109TH CONGRESS 

2D SESSION S. 3623 

To promote coal-to-liquid fuel activities. 

IN THE SENATE OF THE UNITED STATES 

JUNE 29, 2006 

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

Ms. MURKOWSKI, and Mr. BOND) introduced the following bill; which was 

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

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 Energy 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 a feedstock, the majority of 


jcorcoran on PROD1PC62 with BILLS
2 

•S 3623 IS

1 which is the coal resources of the United 

2 States, using the class of chemical reactions 

3 known as Fischer-Tropsch, to produce synthetic 

4 fuel suitable for transportation; and 

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

6 of a facility related to supplying inputs to the 

7 Fischer-Tropsch process, Fischer-Tropsch fin8 ished fuel production, or the capture, transpor9 tation, or sequestration of byproducts of the use 

10 of coal at the Fischer-Tropsch facility, including 

11 carbon emissions. 

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

13 the Secretary of Energy. 

14 SEC. 3. COAL-TO-LIQUID FUEL LOAN GUARANTEE PRO15 GRAM. 

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

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

18 amended by adding at the end the following: 

19 ‘‘(11) Large-scale coal-to-liquid facilities (as de20 fined in section 2 of the Coal-to-Liquid Fuel Pro21 motion Energy Act of 2006) that use a feedstock, 

22 the majority of which is the coal resources of the 

23 United States, to produce not less than 10,000 bar24 rels a day of liquid transportation fuel.’’. 


jcorcoran on PROD1PC62 with BILLS
3 

•S 3623 IS

1 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

2 1704 of the Energy Policy Act of 2005 (42 U.S.C. 16514) 

3 is amended by adding at the end the following: 

4 ‘‘(c) COAL-TO-LIQUID PROJECTS.— 

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

6 appropriated such sums as are necessary to provide 

7 the cost of guarantees for projects involving large8 scale coal-to-liquid facilities under section 

9 1703(b)(11). 

10 ‘‘(2) LIMITATIONS.— 

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

12 shall be provided under this title for projects 

13 described in paragraph (1) after (as determined 

14 by the Secretary)— 

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

16 issued under this title; or 

17 ‘‘(ii) production capacity covered by 

18 such loan guarantees reaches 100,000 bar19 rels per day of coal-to-liquid fuel. 

20 ‘‘(B) INDIVIDUAL PROJECTS.— 

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

22 may be provided under this title for any 

23 large-scale coal-to-liquid facility described 

24 in paragraph (1) that produces no more 


jcorcoran on PROD1PC62 with BILLS
4 

•S 3623 IS

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

2 per day. 

3 ‘‘(ii) NON-FEDERAL FUNDING RE4 QUIREMENT.—To be eligible for a loan 

5 guarantee under this title, a large-scale 

6 coal-to-liquid facility described in para7 graph (1) that produces more than 20,000 

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

9 be required to provide non-Federal funding 

10 for the proportional cost of the loan guar11 antee for production that exceeds 20,000 

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

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

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

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

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

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

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

19 (b) ESTABLISHMENT.—The Secretary shall establish 

20 a program under which the Secretary shall provide loans, 

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

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

23 obtaining any services necessary for the planning, permit24 ting, and construction of a coal-to-liquid facility. 


jcorcoran on PROD1PC62 with BILLS
5 

•S 3623 IS

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

2 under subsection (b), an owner or operator of a coal-to3 liquid facility shall submit to the Secretary an application 

4 at such time, in such manner, and containing such infor5 mation as the Secretary may require. 

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

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

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

9 the amount of the loan. 

10 (e) REPAYMENT OF LOAN.— 

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

12 loan under this section, an eligible recipient shall 

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

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

15 receipt of the loan. 

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

17 under paragraph (1) may be made from any financ18 ing or assistance received for the construction of a 

19 coal-to-liquid facility described in subsection (a), in20 cluding a loan guarantee provided under section 

21 1703(b)(11) of the Energy Policy Act of 2005 (42 

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

23 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

24 authorized to be appropriated to carry out this section 

25 $200,000,000, to remain available until expended. 


jcorcoran on PROD1PC62 with BILLS
6 

•S 3623 IS

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

2 FACILITIES. 

3 The Secretary, in coordination with the head of any 

4 affected agency, shall promulgate such regulations as the 

5 Secretary determines to be necessary to support the devel6 opment on Federal land (including land of the Department 

7 of Energy, military bases, and military installations closed 

8 or realigned under the defense base closure and realign9 ment) of coal-to-liquid manufacturing facilities and associ10 ated infrastructure, including the capture, transportation, 

11 or sequestration of carbon dioxide. 

12 SEC. 6. STRATEGIC PETROLEUM RESERVE. 

13 (a) DEVELOPMENT, OPERATION, AND MAINTENANCE

14 OF RESERVE.—Section 159 of the Energy Policy and Con15 servation Act (42 U.S.C. 6239) is amended— 

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

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

18 respectively; and 

19 (2) by inserting after subsection (b) (as redesig20 nated by paragraph (1)) the following: 

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

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

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

24 Energy Act of 2006, the Secretary and the Secretary of 

25 Defense shall— 


jcorcoran on PROD1PC62 with BILLS
7 

•S 3623 IS

1 ‘‘(1) conduct a study of the feasibility and suit2 ability of maintaining coal-to-liquid products in the 

3 Reserve; and 

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

5 Natural Resources and the Committee on Armed 

6 Services of the Senate and the Committee on Energy 

7 and Commerce and the Committee on Armed Serv8 ices of the House of Representatives a report de9 scribing the results of the study. 

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

11 soon as practicable after the date of enactment of the 

12 Coal-to-Liquid Fuel Promotion Energy Act of 2006, the 

13 Secretary may construct 1 or more storage facilities— 

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

15 and at least 1 military base; but 

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

17 coast of the Gulf of Mexico.’’. 

18 (b) PETROLEUM PRODUCTS FOR STORAGE IN RE19 SERVE.—Section 160 of the Energy Policy and Conserva20 tion Act (42 U.S.C. 6240) is amended— 

21 (1) in subsection (a)— 

22 (A) in paragraph (1), by inserting a semi23 colon at the end; 

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

25 the end; 


jcorcoran on PROD1PC62 with BILLS
8 

•S 3623 IS

1 (C) in paragraph (3), by striking the pe2 riod at the end and inserting ‘‘; and’’; and 

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

4 ‘‘(4) coal-to-liquid products (as defined in sec5 tion 2 of the Coal-to-Liquid Fuel Promotion Energy 

6 Act of 2006), as the Secretary determines to be ap7 propriate, in a quantity not to exceed 20 percent of 

8 the total quantity of petroleum products in the Re9 serve.’’; 

10 (2) in subsection (b), by redesignating para11 graphs (3) through (5) as paragraphs (2) through 

12 (4), respectively; and 

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

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

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

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

17 amended— 

18 (1) in subsection (b)— 

19 (A) by redesignating paragraphs (2) and 

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

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

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

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


jcorcoran on PROD1PC62 with BILLS
9 

•S 3623 IS

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

2 paragraph (1), by striking ‘‘section 160(f)’’ and in3 serting ‘‘section 160(e)’’. 

4 SEC. 7. AUTHORIZATION TO CONDUCT RESEARCH, DEVEL5 OPMENT, TESTING, AND EVALUATION OF AS6 SURED DOMESTIC FUELS. 

7 Of the amount authorized to be appropriated for the 

8 Air Force for research, development, testing, and evalua9 tion, $10,000,000 may be made available for the Air Force 

10 Research Laboratory to continue support efforts to test, 

11 qualify, and procure synthetic fuels developed from coal 

12 for aviation jet use. 

13 SEC. 8. COAL-TO-LIQUID FACILITIES ON OR NEAR MILI14 TARY INSTALLATIONS. 

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

16 amended— 

17 (1) in subsection (b)— 

18 (A) by striking ‘‘The Secretary’’ and in19 serting the following: 

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

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

22 ‘‘(2) COAL-TO-LIQUID PRODUCTION FACILI23 TIES.— 

24 ‘‘(A) IN GENERAL.—The Secretary of De25 fense may enter into contracts or other agreeVerDate Aug 31 2005 03:57 Jul 04, 2006 Jkt 049200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S3623.IS S3623

jcorcoran on PROD1PC62 with BILLS
10 

•S 3623 IS

1 ments with private companies or other entities 

2 to develop and operate coal-to-liquid facilities 

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

4 Fuel Promotion Energy Act of 2006) on or 

5 near military installations. 

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

7 contracts and other agreements under subpara8 graph (A), the Secretary shall consider land 

9 availability, testing opportunities, and proximity 

10 to raw materials.’’; 

11 (2) in subsection (d)— 

12 (A) by striking ‘‘Subject to applicable pro13 visions of law, any’’ and inserting ‘‘Any’’; and 

14 (B) by striking ‘‘1 or more years’’ and in15 serting ‘‘up to 25 years’’; and 

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

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

18 are authorized to be appropriated such sums as are nec19 essary to carry out this section.’’. 

Æ 


jcorcoran on PROD1PC62 with BILLS