Domestic Energy Production Act of 2008

Floor Speech

DOMESTIC ENERGY PRODUCTION ACT OF 2008 -- (Senate - May 08, 2008)

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Mr. BARRASSO. Mr. President, the American Energy Production Act of 2008 is being offered as an amendment to the flood insurance legislation before us today. I am an original cosponsor of the American Energy Production Act.

The thrust of this legislation is expanding American energy supply through many different avenues. I view this amendment as an essential step forward in both addressing the short-term as well as the long-term American energy supplies. I also view this amendment as the right policy to deal with today's high price of energy. America needs to advance its energy policy, and this amendment deserves immediate consideration.

There are many excellent provisions of the amendment that is before us. I am particularly interested in a provision to ramp up production of 6 billion gallons of fuel derived from coal. The provision would start with a mandate of 750 million gallons of alternative coal-to-liquid fuels and then ramp up by a similar amount over the following 7 years, beginning in year 2015. Analysts estimate this provision will result in a reduction in the amount of oil America is projected to import.

Simply put, coal is an abundant, affordable, reliable, and secure source of energy. Coal can also be a clean energy source. These coal-to-liquid fuels would likely be used first by our military. The Department of Defense would be allowed to sign longer contracts for synthetic fuels. The duration of the contracts would be expanded from the current 5 years to 25 years. By doing that, this simple provision provides great potential because it adds certainty to the market and provides another incentive to develop coal-to-liquid facilities. In a time of soaring prices at the pump, this provision deserves serious debate, serious consideration.

The fundamental energy issue before us is one, as we have heard from all speakers, of supply and demand. It is a time for Congress to take action, action that can have a real important impact on America's energy supply.

America's coal is vital to our Nation's economic prosperity and our Nation's security. Coal is a crucial part of America's energy portfolio. Coal provides a foundation for a competitive economy, a secure future, and a prosperous information technology sector. Wise use of natural resources drives America's innovation and our economic success. From the steam engines of yesterday to the superconductors of the world, coal has powered this Nation. Now is the time to support the technology and development of coal to liquids. This will allow coal to be an important contributor to America's transportation fuel. After all, coal is strategically found in States throughout the Nation, both in the East as well as the West.

The countries competing with us economically--India, China--rely heavily on coal. They are poised to exploit coal's many benefits. In order for us to sustain America's current economic leadership, we must continue to harness the vast potential of coal. Energy sources often face challenges. You know what they are: reliability, security, economic competitiveness, ease of conversion, impacts on food supply, and environmental considerations. Coal provides an essential on-demand energy supply in the United States, and coal is a low-cost energy source. Coal has enormous potential to be converted into transportation fuels. At a time when America faces record prices at the pump, coal should be used to produce gasoline, diesel fuel, and jet fuel. Several provisions in the American Energy Production Act of 2008 move America's use of coal and domestic energy in the right direction. America's energy and economic security will depend on promoting technologies that are related to coal. The time to act to expand America's energy portfolio is now.

I urge adoption of the amendment when it comes up for a vote.

I yield the floor.

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