Bunning, Obama Re-Introduce Blueprint For Energy Independence

BUNNING, OBAMA RE-INTRODUCE BLUEPRINT FOR ENERGY INDEPENDENCE

U.S. Senators Jim Bunning (R-KY) and Barack Obama (D-IL) today introduced the "Coal-To-Liquid Fuel Promotion Act of 2007." This bipartisan piece of legislation is based on the bill first introduced by Senators Bunning and Obama last spring and would help create the infrastructure needed for large-scale production of Coal-to-Liquids (CTL) fuel. It is a comprehensive bill that expands tax incentives, creates planning assistance, and develops Department of Defense support for the domestic CTL industry.

In the CTL process, coal is gasified, the gas is run through the Fischer-Tropsch process, and the resulting fuel is refined into products like jet and diesel fuels. The final product is cleaner than conventional fuels because most of the sulfur and nitrogen is removed during the Fischer-Tropsch process.

"This bi-partisan piece of legislation that I have re-introduced with Senator Obama today will lay out a plan for the 110th Congress on how we need to work together for energy independence. CTL technology offers America the chance to capitalize on an abundant domestic resource that is found in eastern and western Kentucky and across the country. To help spread the message of how important the CTL process is for energy independence Senator Obama and I will form the Senate Coal-to-Liquid Fuel Caucus to help lead this fight. With a strong investment in CTL, America will wean itself off of foreign sources of energy, and at the same time create jobs for working families back home. CTL is a viable, environmentally friendly energy resource that will help cure America's addiction to oil."

Obama said, "The people I meet in town hall meetings back home would rather fill their cars with fuel made from coal reserves in Southern Illinois than with fuel made from crude reserves in Saudi Arabia. We already have the technology to do this in a way that's both clean and efficient. What we've been lacking is the political will. This common sense, bipartisan legislation will greatly increase investment in coal-to-liquid fuel technology, which will create jobs and lessen our dependence on foreign oil. Illinois Basin Coal has more untapped energy potential than the oil reserves of Saudi Arabia and Kuwait combined. Instead of enriching the Saudis, we can use these reserves to bring a renaissance for Illinois coal."

The Coal-to-Liquid Fuel Promotion Act of 2007 is a three-part, comprehensive effort to create a vibrant domestic CTL fuel market. First, this bill enables the Department of Energy to provide loan guarantees for construction and direct loans for the planning and permitting of CTL plants. Loan guarantees will encourage private investment and planning loans will help companies prepare a plant for construction. Second, this legislation will expand investment tax credits and expensing provisions to include coal-to-liquids plants, extend the Fuel Excise Tax credit, and expand the credit for equipment used to capture and sequester carbon emissions. These tax incentives build on the loans and loan guarantees by offering tax breaks during the multiple-year construction phase and during initial production at the plant. Third, this bill provides the Department of Defense the funding and authorization to purchase, test, and integrate these fuels into the Strategic Petroleum Reserve and military fuel supplies.

http://bunning.senate.gov/index.cfm?FuseAction=PressReleases.Detail&PressRelease_id=1469&Month=1&Year=2007