[Congressional Record Volume 144, Number 138 (Tuesday, October 6, 1998)]
[Extensions of Remarks]
[Page E1918]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            ENERGY CONSERVATION REAUTHORIZATION ACT OF 1998

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                               speech of

                          HON. MARK E. SOUDER

                               of indiana

                    in the house of representatives

                       Monday, September 28, 1998

  Mr. SOUDER. Mr. Speaker, later this week we are planning to vote on 
almost $4 billion in emergency aid for America's farmers. This package 
is a combination of relief from the natural disasters much of the 
country has experienced this year, and market loss assistance. In 
particular, the market loss provision addresses the collapse of foreign 
markets which account for almost 40% of what we produce. In 1996, we 
began a much needed revision of our nation's farm policy. We passed the 
Freedom to Farm Act to phase out farmer's dependency on government 
subsidy and give them the flexibility to choose which crops to plant, 
and how to plant them. In addition we encouraged farmers to seek out 
new markets for their products, and they have. A great example of a 
developing market is biodiesel: an alternative fuel which is derived 
from crops such as soybeans, rapeseed, canola and more.
  H.R. 4017, the Energy Conservation Reauthorization Act, also provides 
an important means to help farmers move into markets for biodiesel. 
This bill is not a subsidy, as Washington has tried in the past, but 
amends the Energy Policy Act of 1992 (EPACT) to allow biodiesel to be 
considered as an alternative fuel. EPACT requires that federal, state, 
and limited private fleets acquire alternatively fueled vehicles.
  For the first time under EPACT, H.R. 4017 would provide strong 
incentives to provide for fleet managers to actually use the 
alternative fuel rather than simply acquire additional alternative 
fueled vehicles that may never run on the alternative fuels for which 
they were designed. H.R. 4017 enables fleet managers to use blends of 
at least 20% biodiesel to comply with EPACT requirements. Fleets may 
count the biodiesel portion of that blend toward a portion of their 
annual EPACT vehicle purchase requirement. A minimum of 450 gallons of 
biodiesel must be purchased and actually used by a covered fleet to 
qualify the use of fuel as a substitute for a vehicle acquisition. The 
provision does not create any new mandates or impose any new 
requirements on covered fleets. Instead it rewards the use of 
alternative fuel to achieve the goals of EPACT, to displace imported 
petroleum.
  In addition to providing an alternative to foreign oil, biodiesel 
helps reduce emissions. Biodiesel runs cleaner than regular diesel fuel 
which means less particulate matter, hydrocarbons, and carbon monoxide 
is released into the atmosphere. This alternative fuel would be used 
primarily by heavy-duty fleet vehicles, such as city buses, boats and 
trucks.
  What we are attempting to do with this provision is broaden the field 
of options in complying with the mandates of EPACT, not subsidize a 
particular fuel. This provision does not require new spending. In fact, 
the Congressional Budget Office estimates that this provision will save 
the federal government $40 million over the next 5 years. I fully 
support H.R. 4017, because I appreciate the way it encourages 
innovation and development as a way of addressing environmental issues.
  This bill helps to create a significant new market for Hoosier 
soybean farmers. According to USDA, H.R. 4017 may add as much as 7 
cents to the value of a bushel of soybeans. When we help increase real 
demand for soybeans, not simply subsidize them, we increase the price 
and put more dollars in the hands of working family farmers. I am 
pleased that in addition to immediate relief, this Congress is taking 
concrete steps to ensure the survival and prosperity of Hoosier 
farmers.




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