[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.
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