U.S. Rep. Nick J. Rahall (D-WV), along with a bipartisan group of colleagues, today introduced legislation to encourage investment in coal-to-liquid technology, which can turn coal into motor fuel for a fraction of the cost of a barrel of oil today.

"With technology that has been around for decades, coal can be liquefied and turned into oil, and eventually sold for approximately half of what we are paying now per barrel. Congress cannot allow the pain Americans are experiencing at the pump today to continue indefinitely. And coal-to-liquid technology can be part of the solution," declared Rahall.

According to the Department of Energy, $35-$45 a barrel oil is attainable from a source within our borders - - coal. Thirty years of government and private-sector research and development has perfected a process by which coal is turned into a liquid and the final product, according to the Department of Energy, is cleaner than required under EPA Tier II fuel standards. And with this Nation's refinery capacity operating on all cylinders, these fuels would fit right into our energy mix, as they would require very little additional processing. The legislation introduced today extends until 2020 the 50 cents per gallon tax credit for motor fuel derived from coal that is set expire in 2009.

"The United States will never drill its way out of our oil dependency. But, using proven coal-to-liquid technology and American initiative, we could revolutionize our way to a new energy era. This bill helps to level out federal tax policy that has long been tilted against the public in favor of rich oil companies," stated Rahall.

The aim of this legislation is to provide a level of predictability for a number of years to those willing to put money into coal-to-liquid production. It would help to smooth out some of the ups and downs associated with fluctuating oil prices and the gamble investors make in the financing of these high-tech energy ventures.

Disturbingly, however, for all of our Nation's pride in our competitiveness and innovation, we stand behind a number of other Nations in liquefying coal to end our foreign oil dependence.

Such fuels represent about one-third of the consumption in South Africa, which began its production and use in the 1950's, using the Fischer-Tropsch process developed during the 1920's by two German researchers. China, India, and Indonesia, recognizing the problems of relying on foreign sources of oil, are all aggressively pursuing coal liquefaction as key components of their energy production.

"Unfortunately, while other governments have been footing the bill for this kind of research and development for decades, our government has been ‘playing footsie' with Big Oil. In comparison to the big tax giveaways enjoyed by the oil industry, precious few U.S. budgetary resources have been devoted over the years to cutting-edge coal technologies. This is mind-boggling policy, given coal's abundance on our own shores," concluded Rahall.