[Congressional Record Volume 150, Number 103 (Thursday, July 22, 2004)]
[Senate]
[Pages S8757-S8758]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DASCHLE (for himself, Mr. Lugar, Mr. Hagel, and Mr. Nelson 
        of Nebraska):
  S. 2769. A bill to provide that imported ethanol shall not count 
toward satisfaction of any renewable fuel standard that may be enacted; 
to the Committee on Environment and Public Works.
  Mr. DASCHLE. Mr. President, recent media reports indicate that at 
least two companies are actively considering plans to import Brazilian 
ethanol into the United States duty-free through the Caribbean Basin. 
These reports have generated understandable anxiety within the farm 
community.
  Cargill, the Minnesota-based agri-business giant, has confirmed that 
it is considering importing 63 million gallons of Brazilian ethanol 
into the United States each year. And it has been reported that 
Chevron-Texaco, one of the largest oil companies in the United States, 
is planning construction of a plant that will enable it to import 50 
million to 100 million gallons of ethanol.
  Farmers in South Dakota and throughout the Midwest are concerned that 
such import schemes could threaten the growth of the domestic ethanol 
industry and undermine our effort to establish ethanol as a major 
domestic energy source. They should be concerned. These import plans 
would establish a dangerous precedent for other importers and 
dramatically undercut the ability of the pending Renewable Fuels 
Standard to enhance our national energy security and boost farm income.
  The key to the next growth spurt in the domestic ethanol industry is 
bipartisan legislation I wrote with Senator Dick Lugar (R-IN) that 
would set mandatory annual production targets for ethanol for the next 
10 years. Senator Lugar and I proposed the Renewable Fuels Standard, or 
RFS, 4 years ago as a means to grow the domestic ethanol industry in a 
way that both encourages investment in new community-sized ethanol 
facilities and expands markets for farmers. We remain hopeful that this 
proposal will clear Congress before adjournment this year.
  Under our proposed RFS, domestic ethanol demand would grow from 3 
billion gallons per year in 2004 to more than 5 billion gallons in 
2012, providing ethanol plants and farmers with a steady growth 
schedule that encourages investment in this domestic industry. This RFS 
would create over 214,000 jobs, increase farm income by $1.3 billion 
annually, and save the U.S. $4 billion in imported oil each year.
  Plans to import ethanol threaten these benefits by injecting an 
element of market uncertainty into the RFS discussion that could dampen 
investment in community-sized ethanol facilities. Ethanol importation 
would put the producers of Brazilian sugarcane in direct competition 
with American corn growers. That is why today Senators Lugar, Hagel, 
Nelson, and I are introducing legislation to clarify that ethanol 
imports will not count toward the RFS targets. This bill will ensure 
that farmers and domestic ethanol investors will get the full benefit 
of the RFS, and it tells Cargill and Chevron accountants not to count 
on the new demand created by the Renewable Fuels Standard to justify 
any scheme to import ethanol.

[[Page S8758]]

  I understand that corporate executives feel an obligation to their 
shareholders. My obligation is to South Dakota farmers, ethanol 
producers, and motorists who view increased ethanol demand as a means 
to establish greater control over their economic and energy future.
  I have fought my entire public career against outright opposition and 
indifference from the giant corporate interests whose balance sheets 
don't consider the value-added contribution of local economic 
development. This situation is no different. As a result of our 
efforts, Chevron won't get to import as much oil and refine and sell as 
much high-priced gasoline as they may like, and Cargill won't get to 
import ethanol and compete against South Dakota producers.
  The RFS program is designed to stimulate domestic production and 
enhance U.S. energy security, not to create a market opportunity for 
foreign ethanol. The bill I am introducing today will help make sure 
that rural communities are able to attract investment capital to 
produce clean burning energy, create quality jobs for their kids, and 
expand local tax bases to accommodate better schools and community 
services.
  Mr. President, I ask unanimous consent that the text of the bill and 
additional material be printed in the Record.
  Mr President, I ask unanimous consent that additional material be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2769

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. DISQUALIFICATION OF IMPORTED ETHANOL FOR THE 
                   PURPOSE OF ANY RENEWABLE FUEL STANDARD.

       For the purpose of any renewable fuel standard that may be 
     enacted after the date of enactment of this Act, ethanol that 
     is imported, or that is derived from any matter that is 
     imported, shall not count toward satisfaction of the 
     renewable fuel standard.
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