Rahall Report:It's Time to Replace The "Gas Pump" with the "Coal Pump"
By Rep. Nick J. Rahall
Washington, DC --As part of a continuing effort to wean America from its dependence on foreign petroleum, I recently introduced a bill in Congress that will foster the widespread commercialization of transportation fuel produced from coal. The "Coal-to-Liquid Fuel Energy Act of 2006" aims to jumpstart a coal-to-liquid industry for West Virginia and America, and ensure its long-term viability.
Rising oil prices, increasing energy consumption, and instability in oil producing regions have aligned to create a unique window of opportunity to take a renewed look at America's energy portfolio. In the past, the U.S. has often reacted to similar circumstances with short-term measures that provide only temporary relief to hardworking citizens in West Virginia and across the country.
This legislation I have introduced seeks to address this situation head-on by proposing a comprehensive approach to developing and maintaining a coal liquid fuels industry. The bill aims to stimulate production, marketing, and use of the fuels to help ensure its viable, long-term success. With continued federal investment in such an initiative, I know that we can make the coal-to-liquid industry a viable source of alternative energy across America.
The "Coal-to-Liquid Fuel Energy Act of 2006" would establish a loan program within the Department of Energy to commercialize coal-to-liquid fuel facilities; empower the Energy Secretary to purchase coal-to-liquid fuels for the Strategic Petroleum Reserve; and extend through 2020 the availability of a relatively new federal fuel excise tax credit for coal-to-liquid transportation fuels. This same approach has helped spur corn-based ethanol as a viable commercial alternative to petroleum fuels and could work for coal-based fuels as well.
It's my belief that if our nation will simply take the long view, and make the necessary investments in coal-to-liquid now, we can cushion the blow of future fuel cost spikes and valleys that inflict economic pain on working families.
The concept of liquefying coal for use in motor vehicles is a viable technology is not a new one - and has been in use for decades in many other countries. For example, South Africa has used liquefied coal for more than half a century. Today, the Sasol facilities provide 30 percent of that country's liquid fuel requirements. China has also been aggressively pursuing the development of coal-to-liquid technologies in an effort to meet its own expanding energy demands.
It is clear that other world nations have realized the value of coal in answering their transportation fuel needs. It is time the U.S. caught on - and I know that West Virginia can lead the way.
West Virginia coal is ready and able to address America's energy challenges, but we need the tools at our disposal to achieve that success. As we seek to replace America's gas pumps with coal pumps, I am confident that this bill will move us in the right direction to see that happen.