[Congressional Record Volume 152, Number 90 (Wednesday, July 12, 2006)]
[Extensions of Remarks]
[Page E1385]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 COAL-TO-LIQUID FUEL ENERGY ACT OF 2006

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                         HON. NICK J. RAHALL II

                            of west virginia

                    in the house of representatives

                        Wednesday, July 12, 2006

  Mr. RAHALL. Mr. Speaker, while other industrialized countries have 
embraced weaning themselves off imported oil by commercializing coal-
to-liquid fuel technologies for transportation fuels, the United States 
has lagged behind in this endeavor as it has with other alternative 
fuels primarily due to the lack of will and the price of oil.
  South Africa, for instance, at its Sasol facilities, is meeting 30 
percent of its liquid fuel requirements through coal liquefaction using 
a technology originally developed in Germany during the 1920s. 
Worldwide oil prices are now at a level that would make more attractive 
investments in large-scale coal-to-liquid fuel facilities in this 
country. However, as evident with other alternative fuels such as 
ethanol, federal incentives will be necessary in order to sustain this 
type of an effort over the long-term.
  The ``Coal-to-Liquid Fuel Energy Act of 2006'' proposes to take an 
omnibus approach to the commercialization of coal liquefaction 
technology by stimulating the production, marketing, and use of coal-
to-liquid fuels. The bill would:
  Amend the Energy Policy Act of 2005 to explicitly make commercial 
coal-to-liquid fuel facilities eligible under that law's energy project 
loan guarantee program.
  Establish a loan program within the Department of Energy to 
commercialize coal-to-liquid fuel facilities.
  Authorize as the Energy Secretary deems appropriate the purchase of 
coal-to-liquid fuels for Strategic Petroleum Reserve purposes.
  Extend through 2020 the availability of the alternative fuel excise 
tax credit for coal-to-liquid fuels authorized by the 2005 federal 
highway and transit reauthorization legislation (SAFETEA-LU).

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