What Congress must do to help
Federal participation in the development of a nascent CTL industry is critically important for two reasons. First, assistance on a limited scale will help to reassure private investors wary of undertaking major investments in energy technologies untried in the United States. Second, federal participation will discourage foreign oil cartel manipulation of oil prices temporarily for the sole purpose of destroying a competing domestic fuel source.
CTL Incentives — Jump-Starting a New Industry
The Coal-to-Liquids Coalition supports legislation that:
- Grants the Department of Defense and other federal agencies the ability to enter into long-term, guaranteed fixed price contracts in order to discourage oil exporting countries from manipulating oil prices solely to block U.S. development of CTL fuels;
- Establishes a price collar mechanism to protect domestic CTL producers from foreign energy cartel price manipulation;
- Provides a 20 percent investment tax credit capped at $200 million total per CTL plant placed in service before Dec. 31, 2015;
- Extends the expiration date of the 50 cents per gallon fuel excise tax credit from September 2009 to Dec. 31, 2020 and;
- Allows 100 percent expensing of investments in the year of outlay for any CTL plant online by Dec. 31, 2015.