[Congressional Record Volume 144, Number 147 (Thursday, October 15, 1998)]
[House]
[Pages H10951-H10955]
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 concur in the Senate amendment to the House amendments to the 
Senate bill (S. 417) to extend energy conservation programs under the 
Energy Policy and Conservation Act through September 30, 2002.
  The Clerk read as follows:

       Senate Amendments to House Amendments:
       Page 13, after the matter following line 19, of the House 
     engrossed amendments, insert:

     SEC. 9. 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, 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

[[Page H10952]]

     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
       ``(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 results 
     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, the Secretary shall, for a 
     period not to exceed 180 days following a drawdown of the 
     Strategic Petroleum Reserve, assist the insular area or the 
     President of a Freely Associated State in its efforts to 
     maintain adequate supplies of petroleum products from 
     traditional and nontraditional 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 (a).

     SEC. 10. INDIAN ENERGY RESOURCE DEVELOPMENT.

       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 ``1999, 2000, 2001, 2002 
     and 2003'' in lieu thereof.

     SEC. 11. REMEDIAL ACTION.

       (a) Section 1001(b)(2)(C) of the Energy Policy Act of 1992 
     (42 U.S.C. 2296a) is amended by striking ``$65,000,000'' and 
     inserting ``$140,000,000''.
       (b) Section 1003(a) of such Act (42 U.S.C. 2296a-2) is 
     amended by striking ``$415,000,000'' and inserting 
     ``$490,000,000''.
       (c) Section 1802(a) of the Atomic Energy Act of 1954 (42 
     U.S.C. 2297g-1) is amended by striking ``$480,000,000'' and 
     inserting ``$488,333,333''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Colorado (Mr. Dan Schaefer) and the gentleman from Texas (Mr. Hall) 
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 include extraneous material on S. 417.
  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 5 minutes.
  Mr. Speaker, today, the House does consider S. 417, the Energy 
Conservation Reauthorization Act of 1998. S. 417 improves U.S. energy 
security by reauthorizing various conservation programs. It also 
reduces the energy bills paid by low income consumers, cuts the energy 
bill paid by the taxpayers through improving the energy efficiency of 
Federal agencies, and promotes energy security by encouraging the use 
of biodiesel fuel to reduce dependence on the petroleum motor fuels.
  This is not a controversial bill. It passed the House on September 28 
by a voice vote, and it had very strong bipartisan support. The 
original House bill was introduced jointly by the ranking member of the 
Subcommittee on Energy and Power, the gentleman from Texas (Mr. Hall), 
and was strongly supported by many on the other side of the aisle. When 
the House considered the bill last month, not one Member rose in 
opposition.
  The Senate approved an amendment to S. 417 that adds three sections 
to the bill. One section assures that the State of Hawaii has access to 
oil from the Strategic Petroleum Reserve in the event of a drawdown. 
Another reauthorizes a program that assists Indian tribes develop 
energy sources of their own. The final section provides for cleanup of 
contaminated thorium sites. I have no objections to the Senate 
amendment.
  The first section of the Senate amendment assures the State of Hawaii 
has access to oil supplies in the event of a Strategic Petroleum 
Reserve drawdown. The State of Hawaii needs assurance of access to oil 
during a SPRO drawdown because it is much more dependent on oil in 
other parts of the U.S.
  This amendment does not undermine the SPRO of which I am very 
favorable to for many years. I have spent the last 4 years fighting to 
protect the SPRO against misguided attempts to sell off our Nation's 
oil stockpile. I have done so to assure that the SPRO is available in 
the event of an oil supply emergency. I would not support the Senate 
amendment if it undermined the SPRO reserves.
  The Senate amendment also reauthorizes a program that provides grants 
and loans to Indian tribes to assist their development of energy 
resources. Many Indian tribes are in remote areas that are not well-
connected to the electric and natural gas transmission system. This 
program provides funding to assist Indian tribes develop energy 
resources.
  The new thorium section addresses concerns about the adequacy of 
funding for contaminated thorium sites. In the Energy Policy Act of 
1992, the Federal government accepted responsibility for funding its 
fair share of cleanup at such sites. The Senate amendment simply 
ensures the Federal government continues to own up to its 
responsibility for thorium cleanup.
  I urge support for S. 417.
  Mr. Speaker, I reserve the balance of my time.
  Mr. HALL of Texas. Mr. Speaker, I yield myself such time as I may 
consume.
  (Mr. HALL of Texas asked and was given permission to revise and 
extend his remarks.)
  Mr. HALL of Texas. Mr. Speaker, I am pleased, of course, today to 
rise in support of this bill, the underlying vehicle for this package 
of legislation, H.R. 4017, which was introduced by the chairman of the 
Subcommittee on Energy and Power, my good friend, the gentleman from 
Colorado (Mr. Dan Schaefer), and have joined him as a cosponsor. That 
measure passed the House, I think, back in September.

[[Page H10953]]

  Due to what then appeared to be the lateness of the congressional 
session, the body of H.R. 4017 was substituted for the text of a bill 
that was being held at the Speaker's desk, the Senate bill, S. 417, and 
forwarded to the Senate.
  The other body added three other provisions to the measure, and they 
returned it to us. The provisions would ensure, and this is a very 
important segment of it, ensure that Hawaii was guaranteed access to 
the Strategic Petroleum Reserve during an oil supply disruption, and 
extend the authorization of some things.
  But because of the distance of Hawaii, and not being contiguous to 
the other 48 States, they are in a peculiar and a different position 
and have an access to the SPRO, as does the State of Texas and other 
States that are here in the 48.
  This bill is a companion to H.R. 2472 that the President signed into 
law on June 1. A new energy security law reauthorized the SPRO and 
amended the international energy agency statutes to comply.
  Actually, the use of biodiesel, that is a part of this that the 
gentleman from Illinois (Mr. Shimkus) and the gentlewoman from Missouri 
(Ms. McCarthy) have added that will help make biodiesel blended fuel a 
more attractive option as a replacement fuel under the Energy Policy 
Act of 1992 that will give them some more leeway and some more help in 
addition to having access to the SPRO. The use of biodiesel will reduce 
the carbon dioxide emissions. There is a lot of good things it does.

                              {time}  1315

  It reduces other air pollutants, particulates, carbon monoxide and 
sulfur dioxide. Our new Secretary of Energy also, Mr. Bill Richardson, 
highlighted these facts when as a member of the House he joined 33 of 
the other colleagues here writing to then Secretary of Energy Mrs. 
O'Leary to urge DOE to include a 20 percent biodiesel blend as an 
alternative fuel under the 1992 Energy Policy Act.
  I think it is a good act. I urge that we pass this act.
  Mr. Speaker, I am pleased to rise today in support of S. 417. The 
underlying vehicle for this package of legislation, H.R. 4017, was 
introduced by the chairman of the Energy and Power Subcommittee, my 
good friend Dan Schaefer. I joined him as an original cosponsor, and 
that measure passed the House by voice vote on September 28. Due to 
what then appeared to be the lateness of the congressional session, the 
body of H.R. 4017 was substituted for the text of a bill that was being 
held at the Speaker's desk, S. 417, and forwarded to the Senate. The 
other body added three other provisions to that measure and returned it 
to us. Those provisions would ensure that Hawaii has guaranteed access 
to the Strategic Petroleum Reserve during an oil supply disruption, 
extend the authorization of the Indian Energy Resources Program through 
2003, and authorize additional funding for cleanup of a thorium-
contaminated site in West Chicago, Illinois.
  This bill is a companion measure to H.R. 2472, which the President 
signed into law on June 1st. That new energy security law reauthorized 
the Strategic Petroleum Reserve and amended the International Energy 
Agency statutes.
  The bill before us today reauthorizes several small, but important, 
energy conservation programs for five years. They include: the State 
Energy Conservation Program and Institutional Conservation Program; and 
the weatherization conservation program in the Energy Conservation and 
Production Act.
  The bill also includes a number of technical changes to the three 
statutes that are being reauthorized or amended: the Energy Policy and 
Conservation Act; the Energy Conservation and Production Act; and the 
National Energy Conservation Policy Act. I commend the staff, both with 
our Committee and with the Legislative Counsel's office, for their 
attention to detail and for the time they have committed to this effort 
to make our public laws as accurate and as easy to interpret as 
possible.
  Additionally, S. 417 makes legislative and judicial branch entities 
eligible to enter into Energy Savings Performance Contracts and extends 
permanently the provisions of the Defense Production Act of 1950 which 
provide the President with priority contracting authority for projects 
which maximize domestic energy supplies in times of emergency.
  This legislation also includes a very important, bipartisan 
amendment, authored by Representatives Shimkus of Illinois and Karen 
McCarthy of Missouri, that will help make biodiesel blended fuel a more 
attractive option as a replacement fuel under the Energy Policy Act of 
1992. This amendment sets up a credit mechanism, through which heavy 
duty vehicle users may accumulate modest credits that may be used, 
under the existing provisions of the 1992 Act, to help fleets meet 
their petroleum displacement requirements. This language, which was 
adopted by the Commerce Committee after lengthy, bipartisan 
negotiations that included representatives of the Natural Gas Vehicle 
Coalition and the National Biodiesel Board, is a modified version of 
H.R. 2568, legislation introduced by Representatives Shimkus and 
McCarthy.
  Mr. Speaker, the use of biodiesel will reduce carbon dioxide 
emissions. Biodiesel use also substantially reduces other air 
pollutants--particulars, carbon monoxide and sulfur dioxide. Our new 
Secretary of Energy, former House Commerce Committee member Bill 
Richardson, highlighted these facts when, as a member of this House, he 
joined with 33 of his colleagues in writing to then-Energy Secretary 
O'Leary to urge DOE to include a 20 percent biodiesel blend as an 
alternative fuel under the 1992 Energy Policy Act. I include a copy of 
this correspondence with my statement and urge my colleagues to support 
this legislation today so it can be sent to the President for his 
signature.

                                                U.S. Congress,

                                 Washington, DC, October 25, 1996.
     Hon. Hazel R. O'Leary,
     Secretary, U.S. Department of Energy,
     Washington, D.C.
       Dear Secretary O'Leary, As members of the U.S. House of 
     Representatives concerned with our nation's energy security, 
     we would like to express our support for biodiesel, a 
     renewable alternative fuel for diesel engines derived from 
     vegetable oils, such as soybean oil. We believe the 
     Department of Energy (DOE) should initiate a rulemaking to 
     include B20, a 20% biodiesel/80% diesel fuel blend, as an 
     alternative fuel under the Energy Policy Act of 1992 (EPACT). 
     B20 is good for farmers, good for the environment, good for 
     the economy and will contribute to national energy security. 
     Including B20 as an alternative fuel would also be consistent 
     with the legislative intent of EPACT.
       Biodiesel has important environmental benefits. Biodiesel 
     is registered with the EPA as a fuel and fuel additive. 
     Scientific evidence demonstrates that using B20 reduces most 
     harmful exhaust emissions from diesel engines. Biodiesel can 
     also be processed from recycled cooking oils and waste animal 
     fats.
       Biodiesel promotes economic development and energy 
     security. As a renewable fuel, biodiesel offers America's 
     farmers stable, long-term markets for efficiently-produced 
     soybean oil. Biodiesel also means jobs and tax revenues from 
     processing a greater portion of our domestic soybean oil in 
     the U.S. Use of domestic biodiesel improves national energy 
     security by displacing imported energy.
       Under current DOS regulations, 75% of affected federal and 
     state government fleet vehicle purchases and 90% of affected 
     fleet vehicle purchases by private alternative fuel suppliers 
     must be alternative fueled vehicles by the year 2001. Future 
     DOE EPACT regulations may extend similar vehicle purchase 
     requirements to municipal and other large private company 
     fleets.
       Congress clearly intended that EPACT should be ``fuel 
     neutrial'' Fuel neutrality simply means there is no 
     presumption in the law to favor any particular alternative 
     fuels as a means of compliance with the goals of EPACT. 
     Congress made EPACT fuel neutral to give regulated fleets the 
     flexibility to decide which alternative fuels are compatible 
     with their operations. B20, therefore, will give regulated 
     fleets greater flexibility to comply with EPACT.
       B20 is the most popular biodiesel blend tested so far with 
     diesel consumers and engine manufacturers. B20 provides many 
     of the environmental and safety benefits of pure biodiesel at 
     a fraction of the cost. B20 is also compatible with existing 
     diesel engine maintenance and refueling facilities. More than 
     10 million miles of in-service pilot programs have been 
     conducted across the nation using B20. For these reasons, B20 
     should be a popular EPACT compliance option for regulated 
     fleets that use diesel vehicles.
       Before B20 can be included as an EPACT alternative fuel, 
     the DOE must amend its current regulations. The American 
     Soybean Association and other supporters of B20 have recently 
     submitted a petition to the DOE to initiate a B20 rulemaking. 
     Initiating a rulemaking will allow the DOE to collect data on 
     B20 and to render a reasoned decision. Once all of the data 
     on the benefits of B20 is placed in the public record, we are 
     confident that you will decide to include B20 as an 
     alternative fuel. Therefore, we urge you to immediately 
     initiate a rulemaking to amend existing DOE regulations to 
     include B20 as an EPACT alternative fuel.
       The recent re-escalation of conflict in the Middle East has 
     again highlighted our nation's dependence on imported energy. 
     Including B20 as an EPACT alternative fuel will allow 
     domestically produced biodiesel to immediately play a role in 
     reducing that dependence. It will also benefit the 
     environment, our farmers and our economy, as well as assist 
     regulated fleets to comply with EPACT.
       We appreciate your active interest in expanding the role of 
     renewable fuels in U.S.

[[Page H10954]]

     energy policy. Please keep us apprised of your progress on 
     this important matter.
           Sincerely,
         Tom Latham, -- --, Jim Bunning, Dick Durbin, Jerry F. 
           Costello, Doug Bereuer, Jan Meyers, Lane Evans, Bill 
           Richardson, Ed Bryant, John Spratt, Tom Ewing, Tim 
           Hutchinson, John D. Dingell, Glenn Poshard, James A. 
           Leach, -- --Ed Whitfield, David Minge, Jim Lightfoot, 
           Collin C. Peterson, Charles T. Canady, Ron Lewis, John 
           Joseph Moakley, Roger F. Wicker, Jim Nussle, Greg 
           Ganske, --,-- --, Walter B. Jones, Jr., -- --, Dave 
           Camp, Saxby Chambliss, Eva M. Clayton.

  Mr. Speaker, I reserve the balance of my time.
  Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I yield 1 minute to the 
gentleman from Minnesota (Mr. Gutknecht).
  Mr. GUTKNECHT. Mr. Speaker, Steven Covey in his book ``The Seven 
Habits of Highly Effective People'' says one of the most important 
habits is to think win-win. I am very happy about this bill today and I 
am very happy to stand in support, particularly of the biodiesel 
portion of this because this is not just win-win, it really is win-win-
win. It is a win for our environment because when you blend soybean oil 
with diesel fuel, you cut particulates by almost half. If you have ever 
sat behind a diesel truck or a bus when it was taking off, I think the 
whole notion of eliminating or cutting those particulates by 50 percent 
is something that clearly is a win for the environment. It is also a 
win for our farmers because the Soybean Growers Association says this 
bill will add between 7 and 10 cents to the price of a bushel of 
soybeans. Particularly in this market, that is very much an important 
win for our farmers. But finally it is a win for our energy 
independence. We really have not had much of an energy policy for the 
last several years. This is a good step in the right direction.
  I want to congratulate the gentleman from Illinois (Mr. Shimkus), the 
gentleman from Colorado (Mr. Dan Schaefer), the gentleman from Texas 
(Mr. Hall) and all of the Members of Congress who have worked on this 
very important piece of legislation. It really is a win-win-win 
situation.
  Mr. HALL of Texas. Mr. Speaker, I yield 3 minutes to the gentleman 
from Ohio (Mr. Traficant).
  Mr. TRAFICANT. Mr. Speaker, I want to associate myself with the 
comments of our chairman the gentleman from Colorado (Mr. Dan 
Schaefer), the gentleman from Texas (Mr. Hall) and all the supporters 
of this bill. I believe energy independence should be a goal of the 
Congress in addition to conservation and our environment. But I have 
asked for this time for a different reason. Our illustrious chairman, 
the gentleman from Colorado (Mr. Dan Schaefer), this is probably and, 
unless he has another bill today, could be his last bill.
  There are so many Members that love Dan Schaefer. He has been a great 
chairman, a great friend and everybody on both sides of the aisle 
appreciates that. I want you to know that from the bottom of my heart 
and I thank you.
  I want to cite one example. Although he destroyed the Democrat 
baseball team every year, he is undefeated with help from guys like 
Shimkus and Largent, et cetera, but he even played Ileana Ros-Lehtinen 
and Jo Ann Emerson. And I said to him, ``Chairman, you're playing these 
two women and if you had any guts you'd call them into your office and 
cut them,'' naturally jokingly. And he laughed. But then he not only 
played Ileana and Jo Ann Emerson, he found the time to put them in the 
game and reward them, two great women in our Congress, for having 
practiced. I cite that, because that is about the way Dan Schaefer is; 
fair, he made sure everybody got a shot, he did that with me and my 
district, and we thank you, Chairman. With that, I support this bill 
very strongly.
  Mr. HALL of Texas. Mr. Speaker, will the gentleman yield?
  Mr. TRAFICANT. I yield to the gentleman from Texas.
  Mr. HALL of Texas. Would the gentleman also join me in this next 
session if in the event we are both back, and I am hoping we will be, 
that when we do finally deregulate electricity that that bill be named 
the Electrical Deregulation Schaefer Bill of 1999 or maybe the Schaefer 
Bill of the Year 2010 or something like that?
  Mr. TRAFICANT. Reclaiming my time, I think we could also say that 
this chairman has his fingerprints on changing the tax policy in 
America, too. But if I am back, I want to see a building named after 
the illustrious chairman.
  I thank him for all he has done.
  Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I yield 2 minutes to the 
gentleman from Illinois (Mr. Shimkus), the author of the biodiesel 
bill.
  Mr. SHIMKUS. Mr. Speaker, I want to thank the gentleman from Colorado 
(Mr. Dan Schaefer) and I want to thank the gentleman from Virginia (Mr. 
Bliley) for their hard work and persistence in bringing S. 417 to the 
floor today. Included in this legislation is language which the 
gentlewoman from Missouri (Ms. McCarthy) and I authored to promote the 
use of biodiesel fuel.
  Our legislation would afford vehicle fleet managers affected by the 
Energy Policy Act of 1992 more flexibility to comply with the onerous 
mandates of this act by allowing them to substitute actual biodiesel 
fuel used for vehicle acquisitions.
  This legislation would also enhance our national energy security by 
developing an environmentally friendly diesel fuel which is made in 
America. As many of my colleagues know by now, biodiesel is derived 
from agricultural products such as soybeans, rapeseed or beef tallow. 
Some producers even make this fuel out of reprocessed deep fryer fat. 
In short, biodiesel will reduce our nation's dependence on foreign oil 
imports.
  This legislation is supported by numerous organizations, including 
the American Soybean Association, the Natural Gas Vehicle Coalition, 
the American Farm Bureau Federation and many others.
  Mr. Speaker, I also want to thank a staff member of the House 
Commerce Committee, Joe Kelliher. He has done excellent work on this 
issue and has always made his services available to me and my staff. 
Thank you, Joe.
  Mr. ABERCROMBIE. Mr. Speaker, I rise in strong support of S. 417, the 
Energy Conservation Reauthorization Act of 1998.
  The legislation we are considering today is important to the State of 
Hawaii and the Nation. Hawaii and the Pacific territories have special 
needs during an energy emergency since we are isolated from the U.S. 
energy supply by more than 7,000 miles or one-quarter of the way around 
the globe. Oil accounts for more than 90 percent of Hawaii's energy and 
almost all of our oil is imported. In addition, we depend entirely on 
oil for our electricity generation.
  The U.S. Strategic Petroleum Reserve in Louisiana and Texas is 
designed to help all consumers by dampening price rises and using 
markets to allocate oil efficiently through swaps or proximity 
delivery. Even so, time emergency deliveries are still problematic. 
Since all of our oil is delivered by tanker, we are very vulnerable to 
a cutoff of oil supplies. This bill gives Hawaii emergency access to 
the Strategic Petroleum Reserve so that we can submit a special bid for 
oil during a declared emergency.
  The oil price from the Strategic Petroleum Reserve would equal the 
average of all SPR bids accepted by the Department of Energy. This bill 
also permits Hawaii to enter into an exchange agreement directing the 
SPR oil to be delivered to locations other than Hawaii.
  Another important provision in this bill is the biodiesel amendment. 
This provision should be important to all farmers and people concerned 
about the environment. Biodiesel is a renewable alternative fuel 
derived from vegetable oil or animal fat. It can be made from soybeans, 
canola, and even waste oils from fast food restaurants.
  Biodiesel fuel has many advantages. It is nontoxic. It can cut 
emissions of particulate matter and hydrocarbons in half. It can also 
reduce greenhouse gas emissions. Most important, biodiesel can reduce 
our national reliance on foreign oil.
  Biodiesel can be used directly in bus, truck, and marine vessel 
diesel engines. It does not require new refueling stations, new parts 
or expensive engine modifications.
  Islands are particularly suited to the manufacture of biodiesel 
fuels, as shown by Pacific Biodiesel. All islands have a difficult time 
disposing of waste products since landfill space is limited. On the 
islands of Hawaii, used cooking oils were unnecessarily taking up 
landfill space. Pacific Biodiesel currently processes 10,000 gallons of 
used cooking oil each month into premium biodiesel fuel. Many of the 
hotel buses in Hawaii now use biodiesel fuel that is produced by 
Pacific Biodiesel. Boats in the marinas are also using this high-
quality fuel.

[[Page H10955]]

  The amendments to this bill will protect Hawaii from an energy 
crisis. They will also help our farmers and our environment. I urge my 
colleagues to support S. 417.
  Ms. McCARTHY of Missouri. Mr. Speaker, I rise in support of S. 417 as 
amended by the Senate last week. This legislation, a companion to H.R. 
4017 of which I am a co-sponsor, represents a bipartisan, bicameral, 
win-win solution for communities like Kansas City which currently find 
it cost-prohibitive to comply with the requirements of the Energy 
Policy Act.
  On September 29, 1998, the day after H.R. 4017 passed the House, I 
participated in a Forum on Transportation, sponsored jointly by the 
Kansas City Chamber of Commerce and the Mid America Regional Council. 
When I shared with the Forum participants the news of our success with 
H.R. 4017 in the House, they were very excited about the opportunities 
this legislation would present for the use of biodiesel products in 
metropolitan transportation fleets and for the growth of associated 
markets, such as agricultural waste products and soybean products.
  S. 417 is a step in the right direction--for cleaner air, for less 
dependence on foreign petroleum, for opening up new markets for 
indigenous energy use, and for cost-effective compliance with EPAct 
standards. I urge my colleagues to support this measure. Thank you.
  Mr. DINGELL. Mr. Speaker, I am pleased to support S. 417, which 
incorporates legislation previously reported by the House as well as 
several new provisions added by the Senate. The bill is companion 
legislation to H.R. 2472, which was signed into law by the President 
earlier this year and reauthorized other provisions of the Energy 
Policy and Conservation Act (EPCA).
  The measure before us today reauthorizes several other EPCA programs 
pertaining to energy conservation for a period of five years. The bill 
makes needed technical changes to EPCA, the National Energy 
Conservation Policy Act, and the Energy Conservation and Production 
Act. In addition, the bill authorizes legislative and judicial branch 
entities to enter into Energy Savings Performance Contracts and extends 
a provision of the Defense Production Act of 1950 granting the 
President priority contracting authority for projects which maximize 
domestic energy supplies in times of emergency.
  In addition to these important reauthorizations, S. 417 amends the 
Energy Policy Act of 1992 to help biodiesel blended fuel a more 
attractive option as a replacement fuel. This bipartisan amendment, 
coauthored by Representative Shimkus and Representative Karen McCarthy, 
will reduce emissions of carbon dioxide and air pollutants.
  The legislation also reauthorizes a program initiated under the 
Energy Policy Act of 1992 to promote energy resource development on 
Indian reservations, and amends that Act to facilitate the continued 
clean up of a contaminated thorium site in West Chicago, Illinois.
  Finally, the legislation amends EPCA to provide the State of Hawaii 
special access to the Strategic Petroleum Reserve (SPR) during a 
declared oil supply emergency. Agreement to include this provision 
would not have been achieved without the tireless efforts of Mr. 
Abercrombie, who brought this issue to our attention and helped forge a 
consensus.
  Hawaii depends entirely on oil imports for electric generation, and 
this provision is critical to ensuring its citizens' well-being during 
an oil supply emergency. The legislation authorizes Hawaii to submit a 
special bid for SPR oil during a declared oil emergency, and to 
purchase the oil at the average price of other bids accepted by the 
Department of Energy.
  Of course, other parties also are entitled to bid on SPR oil in an 
emergency, and the Secretary of Energy may limit the amount of oil made 
available to Hawaii under this measure. Finally, in keeping with other 
provisions in ERCA, the bill allows Hawaii to enter into an exchange 
agreement directing that SPR oil be delivered to locations other than 
Hawaii. The right to exchange SPR oil, however, is conditioned on the 
obligation to deliver oil of similar quantity to Hawaii. This will help 
ensure that the benefits reach the citizens of Hawaii, rather than 
speculators who might wish to resell SPR oil for great profit on the 
open market.
  I commend my colleagues on both sides of the aisle for their 
cooperation in crafting and reaching agreement on this important 
legislation, and urge my colleagues to support the bill.
  Mr. HALL of Texas. Mr. Speaker, I have no further requests for time, 
and I yield back the balance of my time.
  Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I have no further requests 
for time, and I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Ballenger). The question is on the 
motion offered by the gentleman from Colorado (Mr. Dan Schaefer) that 
the House suspend the rules and concur in the Senate amendment to the 
House amendments to the Senate bill, S. 417.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the Senate amendment to the House 
amendments was concurred in.
  A motion to reconsider was laid on the table.

                          ____________________