Capito Announces Forward-Thinking Coal-to-Liquids Legislation

Press Release

Capito Announces Forward-Thinking Coal-to-Liquids Legislation

Amidst High Gas Prices, Legislation Will Push Domestic Energy Production to Reduce Dependence on Foreign Sources of Oil and Energy

Rep. Shelley Moore Capito (R-WV) today unveiled the Clean Coal-Derived Fuels for Energy Security Act, announcing her intent to introduce sweeping energy legislation when Congress reconvenes next week. Modeled after ethanol targets enacted in recent years, Capito's legislation will mandate the production of 6 billion gallons of coal-to-liquids fuel by the year 2022.

"West Virginians are feeling it at the gas station and they're feeling high gas prices in the spike in food costs," said Capito. "It's time for an all-hands-on-deck policy and coal must play a part in our energy solutions."

"Our nation's coal reserves are larger than the combined oil reserves of the rest of the world. We've seen enough excuses and its time to get serious about coal-to-liquids. The technology is there, but we've under-invested. Coal-to-liquids can be clean, it can be produced domestically, it will create American jobs, it's economically viable and it's the right thing for West Virginia."

At her announcement in Charleston, Capito also spoke of the need for a comprehensive energy policy that expands domestic oil and natural gas exploration, coupled with conservation efforts and investment in renewable energy technology.

"There is no single or easy solution to our nation's energy needs," said Capito. "But without increased domestic production of energy we will continue to subject ourselves to the massive fluctuations in global energy prices that have led prices to their record highs."

Capito's legislation would apply to aviation fuel, motor vehicle fuel, home heating oil and boiler fuel sold in the United States, mandating a steadily increasing volume of clean coal-derived fuel. Unlike similar targets for ethanol production, coal-to-liquids targest will not have the unintended consequence of increased food prices.

Through modern technology, coal can be converted into clean, zero-sulfur, synthetic oil and oil products at a cost of approximately $35 to $45 per barrel, making coal-to-liquid technology a financially viable alternative to traditional crude oil, which recently closed at more than $130 per barrel.

In South Africa, coal-to-liquid fuel currently provides thirty percent of the nation's total transportation fuel. China, India, Australia and the Philippines have also invested heavily in coal-to-liquids.

Estimates indicate that a coal-to-liquids plant with an output of 10,000 barrels per day can support 200 direct jobs on site, 150 jobs at the supporting coalmine and 2,800 indirect jobs throughout the region. Plant construction would also generate an additional 1,500 temporary jobs.

In addition to her push for long-term energy solutions, Capito was also a strong advocate for the temporary suspension of shipments to the Strategic Petroleum Reserve to increase the supply of oil and put downward pressure on prices. She has also supported anti-price gouging legislation to protect consumers.

"This is a multi-faceted problem and it will take a multi-faceted response," said Capito. "But we must dispense with the rhetoric, seek real consensus and develop an energy policy that works for West Virginians."

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