I 
109TH CONGRESS 
2D SESSION 
H. R. 5778 
To provide further incentives for the commercialization of coal-to-liquid fuel 
activities. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 12, 2006 
Mr. RAHALL introduced the following bill; which was referred to the Com-
mittee on Energy and Commerce, and in addition to the Committees on 
Science and Ways and Means, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
A BILL 
To provide further incentives for the commercialization of 
coal-to-liquid fuel activities. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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: 
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(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 PRO-
GRAM. 
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, permit-
ting, and construction of a coal-to-liquid fuel facility. 
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(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 applica-
tion 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 financ-
ing 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. 
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SEC. 5. STRATEGIC PETROLEUM RESERVE. 
(a) DEVELOPMENT, OPERATION, AND MAINTENANCE 
OF RESERVE.—Section 159 of the Energy Policy and Con-
servation 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 redesig-
nated by paragraph (1)) the following new sub-
section: 
‘‘(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 suit-
ability 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 Serv-
ices of the House of Representatives a report de-
scribing the results of the study.’’. 
(b) PETROLEUM PRODUCTS FOR STORAGE IN RE-
SERVE.—Section 160 of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6240) is amended— 
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(1) in subsection (a)— 
(A) in paragraph (1), by inserting a semi-
colon at the end; 
(B) in paragraph (2), by striking ‘‘and’’ at 
the end; 
(C) in paragraph (3), by striking the pe-
riod 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 appro-
priate, in a quantity not to exceed 20 percent of the 
total quantity of petroleum products in the Re-
serve.’’; 
(2) in subsection (b), by redesignating para-
graphs (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 
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(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 in-
serting ‘‘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 (re-
lating to termination) is amended by inserting ‘‘(Decem-
ber 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.—Para-
graph (3) of section 6426(e) of such Code (relating to ter-
mination) 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))’’ be-
fore 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 subpara-
graph (C), by striking the period at the end of sub-
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paragraph (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 de-
rived 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. 
Æ 
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