I 
109TH CONGRESS 
2D SESSION 
H. R. 6356 
To provide for the research, development, and demonstration of coal 
gasification technology as an energy source in ethanol production. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 5, 2006 
Mr. COSTELLO introduced the following bill; which was referred to the 
Committee on Science 
A BILL 
To provide for the research, development, and demonstration 
of coal gasification technology as an energy source in 
ethanol production. 
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 ‘‘America’s Domestic 
Fuels Act’’. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) Currently, the bulk of energy used in the 
production of ethanol comes from natural gas. While 
coal is used for this purpose, advanced coal gasifi-
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cation technologies would increase the use of coal 
and reduce air emissions. 
(2) In coal gasification-based systems, pollut-
ant-forming impurities can be separated from the 
gaseous stream before combustion. As much as 99 
percent of sulfur and other pollutants can be re-
moved and processed into commercial products. Eth-
anol plants using coal gasification technology offer 
many benefits. 
(3) Coal potentially is an economically desirable 
alternative to natural gas as the fuel in ethanol pro-
duction facilities. The Energy Information Adminis-
tration projects that in 2025 the industrial cost of 
natural gas will be $5.99 per million Btu but coal 
will only be $1.86 per million Btu. 
(4) Coal is our most price-consistent fossil fuel. 
Natural gas is our most price-volatile and unpredict-
able fuel. In 2005 alone, natural gas ranged from 
$5.75 to over $15.00 per million Btu. Coal therefore 
has the potential to allow ethanol plants to better 
manage their costs. 
(5) Coal is a domestic fuel with substantial re-
serves and growing production. The United States 
has a vast supply of domestic coal resources to meet 
soaring energy needs. 
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(6) Once demonstrated for this purpose, coal 
should offer ethanol producers the opportunity to 
sign long-term contracts. 
(7) As the Governor’s Ethanol Coalition noted, 
increased ethanol production is an important step 
toward improved national security. Utilizing coal as 
a major fuel source for ethanol production could 
eliminate the need to import natural gas for the 
process. 
(8) Using domestic coal to produce ethanol has 
the potential to create jobs, spur new businesses, 
and generate tax revenues for local communities. 
(9) The United States has ambitious plans to 
rapidly grow ethanol production, but the scale of this 
growth will depend upon the availability of an eco-
nomical fuel source. Events over the past few years 
have demonstrated that we do not want to be overly 
dependent on any one fuel source. Thus, dependency 
on natural gas for ethanol production is undesirable. 
Diversifying the fuel source used for ethanol produc-
tion by increasing the number of ethanol plants that 
are coal fueled reduces risk. 
SEC. 3. RESEARCH, DEVELOPMENT, AND DEMONSTRATION. 
(a) GRANT PROGRAM.—The Secretary of Energy 
shall provide grants to States for the conduct of the re-
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search needed to expedite the use of coal gasification as 
an energy source in ethanol production. Such research as-
sistance shall be provided— 
(1) to develop the knowledge base that will be 
needed to expediently permit coal gasification fueled 
ethanol plants; 
(2) to aid ethanol producers in the evaluation 
and inclusion of coal gasification technologies in ex-
isting or new ethanol plants; 
(3) to understand how to reduce the capital 
costs of coal gasification as an energy source in eth-
anol production, including making use of byproducts 
from agricultural practice, and biomass material or 
blends, in the processing of ethanol; and 
(4) to understand the applicability of carbon di-
oxide capture and sequestration technologies, includ-
ing adsorption and absorption techniques and chem-
ical processes, to coal gasification as an energy 
source in ethanol production. 
(b) DEMONSTRATION PROJECT.—At least 1 pilot 
project receiving assistance under this section shall be 
fueled by coal gasification and located in an area with high 
sulfur bituminous coal reserves. 
(c) RESEARCH AND DEVELOPMENT AUTHORIZATION 
OF APPROPRIATIONS.—There are authorized to be appro-
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priated to the Secretary of Energy for carrying out re-
search and development activities under this section 
$5,000,000 for fiscal year 2007. 
(d) DEMONSTRATION PROJECT AUTHORIZATION OF 
APPROPRIATIONS.—There are authorized to be appro-
priated to the Secretary of Energy for carrying out dem-
onstration activities under this section $20,000,000 for 
fiscal year 2007. 
Æ 
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