I 
110TH CONGRESS 
1ST SESSION H. R. 2208 
To provide for a standby loan program for certain coal-to-liquid projects. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 8, 2007 
Mr. BOUCHER (for himself, Mr. SHIMKUS, Mr. MATHESON, Mr. HASTERT, 
Mr. DOYLE, Mr. PICKERING, Mr. HILL, Mr. UPTON, Mr. ROSS, and Mr. 
WHITFIELD) introduced the following bill; which was referred to the Com-
mittee on Energy and Commerce, and in addition to the Committee on 
Science and Technology, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
A BILL 
To provide for a standby loan program for certain coal- 
to-liquid projects. 
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 Liquid Fuel Act’’. 
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SEC. 2. STANDBY LOANS FOR QUALIFYING COAL-TO-LIQ-
UIDS PROJECTS. 
Section 1702 of the Energy Policy Act of 2005 (42 
U.S.C. 16512) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(k) STANDBY
LOANS
FOR
QUALIFYING
CTL 
PROJECTS.— 
‘‘(1) DEFINITIONS.—For purposes of this sub-
section: 
‘‘(A) CAP
PRICE.—The term ‘cap price’ 
means a market price specified in the standby 
loan agreement above which the project is re-
quired to make payments to the United States. 
‘‘(B) FULL TERM.—The term ‘full term’ 
means the full term of a standby loan agree-
ment, as specified in the agreement, which shall 
not exceed the lesser of 30 years or 90 percent 
of the projected useful life of the project (as de-
termined by the Secretary). 
‘‘(C) MARKET PRICE.—The term ‘market 
price’ means the average quarterly price of a 
petroleum price index specified in the standby 
loan agreement. 
‘‘(D) MINIMUM
PRICE.—The term ‘min-
imum price’ means a market price specified in 
the standby loan agreement below which the 
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United States is obligated to make disburse-
ments to the project. 
‘‘(E) OUTPUT.—The term ‘output’ means 
some or all of the liquid or gaseous transpor-
tation fuels produced from the project, as speci-
fied in the loan agreement. 
‘‘(F) PRIMARY TERM.—The term ‘primary 
term’ means the initial term of a standby loan 
agreement, as specified in the agreement, which 
shall not exceed the lesser of 20 years or 75 
percent of the projected useful life of the 
project (as determined by the Secretary). 
‘‘(G) QUALIFYING
CTL
PROJECT.—The 
term ‘qualifying CTL project’ means— 
‘‘(i) a commercial-scale project that 
converts coal to one or more liquid or gas-
eous transportation fuels; or 
‘‘(ii) not more than one project at a 
facility that converts petroleum refinery 
waste products, including petroleum coke, 
into one or more liquids or gaseous trans-
portation fuels, 
that demonstrates the capture, and sequestra-
tion or disposal or use of, the carbon dioxide 
produced in the conversion process, and that, 
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on the basis of a carbon dioxide sequestration 
plan prepared by the applicant, is certified by 
the Administrator of the Environmental Protec-
tion Agency, in consultation with the Secretary, 
as producing fuel with life cycle carbon dioxide 
emissions at or below the average life cycle car-
bon dioxide emissions for the same type of fuel 
produced at traditional petroleum based facili-
ties with similar annual capacities. 
‘‘(H) STANDBY
LOAN
AGREEMENT.—The 
term ‘standby loan agreement’ means a loan 
agreement entered into under paragraph (2). 
‘‘(2) STANDBY LOANS.— 
‘‘(A) LOAN
AUTHORITY.—The Secretary 
may enter into standby loan agreements with 
not more than six qualifying CTL projects, at 
least one of which shall be a project jointly or 
in part owned by two or more small coal pro-
ducers. Such an agreement— 
‘‘(i) shall provide that the Secretary 
will make a direct loan (within the mean-
ing of section 502(1) of the Federal Credit 
Reform Act of 1990) to the qualifying 
CTL project; and 
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‘‘(ii) shall set a cap price and a min-
imum price for the primary term of the 
agreement. 
‘‘(B) LOAN DISBURSEMENTS.—Such a loan 
shall be disbursed during the primary term of 
such agreement whenever the market price falls 
below the minimum price. The amount of such 
disbursements in any calendar quarter shall be 
equal to the excess of the minimum price over 
the market price, times the output of the 
project (but not more than a total level of dis-
bursements specified in the agreement). 
‘‘(C) LOAN REPAYMENTS.—The Secretary 
shall establish terms and conditions, including 
interest rates and amortization schedules, for 
the repayment of such loan within the full term 
of the agreement, subject to the following limi-
tations: 
‘‘(i) If in any calendar quarter during 
the primary term of the agreement the 
market price is less than the cap price, the 
project may elect to defer some or all of its 
repayment obligations due in that quarter. 
Any unpaid obligations will continue to ac-
crue interest. 
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‘‘(ii) If in any calendar quarter during 
the primary term of the agreement the 
market price is greater than the cap price, 
the project shall meet its scheduled repay-
ment obligation plus deferred repayment 
obligations, but shall not be required to 
pay in that quarter an amount that is 
more than the excess of the market price 
over the cap price, times the output of the 
project. 
‘‘(iii) At the end of the primary term 
of the agreement, the cumulative amount 
of any deferred repayment obligations, to-
gether with accrued interest, shall be am-
ortized (with interest) over the remainder 
of the full term of the agreement. 
‘‘(3) PROFIT-SHARING.—The Secretary is au-
thorized to enter into a profit-sharing agreement 
with the project at the time the standby loan agree-
ment is executed. Under such an agreement, if the 
market price exceeds the cap price in a calendar 
quarter, a profit-sharing payment shall be made for 
that quarter, in an amount equal to— 
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