|
With debate on new U.S. energy policy moving forward this week, Senator Robert C. Byrd, D-W.Va., is working to broker an agreement that would result in the first major federal investment in technology to turn coal into transportation fuel.
"It is time to think about coal in new ways. No longer is it a fuel source only for power plants. The technology exists today to transform that coal into transportation fuels. Imagine pulling up to the pump and seeing an option for clean coal-based fuel right next to the oil-based gasoline. The choice is not that far into the future," Byrd said.
"Winning the day on this proposal is a tough job. Too many Senators are influenced by special interest groups that refuse to see coal as anything but dirty and disgusting. They refuse to look at the technologies that are available today that would allow the U.S. to take advantage of our own huge coal resources that can help break the chains of foreign oil. But too much is on the line for us to give up," Byrd said.
The effort so far centers on an amendment that Byrd, Rockefeller, and Montana Senator Jon Tester have proposed, called the Coal Innovators amendment. Their proposal would help to move clean coal technology forward by providing grants and loans to coal gasification facilities. To be eligible under this proposal, a facility would need to have emissions that are 20 percent lower than conventional oil refineries and also would have to capture carbon dioxide created during the gasification process.
Up to $200 million in grants will be made available for any services necessary for the planning, permitting and construction of an eligible project, with a cap of $20 million granted to each eligible facility. Priority for grants will be given to projects that have the greatest rate of carbon capture and long-term storage and the lowest emissions.
Additionally, this proposal would authorize $10 billion in loans to eligible facilities. Loans may be used for 100 percent of the costs associated with reducing greenhouse gas emissions; that amount is not to exceed 50 percent of total project cost.
"The technology exists to turn coal into transportation fuel. That is not even an issue. The issue is creating the incentives for private entities to invest in this new field. We hope to provide that incentive through this legislation," Byrd said. "For many years, the federal government has partnered with industry to create clean coal technologies. This program takes those technologies to the next level. It can mean cleaner, more affordable fuel. It can mean breaking the ties to the OPEC nations. It can mean jobs for American families and lower costs at the gas pump."
The coalition of Senators backing the coal-to-liquids effort is working to attract more Republican support this week in order to guarantee Senate approval.
### |
|
