Capito Unveils Coal-to-Liquids Bill in Charleston

Op-Ed

Capito Unveils Coal-to-Liquids Bill in Charleston

Rep. Capito unveils the Clean Coal-Derived Fuels for Energy Security Act before reporters in Charleston. Capito's bill calls for the production of 6 billion gallons of coal-derived fuel annually by the year 2022. She will introduce her bill when Congress reconvenes on Tuesday.

Dear Friends and Colleagues,

Congress was out of session this week, but it's been a busy week right here in West Virginia. We celebrated Memorial Day to honor our nation's veterans, I introduced new energy legislation targeting coal-to-liquids fuel and spent time meeting with community leaders and constituents throughout the district.

Coal-to-Liquids Bill

On Tuesday, I unveiled the Clean Coal-Derived Fuels for Energy Security Act at a coal yard in Charleston and will introduce the bill when Congress reconvenes on Tuesday. It is imperative that we finally have an energy policy that capitalizes on our immense domestic supply of natural resources. Without question we must also invest in renewable energy technology and promote conservation. Yet, as new technology is developed, we should utilize the domestic, rather than foreign, resources with which we've been blessed.

We have immense resources in our coal reserves, and our nation's oil and natural gas reserves are equally impressive. Unfortunately, many in Congress have been unwilling to let us tap these domestic resources. With the price of energy so high, it's time to truly invest in our domestic sources of energy.

My coal-to-liquids legislation will mandate that 6 billion gallons of coal-to-liquids fuel be produced annually by the year 2022. The construction of coal-to-liquids plants, some of which are already planned here in West Virginia, will also create hundreds - if not thousands - of American jobs.

Implementation will take time and must be coupled with other initiatives that promote an array of energy resources, but we must take action now.

Travels Through the District

When Congress is in recess, that gives me the opportunity to hit the pavement here in West Virginia to meet with local leaders and constituents.

This week I spent time in Clay County to announce a new community college branch. With the financial support of the US Department of Agriculture, the work of the Central Appalachian Empowerment Zone, and the support of many other community leaders, residents of Clay will now be able to seek educational opportunities in their home town.

I am also excited about the opportunity to give the keynote address to Charleston-area GED graduates at a ceremony tonight. The hard work of these students is an example for many throughout our state, and I look forward to being able to congratulate them in person.

As always, please don't hesitate to contact my office if I can be of any assistance. It is an honor to serve you.

Sincerely,

Member of Congress

In Case You Missed It...

Coal-to-liquids mandate — Capito bill critical to West Virginia's future
Bluefield Daily Telegraph
May 30, 2008

Federal legislation that will mandate U.S. production of 6 billion gallons of liquid fuel from coal by the year 2022 will be introduced in Congress next week by U.S. Rep. Shelley Moore Capito, R-W.Va.

We couldn't be happier.

With high gasoline prices continuing to crunch the wallets of all Americans, it's about time coal-to-liquids technology became a directive instead of a dream.

The Clean Coal-Derived Fuels for Energy Security Act is modeled after ethanol targets enacted in recent years and will require steady increases in the amount of aviation fuel, motor vehicle fuel, heating oil and boiler fuel sold in the U.S.

"There is no single or easy solution to our nation's energy needs," Capito said. "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."

Having lectured about the potential benefits of CTL technology for two years — to the U.S. and the southern West Virginia Southwest Virginia coalfields — we are pleased to finally see firm action being taken.

While developments toward coal-to-liquids technology have been occurring since 2005, the rising cost of gasoline necessitates our leaders work even harder to promote the swift and efficient production of CTL plants.

Coal-to-liquid plants are expensive — in the billion-dollar plus category. But once the infrastructure for such technology is put in place the rewards will be tremendous. Coal can be made into fuel for about $35 to $45 a barrel. This week crude oil prices hovered around the $130 mark.

Do the math.

Although there are environmental concerns about CTL technology, with the right incentives and research we believe the U.S. can produce clean, sulfur-free synthetic oil and fuel from coal.

In addition to the price relief such a product could bring, Capito also cited estimates that indicate 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 coal mine and 2,800 indirect jobs throughout the region. Plant construction would also generate an additional 1,500 temporary jobs.

"Our nation's coal reserves are larger than the combined oil reserves of the rest of the world. We've seen enough excuses and it's time to get serious about coal-to-liquids," Capito said. "The technology is there, but we've under-invested."

Amen. The advancement of CTL technology could be an enormous economic boon to coal-producing states such as West Virginia and Virginia, while helping all Americans with cheaper prices at the gas pumps.

We strongly support the bill to be introduced by Rep. Capito, and ask all our members of Congress to champion this vital legislation.

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