Specter, Casey & Holden Convince OMB to Reverse Decision on Coal-to-Diesel Funding

Washington, D.C. - U.S Senators Arlen Specter and Bob Casey, along with Congressman Tim Holden, announced today that the Administration has reversed its decision to rescind a $100 million grant for a coal-to-diesel plant in Schuylkill County. Under the agreement, WMPI will now have until December 31, 2007 to secure full funding for the plant, after which they may use the $100 million award from the Department of Energy. Director of the Office of Management and Budget Robert Portman called Senator Specter this morning to notify him of the decision.

On Tuesday, Senators Specter and Casey, Congressman Holden and Governor Ed Rendell met with OMB Director Rob Portman to discuss funding for the project.

"I applaud the Administration's decision to keep available these funds for this important project. At a time when our nation is grappling with energy security, we should be using every incentive and tool at our disposal to promote clean coal-to-liquid technology in the U.S., along with other important alternative energy technologies," Senator Specter said.

"I thank OMB Director Portman for his prompt and personal attention and his action to continue innovative investment in alternative energy and economic development for Schuylkill County. Senator Specter and Congressman Holden have been champions of this issue for years and I was glad to join them in this effort," Senator Casey said.

"I thank the Administration and OMB Director Portman for deciding to not withdraw the funding for this project. We must invest in alternative technologies as we strive toward energy independence," Congressman Tim Holden said.

The administration's intent to rescind the funding came to light on February 5, 2007 with the release of the administration's fiscal year 2008 budget proposal. The president's budget contained language announcing the Department of Energy's (DOE) plan to withdraw the $100 million Clean Coal Power Initiative (CCPI) funding to help build the plant in Schuylkill County, Pennsylvania.

Senator Specter and Congressman Tim Holden have been working on the development of the project for nearly a decade. In fiscal year 2003, Senator Specter helped secure $100 million for the project through DOE's CCPI. In 2005, Senator Specter successfully included a provision in the Energy Bill authorizing the DOE to use this funding to provide a loan guarantee. In 2006, Senator Specter hosted a stakeholder meeting with President John Rich, Jr., and potential financiers to negotiate funding.