[Congressional Record Volume 144, Number 132 (Monday, September 28, 1998)]
[House]
[Pages H9096-H9104]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ENERGY CONSERVATION REAUTHORIZATION ACT OF 1998
Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I move to suspend the
rules and pass the bill (H.R. 4017) to extend certain programs under
the Energy Policy and Conservation Act and the Energy Conservation and
Production Act, and for other purposes, as amended.
The Clerk read as follows:
H.R. 4017
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Energy Conservation
Reauthorization Act of 1998''.
SEC. 2. ENERGY POLICY AND CONSERVATION ACT AMENDMENTS.
(a) State Energy Conservation Program.--Section 365(f) of
the Energy Policy and Conservation Act (42 U.S.C. 6325(f)) is
amended to read as follows:
``(f) For the purpose of carrying out this part, there are
authorized to be appropriated for fiscal years 1999 through
2003 such sums as may be necessary.''.
(b) Schools and Hospitals.--Section 397 the Energy Policy
and Conservation Act (42 U.S.C. 6371f) is amended to read as
follows:
``authorization of appropriations
``Sec. 397. For the purpose of carrying out this part,
there are authorized to be appropriated for fiscal years 1999
through 2003 such sums as may be necessary.''.
SEC. 3. ENERGY CONSERVATION AND PRODUCTION ACT AMENDMENT.
Section 422 of the Energy Conservation and Production Act
(42 U.S.C. 6872) is amended to read as follows:
``authorization of appropriations
``Sec. 422. For the purpose of carrying out the
weatherization program under this part, there are authorized
to be appropriated for fiscal years 1999 through 2003 such
sums as may be necessary.''.
SEC. 4. ENERGY SAVINGS PERFORMANCE CONTRACTS.
(a) Sunset.--Section 801(c) of the National Energy
Conservation Policy Act (42 U.S.C. 8287(c)) is amended by
striking ``five years after'' and all that follows through
``subsection (b)'' and inserting ``on October 1, 2003''.
(b) Definition.--Section 804(1) of the National Energy
Conservation Policy Act (42 U.S.C. 8287c(1)) is amended to
read as follows:
``(1) The term `Federal agency' means each authority of the
Government of the United States, whether or not it is within
or subject to review by another agency.''.
SEC. 5. TECHNICAL AMENDMENTS.
(a) Energy Policy and Conservation Act.--The Energy Policy
and Conservation Act is amended--
(1) in the table of contents--
(A) by striking ``Sec. 301.'' and all that follows through
``Reports to Congress.'.'';
(B) by striking ``efficiency'' and inserting
``conservation'' in the item relating to section 325;
(C) by striking ``and private labelers'' in the item
relating to section 326;
(D) by striking the items relating to part E of title III;
(E) by inserting after the items relating to part I of
title III the following:
``Part J--Encouraging the Use of Alternative Fuels
``Sec. 400AA. Alternative fuel use by light duty Federal vehicles.
``Sec. 400BB. Alternative fuels truck commercial application program.
``Sec. 400CC. Alternative fuels bus program.
``Sec. 400DD. Interagency Commission on Alternative Motor Fuels.
``Sec. 400EE. Studies and reports.'';
(F) by inserting ``Environmental'' after ``Energy Supply
and'' in the item relating to section 505; and
(G) by striking the item relating to section 527;
(2) in section 321(1) (42 U.S.C. 6291(1))--
(A) by striking ``section 501(1) of the Motor Vehicle
Information and Cost Savings Act'' and inserting ``section
32901(a)(3) of title 49, United States Code''; and
(B) by striking the second period at the end thereof;
(3) in section 322(b)(2)(A) (42 U.S.C. 6292(b)(2)(A)) by
inserting close quotation marks after ``type of product'';
(4) in section 324(a)(2)(C)(ii) (42 U.S.C.
6294(a)(2)(C)(ii)) by striking ``section 325(j)'' and
inserting ``section 325(i)'';
(5) in section 325 (42 U.S.C. 6295)--
(A) by striking ``paragraphs'' in subsection (e)(4)(A) and
inserting ``paragraph''; and
(B) by striking ``Ballasts;'' in the heading of subsection
(g) and inserting ``Ballasts'';
(6) in section 336(c)(2) (42 U.S.C. 6306(c)(2)) by striking
``section 325(k)'' and inserting ``section 325(n)'';
(7) in section 345(c) (42 U.S.C. 6316(c)) by inserting
``standard'' after ``meets the applicable'';
(8) in section 362 (42 U.S.C. 6322)--
(A) by inserting ``of'' after ``of the implementation'' in
subsection (a)(1); and
(B) by striking ``subsection (g)'' and inserting
``subsection (f)(2)'' in subsection (d)(12);
(9) in section 391(2)(B) (42 U.S.C. 6371(2)(B)) by striking
the period at the end and inserting a semicolon;
(10) in section 394(a) (42 U.S.C. 6371c(a))--
(A) by striking the commas at the end of paragraphs (1),
(3), and (5) and inserting semicolons;
(B) by striking the period at the end of paragraph (2) and
inserting a semicolon; and
(C) by striking the colon at the end of paragraph (6) and
inserting a semicolon;
(11) in section 400 (42 U.S.C. 6371i) by striking ``(a)'';
(12) in section 400D(a) (42 U.S.C. 6372c(a)) by striking
the commas at the end of paragraphs (1), (2), and (3) and
inserting semicolons;
(13) in section 400I(b) (42 U.S.C. 6372h(b)) by striking
``Secretary shall,'' and inserting ``Secretary shall'';
(14) in section 400AA (42 U.S.C. 6374) by redesignating
subsection (i) as subsection (h);
(15) in section 503 (42 U.S.C. 6383)--
(A) by striking ``with repect to'' and inserting ``with
respect to'' in subsection (b); and
(B) by striking ``controlling'' and inserting ``,
controlling,'' in subsection (c)(1); and
(16) in section 552(d)(5)(A) (42 U.S.C. 6422(d)(5)(A)) by
striking ``notion'' and inserting ``motion''.
(b) Energy Conservation and Production Act.--The Energy
Conservation and Production Act is amended--
(1) in the table of contents--
(A) by striking ``rules and regulations'' and inserting
``regulations and rulings'' in the item relating to section
106; and
(B) by striking the item relating to section 207 and
inserting the following:
``Sec. 207. State utility regulatory assistance.
``Sec. 208. Authorization of appropriations.''; and
(2) in section 202 (42 U.S.C. 6802) by striking ``(b)
Definitions.--''.
(c) National Energy Conservation Policy Act.--The National
Energy Conservation Policy Act is amended--
(1) in the table of contents--
(A) by striking ``, installation, and financing'' and
inserting ``and installation'' in the item relating to
section 216;
(B) by striking ``Ratings'' and inserting ``Rating
Guidelines'' in the item relating to part 6 of title II;
(C) by striking the item relating to section 304; and
(D) by striking ``goals'' and inserting ``requirements'' in
the item relating to section 543;
(2) in section 216(d)(1)(C) (42 U.S.C. 8217(d)(1)(C)) by
striking ``explictly'' and inserting ``explicitly'';
(3) in section 251(b)(1) (42 U.S.C. 8231(b)(1))--
(A) by striking ``National Housing Act to projects'' and
inserting ``National Housing Act) to projects''; and
(B) by striking ``accure'' and inserting ``accrue'';
(4) in section 266 (42 U.S.C. 8235e) by striking ``(17
U.S.C.'' and inserting ``(15 U.S.C.''; and
(5) in section 551(8) (42 U.S.C. 8259(8)) by striking
``goethermal'' and inserting ``geothermal''.
SEC. 6. MATERIALS ALLOCATION AUTHORITY EXTENSION.
Section 104(b) of the Energy Policy and Conservation Act is
amended by striking ``(1) The authority'' and all that
follows through ``(2)''.
SEC. 7. BIODIESEL FUEL USE CREDITS.
(a) Amendment.--Title III of the Energy Policy Act of 1992
(42 U.S.C. 13211-13219) is amended by adding at the end the
following new section:
``SEC. 312. BIODIESEL FUEL USE CREDITS.
``(a) Allocation of Credits.--
``(1) In general.--The Secretary shall allocate one credit
under this section to a fleet or covered person for each
qualifying volume of the biodiesel component of fuel
containing at least 20 percent biodiesel by volume purchased
after the date of the enactment of this section for use by
the fleet or covered person in vehicles owned or operated by
the fleet or covered person that weigh more than 8,500 pounds
gross vehicle weight rating.
``(2) Exceptions.--No credits shall be allocated under
paragraph (1) for a purchase of biodiesel--
``(A) for use in alternative fueled vehicles; or
``(B) that is required by Federal or State law.
``(3) Authority to modify percentage.--The Secretary may,
by rule, lower the 20 percent biodiesel volume requirement in
paragraph (1) for reasons related to cold start, safety, or
vehicle function considerations.
``(4) Documentation.--A fleet or covered person seeking a
credit under this section shall provide written documentation
to the Secretary supporting the allocation of a credit to
such fleet or covered person under paragraph (1).
``(b) Use of Credits.--
``(1) In general.--At the request of a fleet or covered
person allocated a credit under subsection (a), the Secretary
shall, for the year in which the purchase of a qualifying
volume is made, treat that purchase as the acquisition of one
alternative fueled vehicle the fleet or covered person is
required to acquire under this title, title IV, or title V.
``(2) Limitation.--Credits allocated under subsection (a)
may not be used to satisfy
[[Page H9097]]
more than 50 percent of the alternative fueled vehicle
requirements of a fleet or covered person under this title,
title IV, and title V. This paragraph shall not apply to a
fleet or covered person that is a biodiesel alternative fuel
provider described in section 501(a)(2)(A).
``(c) Credit Not a Section 508 Credit.--A credit under this
section shall not be considered a credit under section 508.
``(d) Issuance of Rule.--The Secretary shall, before
January 1, 1999, issue a rule establishing procedures for the
implementation of this section.
``(e) Collection of Data.--The Secretary shall collect such
data as are required to make a determination described in
subsection (f)(2)(B).
``(f) Definitions.--For purposes of this section--
``(1) the term `biodiesel' means a diesel fuel substitute
produced from nonpetroleum renewable resources that meets the
registration requirements for fuels and fuel additives
established by the Environmental Protection Agency under
section 211 of the Clean Air Act; and
``(2) the term `qualifying volume' means--
``(A) 450 gallons; or
``(B) if the Secretary determines by rule that the average
annual alternative fuel use in light duty vehicles by fleets
and covered persons exceeds 450 gallons or gallon
equivalents, the amount of such average annual alternative
fuel use.''.
(b) Table of Contents Amendment.--The table of contents of
the Energy Policy Act of 1992 is amended by adding at the end
of the items relating to title III the following new item:
``Sec. 312. Biodiesel fuel use credits.''.
SEC. 8. REPORT CONCERNING COMPLIANCE WITH ALTERNATIVE FUEL
VEHICLE PURCHASING REQUIREMENTS.
(a) In General.--Section 310 of the Energy Policy Act of
1992 (42 U.S.C. 13218) is amended--
(1) by striking the heading and inserting the following:
``SEC. 310. REPORTS.'';
(2) by inserting ``(a) General Service Administration
Program Report.--'' before ``Not later than''; and
(3) by adding at the end the following:
``(b) Compliance Report.--
``(1) In general.--Not later than 1 year after the date of
enactment of this subsection, and annually thereafter for the
next 14 years, the head of each Federal agency which is
subject to this Act and Executive Order No. 13031 shall
prepare, and submit to Congress, a report that--
``(A) summarizes the compliance by such Federal agency with
the alternative fuel purchasing requirements for Federal
fleets under this Act and Executive Order No. 13031; and
``(B) includes a plan of compliance that contains specific
dates for achieving compliance using reasonable means.
``(2) Contents.--
``(A) In general.--Each report submitted under paragraph
(1) shall include--
``(i) any information on any failure to meet statutory
requirements or requirements under Executive Order No. 13031;
``(ii)(I) any plan of compliance that the agency head is
required to submit under Executive Order No. 13031; or
``(II) if a plan of compliance referred to in subclause (I)
does not contain specific dates by which the Federal agency
is to achieve compliance, a revised plan of compliance that
contains specific dates for achieving compliance; and
``(iii) any related information the agency head is required
to submit to the Director of the Office of Management and
Budget under Executive Order 13031.
``(B) Penultimate report.--The penultimate report submitted
under paragraph (1) shall include an announcement that the
report for the next year shall be the final report submitted
under paragraph (1).
``(3) Public dissemination of report.--Each report
submitted under paragraph (1) shall be made public,
including--
``(A) placing such report on a publicly available website
on the Internet; and
``(B) publishing the availability of the report, including
such website address, in the Federal Register.''.
(b) Clerical Amendment.--The table of contents for the
Energy Policy Act of 1992 contained in section 1(b) of that
Act (106 Stat. 2776 et. seq.) is amended by striking the item
relating to section 310 and inserting the following:
``Sec. 310. Reports.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Colorado (Mr. Dan Schaefer) and the gentlewoman from Missouri (Ms.
McCarthy) each will control 20 minutes.
The Chair recognizes the gentleman from Colorado (Mr. Dan Schaefer).
General Leave
Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I ask unanimous consent
that all Members may have 5 legislative days within which to revise and
extend their remarks and insert extraneous material on the bill under
consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Colorado?
There was no objection.
Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I yield myself such time
as I may consume.
Mr. Speaker, today the House considers H.R. 4017, the Energy
Conservation Reauthorization Act of 1998. The bill reauthorizes various
conservation programs authorized by the Energy Policy and Conservation
Act of 1975 and the Energy Conservation Production Act of 1976. It
reduces the energy bills paid by low income consumers, cuts the energy
bills paid by the taxpayers by improving the energy efficiency of
Federal legislative and judicial facilities, and promotes energy
security by encouraging the use of biodiesel fuel to reduce dependence
on petroleum motor fuels.
H.R. 4017 has three main parts. First, the bill reauthorizes three
conservation programs through the fiscal year of 2003. The bill
reauthorizes two Energy Policy and Conservation Act conservation
programs, the State Energy Conservation Program and Institutional
Conservation Program, and an Energy Conservation and Production Act
conservation program, the weatherization assistance program.
These are real vital programs. The weatherization assistance program
reduces the burden of energy costs to low income families, particularly
the elderly, persons with disabilities and families with children.
Weatherization grant awards are provided to all States, the District of
Columbia and, under certain circumstances, the Indian tribal
organizations.
Between 60,000 and 70,000 households are served every year. There are
about 750 local community action agencies participating in this
weatherization program. Based on priorities established through energy
audits, the program provides for installation of cost-effective
weatherization measures such as caulking and weather-stripping, wall
and attic insulation and heating system improvements.
The Subcommittee on Energy and Power of the Committee on Commerce
held a hearing on reauthorization of these programs on September 16,
1997. That hearing demonstrated broad public support for
reauthorization of these programs. The weatherization program is
particularly important to low income consumers in the Northeast and the
Midwest. There is a need for the House to act, since authorization for
all these programs has long since expired, in some cases as long ago as
fiscal year 1993.
Second, H.R. 4017 permits greater use of energy savings performance
contracts under the National Energy Conservation Policy Act. NECPA,
which we call it, authorizes Federal agencies to enter into energy
savings performance contracts with energy service companies to improve
the energy efficiency of Federal facilities.
{time} 1245
These contracts allow contractors to pay for the cost of acquiring
and installing energy efficient equipment at Federal facilities,
services which are being paid for through shared energy savings.
However, authority to enter into these contracts is limited to Federal
executive branch agencies. The bill amends the definition of Federal
agency. In this particular legislation, it includes the legislative and
the judicial branches. That change could result in significant energy
savings at legislative and judicial agency facilities and further cut
the Federal energy bills paid by our American taxpayers.
Third, the bill promotes energy security by encouraging the use of
biodiesel fuel to displace reliance on petroleum motor fuel. The DOE
alternative fuels program was established by the Energy Policy Act of
1992 in order to displace petroleum motor fuels and reduce U.S.
dependence on motor oil. Under the act, the Federal Government, State
governments, and alternative fuel providers were required to purchase
alternative fueled vehicles. That was the hope, that these alternative
fueled vehicles would use alternative fuels and displace petroleum
fuels.
The act directed DOE to develop a program to replace 10 percent of
our petroleum motor fuels by the year 2000, and 30 percent by the year
2010. However, alternative fuels currently account for only .2 percent
of motor fuel usage. DOE is nowhere near achieving the goals
established by the Energy Policy Act for the alternative fuels program.
One reason alternative fuels represent such a small share of motor
fuel
[[Page H9098]]
use is that many alternative fueled vehicles do not run on alternative
fuels. Two-thirds of alternative fuels can use either petroleum motor
fuels or alternative fuels, and it is apparent that many of these
vehicles run largely on petroleum fuels. This bill is an important step
in the right direction. It introduces incentives for replacement fuel
use by providing credits for use of biodiesel.
I want to take a moment to commend the authors of the biodiesel
provisions, the gentleman from Illinois (Mr. Shimkus) and the
gentlewoman from Missouri (Ms. McCarthy), for their leadership and
determination on this issue. They have pushed hard for action to help
the biodiesel industry and soybean farmers. The gentleman from Illinois
(Mr. Shimkus) and the gentlewoman from Missouri (Ms. McCarthy) have
also heard the concerns of their colleagues who had problems with an
earlier version of this legislation and have developed an approach that
represents a consensus opinion. They deserve very much credit for going
the extra mile to build a broad support.
H.R. 4017 was introduced jointly by myself and the ranking member of
the Subcommittee on Energy and Power the gentleman from Texas (Mr.
Hall). The bill was drafted jointly by majority and minority committee
staff. This legislation is also supported by the Department of Energy,
energy efficiency and consumer organizations, and the biodiesel and
natural gas vehicle industry. The bill includes an amendment that
reflects an understanding with the Committee on Science.
The bill reported by the committee would have reauthorized two export
promotion programs. The Committee on Renewable Energy Commerce and
Trade, and the Committee on Energy Efficiency Commerce and Trade.
CORECT is an interagency working group chaired by DOE, composed of
representatives of 14 agencies, whose mission is to promote the export
of U.S. renewable energy technology. CORECT is also an interagency
working group whose mission is to promote the export of energy
efficiency.
I will enter into the Record the exchange of letters between the
Committee on Commerce and the Committee on Science on this particular
issue.
H.R. 4017 is not controversial and was proved by the Committee on
Commerce by a voice vote. I urge my colleagues to support this very
important legislation.
Committee on Commerce
Washington, DC, September 28, 1998.
Hon. F. James Sensenbrenner,
Chairman, Committee on Science,
Washington, DC.
Dear Jim: Thank you for your September 17, 1998 letter
concerning H.R. 4017, the Energy Conservation Reauthorization
Act of 1998.
As your letter indicates, in response to some concerns of
you and your Members, we have agreed to delete certain
provisions of the bill relating to export promotion programs.
Again, thank you for your interest in H.R. 4017. As
requested, I will ensure that a copy of this exchange of
letters is inserted into the Record during the consideration
of the legislation.
Sincerely,
Tom Bliley,
Chairman.
____
Committee on Science,
Washington, DC, September 17, 1998.
Hon. Thomas Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
Dear Chairman Bliley: After our phone conversation staff
was able to work out an agreement on H.R. 4017, the Energy
Conservation Reauthorization Act of 1998.
The Committee on Science will not seek a referral on the
bill. By doing so we are not waiving any of our
jurisdictional claims and reserve the right to seek conferees
on this legislation for provisions which may fall within the
jurisdiction of the Science Committee should the House
passage of H.R. 4017 result in a House-Senate Conference.
I would ask that this letter be placed in the Record at the
appropriate place during the consideration of H.R. 4017.
I look forward to working with you on this and other
legislation.
Sincerely,
F. James Sensenbrenner, Jr.,
Chairman.
Mr. Speaker, I reserve the balance of my time.
(Ms. McCARTHY of Missouri asked and was given permission to revise
and extend her remarks.)
Ms. McCARTHY of Missouri. Mr. Speaker, I yield myself such time as I
may consume.
I rise today to join in support of H.R. 4017, the Energy Conservation
and Reauthorization Act. The act contains an amendment which I have
sponsored along with the gentleman from Illinois (Mr. Shimkus).
I want to thank the chairman of the subcommittee, the gentleman from
Colorado (Mr. Dan Schaefer) who is retiring after long and
distinguished service to this body and to this Nation and who will be
sorely missed by those on the subcommittee, and the ranking member of
the subcommittee, the gentleman from Texas (Mr. Hall) for all of their
assistance in perfecting this legislation.
H.R. 4017, as amended, would change the Energy Policy Act of 1992, by
allowing covered fleets to meet a portion of their annual vehicle
acquisition requirements under the act through the purchase and use of
a 20/80 blend of biodiesel fuel, usually called B-20, that is produced
from domestic renewable resources such as soybean oil, rapeseed,
cottonseed, sunflower oil, beef tallow, pork lard, yellow grease and
corn oil.
The amendment incorporated into the bill establishes this as a pilot
program that can be used to evaluate new means to meet those standards
in the EPACT program that our Nation seeks in order to reduce our
dependence on imported petroleum and improve our air quality.
This amendment provides more choice and greater flexibility to fleet
operators throughout this Nation, and I wanted to talk a little about
my community of Kansas City because we are now in our own pilot program
to try to see how biodiesel will work and whether indeed it will help
us reduce our air emissions so that we meet those quality standards we
seek.
This year in Kansas City we have had 5 instances of air quality
rising above Federal pollution limits of 125 parts per billion. Any
more occurrences and stricter air pollution limits for Kansas City
businesses will trigger sanctions, and this is certainly something that
no one in our community seeks.
We know that biodiesel is an alternative, along with the others in
the national act, that can help us meet those goals. An ozone red alert
is issued when ozone levels are expected to rise above 110 parts per
billion. Those are the alerts that we seek to avoid in Kansas City.
Mr. Robert Sellers, who maintains our Kansas City Area Transportation
Authority fleet, testified before the Subcommittee on Energy and Power
meetings and told us that in our efforts in Kansas City to meet these
environmental goals, we have put four buses in use in a 10-month test
using B-20 biodiesel. They have traveled over 90,000 miles and consumed
over 28,000 gallons of B-20. And we made a comparison with those using
regular diesel fuel, and the results were outstanding.
One important point to note for other communities as they seek this
alternative is that no modifications are necessary to tanks or pumps or
other fueling infrastructure in order to use B-20 fuel. No changes
needed to be made to the engines of the buses or their refueling
systems. No additional maintenance or service requirements are
necessary for B-20 buses. The fuel economy we found in our pilot
program in Kansas City of the B-20 buses was similar to the pure diesel
buses.
Further, I observed this myself firsthand, black exhaust smoke was
visibly reduced. I did not see any in the buses that I traveled on, and
exhaust odor was noticeably improved in the B-20 buses. Most
importantly, I think, Mr. Speaker, the project generated a really
positive response from the citizens in the area and the local media.
Therefore, I really do appreciate the good work of all individuals in
reaching a compromise so that B-20 fuel can be used throughout this
Nation in a pilot program to help all of us meet the broader goals that
H.R. 4017 seeks; again, cleaning up our environment, getting creative
solutions to that difficult problem, and also making sure that we are
reducing our import of foreign oil.
The market that will be created, by the way, in Missouri alone, when
we move to B-20 throughout our urban areas, is a very positive one, and
I know others will speak to that today. Our top cash crop is soybean,
and that is a major use for B-20 fuels in the State and throughout the
Midwest. The market that will be created for all agricultural waste
produced on soybean
[[Page H9099]]
farms and all of our farms can be put to good use, B-20 fuel, and will
really create jobs and a stronger economy for our agriculture
communities throughout the Midwest and the Nation.
I urge everyone to support 4017, show their commitment to clean air
and a strong economy.
As amended, HR 4017 provides more choice and greater flexibility for
fleet operators who want to comply with the requirements of EPACT but
may find this compliance difficult. HR 4017 is a ``win-win'' solution
to the problem of compliance for communities like my own all over
America.
B20 biodiesel fuel substantially reduces air emissions from motor
vehicles. Testing results reported in March 1998, but the United States
Environmental Protection Agency show that the use of biodiesel fuel
reduces particulate matter emissions by 30%, hydrocarbon emissions by
95%, and carbon monoxide emissions by 50%, when compared to normal
diesel fuel.
According to this study, the overall ozone-, or smog-forming
potential of exhaust emissions from biodiesel is one-half that of
conventional diesel fuel. The air quality of benefits of biodiesel are
especially relevant for my hometown, Kansas City, Missouri. This year
alone, Kansas City has had five instances of air quality rising above
federal pollution limits of 125 part-per-billion. Any more occurrences
and stricter air pollution limits on Kansas City businesses will be
triggered. For example, public utilities in the area may have to
increase rates on customers to clean up their generation process.
Biodiesel is going to improve air quality in our city. An ozone ``Red
Alert'' is issued when ozone levels are expected to rise above 100
parts-per-billion in a one-hour time period. Red Alerts are a
cautionary measure, intended to warn people with lung conditions to
avoid heavy outdoor activities. In Kansas City, ozone levels have
topped 110 parts-per-billion on nine days this summer. Using biodiesel
fuel can greatly reduce ozone levels and thus improve our air quality.
Biodiesel fuel is biodegradable and non-toxic, and it is a renewable
fuel, which makes it an option for long-term use. The blending of
diesel and biodiesel fuel does not affect the performance or emissions
of the fuel, and economic research conducted both by Booz-Allen and
Hamilton and the University of Georgia indicates that when all capital,
operating, and maintenance costs are considered, a 20% blend of
biodiesel--B20--has the lowest annualized cost on a ``per gallon
consumed'' basis versus other alternative fuels.
The Clean Air Act sets standards to move toward a healthier and more
aesthetically pleasing environment. However, as our nation moves toward
these admirable goals, we must recognize that some areas of the
country--because of population density, geographic characteristics, and
industrial concentrations--will find it more difficult to meet the new
standards. We must look for creative solutions to the difficult problem
of cleaning up our environment. HR 4017 provides such a solution.
Because Missouri's top cash crop is soybeans, the use of B20 fuel in
this state would not only help to meet the Clean Air Act standards, but
it would also positively impact the state's economy, by creating a
market for the agricultural waste. This market would create
opportunities for agriculture, industry, and government to work
together toward a sustainable future.
I urge my colleagues to join me in voting for HR 4017, and to show
their commitment to clean air and a strong economy. Thank you. I yield
back the balance of my time.
Mr. Speaker, I reserve the balance of my time.
Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I yield 5 minutes to the
gentleman from Illinois (Mr. Shimkus), key sponsor of the bill, who has
worked so hard on this, along with the gentlewoman from Missouri (Ms.
McCarthy).
Mr. SHIMKUS. Mr. Speaker, I rise today in support of H.R. 4017,
because there is a very important policy change that will benefit the
soybean farmers in my district and across the Nation.
This legislation allows biodiesel to participate in the energy
markets of this oil addicted Nation. To begin, biodiesel is a renewable
alternative fuel, primarily derived from agricultural feedstock such as
soybeans, conola, rapeseed, and can even be made out of used deep fryer
fat from fast food restaurants. In fact, already Columbus Foods in
Chicago, a fuel supplier of biodiesel, processes used restaurant grease
to make this fuel.
This is grease that would otherwise be sent to the local land fill.
The Shimkus-McCarthy biodiesel provision of H.R. 4017 would amend the
Energy Policy Act of 1992 and would allow fleet managers to purchase
and use biodiesel in vehicles that are owned and operated by their
fleets.
This legislation is significant, because EPACT is a failure and for
the first time we are providing a strong incentive for fleet managers
to actually use alternative fuel rather than simply acquire additional
alternative fueled vehicles which may never run on the alternative fuel
they were designed for.
This legislation provides fleet managers the flexibility to operate
their heavy-duty diesel vehicles on blends of biodiesel, where the
biodiesel component of the blend is at least 20 percent of the volume
of the fuel. Fleets may count the biodiesel portion of that blend
toward a portion of their annual vehicle purchase requirement.
A minimum of 450 gallons of biodiesel must be purchased and consumed
by a covered fleet to qualify the use of fuel as a substitute for one
vehicle acquisition. No credit is given for the nonbiodiesel portion of
the fuel blend. No credit is given for the vehicles operating on the
biodiesel blended full. Only the purchase and consumption of biodiesel
is rewarded.
This bill contains several safeguards to protect the integrity of the
existing EPACT alternative fuel vehicle program and to assure full
compliance with the fuel purchase provisions of the amendment. Fleets
seeking to substitute their biodiesel fuel use for vehicle purchases
must provide written documentation to the secretary establishing the
total volume of biodiesel blended fuel consumed in fleet vehicles.
No credits will be given for biodiesel used in vehicles that have
already been counted by a fleet toward its alternative fuel vehicle
acquisition requirements in that or any previous year. In addition, no
credits will be given for use of biodiesel in any vehicles where the
use of that fuel is otherwise required by any other State or Federal
laws. Finally to maintain a diversified market for alternative fuel
vehicles, fleets may only substitute their accumulated annual biodiesel
fuel consumption for up to one half of their total annual alternative
fueled vehicle fuel purchases requirements.
It is intention of this legislation to establish this program as a
pilot that can be used to evaluate new means to utilize the EPACT
program to meet its goals of helping our Nation reduce its dependence
on imported petroleum.
This bill does not create any new mandates or impose any new
requirements on covered fleets. Instead it provides more choice and
greater flexibility for fleet operators who already are burdened with
the responsibility of complying with the requirements of EPACT. It
simply rearranges the existing EPACT purchase requirement program to
directly reward the use of alternative fuels.
With that, Mr. Speaker, I will conclude by thanking the coach, the
gentleman from Colorado (Mr. Dan Schaefer) and the gentleman from
Virginia (Mr. Bliley) for their support and encouragement, and my
colleagues, the gentleman from Texas (Mr. Barton) and the gentlewoman
from Missouri (Ms. McCarthy), for helping me craft this bipartisan
common sense legislation, and to my staff, Dan Blankenburst and Matt
Johnson.
As a former high school teacher, I have found that teaching how a
bill becomes law is a little more tricky than I could have ever
guessed. They helped steer me through the political and governmental
mind fields. They deserve enormous credit and thanks.
I ask all my colleagues to vote yes.
Ms. McCARTHY of Missouri. Mr. Speaker, I yield 2 minutes to the
gentlewoman from Missouri (Ms. Danner).
Ms. DANNER. Mr. Speaker, I rise today to speak in favor of the Energy
Conservation Reauthorization Act. I am particularly pleased that this
bill contains the biodiesel provision sponsored by the gentleman from
Illinois (Mr. Shimkus) and the gentlewoman from Missouri (Ms.
McCarthy).
Under the 1992 Energy Policy Act, Federal, State and local government
automobile fleets are required to purchase alternatively fueled
vehicles in order to reduce both American dependence on foreign oil and
reduce harmful automobile emissions. The Shimkus-McCarthy provision
will accomplish these goals while also providing America's soybean
farmers with a new market.
{time} 1300
This will be accomplished without any new Federal mandates and at no
[[Page H9100]]
expense to the Federal Treasury. In fact, the Congressional Budget
Office estimates that it will save $40 million over the next 5 years.
These savings result from the fact that bio-diesel can be used in
vehicles designed to run on standard diesel fuel produced solely from
petroleum, while most other alternative fuels require fleets to
purchase new vehicles specifically designed to burn an alternative
fuel.
As previous speakers have indicated, the Shimkus-McCarthy language
will amend the Energy Policy Act to include bio-diesel as an approved
alternative fuel. Because bio-diesel burns more cleanly than
traditional diesel fuel, its use will reduce emissions of particulate
matter, carbon monoxide, hydrocarbons, and sulfur oxides. At the same
time, because the fuel is derived in part from soybeans, it creates a
new market for farmers who are suffering through a period of extremely
low prices.
In short, Mr. Speaker, this provision advances the national security
and environmental goals of the Energy Policy Act, helps our farmers,
and saves the government millions of dollars. Clearly, this is a change
much to be desired.
In closing, I wish to commend my friends and colleagues who
introduced and promoted this legislation and I look forward to having
it become law.
Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I yield 2 minutes to the
gentleman from Illinois (Mr. Weller).
Mr. WELLER. Mr. Speaker, I thank the chairman for yielding me this
time, and I want to wish him well in his plans after he leaves this
House. It has been a real pleasure to serve with him.
And I also want to salute my colleagues, one of our new members of
the Illinois delegation, the gentleman from Illinois (Mr. John
Shimkus), and his partner in this process, the gentlewoman from
Missouri (Ms. Karen McCarthy), for their leadership on an important
issue.
It is not often that we have an initiative that is before the House
that is a two-fer and even a three-fer, and today we have an issue
before the House that is good for the environment and good for Illinois
farmers. That is why I think this legislation is so very, very
important, because we have an opportunity to help Illinois agriculture,
we have an opportunity to help air in Illinois, and to help our
environment, whether we live in the city, the suburbs, or the country,
and I represent all three.
Today we have an opportunity to promote something called bio-diesel.
And the definition of bio-diesel is that it is a renewable alternative
fuel, primarily derived from agricultural feedstock, such as soybeans,
canola, rapeseed and even deep fryer fat. Well, the big winners,
clearly, in this legislation are Illinois farmers who grow soybeans.
As we look back over the last year, I remember almost a year ago that
we had $6 soybeans at the local grain elevator in Illinois. Today the
cash price for soybeans is $4.78. Farm prices have plummeted, as we
have lost the Asian market, and we need markets back.
It is initiatives like this, thanks to the initiative of the
gentleman from Illinois (Mr. John Shimkus) and the gentlewoman from
Missouri (Ms. McCarthy) that we will help Illinois farmers. It is
estimated this legislation will help raise the price of Illinois
soybeans from 7 to 14 cents because of the market this legislation will
create for Illinois soybeans. Greater demand raises prices. This will
not only be good for those on the farm, but those in town, where
farmers spend their money.
I also want to point out the other benefit of this legislation. This
legislation will help clear the air. All of us have followed a city bus
and smelled the air. And this, of course, will help clear the air. It
is good for the environment, it is good for Illinois farmers, and I ask
for an ``aye'' vote.
Ms. McCARTHY of Missouri. Mr. Speaker, I yield 1 minute to the
gentleman from North Dakota (Mr. Pomeroy).
Mr. POMEROY. Mr. Speaker, I thank the gentlewoman for yielding me
this time, and I also join the preceding speakers in strongly
supporting this legislation.
Those of us representing farm country know we are in the middle of a
deep crisis, because commodity prices have collapsed. We need to pass
disaster relief responding to the production and price collapse that we
see throughout farm country. In addition, though, we need to work on
structural issues that build markets for the long haul, and certainly
increasing our effort at renewable fuels, such as bio-diesel, is a step
in that right direction.
By allowing vehicle fleet managers that use diesel the ability to use
bio-diesel in their fleets and earn the required credits under EPACT,
we clean the air and we bolster prices. It is a very good move, and my
congratulations to the sponsors of this legislation. Please vote for
it.
Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I yield such time as he
may consume to the gentleman from Nebraska (Mr. Bereuter).
(Mr. BEREUTER asked and was given permission to revise and extend his
remarks.)
Mr. BEREUTER. Mr. Speaker, I stand in strong support as cosponsor of
this legislation.
Ms. McCARTHY of Missouri. Mr. Speaker, I yield 2 minutes to the
gentleman from Missouri (Mr. Skelton).
Mr. SKELTON. Mr. Speaker, I thank my colleague from Missouri for
yielding me this time and I wish to compliment the gentleman from
Illinois on the bio-diesel provision to H.R. 4017.
Let us do something that really makes sense, and this bill, this
effort does just that. Among other things, it helps increase the market
for farmers for soybeans. We need to do this as part of the Freedom to
Farm Act, which phases out, as my colleagues know, the Federal payment
to farmers. It helps expand and develop our rural economies.
I ask my colleagues to please come with me in their mind's eye to the
4th Congressional District of Missouri and look at the acres and acres
and fields and fields of soybeans. It adds as much as 7 cents to the
value of a bushel of soybeans. But more than that, as the gentlewoman
from Kansas City, Missouri, pointed out, the fact that there have been
some environmental problems in the city that she represents, it helps
clean the environment. Using bio-diesel can cut emissions of
particulate matter and hydrocarbons in half.
It provides fleet managers, as has already been mentioned by the
gentleman from Illinois, with the flexibility to comply with Federal
mandates and reduces their natural reliance on foreign oil. That is
most important. Our addiction to foreign oil must be reduced.
According to a 1996 Department of Agriculture study, a modest
national market for bio-diesel of 50 to 100 million gallons a year
could increase soybean producers' incomes in the State that I
represent, the State of Missouri, by over $15 million annually.
Since 1992, soybean producers have spent over $20 million in research
and education to develop a bio-diesel industry. It is here, it makes
sense, it makes absolute sense to adopt this, and I urge that this be a
union unanimous vote in favor of this provision.
Ms. McCARTHY of Missouri. Mr. Speaker, I yield myself the balance of
my time to close.
I rise once again, Mr. Speaker, to urge my colleagues to vote for
H.R. 4017, because it represents a bipartisan agreement that helps our
environment, is good for our economy, aids our farmers and our
metropolitan areas in their quest to meet Federal air quality
standards, improve the quality of life for their residents and keep our
agriculture strong in this country.
H.R. 4017 reauthorizes several small but important energy
conservation and export promotion programs for 5 years. I worked on
these programs, Mr. Speaker, before coming to this august body as a
member of the State Legislature in Missouri, so I know of their worth
and their value to communities and States throughout the Nation.
The State Energy Conservation Program and Institutional Conservation
Program is one such component. The programs to enhance renewable
energy, commerce and trade, as well as programs on energy efficiency,
and weatherization conservation reauthorized in this Energy
Conservation and Production Act are all valuable components to meeting
those goals set forth in the national policy that we are reauthorizing
today.
Mr. Speaker, it also makes congressional and judicial branch agencies
eligible to enter into energy saving performance contracts. That is
good for
[[Page H9101]]
our national budget. That is good for America. Mr. Speaker, bio-diesel
presents a chance for us to make a choice that is good for our country
and good for our environment. I urge all my colleagues to vote for H.R.
4017.
Biodiesel makes sense. Allowing biodiesel to be used to meet up to 50
percent of the alternative fueled vehicle requirements under EPAct will
help metropolitan areas to meet the goals outlined in EPAct. According
to the Department of Energy's own analysis from July 1997, our Nation
will not reach the petroleum displacement goals as outlined in EPAct--
10 percent by 2000 and 30 percent by 2010. The Department's latest
numbers indicate that since 1992 only about 3.1 percent displacement
has occurred. Most of this, 2.9 percent was due to oxygenates which
were required by the Clean Air Act. Only about 0.2 percent was due to
alternative fuel use by Alternatively Fueled Vehicles. Further, the
Natural Gas Vehicle Coalition supports this legislation.
Biodiesel is good for the environment. Biodiesel has been tested by
the Department of Energy, the United States Department of Agriculture,
and the Environmental Protection Agency, and they have all found that
biodiesel provides substantial energy benefits. If I may quote from the
lifecycle analysis conducted by the EPA:
Biodiesel can play a role in reducing emissions of many air
pollutants, especially those targeted by the EPA in urban
areas. These include particulate matter, carbon monoxide,
hydrocarbons, sulfur oxides . . . and air toxics.
Biodiesel is economically feasible. Not only will using biodiesel
reduce our dependence on foreign petroleum supplies, it will also
create new domestic markets for agricultural waste products.
This Act is significant for our country. Improving on the Energy
Policy Act is critical for energy efficiency, clean air and trade
through promoting agribusiness. Throughout my career in public service
I have championed initiatives which strike a balance between industry
and the environment.
Mr. Speaker, I yield back the balance of my time.
Mr. DAN SCHAEFER of Colorado. May I ask the Speaker how much time I
have remaining?
The SPEAKER pro tempore (Mr. Sununu). The gentleman from Colorado has
6\1/2\ minutes remaining.
Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I yield the balance of my
time to the gentleman from Missouri (Mr. Hulshof).
Mr. HULSHOF. Mr. Speaker, I rise today in strong support of H.R.
4017, the Energy Conservation Reauthorization Act, and I especially
want to commend the distinguished chairman, the gentleman from Colorado
(Mr. Dan Schaefer), and the ranking member, the gentleman from Texas
(Mr. Hall), for their bipartisan cooperation in bringing this bill to
the floor.
We have heard this bill reauthorizes a number of important programs,
two I want to focus on just briefly. One of those important programs is
the weatherization assistance. This program really helps families with
lower incomes, particularly the elderly.
Don Patrick, the director of the Northeast Community Action Center in
Missouri, in the 9th congressional district, allowed me to tag along to
see firsthand some of the weatherization projects that they were
actually doing for some of the elderly citizens in the 9th
Congressional District. This clearly is a program that needs to be
continued, and I give it my full support.
But, secondly, this bill, and a lot of the discussion, has focused on
the alternative fuel of bio-diesel. And as the Speaker knows, I have
tried to be a champion on alternative fuels in this body, and so I am
proud to lend my support to bio-diesel. It is environmentally friendly
and something that not only, as has been talked about, helps clear the
air but helps promote our agriculture products.
The thing that is especially good about this bill, Mr. Speaker, if we
look back in 1992, the Energy Policy Act actually imposed requirements
on the managers of motor vehicle fleets that before they could make new
vehicle acquisitions, that they would have to go through certain
requirements each year. And what this bill does is strongly encourage
those fleet managers to include the purchase or use of bio-diesel in
those cars and trucks.
One reason that I think this is so good is we are using the carrot
rather than the stick approach. We are rewarding the use of alternative
fuels to achieve the goals of EPACT to displace imported petroleum
rather than the stick approach. This is not a Federal mandate. We are
not creating or complicating the Tax Code with new tax breaks, nor are
we increasing Federal spending.
As has been touched on before, by increasing markets, in fact, the
gentleman from North Dakota who was here to speak talked about in this
difficult time for America's farmers and ranchers that if we can not
only strengthen our export markets, but if we can look within our own
borders and try to strengthen domestic markets, and this bill does
that, by increasing markets for soybeans, we are directly helping each
and every soybean producer across the country.
Now, in the State of Missouri, we have over 32,000 soybean producers
that plant 4.9 million acres of soybeans in fields all across the
State. And by inclusion of bio-diesel, we could see as much as 7 cents
a bushel added to the value of soybeans that they are selling at the
grain elevator.
I had occasion just this morning to speak with a soybean producer on
the phone from Missouri, my father, who was extremely excited that we
are looking for ways to expand markets, because clearly farmers and
ranchers across the country are having a difficult time.
Mr. Speaker, in conclusion, at a time when American agriculture,
where our critically important foreign markets are sagging, there can
be no clearer reason for moving forward in the expansion of markets. We
should do that in any way we can. And I think due credit should go not
only to my freshman colleague, the gentleman from Illinois (Mr.
Shimkus), but also the gentlewoman from Missouri (Ms. McCarthy), a
neighbor; and I wish to thank them for their work in bringing this bill
together.
Let us pass this bill, because it is right for the environment and it
is right for our farmers. I urge every Member of this body to vote
``aye'' on H.R. 4017.
Mr. MARKEY. Mr. Speaker, I rise in opposition to H.R. 4017.
While all of us would support a clean reauthorization of the Energy
Policy and Conservation Act, I must reluctantly oppose this bill
because of the serious concerns I have regarding the Shimkus amendment
that was adopted during the Commerce Committee's markup of this
legislation. In its present form, this provision would have a negative
impact on efforts to promote development of cleaner alternative fueled
vehicles and reduce our nation's dependence on imported oil. For this
reason, I, along with the gentleman from California (Mr. Waxman), the
gentleman from New Jersey (Mr. Pallone), the gentlelady from Oregon
(Ms. Furse) and the gentlelady from Colorado (Ms. DeGette) all were
opposed to the Shimkus amendment when it was considered in the
Committee.
One of the primary goals of the Energy Policy Act of 1992 (or
``EPAct'') was to enact a comprehensive national energy policy that
strengthens U.S. energy security by reducing dependence on imported
oil. Currently, the United States consumes seven million barrels of oil
more per day than it produces. EPAct establishes goals of a 10 percent
displacement in U.S. motor fuel consumption by the year 2000 and a 30
percent displacement in U.S. motor fuel consumption by the year 2010
through the production and increased use of replacement fuels. The Act
also allows the Secretary to revise these goals downward. According to
the latest projections by the Energy Information Administration, the
transportation sector will consume 15.8 million barrels per day of
petroleum in 2010. Of this total, about 9.2 million barrels per day of
petroleum are projected to be used by light duty vehicles. The Energy
Information Administration also estimates that 60 percent of our total
petroleum demand will be imported in 2010.
Significant gains in displacing petroleum motor fuel consumption by
the year 2010 are expected to occur by replacing gasoline with
alternative fuels such as electricity, ethanol, hydrogen, methanol,
natural gas and propane, in a portion of the U.S. car and truck
population, which is projected to be in excess of 200 million vehicles
in the year 2010. Currently, alternative fueled vehicles comprise a
small fraction of the total U.S. vehicle stock. To enable the Act's
displacement goals to be met, alternative fuels must be readily
accessible and motor vehicles that operate on these alternative fuels
must be available for purchase. Thus, two important elements of
reducing petroleum motor fuel consumption are: a nationwide alternative
fuels infrastructure and the availability of alternative fueled
vehicles for purchase at a reasonable cost by the general public in a
wide variety of vehicle types and fueling options. Under EPAct, a motor
fuel
[[Page H9102]]
must meet three requirements to be considered to be an alternative
fuel. First, it must foster substantial environmental benefits. Second,
it must be substantially non-petroleum. Third, it must promote energy
security goals of the Act.
While I share the stated concern of some supporters of the Shimkus
amendment that many alternative fueled vehicles acquired in response to
EPAct do not actually operate on alternative fuels, the Shimkus
amendment doesn't even adopt this shortcoming in current law. The
amendment would allow the Secretary of Energy to allocate credits for
each qualifying volume of the biodiesel fuel purchased for heavy
vehicles to satisfy EPAct requirements imposed on certain covered
persons and fleets. The sponsors of the Shimkus amendment agreed to
make certain modifications in this amendment prior to the Committee
markup, such as striking the transferability of these credits, making
certain modifications in the definition of biodiesel that clarifies
that it covers only fuel substitutes produced from non-petroleum
renewable resources, and making certain clarifications in the DOE
authority to lower the percentage of qualifying biodiesel volume for
reasons relating to cold start, safety and vehicle function
considerations. While these changes have helped to improve the
amendment, and I commend the gentleman from Illinois (Mr. Shimkus) and
the gentlelady from Missouri (Ms. McCarthy) for agreeing to make them I
still have significant concerns about the language adopted by the
Committee.
First, I question whether it makes sense to allow biodiesel fuel to
be used to meet up to 50 percent of the alternative fueled vehicle
requirements under EPAct. The purpose of the alternative fuels program
was to create incentives for private sector investments in new and more
environmentally benign technologies which could meet our nation's long
term energy and transportation needs without reliance on imported oil--
much of which comes from the Middle East. The Shimkus amendment could
undermine this important energy security goal by reducing by up to half
the number of alternative fueled vehicles acquired in this country each
year. Congress decided in 1992 to encourage the shift from petroleum by
first getting alternative fueled vehicles on the road so that the
infrastructure for alternative fuels could be supported. Allowing use
of a fuel which is 80% petroleum to displace the acquisition of
vehicles which don't rely on petroleum-based fuels will do little to
help the U.S. achieve energy independence from oil imports. In fact,
according to DOE staff, switching every single diesel vehicle in the
United States to B-20 would only displace 4.2% of petroleum usage.
Second, alternative fuels under EPAct are required to foster
substantial environmental benefits. It is my understanding that
NOX emissions, a leading source of health-threatening smog,
are not reduced in biodiesel blends with less than 35 percent bio-mass
derived fuel. Moreover, I note that diesel-fueled vehicles are the
source of more than 40 percent of the pollutants from motor vehicles
and are also the primary transportation source of fine particulate
matter (PM), which has been determined to be a major public health
problem. Additionally, in August 1998 the California Air Resources
Board designated diesel particulates as carcinogenic toxic air
contaminants. The decision means that California state regulators must
examine strategies to limit human exposure to the chemicals and
illustrates the growing consensus on the need to further reduce
dangerous diesel emissions.
Allowing a fuel which is largely petroleum-based to receive credits
to meet up to 50 percent of the alternative fuels requirements of EPAct
will complicate efforts to achieve the fundamental purposes of the
alternative fuels program. Therefore, if this legislation moves
forward, I and others on this side of the aisle would be far more
comfortable if biodiesel credits were limited to a much lower level of
between 20 to 30 percent.
Third, I have concerns about the definition of ``qualifying volume''
of biodiesel fuel. Under the amendment, a minimum of 450 gallons of
biodiesel fuel qualifies for one credit. I think this quantity is far
too low. Under current law, the purchase of an alternative fueled
vehicle--which may serve in a fleet for an average of 5 or 6 years--is
worth one credit. Under the Shimkus amendment, a vehicle which burns
450 gallons of biodiesel per year would receive one credit for every
year it is in service, or 5-6 credits.
Mr. ABERCROMBIE. I would like to express my strong support for the
Shimkus-McCarthy Biodiesel Provision in H.R. 4017.
Biodiesel fuel is a renewable alternative fuel primarily derived from
agricultural feedstock such as soybeans, canola, rapeseed, and even
deep fryer fat. Biodiesel has many advantages as a renewable fuel
resource. It reduces tailpipe emissions, visible smoke, and noxious
odors and can be operated in conventional diesel engines with no engine
modifications. Biodiesel can be blended with conventional diesel fuel
and still achieve substantial emission reductions. Another advantage is
that the primary by product of biodiesel is glycerine, which has
numerous commercial applications from toothpaste to cough syrup.
One example of the utility of biodiesel can be seen on the island of
Maui, Hawaii. Maui was faced with used cooking oil disposal problems
because of the shortage of landfill space. Pacific Biodiesel, a fuel
manufacturing company on Maui, worked with island officials to identify
ways to meet this challenge.
Pacific Biodiesel processes recycled cooking oil into cleaner, safer
diesel fuel. The Pacific Biodiesel plant has a production capability of
200,000 gallons of premium biodiesel fuel per year. All the fuel they
process is derived from recycled vegetable oil and is biodegradable. On
Maui, this fuel is used for transportation, heating, and air-
conditioning. Boats and tourist hotel buses on the island use biodiesel
as their fuel.
The success of Pacific Biodiesel has potential as a model for other
islands. It also shows that, by using biodiesel, we can reduce the
environmental impact of diesel-powered vehicles, provide new outlets
for agriculture, and create new jobs. Produced and used throughout
Europe and in parts of Japan, this renewable energy source offers a
host of environmental advantages that are gaining worldwide attention.
I urge the House to pass H.R. 4017 and recommend it for quick
consideration in the Senate.
Mr. GUTKNECHT. Mr. Speaker, I strongly support H.R. 4017 because it
is a win win-win proposition. Americans win with cleaner air. We win
with greater energy independence. And, we win with higher farm income
and a stronger rural economy.
As one who fought for the 5.4 cent ethanol blenders' tax credit and
as one who originally cosponsored H.R. 4017, I want to commend my
colleagues in the 105th Congress for their outstanding record of
achievement in the advancement of renewable fuels. It was the 105th
Congress that extended the critical ethanol blenders' tax credit to the
year 2007, and it is this Congress which now proposes to formally
recognize biodiesel as an alternative fuel.
Biodiesel is proven to reduce harmful air pollutants--and does it
without imposing costly and burdensome regulations. Biodiesel will
build on ethanol's success by further reducing our dependence on
foreign energy making America's future more secure. And, biodiesel
promises to add between seven and ten cents per bushel to the price of
soybeans. That's good news if you come from Mankato, Minnesota where we
crush more beans each day than anywhere else on Earth.
Mr. Speaker, this is an especially good day for Minnesota farmers and
I want to compliment my good friend and colleague, Congressman John
Shimkus, for his leadership throughout the 105th Congress in making it
possible. I am proud to be an original sponsor of this legislation and
I urge its adoption.
Mr. DREIER. Mr. Speaker, it's no secret that air quality has long
been a major problem in Los Angeles. We've attempted to fight the
problem in a variety of ways, including construction of a metrorail
system, improvements in bus transportation through the region,
reduction in pollutants emitted by cars and business, and other
methods. While we have made progress, there is no question that it
remains a challenge in need of innovative, market-based solutions.
One such approach is to encourage the increased use of cleaner-
burning fuels like biodiesel, as Congress sought to do when it passed
the Energy Policy Act of 1992 (EPACT). As compared to conventional
fuels, biodiesel can cut emissions of particulate matter and
hydrocarbons in half. But while the Act prompted fleet managers to
purchase alternative-fuel vehicles, it did not provide meaningful
incentives to actually use cleaner fuels, such as biodiesel. As a
result, fleet managers currently must purchase vehicles that are
designed to run on alternative fuels, but have no reason to actually
use alternative fuels in them.
H.R. 4017, the Energy Conservation Reauthorization Act, addresses
that problem, providing that the purchase and consumption of biodiesel
fuel counts toward fulfilling EPACT requirements. By making it sensible
to actually use clean-burning fuels, this legislation will make it
possible to realize the most important goal of EPACT--cleaner air.
Besides its value as a relatively clean-burning fuel, an important
advantage of biodiesel fuel is that it is renewable. It can be made
from agricultural feedstock, such as soybean and canola, and even from
used deep-fryer fat from fast-food restaurants. As a substitute for
gasoline or petroleum-based diesel fuel, the increased use of this type
of renewable fuel not only contributes to cleaner air, it also reduces
U.S. dependence on imported oil.
As an early cosponsor of Mr. Shimkus' legislation to amend the Energy
Policy Act, I want to commend both him and Ms. McCarthy, the
[[Page H9103]]
original authors of the legislation, as well as Mr. Schaefer, the
Chairman of the Energy and Power Subcommittee, for bringing this
commonsense bipartisan legislation to the House floor. I encourage all
Members to support its adoption.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Colorado (Mr. Dan Schaefer) that the House suspend the
rules and pass the bill, H.R. 4017, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I ask unanimous consent to
take from the Speaker's table the Senate bill (S. 417) to extend energy
conservation programs under the Energy Policy and Conservation Act
through September 30, 2002, and ask for its immediate consideration.
The Clerk read the title of the Senate bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Colorado?
There was no objection.
The Clerk read the Senate bill, as follows:
S. 417
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. ENERGY POLICY AND CONSERVATION ACT AMENDMENTS.
The Energy Policy and Conservation Act is amended--
(1) at the end of section 154 by adding the following new
subsection:
``(f) No later than October 1, 1997, the Secretary shall
prepare a statement of policy on Strategic Petroleum Reserve
development, maintenance and drawdown. The statement of
policy shall evaluate the effect of sales of petroleum from
the Strategic Petroleum Reserve under authorities other than
those provided by this Act on the ability of the United
States to fulfill its obligations under the international
energy program. The statement of policy shall evaluate the
effectiveness of the Strategic petroleum Reserve at reducing
the impact of severe energy supply interruptions, in light of
existing quantities of petroleum in the Strategic Petroleum
Reserve, and the likelihood of purchases of additional
petroleum for storage. The statement of policy shall set
forth alternative strategies for drawdown and the criteria to
be employed at the time of drawdown to select among such
strategies. The statement of policy shall be published in the
Federal Register and be subject to public comment, and may be
prepared without regard to the requirements of section 553 of
title 5, United States Code, section 501 of the Department of
Energy Organization Act (42 U.S.C. 7191), and section 523 of
this Act.'';
(2) by amending section 166 (42 U.S.C. 6246) to read as
follows:
``authorization of appropriations
``Sec. 166. There are authorized to be appropriated for
each of fiscal years 1998 through 2000 such sums as may be
necessary to implement this part.'';
(3) at the end of part B of title I by adding the following
new section:
``use of underutilized facilities
``Sec. 168. (a) Notwithstanding section 649(b) of the
Department of Energy Organization Act (42 U.S.C. 7259(b)),
the Secretary is authorized to store in underutilized
Strategic Petroleum Reserve facilities, by lease or
otherwise, petroleum product owned by a foreign government or
its representatives. Petroleum product stored under this
section is not part of the Strategic Petroleum Reserve, is
not subject to part C of this title, and notwithstanding any
provision of this Act, may be exported from the United
States.
``(b) Beginning on October 1, 2002, funds resulting from
the leasing or other use of a Reserve facility under
subsection (a) shall be available to the Secretary, without
further appropriation, for the purchase of petroleum products
for the Reserve.'';
(4) in section 181 (42 U.S.C. 6251) by striking ``1997''
other places it appears and inserting in lieu thereof
``2000'';
(5) by striking ``section 252(l)(1)'' in section 251(e)(1)
(42 U.S.C. 6271(e)(1)) and inserting ``section 252(k)(1)'';
(6) in section 252 (42 U.S.C. 6272)--
(A) in subsections (a)(1) and (b), by striking ``allocation
and information provisions of the international energy
program'' and inserting ``international emergency response
provisions'';
(B) in subsection (d)(3), by striking ``known'' and
inserting after ``circumstances'' ``known at the time of
approval'';
(C) in subsection (e)(2) by striking ``shall'' and
inserting ``may'';
(D) in subsection (f)(2) by inserting ``voluntary agreement
or'' after ``approved'';
(E) by amending subsection (h) to read as follows:
``(h) Section 708 of the Defense Production Act of 1950
shall not apply to any agreement or action undertaken for the
purpose of developing or carrying out--
``(1) the international energy program, or
``(2) any allocation, price control, or similar program
with respect to petroleum products under this Act.'';
(F) in subsection (k) by amending paragraph (2) to read as
follows:
``(2) The term `international emergency response
provisions' means--
``(A) the provisions of the international energy program
which relate to international allocation of petroleum
products and to the information system provided in the
program, and
``(B) the emergency response measures adopted by the
Governing Board of the International Energy Agency (including
the July 11, 1984, decision by the Governing Board on `Stocks
and Supply Disruptions') for--
``(i) the coordinated drawdown of stocks of petroleum
products held or controlled by governments; and
``(ii) complementary actions taken by governments during an
existing or impending international oil supply disruption'';
and
(G) by amending subsection (l) to read as follows:
``(l) The antitrust defense under subsection (f) shall not
extend to the international allocation of petroleum products
unless allocation is required by chapters III and IV of the
international energy program during an international energy
supply emergency.'';
(7) by amending the last sentence of section 256(h) (42
U.S.C. 6276(h)) to read as follows: ``There are authorized to
be appropriated for each of fiscal years 1998 through 2002
such sums as may be necessary to carry out this part.'';
(8) in section 281 (42 U.S.C. 6285) by striking ``1997''
both places it appears and inserting in lieu thereof
``2002''.;
(9) in section 365(f)(1) (42 U.S.C. 6325(f)(1)) by striking
``not to exceed'' and all that follows through ``fiscal year
1993'' and inserting in lieu thereof ``for each of fiscal
years 1998 through 2002 such sums as may be necessary'';
(10) by amending section 397 (42 U.S.C. 6371f) to read as
follows:
``authorization of appropriations
``Sec. 397. For the purpose of carrying out this part,
there are authorized to be appropriated for each of fiscal
years 1998 through 2002 such sums as may be necessary.''; and
(11) in section 400BB(b) (42 U.S.C. 6374a(b)) by amending
paragraph (1) to read as follows:
``(1) There are authorized to be appropriated to the
Secretary for carrying out this section such sums as may be
necessary for each of fiscal years 1998 through 2002, to
remain available until expended.''.
SEC. 2. PURCHASES FROM STRATEGIC PETROLEUM RESERVE BY
ENTITIES IN INSULAR AREAS OF UNITED STATES AND
FREELY ASSOCIATED STATES.
(a) Section 161 of the Energy Policy and Conservation Act
(42 U.S.C. 6241) is amended by adding at the end the
following:
``(j) Purchases From Strategic Petroleum Reserve by
Entities in Insular Areas of United States and Freely
Associated States.--
``(1) Definitions.--In this subsection:
``(A) Binding offer.--The term `binding offer' means a bid
submitted by the State of Hawaii for an assured award of a
specific quantity of petroleum product, with a price to be
calculated pursuant to paragraph (2) of this subsection, that
obligates the offeror to take title to the petroleum product
without further negotiation or recourse to withdraw the
offer.
``(B) Category of petroleum product.--The term `category of
petroleum product' means a master line item within a notice
of sale.
``(C) Eligible entity.--The term `eligible entity' means an
entity that owns or controls a refinery that is located
within the State of Hawaii.
``(D) Full tanker load.--The term `full tanker load' means
a tanker of approximately 700,000 barrels of capacity, or
such lesser tanker capacity as may be designated by the State
of Hawaii.
``(E) Insular area.--The term `insular area' means the
Commonwealth of Puerto Rico, the Commonwealth of the Northern
Mariana Islands, the United States Virgin Islands, Guam,
American Samoa, and the Freely Associated States of the
Republic of the Marshall Islands, the Federated States of
Micronesia, and the Republic of Palau.
``(F) Offering.--The term `offering' means a solicitation
for bids for a quantity or quantities of petroleum product
from the Strategic Petroleum Reserve as specified in the
notice of sale.
``(G) Notice of sale.--The term `notice of sale' means the
document that announces--
``(i) the sale of Strategic Petroleum Reserve products;
``(ii) the quantity, characteristics, and location of the
petroleum product being sold;
``(iii) the delivery period for the sale; and
``(iv) the procedures for submitting offers.
``(2) In general.--In the case of an offering of a quantity
of petroleum product during a drawdown of the Strategic
Petroleum Reserve--
``(A) the State of Hawaii, in addition to having the
opportunity to submit a competitive bid, may--
``(i) submit a binding offer, and shall on submission of
the offer, be entitled to purchase a category of a petroleum
product specified in a notice of sale at a price equal to the
volumetrically weighted average of the successful bids made
for the remaining quantity of the petroleum product within
the category that is the subject of the offering; and
[[Page H9104]]
``(ii) submit 1 or more alternative offers, for other
categories of the petroleum product, that will be binding if
no price competitive contract is awarded for the category of
petroleum product on which a binding offer is submitted under
clause (i); and
``(B) at the request of the Governor of the State of
Hawaii, a petroleum product purchased by the State of Hawaii
at a competitive sale or through a binding offer shall have
first preference in scheduling for lifting.
``(3) Limitation on quantity.--
``(A) In general.--In administering this subsection, in the
case of each offering, the Secretary may impose the
limitation described in subparagraph (B) or (C) that result
in the purchase of the lesser quantity of petroleum product.
``(B) Portion of quantity of previous imports.--The
Secretary may limit the quantity of a petroleum product that
the State of Hawaii may purchase through a binding offer at
any offering to \1/12\ of the total quantity of imports of
the petroleum product brought into the State during the
previous year (or other period determined by the Secretary to
be representative).
``(C) Percentage of offering.--The Secretary may limit the
quantity that may be purchased through binding offers at any
offering to 3 percent of the offering.
``(4) Adjustments.--
``(A) In general.--Notwithstanding any limitation imposed
under paragraph (3), in administering this subsection, in the
case of each offering, the Secretary shall, at the request of
the Governor of the State of Hawaii, or an eligible entity
certified under paragraph (7), adjust the quantity to be sold
to the State of Hawaii in accordance with this paragraph.
``(B) Upward adjustment.--The Secretary shall adjust upward
to the next whole number increment of a full tanker load if
the quantity to be sold is--
``(i) less than 1 full tanker load; or
``(ii) greater than or equal to 50 percent of a full tanker
load more than a whole number increment of a full tanker
load.
``(C) Downward adjustment.--The Secretary shall adjust
downward to the next whole number increment of a full tanker
load if the quantity to be sold is less than 50 percent of a
full tanker load more than a whole number increment of a full
tanker load.
``(5) Delivery to other locations.--The State of Hawaii may
enter into an exchange or a processing agreement that
requires delivery to other locations, if a petroleum product
of similar value or quantity is delivered to the State of
Hawaii.
``(6) Standard sales provisions.--Except as otherwise
provided in this Act, the Secretary may require the State of
Hawaii to comply with the standard sales provisions
applicable to purchasers of petroleum product at competitive
sales.
``(7) Eligible entities.--
``(A) In general.--Subject to subparagraphs (B) and (C) and
notwithstanding any other provision of this paragraph, if the
Governor of the State of Hawaii certifies to the Secretary
that the State has entered into an agreement with an eligible
entity to carry out this Act, the eligible entity may act on
behalf of the State of Hawaii to carry out this subsection.
``(B) Limitation.--The Governor of the State of Hawaii
shall not certify more than 1 eligible entity under this
paragraph for each notice of sale.
``(C) Barred company.--If the Secretary has notified the
Governor of the State of Hawaii that a company has been
barred from bidding (either prior to, or at the time that a
notice of sale is issued), the Governor shall not certify the
company under this paragraph.
``(8) Supplies of petroleum products.--At the request of
the governor of an insular area, or President of a Freely
Associated State, the Secretary shall, for a period not to
exceed 180 days following a drawdown of the Strategic
Petroleum Reserve, assist the insular area in its efforts to
maintain adequate supplies of petroleum products from
traditional and non-traditional suppliers.''.
(b) Regulations.--
``(1) In general.--The Secretary of Energy shall issue such
regulations as are necessary to carry out the amendment made
by subsection (a).
``(2) Administrative procedure.--Regulations issued to
carry out the amendment made by subsection (a) shall not be
subject to--
(A) section 523 of the Energy Policy and Conservation Act
(42 U.S.C. 6393); or
(B) section 501 of the Department of Energy Organization
Act (42 U.S.C. 7191).
(c) Effective Date.--The amendment made by subsection (a)
takes effect on the earlier of--
(1) the date that is 180 days after the date of enactment
of this Act; or
(2) the date that final regulations are issued under
subsection (b).
SEC. 3. ENERGY POLICY ACT OF 1992 AMENDMENT.
Section 2603 of the Energy Policy Act of 1992 (25 U.S.C.
3503) is amended in subsection (c) by striking ``and 1997''
each place it appears and inserting ``1997, 1998, 1999, and
2000'' in lieu thereof.
SEC. 4. ENERGY CONSERVATION AND PRODUCTION ACT AMENDMENT.
Section 422 of the Energy Conservation and Production Act
(42 U.S.C. 6872) is amended to read as follows:
``AUTHORIZATION OF APPROPRIATIONS
``Sec. 422. For the purpose of carrying out the
weatherization program under this part, there are authorized
to be appointed for each of fiscal years 1998 through 2002
such sums as may be necessary.
{time} 1315
Motion Offered by Mr. Dan Schaefer of Colorado
Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I offer a motion.
The SPEAKER pro tempore (Mr. Sununu). The Clerk will report the
motion.
The Clerk read as follows:
Mr. Dan Schaefer, of Colorado moves to strike out all after
the enacting clause of S. 417, and insert in lieu thereof the
provisions of H.R. 4017 as passed by the House.
The motion was agreed to.
The Senate bill was ordered to be read a third time, and was read the
third time.
The title of the Senate bill was amended so as to read: ``A bill to
extend certain programs under the Energy Policy and Conservation Act
and the Energy Conservation and Production Act, and for other
purposes.''
The motion to reconsider was laid on the table.
A similar House bill (H.R. 4017) was laid on the table.
____________________