Coal Liquid Fuel Act - Amends the Energy Policy Act of 2005 to authorize the Secretary of Energy to enter into: (1) standby loan agreements with up to six qualifying CTL projects, at least one of which shall be owned by two or more small coal producers; and (2) a profit-sharing agreement with the project at the time the standby loan agreement is executed.
Defines "qualifying CTL project" as: (1) a commercial-scale project that converts coal to liquid or gaseous transportation fuels; or (2) not more than one project at a facility that converts petroleum refinery waste products, including petroleum coke, into liquids or gaseous transportation fuels, and demonstrates the capture, sequestration, or disposition of carbon dioxide produced in the conversion process.
[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2208 Introduced in House (IH)]
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 Committee 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 within 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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Coal Liquid Fuel Act''.
SEC. 2. STANDBY LOANS FOR QUALIFYING 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 the following new subsection:
``(k) Standby Loans for Qualifying CTL Projects.--
``(1) Definitions.--For purposes of this subsection:
``(A) Cap price.--The term `cap price' means a
market price specified in the standby loan agreement
above which the project is required to make payments to
the United States.
``(B) Full term.--The term `full term' means the
full term of a standby loan agreement, 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 determined 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 `minimum price'
means a market price specified in the standby loan
agreement below which the United States is obligated to
make disbursements to the project.
``(E) Output.--The term `output' means some or all
of the liquid or gaseous transportation fuels produced
from the project, as specified 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 gaseous
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 transportation fuels,
that demonstrates the capture, and sequestration or
disposal or use of, the carbon dioxide produced in the
conversion process, and that, on the basis of a carbon
dioxide sequestration plan prepared by the applicant,
is certified by the Administrator of the Environmental
Protection Agency, in consultation with the Secretary,
as producing fuel with life cycle carbon dioxide
emissions at or below the average life cycle carbon
dioxide emissions for the same type of fuel produced at
traditional petroleum based facilities 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 producers. Such an agreement--
``(i) shall provide that the Secretary will
make a direct loan (within the meaning of
section 502(1) of the Federal Credit Reform Act
of 1990) to the qualifying CTL project; and
``(ii) shall set a cap price and a minimum
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
disbursements 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 limitations:
``(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 accrue interest.
``(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 repayment
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, together with
accrued interest, shall be amortized (with
interest) over the remainder of the full term
of the agreement.
``(3) Profit-sharing.--The Secretary is authorized to enter
into a profit-sharing agreement with the project at the time
the standby loan agreement 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--
``(A) the excess of the market price over the cap
price, times the output of the project; less
``(B) any loan repayments made for the calendar
quarter.
``(4) Compliance with federal credit reform act.--
``(A) Upfront payment of cost of loan.--No standby
loan agreement may be entered into under this
subsection unless the project makes a payment to the
United States that the Office of Management and Budget
determines is equal to the cost of such loan
(determined under 502(5)(B) of the Federal Credit
Reform Act of 1990). Such payment shall be made at the
time the standby loan agreement is executed.
``(B) Minimization of risk to the government.--In
making the determination of the cost of the loan for
purposes of setting the payment for a standby loan
under subparagraph (A), the Secretary and the Office of
Management and Budget shall take into consideration the
extent to which the minimum price and the cap price
reflect historical patterns of volatility in actual oil
prices relative to projections of future oil prices,
based upon publicly available data from the Energy
Information Administration, and employing statistical
methods and analyses that are appropriate for the
analysis of volatility in energy prices.
``(C) Treatment of payments.--The value to the
United States of a payment under subparagraph (A) and
any profit-sharing payments under paragraph (3) shall
be taken into account for purposes of section
502(5)(B)(iii) of the Federal Credit Reform Act of 1990
in determining the cost to the Federal Government of a
standby loan made under this subsection. If a standby
loan has no cost to the Federal Government, the
requirements of section 504(b) of such Act shall be
deemed to be satisfied.
``(5) Other provisions.--
``(A) No double benefit.--A project receiving a
loan under this subsection may not, during the primary
term of the loan agreement, receive a Federal loan
guarantee under subsection (a) of this section, or
under other laws.
``(B) Subrogation, etc.--Subsections (g)(2)
(relating to subrogation), (h) (relating to fees), and
(j) (relating to full faith and credit) shall apply to
standby loans under this subsection to the same extent
they apply to loan guarantees.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee 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 within the jurisdiction of the committee concerned.
Referred to the Committee 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 within the jurisdiction of the committee concerned.
Referred to the Committee 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 within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Energy and Air Quality.
Referred to the Subcommittee on Energy and Environment.
Motion to Discharge Committee filed by Mr. Roskam. Petition No: 110-12. (<a href="http://clerk.house.gov/110/lrc/pd/Petitions/Dis12.htm">Discharge petition</a> text with signatures.)
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line