[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.

                          ____________________