Burns co-sponsors bill promoting coal-to-liquids development

By MIKE DENNISON - IR State Bureau - 06/23/06

HELENA — A bill expanding tax incentives for coal-to-liquid production plants will help make the technology a valuable energy resource, Sen. Conrad Burns, R-Mont., said Thursday.

“This legislation gives us independence from foreign sources of fuel (and) it ensures that our national security and our military will have the fuel they need,” he said at a news conference in Washington, D.C.

Burns joined several senators in advocating for the bill, which was introduced four weeks ago. Burns is a co-sponsor.

The bill has been referred to the Senate Finance Committee. It would expand existing tax credits for coal-to-liquid plants and extend a per-gallon tax credit for diesel fuel produced from coal.

“We can make a cleaner diesel (from coal) than we can from petroleum,” Burns said. “I think what we are looking for is something that will help the environment and still power the economy of this country.”

Gov. Brian Schweitzer has been a vocal promoter of siting a coal-to-liquids plant in Montana. No commercial-scale plant exists in this country.

The process uses coal to create diesel fuel, and creates very few polluting byproducts.

Evan Barrett, chief economic development for the governor, said his office hasn’t been contacted about the bill.

“We’d welcome anything that would help a project,” he said. “Federal incentives are useful to enhance private sector investment.

“But the issue is what kind of shape these (credits) will be in if they get through (Congress). We need to study them and see what they are, in relation to the existing law.”


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