WASHINGTON, D.C. – Montana’s Congressman, Denny Rehberg, has signed on as an original sponsor of the American Alternative Fuels Act of 2011, which reduces existing barriers to alternative fuels, including fuels derived from coal, biomass, algae and waste.

“No one knows for sure where we’ll be getting our energy a century from now,” said Rehberg, a member of the House Appropriations Subcommittee on Energy and Water.  “While some politicians want the federal government picking winners and losers, a better approach is to let consumers pick from as many options as we can reasonably provide.  That’s a big part of the all-of-the-above energy plan I’ve been working on.”

Among its provisions, Rehberg’s legislation would:

• Repeal barriers to domestic fuel production.  Specifically, the bill repeals Section 526 of the 2007 energy bill, which greatly restricts the federal government from buying alternative fuels.
• Increase transparency in the Loan Guarantee Program by creating a reporting requirement for domestic fuel-focused loan guarantee applications that are facing continued delays at the Department of Energy.  Increasing transparency in the Loan Guarantee Program will help speed the process by pinpointing delays in the bureaucratic process.
• Promote algae-based fuel by creating incentives under the renewable fuel standard for algae-based fuel that uses carbon capture and sequestration.
• Support synthetic natural gas production by clarifying that synthetic natural gas production facilities are eligible for the Loan Guarantee Program.  Synthetic natural gas can be produced from coal, biomass, petroleum coke or solid waste. 
• Provide Department of Defense Long-term Contracting Authority to enter into long-term contracts (20 years) for purchasing alternative fuels.
• Require EPA to take into account both the increased demand and the decreased emissions resulting from electric vehicle use in setting performance standards for new electric generation facilities.