[Congressional Record Volume 149, Number 69 (Friday, May 9, 2003)]
[Senate]
[Pages S5985-S5986]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                THE ENERGY POLICY ACT OF 2003--Continued

  Mr. DASCHLE. Mr. President, I know the majority leader also came 
before the Senate this morning to do what I expected he would do 
yesterday. He has laid down the first amendment in the energy debate. I 
want to again commend him for his leadership and involvement with 
regard to the ethanol amendment. The ethanol amendment enjoys broad 
bipartisan support. That was evidenced, of course, yesterday as people 
on both sides of the aisle came to the floor and spoke eloquently and 
with conviction about the importance of this legislation. It is 
important, in part, because of our dependency upon foreign sources of 
oil.
  We use too much imported oil. The more we can become self-sufficient 
and independent, the more we can truly not only help our own economy, 
but create environments within which questions pertaining to our 
dependence will not become key issues as we resolve whatever diplomatic 
or international challenges our country may face.
  Energy independence is a laudable goal and it is within our grasp. 
But the only way it can be achieved is with the creation of renewable 
fuels, the creation of fuels that can be discovered, utilized, and 
created in this country. There is no better example of that than 
ethanol. Ethanol reliance means energy independence.
  Secondly, the environmental issues are clearly at stake as we 
consider the consequences of ethanol. Clean air benefits cannot be 
understated. In 2002 alone--just last year--ethanol use in the United 
States reduced greenhouse gas emissions by 4.3 million tons, which is 
the equivalent of removing more than 636,000 vehicles from the road. 
That is a remarkable achievement. That was in 1 year. If you can 
imagine taking 636,000 vehicles off the road in 1 year, and the effect 
it would have on greenhouse gases if we could do that, that is in 
essence what we were able to create with this increased reliance on 
ethanol--not to mention our opportunity to phase out methyl tertiary 
butyl ether, MTBE, contamination.
  MTBE contamination was also used as an oxygenate to improve 
environmental circumstances when the oxygen standard was passed in the 
early 1990s. We only found later how contaminating and toxic it can be. 
So phasing out MTBE is also a part of our legislative approach, and 
that, too, will have dramatic positive environmental consequences.
  We talk about the economic consequences of ethanol and that, too, can 
hardly be overstated. One in three rows of corn in South Dakota today 
is being used to produce ethanol. The ethanol industry is creating $1 
billion in additional economic impact in my State alone. It means 
higher corn prices. It means prices will increase, according to USDA 
estimates, 50 cents a bushel, about $1.3 billion in additional farm 
income annually once this legislation is enacted.
  The University of South Dakota has stated this proposal has the 
potential to create 10,000 new jobs in our State, bringing in more than 
$600 million annually to the State economy and over 214,000 jobs 
nationally once the RFS is implemented.
  From an economic point of view, in addition to the environmental and 
energy independence advantages, we also have, of course, an 
agricultural advantage: more income for farmers with less reliance on 
farm programs.
  There is a lot to be said for this legislation. I am very pleased, 
after all these years, as lonely as it was when we started, to see this 
kind of broad-based support. I would estimate now more than two-thirds, 
maybe three-fourths, of the Senate would support this legislation. We 
are well on our way to establishing what I view to be an appreciation 
of the importance, the contribution, the impact that ethanol can have 
in energy, in the economy, in agriculture, and in foreign policy.
  That is why I feel as strongly as I do about the amendment, and that 
is why I am pleased to be a cosponsor with Senator Frist and many of 
our colleagues, including the distinguished Senator from South Dakota, 
Mr. Johnson, on this amendment.
  I hope the Senate will act quickly. Let us adopt this amendment. Let 
us ensure, whether it is part of the energy bill or a freestanding bill 
that was reported out of the Environment and Public Works Committee, 
that we will have the opportunity to enact this legislation into law 
sometime this year. We should not wait any longer. It should happen 
this year. It can happen this year. With the broad bipartisan support, 
it will happen this year.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from South Dakota.
  Mr. JOHNSON. Mr. President, I ask unanimous consent to be added as a 
cosponsor to the renewable fuels standard amendment just offered by 
Senator Daschle and Senator Frist.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. JOHNSON. Mr. President, I rise today in very strong support of 
the bipartisan renewable fuels standard amendment and to encourage my 
colleagues to support this critically important provision when it comes 
to a vote.
  Last year, Senator Hagel, my Republican colleague from Nebraska, and 
I worked on a renewable fuels standard for ethanol and biodiesel during 
consideration of the Senate energy bill. We were successful in securing 
inclusion of a renewable fuels standard in the Senate energy bill. We 
were successful on the Senate floor, but as we got to conference with 
the House of Representatives, the entire energy bill wound up not being 
passed and the whole collection of provisions collapsed in the end. But 
we were successful in the Senate Energy Committee last year, we were 
successful on the Senate floor, and I am very optimistic this year that 
we not only will pass a renewable fuels standard in the Senate once 
again but that with newfound interest in the RFS in the House of 
Representatives, I am confident this will ultimately make it to the 
President's desk and become law this year.
  Regrettably, time ran out on us last year during the 107th Congress, 
and yet two-thirds of the Senate voted in favor of a renewable fuels 
standard and against amendments that would have weakened or eliminated 
it.
  Today, ethanol and biodiesel comprise less than 1 percent of all 
transportation fuel consumed in the United States. Out of 134 billion 
gallons of fuel consumed in the U.S., renewable ethanol and biodiesel 
made from soybeans comprise less than 3 billion gallons--3 billion out 
of 134 billion gallons consumed.
  Our amendment, identical to language passed in the Environment and 
Public Works Committee, would require that 5 billion gallons of 
transportation fuel be comprised of renewable fuel by the year 2012.
  The consensus was agreed to last year after productive negotiations 
between the renewable fuels industry, agriculture groups, the oil 
industry, and environmentalists.
  Rural States such as South Dakota can make enormous contributions to

[[Page S5986]]

energy independence throughout our Nation with a renewable fuels 
standard. Thanks to the establishment of six new farmer-owned co-ops in 
South Dakota since 1999, ethanol has enjoyed significant growth in our 
State. We are currently ranked fifth in U.S. production.
  Remarkably, one out of every three rows of corn in South Dakota is 
market bound for ethanol production already. More than 1 million 
bushels of corn are sold annually to produce nearly 400 million gallons 
of ethanol in my home State of South Dakota.
  Around 8,000 farm families are involved in value-added ethanol 
production at one of the eight facilities currently in operation, and 
two more facilities are under construction. Ethanol helps these South 
Dakota families increase their income in three ways.
  First, ethanol plants help spur competition for corn and boost corn 
prices locally. Corn prices include between 8 and 15 cents per bushel 
when an ethanol plant is based in a local market. Second, membership in 
a value-added ethanol co-op yields profits, or dividends, from ethanol 
production which supplements farm income. And third, it creates farm 
jobs in rural communities throughout our State.

  However, most farmers involved with ethanol indicate to me that a 
significant share of their investment thus far in ethanol facilities 
has been, for all practical matters, a faith-based investment. They 
simply have faith that ethanol is right for their investment and right 
for America, but there has been no adoption of ethanol or biodiesel as 
a part of a national energy strategy.
  Adoption of our bipartisan RFS amendment today will give them and 
other producers more than just faith when considering whether to invest 
in an ethanol plant. Our amendment will give producers a rock solid 
commitment that the United States will, in fact, increase the demand 
and the market for ethanol and biodiesel.
  The U.S. energy situation, as we all know, is uncertain, considering 
how volatility in gas and diesel prices, the growing tension in the 
world from terrorist attacks, and how the war in Iraq affected us. The 
more we depend on oil from the Middle East, the more our stability is 
inevitably tied to governments and factions in that region. The use of 
domestic clean renewable energy sources can increase our energy 
security and increase our Nation's security. It must be a critical part 
of our Nation's energy strategy.
  Simply put, adoption of the RFS amendment will help lower our 
dependence on foreign oil, strengthen energy security, increase farm 
income, provide for clean air, and create jobs throughout the United 
States, particularly in the rural communities.
  An important, but underemphasized fuel is biodiesel, which is chiefly 
produced from excess soybean oil. In South Dakota, soybean production 
has increased by a dramatic 200 percent in the last 10 years. Recently, 
biodiesel has emerged as a promising new energy source. RFS would 
greatly increase the prospects for biodiesel production benefiting 
soybean farmers from South Dakota and throughout the Nation.
  I want to ensure the record reflects the influence and the 
extraordinary leadership that my colleague, Senator Daschle, has lent 
to the support of ethanol and a renewable fuels standard.
  For over 20 years, Senator Daschle has been fighting for ethanol. 
When we began this debate, there were times in South Dakota that the 
discussion was about gasohol. There are times when Senator Daschle has 
been jokingly referred to in our State as ``Senator Gasohol.'' His 
leadership was instrumental in creating incentives which led to a surge 
in the demand for ethanol in the early to mid-1990s.
  In the year 2000, it was Senator Daschle again who first introduced 
the concept of a RFS as the next building block for expansion of the 
renewable fuel industry. Today, I am pleased and I am proud to join 
Senator Daschle and many other Senators on a bipartisan basis to 
demonstrate strong support for an RFS.
  In the 20 years or more Congress and States have provided incentives 
to produce ethanol, we have learned a lot of lessons. Tax incentives at 
the State and Federal level provided lifeblood for the ethanol industry 
and helped make the production of ethanol a competitive alternative to 
other fuels. The most aggressive growth spurt for ethanol occurred as a 
result of the Clean Air Act.
  Ethanol production doubled in the 1990s, with 10-percent annual 
growth. In 1990, the year we passed the Clean Air Act, the United 
States produced about 800 million gallons of ethanol. By 2000, we 
produced 1.6 billion gallons of ethanol. Coincidentally, the most 
recent explosion in ethanol development took place as a result of the 
anticipation that Congress would establish an RFS. The renewable fuels 
standard was first introduced in 2000 and production since that time 
has dramatically expanded from 1.6 billion gallons to approximately 3 
billion gallons this year. Once again, ethanol production has doubled. 
At this stage, enactment of an RFS is the single most important market 
driver for ethanol that we can contemplate.
  What lessons have we learned? If 8,000 farm families in South Dakota 
invested their hard-earned money in the development of eight ethanol 
plants without an RFS, we could just imagine how many more producers 
South Dakota and across the entire Nation will be willing to invest in 
renewable ethanol or biodiesel production if we adopt an RFS.
  Ethanol plants are being constructed in record time with larger 
capacity and more farmer investor financing than ever before. The most 
impressive expansion in capacity has been right in my home State of 
South Dakota. Passage of an RFS will ensure greater capacity expansion, 
a dramatic stimulus to the economic growth of rural America. It will 
create jobs and it will increase our energy security.
  I strongly encourage my colleagues to adopt the bipartisan RFS 
amendment being offered by Senator Daschle and Senator Frist today. I 
urge support for this amendment.
  I yield the floor.
  Mr. STEVENS. 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. DASCHLE. Mr. President, I ask unanimous consent the order for the 
quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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