[Congressional Record Volume 146, Number 141 (Tuesday, October 31, 2000)]
[Senate]
[Pages S11419-S11421]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          THE NEED FOR A BIPARTISAN APPROACH TO ENERGY POLICY

  Mr. AKAKA. Mr. President, I rise today to talk about an issue which 
has, of late, affected the lives of all Americans. I am talking about 
rising energy costs. All indications suggest that America's summer of 
discontent is going to continue and become the winter of discontent 
with respect to energy prices. Americans have paid recordbreaking 
prices at the pump this summer. They will continue to suffer escalating 
prices this winter, too. Higher energy prices hit most those Americans 
who can afford it the least. But more important, the findings of an 
international panel of scientists has concluded that man-made 
greenhouse gases are altering the atmosphere in ways that affect 
earth's climate.
  The World Meteorological Organization and the United Nations 
Environment Program established the Intergovernmental Panel on Climate 
Change (IPCC) in 1988. The function of IPCC is to assess available 
information on the science, impacts, and crosscutting economic issues 
related to climate change, in particular a possible global warming 
induced by human activities. The IPCC completed its first assessment 
report in August 1990 which indicated with certainty an increase in the 
concentration of greenhouse gases due to the human activity. The report 
assisted the governments of many countries in making important policy 
decisions, in negotiating, and in the eventual implementation of the UN 
Framework Convention on Climate Change which was signed by 166 
countries at the UN Conference on Environment and Development at Rio de 
Janeiro in 1992. The convention was ratified in December 1993 and took 
effect on 21 March 1994. IPCC also issued another assessment in 1995.
  I find the conclusions of the panel's latest assessment alarming. One 
of its most striking findings is its conclusion that the upper range of 
warming over the next century could be even higher than the panel's 
1995 estimates.
  The evidence of increasing warming has shown up in different places--
retreating glaciers and snow packs, thinning polar ice, and warmer 
nights. There is a growing consensus that humans are playing a 
significant role in climate change. Even some of those who dissent from 
the view that human activity is altering the climate concede that human 
influence on the earth's climate is established.
  I rise today, in the closing days of the 106th Congress, to urge all 
interested organizations and individuals to begin working now to 
address energy issues early in the next Congress. We have two distinct 
problems to address. First, we must ensure that Americans continue to 
enjoy reasonably priced energy now and in the future. Second, we must 
work on the development of environmentally sound solutions to our 
energy problem in the mid- to long-term timeframe.
  In the last few months we have had several hearings on electricity 
restructuring, oil prices, supply and demand, gasoline price hikes, 
natural gas, and the Strategic Petroleum Reserve. All these hearings 
point to one thing--that we have problems with our energy picture, and 
they need to be fixed, and fixed soon.
  Our energy problem has been in the making for a long time. For the 
last thirty years, we have had several energy crises. The reasons for 
all of these crises were the same: actions and crises in the Middle 
East, rising American demand, bigger cars, and so on. The crisis this 
year is no different. Whenever the Middle East sneezes, Americans catch 
cold. American pockets books have suffered these periodic colds. But 
the people of Hawaii have suffered a long and almost interminable cold. 
Throughout the 1990's, Hawaii has been the number one state in terms of 
gas prices at the pump. It relinquished this dubious honor to states in 
the Midwest this summer. This has to stop. We must ensure that 
Americans get energy at reasonable prices.
  Our import dependence has been rising for the past two decades. The 
combination of lower domestic production and increased demand has led 
to imports making up a larger share of total oil consumed in the United 
States. Last year crude oil imports amounted for 58 percent of our oil 
demand. Oil imports will exceed 60 percent of total demand this year. 
Imports will constitute 66 percent of the U.S. supply by 2010, and more 
than 71 percent by 2020. Continued reliance on such large quantities of 
imported oil will frustrate our efforts to develop a national energy 
policy and set the stage for energy emergencies in the future.
  Transportation demands on imported oil remain as strong as ever. 
Since the oil shock of the 1970s, all major energy consuming sectors of 
our economy with the exception of transportation have significantly 
reduced their dependence on oil. The transportation sector remains 
almost totally dependent on oil-based motor fuels. The fuel efficiency 
of our vehicles needs to be improved.
  U.S. natural gas demand in the last decades has increased 
significantly. It is expected to grow by more than 30 percent over the 
next decade. Demand for natural gas from each of the major consuming 
sectors--residential, commercial, industrial, and electricity 
generation will increase. Electricity generation accounts for the 
lion's share of this increase at 50 percent of the increase.
  We are facing problems on both sides of the supply and demand 
equation. Worldwide supplies of available energy sources are getting 
tighter and demand is increasing. This only means that unless one side 
of the equation changes, we will continue to have energy problems.
  We cannot look at our energy sources in a piecemeal fashion. We will 
have to take a comprehensive look at all aspects of our energy picture. 
The only way to deal with our energy problem is to have a multifaceted 
energy strategy and remain committed to that strategy. We must adopt 
energy conservation, encourage energy efficiency, and support renewable 
energy programs. Above all, we must develop energy resources that 
diversify our energy mix and strengthen our energy security.
  I urge all interested organizations and individuals to work together 
to strengthen our energy policy, an energy policy that serves the 
American public.
  In the short term, we can do this by building upon a lot of good work 
that has already been done. Initiatives such as the deep water royalty 
incentives proposed by our former colleague, Senator Bennett Johnston 
and supported by the Administration have been major contributors to the 
65 percent increase in offshore oil production under this 
Administration. Policies that led to the increases in natural gas 
production in deep waters by 80 percent in just the past two years are 
welcome. Natural gas production on Federal lands has increased by 
nearly 60 percent since 1992. This is a good sign that we are able to 
utilize our national resources in an environmentally responsible 
manner.
  Initiatives such as the Interagency Working Group on Natural Gas, the 
Federal Leadership Forum to address environmental review processes, a 
resource assessment for Wyoming oil and gas, and technology partnering 
with the Bureau of Land Management to improve access to Federal lands 
will provide increased energy resources.
  In 1998, DOE and the Occidental Petroleum Corporation, concluded the 
largest divestiture of federal property in the history of the U.S. 
government. The sale of Elk Hills Naval Petroleum Reserve in California 
for $3.65 billion underscored the Clinton Administration's faith in the 
private sector to carry responsible development of the 11th largest of 
the Nation's oil and gas fields.
  The Clinton Administration has proposed several tax incentives to 
encourage new domestic exploration and production and to lower the 
business costs of the producers when oil prices are

[[Page S11420]]

low. It also proposed tax credits for improving energy efficiency and 
promoting use of renewable energy. Tax reforms would help us improve 
our energy supply picture.
  The Administration has also advanced legislation to address the issue 
of restructuring the electric utility industry. A number of other 
restructuring proposals have been made. The electric utility industry 
is an integral part of the overall energy supply and demand equation.
  The restructuring that we are talking about essentially involves the 
lower 48 States that are contiguous. Some may ask what is in it for 
Hawaii? It is not connected to the national grid. The answer is simple. 
Hawaii imports from the Mainland a vast portion of goods and services 
it consumes. Reduction in production costs on the Mainland because of 
competition unleashed by electric utility industry restructuring would 
benefit the people of Hawaii.
  We can build upon the Clinton Administration's accomplishments. Its 
strategically focused energy policy encompasses economic, 
environmental, and national security considerations. It is a balanced 
approach.
  The effects of major global climate change on the U.S. and the rest 
of the world will be devastating. I will take a few minutes here to 
describe the effect of climate change on Hawaii. Being a state 
consisting of islands with limited land mass, we are, as we must be, 
sensitive to global climate changes. We are tropical paradise and we 
would like to stay that way. But the worldwide problem of greenhouse 
gases threatens our well-being.

  Honolulu's average temperature has increased by 4.4 degrees over the 
last century. Rainfall has decreased by about 20 percent over the past 
90 years. By 2100, average temperatures in Hawaii could increase by one 
to five degrees Fahrenheit in all seasons and slightly more in the 
fall. New data may revise this estimation upward.
  Estimates for future rainfall are highly uncertain because reliable 
projections of El Nino do not exist. It is possible that large 
precipitation increases could occur in the summer and fall. It is also 
not yet clear how the intensity of hurricanes might be affected.
  The health of Hawaii's people may be negatively affected by climate 
change. Higher temperatures may lead to greater numbers of heat-related 
deaths and illnesses. Increased respiratory illnesses may result due to 
greater ground-level ozone. Increased use of air conditioning could 
increase power plant emissions and air pollution. Viral and bacterial 
contamination of fish and shellfish habitats could also cause human 
illness. Expansion of the habitat and infectivity of disease-carrying 
insects could increase the potential for diseases such as malaria and 
dengue fever.
  In Honolulu, Nawiliwili, and Hilo, the sea level has increased six to 
fourteen inches in the last century and is likely to rise another 17 to 
25 inches by 2100. The expected rise in the sea level could cause 
flooding of low-lying property, loss of coastal wetlands, beach 
erosion, saltwater contamination of drinking water, and damage to 
coastal roads and bridges. During storms, coastal areas would be 
increasingly vulnerable to flooding.
  Agriculture might be enhanced by climate change, unless droughts 
decrease water supplies. Forests may find adapting to climate change 
more difficult. For example, `ohi'a trees are sensitive to drought and 
heavy rains. Changes could disproportionately stress native tree 
species because nonnative species are more tolerant of temperature and 
rainfall changes. Climatic stress on trees also makes them vulnerable 
to fungal and insect pests.
  Hawaii's diverse environment and geographic isolation have resulted 
in a great variety of native species found only in Hawaii. However, 70 
percent of U.S. extinctions of species have occurred in Hawaii, and 
many species are endangered. Climate change would add another threat. 
Higher temperatures could also cause coral bleaching and the death of 
coral reefs.
  Hawaii's economy could also be hurt if the combination of higher 
temperatures, changes in weather, and the effects of sea level rise on 
beaches make Hawaii less attractive to visitors. Adapting to the sea 
level rise could be very expensive, as it may necessitate the 
protection or relocation of coastal structures to prevent their damage 
or destruction.
  We have to address the problems that may be created by the climate 
change and the sooner we start on this the better off we will be. We 
would have to invest in the development of new technologies that will 
provide new and environmentally friendly sources of energy, newer and 
environmentally friendly technologies that allow use of conventional 
energy sources. We would have to work closely with other nations in a 
cooperative manner. We can help the rest of the world through our well 
known technological prowess.
  Our energy policy for the 21st century requires forward thinking. 
Sustainable economic growth requires a sustainable energy policy. In an 
era with revolutionary changes in communications and information 
technologies, information exchange, interdependent trade, the world 
economies are becoming increasingly globalized. Our challenge will be 
to sustain this global economy while enhancing the global environment. 
Our energy challenge will be to formulate and implement policies that 
provide not only the U.S. but all nations with reasonably priced 
energy.
  We need fundamentally different sources of energy for the 21st 
century. Hydrogen is one such energy source. The long-term vision for 
hydrogen energy is that sometime well into the 21st century, hydrogen 
will join electricity as one of our Nation's primary energy carriers, 
and hydrogen will ultimately be produced from renewable sources. But 
fossil fuels, especially natural gas, will be a significant long-term 
transitional resource. In the next twenty years, increasing concerns 
about global climate changes and energy security concerns will help 
bring about penetration of hydrogen in several niche markets. The 
growth of fuel cell technology will allow the introduction of hydrogen 
in both the transportation and electricity sectors.
  We are a long way from realizing this vision for hydrogen energy. But 
progress is being made and many challenges and barriers remain. 
Sustained effort is the only way to overcome these challenges and 
barriers. We need to support a strategy that focuses on midterm and 
long-term goals.
  While we develop suitable technologies for using this clean source of 
energy, we can rely on other clean sources such as natural gas. Natural 
gas is a good choice for the fuel of the future. It is safe and 
reliable to deliver, more environmentally friendly than oil, and more 
than three times as energy-efficient as electricity from the point of 
origin to point of use. There are other potential sources of clean 
energy such as methane hydrates that need to be explored and developed.
  We need to unleash American ingenuity to find solutions to our energy 
problem. This Senator is convinced that we can do this only when we 
have a national commitment to, and a strategy for technological 
advancement as part of national energy policy. Only a national 
commitment will help us maintain a sustainable economic growth while 
protecting environmental values. We should recognize that there is a 
growing intersection between national economy, environment, and energy. 
If we ignore energy policy, then we only imperil our economy and 
national security.
  I want to compliment my friends, Senators Murkowski and Bingaman, the 
Chairman and Ranking Member of the Senate Energy Committee for the 
great effort that they put into educating us all and trying to build a 
consensus on very difficult issues. Our Senate Energy Committee has 
committed a great deal of time in discussing our energy problems. I 
believe the time has come for us to act. I am committed to help move 
the energy agenda with alacrity in the coming Congress.
  In the coming session, we must try to move legislation that 
encourages, adopts, and strengthens energy conservation. We must 
encourage energy efficiency, and support renewable energy programs. 
Above all, we must formulate and advance policies that encourage the 
development of energy resources that diversify our energy mix and 
strengthen our energy security without sacrificing the environment.
  We have had eight long years of unparalleled economic growth. The

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health of our economy is threatened by the escalating price of energy 
and dire predictions about our energy supply and demand equation. We 
cannot allow our energy problem to derail our economy. We cannot allow 
the greenhouse gases to negatively impact the American people and their 
way of life. We must act at the earliest possible moment in the coming 
session to address energy issues that we were not able to address in a 
bipartisan fashion in the 106th Congress.

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