[Congressional Record Volume 153, Number 5 (Wednesday, January 10, 2007)]
[Senate]
[Page S354]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  COAL TO LIQUIDS FUEL PRODUCTION ACT

  Mr. OBAMA. Mr. President, I am pleased to join my distinguished 
colleague, the Senator from Kentucky, Mr. Bunning, in introducing this 
important legislation.
  The geologic deposit known as Illinois Basin Coal--which lies beneath 
Illinois, Indiana and Kentucky--has more untapped energy potential than 
the combined oil reserves of Saudi Arabia and Kuwait. This coal deposit 
underlies more than 65 percent of the surface of the State of Illinois, 
with recoverable reserves estimated to be in excess of 38 billion tons 
from my State alone. Moreover, with just a glance at a map of Illinois, 
one can see that my State is dotted with towns that reflect our 200-
year coal mining history--towns with names like Carbondale, Energy, 
Carbon Hill, Coal City, and Zeigler.
  In some parts of Illinois, however, these names are just shadows of 
the past. More than 15 years ago, upon the enactment of the Clean Air 
Act Amendments of 1990, coal mining in Illinois was drastically 
transformed. Given the high sulfur content of Illinois coal, many users 
switched from Illinois coal to other, lower sulfur coals mined out 
West. As a result, thousands of Illinois jobs vanished, and with it, 
the life force of many of these towns. Air quality throughout the 
Nation improved drastically, but vast energy resources were rendered 
idle, awaiting new future technologies.
  Today, we are exploring those new technologies, which promise a 
renaissance for coal communities. Two east central Illinois towns, for 
example, are under consideration for the billion-dollar FutureGen 
project, which many of my colleagues know will be the first near zero-
emissions coal-fired powerplant in the world.
  But coal from the Illinois Basin, with its high energy content, is a 
superb feedstock not just for power generation, as promised by 
FutureGen, but also for the manufacture of Fischer-Tropsch--FT--fuel. 
Created in the 1920s by German scientists and used during World War II, 
the FT process is the major fuel source for vehicles in South Africa. 
In both nations, the production of diesels from coal was developed as a 
response to petroleum embargoes against those nations at various points 
in their history.
  Meanwhile, in the United States, more than 55 percent of our fuel 
consumption continues to come from foreign oil, and that number is 
growing. Our economy is exposed to potential jeopardy from oil supply 
disruptions and price shocks. We must diversify our fuel supply, and 
that means all domestic options should be on the table for 
consideration.
  Fischer-Tropsch fuel is interchangeable with standard diesel, 
functioning in existing engines with little or no modification. FT 
fuels can be transported in our existing fuel distribution 
infrastructure. Moreover, FT fuels have far lower emissions than 
standard diesel. The Department of Defense, the largest consumer of 
petroleum in the United States, has great interest in acquiring this 
fuel. But Fischer-Tropsch is not manufactured in the U.S., and no 
focused federal initiatives exist to encourage the development of a 
Fischer-Tropsch manufacturing base.
  The bill introduced by Senator Bunning and myself will provide that 
Federal focus. This bill will help to create a new market for abandoned 
and abundant Illinois Basin coal, revitalizing economic development and 
jobs in the coal communities of our States. It will help develop the 
capital infrastructure for producing FT fuels at the levels necessary 
for preliminary testing by the Department of Defense and for the 
private sector. It will explore carbon sequestration for this 
technology before we can pursue construction. And it will play a key 
role in reducing our Nation's dependence on foreign oil.
  I know that there are no perfect answers in the pursuit of energy 
independence. There is no single fuel or feedstock that offers 
affordability, reliability, transportability, and sensitivity to the 
environment in equal ways. But, as we pursue the best course of action 
for our energy independence, we cannot delay action until we reach the 
perfect solution. Maintaining our dependency on unstable regions of the 
world for the fuel that we cannot live without is far too great a risk. 
Actions taken today must be accompanied by rigorous concurrent debate 
in preparation for the second and third generation choices of our 
alternative fuel infrastructure.
  I urge my colleagues to support this bill.

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