I 
109TH CONGRESS 
2D SESSION 
H. R. 6249 
To authorize the Secretary of Energy to make price floor loans to certain 
low-carbon coal-to-liquid fuel projects. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 28, 2006 
Mr. SHIMKUS (for himself and Mr. BOUCHER) introduced the following bill; 
which was referred to the Committee on Energy and Commerce, and in 
addition to the Committee on Science, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To authorize the Secretary of Energy to make price floor 
loans to certain low-carbon coal-to-liquid fuel projects. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. LOW-CARBON COAL-TO-LIQUIDS PROJECTS. 
Section 1702 of the Energy Policy Act of 2005 (42 
U.S.C. 16512) is amended by adding at the end thereof 
the following new subsection: 
‘‘(k) LOW-CARBON CTL PROJECTS.—(1)(A) The 
Secretary may enter into an agreement (in the form of 
a price floor loan) with no more than 6 low-carbon CTL 
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projects to guarantee each project a minimum price for 
its output of liquid or gaseous transportation fuels in re-
turn for— 
‘‘(i) payment to the United States of the 
cost of such loan (determined under 502(5)(B) 
of the Federal Credit Reform Act of 1990); or 
‘‘(ii) at the election of the borrower, a call 
option for the United States equivalent in value 
to such payment. 
‘‘(B) No agreement for a price floor loan may be en-
tered into under this subsection unless the Office of Man-
agement and Budget determines that the cost of such loan 
is fully offset by a payment under subparagraph (A)(i) or 
by the value of a call option under subparagraph (A)(ii). 
‘‘(2) For purposes of this subsection: 
‘‘(A) The term ‘call option’ means a call option 
for the United States under which a price floor loan 
borrower has a contractual obligation to make pay-
ments to the United States in addition to any repay-
ments of the price floor loan. Such call option pay-
ments in any period shall be equal to the excess of 
the petroleum market price over the payback price, 
less any loan payments made in that period. 
‘‘(B) The term ‘low-carbon CTL project’ means 
a commercial-scale project that converts coal to one 
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or more liquid or gaseous transportation fuels, is de-
signed to demonstrate and, if determined to be ap-
propriate, demonstrates the capture and sequestra-
tion or disposal or use of an agreed upon portion of 
the carbon dioxide produced in the conversion proc-
ess. 
‘‘(C) The term ‘output’ means some or all of 
the liquid or gaseous transportation fuels produced 
from the project. 
‘‘(D) The term ‘price floor loan’ means an obli-
gation to make a nonrecourse direct loan to a low- 
carbon CTL project under which— 
‘‘(i) disbursement is made during any pe-
riod if, and to the extent, a specified petroleum 
market price index falls below a floor price 
specified in the loan agreement; and 
‘‘(ii) repayment (with interest) is made 
during any period if, and to the extent, such 
market price index is above a payback price 
specified in the loan agreement. 
‘‘(3) Subsections (f), (h), and (j) of this section shall 
apply to price floor loans to the same extent they apply 
to loan guarantees. The value to the Government of any 
call option determined under paragraph (1)(B) shall be 
taken into account for purposes of section 502(5)(B)(iii) 
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of the Federal Credit Reform Act of 1990 in determining 
the cost to the Federal Government of a price floor loan. 
If a price floor loan has no cost to the Federal Govern-
ment, the requirements of section 504(b) of such Act shall 
be deemed to be satisfied.’’. 
Æ 
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