[Congressional Record Volume 147, Number 167 (Wednesday, December 5, 2001)]
[Senate]
[Pages S12448-S12449]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DASCHLE (for himself and Mr. Bingaman):
  S. 1766. A bill to provide for the energy security of the Nation, and 
for other purposes; read the first time.
  Mr. JOHNSON. Mr. President, I rise in strong support of the 
comprehensive energy bill that is being introduced today.
  As we all know, there has been a great deal of discussion this year 
about the nation's energy situation. The increasing volatility in 
gasoline and diesel prices and the growing tension in the world from 
the terrorist attacks have affected all of us. There is a clear need 
for energy policies that ensure long term planning, homeland security, 
fuel diversity and a focus on new technologies.
  To this end, I am very pleased that a comprehensive energy bill has 
been introduced in the Senate by my South Dakota colleague, Senator Tom 
Daschle. The bill is the result of many months of hard work by the 
Majority Leader and the chairmen of the committees of jurisdiction, 
including Senator Jeff Bingaman, the chairman of the Energy Committee, 
of which I am a member. They have listened to the concerns of both 
those who run our energy systems and our constituents in crafting the 
legislation. The result is a balanced and thorough product that 
addresses most of the major segments of the energy system and looks 
ahead to the needs of future.
  The bill covers a number of important areas, including incentives to 
increase oil and gas production and the nation's supplies of 
traditional fuels, streamlining of electricity systems and regulations, 
important environmental and conservation measures, and provisions to 
increase efficiency of vehicles and appliances.
  One of the key provisions in the bill is the inclusion of a renewable 
fuels standard. Earlier this year, I introduced a bill with Senator 
Chuck Hagel of Nebraska, the Renewable Fuels for Energy Security Act of 
2001 (S. 1006), to ensure future growth for ethanol and biodiesel 
through the creation of a new renewable fuels content standard in all 
motor fuel produced and used in the U.S. I am pleased the framework of 
this bill is included in the comprehensive energy legislation.
  Today, ethanol and biodiesel comprise less than one percent of all 
transportation fuel in the United States. 1.8 billion gallons is 
currently produced in the U.S. The energy bill's language

[[Page S12449]]

would require that five billions gallons of transportation fuel be 
comprised of renewable fuel by 2012--nearly a tripling of the current 
ethanol and renewable fuel production.
  There are great benefits of ethanol and renewable fuels for the 
environment and the economies of rural communities. We have many 
ethanol plants in South Dakota and more are being planned. These 
farmer-owned ethanol plants in South Dakota, and in neighboring states, 
demonstrate the hard work and commitment to serve a growing market for 
clean domestic fuels.
  Based on current projections, construction of new plants will 
generate $900 million in capital investment and tens of thousands of 
construction jobs to rural communities. For corn farmers, the price of 
corn is expected to rise between 20 and 30 cents per bushel. Farmers 
will have the opportunity to invest in these ethanol plants to capture 
a greater piece of the ``value chain.''
  Combine this with the provisions of the energy bill and the potential 
economic impact for South Dakota is tremendous. Today, 3 ethanol plants 
in South Dakota (Broins in Scotland and Heartland Grain Fuels in 
Aberdeen and Huron) produce nearly 30 million gallons per year. With 
the enactment of a renewable fuels standard, the production in South 
Dakota could grow substantially, with at least 2000 farmers owning 
ethanol plants and producing 200 million gallons of ethanol per year or 
more.
  An important but under-emphasized fuel is biodiesel, which is chiefly 
produced from excess soybean oil. We all know that soybean prices are 
hovering near historic lows. Biodiesel production is small but has been 
growing steadily. The renewable fuels standard would greatly increase 
the prospects for biodiesel production and benefit soybean farmers from 
South Dakota and other states.
  Moreover, the enactment of a renewable fuels standards would greatly 
increase the nation's energy security. Greater usage of renewable fuels 
would displace the level of foreign oil that we currently use. During 
these difficult times, it is imperative that we find ways to improve 
the nation's energy security and reduce our dependence on foreign oil. 
A renewable fuels standard would go a long way towards achieving this 
goal.
  The House passed an energy bill without any provisions for a 
renewable fuels standard. Moreover, the House looks backward by 
focusing too heavily on tax breaks for traditional fuel supplies 
without enough encouragement for new technologies and provisions that 
will reduce our dependency on foreign oil. The Senate bill achieves the 
right balance for the nation's future. I commend Senators Daschle and 
Bingaman for their efforts and look forward to enacting the bill.
  Mr. HOLLINGS. Mr. President, I want to thank Senator Bingaman and 
Senator Daschle for their leadership on the introduction of a 
comprehensive energy bill today, the Energy Policy Act of 2001. This 
bill has many components, and it required a great deal of coordination 
and effort to compile pieces that address issues that cut across 
committee lines. I appreciate their efforts in this regard.
  As chairman of the Committee on Commerce, Science, and 
Transportation, I am particularly pleased to see several areas of 
coverage in the bill. This bill incorporates many climate science and 
technology provisions from a bill Senators Kerry, Stevens, Inouye, 
Akaka, and I recently introduced, S. 1716, the Global Climate Change 
Act of 2001. These provisions will improve our climate monitoring, 
measurement, research, and technology so that we are better able to 
discern climate change, understand its patterns, and manage its 
effects. In addition, it contains provisions that would establish a 
service to provide expert, unbiased technology advice to Congress, 
which we have sorely lacked since the Office of Technology Assessment 
was abolished in 1995.
  In addition, there is a placeholder in the bill for a CAFE provision. 
In 1975, I co-sponsored the legislation that became the current CAFE 
law. I was also very involved in efforts during the 101st and 102nd 
Congresses to increase CAFE standards. I am pleased to report that the 
Commerce Committee is again taking up the issue of fuel economy 
standards. In fact, we will be holding a hearing on this topic tomorrow 
morning.
  The Committee is embarking on a process to develop a strong and 
technically feasible CAFE proposal that will strengthen our domestic 
and economic security. Such a provision must achieve oil savings to 
reduce our petroleum consumption and dependence on imported oil. It 
also must ensure that our automotive industry remains technically 
competitive. This is quite a challenge, but it is an issue that must be 
addressed.
  The CAFE measures originally arose out of concern for the nation's 
energy security following the oil crisis of the early 1970s. When the 
U.S. first pursued CAFE, imported oil accounted for 36 percent of the 
nation's oil use; today imported oil accounts for 56 percent of U.S. 
oil use. Twenty-eight percent of our nation's total oil consumption is 
used in the transportation sector.
  Since CAFE was implemented in 1975, we have seen an approximate 
doubling in the fuel economy of the nation's vehicle fleet. In 2000 
alone, we saved over 3 million barrels of oil per day because of the 
fuel economy gains made since the mid-1970s. Clearly, a comprehensive 
energy policy must incorporate provisions to reduce energy use in the 
transportation sector--a goal that I believe can best be achieved by 
using technological advances to boost the fuel economy of passenger 
vehicles.
  I appreciate that Senator Bingaman and Senator Daschle recognized the 
complexity of CAFE issues. I look forward to reporting back in a few 
months with a solid piece of legislation, compiled through the entire 
Commerce Committee, to fill the current placeholder in the energy bill.
                                 ______