Conrad Unveils Sweeping National Energy Plan

Press Release

Legislation Would Boost Domestic Production, Bring Relief to Consumers

Senator Kent Conrad today introduced comprehensive energy legislation intended to lessen America's dependence on foreign oil, reduce gas prices, and strengthen the national economy.

Senator Conrad's "Fulfilling U.S. Energy Leadership Act" -- also known as the FUEL Act -- is a blueprint for a national energy policy that would support domestic oil and gas production, including an environmentally responsible expansion of offshore activity, while also investing in the development of renewable fuels. The bill also promotes more alternative fuels and clean sources of electricity, including clean coal, and nuclear energy.

"American families are struggling. Soaring gas prices are putting a squeeze on their budgets, forcing many to make tough choices as they struggle to make ends meet," Senator Conrad said. "Our dependence on foreign energy threatens both our economic security and our national security. The FUEL Act takes a responsible approach to securing America's energy independence."

Through a mix of tax credits, grants and directives, Senator Conrad's bill would increase production of domestic oil, gas and coal, as well as renewable and alternative fuels;boost manufacturing and use of electric vehicles; and dramatically cut America's need for foreign oil.

"The FUEL Act is a balanced plan to reduce America's dependence on foreign oil. A key component of my plan is additional investment in one of America's biggest powerhouses -- North Dakota," Senator Conrad said. "The FUEL Act provides incentives for biofuels production and incentives for our coal-based facilities and rural electric cooperatives that utilize clean energy technologies. This bill could provide a big boost for both our nation and North Dakota."

Several North Dakota energy and agriculture organizations have come out in support of Senator Conrad's FUEL Act, including the North Dakota Corn Growers Association, North Dakota Association of Rural Electric Cooperatives, and Great River Energy (GRE).

"We appreciate Senator Conrad's leadership in pulling together a wide range of provisions that would help the energy industry in North Dakota and across the nation," said Rick Lancaster, GRE's Vice President, Generation.

"Sen. Conrad's legislation is a comprehensive approach to energy use and development. It will help move America away from imported sources of energy by providing incentives to increase domestic energy supply, use energy more wisely, and invest in new energy technologies," said Dennis Hill, the general manager of North Dakota Association of Rural Electric Cooperatives.
Senator Conrad's FUEL Act
Fact Sheet

The Fulfilling U.S. Energy Leadership Act -- also known as the FUEL Act -- is a blueprint for a national energy policy intended to lessen America's dependence on foreign oil, reduce gas prices, and strengthen the national economy. Some aspects of the FUEL Act include:

Boosting Alternative Fuels and Highly Fuel Efficient Vehicles

The transportation sector accounts for nearly half of U.S. oil consumption, so reducing the use of gas and diesel as transportation fuels by increasing gas mileage and switching to electric vehicles and other fuel sources is the best way to reduce our dependence on foreign oil. The FUELAct:

* Requires a national plan for broad deployment of electric vehicles and authorizes $2 billion to selected communities across the country to install infrastructure and incentives to deploy 400,000 electric vehicles.
* Provides a tax credit for the purchase of highly efficient vehicles, starting at $500 and rising to $2,500 for vehicles that achieve more than 50 miles per gallon.

Expanding Oil and Gas Development

The Gulf of Mexico remains one of the world's most important places for deepwater oil and gas development. The FUEL Act:

* Directs the U.S. Department of Interior to offer leases for oil and gas exploration in the eastern Gulf of Mexico and, if requested by the governor and state legislature, in the mid- and southern Atlantic areas. The areas must be at least 50 miles beyond the coastline. Proposal also provides for expanded revenue sharing with participating states.
* Establishes a new offshore safety office within the Interior Department.

Alternative Fuel Deployment

Biofuels -- fuels derived from biomass --are a key player in the alternative fuels market and are increasingly seen as sustainable alternatives to fossil fuels. The FUEL Act:

* Extends a modified ethanol tax credit (VEETC) through 2014
* Extending and expanding a tax credit for alternative vehicle refueling stations.
* Extends through 2016 the $1.00 per gallon production tax credit for biodiesel, and through 2016, the $1.00 per gallon production tax credit for diesel fuel created from biomass.
* Authorizes $6 billion for research and commercial application of advanced biofuels and bioenergy power systems.

Support for Advanced Battery Technology

One of the biggest challenges with the development of electric vehicles has been limited battery life. The FUEL Act:

* Authorizes $130 million for the Secretary of Energy to establish a "Next Step Energy Storage Research Center" to focus on research, development, and deployment of advanced battery technologies and other novel vehicle- and utility-scale energy storage technologies.
* Requires the Secretary of Energy to create a "clean energy standard" that promotes the use of renewable and other low-carbon sources of electricity.

Incentivizes Development of Clean Coal Technology

With one quarter of the world's coalreserves within the United States, the FUEL Act boosts development of clean coal technologies in an effort to utilize this low cost energy. The FUEL Act :

* Creates a 30 percent investment tax credit for technology to capture and store carbon from coal-based energy facilities. The credit would be available to the first 20 newly constructed and 20 retrofitted projects.
* Provides $5 billion for clean coal bonds for use by rural electric cooperatives and public power systems.

Supports Expansion of Nuclear Power
With soaring energy demand in the developing world, there has been a new focus on nuclear power. The FUEL Act:

* Provides $36 billion in additional authority under DOE's Innovative Technologies Loan Guarantee Program for nuclear power and other innovative energy sources.
* Establishes research programs to investigate small modular reactors, advanced nuclear fuels and fuel systems, and to develop a 15 year strategy to address the nation's spent nuclear fuel.

Energy Efficiency

In an effort to reduce energy consumption and promote efficiency, the FUEL ACT:

* Extends through 2016 the 30 percent tax credit ( $1500 maximum) for energy-efficient property in existing homes.
* Authorizes $4.9 billion for the Rural Utilities Service to provide interest-free loans to rural electric cooperatives to provide low interest loans to qualified consumers to implement energy efficiency measures.

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