[Congressional Record Volume 149, Number 27 (Thursday, February 13, 2003)]
[Senate]
[Pages S2458-S2462]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. Daschle (for himself, Mr. Lugar, Mr. Hagel, Mr. Dorgan, 
        Mr. Johnson, Mr. Voinovich, Mr. Harkin, Mr. Bond, Mr. Nelson of 
        Nebraska, Mr. Grassley, Mr. Durbin, Mr. Talent, Mr. Dayton, Mr. 
        Fitzgerald, Mr. Coleman, and Mr. Conrad):
  S. 385. A bill to amend the Clean Air Act to eliminate methyl 
tertiary butyl ether from the United States fuel supply, to increase 
production and use of renewable fuel, and to increase the Nation's 
energy independence, and for other purposes; to the Committee on 
Environmental and Public Works.
  Mr. DASCHLE. Madam President, headlines in daily papers all across 
the country underscore our economy's vulnerability to foreign oil.
  Today, a new generation is learning what many Americans have known 
since the 1970s--our economic security and our national security depend 
on our energy security.
  Today I, along with a number of my colleagues, am introducing the 
Fuels Security Act of 2003.
  This bill responds directly to our Nation's unhealthy reliance on 
imported oil by establishing greater flexibility in our gasoline 
regulations, and by tripling the use of domestic, renewable fuels over 
the next 10 years.
  This legislation is identical to the fuels agreement included in last 
year's Senate-passed energy bill.
  Based on the experience we have gained over the last seven years with 
the reformulated gasoline program, the Fuel Security Act bill makes a 
number of important changes in Federal law.
  It bans MTBE in 4 years, authorizes funding to cleanup MTBE 
contamination and fix leaking underground tanks, allows the most 
polluted states to opt into the reformulated gasoline program, and 
provides all States with additional authority under the Clean Air Act 
to address air quality concerns.
  It eliminates the oxygen requirement from the RFG program, a change 
that is very important to states that are planning to remove MTBE from 
their gasoline supplies in the near future.
  To preserve the hard-fought air quality gains that have resulted from 
the implementation of that requirement, the bill creates a renewable 
fuels standard that will nearly triple the use of renewable fuels like 
ethanol and biodiesel over the next 10 years.
  Finally, the bill also provides special encouragement to biomass-
based ethanol, which holds great promise for converting a variety of 
organic materials into useful fuel, while substantially reducing 
greenhouse gas emissions.
  Ethanol comes from American farmers and producers, passes through 
American refiners, and fuels American energy needs. No soldier has to 
fight overseas to protect it. And no international cartel could turn 
off the spigot.
  For years, we talked about those benefits with a sense of 
resignation. After all, these aren't new arguments, and yet there were 
a lot of people who still saw ethanol as a boutique fuel, not a real 
answer to our energy problems.
  With this legislation, we intend to change that preception--and get 
America moving toward energy independence.
  The renewable fuels standard will be a win-win-win. It will help the 
environment, it will help the rural economies which are hurting right 
now, and it will help reduce America's dangerous dependence on foreign 
oil.
  I believe we can make it law. During consideration of the Energy Bill 
last summer, the Senate endorsed the Renewable Fuels Standard package 
by a vote of 69 to 30.
  Overall, this legislation is a careful balance of often disparate and 
competing interests--and a compromise in the finest tradition of the 
U.S. Senate.
  Just look at some of the organizations whose active support is 
helping to make this legislation possible: The Northeast States 
Coordinated Air Use Management Agency, the American Petroleum 
Institute, the Clean Fuels Development Coalition, the American Lung 
Association, the American Coalition for Ethanol, the Renewable Fuels 
Association, the Governor's Ethanol Coalition, the National Farmers 
Union, the American Farm Bureau, the National Corn Growers Association, 
and the American Corn Growers Association.

[[Page S2459]]

  That support across the political and ideological spectrum is 
reflected within the Senate as well.
  I particularly want to thank Senator Lugar. The seeds for this 
comprehensive legislation were planted a few years ago when he and I 
first introduced legislation to establish a renewable fuels standard 
and provide flexibility in producing reformulated gasoline. Senator 
Lugar's enthusiastic support gave this idea needed momentum and helped 
lay the groundwork for agreement on this legislation last year.
  In addition, Senators Tim Johnson and Chuck Hagel deserve enormous 
credit for legislation they introduced last year to establish a very 
ambitious renewable fuels standard, and for their work in promoting 
this concept.
  And there are many others--Senators Ben Nelson, Tom Harkin, Chuck 
Grassley, Byron Dorgan, Mark Dayton, Dick Durbin, Max Baucus, Kit Bond, 
George Voinovich, and others--who all deserve recognition for the 
progress we have made on this issue.
  Look at America's energy situation today: gasoline prices are high, 
farm income is low and America is importing close to 60 percent of the 
oil we use.
  At the same time, our substantial appetite for energy continues to 
grow every year. Over the next ten years, the United States is expected 
to consume roughly 1.5 trillion gallons of gasoline. At the same time, 
we hold only three percent of the known world oil reserves.
  It has been said that ``we are all continually faced with a series of 
great opportunities, brilliantly disguised as insolvable problems.''
  Meeting our energy challenges is a difficult problem, but it is also 
a great opportunity to demonstrate American strength, and American 
ingenuity.
  By increasing the use of renewable fuels, preserving clean air gains 
and moving us toward energy independence, that is what I believe this 
bill does.
  Mr. LUGAR. Madam President, I am pleased to join with my colleague, 
Senator Daschle, in reintroducing the Renewable Fuels Act. I am 
thankful for this opportunity to remind my colleagues about the 
importance of this legislation, and the benefits it brings to the 
American people.
  In the 107th Congress, the Senate voted in favor of a comprehensive 
energy bill establishing a renewable fuels standard. This provision 
would triple the amount of renewable fuel America consumes, displacing 
nearly 600,000 barrels of oil per day. The bipartisan renewable fuels 
agreement is a culmination of years of effort and enjoys strong support 
from a broad spectrum. Regrettably, disagreements on other provisions 
in the comprehensive energy legislation stranded the renewable fuels 
provision in a House-Senate conference committee last year.
  Senator Daschle and I first introduced a bill creating a renewable 
fuels standard three years ago. Like that earlier bill, this bill 
represents an important first step toward reducing our dependence on 
foreign oil and improving our nation's energy security. At the same 
time, this proposal goes far toward protecting the environment, 
stimulating rural economic development, and increasing the flexibility 
of the national fuel supply to reduce the impact of future price 
spikes.
  This bill will also forms the basis for a solution to the MTBE 
problem that will be acceptable to all regions of the nation. MTBE, a 
carcinogen that contaminates drinking water, is on its way out. This 
proposal addresses public concerns regarding water pollution while 
considering all of the environmental and energy security issues 
involved. It requires the EPA Administrator to end the use of MTBE 
within four years in order to protect public health and the 
environment. And it establishes strict ``anti-backsliding'' provisions 
to capture all of the air quality benefits of MTBE and ethanol as MTBE 
is phased down and then phased out.
  Those of us who recall the energy crises of the 1970s--and recognize 
the current political instability in oil-rich regions around the 
world--remain committed to the development of cheap, plentiful 
renewable sources of energy. For years, tax incentives supporting 
ethanol production have helped foster the creation of a strong domestic 
ethanol industry. But more needs to be done to reduce the cost of 
ethanol and make this plant-based commodity more competitive with 
fossil fuels.
  Energy and agriculture are closely tied topics that have been of 
interest to me for several years. Since 1996, I have chaired five 
hearings in the Agriculture Committee regarding energy security and 
renewable fuels. These hearings were designed to inform the public that 
our reliance on imported oil is growing, making the U.S. and the world 
increasingly dependent on the unstable nations of the Persian Gulf and 
the Caspian Sea. At the same time, the hearings convinced many in 
Washington that a greater reliance on renewable fuels like ethanol 
could have major energy security, air quality and rural development 
benefits.
  As we look to the future, major new scientific and technical 
breakthroughs are making ethanol more economical. As a result of the 
Biomass Research and Development Act, federal agencies are now 
coordinating research activities focused on making ethanol out of 
virtually any plant in the world. New biocatalysts--genetically 
engineered enzymes, yeasts, and bacteria--are reducing the cost of so-
called cellulosic ethanol to the point where petroleum products may one 
day face vigorous competition.
  The legislation we are introducing today will build on these efforts 
by offering an incentive to producers of cellulosic ethanol. Like our 
previous proposals, this bill gives a special credit to users of 
cellulosic ethanol for the purpose of fulfilling requirements of the 
renewable fuels standard.
  This legislation will go far toward strengthening our national 
security, improving our rural communities, protecting our natural 
environment and, ultimately, substituting carbohydrates for 
hydrocarbons.
  Thank you for joining me in supporting ethanol, a domestic form of 
clean, renewable energy.
  Mr. HAGEL. Madam President, I come to the floor this morning to speak 
briefly about an important, comprehensive fuels bill that I will 
introduce today, along with Senators Daschle, Lugar, Johnson, 
Voinovich, Grassley, and others. This bill aims to enhance air and 
water quality, reduce supply and distribution challengers in the 
gasoline market, and increase energy security by expanding the use of 
clean, domestically produced renewable fuels.
  Specifically, our bill follows the advice of the EPA's Blue Ribbon 
Panel on Oxygenates by repealing the Federal oxygenate mandate and 
phasing out the use of MTBE nationwide. It also contains a reasonable 
Renewable Fuel Standard, RFS, which would gradually increase the 
nation's use of renewable fuel to 5 billion gallons a year by 2012. All 
of this while protecting the environmental gains already made by the 
reformulated gasoline program.
  This legislation mirrors the bipartisan fuels agreement in last 
year's Senate energy bill, which gained the votes of 69 Senators. This 
year, we have worked to build an even broader, bipartisan coalition of 
cosponsors.
  Much has happened since the Senate passed its energy bill last year. 
The renewable fuels industry has expanded considerably to meet growing 
demand. The ethanol industry opened 12 new plants last year, with 10 
additional plants now under construction. Sixteen of these new plants 
are farmer-owned co-operatives. By the end of 2003, annual ethanol 
production capacity is expected to exceed 3 billion gallons. In 
December the ethanol industry wrapped up a record year--2.13 billion 
gallons in 2002, up by more than 20 percent over 2001.
  Also, ChevronTexaco announced last month that it will switch from 
blending MTBE to blending ethanol in the southern California market--
making Chevron the last of the large California refiners to make the 
switch to ethanol. This means that more than 80 percent of California's 
federally-reformulated gasoline will be blended with ethanol by May 
2003.
  We should not forget that biodiesel, made primarily from soybeans and 
still a developing fuel technology, has grown enough that it is now 
used in more than 200 State and Federal automobile fleets--using a 20-
percent blend or higher.
  Today, 16 States have already banned MTBE. With State MTBE bans will 
come increased challenges to fuel distribution and supply. The national 
phase-down of MTBE proposed in this bill will help us meet these 
challenges.

[[Page S2460]]

And a national Renewable Fuels Standard with a credit and trading 
program will ensure that renewable fuels are used where they make the 
most sense. In fact, according to a recent analysis, enacting this 
fuels bill would even reduce refiner costs, .2 cents, per gallon 
compared to current law.
  The Standard in our legislation is a fair and workable compromise new 
crafted nearly a year ago--after months of work the American Petroleum 
Institute, the environmental community, the Northeast air directors, 
agricultural groups, DOE, EPA and others. Senator Daschle and I helped 
facilitate those talks. We crafted the language of last year's fuels 
agreement--the same language in this bill.
  This is not a per-gallon mandate. It will not force a specific level 
of compliance in places where compliance may be difficult.
  Our Nation needs a broader, deeper and more diverse energy portfolio. 
Today, less than one percent of America's transportation fuel comes 
from renewable sources. Under this energy bill, renewable fuel use 
would increase to approximately 3 percent of our total transportation 
fuel supply--tripling the amount of renewable fuel we now use.
  Today, America imports nearly sixty percent of the crude oil it 
consumes. This amount is estimated to climb to 70 percent by 2002. 
Almost a fourth of America's oil imports come from the Persian Gulf. 
Last year, the United States imported nearly half-a-million barrels of 
oil a day from Iraq. Overall, petroleum imports cost the United States 
more than $100 billion a year--around 25 percent of our trade deficit.
  This country consumers more than 300 billion gallons of crude oil a 
year--of that, 165 billion gallons is refined into gasoline and diesel. 
Our legislation says that by 2012, not less then 5 billion gallons of 
that 165 billion gallons shall come from renewable sources. By enacting 
this legislation, we would replace 66 billion gallons of foreign crude 
oil by 2012; reduce foreign oil purchases by $34 billion; create more 
than 200,000 jobs nationwide; and boost U.S. farm income by more than 
$6 billion a year.
  As the new Congress prepares to resume deliberations on a new 
national energy plan, I ask my colleagues to seriously consider this 
legislation--which will assist our efforts to modernize the Nation's 
transportation fuel system and address the environmental, energy and 
security concerns for today and tomorrow.
  Mr. DORGAN. Madam President, I am pleased to join my colleagues, 
Senator Daschle, as well as Senator Lugar, Senator Hagel, Senator 
Johnson and others in introducing this bipartisan piece of legislation 
today.
  This bill is extremely important--from an environmental perspective 
and from an energy security perspective.
  This bill increase the use of ethanol as an additive in gasoline. 
That means that we will be increasing the use of renewable sources in 
the fuel that we pump into our gas tanks. Transportation is the sector 
that uses the greatest amount of imported oil. By replacing some of the 
petroleum products in gasoline, we will help reduce our dependence on 
foreign oil. The White House recognizes that: ``America imports 55 
percent of the oil it consumes; that is expected to grow to 68 percent 
by 2025. Nearly all of our cars and trucks run on gasoline, and they 
are the main reason America imports so much oil. Two-thirds of the 20 
million barrels of oil Americans use each day is used for 
transportation.''
  Let me point out the top countries from whom we import crude oil: our 
top supplier is Saudi Arabia. Almost one-third of our oil comes from 
the Middle East--and Iraq is our fifth largest supplier. Venezuela is 
our fourth largest supplier. Their country has been rocked by crisis 
for the last couple of years. So, it is in our best interest to reduce 
the amount of oil we import from these nations.
  This bill is also important because it will phase-out MTBE 
nationally. MTBE has been shown to contaminate water supplies and to 
have the ability to cause potentially harmful side effects. This is 
important. We have attempted to do this here in Congress for several 
years. We should not be exposing ourselves and our children to such 
harmful contaminants. Now is the time to act to remove this from our 
gasoline and from our water supplies. No more delays. I urge may 
colleagues to work with me to move this important legislation in a 
timely manner.
  Today, ethanol reduces the demand for oil and MTBE imports by 98,000 
barrels per day. To me, this just makes good sense: take starch from 
corn or wheat, break it down into simple sugars, then ferment it to 
produce ethanol that can be used for energy. The byproducts can be 
used, too.


                 renewable fuels provision in the bill

  The renewable fuels provision has been carefully negotiated over a 
period of months and years. Now, 20 groups, including the Nation Corn 
Growers Association, Renewable Fuels Association, American Farm Bureau 
Federation, and the National Farmers Union, have sent a letter 
expressing their support for this legislation. 1.8 billion gallons of 
pure ethanol are currently produced each year. This provision would add 
3.2 billion new gallons over a period of years for a total of 5 billion 
gallons by 2012. And, this provision will ensure that the ethanol 
industry continues to grow.
  This translates to a new market for 1.19 billion bushels of corn and 
other agricultural products. This also means new opportunities for 
farmers to invest in value-added processing of a product they're 
already growing. While we are seeing mergers and acquisitions in the 
petroleum and other industries, the ethanol industry is diversifying, 
as farmers invest in local processing.


                              north dakota

  I am excited about the wide range of opportunities ethanol presents. 
One unique opportunity is being created in my home state of North 
Dakota. The aerospace program at the University of North Dakota and the 
Environment and Energy Research Center (EERC) are researching the 
potential for using ethanol as aviation fuel.
  Aviation fuel is the last fuel in the U.S. that still contains lead. 
UND is now teaming up with South Dakota State University and the 
Federal Aviation Administration on a program to get ethanol approved 
and certified to help replace this lead-based aviation fuel.
  And we are working on building E85 (blended ethanol fuel) stations in 
North Dakota.


                           economic benefits

  According to some estimates, the ethanol industry is responsible for 
more than 40,000 direct and indirect jobs, creating more than $1.3 
billion in increased household income annually, and more than $12.6 
billion over the next five years.
  During the past year, industry has built 12 new facilities. Ten new 
facilities are under construction, and dozens more are in the planning 
stages. The ethanol industry adds--directly and indirectly--more than 
than $6 billion to our economy each year.
  I am excited by the opportunities this sector presents for my State, 
the region, and the entire Nation.
  Mr. JOHNSON. Madam President, I am pleased that we are reintroducing 
renewable fuels legislation and that we are taking time today to talk 
about the benefits and importance of this bill.
  I want to acknowledge the extraordinary leadership of Senator Daschle 
and also Senator Byron Dorgan of North Dakota who was on the floor to 
speak to this issue but was called away for another critical 
responsibility and will not be able to be in the Chamber this morning.
  There has been a great deal of discussion about the nation's energy 
situation. The increasing volatility in gasoline and diesel prices, the 
growing tension in the world from the terrorist attacks, and the 
possibility of war with Iraq have affected all of us. The more we 
depend on oil from the Middle East, the more our stability is 
inextricably tied to governments and factions in that region. There is 
a critical need for finding new sources of energy that will move the 
country away from dependence of a natural resource available in 
increasingly volatile regions of the world. Dependence on foreign oil 
in the unstable Middle East and South America makes us less stable. The 
use of domestic, clean, renewable energy sources can increase our 
energy security and increase the nation's security. It must be a 
critical part of our nation's energy strategy.
  To this end, last year I introduced a bill with Sen. Chuck Hagel of 
Nebraska that would ensure future

[[Page S2461]]

growth for ethanol and biodiesel. The bill would create a new, 
renewable fuels content standard in all motor fuel produced and used in 
the United States. Last year, the Senate passed a comprehensive energy 
bill which included the framework of our legislation. Today, ethanol 
and biodiesel comprise less than one percent of all transportation fuel 
in the U.S. This consensus language would require that five billion 
gallons of transportation fuel be comprised of renewable fuel by 2012--
nearly a tripling of the current ethanol production.
  The consensus language was agreed to last year after productive 
negotiations between the renewable fuels industry, farmers' groups, the 
oil industry and environmentalists. Unlike many of the disputes during 
consideration of the energy bill last year, this issue had a relatively 
wide range of agreement. The basis for this agreement is still viable, 
and it is under this framework that we are reintroducing the bill 
today.
  The people of South Dakota and the neighboring states understand the 
benefits of ethanol to the economies of rural communities. Increased 
renewable fuel production lowers our dependence upon foreign oil, 
strengthens energy security, increases farm income and creates jobs. 
The growth of farmer-owned ethanol plants in South Dakota demonstrates 
the hard work and commitment needed to serve a growing market for clean 
domestic fuels.
  Based on current projections, construction of new plants will 
generate $900 million in capital investment and tens of thousands of 
construction jobs to rural communities. For corn farmers, the price of 
corn would rise 20-30 cents per bushel.
  Combine this with the provisions of the bill and the potential 
economic impact for rural states is tremendous. In South Dakota, seven 
ethanol plants are operating to produce approximately 156 million 
gallons per year. Three other ethanol projects are under construction, 
with a combined capacity to produce an additional 180 million gallons 
of ethanol annually. With the enactment of a renewable fuels standard, 
the production in South Dakota now could grow substantially, with at 
least 5000 farmers owning ethanol plants and producing over 500 million 
gallons of ethanol per year.
  An important but under-emphasized fuel is biodiesel, which is chiefly 
produced from excess soybean oil. Soybean prices are hovering near 
historic lows. Biodiesel production is small but has been growing 
steadily. The renewable fuels standard would greatly increase the 
prospects for biodiesel production, benefitting soybean farmers from 
South Dakota and other states.
  While the energy bill was not enacted last year, two-thirds of the 
Senate voted against amendments that would have weakened or eliminated 
the renewable fuels provision. For the first time in recent memory, 
Congress's actions reflect the knowledge that value-added agriculture 
and ethanol production are critical to the nation's energy needs and to 
the future of family-farm agriculture and rural America. The prospects 
for farmers in South Dakota and other rural states have brightened 
considerably. Moreover, we have a unique opportunity to help reduce our 
use of foreign oil and make our nation more stable. I am pleased that 
we are reintroducing the bill and urge its swift passage.
  Mr. NELSON of Nebraska. Madam President, I thank you for the 
opportunity to speak about what is clearly a bipartisan issue. I would 
like to add to what my colleague from Minnesota said about the Fuels 
Security Act offered by Senators Daschle and Lugar on a bipartisan 
basis.
  I am here today to support the Fuels Security Act of 2003. This 
important renewable fuels legislation is one of the pillars for 
economic development for rural--America one segment of the population 
that has lagged behind during the economic surge of the 1990's and is 
suffering under the combined effects of the current economic slowdown 
and a two-year devastating drought which I had the audacity to name 
``Drought David.''
  This legislation is important for rural America. Last year, we 
completed the farm bill--the first part of the economic revitalization 
plan for rural America. For the last several months, we have been 
struggling over the most important short-term economic stimulus plan 
for rural America--comprehensive drought assistance. Though I believe 
what the Senate passed and what we hear will be included in the omnibus 
is insufficient to adequately compensate for the drought, it might 
provide some initial assistance to farmers and ranchers.
  In addition to the farm bill and disaster assistance, I believe we 
need to craft a comprehensive rural development plan that will spur 
investment in agri-business and promote economic activity in the 
agriculture center. We need to consider opening new markets like Cuba--
to ensure American products can be sold and farmers and ranchers can 
earn a living.
  The Fuels Security Act of 2003, is the latest piece of the puzzle.
  It is clear that use of ethanol, as part of a renewable fuels 
standard is a win-win-win situation: a win for farmers, a win for 
consumers, and a win for the environment. That is why I rise as an 
original co-sponsor and strong supporter this renewable fuels 
legislation.
  If passed, the Fuels Security Act will establish a 2.3 billion gallon 
renewable fuels standard in 2004, growing every year until it reaches 5 
billion gallons by 2012. There are many benefits to this legislation.
  It will displace 1.6 billion barrels of oil over the next decade; 
reduce our trade deficit by $34.1 billion; increase new investment in 
rural communities by more than $5.3 billion; boost the demand for feed 
grains and soybeans by more than 1.5 billion bushels over the next 
decade; create more than 214,000 new jobs throughout the U.S. economy; 
and it will expand household income by an additional $51.7 billion over 
the next decade
  It is quite apparent that increased use of ethanol will do much to 
boost a struggling U.S. agriculture economy, and will help establish a 
more sound national energy policy.
  The greater production of ethanol will also be beneficial to the 
environment. Studies show ethanol reduces emissions of carbon monoxide 
and hydrocarbons by 20 percent and particulates by 40 percent in 1990 
and newer vehicles. In 2001 ethanol reduced greenhouse gas emissions by 
3.6 million tons, the equivalent of removing more than 520,000 vehicles 
from the road.
  A choice for ethanol is a choice for America, and its energy 
consumers, its farmers, and its environment.
  Enactment of the Fuel Security Act will help us to reverse our 100-
year-old near total reliance on fossil fuels; a more pressing concern 
than ever given the possibility of military conflict in the Mid East 
and the continuing economic turmoil in Venezuela.
  It was recently reported we are currently exporting about 80,000 
gallons of fuel to Venezuela right now to help in their shortfall 
because of the turmoil in that part of our world.
  I am unabashedly proud of what my home State has accomplished in this 
area. Within the State of Nebraska, during the period from 1991 to 
2001, seven ethanol plants were constructed and several of these 
facilities were expanded more than once during the decade.
  Specific benefits of the ethanol program in Nebraska include: $1.15 
billion in new capital investment in ethanol processing plants. They 
include 1,005 permanent jobs at the ethanol facilities and 5,115 
induced jobs directly related to plant construction, operation, and 
maintenance. The permanent jobs alone generate an annual payroll of $44 
million. And more than 210 million bushels of corn and grain sorghum is 
processed at the plants annually. These economic benefits and others 
have increased each year during the past decade due to plant expansion, 
employment increases, and additional capital investment.
  If each State produces 10 percent of its own domestic, renewable 
fuel, as Nebraska does, America will have turned the corner away from 
dependence on foreign sources of energy.
  And it is possible because ethanol and biodiesel can be made from 
biomass from other than corn or sorghum or other row crops. It can be 
produced from garbage. It can be produced from switch grass and all 
kinds of other biomass.
  When you take a hard look at the facts, you will see that this 
legislation is nothing but beneficial for America. The Fuels Security 
Act is balanced,

[[Page S2462]]

comprehensive, and is the result of the dedication of so many, 
especially Senator Daschle and Senator Lugar.
  So now I ask my colleagues to join me in promoting new opportunities 
for the technologies that will put our Nation and the world's 
transportation fuels on solid, sustainable, and environmentally 
enhancing ground. We owe it to our country now--and to future 
generations--to pass this legislation without any further delay.
  Mr. COLEMAN. Madam President, if I may, in contrast to the very 
partisan tone of the Estrada filibuster and this partisan divide that 
is stopping us from moving forward, I want to spend a few minutes 
talking about an issue in which we come together and perhaps which 
should be a model.
  I am pleased to join my distinguished colleagues, Senator Hagel and 
minority leader Daschle, as an original cosponsor of this landmark 
renewable fuels legislation.
  Senator Daschle is from our neighboring State. We have mutual 
interests. We understand the needs of our farmers.
  We are looking at working together, which I think is such a good 
thing.
  The Minnesota AgriGrowth Council points out renewable fuels like 
ethanol and biodiesel promote the 3 E's: economic development, 
environmental protection, and energy independence.
  Let me talk briefly about the economic development benefit first. I 
ran for the Senate on jobs. The best welfare program is a job. The best 
housing program is a job--creating jobs--and economic development. That 
is what mayors do. That is what they understand is important to moms 
and dads. We get results. There were 18,000 more jobs in St. Paul when 
I left than when I began.
  The legislation we introduce today means economic development--it 
means jobs, revitalization, and new businesses--particularly for rural 
Minnesota.
  Minnesota is a leader in renewable fuels. Not only do the people of 
my State make Minnesota the top 10 among States of nearly every 
agriculture commodity that can be produced in our climate, but 
Minnesota leads the way in renewable fuels, and I am proud of that.
  Today, Minnesota has 14 ethanol plants in production--more than any 
other State in the Nation. Preliminary planning is underway for at 
least a couple of biodiesel production facilities in my State as well. 
So the importance of this legislation to my State and to the health of 
the people in my State and to the lives of our farmers and their 
economic opportunity is clear.
  But, let's take a look nationally to see what every American has to 
gain through this legislation. According to at least one economic 
analysis, the renewable fuels standard we propose today would, over the 
next decade:
  Reduce America's trade deficit by more than $34 billion;
  increase America's Gross Domestic Product by $156 billion;
  create more than 214,000 jobs throughout the entire economy, 
including places important to me like Little Falls and Winnebago, MN; 
and
  increase net farm income by nearly $6 billion per year.
  That the renewable fuels standard legislation we introduce today 
promotes the first ``E'' of the 3 ``Es''--economic development--is 
evident.
  The second ``E'' I want to talk a little about is energy 
independence.
  As a member of both the Governmental Affairs Committee and the 
Foreign Relations Committee, I have had the opportunity, in my first 
month in the Senate, to hear from a number of experts on homeland 
security and on conditions around the world that affect our security. 
And, with this experience as a backdrop, I can say I am not comfortable 
at all with America's level of reliance on oil imports--now at 56 
percent of our supply, and expected to be about 70 percent by 2020 
unless something is done to turn things around.
  Back on September 19, 2001, former CIA Director James Woolsey, former 
Joint Chiefs of Staff Chairman Admiral Thomas Moorer, and former 
National Security Advisor Robert McFarlane all wrote the Senate on this 
very issue, stating:

       One of the critical actions that must be taken now is to 
     advance America's energy security through transportation 
     fuels like ethanol [and] slow the dollars to the Middle East, 
     where too many of those dollars have been used to buy weapon 
     and fund terrorist activities.

  The legislation we offer today takes to heart the admonition of 
Director Woolsey, Admiral Moorer, and Mr. McFarlane by advancing 
renewable fuels to reduce our dependence on foreign oil.
  And, finally, but not least, is the ``E'' for environmental 
protection that got the whole reformulated gasoline ball rolling in the 
first place.
  Ethanol is an important tool for improving air quality in America's 
cities by reducing carbon monoxide, hydrocarbons, NOX, 
toxics, and particulates.
  Proof of ethanol's clear air benefits was seen in Chicago last year 
where exclusive use of ethanol reformulated gasoline helped the city 
attain federal ozone standards--the only area under such standards to 
see this kind of improvement.
  What is more, ethanol continues to be the only liquid transportation 
fuel that can help to reduce global warming. In 2002 alone, ethanol use 
in the United States reduced greenhouse gas emissions by 4.3 million 
tons--the equivalent of removing more than 636,000 vehicles from the 
road.
  These are the 3 ``Es''; economic development, energy independence, 
and environmental protection--all three worthy objectives furthered by 
the legislation we offer today.
  Naturally, there are places here and there where this bill can and 
should be improved, and we can work on it. But, this is a good starting 
place. It is a bipartisan effort. I am pleased to be an original 
cosponsor.
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