112 
‘‘(B) if such facility is originally placed in 
service after December 31, 1992, paragraph (2) 
of subsection (e) shall not apply.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to fuel sold after De-
cember 31, 2008. 
SEC. 703. COAL-TO-LIQUID FUEL LOAN GUARANTEE PRO-
GRAM. 
(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 de-
fined in section 101 of the Coal-to-Liquid Fuel Pro-
motion Act of 2007) that use a feedstock, the major-
ity of which is the coal resources of the United 
States, to produce not less than 10,000 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- 
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scale 
coal-to-liquid 
facilities 
under 
section 
1703(b)(11). 
‘‘(2) ALTERNATIVE FUNDING.—If no appropria-
tions are made available under paragraph (1), an eli-
gible applicant may elect to provide payment to the 
Secretary, to be delivered if and at the time the ap-
plication is approved, in the amount of the estimated 
cost of the loan guarantee to the Federal Govern-
ment, as determined by the Secretary. 
‘‘(3) 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 bar-
rels 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 
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114 
than 20,000 barrels of coal-to-liquid fuel 
per day. 
‘‘(ii) NON-FEDERAL
FUNDING
RE-
QUIREMENT.—To be eligible for a loan 
guarantee under this title, a large-scale 
coal-to-liquid facility described in para-
graph (1) that produces more than 20,000 
barrels per day of coal-to-liquid fuel shall 
be eligible to receive a loan guarantee for 
the proportion of the cost of the facility 
that represents 20,000 barrels of coal-to- 
liquid fuel per day of production. 
‘‘(4) REQUIREMENTS.— 
‘‘(A) GUIDELINES.—Not later than 180 
days after the date of enactment of this sub-
section, the Secretary shall publish guidelines 
for the coal-to-liquids loan guarantee applica-
tion process. 
‘‘(B) APPLICATIONS.—Not later than 1 
year after the date of enactment of this sub-
section, the Secretary shall begin to accept ap-
plications for coal-to-liquid loan guarantees 
under this subsection. 
‘‘(C) DEADLINE.—Not later than 1 year 
from the date of acceptance of an application 
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115 
under subparagraph (B), the Secretary shall 
evaluate the application and make final deter-
minations under this subsection. 
‘‘(5) REPORTS TO CONGRESS.—The Secretary 
shall submit to the Committee on Energy and Nat-
ural Resources of the Senate and the Committee on 
Energy and Commerce of the House of Representa-
tives a report describing the status of the program 
under this subsection not later than each of— 
‘‘(A) 180 days after the date of enactment 
of this subsection; 
‘‘(B) 1 year after the date of enactment of 
this subsection; and 
‘‘(C) the dates on which the Secretary ap-
proves the first and fifth applications for coal- 
to-liquid loan guarantees under this sub-
section.’’. 
SEC. 704. 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 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, 
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116 
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, permit-
ting, and construction of a coal-to-liquid facility. 
(c) APPLICATION.—To be eligible to receive a loan 
under subsection (b), the eligible recipient shall submit to 
the Secretary an application at such time, in such manner, 
and containing such information as the Secretary may re-
quire. 
(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 financ-
ing or assistance received for the construction of a 
coal-to-liquid facility described in subsection (a), in-
cluding a loan guarantee provided under section 
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117 
1703(b)(11) of the Energy Policy Act of 2005 (42 
U.S.C. 16513(b)(11)). 
(f) REQUIREMENTS.— 
(1) GUIDELINES.—Not later than 180 days 
after the date of enactment of this Act, the Sec-
retary shall publish guidelines for the coal-to-liquids 
loan application process. 
(2) APPLICATIONS.—Not later than 1 year 
after the date of enactment of this Act, the Sec-
retary shall begin to accept applications for coal-to- 
liquid loans under this section. 
(g) REPORTS TO CONGRESS.—Not later than each of 
180 days and 1 year after the date of enactment of this 
Act, the Secretary shall submit to the Committee on En-
ergy and Natural Resources of the Senate and the Com-
mittee on Energy and Commerce of the House of Rep-
resentatives a report describing the status of the program 
under this section. 
(h) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$200,000,000, to remain available until expended. 
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118 
SEC. 705. 7-YEAR DEPRECIATION FOR CLEAN COAL TECH-
NOLOGY OR FOR CARBON SEQUESTRATION 
TECHNOLOGY INSTALLED OR RETRO-FIT AT 
POWER-PLANTS. 
(a) IN GENERAL.—Subparagraph (C) of section 
168(e)(3) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘and’’ at the end of clause (iv), by striking 
the period at the end of clause (v) and inserting ‘‘, and’’, 
and by inserting after clause (v) the following new clause: 
‘‘(v) any property installed with re-
spect to any coal fired power plant gener-
ating power that retrofits the operation of 
such plant to decrease its carbon output by 
at least 10 percent per year.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to property placed in service 
after December 31, 2009. 
SEC. 706. EXTENSION OF 50 CENT PER GALLON ALTER-
NATIVE FUELS EXCISE TAX CREDIT. 
Paragraph (5) of section 6426(d) of the Internal Rev-
enue Code of 1986 is amended— 
(1) by striking ‘‘2009’’ and inserting ‘‘2019’’, 
and 
(2) by striking ‘‘2014’’ and inserting ‘‘2024’’. 
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SEC. 707. PROVIDES A 20 PERCENT INVESTMENT TAX CRED-
IT CAPPED AT $200 MILLION TOTAL PER CTL 
PLANT PLACED IN SERVICE BEFORE 2016. 
The Internal Revenue Service shall treat the syn-
thetic gas produced from coal-to-liquids with the same tax 
treatment as covered by the industrial gasification tax 
credit. 
SEC. 708. REDUCES RECOVERY PERIOD FOR CERTAIN EN-
ERGY PRODUCTION AND DISTRIBUTION FA-
CILITIES. 
In the case of an individual or business, there shall 
be allowed as a credit against the taxes imposed by sub-
title A of the Internal Revenue Code of 1986 an amount 
equal to 30 percent of the expenditures made by such indi-
vidual or business for energy production and distribution 
facilities. 
SEC. 709. DOE CLEAN COAL TECHNOLOGY LOAN GUARAN-
TEES AND DIRECT LOANS. 
The Secretary of Energy may provide clean coal tech-
nology loan guarantees and direct loans for the research, 
development, demonstration, and deployment of clean coal 
technology, to build up to five commercial-scale coal-fired 
plants with carbon capture and sequestration capabilities. 
For each such loan guarantee or loan, at least 50 percent 
of the total cost of the project shall be provided by the 
private sector. 
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120 
SEC. 710. CARBON DIOXIDE STORAGE CAPACITY ASSESS-
MENT. 
(a) DEFINITIONS.—In this section: 
(1) ASSESSMENT.—The term ‘‘assessment’’ 
means the national assessment of capacity for car-
bon dioxide completed under subsection (f). 
(2) CAPACITY.—The term ‘‘capacity’’ means the 
portion of a storage formation that can retain car-
bon dioxide in accordance with the requirements (in-
cluding physical, geological, and economic require-
ments) established under the methodology developed 
under subsection (b). 
(3) ENGINEERED
HAZARD.—The term ‘‘engi-
neered hazard’’ includes the location and completion 
history of any well that could affect potential stor-
age. 
(4) RISK.—The term ‘‘risk’’ includes any risk 
posed 
by 
geomechanical, 
geochemical, 
hydrogeological, structural, and engineered hazards. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior, acting through the Di-
rector of the United States Geological Survey. 
(6) STORAGE FORMATION.—The term ‘‘storage 
formation’’ 
means 
a 
deep 
saline 
formation, 
unmineable coal seam, or oil or gas reservoir that is 
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capable of accommodating a volume of industrial 
carbon dioxide. 
(b) METHODOLOGY.—Not later than 1 year after the 
date of enactment of this Act, the Secretary shall develop 
a methodology for conducting an assessment under sub-
section (f), taking into consideration— 
(1) the geographical extent of all potential stor-
age formations in all States; 
(2) the capacity of the potential storage forma-
tions; 
(3) the injectivity of the potential storage for-
mations; 
(4) an estimate of potential volumes of oil and 
gas recoverable by injection and storage of industrial 
carbon dioxide in potential storage formations; 
(5) the risk associated with the potential stor-
age formations; and 
(6) the Carbon Sequestration Atlas of the 
United States and Canada that was completed by 
the Department of Energy in April 2006. 
(c) COORDINATION.— 
(1) FEDERAL COORDINATION.— 
(A) CONSULTATION.—The Secretary shall 
consult with the Secretary of Energy and the 
Administrator of the Environmental Protection 
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Agency on issues of data sharing, format, devel-
opment of the methodology, and content of the 
assessment required under this title to ensure 
the maximum usefulness and success of the as-
sessment. 
(B) COOPERATION.—The Secretary of En-
ergy and the Administrator shall cooperate with 
the Secretary to ensure, to the maximum extent 
practicable, the usefulness and success of the 
assessment. 
(2) STATE
COORDINATION.—The Secretary 
shall consult with State geological surveys and other 
relevant entities to ensure, to the maximum extent 
practicable, the usefulness and success of the assess-
ment. 
(d) EXTERNAL REVIEW
AND PUBLICATION.—On 
completion of the methodology under subsection (b), the 
Secretary shall— 
(1) publish the methodology and solicit com-
ments from the public and the heads of affected 
Federal and State agencies; 
(2) establish a panel of individuals with exper-
tise in the matters described in paragraphs (1) 
through (5) of subsection (b) composed, as appro-
priate, of representatives of Federal agencies, insti-
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