Rahall, other lawmakers seek coal-to-liquid support
http://www.herald-dispatch.com/apps/pbcs.dll/...0329/NEWS01/703290335
WASHINGTON -- Turning domestic coal into liquid fuels could help the United States break its dependence on foreign oil, coal state lawmakers and a newly formed coalition of mining groups, labor unions and coal-using industries said Wednesday.
Rep. Nick Rahall, a West Virginia Democrat and chairman of the House Natural Resources Committee, said the Coal to Liquids Coalition would aid pro-coal lawmakers in passing legislation to foster commercial production of coal-derived fuels."For so many, filthy coal is a dirty four-letter word -- inefficient, old-fashioned," Rahall said at a news conference held by the new coalition.
"These individuals, I tell you, have their heads buried in the sand," he said. "They have failed time and again to look beyond the boundless opportunities. They refuse to acknowledge that technology has given us ways to use coal more cleanly, efficiently to answer our energy needs."
The only U.S. coal-to-liquid plants currently in operation are small pilot projects. Commercial plants operate in South Africa.
Coalition members said Congress and the federal government can help make coal liquid fuels commercially feasible. They said greater use of coal-derived fuels by the military, federal tax breaks and federal price supports would convince investors to back this cutting-edge technology that limits air pollution by capturing carbon dioxide when coal is burned.
Creation of the coalition, led by the National Mining Association, "marks the start of an exciting new era for coal," said Rahall.
Sens. Jim Bunning, R-Ky., and Barack Obama, D-Ill., have introduced legislation to provide incentives for coal-to-liquid fuel production.
"I believe that coal-to-liquid fuel is a central part of the solution to help America end its dependence on foreign oil and take advantage of our abundant coal resources," Bunning said.
Rep. Rick Boucher, D-Va., said he would introduce legislation to create a price guarantee for coal-derived fuels to help investors overcome their "skittishness" in investing in coal-to-liquid plants.
Boucher and Steve Dopuch, representing Baard Energy, which plans to build a coal-to-liquid-fuel plant, said the volatility of oil prices makes Wall Street reluctant to back the coal plants.
Environmental groups disagree. The coal-to-liquids plants are too expensive and would add to global warming, according to the National Environmental Trust and the Natural Resources Defense Council.
"Liquid coal is such a dirty fuel that it can make a hybrid pollute like a Hummer," said Elizabeth Martin-Perera, NRDC's climate policy specialist.
Contact Ellyn Ferguson at eferguso@gns.gannett.com.
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