[Congressional Record Volume 147, Number 159 (Friday, November 16, 2001)]
[Senate]
[Pages S12004-S12005]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BURNS:
  S. 1718. A bill to amend the Internal Revenue Code of 1986 to extend 
section 29 to other facilities; to the Committee on Finance.
  Mr. BURNS. Mr. President, today I rise to introduce the Clean 
Alternative Fuels Incentives Act of 2001. This bill extends and limits 
the credit of producing fuel from non-conventional sources to 
facilities that produce qualified fuels using technologies that provide 
certain environmental benefits, but only if such facilities produce 
enhanced value synthetic fuels from coal.
  It is important to outline the goals of this legislation at the 
outset. The four primary goals of this bill are all very important to 
the future of this Nation. First, the use of alternative fuels reduces 
our Nation's trade imbalance and reliance on foreign energy sources. 
Second, the cleaner, alternative fuels emit cleaner byproduct into the 
environment. Third, these technologies produce jobs in the United 
States. Fourth, they encourage the development of technologies that 
will be economically viable after the short period during which the 
incentive is provided.
  Starting with the energy crisis in the 1970s, Congress acted on 
numerous occasions to provide tax credits intended to develop 
alternative fuels. Prior sessions of Congress took these steps in 
recognition of the need to encourage the development and use of 
alternative fuels, which they hoped would help lead our Nation towards 
energy independence.
  Today our Nation not only needs to continue its efforts to develop 
alternative fuel resources, but given our constantly growing energy 
needs we must consider the environmental impact that conventional and 
non-conventional fuels have on our environment, particularly in light 
of the Clean Air Act.
  In order to maximize the most efficient use of our Nation's reserves, 
this Congress needs to commit to the development of clean alternative 
fuels. My home State of Montana has vast coal reserves. In fact, many 
times our State has been referred to as the ``Saudi Arabia of coal.'' 
Not only do we have vast reserves, but also with clean coal 
technologies we can use these resources and do little harm to the 
environment.
  Those who say that coal is not one of the answers to energy 
independence because of its environmental impact are dead wrong. Coal-
fired plants generate over 50 percent of our Nation's electricity. 
Interestingly, the Energy Information Administration, EIA, reported 
that Montana's emissions of nitrogen oxide, NOx, sulfur dioxide, SO2, 
and carbon dioxide, CO2, all decreased from 1986-1996 while producing 
the same amount of electricity. This proves to me that our coal 
technologies are improving. Folks, I believe the environmental 
emissions will continue to improve and if you provide incentives to 
help clean alternative fuels reach the marketplace, some day we will 
reach energy independence in this Nation.
  One question that some of you may have is, ``Are these proven 
technologies?'' These are proven technologies, but to make the 
continued development of these technologies a reality, the Congress 
needs to provide meaningful incentives. The bill that I offer today 
accomplishes exactly that, it provides clean alternative sources of 
energy a real opportunity to bring energy independence to this Nation.
  This bill would extend the non-conventional fuels credit for 
facilities that produce synthetic fuel from coal using a technology 
that results in: (1) Measurable reductions of certain emissions when 
producing the fuel or when the fuel is burned as a fuel, not including 
any reductions caused by dilution and (2) measurable increases in the 
value of coal, not including any increases caused by additives. These 
two factors will lead to accomplishment of the four goals I stated 
previously. First, the use of alternative fuels reduces our Nation's 
trade imbalance and reliance on foreign energy sources. Second, the 
technologies provide cleaner emissions into the environment. Third, 
these technologies produce jobs in the United States. Fourth, they 
encourage the development of technologies that will be economically 
viable after the short period during which the incentive is provided.

[[Page S12005]]

  I hope that Members of this body will support this important piece of 
legislation, which helps our Nation at a time of dire need.
                                 ______