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For Additional Information:
John Grasser (202) 463-2651
Karen Batra (202) 463-2651
FOR IMMEDIATE RELEASE
October 2, 2001
TAX INCENTIVES IN ENERGY POLICY REPRESENT SOUND PUBLIC POLICY, INDUSTRY SPOKESMAN SAYS "A WIN FOR ECONOMY, CONSUMER AND ENVIRONMENT"
Washington -- "The tax incentives included in the current
energy legislation will encourage increased use of clean coal technologies
which will allow coal, our nation's greatest fossil fuel resource,
to play an even more important role in meeting America's electricity
demands of the future," said Brett Harvey, Vice Chairman of
the National Mining Association and President and CEO of Pittsburgh-based
CONSOL Energy Inc.
In testimony submitted to the Senate Finance Committee, Harvey
emphasized the importance of targeted tax incentives contained in
S. 60, the National Electricity and Environmental Technology Act
(NEET), bi-partisan legislation currently co-sponsored by 30 members
of the Senate.
The NEET legislation has three important components:
* A research and development program that addresses long-term clean
coal technology needs;
*Financial incentives - a limited tax credit - designed to encourage
the use of advanced technologies in existing coal-fired power plants;
and,
*A limited program providing a combination of investment tax credits
and efficient production tax credits for the commercial scale application
of advanced coal-based generating technologies in existing and new
facilities.
Implementing the NEET program will help assure the America has
the clean, affordable coal-fired electric generating capacity required
to meet our energy demands, Harvey said.
Harvey stressed that reliable electricity is necessary to maintain
economic growth. "By 2020, U.S. electricity consumption will
be over 40 percent greater than today. But, the current electric
generating fleet is not large enough to meet new demand. New electric
generating plants must be built and they must use the newest and
best technology."
Harvey's testimony said these new advanced coal-based generating
plants are not being built because generators are reluctant to assume
the risks associated with large investments for advanced technologies,
even when those technologies mean lower emissions and greater efficiencies.
"The National Electricity and Environmental Technology Act
has been developed to meet the twin challenge of cleaning up our
existing power plant fleet and developing the next generation of
clean, coal-fired power plants," he pointed out.
Harvey explained that tax incentives will offset the significant
technical and financial risks of putting new technologies on line.
In turn, these new technologies will allow greater use of affordable
coal with lower emissions, while keeping electricity costs as low
as possible.
"This is a win for the environment, a win for the economy,
and a win for those American consumers who must pay a higher percentage
of their income for electricity than others in society."
Harvey concluded his testimony lauding the benefits of coal as
an energy source. "Coal makes up over 90 percent of our domestic
energy reserve. And, coal is electricity. It is the fuel for over
50 percent of the electricity that our citizens use to run our businesses
and support our everyday lives. Coal, is and must continue to be,
one of the cornerstones of our nation's energy strategy," Harvey
said.
More than half of America's electricity is generated from coal.
Coal is our nation's most abundant energy resource, accounting for
more than 90 percent of all fossil energy reserves and representing
a secure supply for the next 250 years. On average, coal-based power
is substantially less costly than other fuels. Modern technologies
are making coal-based generation increasingly clean.
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