H. R. 6—526
(i) complete, maintain, operate, lease, or otherwise 
dispose of any property acquired pursuant to such 
guarantee or related agreements; or 
(ii) permit the borrower, pursuant to an agreement 
with the Secretary, to continue to pursue the purposes 
of the project if the Secretary determines this to be 
in the public interest. 
(B) SUPERIORITY OF RIGHTS.—The rights of the Sec-
retary, with respect to any property acquired pursuant 
to a guarantee or related agreements, shall be superior 
to the rights of any other person with respect to the prop-
erty. 
(C) TERMS AND CONDITIONS.—A guarantee agreement 
shall include such detailed terms and conditions as the 
Secretary determines appropriate to— 
(i) protect the interests of the United States in 
the case of default; and 
(ii) have available all the patents and technology 
necessary for any person selected, including the Sec-
retary, to complete and operate the project. 
(3) PAYMENT OF PRINCIPAL AND INTEREST BY SECRETARY.—
With respect to any obligation guaranteed under this section, 
the Secretary may enter into a contract to pay, and pay, holders 
of the obligation, for and on behalf of the borrower, from funds 
appropriated for that purpose, the principal and interest pay-
ments which become due and payable on the unpaid balance 
of the obligation if the Secretary finds that— 
(A)(i) the borrower is unable to meet the payments 
and is not in default; 
(ii) it is in the public interest to permit the borrower 
to continue to pursue the purposes of the project; and 
(iii) the probable net benefit to the Federal Government 
in paying the principal and interest will be greater than 
that which would result in the event of a default; 
(B) the amount of the payment that the Secretary 
is authorized to pay shall be no greater than the amount 
of principal and interest that the borrower is obligated 
to pay under the agreement being guaranteed; and 
(C) the borrower agrees to reimburse the Secretary 
for the payment (including interest) on terms and condi-
tions that are satisfactory to the Secretary. 
(4) ACTION BY ATTORNEY GENERAL.— 
(A) NOTIFICATION.—If the borrower defaults on an 
obligation, the Secretary shall notify the Attorney General 
of the default. 
(B) RECOVERY.—On notification, the Attorney General 
shall take such action as is appropriate to recover the 
unpaid principal and interest due from— 
(i) such assets of the defaulting borrower as are 
associated with the obligation; or 
(ii) any other security pledged to secure the obliga-
tion. 
(h) FEES.— 
(1) IN GENERAL.—The Secretary shall charge and collect 
fees for guarantees in amounts the Secretary determines are 
sufficient to cover applicable administrative expenses.
H. R. 6—527
(2) AVAILABILITY.—Fees collected under this subsection 
shall— 
(A) be deposited by the Secretary into the Treasury; 
and 
(B) remain available until expended, subject to such 
other conditions as are contained in annual appropriations 
Acts. 
(i) RECORDS; AUDITS.— 
(1) IN GENERAL.—A recipient of a guarantee shall keep 
such records and other pertinent documents as the Secretary 
shall prescribe by regulation, including such records as the 
Secretary may require to facilitate an effective audit. 
(2) ACCESS.—The Secretary and the Comptroller General 
of the United States, or their duly authorized representatives, 
shall have access, for the purpose of audit, to the records 
and other pertinent documents. 
(j) FULL FAITH AND CREDIT.—The full faith and credit of the 
United States is pledged to the payment of all guarantees issued 
under this section with respect to principal and interest. 
SEC. 1703. ELIGIBLE PROJECTS. 
(a) IN GENERAL.—The Secretary may make guarantees under 
this section only for projects that— 
(1) avoid, reduce, or sequester air pollutants or anthropo-
genic emissions of greenhouse gases; and 
(2) employ new or significantly improved technologies as 
compared to commercial technologies in service in the United 
States at the time the guarantee is issued. 
(b) CATEGORIES.—Projects from the following categories shall 
be eligible for a guarantee under this section: 
(1) Renewable energy systems. 
(2) Advanced fossil energy technology (including coal gasifi-
cation meeting the criteria in subsection (d)). 
(3) Hydrogen fuel cell technology for residential, industrial, 
or transportation applications. 
(4) Advanced nuclear energy facilities. 
(5) Carbon capture and sequestration practices and tech-
nologies, including agricultural and forestry practices that store 
and sequester carbon. 
(6) Efficient electrical generation, transmission, and dis-
tribution technologies. 
(7) Efficient end-use energy technologies. 
(8) Production facilities for fuel efficient vehicles, including 
hybrid and advanced diesel vehicles. 
(9) Pollution control equipment. 
(10) Refineries, meaning facilities at which crude oil is 
refined into gasoline. 
(c) GASIFICATION PROJECTS.—The Secretary may make guaran-
tees for the following gasification projects: 
(1) INTEGRATED GASIFICATION COMBINED CYCLE PROJECTS.—
Integrated gasification combined cycle plants meeting the emis-
sion levels under subsection (d), including— 
(A) projects for the generation of electricity— 
(i) for which, during the term of the guarantee— 
(I) coal, biomass, petroleum coke, or a com-
bination of coal, biomass, and petroleum coke will
H. R. 6—528
account for at least 65 percent of annual heat 
input; and 
(II) electricity will account for at least 65 per-
cent of net useful annual energy output; 
(ii) that have a design that is determined by the 
Secretary to be capable of accommodating the equip-
ment likely to be necessary to capture the carbon 
dioxide that would otherwise be emitted in flue gas 
from the plant; 
(iii) that have an assured revenue stream that 
covers project capital and operating costs (including 
servicing all debt obligations covered by the guarantee) 
that is approved by the Secretary and the relevant 
State public utility commission; and 
(iv) on which construction commences not later 
than the date that is 3 years after the date of the 
issuance of the guarantee; 
(B) a project to produce energy from coal (of not more 
than 13,000 Btu/lb and mined in the western United States) 
using appropriate advanced integrated gasification com-
bined cycle technology that minimizes and offers the poten-
tial to sequester carbon dioxide emissions and that— 
(i) may include repowering of existing facilities; 
(ii) may be built in stages; 
(iii) shall have a combined output of at least 100 
megawatts; 
(iv) shall be located in a western State at an alti-
tude greater than 4,000 feet; and 
(v) shall demonstrate the ability to use coal with 
an energy content of not more than 9,000 Btu/lb; 
(C) a project located in a taconite-producing region 
of the United States that is entitled under the law of 
the State in which the plant is located to enter into a 
long-term contract approved by a State public utility 
commission to sell at least 450 megawatts of output to 
a utility; 
(D) facilities that— 
(i) generate one or more hydrogen-rich and carbon 
monoxide-rich product streams from the gasification 
of coal or coal waste; and 
(ii) use those streams to facilitate the production 
of ultra clean premium fuels through the Fischer-
Tropsch process; and 
(E) a project to produce energy and clean fuels, using 
appropriate coal liquefaction technology, from Western 
bituminous or subbituminous coal, that— 
(i) is owned by a State government; and 
(ii) may include tribal and private coal resources. 
(2) INDUSTRIAL
GASIFICATION
PROJECTS.—Facilities that 
gasify coal, biomass, or petroleum coke in any combination 
to produce synthesis gas for use as a fuel or feedstock and 
for which electricity accounts for less than 65 percent of the 
useful energy output of the facility. 
(3) PETROLEUM
COKE
GASIFICATION
PROJECTS.—The Sec-
retary is encouraged to make loan guarantees under this title 
available for petroleum coke gasification projects.
H. R. 6—529
(4) LIQUEFACTION
PROJECT.—Notwithstanding any other 
provision of law, funds awarded under the clean coal power 
initiative under subtitle A of title IV for coal-to-oil liquefaction 
projects may be used to finance the cost of loan guarantees 
for projects awarded such funds. 
(d) EMISSION LEVELS.—In addition to any other applicable Fed-
eral or State emission limitation requirements, a project shall attain 
at least— 
(1) total sulfur dioxide emissions in flue gas from the 
project that do not exceed 0.05 lb/MMBtu; 
(2) a 90-percent removal rate (including any fuel 
pretreatment) of mercury from the coal-derived gas, and any 
other fuel, combusted by the project; 
(3) total nitrogen oxide emissions in the flue gas from 
the project that do not exceed 0.08 lb/MMBtu; and 
(4) total particulate emissions in the flue gas from the 
project that do not exceed 0.01 lb/MMBtu. 
(e) QUALIFICATION OF FACILITIES RECEIVING TAX CREDITS.—
A project that receives tax credits for clean coal technology shall 
not be disqualified from receiving a guarantee under this title. 
SEC. 1704. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—There are authorized to be appropriated such 
sums as are necessary to provide the cost of guarantees under 
this title. 
(b) USE
OF OTHER APPROPRIATED FUNDS.—The Department 
may use amounts awarded under the clean coal power initiative 
under subtitle A of title IV to carry out the project described 
in section 1703(c)(1)(C), on the request of the recipient of such 
award, for a loan guarantee, to the extent that the amounts have 
not yet been disbursed to, or have been repaid by, the recipient. 
TITLE XVIII—STUDIES 
SEC. 1801. STUDY ON INVENTORY OF PETROLEUM AND NATURAL GAS 
STORAGE. 
(a) DEFINITION.—For purposes of this section ‘‘petroleum’’ 
means crude oil, motor gasoline, jet fuel, distillates, and propane. 
(b) STUDY.—The Secretary shall conduct a study on petroleum 
and natural gas storage capacity and operational inventory levels, 
nationwide and by major geographical regions. 
(c) CONTENTS.—The study shall address— 
(1) historical normal ranges for petroleum and natural 
gas inventory levels; 
(2) historical and projected storage capacity trends; 
(3) estimated operation inventory levels below which out-
ages, delivery slowdown, rationing, interruptions in service, 
or other indicators of shortage begin to appear; 
(4) explanations for inventory levels dropping below normal 
ranges; and 
(5) the ability of industry to meet United States demand 
for petroleum and natural gas without shortages or price spikes, 
when inventory levels are below normal ranges. 
(d) REPORT TO CONGRESS.—Not later than 1 year after the 
date of enactment of this Act, the Secretary shall submit a report