[Congressional Record Volume 148, Number 38 (Wednesday, April 10, 2002)]
[Senate]
[Pages S2452-S2465]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
NATIONAL LABORATORIES PARTNERSHIP IMPROVEMENT ACT OF 2001--Continued
The PRESIDING OFFICER. The Senator from Alaska.
Mr. MURKOWSKI. Mr. President, I wonder if I could enter into a
colloquy with Senator Bingaman to try to move the energy bill along. I
have a list of the pending amendments. We have had our staffs working
together to try to clear amendments. I think we have done a pretty good
job, but there are a significant number remaining.
I know some Members have indicated their intent to bring them up, but
we would like to have them come up. We are certainly ready. Perhaps we
can identify some that we anticipate.
Mr. BINGAMAN. Mr. President, let me say in response to my colleague
from Alaska, I agree with him. We are trying very hard to persuade
Senators to come to the floor and offer their amendments. Of all the
potential amendments that might be offered by various Senators, we are
trying to determine which they actually feel obligated to offer.
We have not been able to do that as yet. Maybe at a time when the
Senator was not on the floor earlier today, I propounded a unanimous
consent request that we specify a time or that we limit the amendments
to those that are on our list. There was objection raised to that
unanimous consent request.
I suggest again that perhaps we could work together over the next
hour or so to get that list pared down and then once again propound
that unanimous consent request and see if we couldn't get it agreed to
at that time. That would at least give us a finite list of amendments
so that we could then know what is the potential universe of
amendments. But it is very important that we get some other amendments
up and vote on them this afternoon. I think Senators are on notice that
we are anxious to do that. I look forward to working with my colleague
to get the list pared down so we can complete this bill.
Mr. MURKOWSKI. Mr. President, I certainly agree and am anxious to
work with Senator Bingaman in moving this matter along. My list
currently shows 73 amendments pending on the other side, many of which,
I am sure, can be addressed without a vote and simply dispatched--if
Members would come over and discuss them with the professional staff in
an effort to try to respond to the interests of the individual
Senators. We probably have 18 amendments that I have identified over
here on which Republican Senators have indicated they want to try to
work out something.
The generalization was made last night that we are filibustering the
bill on this side. I want the record to reflect that clearly is not the
case. In response to my friend's proposal that we limit amendments, I
hope we get that agreement and that I can address the concerns of some
of our Members. If there are any Members who want to add amendments to
it, this is the time to do it. Then we can close out the amendment list
and proceed to wind up this bill.
I want to make sure everybody understands that we are not
filibustering this bill or attempting to hold it up. The only way to
move it along is by the amendment process. We want to move it along. It
is my intention to work with our side to get an agreement on amendments
and encourage Members to come over here. I understand we may be setting
this aside again this evening to go on election reform, when we can
clearly continue to be on energy. But if that is the wish of the
leadership, obviously, that is what we will do. I assure my friend from
New
[[Page S2453]]
Mexico of my interest in moving along on the energy bill.
Mr. BINGAMAN. Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER (Mr. Nelson of Nebraska). The clerk will call
the roll.
The bill clerk proceeded to call the roll.
Mr. REID. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. REID. Mr. President, I have been advised that Senator Schumer is
on his way to offer an amendment. This amendment, I assume, should
require a vote. This is an amendment he is offering along with Senator
Clinton, and he should be in the Chamber within the next few minutes.
I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. SCHUMER. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER (Mr. Edwards). Without objection, it is so
ordered.
Amendment No. 3093 To Amendment No. 2917
(Purpose: To prohibit oil and gas drilling activity in Finger Lakes
National Forest, New York)
Mr. SCHUMER. Mr. President, I call up amendment No. 3093 offered by
myself and Senator Clinton, which I believe is at the desk.
The PRESIDING OFFICER. Without objection, the pending amendments are
set aside. The clerk will report.
The legislative clerk read as follows:
The Senator from New York [Mr. Schumer], for himself and
Mrs. Clinton, proposes an amendment numbered 3093:
At the end of title VI, add the following:
SEC. 6. . PROHIBITION OF OIL AND GAS DRILLING IN THE FINGER
LAKES NATIONAL FOREST, NEW YORK.
No Federal permit or lease shall be issued for oil or gas
drilling in the Finger Lakes National Forest, New York.
Mr. SCHUMER. Mr. President, I rise with my colleague, Senator
Clinton, to offer an amendment to permanently ban oil and gas drilling
in the Finger Lakes National Forest in central New York. The Finger
Lakes National Forest is the only national forest in our State. It is
the smallest in the country. It is about 16,000 acres. It is the size
of Manhattan. It is in the middle of one of the few uninhabited areas
in one of most beautiful parts of our State--there are many beautiful
parts of course--the Finger Lakes.
In 1998, two out-of-State firms offered a joint proposal to the U.S.
Forest Service to lease the land for drilling. Subsequently, the Forest
Service conducted an environmental impact study on the proposed
drilling plan and decided to reject the proposal in December of last
year.
Paul Brewster, the Forest Service supervisor, said the following
about the strong public input they received during the EIS process:
Many [citizens] stated that public lands, such as those on
the Finger Lakes National Forest, are scarce in the region.
They point to its uniqueness as New York's only national
forest and its small size. They also feel the need for oil
and gas should not outweigh other resource values such as
recreation, grazing, sustainable timber harvesting, and
wildlife. They believe that this development would disrupt
the balance of uses that had previously been struck on this
national forest.
There are a number of Members from the West, a number of my
colleagues who came over to me and said: We have national forests, and
they are drilling all the time. I point out to them the large
difference between our situation and theirs. We don't have hundreds and
hundreds and hundreds of square miles of national forests. This one is
16,000 acres. I don't know how many square miles that is, but it is
probably less than 100. Am I right on that? I see my colleague from New
Mexico shaking his head ``yes.''
It is the only national forest we have. It is one of the very few
areas in a rather heavily populated part of our State. New York State
has the third largest rural population in the country. To allow
drilling there--and there is only a negligible, if any, amount of gas
and oil there--wouldn't seem to make much sense.
This is not a partisan issue. Both our Governor, George Pataki, and
the area's Congress member, Amo Houghton, both members of the other
party, are in support of our proposal. They know the tremendous
environmental risks posed by allowing 130-foot rigs to drill in the
Finger Lakes National Forest outweigh the limited benefits of doing so.
As I said, this is not Alaska. This is not the Gulf of Mexico. This
is not the great wilderness we have out West, beautiful wilderness that
every summer my family traverses. It is, rather, a postage-stamp size
park. And we have such beauty in our State, but we are so crowded that
preserving this area from drilling makes a great deal of sense. It is
one of central New York's main tourist attractions. It draws tens of
thousands of visitors each year.
There is no question of oil here. It is an almost unnoticeable amount
of gas that could despoil this precious little pocket of wilderness and
drive people away at a time when they are sorely needed to bolster the
area's economy.
The Finger Lakes area is starting to grow. Upstate New York has been
one of the few areas in America that is shrinking in population. But
wineries have developed on the shores of the Finger Lakes. Tourists are
coming to the Finger Lakes. This forest is an attraction. A day of
hiking undisturbed by manmade developments is a wonderful thing. For
the small amount of natural gas that might be there, to allow rigs, to
allow forest land to be despoiled, doesn't make much sense.
I visited this forest and I can tell you, if every one of my
colleagues would want to take a visit there--I know that won't happen;
you have many places to go in your own States. But if you were to visit
the region, you would agree. All you have to do is go there and take
one look and you know it is the wrong place.
With this amendment, we are not trying to comment in any way about
drilling in other places. We don't want to get embroiled in that. Our
only national forest, a tiny little 16,000-acre place, one of the few
not-built-upon parts of our State, please let us keep it for the people
of the Finger Lakes region and the new tourism industry that has
started to grow there. Let them breathe a little easier, which this
amendment would allow.
I ask that this amendment be supported. I had hoped maybe we could
work something out between the majority and minority. I don't think
there are many requests like this, one that we haven't made before. But
with the advent of somebody who is interested in trying to drill for
whatever gas is there, the amendment is called for.
I yield back my time. I believe my colleague from New York is here,
with that bright orange, lovely outfit. I usually see her as she comes.
I missed her today. Let me now yield the floor to my colleague and
partner in this and so many other issues as we work for the Empire
State together, Senator Clinton.
Mrs. CLINTON. Mr. President, I rise to join my colleague in offering
this amendment which is very important to our State and would
permanently protect the only national forest in New York State and the
smallest national forest in our country from drilling. The Finger Lakes
National Forest is a part of New York that I wish everyone could see,
as Senator Schumer so eloquently stated.
We would love to invite everyone in the Senate to come and see these
lakes, which were named from an old Indian legend that says the Great
Spirit had put his hand down on the land and when he lifted it up, he
left behind these Finger Lakes. These lakes are so beautiful and
special that, in and of themselves, they provide not only a tremendous
amount of recreational visitation for the area, but they are beautiful
places to live and to farm and to work.
The U.S. Forest Service sought public comment last year on a draft
environmental impact statement on a proposal to lease 13,000 acres of
the 16,000-acre national forest. Among the consequences of the proposed
drilling action identified in the Forest Service's statement were soil
erosion, contamination at or near well sites due to the construction of
access roads, well paths and pipelines, and the use of trucks and heavy
equipment in drilling activity. The report predicted that such
construction would require several acres for each particular drilling
site of vegetation clearing, including tree cutting.
In addition, the quality of local water rights would be put at risk.
[[Page S2454]]
There is also concern about the loss of habitat for birds and animals
that call the forest home, and it would be a very difficult problem for
us to figure out how to accommodate drilling at such a relatively small
area.
That is why Senator Schumer and I believe, because of the potentially
dire environmental consequences, the relatively small amount of energy
that would be secured, assuming such drilling was successful, it is not
a sufficient reason to take a chance on this very precious resource. We
think it is our responsibility to protect our State's precious natural
resources, and that is why, once again, we offer this amendment to
permanently prohibit such drilling.
We also have on our side the U.S. Department of Agriculture, which,
as both Senator Schumer and I remind colleagues on a regular basis, has
a very prominent place in our State--certainly in the Finger Lakes
region--where not only dairy farms but increasingly wine vineyards and
other products are grown, but in its final environmental impact
statement, the USDA recommended a no-action alternative. In other
words, the USDA does not support drilling in the Finger Lakes National
Forest. So that is why we are offering this amendment. We don't believe
drilling in the national forest, in the Finger Lakes, would be sensible
energy policy. It is certainly not sound environmental policy. It is
not good agricultural policy, and it would undermine a lot of the
progress we have made in bringing people to enjoy this very beautiful
area.
So I am proud to join my colleague in asking for support in
prohibiting drilling in this very small national forest that we are
very proud to have in our State. I yield back the time to Senator
Schumer.
Mr. SCHUMER. I thank my colleague for her fine words in support of
this amendment. I think we have said everything that has to be said. It
is a very small national forest, so it requires only small speeches.
I yield back our time and hope we can move this amendment without any
problems. Maybe we can figure out something. I know there is some
opposition, but I will yield to my colleague, the chairman of the
Energy Committee, the Senator from New Mexico, who is working real hard
on this bill, and we all appreciate that very much.
The PRESIDING OFFICER. The Senator from New Mexico is recognized.
Mr. BINGAMAN. Mr. President, let me make a couple of comments. I know
we would not, of course, try to go to a vote on this matter without
providing opportunity for Senator Murkowski and other Members to come
to the floor and express their views.
This is an issue about which I have spoken to Senator Schumer and
Senator Clinton. I know they feel very strongly about it. It is the
kind of issue that we address, as they are well aware, in the Energy
Committee through specific legislation that is designed to provide a
special level of protection for a particular area, a particular
national park, a particular section of national forest; and I think
that might be another alternative for them.
I am not trying to discourage them from going ahead now if they wish
to do that. Certainly, I don't intend to state a position on the bill
on their amendment. I know some Members have expressed concern that we
would not have the opportunity to consider this as legislation
designating a particular area for special protection. That is another
way to get to the same end result that they have proposed to get to
with this amendment. So I mention that and I know that is something
they might consider as an alternative to their amendment.
The amendment is pending, and I understand other Members will come to
the Chamber if the amendment remains pending and speak to it. With
that, I yield the floor.
The PRESIDING OFFICER. The Senator from Nevada is recognized.
Mr. REID. Mr. President, I have spoken to Senator Bingaman. It is my
understanding from the Senator from New Mexico--and I haven't spoken to
the Senator from Illinois--when this matter is resolved, Senator Durbin
is going to offer an amendment relating to the Consumer Energy
Commission; is that the Senator's understanding?
Mr. BINGAMAN. That is correct.
Mr. REID. It is my further understanding that the Senators from New
York, at a subsequent time, will offer an amendment--maybe this
evening--dealing with air-conditioners. I say to my friend from New
York, is there sometime this evening the Senator might be in a position
to offer his amendment on air-conditioners?
Mr. SCHUMER. Yes. This is the amendment that would have the Federal
Government augment a State program for people who would turn in their
old air-conditioners and get some new ones. I think we would be willing
to offer that sometime in the early evening, maybe at 5 o'clock or
5:15.
Mr. REID. That would be very good. We don't know how long the
amendment of the Senator from Illinois will take. The minority will
make that determination. The Senator from Illinois will not speak too
long. He will offer his amendment very shortly.
For the information of Members, possibly there could be two votes
within the near future on two amendments. The leader has indicated that
sometime tonight he will move to a different piece of legislation. So
we are going to be working somewhat late tonight.
The PRESIDING OFFICER. The Senator from Illinois is recognized.
Mr. DURBIN. Mr. President, is it appropriate for me to send an
amendment to the desk?
The PRESIDING OFFICER. It requires unanimous consent.
Mr. DURBIN. I ask unanimous consent that the pending amendments be
temporarily laid aside.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendment No. 3094 to Amendment No. 2917
Mr. DURBIN. Mr. President, I send an amendment to the desk.
The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:
The Senator from Illinois [Mr. Durbin] proposes an
amendment numbered 3094 to amendment No. 2917.
Mr. DURBIN. Mr. President, I ask unanimous consent that further
reading of the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
(Purpose: To establish a Consumer Energy Commission to assess and
provide recommendations regarding energy price spikes from the
perspective of consumers)
On page 523, between lines 16 and 17, insert the following:
SEC. 1704. CONSUMER ENERGY COMMISSION.
(a) Establishment of Commission.--There is established a
commission to be known as the ``Consumer Energy Commission''.
(b) Membership.--
(1) In General.-- The Commission shall be comprised of 11
members.
(2) Appointments in the senate and the house.--The majority
leader and the minority leader of the Senate and the Speaker
and minority leader of the House of Representatives shall
each appoint 2 members--
(A) 1 of whom shall represent consumer groups focusing on
energy issues; and
(B) 1 of whom shall represent the energy industry.
(3) Appointments by the president.--The President shall
appoint 3 members
(A) 1 of whom shall represent consumer groups focusing on
energy issues;
(B) 1 of whom shall represent the energy industry; and
(C) 1 of whom shall represent the Department of Energy.
(4) Date of appointments.--The appointment of a member of
the Commission shall be made not later than 30 days after the
date of enactment of this Act.
(c) Term.--A member shall be appointed for the life of the
Commission.
(d) Initial Meeting.--Not later than 20 days after the date
on which all members of the Commission have been appointed,
the Commission shall hold the initial meeting of the
Commission.
(e) Chairperson and Vice Chairperson.--The Commission shall
select a Chairperson and Vice Chairperson from among the
members of the Commission.
(f) Administrative Expenses.--The Department of Energy will
pay expenses as necessary to carry out this section, with the
expenses not to exceed $400,000.
(g) Duties.--
(1) Study.--
(A) In general.--The Commission shall conduct a nationwide
study of significant price spikes since 1990 in major United
States consumer energy products, including electricity,
gasoline, home heating oil natural gas and propane.
(B) Matters to be studied.--The study shall focus on the
causes of large fluctuations and sharp spikes in prices,
including insufficient inventories, supply disruptions,
refinery capacity limits, insufficient infrastructure,
regulatory failures, demand growth, reliance on imported
supplies, insufficient availability of alternative energy
[[Page S2455]]
sources, abuse of market power, market concentration and any
other relevant market failures.
(2) Report.--Not later than 180 days after the date of the
first meeting of the Commission, the Commission shall submit
to Congress a report that contains--
(A) a detailed statement of the findings and conclusions of
the Commission; and
(B) recommendations for legislation, administrative
actions, and voluntary actions by industry and consumers to
protect consumers (including individuals, families, and
businesses) from future price spikes in consumer energy
products.
(3) Consultation.--In conducting the study and preparing
the report under this section, the Commission shall consult
with the Federal Trade Commission, the Federal Energy
Regulatory Commission, the Department of Energy and other
Federal agencies as appropriate.
(h) Sunset.--The Commission shall terminate within 30 days
after the submission of the report to Congress.
Mr. DURBIN. Mr. President, I rise to offer this amendment that will
establish a Consumer Energy Commission. It is a pretty simple
amendment; yet I think it has the potential to be of great benefit to
families and businesses across America.
I am pleased that the Senate is turning to this debate on the energy
bill to address our Nation's energy challenges. This debate really
marks the first time that Congress has taken up the whole question of
energy since 1992. As we consider the elements of this important topic,
let us not forget what has happened to energy in our country during the
last decade. One word you will often hear to describe energy during the
past decade--especially in the last few years--is the word ``crisis.''
The California electricity experience has been cast in the terms of a
crisis. Many point to Enron as an indication of problems in our energy
policy.
While we may disagree with the extent of the energy crisis, as well
as ways to address it, I think we can all appreciate the fact that one
energy challenge our Nation faces is the price spike that consumers
face in so many of our energy sources.
Let's take an example of gasoline. We all know when you buy gasoline
in America, prices fluctuate widely at the pump. We are seeing some of
the highest prices now in the Midwest that we have seen in a year.
Gasoline is reported at $1.60 a gallon in some areas, and it is even
higher in others. This has become what I characterize in my part of the
world as the ``Easter phenomenon.'' This is the third straight year
when we have seen, at about Easter time, the price of gasoline spiking
across the Midwest, sometimes over $2 a gallon, and even higher from
those who are exploiting and ripping off consumers and businesses.
The administration's energy policy indeed cites the dramatic
increases in gasoline prices as one of the challenges we face. The
Consumer Federation of America and Public Citizen have also called
attention to energy price spikes, explaining American consumers spent
roughly $40 billion more on gasoline in the year 2000 than the year
1999. In the spring of 2000, the cost of gasoline in Chicago shot up to
$2.13 a gallon, well above the unusually high national average of $1.67
per gallon at that time.
Gasoline is not the only energy product for which consumers have had
to pay dramatically fluctuating costs in recent years. Residential
heating oil, residential natural gas, commercial natural gas,
industrial natural gas, and motor gasoline have all had fluctuating
prices, dramatically fluctuating over the last 15 years.
I can recall a year or so ago my wife called me at my apartment in
Washington on Capitol Hill. She lives back in Springfield, IL. She
called me and said: Senator? And I knew I was in trouble when she said
that.
I said: What is it?
She said: I just got the heating bill on our house. What is going on
here?
The natural gas prices had gone through the roof. Every home across
the Midwest saw it. Some people could afford to pay it--we could--and
others could not. We are seeing that more and more. Consumers are
saying: I can understand prices going up here and down there, but why
these wild price fluctuations?
If we break down the numbers on a month-to-month basis, we can see
incredible price spikes. In the matter of 1 month, the national average
price of gasoline jumped by 20 cents a gallon, residential heating oil
rose by 10 cents a gallon, and residential natural gas led with 50
cents per 1,000 cubic feet.
In some sectors of the economy, price spikes were greater and had a
more drastic impact. Home heating and cooling bills crippled family
budgets in the Midwest and Northeast.
It is not just a matter of residences, homes, and families. Farmers,
small businesses, and industries dependent on natural gas for the
production of fertilizer, chemical products, and other services and
products suffered economically.
I can recall trucking businesses coming to me when the price of
gasoline was fluctuating out of control in the Midwest and saying: We
have to lay off people; there is no way we can keep this business
going.
For a month or two at a time while this was happening, people were on
the unemployment rolls, if they were lucky. Some of them were just out
of work, trying to keep their families together, not because they were
not willing to work hard or have a business but because one of the
commodities of that business was fluctuating out of control.
There is a way to demonstrate these problems. Let me demonstrate on
this chart some of the fluctuation of prices. This chart shows motor
gasoline retail prices from 1999 to the end of 2001. You will see the
cost per gallon across America, U.S. city averages. Imagine starting
back in January 1999, the cost per gallon was around 95 cents a gallon.
Look at the spring of the year 2001. The price is up to $1.60. There is
a fluctuation in price from 95 cents a gallon to $1.60 per gallon.
To some it is a pinch on their pocketbook. To a business that has to
meet a bottom line, that kind of fluctuation means: I can't put as many
trucks on the road or hire as many people for our messenger service. We
have to cut back on employment. This shows the price spikes that
consumers have been faced with over that 2-year period.
Let me show another chart: heating oil prices by region, and we can
see the wild spikes. The cost per gallon in January 1996 was about $1 a
gallon. Then we saw this price spike to about $1.50 a gallon in January
of the year 2000, and then it dips and spikes again.
Is this the natural operation of a market economy or is it something
else? That is the question I have asked time and again. I understand
supply and demand. I passed that course in my sophomore year in
college, not with a great grade but a good one. I understand what the
market economy is all about, supply and demand, but it struck me as odd
that year after year with great repetition we would see gasoline prices
go skyrocketing for a matter of weeks and months during certain periods
of the year.
That is why I brought this amendment to the floor. I think we can
address the chronic national problem of significant energy price
fluctuations, and we ought to do it by putting together a commission
that is balanced.
Whenever we get into debates about these price fluctuations, people
say: We are going to get the captains of industry and Government heads
of agencies and they are going to come together and talk this through.
I thought to myself: Isn't it interesting these people talk about a
problem that does not touch them personally as families, individuals,
small businesses, and farmers. Why are we not bringing consumers into
this discussion? Why shouldn't they be part of this analysis to make
sure the market truly is working and nothing else is involved?
That is why I am offering an amendment to establish the Consumer
Energy Commission. This would be an 11-member Commission which would
bring together bipartisan appointees and representatives from consumer
groups, energy industries, and the Department of Energy to study the
causes of energy price spikes and make recommendations on how to avert
them.
It is true the Federal Trade Commission took a look at the gasoline
price spikes in the Midwest recently. Indeed, a lot of studies have
investigated potential abuses of market power in the energy industry. I
salute Carl Levin of Michigan who serves with me on the Governmental
Affairs Committee. He is having a hearing very soon looking into the
specific problems that have hit the Midwest.
Other studies have looked at long-range supply and demand projections
for energy products, but previous studies have tended to focus on a
small set
[[Page S2456]]
of issues and on the perspective of big industry or big Government. I
think the best approach is not to look at these issues narrowly but
consider the big picture and, in particular, from the consumer's point
of view.
We need to give consumers a voice and opportunity to participate in
this process. When consumers pay their grocery bills or tuition bills
for their kids or even their residential utility bills in most States,
and when businesses pay for raw materials and supplies, prices are
usually rather predictable. But when they pay for heating and cooling,
natural gas, gasoline for trucks and autos, families and businesses
face the frustrating reality of wild price swings.
We need to bring consumers to the table with representatives of the
energy industry and Government to study these price spikes. We need
these groups to work collectively to consider a range of possible
causes of energy price spikes. We need them to look at both the supply
and the demand side, including such potential causes as maintenance of
inventory, delivery of supply, consumption behavior, implementation of
efficiency technologies, and export-import patterns.
After the Consumer Energy Commission studies energy price spikes
comprehensively, its charge will be to develop options for ways we can
avert and mitigate these terrible price spikes.
These recommendations can range from legislative and administrative
actions to voluntary industry and consumer actions that can help
protect consumers from the fluctuating cost of energy products.
This Commission will be well balanced, not only to reflect all groups
with a stake in energy price spikes but also to reflect both political
parties. No commission has ever before brought together such a diverse
group to study such a complex problem in a comprehensive way. No
commission has ever promised to see things from the perspective of
consumers, families, and businesses that routinely face energy price
spikes.
The Consumer Energy Commission is long overdue, and I urge my
colleagues to support it.
Mr. President, I yield the floor.
The PRESIDING OFFICER. The Senator from New Mexico.
Mr. BINGAMAN. Mr. President, I compliment the Senator from Illinois
on his amendment. I reviewed it. It deals with a very important set of
issues about which we have all been concerned. His description of what
this Commission would look at as the causes of large fluctuations and
sharp spikes in prices, including insufficient inventories, supply
disruptions, refinery capacity limits, insufficient infrastructure,
regulatory failures, demand growth, reliance on imported supplies,
insufficient availability of alternative energy sources, abuse of
market power, market concentration, and other relevant market failures,
are the exact kinds of issues we are trying to deal with in this
comprehensive energy bill.
Obviously, we need as much wisdom as we can find on these issues and
how to address them. I believe this amendment would be a source of good
advice to us, and I support the amendment.
I yield the floor.
The PRESIDING OFFICER. The Senator from Alaska.
Mr. MURKOWSKI. Mr. President, I want to enter into a general
discussion with my friend from Illinois relative to the substantive
effect of his proposed Commission because while I certainly concur we
are entitled to have this information, I am wondering why an inquiry by
letter to the Department of Energy, the Federal Trade Commission, the
GAO, or the Energy Information Agency would not suffice for the same
purpose.
The Senator from Illinois indicates the Commission shall conduct a
nationwide study of significant price spikes since 1990 in major
consumer energy products. I think we are all familiar with the
situation in California relative to what happened when California chose
not to pass on the full cost of energy to the retail customer. As a
consequence, the price hikes associated with that activity were
certainly evident when the wholesalers went out of business.
I wonder if my friend could indicate if indeed there is not a little
duplicity in the availability of this information. I do not have a
problem with the amendment, but I do not want to build up a
bureaucracy.
Mr. DURBIN. If I might respond, I thank the Senator from Alaska
because I think it is a good faith question and I think it is one that
deserves an answer. I say to my friend from Alaska, what we are trying
to do in this effort is to perhaps bring new perspective to this issue.
The Senator's State of Alaska really prides itself on its individualism
and its own special character. What we are trying to do is say we think
it is not unreasonable, in fact it is valuable, to have consumers
represented in this discussion. I know what I am going to get if I
write a letter to the major Federal agencies in town. I know what I
will get if I write to most of the investigative branches of the
Government. Would it not be refreshing to have a new perspective with a
Commission that really at least includes some honest-to-goodness
consumers who take a look at this from the small business perspective,
from the farmers' perspective, from the family's perspective? I do not
think we have anything to lose. We may have a lot to gain, and I hope
in doing that maybe we will convince some of the larger industries and
utilities and even Government agencies that they ought to every once in
awhile take a fresh look at things.
I do not think this piles on to bureaucracy. It might open up a
window and bring in some fresh air.
Mr. MURKOWSKI. My concern is whether or not the proposal would really
create another study panel to study what has already been studied many
times. Quite frankly, we already knew with what price hikes were
associated; namely, a shortage. I often find it makes us feel good to
bring in consumers and participate in a townhall meeting, but we have
to educate the consumers on the factual information because they are
the ones who are affected by the results oftentimes. A price hike
obviously hits the consumers, and sometimes they are not knowledgeable.
I refer back to the first page of the amendment of the Senator from
Illinois; (A)1, and I quote: Of whom shall represent consumer groups
focusing on energy issues.
I gather that would be four members from the congressional
appointees. Is that correct?
Mr. DURBIN. The suggestion in this amendment is the majority leader
and the minority leader of the Senate will each appoint two members,
one from the consumer side, one from the energy industry side. So there
would be two who would come from the Senate and the House, the majority
and minority leaders. So there would be four altogether, and then a
fifth would be appointed by the President. So 5 of the 11--not even a
majority--would be consumer voices.
Mr. MURKOWSKI. The consumer voices come out of that appointment?
Mr. DURBIN. Yes. Five of the eleven appointees to this Commission
would be from consumer groups focusing on energy issues.
Mr. MURKOWSKI. Ordinarily, the problems we have relative to energy
are not enough electricity, not enough electric transmission in some
areas, not enough oil and gas production in other areas, not enough
refining capacity in other areas. Consumer protection obviously is
involved in virtually every facet of our lifestyle. I do not have a
particular objection to the information the Senator from Illinois is
trying to generate. I am concerned we not duplicate this.
Would the Senator allow us to put this aside and get back to it
perhaps tomorrow after we have had a chance to look at it? We had not
seen the amendment previously to have a chance to make a determination
whether or not indeed there is another agency that has a responsibility
that can provide the information the Senator believes is in the
national interest.
Mr. DURBIN. I am happy to accommodate my colleague from Alaska. I
hope when he takes a look at it, he will support it. I certainly want
to give him a chance to review it.
Mr. MURKOWSKI. If we expand this to consumer groups, would we not
want to have some consideration or environmental input, too? Oftentimes
if you have one and do not have the other, then the other wants to be
heard. And if we are talking about more electricity or more
transmission, this also
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could have some environmental concerns.
Mr. DURBIN. It is hard for me to quarrel with the Senator's
suggestion, but I think the focus of this Commission is to really talk
about the pocketbook impact of these energy price spikes. There are
critical and important environmental issues, the Senator knows well
because he studied it as much if not more than any other Senator. But
really what I am trying to focus on is what the Senator has heard at
home and what I have heard at home, that when the price of one of these
energy suppliers goes out of control, we get calls from consumers and
their families, as well as small businesses, who say: Senator, what is
going on? Why does this happen every spring in the Midwest?
So I ask the Senator from Alaska to take a look at it and join me in
focusing on these price spikes and the consumer side of it, and I will
gladly join him on any environmental aspect of another amendment. In
this amendment, if we could try to confine ourselves to the economics
of this issue, I think that was the reason I offered the amendment, and
I hope the Senator will support it.
Mr. MURKOWSKI. What I would encourage is that the professional staff
take a good look at this and see if indeed there is not some other
agency that would have this information. I think it is important for
the Senator from Illinois to recognize on renewability, which we
passed, the 10 percent, that is going to cost roughly $100 billion to
the consumers of this country by the year 2020. That is pretty much the
agreed-upon, recognized cost of achieving a 10 percent reliability.
I am sure the Senator from Illinois is also aware that within the
last couple of days this Nation has lost about 25 percent, almost 30
percent, of the capacity to import oil with the determination by Iraq
to initiate a moratorium for 30 days, coupled with the strike in
Venezuela. Clearly, that shortage has resulted in at least a $3-per-
barrel increase in the price of oil.
These things seem to have a world application. If we look at Saudi
Arabia and the OPEC nations which operate their cartel, by reducing the
supply of oil they can clearly motivate and initiate the price. I think
they advised us perhaps a year ago they were going to, as an objective,
hold the cartel within a $22 to $28 framework, and they have done a
pretty good job of it.
Mr. DURBIN. May I respond to the Senator?
Mr. MURKOWSKI. Surely.
Mr. DURBIN. I say to the Senator, he has made the point because he
understands, as I do, how beholden we are to foreign interest sources.
If there is a problem in Venezuela or a decision by gulf state oil
producers that they are going to withhold supply from the United
States, it has a direct impact on the price and certainly on consumers.
That is one of the elements we raised and studied, the reliance on
imported supplies. As we become less dependent and more energy secure,
we are less susceptible to price fluctuations, which I would like to
have studied as part of this Consumer Energy Commission.
The Senator has made the point, and made it well, as to why we should
look at this more closely. There are a dozen ways to go after this, as
Senator Murkowski and Senator Bingaman know so well, having spent so
much time on this bill. I hope we never lose sight of the ultimate
consumer who ends up paying the bill. It is the mom and pop back home
who end up with the natural gas bill to heat their home--or gasoline or
heating oil. They are the ones who ought to be in on this discussion.
That is what we tried to do with this Commission.
Mr. MURKOWSKI. Mr. President, in responding, the examples I cited are
beyond the control of the Senate, beyond the control of the consumer
groups. It is just a world market that dictates, when somebody chooses
to reduce the supply. As we increase our dependence on the Middle East,
on OPEC, we increase our vulnerability. The other example I cited, our
interest in stimulating renewables, does not come without a cost.
I suggest to the majority as we look at the creation of this
Commission--which as I understand would have an authorization of about
$400,000, with no staff and no specific definition of powers--see if we
can jointly work together and perhaps with the Comptroller General or
others undertake this study. If it is not feasible, I will not reject
the amendment necessarily. I am just a little sensitive to expanding
bureaucracies.
If the Senator allows us to work together, maybe we can work out
something.
Mr. DURBIN. I am happy to share this with the Senator's staff. I want
to give them ample time to look at it. I thank Senator Murkowski and
Senator Bingaman. I don't know if I need to withdraw the amendment.
Mr. BINGAMAN. Mr. President, I suggest we set the amendment aside to
consider other amendments as Senators offer amendments.
Before yielding the floor, the study called for in this amendment by
the Senator from Illinois is very time limited. It is 180 days. The
report has to be concluded within 180 days after the Commission is
appointed. Then the Commission goes out of existence. As my colleague
from Alaska pointed out, the maximum amount this could cost is $400,000
in expense funds that the Department of Energy would cover. There may
be some way to improve the language, but I think it is a meritorious
amendment and I hope we can adopt it. I thank the Senator from Illinois
for offering it.
Mr. DURBIN. I yield the floor.
Amendment No. 3093
Mr. MURKOWSKI. Mr. President, unfortunately, I was absent when the
two Senators from New York proposed an amendment authorizing funding
for prohibition on oil and gas drilling in the Finger Lakes National
Forest in New York.
My first reaction was that it was precisely in the wrong direction.
At a time when we are increasing our dependence on imported sources of
energy, oil and gas, this amendment prohibits oil and gas drilling in
the Finger Lakes National Forest of New York.
I am not knowledgeable as to the extent of interest to drill in this
area. However, I am sensitive to Senator Schumer and Senator Clinton
with regard to what they believe is best for their State. We have an
amendment to put additional Federal lands off limits to oil and gas
development. That is clearly what we are doing.
The irony in this as far as my State is concerned is we happen to
support opening ANWR, opening the area for oil and gas exploration, and
we find a reluctance of some Senators to recognize that while I am
certainly not going to take issue with the attitude prevailing of the
two New York Senators who want this area put off limits, I find it a
bit inconsistent that other Senators will not respect our views in
Alaska relative to our support, which is nearly 70 percent of the
population. Clearly, virtually the entire population of the North
Slope, with the exception of the Gwich' in people, support opening
ANWR.
I take the opportunity to point out we have an amendment to put
additional Federal lands off limits to oil and gas development at a
time when we are increasing our dependence on imported oil, at a time
when we have an opportunity to open domestic sources, specifically ANWR
and Alaska.
I respect the views of the Senators from New York. They have
introduced this legislation. The legislation itself should be
considered in the committee of jurisdiction. I am speaking for myself
now, but I believe it should be brought to the committee before it
comes directly to the floor for action. Otherwise, obviously, we bypass
the committee process and the rules--which is the rule rather than the
exception.
I tell the Senators from New York I may very well support their
legislation. I voted with and supported other colleagues on wilderness
designation, from time to time, that put oil and gas development off
limits. So this is not the first for me, in spite of the fact some may
question that. But it is fact. I have supported and voted for wild and
scenic rivers designations that foreclosed future FERC licensing.
That is why we have a committee process, to understand the
significance of the legislation's applicability. I do not think we
should come to the floor on a bill that ostensibly is designed to
increase our energy security and put more Federal lands off limits
without the benefit of the committee review.
I certainly have great respect for the views of the State delegation,
and I
[[Page S2458]]
have regularly deferred to their views through the committee process.
This is not a large area. It is a very small area of Federal land, with
no existing leases, as far as I know. I am not aware of any pending
proposal to create an emergency. I encourage the Senators from New York
to allow us to let this go through the committee process and not send
the legislation further down the road with increased Federal
dependence. I encourage that consideration. Again, I have indicated I
very likely would accept it in the traditional process.
I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. GRAMM. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. GRAMM. Mr. President, it is my understanding that the Democrat
floor leader will be coming to the floor in a moment to ask unanimous
consent that we bar further first-degree amendments; that is, further
as compared to a list already assembled.
I see he has arrived, and so I will be brief, but I believe we have
put together a bill that is an energy bill largely in name only. It
will have a series of tax incentives, many of which are expensive and
targeted to things which can never be reliable, significant energy
sources for America. We will impose additional regulation and
inefficiency in the market.
As you have in any bill, you end up with a balance between good and
bad from each individual point of view. But the key ingredient that is
missing in this so-called energy bill is a commitment to open the one
resource that can be developed on an environmentally sound basis and
that can give us energy to turn the wheels of industry and agriculture
here at home: the Arctic National Wildlife Refuge.
I have been frustrated throughout this debate in that we haven't had
an opportunity to vote on ANWR. It is my understanding that there is a
movement afoot in the body to deny us an up-or-down vote on ANWR.
I hope it doesn't inconvenience my colleagues, but I wish to reserve
my right to offer additional amendments until we have had an
opportunity to vote on ANWR. When we have had an opportunity to vote on
ANWR, I think at that point I would be prepared to lock in a list of
amendments.
It is my understanding that we could reach that point maybe by next
Wednesday, but I would have to object now to limiting my ability or
anybody else's ability to offer additional amendments until we know
what is going to happen in the part of the bill that will most directly
impact on energy production here in the United States--and that is the
opening of ANWR.
I also believe it is important that we preserve our ability to offer
additional amendments in case there is an effort to deny us at least a
chance to vote yes or no on ANWR. I think I will be unhappy if we can't
get 51 Members to vote for ANWR, but at least if we have an up-or-down
vote, the Senate has basically had its say on the issue. I have been on
the losing side on many issues in my career in the Senate, and I have
learned to live with each one of them, but I would like to have an
opportunity to have that vote.
I was going to say this before the distinguished Democrat leader came
to the floor. But until we have this chance to deal with ANWR, I wish
to preserve my right and every other Member's right to offer
amendments.
The PRESIDING OFFICER. The Senator from Nevada.
Mr. REID. Mr. President, this unanimous consent agreement would not
prevent my friend from Texas from offering amendments. But we have been
on this bill now for 16 days. My friend from Texas says that he wants
to vote on ANWR. We have been waiting for 16 days to have them offer
the ANWR amendment. For my friend and others to say they want an up-or-
down vote on this issue is somewhat interesting because, for example,
on the Feinstein amendment, which was under consideration for about 2
weeks, we couldn't get an up-or-down vote as a result of a number of
people, not the least of whom was the very astute Senator from Texas,
Mr. Gramm.
We are proceeding through this bill by the rules of the Senate.
Sometimes the rules of the Senate are not convenient for some. But they
are very consistent. That is why the Senate works so well for the
American people.
We have done everything but beg the proponents of drilling in ANWR to
offer that amendment. We are coming to a point--and the majority leader
will have to make that decision--where if they do not offer the
amendment we are going to take the ANWR provision out of the House bill
and offer it. Then that will be before us.
We believe that energy legislation is important, and at this stage,
of course, it is imperfect. But there are things in the bill which I
personally like. I like renewables. It is not as much as I wanted.
There are things in this bill that are good. The Senator from New
Mexico has worked very hard on this bill as has the Senator from
Alaska.
I understand but disagree very much with my friend from Texas.
Therefore, I ask unanimous consent that the list that I will send to
the desk be the only first-degree amendments remaining in order to S.
517, except for any first-degree amendments which have been offered and
laid aside; that these first-degree amendments be subject to relevant
second-degree amendments; that upon the disposition of all amendments
the bill be read the third time and the Senate then proceed to Calendar
No. 145, H.R. 4, which is the House-passed energy bill; that all after
the enacting clause be stricken and the text of S. 517, as amended, be
inserted in lieu thereof; that the bill be advanced to third reading,
and the Senate proceed to vote on passage of the bill; that upon
passage the Senate insist on its amendments and request a conference
with the House on the disagreeing votes of the two Houses, and the
Presiding Officer be authorized to appoint conferees on the part of the
Senate; provided further that S. 517 be returned to the calendar, with
this action occurring with no further intervening action or debate.
The PRESIDING OFFICER. Is there objection?
Mr. REID. Mr. President, I ask that the unanimous consent request
that I have propound stand on the Record. Before my friend reserves his
right to object--and he probably will object--I also say to my friend
that one of the things I have trouble understanding is if this bill
goes out of here to the House--the Republicans control the House and we
have a Republican President--I can't understand why people are afraid
to go to conference on this bill. Senator Bingaman, of course, would be
the person we would look to for leadership in that conference. We have
great confidence in him. But he is up against the President and the
Republican majority of the House.
I don't understand why people are afraid to let us vote up or down on
ANWR. It is not in the bill. There is certainly a procedure in
conference for it to be in the final bill coming before the Senate.
I think this is fair. We need to move this along. It is not as if
there are no amendments. There are lots of amendments that people could
offer.
I hope my friend from Texas will reconsider his objection because I
think from all I have been able to determine the Senator from Texas is
the only individual Senator stopping us from going forward with having
a finite list of amendments.
The PRESIDING OFFICER (Mr. Johnson). Is there objection?
Mr. GRAMM. Mr. President, reserving the right to object, first of
all, I thank our colleague for his kindness to me. I think the
criticism about the delay in offering an ANWR amendment is valid. I
wanted to offer ANWR as the first amendment on the bill. That was not
the collective decision on our side of the aisle. I respect that.
The rules of the Senate are very clear. One of the things that makes
this the most important deliberative body in the world is the ability
of Members at any point to offer an amendment. I wish to preserve that
right.
I believe once we have had an up-or-down vote on ANWR I can take the
position at that point that I am willing to join others who are willing
to lock in a list of amendments and no others as first-degree
amendments. But until we have had a chance to vote on ANWR, I feel
constrained to object.
I was a little bit confused as to whether the Senator was saying
there
[[Page S2459]]
was a willingness on his side of the aisle to give us an up-or-down
vote on ANWR. I think perhaps if we could have a commitment for that
up-or-down vote perhaps we could work out an agreement on amendments
before that vote occurs. But I would want to know that we have that
commitment.
In terms of the Feinstein amendment, 50 people voted against it
today, and 48 voted for it. Senator Feinstein withdrew the amendment. I
had hoped that we could work out a compromise. I intend to approach her
to try to work out a compromise. But given the absence of an agreement
to an up-or-down vote on ANWR in this unanimous consent request, I
would feel constrained to object. And I do object.
The PRESIDING OFFICER. Objection is heard.
The Senator from Nevada.
Mr. REID. Mr. President, I understand the objection has been made,
and I appreciate the Senator from Texas having the right to do that.
I would say, I hope--well, I don't hope, because if the amendment is
not offered pretty soon, we are going to offer it--somebody over here.
I will offer it. But I hope when that matter is resolved--and it may
have to be resolved the same way the Feinstein amendment was resolved,
by filing cloture on that amendment--I say to my friend, if that in
fact is the case, I hope the Senator then will allow us to have a
finite list of amendments after that matter is voted on through cloture
or otherwise.
Mr. GRAMM. If the Senator will yield, I think once we have had a vote
on ANWR, then my reservations about limits on the ability to offer
other amendments will largely be eliminated. I might want to file some
amendments, but I simply go back to the earlier vote on the Feinstein
amendment. No one required that Senator Feinstein pull her amendment
down. It was still the pending business of the Senate. I did not
encourage her to do it. I had hoped we could work out a compromise. I
still hope we can.
I think there is a very big difference in voting on cloture on ANWR,
where we are simply trying to bring debate to an end and having an
opportunity to vote yes or no on ANWR. I think that is going to be a
very critical factor with me, perhaps with others.
But if next week we can move the process forward--and we can't offer
the amendment soon enough to suit me--if we can have a debate on it,
however long that takes, I am for it. But once we have had an up-or-
down vote on ANWR, then I will be ready to lock down the amendments and
move toward passage and toward this conference. But I do believe it is
important, on an issue that has profound national security
implications, for the Senate to take a position yes or no on ANWR. I
think that is very important.
I am just one Member. Other people can disagree. But that is what I
think. And I think the people of my State believe the same. So that is
what I am trying to promote. I thank the Senator for his kindness.
The PRESIDING OFFICER. The Senator from Nevada.
Mr. REID. Mr. President, Senator Feinstein withdrew her amendment
because she had taken up enough of the Senate's time. We discussed
this, and she believed, in that she did not have enough votes to invoke
cloture, it would be in the best interest of the Senate to move this
legislation down the road. That is the case.
I say, as I said to the senior Senator from Alaska this morning, I am
concerned about national security. We are all concerned about national
security. But if we start talking about energy, I think one of the ways
we can sustain national security very quickly is to increase the fuel
efficiency of cars. That isn't something we have to drill under the
ground for to find out how much is there. You don't have to build
pipelines to move that oil around the country.
What we simply have to do is make our cars more efficient. We have
not done that in some 20 years. It would save millions of barrels of
fuel a day. I think that is what we should do. So if we are talking
about national security, let's look at fuel-efficient vehicles.
Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. STEVENS. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. STEVENS. Mr. President, I have been involved in other matters,
obviously, as all other Senators are. I understand that, once again, my
friend, the minority whip, has mentioned the problem of CAFE and the
CAFE standards. We had a discussion on that this morning in
relationship to the ANWR problem that we seek to pursue.
The Senate has voted twice on the CAFE standards. The first vote was
on amendment 2997, and the vote was 62 to 38 to give the National
Highway Traffic Safety Administration 2 years to establish standards.
That vote was not filibustered. It did not need 60 votes. It was an up-
or-down vote. There was not a motion to table. Neither Senator
Murkowski nor I filibustered or threatened to filibuster that issue.
The second vote on CAFE was on prohibiting an increase in the average
fuel standard for pickup trucks. Amendment No. 2998 passed on a vote of
56 to 44. Again, there was no filibuster on CAFE. It was an up-or-down
vote requiring only 51 votes on what my friend, the majority whip, said
should be an issue of national security and is an issue of national
security.
During the debate on the Alaska pipeline, the then-leader, as I
pointed out this morning, Senator Mansfield, and Chairman Jackson did
not vote for the amendment that authorized the right of way but they
did realize it was an issue of national security and it should receive
an up-or-down vote. They allowed an up-or-down vote on the Alaska
pipeline without filibuster. As a matter of fact, it became a part of
the right-of-way bill at that time only by the vote of the then-Vice
President breaking a tie in the Senate.
In fact, Senator Jackson was so incensed at the thought of a
filibuster on an issue he opposed that concerned national security that
he threatened to have the Federal Government build the Alaska pipeline
itself. At that time he said:
Mr. President, I have come to the regretful conclusion that
if we are stalled here, early next year I give my pledge that
I am going to push legislation for the Federal Government to
build this line. It does involve a national crisis. It is
urgent, and I shall do everything in my power to move that
oil.
We did not filibuster the CAFE votes, which the majority says are
national security issues. But the majority says the ANWR issue is not a
national security issue.
I hope the Senate will come to the position that my great, late
friend, Senator Mansfield, came to as leader--that there should be no
filibuster on an issue involving a matter of national security,
something that is seriously involved in the national defense,
particularly at this time when the gas price in this city alone has
gone up from $1.15 to $1.51 in 3 days.
We face a national crisis. It is not dissimilar from the one we faced
in the 1970s. And I believe those who oppose getting us to the point
where we can determine whether or not we can produce substantial
quantities of oil and gas from that million and a half acres, set aside
by Congress in 1980 for that exploration and development--we are not
drilling in the wildlife refuge. It was set aside and will not become a
permanent part of the wildlife refuge until the drilling is over.
This chart depicts one of the things we found recently. I want people
to see it. That is my commander, General Eisenhower, pictured on this
chart. It is a poster that was put up by the Petroleum War Council
during World War II. It is a statement to workers in the oil fields.
Here is the commanding general of our forces at the time of the
invasion of Europe saying to those people in the oil fields: Your work
is vital to our victory . . . our ships . . . our planes . . . our
tanks must have oil. Stick to your job--oil is ammunition.
Our generation knew that oil was related to national security. I
don't know how anybody today can say this is not a national security
issue when we bring the ANWR issue before the Senate. We should have an
up-or-down vote. We should not have to prove we have 60 votes. The
reason the amendment is not here is we are trying our best to get 60
votes. If I have anything to do with it, we will find a way to get
them, but it should not be required. The requirement should be only
that we come
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to the Chamber and demonstrate it is a national security issue, and
that issue should not be subject to a filibuster.
I believe those who filibuster against this amendment will be
committing a grave error. The American public should know that. Anybody
out there who is interested should look at this. This is the National
Interest Land Conservation Act of December 2, 1980, section 1002, the
Jackson-Tsongas amendment. It says:
The purpose of this section is to provide for a
comprehensive and continuing inventory and assessment of the
fish and wildlife resources of the coastal plain of the
Arctic National Wildlife Refuge; an analysis of the impact of
oil and gas exploration, development, and production, and to
authorize exploratory activity within the coastal plain in a
manner that avoids significant adverse effects on fish and
wildlife and other resources.
It has been 21 years since that bill was passed. I got this out of my
archives, for anybody who is interested. That was one of my favorite
photos. That is Senator Scoop Jackson, this is Paul Tsongas, and that
is a younger Ted Stevens. Senator Tsongas has in his hand, and I have a
copy, the final version that Senator Jackson and I agreed to with
regard to that bill in 1980. That 1980 bill gives us the authority to
proceed with the exploration in the Coastal Plain. It was the intention
of these people--they made a commitment to us that we would be able to
proceed with exploratory activity and development in the Arctic Plain,
provided there was an environmental impact statement made that showed
there would be no adverse impact on the fish and wildlife resources of
that Arctic Plain, the million and a half acres set aside for
exploration activity by the Tsongas-Jackson amendment.
We have twice prepared these statements--twice. It was during the
Reagan-Bush administration, and the first Bush administration. The
President asked the Congress to approve proceeding on the basis of the
finding of those environmental impact statements that there would be no
adverse impact by gas exploration and development on the Coastal Plain.
But twice the Congress, then under the control of the current
majority party, refused to approve that request.
During the Clinton administration, twice the Congress sent to
President Clinton a bill that would authorize the commencement of this
exploration and development activity in the Arctic Plain, and the
President vetoed it.
So there has been a stalemate now for 21 years. Had we started this
development, we would not be under the threat of Iraq today; and had we
started this development, we would not be importing from Iraq a million
barrels of oil a day.
We are sending to Iraq billions of dollars that they are using now to
pay stipends to suicide bombers' families. Our money that is buying oil
from Iraq is paying the suicide bombers' families.
I cannot understand a Senate that would refuse to carry out the
existing law that was a commitment made to my State. We are not a very
old State, Mr. President. As a matter of fact, I had been here then all
but 9 years that Alaska had been a State. This is a basic commitment to
the developmental area of Alaska. This was set aside--the first 9
million acres--during the period of time when I was at the Department
of the Interior. At that time, it was the Arctic Wildlife Range. The
wildlife range was subject to oil and gas development under
stipulations to protect the fish and wildlife. It was never closed. It
has never been closed to oil and gas development. It is not closed now.
The 1980 act did not close this area to oil and gas development. On the
contrary, it set aside specifically 1\1/2\ million acres in that 1002
area, the amendment offered by Senators Tsongas and Jackson, as I
indicated.
I have here a history of the dates of Federal land activities with
regard to this area. I want to put them in the Record so that there is
a very clear statement that, from 1923 until now, this area has never
been closed to oil and gas development. It has never been made part of
the Arctic Wildlife Refuge that was closed to such development. It has
never been wilderness. There is wilderness in the rest of the refuge,
but this is not wilderness.
I hear people saying we are proposing to drill in a wilderness area
every day. That is not true.
I ask unanimous consent this statement of select dates and Federal
public land history in Alaska be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Select Dates in Federal Public Lands History In Alaska
Feb. 27, 1923--Executive Order 3797-A (President Warren
Harding)--creates National Petroleum Reserve with six year
reservation for classification, examination and preparation
of plans for oil and gas development.
Jan. 22, 1943--Public Land Order 82 (Abe Fortas, Acting
Secretary of the Interior)--(1) All public lands in Alaska
withdrawn from sale, location, selection, and entry under the
public-land laws of the United States, including the mining
laws, and from leasing under the mineral-leasing laws; and
(2) the minerals in such lands reserved under the
jurisdiction of the Secretary of the Interior for use in
connection with the prosecution of the war.
Included public lands:
(1) Alaska Peninsula in South-Central Alaska.
(2) Katalla-Yaktaga region around the Copper River and
Chugach National Forest regions.
(3) All lands within the Chugach National Forest.
(4) 48 million acres of public and non-public lands in
Northern Alaska from Cape Lisburne to Canada (includes
today's ANWR).
The order did not affect or modify existing reservations of
any of the lands involved except to the extent necessary to
prevent the sale, location, selection, or entry of the
described lands under the public-land laws, including the
mining laws, and the leasing of lands under the mineral
leasing laws.
July 31, 1945--Public Land Order 289--(Abe Fortas, Acting
Secretary of the Interior) Amended Executive Order 3797-A by
deleting the six-year limit for classification, examination,
and preparation for oil and gas development of NPRA.
April 22, 1958--Public Land Order 1621--(Secretary of the
Interior Fred Seaton) Amended Public Land Order 82 by
allowing oil and gas exploration of approximately 16,000
acres within the known geological structure of the Gubik gas
field.
Paragraph 3 of PLO 1621 established lands east of the
Canning River along the coast as the Arctic Wildlife Range
(approximately 5 million acres).
Paragraph 3 specifically states in regard to the Range: As
provided by the regulations in 43 CFR 295.11, the lands shall
remain segregated from leasing under the mineral leasing laws
and from location under the mining laws to the extent that
the withdrawals applied for, if effected would prevent such
leasing or locations, until action on the application for
withdrawal has been taken.
Paragraph 4 states: None of the released lands shall become
subject to oil and gas leasing until approved leasing maps
for such lands, or portions thereof, are from time to time
prepared, and notices of the time and place of filing thereof
and of the availability of lands for leasing have been
published in the Federal Register by the Bureau of Land
Management. These notices will describe the lands subject
to noncompetitive lease and will provide for a
simultaneous filing period of offers to lease. The leasing
maps will not describe any lands within two miles of the
Naval Petroleum Reserve No. 4.
September 4, 1959--Public Land Order 1965--(Secretary of
the Interior Fred Seaton) Amended PLO 1621 to permit the
preparation and filing of leasing maps affecting all lands
situated within the Gubik gas field, and lying within the
two-mile buffer zone adjacent to NPRA.
December 8, 1960--Public Land Order 2214--Secretary of the
Interior Fred Seaton) Establishment of the Arctic National
Wildlife Range.
Paragraph 1: For the purpose of preserving unique wildlife,
wilderness and recreational values, all of the hereinafter
described area in northeastern Alaska, containing
approximately 8.9 million acres is hereby, subject to valid
existing rights, and the provisions of any existing
withdrawals, withdrawn from all forms of appropriation under
the public land laws, including the mining but not the
mineral leasing laws, nor disposal of materials under the Act
of July 31, 1947, as amended, and reserved for the use of the
United States Fish and Wildlife Service as the Arctic
National Wildlife Range.
December 2, 1980--ANILCA--Section 1002--(pertinent
subsections of 1002)--(a) Purpose--The purpose of this
section is to provide for a comprehensive and continuing
inventory and assessment of the fish and wildlife resources
of the coastal plain of the Arctic National Wildlife Refuge;
an analysis of the impacts of oil and gas exploration,
development, and production, and to authorize exploratory
activity within the coastal plain in a manner that avoids
significant adverse effects on the fish and wildlife and
other resources.
(i) Effect of other laws--Until otherwise provided for in
law enacted after December 2, 1980, all public lands within
the coastal plain are withdrawn from all forms of entry or
appropriation under the mining laws, and from operation of
the mineral leasing laws, of the United States.
Mr. STEVENS. I am perfectly willing at any time to start the debate
on ANWR. I prefer to start it when we
[[Page S2461]]
know we can have an up-or-down vote. We had one on CAFE. We opposed
that. I opposed that. I said at the time one of the reasons I did is I
come from a State where every person who has a car has an SUV. Until
they show me they are not going to outlaw them, we cannot support that.
We can support reasonable restrictions on the use of automobiles that
will lead us to have some savings, but savings doesn't produce oil.
Oil is a lot more than gasoline, by the way. As I have repeatedly
told people, everything from frisbees to panty hose comes out of the
barrel of oil, in addition to gasoline. It is time we got down to
discussing this amendment. But it ought to be discussed in a manner in
which the national security issue is considered. Oil is a national
security item for this country--more right now than at any other time
except in the 1970s when we had an embargo. We are as near to an
embargo as we have been since that time. As I said yesterday, I think
we are very close to embargo now.
Mr. President, the question of what happens to a barrel of oil has
been very interesting. I showed this to the Senate some time ago. These
are the items made from oil: Toothpaste, footballs, ink, lifejackets,
tents, dyes, balloons, cameras, cranes, vitamin capsules, soft
contacts, panty hose, fertilizer, photographs, roofing material,
compact discs, shaving cream, perfumes, umbrellas, golf balls,
aspirins, house paint, lipstick, dentures, glue, clothing, deodorant.
Thousands of products come from oil.
People keep talking about CAFE standards being able to produce
savings and lead to somebody having oil--no, they are talking about
gasoline. A barrel of oil is what we are talking about. We produce oil,
the gasoline is produced in refineries in the south 48.
Let me add this. One barrel of oil makes 44.2 gallons of economic
essentials. Everyday products consume 56 percent, such as those I have
mentioned. Gasoline takes 44 percent of the barrel. During the time of
the Persian Gulf war, at my request, as a matter of fact, the oil
industry increased the throughput to 2.1 million barrels a day. When I
was home last week, there were 950,000 barrels a day going through the
pipeline. Do you know why? The reserves are going down. It is
uneconomic to produce at the rate we used to because reserves are going
down--our reserves over in the Arctic Plain. If we had that producing
now, we would not be buying a million barrels of oil a day from Iraq.
The only reason he can use oil as a weapon now is we have decreased
the throughput in the Alaskan pipeline. When it was running at full
tilt, that pipeline carried, as I said, 2.1 million barrels a day. That
was 25 percent of the domestic oil produced in the United States. Today
we produce about 12 percent of the oil produced in the United States
because we have been unable to get in there as was committed to us in
1980, that we would be able to explore and develop the oil and gas in
that area, provided there would be no permanent harm to the fish and
wildlife in the area.
The House bill--it is not before us now--set down a limit of 2,000
acres out of the 1.5 million acres. Only 2,000 acres on the surface can
be used for oil and gas development.
I hope we can get down to the point where we are discussing reality
and we are discussing issues and not the issue of whether we have to
have 60 votes. The 60-vote requirement is only a requirement that comes
from a leadership decision that a filibuster will be allowed.
I wish to God Senator Mansfield was still with us so he could come
and say to us why he did what he did. He prohibited a filibuster on the
oil pipeline amendment. The same forces were opposed to it then that
are opposed to ANWR now. In fact, the ads in the paper look almost the
same: caribou, mountains, D-8 Caterpillars.
One time I came to the floor after my good friend, Gaylord Nelson,
left the Senate and showed the Senate a brochure that came out of the
Wilderness Society. It had a picture of a D-8 Caterpillar over the top
of a mountain out of a forest looking down with a beautiful lake with
caribou, bears, and everything standing around it, and that was
purported to be the North Slope.
In the first place, there are no trees there. In the second place,
all those animals are not there. In the third place, there is nothing
there except tundra. There is fish and wildlife, we agree to that. We
have had the studies made twice now that there will not be permanent
harm to fish and wildlife, particularly the caribou.
I invite the majority--let's get a couple planes and fly up there and
I will show you that place right now. Oil and gas activity only takes
place in the wintertime, not in the summertime. The caribou are there
for a maximum of 6 weeks and for 3 of the last 5 years they did not
come up there at all.
This idea that somehow we are going to ruin anything about my State
by allowing this development of oil and gas to continue is absolutely
wrong.
It is time we came down to the decision that there ought to be an up-
or-down vote. I go right back to where we started. The Senate voted
twice on CAFE. It was not filibustered by this side. It was not
filibustered by this side because we agreed the whole issue of foreign
oil dependence and oil availability in this country is a national
security issue.
I hope the majority party will see fit to recognize that as such
before we are through. If we live under the paradigm of getting 60
votes, then I am willing to keep the Senate around until we get 60
votes. It is time we really stood up for this. It is a national issue.
It is absolutely necessary, I believe, for the future of this country
to have that oil produced. It can be produced and the gas can be
produced out of that area.
I might also say in passing that this is just a preliminary. We are
going from this issue to the natural gas pipeline. The natural gas
pipeline will carry gas that has been produced in the process of the
production of oil at Prudhoe Bay. Gas was produced with the oil and
then it was separated from the oil and reinjected into the ground. We
know there are trillions of cubic feet of gas down there because it has
been produced and put back in the ground. There has been no
transportation mechanism.
We are very close to a decision now from the producers and the
pipeline companies to bring that gas down to markets in the Midwest. It
will be a 3,000-mile pipeline, maybe up to 1,500 miles of gathering
pipelines, buried gaslines running through Alaska, through Canada, all
the way down into Chicago. It will be the largest project in the
history of man financed by private enterprise.
It will require over 400,000 workers to complete that project. It
will require new trucks, new backhoes, all kinds of new equipment to
improve the roads so trucks can run on the roads up in the north
country. It is a massive project. The gas pipeline cannot be completed
until about 2009. I hope to God I live to see it done. I thank the
Chair.
Amendments Nos. 3098 through 3102, En Bloc, to Amendment No. 2917
The PRESIDING OFFICER. The Senator from New Mexico.
Mr. BINGAMAN. Mr. President, I send a series of five amendments to
the desk, and I ask for their immediate consideration en bloc.
The PRESIDING OFFICER. Without objection, the pending amendments are
laid aside. The clerk will report.
Mr. STEVENS. May we see the amendments.
Mr. BINGAMAN. Mr. President, the amendments have been cleared on both
sides. I will be glad to put in a quorum call until the Senator from
Alaska has had a chance to review them. I suggest the absence of a
quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. DAYTON. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
The clerk will report the amendments.
The legislative clerk read as follows:
The Senator from New Mexico (Mr. Bingaman) proposes amendments
numbered 3098 through 3102, en bloc, to amendment No. 2917.
Mr. BINGAMAN. Mr. President, I ask unanimous consent that the reading
of the amendments be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendments are as follows:
[[Page S2462]]
amendment no. 3098
(Purpose: To require a National Academy of Sciences Study of renewable
resources on the Outer Continental Shelf)
On page 80, line 21, strike ``development; and'' and all
that follows through page 81, line 2, and insert the
following:
``development.
``(h) National Academy of Sciences Study.--Within 90 days
after the enactment of this Act, the Secretary of the
Interior shall contract with the National Academy of Sciences
to study the potential for the development of wind, solar,
and ocean energy on the Outer Continental Shelf; assess
existing federal authorities for the development of such
resources; and recommend statutory and regulatory mechanisms
for such development. The results of the study shall be
transmitted to Congress within 24 months after the enactment
of this Act.''
____
amendment no. 3099
(Purpose: To promote energy efficiency in small businesses)
On page 292, line 18, insert after the word ``label'' the
following: ``, including special outreach to small
businesses;''.
____
amendment no. 3100
(Purpose: To include units of local government in energy efficiency
pilot program)
On page 252, strike section 904 and insert the following:
SEC. 904. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT
PROGRAM.
(a) Grants.--The Secretary of Energy is authorized to make
grants to units of local government, private, non-profit
community development organizations, and Indian tribe
economic development entities to improve energy efficiency,
identify and develop alternative renewable and distributed
energy supplies, and increase energy conservation in low
income rural and urban communities.
(b) Purpose of Grants.--The Secretary may make grants on a
competitive basis for--
(1) investments that develop alternative renewable and
distributed energy supplies;
(2) energy efficiency projects and energy conservation
programs;
(3) studies and other activities that improve energy
efficiency in low income rural and urban communities;
(4) planning and development assistance for increasing the
energy efficiency of buildings and facilities; and
(5) technical and financial assistance to local government
and private entities on developing new renewable and
distributed sources of power or combined heat and power
generation.
(c) Definition.--For purposes of this section, the term
``Indian tribe'' means any Indian tribe, band, nation, or
other organized group or community, including any Alaskan
Native Village or regional or village corporation as defined
in or established pursuant to the Alaska Native Claims
Settlement Act (43 U.S.C. 1601 et seq.), which is recognized
as eligible for the special programs and services provided by
the United States to Indians because of their status as
Indians.
(d) Authorization of Appropriations.--For the purposes of
this section there are authorized to be appropriated to the
Secretary of Energy an amount not to exceed $20 million for
fiscal year 2003 and each fiscal year thereafter through
fiscal year 2005.
____
Amendment No. 3101
(Purpose: To set a funding goal of $100 million for research and
development on wind power)
On page 408, line 20, strike ``2006.'' and insert the
following: ``2006, of which $100,000,000 may be allocated to
meet the goals of subsection(b)(1).''.
____
Amendment No. 3102
(Purpose: To clarify the requirement for the use of advanced meters in
federal facilities)
On page 258, line 1, strike Sec. 912 in its entirety and
insert the following:
SEC. 912. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.
Section 543 of the National Energy Conservation Policy Act
(42 U.S.C. 8253) is further amended by adding at the end the
following:
``(e) Metering of Energy Use.--
``(1) Deadline.--By October 1, 2004, all Federal buildings
shall, for the purposes of efficient use of energy and
reduction in the cost of electricity used in such buildings,
be metered or submetered in accordance with guidelines
established by the Secretary under paragraph.
(2) Each agency shall use, to the maximum extent
practicable, advanced meters or advanced metering devices
that provide data at least daily and that measure at least
hourly consumption of electricity in the Federal buildings of
the agency. Such data shall be incorporated into existing
federal energy tracking systems and made available to federal
facility energy managers.
``(2) Guidelines.--
``(A) In general.--Not later than 180 days after the date
of enactment of this subsection, the Secretary, in
consultation with the Department of Defense, the General
Service Administration and representatives from the metering
industry, utility industry, energy services industry, energy
efficiency industry, national laboratories, universities and
federal facility energy managers, shall establish guidelines
for agencies to carry out paragraph (1).
``(B) Requirements for Guidelines.--The guidelines shall--
``(i) take into consideration--
``(I) the cost of metering and submetering and the reduced
cost of operation and maintenance expected to result from
metering and submetering;
``(II) the extent to which metering and submetering are
expected to result in increased potential for energy
management, increased potential for energy savings and energy
efficiency improvement, and cost and energy savings due to
utility contract aggregation; and
``(III) the measurement and verification protocols of the
Department of Energy;
``(ii) include recommendations concerning the amount of
funds and the number of trained personnel necessary to gather
and use the metering information to track and reduce energy
use;
``(iii) establish 1 or more dates, not later than 1 year
after the date of issuance of the guidelines, on which the
requirements specified in paragraph (1) shall take effect;
and
``(iv) establish exclusions from the requirements specified
in paragraph (1) based on the de minimus quantity of energy
use of a Federal building, industrial process, or structure.
``(3) Plan.--No later than 6 months after the date
guidelines are established under paragraph (2), in a report
submitted by the agency under section 548(a), each agency
shall submit to the Secretary a plan describing how the
agency will implement the requirements of paragraph (1),
including (a) how the agency will designate personnel
primarily responsible for achieving the requirements and (b)
demonstration by the agency, complete with documentation, of
any finding that advanced meters or advanced metering
devices, as defined in paragraph (1), are not practicable.''.
amendment no. 3099
Mr. KERRY. Mr. President, I thank Senator Bingaman for offering an
amendment for me and Senator Landrieu to the energy bill regarding
small business and energy efficiency. Quite simply, this amendment says
that as the Department of Energy and the Department of Environmental
Protection work together to raise public awareness of the Energy Star
Program, they must make a special effort to reach out to small
business.
What is the Energy Star Program? It is an initiative that identifies
and promotes energy-efficient products and buildings in order to reduce
energy consumption, improve energy security, and reduce pollution.
Because small businesses have little time and few resources to learn
about options for energy efficiency, within Energy Star there is a
voluntary and free program for small businesses that enables owners to
calculate the costs of energy efficiency upgrades, estimate payback
periods and explore providers of products, services, and financing.
It only makes sense to focus on small businesses. America's 25
million small businesses make up half the economy and, according to a
report by E SOURCE, entitled ``The Forgotten Majority: Small Business,
Hidden Opportunities,'' small businesses account for more than half of
all the commercial energy used in North America. Small businesses
represent significant buying power for energy efficient technologies,
many of which are developed and manufactured by small businesses. By
promoting the development and use of energy efficient products and
practices in our small businesses, we will not only help reduce energy
use and pollution, but we will also help small businesses cut costs,
saving billions of dollars, according to the Center for Small Business
and the Environment. By reducing their bottom lines, small businesses
increase their competitiveness in the market.
In the last few years, I have held three hearings on small
businesses, energy and the environment. Testimony after testimony from
policy experts to small business owners validated that investing in
energy-efficient and environmentally friendly technologies is a good
business, returning far more than compliance with environmental
regulations.
While energy efficiency is a major cost-cutting option for small
businesses, too few know about it or the Energy Star Program and
endorsed Energy Star products. In addition to this amendment, there are
other steps we can take to increase awareness. One, enlist the Small
Business Administration to spread the word and coordinate efforts with
the EPA and DoE. Right now, in spite of a hearing we held last August
regarding the business of environmental technology and the benefits of
Energy Star services to small businesses, SBA continues to bury Energy
Star within its website. The three
[[Page S2463]]
agencies should coordinate their efforts, SBA has contact with
thousands of small businesses daily, and is in a unique position to
reach them compared to DoE and EPA.
Another step we should take is to have SBA's disaster loan program
and Federal Emergency Management Agency promote Energy Star products
when small businesses rebuild or replace equipment. Billions of dollars
each year go to rebuilding businesses and homes, and it presents an
excellent opportunity to invest in products that are good for the
economy and the environment.
Last, for small businesses that do want to make upgrades, the upfront
cost is often a deterrent, even with rebates from local utility
companies. Small businesses typically don't have a lot of extra cash
lying around to finance the purchases. SBA should find a way to work
with the DoE and EPA to facilitate upgrades by getting financing for
qualified businesses through the SBA's loan programs. Because we know
energy efficient products increase profits, that should help lenders
approve loans because there will be money for repayment.
I thank Senator Landrieu for joining me in offering this amendment. I
thank Byron Kennard of the Center for Small Business and the
Environment and his colleague Carol Werner for educating the public and
policy makers about the significance of small businesses to energy and
environmental policy. And, lastly, I thank Senators Bingaman and
Murkowski and their staff for making this amendment possible.
Ms. LANDRIEU. Mr. President, as a member of the Small Business
Committee, I just want to echo the remarks of my chairman and
colleague, Senator Kerry, concerning the amendment that we have
proposed today. I also want to thank Chairman Bingaman for offering
this amendment for us. I know he has been exceptionally busy with the
energy bill the past few weeks, and I am grateful that he took the time
to allow us to raise this issue.
I am proud to join Senator Kerry in support of this important
amendment. The Energy Star Program is an excellent program which can
provide a great deal of assistance to small businesses; but to
participate in the program, these same businesses must be aware of the
program. That is why coordinated outreach efforts by agencies like the
Small Business Administration, the Department of Energy, and the
Environmental Protection Agency is so important.
Of particular importance, as Senator Kerry stated, is to get SBA
involved in this effort. We need to provide for both the financial
assistance and the information that our small businesses need to
upgrade to more energy-efficient products. Because for every dollar
that these businesses spend on energy efficient products now, several
dollars will be saved down the road. So this is something that makes
good economic sense.
As a member of the Energy and Natural Resources Committee, I also
believe that this amendment is important in the context of an overall
energy policy. After all, one of our priorities in the energy bill is
to make our Nation more energy efficient, and less dependent on foreign
sources of oil. If small businesses use more than half of all
commercial energy in North America, it makes a great deal of sense from
a national security perspective to help these businesses become more
efficient.
So this is much more than a one-time purchase; this is a long-term
investment. And the Federal Government, through the SBA in particular,
has a clear role in helping these small businesses make these
investments, both through financing assistance and the dissemination of
relevant information. Again, I am happy to join Senator Kerry in
support of this amendment.
Mr. BINGAMAN. Mr. President, these are five amendments that have been
cleared on both sides: one by Senator Kennedy, one by Senator Kerry,
one by Senator Wellstone, one by Senator Conrad, and one by myself. I
believe there is no objection to them. I urge the Senate to adopt them
at this time.
The PRESIDING OFFICER. Is there further debate on the amendments? If
not, the question is on agreeing to the amendments.
The amendments (Nos. 3098 through 3102) were agreed to en bloc.
Mr. BINGAMAN. Mr. President, I move to reconsider the vote, and I
move to lay that motion on the table.
The motion to lay on the table was agreed to.
Mr. BINGAMAN. Mr. President, I yield the floor.
Amendment No. 3097 To Amendment No. 2917
Mr. DAYTON. I send to the desk amendment No. 3097.
The PRESIDING OFFICER. Without objection, the pending amendments are
set aside.
The clerk will report.
The assistant legislative clerk read as follows:
The Senator from Minnesota [Mr. Dayton], for himself, Mr.
Wellstone, and Mr. Feingold, proposes an amendment numbered
3097 to amendment No 2917.
Mr. DAYTON. Mr. President, I ask unanimous consent that the reading
of the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
(Purpose: To require additional findings for FERC approval of an
electric utility merger)
At the appropriate place in title II, insert the following:
SEC. 2____. ADDITIONAL ELECTRIC UTILITY MERGER PROVISIONS.
Section 203(a) of the Federal Power Act (16 U.S.C. 824b(a))
(as amended by section 202) is amended by striking paragraph
(4) and inserting the following:
``(4) Approval.--
``(A) In general.--After notice and opportunity for
hearing, if the Commission finds that the proposed
transaction will advance the public interest, the Commission
shall approve the transaction.
``(B) Minimum required findings.--In making the finding
under subparagraph (A) with respect to a proposed
transaction, the Commission shall, at a minimum, find that
the proposed transaction will--
``(i)(I) enhance competition in wholesale electricity
markets; and
``(II) if a State commission requests the Commission to
consider the effect of the proposed transaction on
competition in retail electricity markets, enhance
competition in retail electricity markets;
``(ii) produce significant gains in operational and
economic efficiency; and
``(iii) result in a corporate and capital structure that
facilitates effective regulatory oversight.''.
Mr. DAYTON. I am pleased, along with Senator Wellstone, to present
this amendment. I certainly want to thank the chairman of the committee
and the manager of the bill, Senator Bingaman, for his extraordinary
efforts over the last weeks in regard to this regulation. It is
difficult because it reflects the varied interests of different parts
of the country and, frankly, within my own State of Minnesota some very
different perspectives on how utility policies should be directed.
The electricity title is one that is of concern to the smaller
utilities in Minnesota, particularly the municipal and cooperative
electric utilities because of its repeal of PUHCA and then because of
the lack of any regulatory oversight and control over the mergers of
these utilities. I remember when I was a youngster playing the game of
monopoly, the utility companies existed because they were monopolies
and also that they were regulated because they were monopolies. I am
concerned and have been for some time--I saw this starting when I was
Commissioner of Energy and Economic Development in Minnesota--as the
regulations are taken off, they still, in many respects, have the same
monopoly control over markets and geographical regions they had before.
Because of the lessons of Enron, it seems to me we are going in the
opposite direction if we are saying we are now going to remove any
Government oversight before these mergers take place. We have seen in
the instance of telephone companies, the mergers of smaller companies
into larger local companies. I called my local telephone company in
Minnesota and asked for a number in Bloomington, meaning Bloomington,
MN, and they asked me: What State? I am asking for directory
assistance. That is hardly your local telephone company.
We have seen in Minnesota a merger of our largest utility, formerly
Northern States Power, with another company, to make Xcel Energy. We
see these utilities having more and more control over the markets, and
we do not have a way, if we eliminate PUHCA, of looking out for the
public interest and the consumer interest. These mergers ought to go
forward if they are going to benefit the public interest, but we have
learned over and over again that the lack of competition inevitably
works against the consumer
[[Page S2464]]
interest, and that is where this amendment steps in.
If this bill were to pass in its present form, it would mean the
repeal of PUHCA. That is why this amendment, which I coauthored with my
colleague Senator Wellstone, would improve the language in the bill, in
my view, because it requires that these proposed utility mergers
advance the public interest. It spells out specific standards for the
Federal Energy Regulatory Commission to consider in determining if a
proposed merger advances the public interest.
It says FERC shall find at a minimum that, first, the merger enhances
competition in wholesale electricity markets; second, that the merger
produces significant gains in operational and economic efficiency; and,
third, that the merger results in a corporate and capital structure
that facilitates effective regulatory oversight.
In the aftermath of Enron, I think it is particularly important that
we know this entity that is going to be coming out of this merger is
one which still exists in a way that can be overseen in a regulatory
way, and that it is a genuine company; that it has a genuine financial
underpinning for the sake of investors, for the sake of consumers.
I think this amendment will fill a void which otherwise leaves this
title decidedly neglectful of the protection of many of the residents
in Minnesota, businesses, and particularly those in more rural parts of
our State who still depend upon the smaller electricity and other
energy providers that, in this case, run the risk, if we are not
careful, of being swamped, driven out of business, and then underserved
by those that come in as very large entities to take their place.
I yield the floor.
The PRESIDING OFFICER. The Senator from Minnesota.
Mr. WELLSTONE. Mr. President, I am pleased to join Senator Dayton in
this effort. I think there are some other Senators who also want to
join in the debate. There are others who have some ideas about
additional consumer protection provisions, and we will see later on in
the debate whether or not we further modify the amendment.
I say to the Presiding Officer this amendment basically would
strengthen the underlying merger review standard that FERC would
undertake, and I say with a smile to the Presiding Officer that
basically this is all about PUHCA. I mean, who the heck knows what
PUHCA means? Public Utility Holding Company Act.
This is legislation that was actually in this bill and was basically
repealed, although the chair of the committee, Senator Bingaman has
tried mightily to kind of work out a compromise arrangement to try to
provide some protection.
In Minnesota, the little people, the little interests, the smaller
businesses, the smaller companies, they are really worried about this
because we see the way in which we have had this wave of mergers.
In the last 3 years, there have been 30 major utility mergers and
acquisitions. Everybody is really worried. It is a little bit like the
packers and what we were trying to do to make sure our independent
livestock producers had some honest to goodness free enterprise, real
competition. It is kind of analogous because a lot of the smaller
companies and smaller businesses, much less a lot of rural citizens,
are just real worried that without the protection we had with PUHCA on
these mergers, albeit it was not ever really enforced like it should
have been, that we are going to see a wave of more mergers, which are
not always bad. I want to get to that in a moment. That could very well
be to the detriment of consumers and some of the smaller companies that
are driven out of existence.
I do not know whether or not we can win on this amendment. I have no
idea, but I will say this, and I make this prediction tonight in this
Chamber: This decade there is going to be a lot of discussion and
debate and more focus on the whole problem of concentration of economic
power in our economy. It is going to go in that direction. It is
everywhere.
The Telecommunications Act in 1996 was supposed to be great for
everybody. Cable rates were supposed to go down. They have not. It was
supposed to lead to all kinds of positive benefits.
One of the things that has happened is all of these local radio
stations have been driven out of existence, and we have a few large
conglomerates that are now controlling the flow of information in a
representative democracy. The same thing with banks, with the health
insurance industry, with the food industry and agriculture, and with
energy companies and utility companies. There comes a point in time
where I think people in coffee shops in Minnesota are saying: Where is
Teddy Roosevelt when we need him?
Let us talk about putting some free enterprise back into the free
enterprise system. Let's have some protection for ordinary
citizens. That is what this amendment is about.
What this amendment does is simply apply the same merger review
standard under the Public Utility Holding Company Act to the FERC
review of electricity mergers. That is what we are worried about. That
is why I think this bill is a step backwards. We have taken away this
important review standard.
The electric utility industry is undergoing rapid consolidation.
Again, we are not speaking to a small issue. In the past 3 years, 30
major utility mergers and acquisitions have taken place. Not all of
these mergers are inherently bad. Some should not be prevented. Some of
the mergers can produce efficiencies, economies of scale, cost savings,
and more. However, a merger can also reduce competition, increase
costs, and frustrate regulatory oversight.
Federal merger review policy should distinguish between those mergers
that promote the public interest and those mergers that do not. That is
what we are saying. I think the ordinary people--which I don't mean in
a pejorative sense but in a positive way--ordinary citizens have a
right to make sure their interests as consumers are protected.
This amendment improves the base language of the bill by doing a few
things:
One, requiring that proposed mergers promote the public interest in
order to secure Federal regulatory approval. That is the threshold. If
you are going to do a merger, it could be it is good, but at least it
ought to be a standard that you are advancing the public interest.
Two, spelling out specific standards for assessing the impact on the
public interest. In other words, we spell that out in this amendment,
including what will be the effect of this merger on competition, what
is going to be its effect on operational efficiency, what is its effect
on regulatory oversight.
Three, expanding that all mergers between electric and gas utilities
are reviewed. Given, by the way, the rather unpleasant experience we
all had last year with natural gas prices, there is a real need to look
at the natural gas utilities. That is part of what this amendment is
about.
Finally, preventing utilities from skirting Federal review by using
partnerships or other corporate forms to avoid classification as a
merger.
Colleagues, this amendment does not impose new regulatory
requirements on the proposed utility mergers. Rather, the standards
contained in this amendment mirror those that have been in PUHCA, which
the bill would repeal. While the standards are comparable, the
amendment actually provides greater flexibility than under PUHCA. We
are just trying to restore some consumer protection. PUHCA requires
that utilities be physically integrated in order to merge. The
amendment waives that requirement. PUHCA prevents the merger of
multistate electric and gas utilities. The amendment waives that
requirement. But we do provide for FERC review of such mergers.
Colleagues, I said on the Craig amendment, I think they were right in
their concern about the repeal of PUHCA. The amendment was wrong
because it basically also eliminated a section of the bill, which was
the renewable portfolio for electricity, which, as the Presiding
Officer knows, is important to our State--very important. From my point
of view as a Senator from Minnesota, I did not vote for that amendment.
However, I believe the part of the Craig amendment that was right on
target was that we basically repeal PUHCA. Mr. Bingaman, the Senator
from New Mexico, has put some good language in here and has taken some
positive steps.
[[Page S2465]]
But, again, the key point is we have a threshold which is the same
threshold we have had with PUHCA which goes back to the 1920s or 1930s.
If Senators think we do not need it anymore because there are no
mergers or acquisitions, quite to the contrary; we ought not be giving
up on the consumer protection. At the very minimum, we should have the
language that requires that the proposed mergers promote the public
interest. Then we get FERC approval. At the very minimum, we ought to
do that. Let's make sure they promote competition, make sure they are
good for consumers, make sure they add to economic efficiency.
Right now in this legislation, I am sad to say, we do not have that
standard. We are going to make a huge mistake if we do not have a
stronger consumer protection standard and a stronger competition
standard. That is what this amendment is about.
I yield the floor.
The PRESIDING OFFICER. The Senator from Maine.
Ms. COLLINS. Mr. President, I ask unanimous consent I be permitted to
proceed as in morning business for up to 5 minutes.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from Maine is recognized.
Ms. COLLINS. I thank the Chair.
(The remarks of Ms. Collins pertaining to the introduction of S. 2085
are located in today's Record under ``Statements on Introduced Bills
and Joint Resolutions.'')
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