As part of his continuing effort to wean America from its dependence on petroleum, U.S. Rep. Nick J. Rahall, II ( D-WV) has introduced the "Coal-to-Liquid Fuel Energy Act of 2006" in a bid to foster the widespread commercialization of transportation fuel produced from coal.

"While other industrialized countries have embraced weaning themselves off imported oil by commercializing coal-to-liquid fuel technologies for transportation, the United States has lagged behind," Rahall said. "My bill aims to jumpstart a coal-to-liquid industry for West Virginia and America and ensure its long-term viability."

Rising oil prices, increasing energy consumption, and instability in oil producing regions have aligned to create a unique window of opportunity to take a renewed look at America's energy portfolio. In the past, the U.S. has often reacted to similar circumstances with short-term measures that provide temporary relief to high energy prices. The Rahall bill intends to help maintain the coal-to-liquids industry for the long-term through continuing federal investment.

"If our Nation will simply take the long view, and make the necessary investments in coal-to-liquids now, we can cushion the blow of future fuel cost spikes and valleys that inflict economic pain on working families," Rahall said.

The "Coal-to-Liquid Fuel Energy Act" proposes to take a comprehensive approach to the development of a coal liquid fuels industry. The bill aims to stimulate production, marketing, and use of the fuels to help ensure its viable, long-term success by:

• Amending the Energy Policy Act of 2005 to explicitly make commercial coal-to-liquid fuel facilities eligible for an existing federal energy project loan guarantee program;
• Establishing a loan program within the Department of Energy to commercialize coal-to-liquid fuel facilities;
• Empowering the Energy Secretary to purchase coal-to-liquid fuels for the Strategic Petroleum Reserve; and
•  Extending through 2020 the availability of a relatively new federal fuel excise tax credit for coal-to-liquid transportation fuels (borrowing from an approach which has helped spur corn-based ethanol as a viable commercial alternative to petroleum fuels).

Rahall noted that the concept of liquefying coal for use in motor vehicles is a viable technology that has been in use for decades. South Africa, for example, has used liquefied coal for more than half a century, and, today, its Sasol facilities provide 30 percent of that country's liquid fuel requirements. China is currently aggressively pursuing coal-to-liquids to meet its own expanding energy demands.

"Other countries have realized the value of coal in answering their transportation fuel needs -- it's time the U.S. caught on. West Virginia coal is ready and able to address America's energy challenges,"stated Rahall.