TIM HOLDEN 6TH DISTRICT, PENNSYLVANIA 1421 LONGWORTH BLDG. WASHINGTON, DC 20515-3606 (202) 225-5546 BERKS COUNTY SERVICES CENTER FIRST FLOOR 633 COURT STREET READING. PA 19601 (610) 371-9931 303 CORE STATES BANK BUILDING 101 N. CENTRE STREET POTTSVILLE. PA 17901 (717) 622-4212

CONGRESS OF THE UNITED STATES HOUSE OF REPRESENTATIVES

COMMITTEE ON AGRICULTURE LIVESTOCK, DAIRY, POULTRY RESOURCE CONSERVATION. RESEARCH AND FORESTRY   COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE PUBLIC BUILDINGS AND ECONOMIC DEVELOPMENT

SUPPORT DOMESTIC ENERGY SECURITY!
COSPONSOR H.R.2175!

Dear Colleague:

Coal is the largest domestic source of energy produced in the United States. Current estimates demonstrate a 250-300 year coal resource base in the U.S. The U.S. has more coal than the rest of the world has recoverable oil. Therefore, it is important that we invest in developing technologies that will allow Americans to continue benefiting from this abundant, secure, and affordable fuel source--without compromising the environment.

H.R.2175, the Foreign Oil Displacement Act, seeks to provide financial tax incentives for the liquefaction of coal, and coal byproducts, into liquid fuel. Capital investment statutes for liquefaction facilities are $300 million. Specifically, the bill would provide a 28 percent Investment Tax Credit and exemption from the Fuels Excise Tax for liquefied coal, a benefit already enjoyed by the ethanol industry. This proposal would provide the economic incentives for the significant investment necessary to make the liquefaction of coal viable.

The liquefaction of coal would have important economic and environmental benefits. Economically, it would provide a realistic alternative to our national dependence on foreign oil. Environmentally, it would provide the means to use waste coal, which is present in many coal-producing regions of the U.S.

If you have questions, or would like to sign on as a cosponsor, contact Cameron Taylor of my staff at 225-5546.