Conrad’s Breaking Our Long-term Dependence (BOLD) Energy Act also calls for an increase in the use of ethanol from 4.7 billion gallons (more than 17,790 megalitres) in 2007 to 30 billion gallons by 2025, with a new biodiesel and alternative diesel standard of 250 million gallons in 2008, increasing to 2 billion gallons in 2015.

The biofuels element of the BOLD Energy Act is designed to increase the demand for biofuels and create a secure investment environment for more biodiesel production projects.

Other incentives for the transport industry contained in the Bill include rebates of up to $US2500 for individuals purchasing fuel efficient vehicles, while auto manufacturers could be eligible for either a 35% tax credit or retiree health care grants for installing advanced fuel and low-emission technologies.

Certain non-renewable energy initiatives are also included in Conrad’s proposed Bill, including $US500 million earmarked for further development of coal-to-liquid fuel technology.

The Bill also provides for increased oil production in the US by increasing tax credits for oil companies that use carbon dioxide to extract more oil from ageing oil fields.

The technique involves pumping carbon dioxide below the oil reserve, creating an “artificial lift” that makes the oil easier to extract and increasing the economic viability of depleted or small oil reserves.

Some pundits believe that once a depleted field is capped after using the carbon dioxide “lifting” process, the former oil reserve will then create a form of carbon dioxide sequestration or storage.