H. R. 6—162
(B) the amount of the loan (when combined with 
amounts available to the borrower from other sources) will 
be sufficient to carry out the project; and 
(C) there is a reasonable prospect that the borrower 
will repay the principal and interest on the loan. 
(3) INTEREST; TERM.—The direct loan provided under sub-
section (b) shall bear interest at a rate and for a term that 
the Secretary determines appropriate, after consultation with 
the Secretary of the Treasury, taking into account the needs 
and capacities of the borrower and the prevailing rate of 
interest for similar loans made by public and private lenders. 
(4) ADDITIONAL
TERMS
AND
CONDITIONS.—The Secretary 
may require any other terms and conditions that the Secretary 
determines to be appropriate. 
(d) USE OF PAYMENTS.—The Secretary shall retain any pay-
ments of principal and interest on the direct loan provided under 
subsection (b) to support energy research and development activi-
ties, to remain available until expended, subject to any other condi-
tions in an applicable appropriations Act. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as are necessary to provide the 
cost of a direct loan under subsection (b). 
SEC. 413. WESTERN INTEGRATED COAL GASIFICATION DEMONSTRA-
TION PROJECT. 
(a) IN GENERAL.—Subject to the availability of appropriations, 
the Secretary shall carry out a project to demonstrate production 
of energy from coal mined in the western United States using 
integrated gasification combined cycle technology (referred to in 
this section as the ‘‘demonstration project’’). 
(b) COMPONENTS.—The demonstration project— 
(1) may include repowering of existing facilities; 
(2) shall be designed to demonstrate the ability to use 
coal with an energy content of not more than 9,000 Btu/lb.; 
and 
(3) shall be capable of removing and sequestering carbon 
dioxide emissions. 
(c) ALL TYPES OF WESTERN COALS.—Notwithstanding the fore-
going, and to the extent economically feasible, the demonstration 
project shall also be designed to demonstrate the ability to use 
a variety of types of coal (including subbituminous and bituminous 
coal with an energy content of up to 13,000 Btu/lb.) mined in 
the western United States. 
(d) LOCATION.—The demonstration project shall be located in 
a western State at an altitude of greater than 4,000 feet above 
sea level. 
(e) COST SHARING.—The Federal share of the cost of the dem-
onstration project shall be determined in accordance with section 
988. 
(f) LOAN GUARANTEES.—Notwithstanding title XIV, the dem-
onstration project shall not be eligible for Federal loan guarantees. 
SEC. 414. COAL GASIFICATION. 
The Secretary is authorized to provide loan guarantees for 
a project to produce energy from a plant using integrated gasifi-
cation combined cycle technology of at least 400 megawatts in 
capacity that produces power at competitive rates in deregulated
H. R. 6—163
energy generation markets and that does not receive any subsidy 
(direct or indirect) from ratepayers. 
SEC. 415. PETROLEUM COKE GASIFICATION. 
The Secretary is authorized to provide loan guarantees for 
at least 5 petroleum coke gasification projects. 
SEC. 416. ELECTRON SCRUBBING DEMONSTRATION. 
The Secretary shall use $5,000,000 from amounts appropriated 
to initiate, through the Chicago Operations Office, a project to 
demonstrate the viability of high-energy electron scrubbing tech-
nology on commercial-scale electrical generation using high-sulfur 
coal. 
SEC. 417. DEPARTMENT OF ENERGY TRANSPORTATION FUELS FROM 
ILLINOIS BASIN COAL. 
(a) IN GENERAL.—The Secretary shall carry out a program 
to evaluate the commercial and technical viability of advanced 
technologies for the production of Fischer-Tropsch transportation 
fuels, and other transportation fuels, manufactured from Illinois 
basin coal, including the capital modification of existing facilities 
and the construction of testing facilities under subsection (b). 
(b) FACILITIES.—For the purpose of evaluating the commercial 
and technical viability of different processes for producing Fischer-
Tropsch transportation fuels, and other transportation fuels, from 
Illinois basin coal, the Secretary shall support the use and capital 
modification of existing facilities and the construction of new facili-
ties at— 
(1) Southern Illinois University Coal Research Center; 
(2) University of Kentucky Center for Applied Energy 
Research; and 
(3) Energy Center at Purdue University. 
(c) GASIFICATION PRODUCTS TEST CENTER.—In conjunction with 
the activities described in subsections (a) and (b), the Secretary 
shall construct a test center to evaluate and confirm liquid and 
gas products from syngas catalysis in order that the system has 
an output of at least 500 gallons of Fischer-Tropsch transportation 
fuel per day in a 24-hour operation. 
(d) MILESTONES.— 
(1) SELECTION OF PROCESSES.—Not later than 180 days 
after the date of enactment of this Act, the Secretary shall 
select processes for evaluating the commercial and technical 
viability of different processes of producing Fischer-Tropsch 
transportation fuels, and other transportation fuels, from 
Illinois basin coal. 
(2) AGREEMENTS.—Not later than 1 year after the date 
of enactment of this Act, the Secretary shall offer to enter 
into agreements— 
(A) to carry out the activities described in this section, 
at the facilities described in subsection (b); and 
(B) for the capital modifications or construction of the 
facilities at the locations described in subsection (b). 
(3) EVALUATIONS.—Not later than 3 years after the date 
of enactment of the Act, the Secretary shall begin, at the 
facilities described in subsection (b), evaluation of the technical 
and commercial viability of different processes of producing 
Fischer-Tropsch transportation fuels, and other transportation 
fuels, from Illinois basin coal.
H. R. 6—164
(4) CONSTRUCTION OF FACILITIES.— 
(A) IN GENERAL.—The Secretary shall construct the 
facilities described in subsection (b) at the lowest cost prac-
ticable. 
(B) GRANTS
OR
AGREEMENTS.—The Secretary may 
make grants or enter into agreements or contracts with 
the institutions of higher education described in subsection 
(b). 
(e) COST SHARING.—The cost of making grants under this sec-
tion shall be shared in accordance with section 988. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out this section $85,000,000 for the 
period of fiscal years 2006 through 2010. 
Subtitle C—Coal and Related Programs 
SEC. 421. AMENDMENT OF THE ENERGY POLICY ACT OF 1992. 
(a) AMENDMENT.—The Energy Policy Act of 1992 (42 U.S.C. 
13201 et seq.) is amended by adding at the end the following: 
‘‘TITLE XXXI—CLEAN AIR COAL 
PROGRAM 
‘‘SEC. 3101. PURPOSES. 
‘‘The purposes of this title are to— 
‘‘(1) promote national energy policy and energy security, 
diversity, and economic competitiveness benefits that result 
from the increased use of coal; 
‘‘(2) mitigate financial risks, reduce the cost of clean coal 
generation, and increase the marketplace acceptance of clean 
coal generation and pollution control equipment and processes; 
and 
‘‘(3) facilitate the environmental performance of clean coal 
generation. 
‘‘SEC. 3102. AUTHORIZATION OF PROGRAM. 
‘‘(a) IN GENERAL.—The Secretary shall carry out a program 
of financial assistance to— 
‘‘(1) facilitate the production and generation of coal-based 
power, through the deployment of clean coal electric generating 
equipment and processes that, compared to equipment or proc-
esses that are in operation on a full scale— 
‘‘(A) improve— 
‘‘(i) energy efficiency; or 
‘‘(ii) environmental performance consistent with 
relevant Federal and State clean air requirements, 
including those promulgated under the Clean Air Act 
(42 U.S.C. 7401 et seq.); and 
‘‘(B) are not yet cost competitive; and 
‘‘(2) facilitate the utilization of existing coal-based elec-
tricity generation plants through projects that— 
‘‘(A) deploy advanced air pollution control equipment 
and processes; and 
‘‘(B) are designed to voluntarily enhance environmental 
performance above current applicable obligations under the