[Congressional Record Volume 151, Number 105 (Thursday, July 28, 2005)]
[Senate]
[Pages S9255-S9273]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ENERGY POLICY ACT OF 2005--CONFERENCE REPORT
The PRESIDING OFFICER. Under the previous order, the Senate will
proceed to the conference report on H.R. 6, which the clerk will please
report.
The legislative clerk read as follows:
The Committee of Conference on the disagreeing votes of the
two Houses on the amendment of the Senate to bill (H.R. 6),
to ensure jobs for our future with secure, affordable, and
reliable energy, have met, have agreed that the House recede
from its disagreement to the amendment of the Senate, and
agree to the same with an amendment, and the Senate agree to
the same, signed by a majority of the conferees on the part
of both Houses.
The PRESIDING OFFICER. The Senate will proceed to the consideration
of the conference report.
(The conference report is printed in the proceedings of the House in
the Record of July 27, 2005.)
The PRESIDING OFFICER. There will now be 3 hours of debate equally
divided.
The Senator from New Mexico.
Mr. DOMENICI. Mr. President, I yield myself 10 minutes.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. DOMENICI. Mr. President, it is obvious that I am two things
tonight. First, I am very happy and I am very tired. I do not know
which one I am more of, but I am both. I am sure there are many who
think differently than I. I hope in the Senate there is an overwhelming
number who think as I do. There will be some who do not. But after 6
years of effort in the Senate, and for a time period going back about
15 years, we have not had an energy policy program of any significance
for the United States of America. When I say 6 years, we have been
struggling for 6 years to get a current one, and 4 of those years we
have produced them and they have failed. I have not been part of all of
that, but I left the Budget Committee, the Senate might recall, after
many years, with 2 years remaining to be there. That would have made my
30th year on the Budget Committee, and I still would have been
chairman. I left it because this would be a nice challenge, and I
thought maybe during the 6 years, as chairman of this committee, I
might be party to putting together a bill that might do something about
America's energy future.
Everybody should know that the Senator from New Mexico knew that we
would not do anything for tomorrow, nothing much. We would not have any
answers for people who said, what are you going to do tomorrow morning
or next week on the gasoline prices? But I did know that we had a
chance of doing something that we could come to the floor and say
within 5 to 10 years this bill will create jobs, job security, and
clean energy.
Now, if that can be done in the complicated maze that we call the
energy policy of the United States--and let me repeat, the reason that
we can say to Americans that they have more jobs, they will have job
security and have cleaner energy being produced, I almost asked, and I
will, who could ask for anything more? I think that is a song or
something, but who could ask for anything more?
So I start by saying I was very lucky today. I got a call from a
reporter for the Albuquerque Tribune. I do not know him very well, but
I speak to him occasionally, and I say to my friend from Tennessee, he
asked me a neat question. He asked: Senator, people are talking about
and maybe nitpicking this bill, and I want to ask you, what do you
think things will look like in America with reference to energy 5 to 10
years from now?
That was a terrific question because it permitted me to open my
remarks tonight the way I should have over the last couple of months.
For once, the Congress is going to do something important from which we
as a Nation will benefit, not tomorrow but in the next 5 to 10 years.
Certainly, we will begin to feel it in a big way within the next 5 to
10 years. One might say therefore that we could have put most of it
off, and we probably would have eked along and would have had some
difficult times, but we could have said, it will work out. But what we
have done is to make sure that where we have the power, we have done
something to make it better.
I repeat, energy is the reason we have jobs. Energy is the reason we
have warm homes, electricity, automobiles, everything we look at,
humankind-made movement and activity, based on energy use.
That means it is pretty important that we do it somewhat right. Some
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may say it will all work out. This is a great, powerful nation,
everybody will wiggle and do this and do that and it will come out.
Well, believe me, after a year and a half of learning, I think it would
have been a real risk for America to say it will all work out.
What we have done is very complicated. It is a lot more than people
speaking about gasoline prices tomorrow morning. It is a lot more than
that.
So 5 to 10 years from now, we ought to look back and ask: Did this
legislation make a real difference?
I am going to start by saying something nobody cares about when they
lobby us, but I am going to say that we are going to use less energy
per person, per adult, per unit of our economy, sometimes called GDP,
because of the efficiency and conservation provisions here than we
would have without it. That means simple things, believe it or not, in
an energy bill, such as the appliances in our kitchens, the motors used
in manufacturing plants, the buildings we live in, and the houses we
live in will be far more efficient and use far less energy 5 to 10
years from now than today. For everything we use less of, we need to
burn less coal or produce less energy or electricity or import oil
less.
More of our electricity will come from renewable energy in 5 to 10
years, such as solar, biomass, wind, landfill gas, waste. All kinds of
things that can produce energy in that manner will be coming on board
or be on board.
We have streamlined the tax provisions. The licensing processes for
clean technologies like geothermal have been streamlined so we will get
whatever we have instead of letting it be tied up forever.
Then we are going to be making great strides toward reducing the
carbon intensity of our economy. It is the carbon intensity of our
economy that causes significant pollution, and for many it is a source
of global warming.
My colleagues do not have to believe that to vote for this, but what
I am saying is that for those who do--and I am one--this bill will move
us forward so that 5 to 10 years from now we can be saying we may have
technology that will go after that carbon. One will be new nuclear
powerplants. I say to the Senator from Idaho, if a nuclear powerplant
cannot be built in America after this bill is signed, then I think the
Senator and I, who have been ardent, devoted fans, will say it cannot
be done. I think the Senator will agree with that. Everything that can
be done reasonably will be there. The uncertainties will be eliminated.
That which frightens investors will be eliminated. The other things are
all in place.
With reference to coal, we will have provided incentives and tax
relief so that new technology will be developed to take carbon out of
the coal that is burned and, yes, if we use the outside of my years, in
10 years we may, I say to the Senator from Tennessee, have found a way
to sequester the carbon and indeed be on the way to being able to use
our biggest resource, to wit, coal, without atmospheric damage, global
damage, and with much cleaner effect. This bill might make that happen.
As I say, when people think of the Energy bill, they think of cars,
automobiles, but the electricity grid of the country--how many people
on our committee thought we were going to learn about the electricity
grid, such as when eastern America went black, but we found out. We
have a great electricity system.
When the blackout came, some people called this an ancient system.
Some called it a one-horse system. No, it is the most refined. The
problem is that the system was not tied together properly, and it did
not have mandatory requirements for safety. So there were some good,
some not so good. That transmission grid will be far more reliable
because we have put on the grid owners mandatory standards for
operating that grid. So I would say you will not have one of those
after this bill gets implemented. That would have been good enough to
pass a bill, but that is just a little part of the bill--one or two
pages.
The PRESIDING OFFICER. The Senator's time has expired.
Mr. DOMENICI. I ask unanimous consent for 5 additional minutes. I ask
Senator Bingaman, would that be all right?
Mr. BINGAMAN. That is fine. Go ahead.
Mr. DOMENICI. In addition, we will be building new transmission to
move electricity around the Nation. When I say ``we,'' don't think the
Government is going to do it. We are just going to make sure we give
the incentive to get it done. Transmission to move electricity around
the Nation, where it is needed the most--that is going to make our
consumption more efficient.
This bill repeals an ancient law. Some people wonder why it even
mentioned it because it has a funny name and they would say what in the
world does it have to do with energy, but it is called P-U-H-C-A,
PUHCA. It is from the times when we had our Great Depression. It made
it at least more difficult to get money invested in electricity and
utility companies than it was in other enterprises. We have repealed
that. We have made some provisions that mergers will not be damaged.
But this should bring much more capital investment into the utility
companies that make up this powerful institution, this entity called
the grid of the United States.
Most of us are aware of another thing, which the distinguished
Senator, a new Member of the Senate and a new member of the committee,
the Senator from Tennessee, Lamar Alexander, has put much in the public
eye when he introduced a bill about natural gas. One of our biggest
problems, and we surely ought to be as worried about it as we are about
the price of gasoline tomorrow, is our dependence upon imported natural
gas. It is such a terrific product, from the standpoint of our ambient
air, and it used to be so cheap, as everybody here knows. But what
happened is we used it for everything. Now, as we get in trouble with
global warming, everybody who builds a plant uses natural gas. Not that
it does not produce some carbon, but far less. And the price goes up.
So it looks as if America, which is paying the highest price of any
industrial nation in the world for natural gas, is about to put itself
out of business. We could lose the fertilizer business, the plastics
business, many manufacturing companies. They are already going
overseas. People will come up here and blame free-trade agreements, or
low pay overseas. That is not so. We do not have enough natural gas to
keep the price steady or bring it down. We must have liquefied natural
gas from overseas. It is terrible to admit it. I wish I were here
saying we don't. We do. In the next 25 years we will have a crisis if
that doesn't occur.
We have modernized, streamlined, eliminated unnecessary delays in the
ports we will be bringing to America that will be the source of
distributing LNG. We have eliminated the unnecessary delays. That is
terrifically important. Of the five most important things, one might
say that would be one of them because we might hit 8, 10, 12, 15--one
study says 23--new ports will be needed to use LNG in inland America.
In other words, you locate them and then the gas can be put into
pipelines and delivered to America's users. We permitted that to be
done with more dispatch.
For the first time, and we know this, since Americans began a love
affair with the car, we are going to put in place an ethanol program.
I ask for 5 additional minutes.
People used to laugh at it. Let me put it this way. It is not too
shabby, to put America's agricultural industry to work making fuel for
vehicles. Some used to say that was foolish. It might have been when
crude oil was $5 a barrel, or $10. But it certainly is a good
investment when crude oil is this expensive because all you are doing
is trading the investment in ethanol--plants, cement, steel, thousands
of jobs, agricultural revitalization--every dollar you put in that is a
dollar you didn't give to the Saudi Arabians or you didn't give to
those who are selling us oil. You spent it here. We have a major new
program, 7.5 million gallons mandated out here in the future. So that
should be very helpful, in terms of jobs and helping with our
importation.
We also gave significant credits for hybrid automobiles. I think we
all know we had that. We doubled it. We know people want them now. But
we still put it in, the tax writers put it in, and we hope the
manufacturers will see the demand and get more on board quickly. We
think that was a contribution.
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I think overall we are going to try to produce as much of our energy
domestically as possible. To do that we have streamlined the permitting
processes where we can. For instance, the Senator from Colorado is on
the Senate floor, and the Senators from Utah have been interested--we
have a fantastic oil shale research and development program and provide
leasing to see if we, one of these days, could implement the abundant
oil resources from oil shale. Nobody knows if we could ever work that
economically. If we could, we would not need any imported oil. We have
more oil locked up in oil shale than America would use over 200 years.
We just have to find a way to convert it. We are close. We are going to
push that.
We are deeply divided on global climate change. We have had a couple
of votes. I will not go through them. But the legislation we are doing,
while it does not address a global warming tax, will do more to develop
and deploy a new generation of clean technology that will make our
consumption cleaner and more environmentally friendly. If we ever do
achieve a limit--say that, make the limit there--we may, indeed, have
ready the technologies that could do it. Right now we are just saying,
Do it. That is why Senator Craig gets up and says, How? Right? I am
speaking for him--but how? Put everybody out of business?
No. New technology we are going to try to get developed will clean
the coal--take the carbon out of it, I should say. These are the kinds
of things that are in this 1,200-page document.
I want to close. I am a pretty experienced fellow around here. I want
to say that I have never worked in the process on a difficult bill
where there has been more openness and inclusiveness in my 32 years.
Every step of this process this Senator has worked with the other
Senator from New Mexico to ensure that we have a bipartisan bill.
That doesn't mean that Senator Bingaman likes every provision. It
doesn't mean that I like every provision. But nobody can say that
anything was done in one closed back room, shoved down anybody's
throat, or done without staff, excellent staff, on both sides working
on it. I am thankful. Because of that, Senator Reid joined our leader
and let us get this bill to the floor.
We took 2 weeks. Heretofore we took 6 weeks, and still had 200
amendments left. We didn't get a bill, a real bill.
Believe it or not, Representatives Dingell and Barton met. Ourselves,
we spent 20-plus hours as a foursome. Then we had 3 days, 5 open days
of conference meetings with amendments being offered. Every conferee
could offer amendments. They were voted on, some won, some lost--
honestly most lost, but that is the way it is. They voted.
The last of those conferences ended a couple of nights ago at 2:30 in
the morning. I probably was more tired then than now, obviously. Maybe
not as happy because I didn't know the product. But I think I know the
product now. It is finished. It is a good product. It should pass
overwhelmingly.
I urge Senators to consider that this bill, and the future that it
envisions, far outstrips anyone's individual parochial concern. I hate
to say that because nobody is going to say that is why they vote
against it. Nobody is going to say I didn't get some project or some
one theme. But I think if you are looking at what might be good down
the line--which maybe we ought to do more of--you ought to vote for
this.
One last comment. There will be a point of order made, and tonight I
am going to say while everybody is around, or a few are: You heard a
lot of numbers about what this bill costs. Please understand the point
of order has to do with none of that. The point of order has to do with
a simple thing. This committee was given $2 billion to spend, in direct
spending, nonappropriated money. When all the work was done we
estimated it was $2.2 billion--two billion two hundred million--not
billion--$200 million. You know, the budget is hundreds of billions.
This is $200 million. I don't even know why a point of order should be
made.
I am going to cheat and tell you, sometimes when I was budget
chairman we rounded numbers to 100. I am confessing that belatedly.
Maybe we would have rounded this one to 200. Anyway, that is what we
are going to vote on. I hope, even if you are against the bill, you
will let us vote whether or not the country should have this.
With that, I thank the Senate, thank the Chair, and most important,
thank the Senators here. For the Republican Senators, as soon as
Senator Bingaman is through I will start allocating on our side 5, 7
minutes, whatever you each would like. Senator Bingaman will use what
he wants and allocate the rest. He has one Senator. We will stay as
long as you like.
Thank you all for listening.
The PRESIDING OFFICER. The Senator from New Mexico.
Mr. BINGAMAN. Mr. President, let me say how pleased I am that we are
able to bring back to the Senate a conference report on energy policy
that is truly a bipartisan consensus document. This bipartisan
consensus had its beginnings earlier this year in our committee, the
Senate Energy and Natural Resources Committee, where the chairman,
Senator Domenici, my colleague from New Mexico, reached out to those of
us on the Democratic side and pledged to work in good faith to bring to
the Senate a comprehensive Energy bill.
We readily accepted that invitation and we had a very open and
bipartisan committee process. The result of that process was a bill
that was recommended to the Senate by the Committee on Energy and
Natural Resources by a vote of 21 to 1. On the floor of the Senate when
this bill was first being considered, we continued to work together in
that open and bipartisan process. The result was that the Senate as a
whole passed the Energy bill by a margin of 85 to 12.
In conference, my colleague from New Mexico, Senator Domenici, was
adamant that we use an open and a bipartisan process there as well, and
include House Democratic Members and staff who had not been included in
the past in that same process.
I congratulate Senator Domenici on the passage of the resolution that
we adopted earlier this evening to designate this the Domenici Energy
Policy Act of 2005. He successfully persuaded the chairman of our
conference, Congressman Joe Barton, of the wisdom of proceeding in an
open and bipartisan manner, and it proved to work very well. The
bipartisan and bicameral conference committee staff was able, in short
order, to resolve many of the technical issues that are so important to
get right in this complex area of legislation. As they encountered
issues that were unresolvable by the staff and needed guidance from
members, Chairmen Barton and Domenici and Ranking Member Dingell and I
were able to work together to forge compromises that we thought could
be recommended to the entire conference. Those compromises, in fact,
were embraced in almost all cases by our respective colleagues.
The result was a conference report that was signed by 13 of the 14
Senate conferees. That conference report is 1,724 pages in length. I do
not think you can judge the quality of legislation by the size of it,
but I do think the size of it indicates the comprehensiveness of this
legislation and the complexity of it. The conference report was adopted
earlier today in the House of Representatives with 75 House Democrats
voting for the legislation, led by Congressman John Dingell.
Most of us came away from the conference with many provisions that we
were happy to have in the final conference report and some provisions
that we reluctantly had to give up on. I, for example, am very sorry
that the bill before us does not contain the renewable portfolio
standard which would require utilities to produce a percentage of their
electricity from renewable sources. I know Chairman Barton is
disappointed that he was not able to get a number of his priorities
agreed to in the conference. But the nature of a good conference is
that it is a give and take and not everything ultimately can be agreed
to. So compromise is the order of the day.
The result of this conference is a bill that has many more bright
spots than flaws and a bill that deserves passage by the Senate and the
signature of the President. I will mention a number of the bright
spots, and then I will acknowledge some of the flaws and gaps
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that are contained in the conference report.
The conference report has strong provisions for increasing energy
supplies from a number of sources. As I have often said, increased
domestic energy production is one of the four key elements of sound
energy policy. We have good provisions for producing oil and gas in an
environmentally responsible way, for unlocking the untapped energy
potential on Indian lands, for relicensing of hydroelectric dams, for
improving geothermal leasing on Federal lands, and for opening a path
to renewable resources in offshore environments. We are making a major
push in the area of energy from coal toward new technologies that have
better environmental characteristics and that will be adaptable to a
future in which we may want to capture and sequester carbon dioxide.
The conference report has strong provisions for increasing energy
efficiency. Over a dozen new appliance efficiency standards are called
for under this act. The Federal Government's own energy efficiency will
be enhanced through the strengthening of the Federal Energy Management
Program and through extension of authority to enter into energy-saving
performance contracts.
The conference report expands authorizations both for the Low Income
Home Energy Assistance Program and weatherization and State energy
programs.
The conference report has perhaps some of the strongest provisions in
the area of protection of energy consumers. Both the electricity and
natural gas provisions of the conference report contain broad new
provisions to ensure market transparency and to prohibit market
manipulation. In the area of electric utility mergers, we have expanded
the jurisdiction of the Federal Energy Regulatory Commission over
mergers involving existing generation plants; that is, plants that are
in existence at the time the merger takes place. We have also created
new requirements in the Federal Power Act for special scrutiny for
possible cross subsidization as a result of mergers. Before the Federal
Energy Regulatory Commission can approve a merger, it must find that
any possible cross subsidization is actually consistent with the public
interest, which I think will prove to be both a flexible and a strong
protection for ratepayers and for workers and for other persons who
should be protected if we are being consistent with the public
interest.
The conference report authorizes a broad range of research and
development and demonstration and deployment activities for new energy
technologies that will help us toward our energy future. It couples
them with energy tax incentives and a comprehensive new approach to
loan guarantees at the Department that will help these technologies
over the final threshold into commercialization. This latter part of
the bill is a particular accomplishment of Chairman Domenici that I
think will pay off in this country for years to come.
The conference report also will result in major changes in our
national slate of transportation fuels. It requires that we reach a
target of 7.5 billion gallons of renewable fuels by 2012. It sets a
path forward for the development and commercial introduction of ethanol
made from cellulosic biomass which promises to have a profound impact
on our ability to manufacture and use renewable fuels in the future.
Our work on fuels and fuel additives in this conference report is not
complicated by the issue of developing safe harbors for product
liability claims for any fuel additive, whether ethanol or MTBE.
Resolving this dispute involved including a provision that, when it
first appeared in the publicly released base text of the conference
report, caused some confusion. I know that some Members may want to
address this issue in this debate. The best explanation, though, of the
intent of this provision was given by Chairman Barton himself in the
course of the final public meeting of the Energy bill conference Monday
night. He did it in the course of an exchange with Congressman Bart
Stupak of Michigan, who was about to offer a clarifying amendment to
this provision in the conference report. Based on the understanding
conveyed in that exchange, Congressman Stupak decided that he did not
need to offer his intended amendment.
Since that exchange was crucial to how this provision was dealt with
in conference, I ask unanimous consent that the transcript of that
exchange be printed in the Record following my remarks.
The PRESIDING OFFICER. Without objection, it is so ordered.
(See exhibit 1.)
Mr. BINGAMAN. Mr. President, there is much more that I could say on
behalf of the energy conference report that is before us, but I want to
allow time for others to speak as well. It is worth acknowledging that
in the process of conferencing with the House, we had to yield to their
strong demands and desires in a few areas. Some of those provisions, in
my view, were misguided. They include some weakening of environmental
laws and some additional subsidies to energy industries that are
probably unnecessary. I am sure that some of my colleagues will explore
those problems in more detail. But these flaws, serious as they are, do
not, in my opinion, lead to a conclusion that this bill should not be
enacted. On balance, this is a good bill for the country and the best
Energy bill this Congress is going to produce. We should enact it into
law.
To the extent that there are gaps in the bill, that there are
subjects that we should have covered and have not adequately covered,
we need to look to the future. It has taken Congress over 4 years to
craft this Energy bill. The Energy bill prior to that was the Energy
Policy Act of 1992, passed 13 years ago. When we complete this bill, I
don't believe we have the luxury of waiting another 13 years to pass
the next Energy bill. The energy security needs of this country that
are not addressed in this bill will not wait for another decade for
attention. The threats posed by our dependence on oil imports or by
global warming will continue to face us and will continue to grow as
issues. This bill does maintain and increase our investment on a range
of clean energy sources, but it does not contain a critical mechanism
that was contained in the Senate Energy bill; that is, the renewable
portfolio standard that I referred to earlier.
This bill has positive and helpful measures to increase domestic
refining, but consumers will still face burdens at the gas pump. There
is critical work to be done on these issues, but I believe the positive
message coming out of this bill is that we have developed a truly
bipartisan way to move forward on those issues in the Senate and the
House of Representatives. I think that I speak both for myself and for
my colleague who is chairman of the Committee on Energy and Natural
Resources in saying that we intend to work together both in the short
term and in the long term to address the issues that need additional
attention in this general legislation. He has my pledge to continue to
work in this Congress to advance the ball and to get to a finish line
on proposals that we could not achieve closure on in the context of
this bill.
Let me just mention three of those. First, flexible mandatory
measures to address global warming. We had an excellent hearing which
Chairman Domenici chaired in the Energy Committee. In fact, during the
time that this bill was being considered in conference, time was taken
out to have this hearing on the issue of global warming. I believe it
was a very useful hearing. Chairman Domenici stated that it was the
first of several that we may be able to have to better understand that
issue and see if a consensus can be reached on a path forward in
dealing with it.
Second, doing more to tap the potential of renewable energy. Again, I
believe that more can be done there, and I hope we can revisit that
issue before this Congress adjourns.
Third, we need to continue to focus on oil savings. The United States
imports more than 65 percent of our oil, and the Energy bill will not
reduce those imports significantly. Reducing oil consumption will make
us less dependent on foreign oil and ultimately save Americans money at
the gas pump. Although the oil savings approach that we took in the
Senate bill did not win acceptance by the House of Representatives,
that is a concept that continues to hold promise as a way of addressing
the problem, and we need to
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revisit that issue in legislation, in my view, as soon as we possibly
can.
We worked hard to create the Energy bill compromise before us today.
We should enact that compromise and move forward aggressively to ensure
that it is implemented rapidly by the executive branch of our
Government. If there are negative consequences to what we have enacted,
then we can document those and work to correct those errors. If there
are topics we need to address more effectively, then we certainly can
do that.
Again, I congratulate my friend and colleague on his accomplishment.
But securing our energy future in some sense is a job that is never
done. I look forward after we have had time to rest and reflect on what
has been done to again begin the effort to address policies that will
increase our energy security, reduce our dependence on foreign oil,
provide for more use of clean energy, lower gas prices, and deal with
the emissions that are leading to global warming.
Again, I congratulate my colleague and all members of the conference
and all Members of the Senate for the constructive approach they have
taken to the development of this legislation.
At this point, I yield the floor.
Exhibit 1
Chairman Barton. Are there other amendments from the House
conferees to Title XV? Mr. Stupak.
Mr. Stupak. Thank you, Mr. Chairman. I have an amendment at
the desk, but if I may, before I offer it, I would like to
ask you, as chairman, a couple questions on Section 1504, if
I may?
Chairman Barton. The gentleman is recognized.
Mr. Stupak. Mr. Chairman, I would like to thank you for
your willingness to come to a consensus on the MTBE. I know
it has been a difficult couple days, and I am trying to get
this thing resolved and I----
Chairman Barton. Well, I am not consenting, I am just
admitting that I don't have the votes in the Senate.
Mr. Stupak. Well, your willingness to work with the
conference committee.
Chairman Barton. I know when to fold them and this is one
time you got to fold them. So what was the question?
Mr. Stupak. Well, in light of that, Mr. Chairman, I just
want to be clear about one of the compromise provisions
that's been inserted into the amendment and this is Section
1504, called Claims Filed After Enactment. Can the chairman
clarify for us what this language means and is intended to
do, this Section 1504?
Chairman Barton. If you will suspend just briefly.
Mr. Stupak. Yes, sir.
Chairman Barton. The Section 1504 is a negotiated section
between the House and the Senate, that in lieu of the base
text language in the House bill on MTBE, we put in a section
that is permissive, that for prospective claims, defendants
may request that they be consolidated in a Federal court as
opposed to a State court. It is a permissive, not mandatory,
thing.
Mr. Stupak. So in that case, then it can remain in the
State courts. So this provision does not in any way give the
Federal courts a new subject jurisdiction over MTBE cases?
Chairman Barton. The base text that's before the conferees,
on existing MTBE lawsuits, changes nothing on prospective
MTBE lawsuits, that is, lawsuits that have not yet been
filed.
Mr. Stupak. Correct.
Chairman Barton. It gives the defendant in the lawsuit, the
prospective lawsuit, if it were to be filed, the right to
request that the lawsuit be sent to a Federal court.
Mr. Stupak. Or it could remain the State court if----
Chairman Barton. Well, it just gives them right to request
it. Now I am not an attorney, so I am not--but that's what
the section does.
Mr. Stupak. I just want to make sure that the Federal
courts don't have an exclusive right to try these cases and
it is my understanding they would not, based upon----
Chairman Barton. Well, of the existing cases that have
already been filed, they are in the hundreds, all but 12 are
in Federal court.
Mr. Stupak. Correct.
Chairman Barton. They are 12 that are in State court.
Mr. Stupak. So it is really----
Chairman Barton. I don't think this section is unduly
restrictive or adverse to the current situation.
Mr. Stupak. So Section 1504, then, is it fair to say, gives
those involved in future MTBE litigation or disputes, the
discretionary ability to remove their case to Federal court?
Chairman Barton. No, it gives them the right to request it.
Mr. Stupak. Okay.
Chairman Barton. That's all.
Mr. Stupak. Discretionary. They don't have to. It is within
their discretion to go to Federal court, if the defendants so
choose.
Chairman Barton. That's correct.
Mr. Stupak. And then it is up to the judge whether or not
the case is properly there or remanded back to State court?
Chairman Barton. That's my understanding.
Mr. Stupak. So we are not conferring a new substantive or
subject matter jurisdiction over these cases?
Chairman Barton. Not to my knowledge.
Mr. Stupak. Thank you, Mr. Chairman. With that, I will not
offer my amendment.
Chairman Barton. We appreciate the gentleman.
The PRESIDING OFFICER. The Senator from New Mexico.
Mr. DOMENICI. I know Senator Kerry wants to speak, but I would like
to ask that we may have time to arrange all of this right now. My next
speaker is Senator Craig. I would like to yield 5 minutes to him and
then we go to somebody on your side.
Mr. BINGAMAN. Senator Kerry will be the first Senator on this side,
followed by Senator Wyden. So why don't we go back and forth, if that
is acceptable.
Mr. DOMENICI. I might ask the Democrat side, since we have two
Senators with 5 minutes each, would it be fair to say we go back and
forth with 5 minutes?
Mr. KERRY. Under the order, I have 30, and I intend to use it.
Mr. DOMENICI. You have 30.
Mr. WYDEN. I have 15 under the agreement.
Mr. KERRY. I don't want to be limited to 5 minutes.
Mr. DOMENICI. I am not going to limit you. You have an order. I am
just talking about sequence.
Mr. KERRY. I thought you said limited to 5 minutes.
Mr. DOMENICI. I did. I am wrong, so I am telling you you have 30; you
are going to get 30. It is just a question of when.
Mr. KERRY. I am happy to go back and forth. That is the way we have
always done it.
The PRESIDING OFFICER. The Chair will advise under the previous order
as the Chair recollects it, the Democratic side set up specific times
for their members while on the Republican side 90 minutes was allocated
but not allocated in any definitive way.
Mr. DOMENICI. So what we are saying is the Senator from New Mexico
can speak for 90 minutes. I don't want to do that. I want to let my
Senators speak, so I would like to change that. If we don't change it,
I will speak for 90 minutes.
Mr. CRAIG. The Senator was to allocate 90.
Mr. DOMENICI. I know I was. I would like to allocate if I could. If
Senator Kerry is going to speak 30 minutes, I would like to have
Senator Craig and Senator Thomas speak for 5 minutes each. That is 10
minutes. And then we go to Senator Kerry for his 30. Then we come back
to Senator Alexander for his 5, and then we go back to Senator Wyden
for as long as he would like.
Mr. WYDEN. That will be very adequate. I thank the Senator.
Mr. DOMENICI. Is that fair enough, Senators?
Mr. WYDEN. Yes.
Mr. DOMENICI. Fair enough. Thank you. I yield the floor.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from Idaho.
Mr. CRAIG. Mr. President, I think all of us stand here tonight happy
that a work product is before us, and it would be remiss of me not to
congratulate both of the Senators from New Mexico but clearly to
recognize Senator Domenici for his chairing of the Energy Committee
here in the Senate and the work he and Senator Bingaman have done to
operate in a bipartisan way to bring us to where we are tonight.
You have heard from both of these Senators, and they have spoken
clearly about the substance of the conference report that is before
us. I will not go into the detail of that substance.
At the outset, let me thank at least two of my staff members, George
O'Connor and Corey McDaniel. Both of them have worked on these issues.
George O'Connor has been with me literally all of these years as we
have worked and struggled through the process. I thank them and thank
the staff of the full committee for the tremendous effort at hand that
has produced this important conference report.
In the 5-year struggle that many Members have been engaged in
developing a comprehensive energy policy for this country, at times we
thought it was for naught. We would bring it to the Senate, we would
spend weeks voting on it, we would work with the
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House, but we could not produce a final conference report.
That work was not for naught. In that process of the last 5 years,
not only did we learn there were issues we simply could not arrive at a
solution on, but over that 5 years there was a learning process for all
of us and for all Americans on a variety of issues.
Senator Domenici spoke tonight of a new, comprehensive national
policy to deal with nuclear energy and to bring it online. Five years
ago we could not have accomplished what we accomplished in the last
several months. Why? The public was not with us in general nor was
there a growing realization that obviously did occur that the way to
build new base load, to turn on the lights of America 10 years out, was
with an existing technology while we worked on future technologies. And
we wanted it to be clean. That new technology was an existing
technology: It was nuclear.
Once again I believe the world is increasingly excited that America
has decided to take a leadership role in the area of nuclear instead of
to hide behind the politics of the issue, as we have as we have lost
that leadership role over the last two decades. In our action here,
comprehensive work has been done of a bipartisan character.
Senator Domenici also reminds me, as he should, he wrote a book on
the issue, a book that is selling pretty well, but also a book that was
part of that educational process that caused us, along with the critics
of the issue, to begin to understand if we want clean energy, and we
do, and we want abundant energy, and we must have it, under current
technologies there is only one place to go to get it.
Clearly, we have incentivized that. The Senator from New Mexico is
right. If you cannot begin to design and ultimately build new nuclear
production facilities in this country, new electrical productions in
this country fueled by nuclear reactors, then we will not get it done.
But we will, and not only will we go through a new generation, we will
go into new technologies. That is laid out in this bill. It is
critically important.
So while we are working on the new, we also do something else. We
realized the old must be renewed, and that was hydro. For the Pacific
Northwest, it was critical. In the Energy Policy Act of the mid-1980s,
we created a problem. We included everybody except the producer and
said, You have a right to shape the new facility when it is relicensed,
no matter what the cost and no matter what the demand, as long as it
fits the environmental desire of the stakeholders involved. We could
not get licensing completed.
It went on for years and years and cost hundreds of thousands, if not
millions of dollars, and nothing got done. When it did get done, the
production plant usually produced less than it had before. That is
unacceptable when we see so many of our hydro facilities needing to be
relicensed in the next 20 years. I and many others worked and we have
what we believe is a new and better way to relicense our facilities
with that clear recognition.
There are many key components in this critical legislation that, as
both the Senators from New Mexico have said, put us back into the
business of producing energy, clean energy, appropriate for our
national needs, meeting the demands, creating jobs, and saying to our
young people, there is a variety of abundant energy future for our
country.
I applaud my colleagues for working with us in accomplishing what I
believe to be a very comprehensive piece of work.
I yield the floor.
The PRESIDING OFFICER (Mr. Vitter). The Senator from New Mexico.
Mr. DOMENICI. I will yield very soon to Senators.
I make one observation and ask one question and then I will yield to
my friend from Wyoming.
First, fellow Senators, Senator Bingaman mentioned something about
renewables. I failed to mention, while we did not accept the Bingaman
amendment, the tax portion of this bill allocates the largest
percentage, largest piece of the tax incentives to renewables, to wind.
Some did not like that. Some think it is great. One of the Senators is
here and smiling. He did not like that. But that means as much wind
energy as you can throw for the next 3 years, as much as you can
manufacture and use, will be manufactured and used. Hopefully during
that period of time Senator Bingaman can return and speak more to the
issue of longevity and continuity.
I thank two people: Alex Flint, my staff director, and Bob Simon, the
staff director of Senator Bingaman. It is fair to say they have become
friends, too, just as my friend Senator Bingaman and I have.
With that, we have the order for the next hour or so. I will leave
for a while and leave it to one of my friends. Senator Murkowski is the
last one, although we have not provided for her.
I yield the floor.
The PRESIDING OFFICER. The Senator from Wyoming is recognized for 5
minutes.
Mr. THOMAS. Mr. President, I will be short. It is a real honor to be
here this evening to talk about the introduction of this bill, a bill
for which we have waited a very long time, and worked a very long time.
I thank the chairman and the ranking member. We worked very hard on
this bill to get it into conference and worked very hard through
conference.
Since we started formulating policy, we have worked on a number of
issues. There have been changes. Many things have remained the same
because the policies need to be the same. The issues are the same. We
have had to move forward.
We still need a comprehensive policy. That is an important issue
because now, as we read in the paper, there are questions as to why we
are not going to affect the gas prices tomorrow or the day after. We
are talking about down the road. We are talking about where we will be
over a period of time. This is a policy. It is very important
to remember and to understand as we talk about the changes that will
eventually take place in the kind of energy we will use, in terms of
renewables, in terms of alternatives. We will be moving there, but we
are not there. Alternative energy creates now about 3 percent of what
we use. It will be much higher than that, but it won't be higher than
that next year or next month.
We have to make sure what we are using now for energy can continue to
be maintained and that we will find new ways of dealing with the
energy. For instance, that we can take coal, our largest fossil fuel
resource, and find ways to use it in a more environmentally sound way,
find ways to change the way it is moved, for hydrogen or synthetic
diesel, and do that over time.
It is important we understand that we have to do two things: We have
to look to the future about alternatives. We have to find ways to use
what is available now to keep up production in this country and to keep
our economy strong. We ought not to forget that is what we need to do.
This is a bill that is very balanced. That is important. It has
already been talked about. I will not go into the details. We have
talked about renewables. We have talked about ways we can renew--
whether it is gasoline, ethanol, or opportunities for electric
generation, whether nuclear or whatever--areas we can move to. That is
very important over time.
We ought to talk about coal. We do here. We spend a good deal of
money. By the way, we divide this total expenditure in about six equal
ways between renewables, conservation, doing something to make coal
more usable. There are six distinct areas spread in fairly equal
amounts.
I will talk a second on coal. It is our largest fossil fuel resource.
We have more of it for the future than any other energy. We need to
find better ways to use that. Much of it will be generating
electricity. Sometimes we do not think about where electricity comes
from; we just think it is automatically there. It is not. We have to
continue to do that. Coal is in one place; the need for electricity is
in another. We need transmission. We have to have new transmission
ideas and do things that are more efficient than they have been in the
past. We need to find a way to make sure it is safe and secure.
The same thing is true with oil. We use oil a great deal. About 60
percent of it now is imported. We will continue to do that. Certainly
over time we will find ways to get better mileage in
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automobiles. It is not going to happen right away.
Of course, there will be some arguments that we should put some
defined times when you have to get CAFE standards. It is very difficult
to do that. But it will happen. It will happen in the marketplace. It
will happen as we can do it. And we can do it efficiently. We have to
find better ways to get more oil out of the ground. We produce a lot of
oil in Wyoming. The old oilfields are about exhausted, but below that
is a great deal more oil if we find different ways of doing that, if we
use renewed production or carbon sequestration. And much of that is in
this bill.
We do have conservation and efficiency, as we should have. We have
opportunities to make the use of energy more clean and better
environmentally. We have ideas for producing more production of our
resources available now. And we need to do all of these things as
quickly as possible, but we cannot do them overnight.
I urge passage of this bill.
The PRESIDING OFFICER. The Senator from Massachusetts is recognized
for 30 minutes.
Mr. KERRY. Mr. President, I wish the senior Senator from New Mexico
were in the Senate because I wanted to say a few words to him
personally as well as about him, but in his absence I will certainly
say them.
In the Senate, we all have an ability, thank Heaven, to be able to
separate the policy from personality and from the personal. I know how
hard Senator Domenici has worked through the years. I know how
committed he is personally to developing an energy policy. That goes,
also, for the junior Senator from New Mexico, my friend Senator
Bingaman, who has worked closely and diligently under difficult
circumstances to try to deal with these energy issues.
On a personal level, I am genuinely happy for the Senator from New
Mexico because I know this is a moment of completion for him, and on a
personal level he is happy and he has worked hard to get there. All
Members are gratified when a colleague has that kind of
success. Nevertheless, on a policy level, I have enormous disagreements
with where this bill has finally put the Senate and our country.
Our Nation's energy crisis has reached historic levels. What we need
today is not a policy that puts enough good stuff in it that enough
Senators will grab onto it and say: OK, I can vote for that bill. What
we need is an energy policy that is as bold and big as the challenge is
significant to the country. That is not, under any analysis, what we
are getting in this bill.
This is, frankly, largely a lobbyist-driven bill. What underscores
that is when you measure what is happening in this bill--as you must in
making any decent policy for our country--when you measure this bill
against families who are struggling to balance their checkbooks, who
cannot pay easily the additional cost of gasoline, when you measure
this bill against small businesses, which have had an enormous rise in
the cost of doing business--just the cost of getting to and from the
business, let alone the cost of trucks delivering goods to that
business. There has been something like a $25 billion to $30 billion
energy gas tax increase on businesses over the course of the last
couple years. They are paying those additional costs.
We passed, in the Senate, an energy provision to be able to provide
loans--not grants, not giveaways, but loans--to those businesses so
that they might be able to adjust for the cash flow problems they have
because of the increased cost of energy. The Senate passed it. The
Senate passed it 3 years ago. But it was taken out in the conference.
Gone from this bill is any kind of emergency lending assistance to
the small businesses of our country that are hard-pressed because of
energy costs. Why? What is the reason for that? When you see our
children breathing air already that is dangerously polluted, and you
know the levels of asthma among children are increasing, and the
greatest cause for the hospitalization of children in the summertime in
America is an asthma attack, which is air-induced, and the quality of
our air is not being cleaned as much as it was, as rapidly as it could
be, nevertheless, you see us going backward with respect to the new
source performance standards in air quality, when you read about rival
nations that are rapidly moving ahead of the United States of America
with respect to alternative energy technologies--and they are creating
high-paying jobs by moving in that direction--but the United States is
only moving incrementally, without a genuine commitment--and I will
come to that in a minute--when you recognize that our dependence on
foreign oil sees us sending $25 billion a year just to the Gulf States
alone--Mr. President, $200,000 a minute, $13 million an hour, we send
to those countries; And how much of that money falls into the hands of
Hamas, al-Qaida--when you see what the complication of oil dependency
does to the foreign policy of the United States as well as the health,
economy, and security of our Nation, you have to ask yourself why we
are not moving more rapidly to deal with these issues.
Senator Domenici said a moment ago this is the largest portion that
has gone to renewables. Well, let me show my colleagues this pie chart,
which simply contradicts that. That is not accurate. It may be a larger
amount of money than it has been in the past, but of the money that is
being put out in this bill, only 16 percent goes to renewables. And 10
percent goes to efficiency. That is a total, between them, of 26
percent going to renewables and efficiency. Mr. President, 37 percent
alone, eclipsing renewables and eclipsing efficiency combined, is going
to nuclear--going to nuclear.
When you add the combination of oil and gas, you have an enormous
proportion of this bill's tax benefits and funding that is going to the
status quo--the status quo--``same old same old'' energy policy of the
United States, not to the creation of the new high-paying jobs, to
clean air and to renewables and the kind of technologies we need. There
is no explanation for that.
Mr. President, I voted for the Senate bill. I joined with colleagues,
85 of us, in sending a bill to the conference that had about a 50-50
split. I was not pleased with a 50-50 split. I thought we could have
done better than that. Guess what. We are going backward in this bill.
Why? What is the rationale? What is the policy rationale for having
taken a Senate bill that had a larger amount of money going to
renewables and alternatives, that passed with 85 votes, and here we are
with a bill on the floor of the Senate that has a paltry 26 percent,
only 16 percent going to renewables? If you ask the American people,
the American people would overwhelmingly vote to do otherwise. But the
Senate will not.
The conference committee takes a huge step backward in other places--
for instance, the requirement that U.S. utilities generate 10 percent
of their electricity from renewable sources by 2020, 15 years from now.
We are trying to set a goal that just 10 percent of America's
electricity is going to be produced from alternatives and
renewables. We could achieve it. Other nations are moving to a much
higher level of alternatives and renewables. Not the United States of
America. We are going to do the ``same old same old.'' We are going to
do the nuclear and do the oil and gas.
Well, most of our electricity actually is not oil-fired. It is either
coal-fired or natural gas-fired. But the fact is that instead of
setting a standard, which we had in the Senate--in the Senate bill, we
said 10 percent of the electricity by 2020 will be from renewable
sources--that is gone, taken out of the bill. Why? Because special
interests on the House side demanded that happen.
As to language that recognized global warming, I remember how many
Senators came to the floor, and they all embraced the language of
global warming in a nonbinding resolution. They just said: We are going
to deal with it, and this is important. Guess what. Even the nonbinding
language that acknowledged the problem of global warming has been taken
out. There is nothing in this legislation to deal with one of the
single greatest environmental challenges on the face of this planet--
nothing.
And how do you explain this next one? The United States uses about 19
million barrels of oil a day. We had a requirement in the Senate bill
that we reduce oil consumption in America by 1 million barrels a day.
Imagine that: We
[[Page S9262]]
were going to try to get 1 million out of 19 million. We were going to
require that the country set a goal of reducing that dependency on oil.
Gone. It has been taken out. Why? Why would we not want, as a nation,
to set a goal of trying to reduce our dependency?
I guarantee you, Mr. President, we are going to be back here in the
Senate facing real energy crises as we deal with the realities of what
is going to happen in the world, with a China that is going to move to
something like 13 million barrels of consumption on a daily basis from
about 5 today. You have India that is going to go from about 2 million
barrels up to 5 million barrels a day.
You are going to have some trillions of dollars that are going to
continue to be exported abroad, and you will see more efforts by China
and other countries to take the fruits of their oil and buy American
companies. Is America going to be stronger for that?
I would like to know why, instead, billions of American tax dollars
are not going to go to renewables and alternatives, but they are going
to go into oil and gas. Let me make it clear. I support clean coal
technology. I think it is important. It is one of the most vast
resources of the United States, one of our biggest reserves. And it is
absolutely technologically feasible for us to be able to burn coal more
cleanly. We need to do that. I support our efforts to move in that
direction.
But why, at the last minute, is there a $1.5 billion deal that goes
to Halliburton? Halliburton, which is making billions of dollars off of
Iraq, Halliburton, which is a hugely profitable company, is going to
get $1.5 billion out of this instead of some of these other nascent
technologies that are screaming for assistance.
Why is it that children are going to get weaker environmental
protections, dirtier air and water? Is there any person in the Senate
who has received mail from their constituents saying: Give me dirtier
air for my kids. Give us dirtier water to drink. That is what you are
getting. That is what this bill gives you.
Americans get no relief at the pump. And we are left more dependent
on foreign oil than we are today. Imagine that. Here is an energy
policy that people are going to come and celebrate. I can see the
President's signing ceremony now. And he will go out and tell America
how terrific it is going to be. But this does nothing to reduce
American dependency on oil.
Let me make it clear. Don't take my word for it. The President's own
economists say that oil imports will increase 85 percent by 2025 under
this proposal. The President's own economists found--and I quote them--
[C]hanges to production, consumption, imports, and prices
are negligible [in this bill].
In other words, the very things we want to affect--prices,
consumption, imports, production--are going to be negligibly affected
by this bill.
You do not have to be an expert, you can be a kid in any classroom in
America, in middle school or elementary, and know that if the United
States of America only has 3 percent of the world's oil reserves--that
is all we have in all of Alaska, underneath all of our national
monuments, in all of our waters that are accessible to the United
States. We have 3 percent of the world's oil reserves. Saudi Arabia
alone has 65 percent of it. As I have said many times, and as this bill
ignores, there is no possible way for the United States of America to
build its security in the long term by drilling our way out of this
crisis. We have to invent our way out of it. This bill barely scratches
the surface of the kind of invention America is capable of and the
kinds of opportunities we know of.
I heard the Senator a moment ago say we do not have the ability now
to be able to do better in our automobiles. That is just not true. For
a $200 expenditure, anybody could go out now and get their car
converted to be able to go use ethanol fuel, biomass fuel. It is just
that we do not do enough of it. Imagine what we could do for farmers
across our Nation. Imagine what we could do with respect to the
possibility of new jobs and new production facilities and delivery
facilities and infrastructure. None of that is being adequately tapped
with respect to this legislation.
All you have to do is look at what this bill does for the
environment. There is in this bill an amendment to the Safe Drinking
Water Act. Do you know what it does? It allows unregulated underground
injection of chemicals during oil and gas development so that we
threaten clean water. Did anybody in America say, I think it is a good
idea for us to have chemicals put into the underground water supply in
order to bring out oil and gas? Why would we exempt it from the
standards we have applied to our Nation over the course of the last 30
years? The oil and gas industry is getting an exemption for their
construction activities from compliance with the Clean Water Act. Why
would you exempt construction activities from compliance with the Clean
Water Act?
The Energy bill also requires an inventory of offshore oil and
natural gas resources. That is supposed to pave the way for offshore
drilling along America's coastlines, including areas off Florida's
coastline, which is banned.
This Energy bill should have been a net plus for the environment.
Instead, it goes backward.
Are there some positive provisions in this bill? Of course there are.
I could stand up here and talk about the importance of clean coal
technology. There are other things. I am encouraged by the strong, new
standards and consumer protections in electricity. I am encouraged we
finally authorized Energy Star. But the bottom line is, we did better
in the Senate bill that went to the conference committee. We did
better. And there is no policy rationale, no common sense in going
backward from the standards that were set in that Senate bill.
The fact is, if we end our energy dependence on foreign oil, we
strengthen our national security. If we lead the world in inventing new
technologies, we create thousands of high-paying technology jobs. If we
learn to tap clean energy sources, we preserve a clean environment for
our families and for future generations. If we remove the burden of
high gas prices, American consumers can spend elsewhere and give our
economy the boost it needs.
This Energy bill does not take anywhere near the advantage that we
had in the Senate bill or that we could have had even beyond the Senate
bill.
I understand it is hard to get an Energy bill passed. We all
understand the powers and the force of money in American politics and
the lobbying that takes place. But we have a powerful opportunity to
make a renewable electricity the standard in the United States. This
bill ought to be increasing our electricity supply from renewables up
to 20 percent of electricity from wind and solar and geothermal and
biomass facilities by 2020. Instead there is nothing.
The renewable portfolio standard is a simple mechanism to diversify
energy sources, to stabilize electricity prices, to reduce air
pollution and other harmful environmental impacts of electricity
generation. The fact is, this administration has even let the big old
powerplants off the hook by reneging on the new source performance
standards so that they don't have to live up to the higher standards as
they put new technologies in place. The result is, Americans will have
dirtier air than they would have had otherwise.
Second, we need to take serious steps to help the domestic auto
manufacturers build the cars, trucks, and SUVs of the future. The
market for hybrids is set to take off. Over the next 3 years, the
number of hybrid models is going to increase to almost 20. By 2012,
there could be possibly more than 50 models. These are representative
of real potential volume and unbelievable value. If we don't build
them, someone else is going to do it. The fact is, others are doing it
more effectively and rapidly than we have. The global market for
hybrids, by one estimate, could be as much as 4.5 million units by
2013, perhaps $65 billion alone in the United States. I believe we
ought to put American ingenuity back into our vehicles. We ought to be
encouraging, to a greater degree, the ability to transform that
marketplace. That is why any Energy bill that we consider ought to have
both manufacturer and consumer incentives that are adequate to help
accelerate that transition. This bill doesn't.
Third, Congress can't responsibly continue to ignore the global
climate change issue. Higher temperatures
[[Page S9263]]
threaten serious consequences. I met the other day with our top experts
from NASA. How many Senators realize that it is now not a question of
whether; it is a certainty. Nothing we do today is going to stop this.
To show you how far behind the curve we are, it is a certainty that the
Arctic ice sheet is going to melt. If the Arctic ice sheet melts
completely, that exposes the Greenland sheet. Nobody can tell you with
certainty what is going to happen to Greenland. But any policymaker
ought to stop and shiver at the prospect that it is a certainty the
Arctic ice sheet will melt. The Greenland ice sheet will be exposed.
And if it were to melt, with catastrophic consequences, say goodbye to
Florida, goodbye to the port of Boston, and New York, and a bunch of
other places. That would be a catastrophic event. There is nothing in
this bill that tries adequately to deal with that reality.
What is going to happen with respect to drought, disease, floods,
lost ecosystems? And from sweltering heat to rising seas, global
warming effects have already begun. Sit down with the top scientists.
Sit down with Nobel Prize winners and listen to them tell you about the
certainty of what is already happening, not a matter of scientific
speculation. The seas are rising. It is getting warmer. They will tell
you what is happening. This bill doesn't deal with it.
We tried, on this bill, to pass an economywide cap-and-trade bill, a
bill that uses the marketplace to be able to work effectively. Didn't
get enough votes. The compromise was, they passed the language that
didn't require anything, and they even took out of this bill the
language that didn't require anything. This is the most obtuse, head-
in-the-sand ostrich policy I have ever seen in my life. A bunch of
responsible people in the Senate and House of Representatives, ignoring
scientists all across the globe, turning their backs on foreign
ministers, trade ministers, environmental ministers, prime ministers,
presidents of countries, all of whom have embraced, at political risk,
the reality of that science, and only the United States of America
stands apart and alone, ignoring that reality. Where is the leadership?
Fourth, to ensure that technologies capable of providing clean,
secure, and affordable energy become available in the timeframe and on
a scale needed, we need to dramatically increase our commitment to
research and development. I am in favor of advancing the research on
nuclear waste and on third-generation, fourth-generation nuclear
capacity. A lot of people in my party are not, a lot of
environmentalists aren't. I think it is responsible to do that. But it
is not responsible to go rushing headlong with the greatest proportion
of technology alternative here, without having dealt with those issues
and dealt with the American public in a responsible way with respect to
that.
I think the bill ought to include provisions to dramatically increase
Federal Government funding for new energy research and development,
increased incentives for private sector energy research and
development, and expanded investment in cooperative international R&D
initiatives. It does not.
Maybe most important of all, we need to attack our energy crisis with
the same intensity that we showed under the leadership of Franklin
Roosevelt and Harry Truman when we undertook the Manhattan Project or,
subsequently, when we did the space program and the Apollo program. Our
competitors are showing that kind of urgency. Prime Minister Blair has
been fighting hard to get the G8 to come together. He had to back off
because of American pressure. We pushed backward, not forward. Great
Britain wants to do almost 100 percent of its electricity from wind
power over the course of the next years. Other countries are moving to
80 or 90 percent goals of biomass for fuels. Not the United States of
America, despite so many farmers who are desperately waiting for that
marketplace to exist.
In Germany, where heating is a huge drain on energy, a new law sets
the standard of a house designed to use just 7 liters of oil to heat 1
square meter for a year. A new national campaign in Japan urges
replacement of older appliances with new hybrid products as part of
their nationwide effort to save energy and fight global warming. In
Singapore, air-conditioning is a big drain on energy. So new codes
encourage the use of heated blocking window films and hookups to
neighborhood cooling systems which chill water overnight. Other
countries are way ahead of the United States of America in exploring
these possibilities.
In Hong Kong, an intelligent elevator system uses computers to
minimize unnecessary stops and minimize, therefore, unnecessary use of
energy. If these nations can reduce their dependence on foreign oil and
invest in advanced energy technology, surely the United States of
America can do better than this paltry 16 percent renewables and 10
percent efficiency.
Their urgency is more than justified because, frankly, this goes way
beyond our economy. Energy is a legitimate and central global security
issue. The era when the United States and Japan comprised the bulk of
the world's demand for oil is over. Oil consumption from developing
Asian nations will more than double in the next 25 years, from 15
million to 32 million barrels a day. We only have 3 percent, as I said
earlier. There is no way the United States is going to be part of that
bargain. The way the United States can be part of that future is by
creating those alternative sources and gaining our independence.
Chinese consumption is going to grow from 5 million to nearly 13
million barrels a day. India is going from 2 to 5 million barrels per
day. This global race for oil is potentially a devastating,
destabilizing force, certainly a challenge to the security of our
country.
We are going to be back here on the floor of the Senate in a short
period of time lamenting that we didn't do more now. Increased American
energy dependence further entangles also our Nation in these areas of
the world. You look at our troops now. This is not good for our troops.
In recent years, U.S. forces had to help protect a pipeline in
Colombia. Our military had to train indigenous forces to protect a
pipeline in Georgia. We plan to spend $100 million on a special network
of police officers and special forces to guard oil facilities around
the Caspian Sea and continue to search for bases in Africa so we can
protect oil facilities there. Our Navy patrolled tanker routes in the
Indian Ocean, South China Sea, and the western Pacific. The reality is
that we have to protect oil at risk to our troops and at cost to
Americans to protect our way of life because we are not working the way
we could to provide an alternative to that.
This is a serious issue with real consequences. In the spring of
2004, insurgents attacked an Iraqi oil platform. There was violence
against oil workers in Nigeria. The result was depressed global oil
output and record high gasoline prices. The United States is now on a
course where we are opening a target to terrorists. The more you rely
on oil, the more disruptive it becomes to your economy, the more it
becomes a target to terror, rather than growing it here at home.
If anyone needs an example of how energy dependence can shortchange
national security, you can look at the war on terror. Let's assume that
oil were to miraculously drop to $30 a barrel over the next 25 years.
The United States will send over $3 trillion out of the country, much
of it to regimes that don't share our values. Today, America spends
these enormous amounts. About $25 billion a year goes to Persian Gulf
imports alone. It is bad enough to think that those dollars aren't
going to stay here and help grow our economy. But it is worse to
consider that they empower, in many cases, some of the most extreme
elements in the world to be able to take advantage of that richness.
The fact is the madrassas in many of these countries and the deals that
have been cut in regimes like Saudi Arabia between those extremists are
part of what has provided the recruitment and destabilization with
respect to the violent extremists of the world today.
We know that al-Qaida has relied on prominent Saudi Arabians for
financing. The fact is that the bottom line of this policy is, it works
for Saudi Arabia. It works for oil and gas companies. But in the long
run, this is not going to be what the American people need or want.
Americans deserve better, and they also deserve the truth. We had a
debate
[[Page S9264]]
on the floor of the Senate on an Energy bill, during which we were
debating efficiencies. This administration delayed an EPA report that
slammed fuel economy. It didn't allow the report to come out until
after the bill had passed.
Washington failed the American people with respect to an opportunity
to provide both the economic, health and security and energy policy
that this Nation so desperately needs. My hope is that as much as there
are some good things in this bill, the Senate at some point will come
back and get the real job done.
I yield the floor.
The PRESIDING OFFICER. The Senator from Tennessee is recognized for 5
minutes.
Mr. ALEXANDER. Mr. President, the legislation that the Senator from
Massachusetts described bears very little resemblance to the
legislation I have been working on for the last couple of years with
Senators Domenici and Bingaman and that 13 out of the 14 Senate
conferees of both parties just approved.
Let me say what I believe we did and then spend a minute, at the end
of my 5 minutes, correcting a couple of things the Senator from
Massachusetts said.
Energy is not usually what we talk about at the dinner table, but it
is today. For example, in Tennessee, if you are working at
International Paper in Memphis or at Eastman Chemical in east
Tennessee, you know that if the price of natural gas stays as high as
it is today, the highest in the world, those jobs are going to move
overseas. And those are thousands of jobs in Tennessee and millions of
blue-collar jobs in America. If you are a farmer and you know that the
natural gas price stays as high as it is today, you know you are going
to have a big pay cut because of the cost of fertilizer. And if you are
a homeowner, you know the bills are up.
The first thing this legislation does is to take significant steps to
stabilize the price of natural gas and hopefully bring it down. That is
worth talking about at the dinner table.
The second thing it does is to change the way we produce electricity
so that it is by low-carbon and no-carbon means. That is worth talking
about at the dinner table because it helps deal with global warming,
and it helps deal with clean air. The third thing it does is begin a
long-term switch from a dependence on oil, especially foreign oil. That
is worth talking about because of our national security. Does it really
do that? I would submit that it does. To begin with, the conservation
and efficiency provisions in this bill will save the building of 50
major powerplants over the next 20 years. That is the first and most
important thing we should do.
The second thing it does is to focus on accelerated investment and
research for the next generation of nuclear power.
If you really care about global warming, you want to support nuclear
power because 70 percent of our carbon-free electricity in America
today comes from electricity generated by nuclear powerplants.
The third thing it does is to adopt a strategy that the Natural
Resources Defense Council and many others have urged on us, which is to
explore seriously making gas from coal and turning that into
electricity and taking the carbon out and putting it into the ground.
The fourth thing it does is to create new supplies of natural gas to
begin to lower the price of gas and further produce clean air.
Mr. President, that is really the way to address global warming. That
is really the way to reduce the price of natural gas. That is a serious
policy to change the way we produce electricity so it is low carbon/no
carbon--conservation and efficiency, nuclear power, coal gasification,
carbon sequestration, and new supplies of natural gas. And then, for
the long term, a focus on hydrogen fuel cell economy, but that is
several years away.
The Senator from Massachusetts talked passionately about renewable
energy. We all hope we can expand renewable energy. I fought very hard
and I am glad to see in this legislation, for the first time, a carve-
out for solar power, which was getting nothing from our renewable tax
credit. But how much are we going to spend on energy that produces 2
percent of the electricity we use?
If you look at the figures in terms of the tax incentives in the
bill, the Senator from Massachusetts didn't multiply very well because
we spend 20 percent of the money on renewable. That is for 2 percent of
the electricity. We spend 18.6 percent on energy efficiency and
conservation. Most of us wish that were more. We spend 18 percent of
the money on oil and gas production. That is 40 percent of our energy.
Of the amount we spend on electric reliability, we spend $400 million
of that for clean energy renewable bonds. That is renewable. We spend
20 percent on clean coal.
Mr. President, if anything, I think we are overspending on renewable.
We have committed of taxpayers' money $3 billion over the next 5 years
building giant windmills with flashing red lights. The Senator from
Massachusetts may want a national windmill policy. That is for a desert
island. For the United States, we need a serious clean energy policy,
and that is this bill. So I congratulate Senator Domenici and Senator
Bingaman. I am proud of this bill and I hope we adopt it.
The PRESIDING OFFICER. The Senator from Oregon is recognized.
Mr. WYDEN. Mr. President, sometimes the test of legislation in the
Senate is did we do less harm than good. Some might say, by that test,
this Energy bill is worth voting for. I will tell you that test is not
good enough when America is at war and our dependence upon foreign oil
is putting our citizens at risk each and every day.
The test in the Senate that, well, maybe this legislation has some
good is unacceptable when there is a rare opportunity and a rare
obligation to avoid the terrifying human costs of future wars. In those
rare instances, the test in the Senate should be did Congress meet its
obligations. I have concluded that in this energy bill we have not.
Our dependence on foreign oil will not be reduced as a result of this
legislation. As a result, we have not reduced the prospect of going to
war once again in the Persian Gulf in the next decade. I do not
understand how we will explain to every man and woman who fights so
courageously in Iraq and Afghanistan, or how to explain to every
veteran who fought in the Persian Gulf in the last decade, how we
failed to meet our obligation to avoid future wars.
For this reason, I want to express a deep regret to those soldiers
and veterans because your children are now no less likely to be asked
to fight a very similar war. I want to express a deep regret to the
families of those soldiers and veterans because their children may
someday face the very same burdens. I want to express a deep regret to
the American public, which is spending hundreds of billions of dollars
to prosecute the war in Iraq and may someday be asked to spend far more
on the next war because the Senate is about to pass a pre-9/11 energy
policy. After 9/11, it became clear that energy policy was a national
security issue and that reducing our dependence on foreign oil had to
be a national security priority. That hasn't been done.
So today Americans continue to pay what I call a terror tax--the
price we pay in insecurity for our dependence on foreign oil. I call it
a terror tax because when each of us pulls up to the corner gasoline
station and pays $2.40 a gallon, or so, for gasoline, a portion of that
money goes to foreign governments that in turn send it out the back
door to Islamist extremists who use the money to perpetuate hate and
terrorist acts. But in this bill Congress has squandered a golden
opportunity to dam that river of terrorist funding.
It is not good enough to accept business as usual when our citizens
pay record prices at the gas pump, only to see foreign governments wink
and nod while terrorists make off with substantial amounts of the money
and use the funds to target America. The recent bombings we have seen
have been a sober reminder of just how vulnerable America, our allies,
and our strategic partners remain to terrorism. In my view, there is an
indisputable link, not only between the American dependence on foreign
oil and the price our citizens pay at the pump but between our oil
addiction and our vulnerability to attack here at home.
What I have come to learn as a member of the Energy Committee, and as
the one member of the conference who was unwilling to sign the report,
is
[[Page S9265]]
that any energy policy proposed in the future should have to contain a
statement of how that bill will reduce the terror attacks. There ought
to be a statement in the future with respect to energy legislation on
how that legislation would actually reduce our dependence on foreign
oil in the short term and in the long term.
If that had been required for this legislation, there is no way this
bill would get a passing grade. This legislation does virtually nothing
to reduce our dependence on foreign oil. You look at what was said in
2003, not by partisans on one side or the other but by the Bush
administration's Energy Information Agency. They said that bill would
have increased our imports of foreign oil by 2025 by about 85 percent.
This legislation, with respect to oil imports, would produce virtually
the same result.
Now, to give the country a sense of just what we were up against--
those of us who wanted to break our dependence on foreign oil--I would
like to discuss an amendment I tried to offer in the conference. In the
conference, I proposed that the automobile industry be required to
increase auto efficiency by 1 mile per gallon for each of the next 5
years. The reason I did that is a basic fact of energy policy. You
cannot transform this country's energy sector if you give the
automobile industry a free pass. So when I made that proposal, I said
to myself, what a modest step, just 1 mile per gallon for just 5 years.
Yet it would have had a huge impact in terms of reducing our dependence
on foreign oil. Unlike this legislation, which doesn't reduce our
dependence on foreign oil, that would have made a difference.
In the 2001 report, the national academy found that the technology
exists today to raise the average fuel economy nearly 40 miles per
gallon by 2012 without sacrificing safety. My proposal was much more
modest than what the leading scientific experts in this country found
was both technologically feasible and affordable to consumers. Yet the
conference rejected even this modest proposal out of hand.
I particularly thank Senator Bingaman, who supported it and said we
ought to at least, at the very minimum, not go to the American people
and say, gosh, 5 miles a gallon over 5 years is too much. But even that
modest advance could not make it into this legislation. So, as a
result, Americans will get no relief from this terror tax brought about
by our addiction to foreign oil. And at the same time, their hard-
earned dollars will flow out the back door straight to the entrenched
energy interests.
Now, even the President has said that when oil is trading at upwards
of $55 a barrel, the oil companies are not in need of any more
incentives. When the President says the oil companies don't need a deal
from the Government, that ought to tell you something--you are going
too far. But even so--even with the remarks of the President, who was
dead right--this bill is now stuffed with a smorgasbord of subsidies
for a whole host of energy special interests. The buffet of subsidies
is so generously larded that, in many cases, it will allow second and
even third helpings from the energy subsidy buffet table. Loan
guarantees are letting these special interests double dip and even
triple dip on some energy projects. Projects that would already be
subsidized in other provisions of the Energy bill will also receive
loan guarantees under the incentives title.
They are also going to get tax credits in the finance title. That is
dip 1. Then they are going to get loans under the incentives title.
That is dip 2. Then there will be loan guarantees on top of that. That
is dip 3. These guarantees are some of the largest subsidies in the
Senate Energy bill, and they are risky ones.
Mr. President, the subsidy title of this legislation, in my view, is
a blank check for boondoggles that simply doesn't decrease our foreign
oil dependence.
In closing, the most patriotic thing this Congress could have done in
the summer of 2005 was to write an energy bill that did three specific
things: reduce our dependence on foreign oil, lower gasoline prices for
working families and businesses, and end the energy subsidy smorgasbord
that has offered these heaping helpings of taxpayer dollars to the
energy industry for decades.
I am sad to say, as one who was involved in this from the outset as a
member of the committee and the conference committee, that the final
product does not accomplish any of those three things. It doesn't
reduce our dependence on foreign oil. Nobody has to take my word for
it. That has been on the front pages of the papers all this week. It
doesn't lower gasoline prices. And, again, you don't have to take my
word for it. The President has already stated that. It doesn't end the
subsidy buffet for the big energy interests, and you won't have to take
my word for that either. You are going to hear those special interests
breaking out the champagne bottles all over town in the next few days.
My constituents have been hit especially hard by high energy costs,
and they and millions of Americans had hoped that the Congress would
step up and take bold action, truly bold action, to shake us free of
our dependence on foreign oil and these other concerns that I have
addressed tonight.
What I hope is that, as the country sees how little is actually
accomplished here, there will be an opportunity--and an opportunity
soon--to come back and address some of the shortcomings that have been
discussed on the floor of the Senate tonight.
I hope there will be a transformational policy put in place with
respect to the automobile sector. That is the ball game in terms of
energy conservation and reducing oil consumption. This legislation took
a pass on it.
With respect to reducing carbons, again, there was a marketplace
approach--a bipartisan marketplace approach--that the Congress could
have moved ahead on.
The bottom line, the Congress could have done much better. I think
our colleagues in the Senate know this bill is literally a series of
missed opportunities. It is right to vote no on this legislation.
Mr. President, I yield the floor.
The PRESIDING OFFICER (Mr. Ensign). The Senator from Alaska.
Ms. MURKOWSKI. Mr. President, I have waited my time in the queue this
evening because I wanted to take a few minutes to speak not only about
the importance of this Energy bill we are poised to vote on tomorrow,
but to acknowledge those who did I think yeoman's work in getting us to
where we are.
As my friend from Oregon has pointed out, this is not a perfect piece
of legislation. He and I would disagree on certain areas of it. But I
think when we look at the work product of what we do in the Senate, the
day that we come to complete agreement--complete agreement--on all
aspects of legislation we move forward, I think we will have all lost
our collective senses. We will always find room to improve our
legislation. We will always find room to make something better. We need
to look at where we are at this point in time with the Energy bill we
have before us.
As was pointed out earlier this evening, we have not had an energy
policy updated or presented or worked through this Congress for 13
years. Thirteen years is a long time to be floating without a specific
policy, a specific policy direction, particularly in an area that is as
important as energy.
I had the opportunity yesterday to address a group of a couple
hundred young people in a junior statesman-type forum. It was an
opportunity for me to speak on the subject of my choosing. Since we
have been so focused on energy these past couple weeks and we have been
moving this bill through the conference process, I spent my time to
talk about what we had been doing and the significance of energy to us
as a nation, as a people, and particularly to these young people.
As Senator Alexander, the Senator from Tennessee, mentioned earlier,
energy is not typically something we talk about at the dinner table. We
need to understand as a country how important energy is to our daily
world.
I have often described the way Americans think about energy--we have
this kind of immaculate conception notion of energy: It just happens.
You flip the switch and the lights go on; you adjust the thermostat and
you are cooler or warmer, and it just happens. There is no connection
between how we respond to the energy we have, whether it powers us,
heats us, cools us, it moves us. We do not think about it. We do not
connect the dots between what we are consuming and where from it comes.
[[Page S9266]]
As I explained to this group of young people, we get most of our
energy from the ground. It comes from underneath, whether it is oil or
whether it is natural gas that is extracted off our shores, say, in
Louisiana, or whether it is from our coal resources that we mine.
Sometimes that is not a particularly visually appealing thought, to
think that we have to dig it out, we have to drill it out, we have to
extract. But the fact of the matter is, we are energy consumers. We are
a nation that is dependent on our energy for what we do, for who we
are, for the strength of this Nation. If we couldn't move, if we
couldn't communicate the way we do, we would not be the Nation we are.
So it is important for us as Americans to realize, to appreciate, to
connect those dots and say, this is important to us. It is important to
us to have an energy policy that is comprehensive, that is sound, that
is balanced, that not only looks to the production from the traditional
sources, such as oil, gas, and coal, but looks to the production from
the sources for the future in the renewables, in the alternative
sources of energy. That also has as a component of our energy policy
the conservation aspects, the efficiencies. This must be part of the
plan.
That is what this Energy bill we have before us is and does. It is
comprehensive in those ways.
The point has been made tonight that we have done nothing in this
Energy bill that is going to bring down the price of gasoline at the
pump tomorrow. I am not going to stand before you tonight and say that
if we pass this legislation tomorrow and if the President signs off on
this in the next couple of weeks the American consumer is all of a
sudden going to see the price of gasoline drop at the pump. I cannot
make that promise, and I would be foolish to do so. We know that is not
going to happen just because we enact this bill.
Here is the point: If we had done this 8 years, 10 years ago, 5 years
ago when we had been working on energy policies over this period of
time, perhaps we would not be at this point where we are paying $2.40
at the pump, as we are paying in my hometown of Anchorage right now.
Perhaps we would not be at this point if we had enacted an energy
policy some years prior to this. But we did not, and we are here now.
Now we have an opportunity to do something, to move forward with a
policy that does make some sense. So we have to start somewhere. We
have to put in place the procedures and the mechanisms that will work.
We have to understand that we cannot expect an immediate fix. We did
not get to $2.40 a gallon gasoline overnight. We are not going to
remedy it overnight. So our expectations need to be realistic.
As the Senator from Tennessee said when he was talking about natural
gas, one of the things we will see through what we are putting in place
with this legislation is a stabilizing effect, hopefully, with our
natural gas prices as we are able to provide for those incentives and
encourage more LNG facilities around our coasts so we can get more of
the natural gas into this country. Those things have to all start
somewhere, but the recognition is let's be realistic in terms of when
we are going to see the results.
People want to know, What does it mean to me today? We need to
appreciate the fact that we have to look to what it is going to mean to
us tomorrow. With the provisions we have put in place, hopefully we
will not see the blackout we had a couple years back. We have enhanced
the reliability standards of our electricity grids so that we are not
going to see that.
Points have been made on the floor tonight that what will come out of
this Energy bill is not a cleaner America. I challenge that absolutely.
The provisions that have been put in place, the incentives that have
been put in place, whether it is the clean coal gasification that will
work to reduce those emissions, to reduce the carbon, to make our air
more clean, our waters more clean--these are things we are putting in
place through the incentives. My colleague called them subsidies. The
fact is, when you are changing technology, when you are making things
different to make them better, to make them cleaner, to make them more
efficient, it is going to cost some money. Should we not help to make
it cleaner, to make it more efficient? That is what the incentives are
for. So let's work to make those happen.
Think about these processes. We have provisions in place for enhanced
oil recovery, and in my State of Alaska, we have some aging oilfields
out in the Cook Inlet. They have been producing and doing a darn fine
job for a couple decades, but these fields are declining. With the
technology and the processes now available, we can, through enhanced
oil recovery, through injection of the carbon dioxide, inject into
these aging wells, enhance the oil so that we get more oil from these
aging wells while we are sequestering the carbon. We have a win-win
situation. It is an environmentally more sophisticated and more helpful
process, and we are getting more of the energy source we are seeking.
It is through these types of technologies that we benefit, that we
proceed to win in so many different ways.
Again, I want to reinforce that what we will have an opportunity to
accept tomorrow is a comprehensive policy, a policy that has balance to
it, that is not totally loaded to the production side.
I come from a State where, quite honestly, we want to see additional
production coming out of the State of Alaska because we have the
resource there and we want to be able to help meet the Nation's energy
needs. But we know--I know--that is not necessarily the energy for the
long-term future of this country; that the direction we take is in the
area of renewables and the alternatives. We have to start. We are
making a start with this legislation.
It is not just a focus on production, it is the renewables, the
biomass, the geothermal, the solar, the wind, ocean currents; we have
ocean energy for the first time. Think about the possibility of
harnessing the currents in our oceans, the temperature differentials in
the ocean waters. There is so much potential out there.
Again, when we are talking about new technology and new processes, it
takes a little bit of money, it takes a little bit of help, and this is
where we can step in to provide that.
Senator Bingaman made a comment at the conclusion of his initial
remarks that we do not want to wait another 13 years to take up an
energy policy again. It is probably premature to be talking about the
next energy policy when we have not even concluded this one, but I
think we need to recognize that what is happening in this country now
and as we collaborate with other nations in clean energy research, the
technology changes so quickly--or we hope we can encourage the
technology to change so quickly--that we have to keep on top of this.
We have to have an energy policy that is current, that does look toward
tomorrow. So we want to make sure this is not the end of the
conversation, that once we conclude with the Energy bill, we close the
books and don't start looking at it for another 10 years. I am not
willing to do that, and I think most of my colleagues would be joining
me in saying we need to be constantly on top of and involved with this.
I want to comment before I conclude that there have been several of
my colleagues on the other side who have mentioned there is absolutely
nothing in this Energy bill that reduces our reliance on foreign
sources of oil, that, in fact, we become more dependent on foreign oil.
I do have to tell my colleagues, as one of the Senators from Alaska who
has been very focused on ANWR and opening ANWR, I am sitting back in my
chair here listening to this, scratching my head--scratching my head--
because they are saying to me we are not doing anything to reduce our
reliance on foreign sources of oil, we must do more domestically.
We have been saying we have a portion of the answer. Opening ANWR is
not going to make us not rely on foreign sources of oil. We know that.
But it can help us. Should we not be doing all that we can domestically
to help us?
I know the critics and that we are going to go into this argument in
September all over again so I do not need to take the body's time
tonight to dwell on these facts, but for those who say there is not
enough there to make a difference, the mean estimate coming out of ANWR
will be what we have been getting from the State of Texas
[[Page S9267]]
for the past 75 years. The mean estimate coming out of ANWR is what we
have received from Saudi Arabia for 25 years. That is not insignificant
amounts of oil. This can help us.
ANWR is not contained in this Energy bill, much to my dismay. The
House included it on their side. We know that in the Senate ANWR, when
it was tried to be placed in the Energy bill, was subject to a
filibuster. It was subject to a filibuster by some of the same
individuals who tonight have stood and said this Energy bill does not
provide for any lessening of foreign dependence on oil. Well, I would
like to suggest that this energy policy that we are about to vote on
tomorrow is one piece of what we need to look to as a Nation. The piece
tomorrow will be the piece that includes the focus on conservation, the
focus on renewables, alternatives, the focus on efficiencies.
Last year we were successful in moving forward the Natural Gas Act
that provided incentives for construction of the natural gas pipeline
coming out of Alaska, where we hope we will be able to provide to this
Nation a good source of domestic natural gas. That is a huge piece for
us. I would also like to think that before the end of the year we would
also be able to put into place the rest of the comprehensive energy
policy that would include oil coming out of a tiny sliver of the
Coastal Plain of Alaska's North Slope.
I publicly thank Chairman Domenici and the ranking member, Senator
Bingaman, of the Energy Committee. Both Senators did an incredible task
shepherding this legislation through the floor. Their staffs were
excellent. There was a great deal of hard work. It was a pleasure to
sit in my first conference and see the manner in which it was
conducted. It was a very open, very respectful deliberation of some
very difficult issues conducted by the Members on our side as well as
Chairman Barton from the House side. It was a pleasure to be a part of
it. I am proud of the product that has come out of this body, and I
urge the Members' support.
I yield the floor.
The PRESIDING OFFICER. The Senator from New York.
Mr. SCHUMER. Mr. President, I rise in opposition to this Energy bill.
Even though I am opposed to the bill, I first want to pay my
compliments to both Senators from New Mexico, Mr. Dominici and Mr.
Bingaman, for the work that they have done. While I am opposed to the
Energy bill for a variety of reasons, which I will elucidate in a
minute, it was Senator Bingaman and Senator Domenici who worked very
hard to make the bill better.
The bill that left the Senate was considerably better. I thought the
House bill could not have been much worse. The bill that comes back to
us obviously is somewhere in between. Without the efforts of the two
Senators from New Mexico, it would have been considerably worse.
I want to say one other thing. It was of monumental strength that the
odious MTBE provisions that the House had clung so steadfastly to, that
brought the bill down last time it came around, are not in the bill.
That is because the Senate, on the Democratic and Republican sides,
hung tough. The MTBE provisions were a disaster. To reward polluters
and stick taxpayers who had lost their supplies of drinking water with
a bill for what had happened would have been a disgrace. To pay the
MTBE companies over $2 billion because they could no longer sell as
much of their product as before was doing what we do for very few
businesspeople who produce far more worthy products.
So I want to compliment my two colleagues for knocking out that
provision. It is the reason we are sitting here with a conference
report.
Let me talk about one provision in the bill that bothers me greatly
but then talk about what bothers me more than that because what bothers
me most is not what is in the bill but what is not in the bill. What is
in the bill is an ethanol provision that will force people on the
coasts, States that do not grow much corn, to buy ethanol whether they
need it or not. I understand the need to help agriculture. I have voted
for many of those types of provisions myself. I know the dairy farmers,
apple growers and cherry growers in New York State, and they do need
some help. I am not adverse at all to the Government helping. But this
``Gyro Gearloose'' way of helping the corn growers of the Middle West
by foisting the costs upon drivers, particularly on the east and west
coasts, at a time when gasoline is already $2.30, $2.40 or $2.50, makes
no sense.
We want to keep the air clean, and we need to make sure that gasoline
burns, but there are many ways to do it, not only with ethanol or
MTBEs. To require the refiners throughout the country to use MTBE or at
least pay for MTBE, even when they are not going to use it, is a
disgraceful subsidy. We already subsidize ethanol heavily, and it is
very unfair to do it.
If one wants to encourage ethanol, I have no problem with encouraging
the creation of ethanol plants in places such as New York or maybe
Nevada, where there is not much ethanol now. The real cost of ethanol
is not in making it but in transporting it. While it is dubious, recent
studies have shown that the energy cost into making ethanol exceeds the
energy benefit into using it as a substitute for gasoline. Nonetheless,
growing it near the source of use would make it far more efficient. I
am very regretful that it is in here.
New York drivers will pay 5, 6, 7 cents a gallon more than they have
to because of this ethanol provision. It is unfair to make the
salesperson in Rochester who drives 500 or 600 miles a day and has
enough trouble earning a living pay a direct subsidy to a corn grower
in Iowa, however much that corn grower needs help. It is not a way to
do business, and yet that is what we have done here.
So the ethanol provision is rotten. The ethanol provision is a
boondoggle. The ethanol provision occurs only because of the political
power of the ethanol makers and the growers of corn in the Middle West
and some other parts of the country, not because it is right. It is
indefensible on the merits. It should not be in the bill.
Having said that, what bothers me even more is what is not in the
bill. I love this country, and I try to think what could make this
country decline, what has made other great powers decline, whether it
is the Roman Empire or Great Britain in the 19th century. When one
reads history, it is that they became so preoccupied with enjoying
things day to day that they were unable to look beyond the horizon a
little bit and try to solve problems that might be upon them 5 or 10
years down the road. That is exactly what we are doing with energy.
Our dependence on foreign oil, our lack of being able to solve our
growing energy needs is a crisis in the making. It is not a crisis
today, but it is going to be a crisis 5 and 10 years from now. Even
now, energy costs are akin to a slit on the wrist. We slowly bleed and
it weakens our economy.
Yet, in this bill, we do some things but not close to enough, and
nothing major and nothing of vision to reduce our dependence on fossil
fuels in general and imported fossil fuels, in particular.
Conservation--we know that we should do both things. I do not disagree
with the far left or the far right. The far left, conserve only, get
rid of fossil fuels; far right, produce more oil, forget about
conservation. We should be doing both. I am not adverse to better
utilizing fossil fuels, to figuring out coal gasification, even to
looking at oil and gas reserves off our coasts, if it is done in a
careful and pro-environmental way, as it was done when we sold some
tract in the east Gulf several years ago.
Conservation has to be part of any plan to reduce our energy
dependence. CAFE standards, not in the bill; major incentives for
conservation, not in the bill, even mild provisions, such as the
Senator from Oregon offered to raise CAFE standards a mile per gallon a
year were rejected. That is because of the cloud of the big three auto
companies in America and, frankly, I regret to say, the unions that
serve them. They have been arguing for the status quo for years. For
that reason now, I hate to say it but foreign automakers are again
overtaking them.
We have to look to the future. I am happy to help our auto industry
with new incentives to figure out ways to burn less fossil fuel and
have alternative sources, but we are not doing it. It is no good for
the auto companies, it is no good for the autoworkers, and it is no
good for America.
So conservation is not in the bill, nor is a dramatic program to
reduce our
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energy independence. There are some subsidies here and there for wind
power, solar power and biomass. There are subsidies for coal, gas and
oil. But the emergency that we face to really engage in crash programs,
to use hydrogen better, to use fuel cells better, to find other
alternatives, is virtually a necessity or will be a necessity 5 years
or 8 years from now, lest our economic vitality continue to be sapped.
It is amazing to me that China, a country not regarded for its fealty
to the environment, has stronger CAFE standards, stronger incentives
for alternatives to gas and oil than we do. That is a sign that this
great American experiment, this noble experiment, as the Founding
Fathers called it, may be at least in this area losing its bearings. If
we are more interested in providing immediate subsidies to the powerful
few in the energy industry who are around us than figuring out a grand
plan to reduce our dependence on foreign oil and on fossil fuels in
general, we are not serving the people of America.
The amazing thing is I think the people of America are ready for a
vision, if we look at all the surveys, finding a way to be independent
of imported oil.
I ask unanimous consent for an additional 5 minutes.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. SCHUMER. Dependence on foreign oil gets our foreign policy
twisted in a knot, which, of course, saps our country of wealth every
minute, every second, 365 days a year, and the American people want
some change. They are willing to make some sacrifice and tighten their
belts. As China is ahead of America in this area, the American people
are ahead of this Congress. Again, we seem more concerned with feeding
particular special interests, some good, some bad, than we do with
coming up with a vision as to how we are going to reduce our energy
independence.
So is this bill an evil, horrible bill? No. The ethanol provision is
odious, but the bill on balance may take a small, few steps forward,
but not close to what is needed. I cannot think of an area, in a large
policy way, where the needs and the political possibilities are not far
ahead of what we have done tonight.
I regret to say I am going to vote against this bill, not only
because of the ethanol provisions in it, but because at a time
demanding vision, at a time demanding foresight, at a time demanding an
effort to solve problems that are only problems today but could become
crises 5 years from now, we have done mostly the prosaic, the mundane,
the expected. That is not what a great power does. That is not what
true leaders do. That is what this bill does.
So despite my respect for the leaders of the bill and the wonderful,
harmonious way in which they worked, I have to say, to me, this bill is
a serious disappointment and I have no choice but to vote against it
tomorrow.
I yield the floor.
Mr. CORZINE. Mr. President, I rise to express my opposition to the
energy conference report. I thank the managers of the bill, the two
Senators from New Mexico, for their diligent effort in putting together
an energy bill. While I cannot support the final product, I respect
that they have made every effort to make this a bipartisan process and
I thank them for their leadership.
I voted against the Senate energy bill last month because it
inadequately addresses several major priorities that should be included
in a sound energy policy--reducing U.S. dependence on foreign oil,
implementing CAFE standards, decreasing greenhouse gas emissions that
cause global warming, and protecting the coastline from offshore energy
drilling.
Unfortunately, the bill has only become worse in conference and
amounts to a missed opportunity to create an effective comprehensive
energy policy. This bill does not do enough to lead this Nation toward
energy independence and energy security.
The bill also does not address an issue that faces Americans daily--
soaring gas prices. A a time when gas prices are skyrocketing and our
dependency on oil is steadily increasing, we are voting on a bill that
the President himself has said will do nothing to address those prices.
The people of New Jersey, and in fact this Nation, deserve a bill that
tackles this problem. I'm sure all Americans will be disappointed to
know that instead of helping them at the gas pump, the bill provides
giveaways to the Nation's fossil fuel industries.
To truly make a dent in our energy independence, we need at least a
savings of three to five million barrels of oil per day, yet this bill
does not include any oil savings provision. Furthermore, this bill
misses an opportunity to effectively reduce this Nation's oil use by
increasing the fuel economy of passenger vehicles. Indeed, improving
fuel efficiency, or CAFE, standards is not only a cost effective way to
improve our energy security, but it would be instrumental in reducing
soaring greenhouse gas emissions. During the debate on the Senate
energy bill, Senator Durbin proposed an amendment that would have
raised CAFE standards and closed the SUV loophole, both of which would
save this country over 101 billion gallons of oil by the year 2016.
In addition, the bill does not do enough to encourage the use of
renewable energy sources. One of the few good provisions of the Senate
energy bill was the ten percent renewable portfolio standard. My home
State of New Jersey has been a leader in the area of renewable
portfolio standards as it already has a 20 percent RPS. It is about
time that the rest of the Nation follow suit. A Federal RPS is a
crucial step in weaning this country from its dependence on foreign oil
sources and I am disappointed that this conference report excludes this
provision.
The bill also includes a seven and a half billion gallon ethanol
mandate. Those in favor of an ethanol mandate claim that it will
enhance U.S. energy security. In fact, increasing the renewable fuel
standard would not significantly reduce U.S. oil imports because each
gallon of gasoline blended with ethanol to make gasohol has less energy
in it than regular gasoline. Therefore, we need increased petroleum
product imports to make up that energy loss. In addition, producing
ethanol requires a significant amount of fossil fuel. Worst of all, the
ethanol mandate amounts to a new gas tax for my constituents. With the
cost of living in New Jersey being one of the highest in the Nation and
gas prices at an all-time high, an ethanol mandate is not acceptable
for New Jerseyans.
I am also extremely disappointed that energy conferees voted down an
amendment in conference that would have stricken the seismic inventory
of the Outer Continental Shelf. This seismic inventory is paramount to
opening the door to drilling off the coast of New Jersey. This is a
crucial issue for the state of New Jersey.
My State is the East Coast hub for oil refining and with three
nuclear power plants, many traditional power plants, and hopefully an
LNG terminal in the near future. We have made these contributions to
energy production and we have made them without offshore drilling.
A seismic inventory threatens New Jersey's way of life. It is a
slippery slope toward drilling that threatens not only New Jersey's
environment, but also its economy. Drilling endangers New Jersey's
pristine beaches as well as jeopardizes the tourist industry, which
generates $5.5 billion in revenue for my State and supports 800,000
jobs. Furthermore, the seismic explosions put our marine life and
fisheries at risk. I made my opposition to undermining the moratoria on
drilling in the Outer Continental Shelf when I spent hours on the floor
during the Senate energy debate to defend against amendments that would
weaken the moratoria in any way. That effort was successful, but this
inventory that remains in the bill will weaken the current moratoria on
drilling, and I am very concerned about the potential consequences.
Another major issue that the energy conference report fails to
address is climate change--one of the most pressing issues facing our
planet today. The science makes it increasingly clear that that
greenhouse gas emissions caused by human activity are changing the
earth's climate. The rest of the industrialized world understands the
danger of this problem and the United States must catch up.
I have long been a proponent of legislation that would counter this
problem and encourage reductions of greenhouse gas emissions. My
advocacy on behalf of climate change legislation is not limited to the
current Congress.
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Senator Brownback and I led the way to passing a greenhouse gas
registry and reporting amendment to the Energy Bills in the 107th and
108th Congresses. The current voluntary programs encourage reductions
from only a small group of industry leaders, and have little to no
effect on most of the economy. Despite these well-intended programs,
greenhouse gas emissions have risen on average one percent per year for
the last several years. Our Nation can do better.
The potential effects of global warming are dire for my State. If we
do not control climate change, New Jersey could face a receding
coastline along the shore, loss of habitat in our beautiful beach towns
like Cape May, and more extreme weather events such as storms and
flooding. Similar to the effects of the seismic inventory, this
devastation would directly affect New Jersey's economy. If our beaches
are threatened, and our coastline damaged, New Jersey will see an
economic impact of catastrophic proportions. Our second largest
industry, tourism, will be devastated.
This is an issue for New Jersey and the rest of the United States,
but it is also an issue for the world. Unless Congress acts, the
effects of global warming may be devastating to the worldwide economy
and environment.
Finally, while the bill does not include the MTBE liability provision
that has stalled past energy bills, it does include a provision that
moves MTBE claims from State court to Federal court when the claims are
based on State tort law, nuisance law, or consumer law. This provision
amounts to backdoor immunity for MTBE producers by unfairly depriving
injured parties and their representatives of their right to have their
claims heard in their State forum. This language could even derail many
legal claims entirely, effectively shielding those companies
responsible for MTBE contamination from their full financial liability
for the damages they have caused. This is unacceptable.
I voted against this bill when it was in the Senate with the hope
that it would have been improved in conference. Unfortunately, the bill
has only been made worse. A sound energy bill must move this country
toward energy security and independence. This bill does not come close.
I must, therefore, vote against this conference report and urge my
colleagues to do the same.
Mr. SALAZAR. Mr. President, I rose earlier to discuss my general
thoughts regarding the Energy bill conference report. I now want to
take an additional moment to provide my thoughts regarding a specific
provision in this conference report.
I am pleased the conference report includes provisions that will help
some of our most vulnerable citizens, low-income energy consumers.
While we need to protect against energy price volatility to protect our
economy, industries and households, nobody is harder hit by high-energy
prices than low-income energy consumers.
The conference report increases the authorization for the Low-Income
Home Energy Assistance Program, LIHEAP, from $2.0 billion to $5.1
billion to reflect the increased demand for energy assistance due to
high energy prices. At current funding levels, LIHEAP serves less than
15 percent of the eligible population. The increased funding
authorization is much needed. I hope we can also increase
appropriations to meet this increased demand for energy assistance.
The conference report also contains a provision originating in the
House bill that authorizes the Secretary of Interior to begin a new
program to assist low-income energy consumers. Section 342 of the
report authorizes the Secretary to grant a ``preference'' to low-income
energy consumers when disposing of royalty in kind gas.
This provision originated from a constituent of mine, John Harpole,
who is the president of a natural gas production company and also an
advocate for low-income energy consumers. Pursuant to this
authorization the Secretary of Interior may begin a demonstration
program that would provide royalty in kind natural gas to low-income
energy consumers at below market cost. In order to do so, the Secretary
could enter into agreements with natural gas distribution companies to
provide them natural gas at below market value as long as they
guarantee such gas will be delivered to low-income energy consumers. In
practice, the transfer would occur through accounting mechanisms, not
the actual exchange of natural gas molecules.
The specific details of the demonstration project will be worked out
through a public and transparent process that will include the public
and all interested parties. The benefits provided under this section
are intended to supplement and not supplant funds otherwise provided
under the Low-Income Home Energy Assistance Program. Finally, the
Secretary would be required to issue a report to Congress on the
effectiveness of the program, with specific recommendations for
modification. I look forward to working with you and the Department of
Interior to implement this program.
Mr. President, America has an energy problem. We waste tremendous
amounts of energy, and that keeps prices high. We continue to consume
more energy than we produce, and that means our oil imports keep going
up. And the more we are held hostage to foreign oil, the more our
national security is impacted.
I recognize that the energy conference report represents a compromise
between competing House and Senate approaches to addressing our
Nation's energy needs. As with all compromises, the report is not
perfect. Much remains to be done to promote energy independence and
increase our national security. But even so, this Energy bill is an
important first step forward, and I support its final passage.
I am very pleased with many aspects of the Energy bill. The bill
retained incentives for new, cleaner coal technologies, and incentives
for energy efficiency and conservation. It improves electric
reliability standards and provides much needed regulatory reform. It
contains incentives for the production of wind and other renewable
energy, and it contains a strong renewable fuels standard to promote
the production and use of American-grown renewable energy sources such
as ethanol and biodiesel.
By beginning to address our Nation's need to develop additional
sources of energy and to reduce our consumption of fossil fuels, the
Senate's bipartisan work on the Energy bill was more comprehensive and
more forward-thinking than the final version agreed to in conference. I
am disappointed, for example, that the House and Senate conferees did
not retain the Senate's national renewable energy standard, and that
other strategies for reducing our dependence on foreign oil are not
included in the final bill. Conferees also decided to take a more
aggressive stance on oil shale development than I and my Senate
colleagues had advocated, and they rolled back certain environmental
protections. These changes could significantly impact Colorado's
Western Slope, and I will monitor the implementation of both provisions
closely.
Because there is so much more that we must do in this country to
ensure greater independence from foreign oil, I am going right back to
work. I believe strongly that we must reduce America's dependence on
foreign sources of energy, particularly our dependence on foreign oil,
and that we must do more to protect the environment. Greater energy
independence is vital to protect our national security. Energy
independence is also good for Colorado's economy--we are home to the
National Renewable Energy Laboratory, NREL, and to countless companies
and entrepreneurs working on developing alternative fuels, including
wind, biofuels, solar, and many, many other clean energy technologies.
In the Senate, I will continue to work hard to establish a viable
national renewable energy standard, to promote oil savings, to adopt a
responsible climate change policy, and for increased production of
renewable fuels. I will also continue to work on cost-effective
measures that will help us achieve greater energy efficiency and
conservation. I look forward to working with my colleagues in the
Senate on these and other priorities for Colorado.
Mr. CORNYN. Mr. President, I rise to commend the conferees who have
been meeting over the last few weeks to complete this comprehensive
energy legislation. In particular, I want to thank the chairmen and
ranking members of the House and Senate committees for their leadership
in guiding this
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highly complex and important legislation through the process. Congress
has tried several times to approve a comprehensive energy bill. Under
their wise guidance and counsel, I believe that we will be successful
this time. It is critical that we provide the country with the
resources and tools to meet our growing energy needs and this bill will
go a long way in accomplishing that goal.
There are many good and worthy provisions in this legislation. In
broad terms, having a national energy policy will enable the country to
more effectively utilize our resources to reduce our dependency on
imported oil. It will enable us to diversify our sources of energy with
renewable fuels, develop resources like nuclear power in the future and
conduct research into hydrogen fuel cells. The bill recognizes that we
need to develop ways to utilize one of our country's largest resources,
centuries worth of coal deposits, and develop ways through research to
burn it cleanly so it doesn't contribute to pollution and harm our
environment.
However, I must express my disappointment that many of the provisions
dealing with MTBE were not ultimately included in the final bill. As a
lawyer and a former judge, the issue of liability is an issue that is
near and dear to my heart. That we are denying liability protection to
MTBE producers is disturbing to me. When Congress set out to encourage
clean air by passing the 1990 Clean Air Act Amendments and passed a
particular fuel standard, Congress knew that MTBE would be widely used
to satisfy the standard. As a result, manufacturers produced and
marketed MTBE to satisfy the Congressional standard. Now, manufacturers
face significant lawsuits solely because they produced a product that
Congress encouraged them to produce.
Manufacturers did not make mistakes in production, they did not cut
comers in an attempt to increase profits, and they did not try to trick
consumers. All they did was exactly what Congress wanted them to do. It
is only fair that any fuel producer who responds to a congressional
mandate should be protected against legal action based upon the use of
that mandated product. No one should be penalized for obeying the law.
I am disappointed that there was a failure to address this issue.
Texas is proud of its heritage as an energy producing State. Texas
will continue to play a vital role in providing for the Nation's energy
needs. Even in light of my disappointments with the bill, I believe
that this legislation provides strong leadership and guidance to
address the critical energy needs of our country.
Mr. HARKIN. Mr. President, we have before us today an opportunity to
chart a new course for the Nation's energy future.
The energy bill includes vitally important measures to boost
renewable energy and energy efficiency, to improve our electricity
grid, and to protect consumers from bad corporate actors like Enron.
I am very pleased that it includes the lion's share of the renewable
fuels standard bill I introduced earlier this year with Dick Lugar and
many of my colleagues. This is an accomplishment of historic
proportions. Oil refiners will be required to blend 7.5 billion gallons
of ethanol and biodiesel annually by the year 2012--more than twice the
current rate. This RFS is 2.5 billion gallons higher than what was in
the House bill. Obviously, this is great news for farmers, biofuels
producers, and the rural economy in Iowa and throughout the country. It
is the single most important provision in the bill, certainly in the
near term, to displace ever increasing amounts of foreign oil that we
import into this country. The RFS is a big step in the right direction
and I am very proud to have helped get it done.
I am also excited that the ``bioeconomy'' amendment I authored with
Senators Lugar, Obama, Coleman, and Bayh was included in the bill. It
gives a real boost to biomass R&D to expand the production and use of
biobased fuels, chemicals and power. It provides grants to small
biobased businesses to get their products into the marketplace. It will
increase purchases of biobased products by the Federal Government by
extending the farm bill's biobased purchasing preference to Federal
contractors and the Capitol complex. In short, with appropriate
funding, it will make it possible to convert much more biomass--corn,
soybeans, wheat, and other crops--into petroleum substitutes for
everyday use in our homes, businesses and vehicles. And we will do it
without negatively impacting our abundant food supply.
The RFS, complemented by these biobased initiatives, will be a heck
of a one-two punch for our farmers, small businesses and rural
communities.
I am also very pleased that the final bill extends the wind
production tax credit, and that it includes my amendment to allow
farmer-owned co-ops to pass on this tax credit to individual members of
the co-op. The biodiesel tax credit extension is also a valuable asset
in the bill. So is the tax credit for the installation of new E-85
pumps. I have pushed for all of these provisions for some time. The tax
incentives for renewable energy and conservation, while less than
needed, still represent a major boost for clean energy.
The energy bill we will soon vote on is by no means perfect. It drops
several of the Senate's best bipartisan provisions to reduce our
dependence on fossil fuels and foreign oil--the Renewable Portfolio
Standard, and the oil savings amendment, in particular. These were
common sense provisions that should have been included. It is a
terrible mistake not to have done so.
The bill also does too little to improve fuel economy and address
climate change. It lavishes tax breaks to oil companies reaping record
profits from $2+ a gallon gas, and spends more reviving a nuclear
industry that has never proven cost-effective and has not solved the
problem of nuclear waste. It also includes some very questionable
environmental provisions to aid oil and gas companies.
Like I said, not a perfect bill, but it is a start, and we can thank
the bipartisan process that was taken in the Senate for that. The
challenge now will be to take the next steps toward a truly sustainable
energy future--one that our farmers, who are increasingly at the
forefront of the country's clean energy strategy, can help lead. I will
continue to work to make this a reality.
When we draw our energy from the corn and soybean fields of rural
America rather than the oil fields of the Persian Gulf, we do four
things: We increase America's energy security; we boost our rural
economy; we create a cleaner environment; and we put downward pressure
on prices at the pump. That's why I intend to vote for this bill, and I
hope many of my colleagues will follow.
Mr. REID. Mr. President, I rise today to congratulate Senators
Bingaman and Domenici for their hard work to develop a bipartisan
energy bill over the last several months.
When the energy bill came to the Senate floor, Democrats had one goal
in mind: enhance our national security by moving America toward energy
independence.
Together, we were able to achieve some our goals: a renewable
electricity standard, the 3-year tax credit for renewables, oil
savings, global warming, and a Federal ban on MTBE. That's why I voted
for the Senate energy bill.
Unfortunately, despite our best efforts of our Senate negotiators,
the conference rejected all these provisions. I sincerely hoped to have
been able to vote for the energy bill conference report. I cannot
support the bill.
I truly believe we have missed an incredible opportunity to establish
a renewable electricity standard, provide help to consumers facing
record prices at the gas pump and, most importantly, to reduce our
dependence on foreign oil.
For these reasons, I will vote against the energy bill conference
report.
Mr. BINGAMAN. Mr. President, I would like to comment on two specific
provisions of the conference report. I am pleased that the provisions
contained in the conference report on hydroelectric relicensing,
section 241--Alternative Conditions and Fishways, have been improved
over the provisions contained in both the House and Senate bills. I
continue to have concerns that the new process for alternative
mandatory conditions and fishway prescriptions will add complexity and
delay to the process. The requirement that the resource agencies afford
all parties an opportunity for an on the record trial-type hearing on
material
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issues of fact could prolong these proceedings. However, I understand
that the intent behind the provision is that these not be lengthy
hearings. Rather they are to afford an opportunity for a review of
narrow issues of fact, and not a review of the application of the facts
or the decisions based upon them.
I am pleased that the provisions allow all parties to the
proceedings, including States, tribes and third parties, to participate
equally. I understand the conference language ensures that the heads of
the resource agencies retain discretion to employ scientific data and
other information submitted by any of the parties to licensing or
relicensing proceedings in determining what conditions will provide for
adequate protection and use of tribal lands and what fishways are
needed for the protection of fishery resources for which the United
States has a legal or trust responsibility to preserve and protect on
behalf of Indian tribes. I also am satisfied that the conference
language preserves the principle that Indian lands and fishery
resources held in trust by the United States, or for which the United
States has legal responsibility, will continue to be protected and
preserved in a manner consistent with the provisions of the Federal
Power Act of 1920 and subsequent rulings of the Federal courts that
reaffirm these protections for tribal lands and fishery resources.
Finally, I understand the motivation behind these provisions to be an
effort to improve the cost-effectiveness and efficiency of conditions
and fishways--and not to be an opportunity to undermine the conditions
and fishways that resource agencies determine are necessary for the
adequate protection of federal reservations and fish resources. I
expect that the resource agencies will carry out these provisions with
this intent in mind.
Mr. President, section 354, Enhanced Oil and Natural Gas Production
Through Carbon Dioxide Injection grants the Secretary authority to
provide royalty relief in order to achieve the dual purposes of the
section, which are both to promote the capturing, transporting, and
injection of produced carbon dioxide, natural carbon dioxide and
``other appropriate gases or other matter'' for sequestration, and to
promote oil and gas production by providing incentives to undertake
enhanced recovery techniques using injection of these substances. It is
my understanding that the provision is intended to encourage the
sequestration of greenhouse gases, and the ``other gases or matter''
referred to are gases and matter that fall within that definition. I
understand the intent to be that any royalty relief under this section
be made available only where doing so achieves the dual purposes of
benefitting the environment through sequestration of greenhouse gases
while also bringing about enhanced recovery.
BLM Cost Recovery
Mr. THOMAS. Mr. President, I would like to commend Senator Domenici,
chairman of the Committee on Energy and Natural Resources, and Senator
Bingaman, the ranking Democrat, and all the Senate conferees for their
excellent work on a number of areas in the conference report agreement
on H.R. 6, especially those relating to processing of energy permits. I
would like to point out one particular provision that will provide a
basis for future work to ensure more energy supplies from Federal
lands.
Section 365 of the H.R. 6 conference agreement outlines a multistate
pilot program to improve coordination of energy permit processing in a
number of Western States. That section includes a provision to allow a
share of the money from Federal oil and gas lease rentals to be used by
the Department of the Interior's Bureau of Land Management, BLM, and
other agencies to ensure adequate resources for processing and
considering applications for permits necessary for natural gas and oil
drilling and other operations.
As the conference on H.R. 6 was getting underway, the BLM released a
proposal that, if implemented, would begin charging fees for permit
processing. Called a ``cost sharing'' proposal, it was really a ``cost
shifting'' one. And it came at a time when Federal revenues from
leasing and production of Federal oil and gas as a result of such
permits being issued total approximately $1.8 billion each year.
In one Wyoming office alone the proposed fee which could be as high
as $4,000 for a single application would generate $11 million, far in
excess of the office's total oil and gas program budget. I would prefer
that producers put this money back into the communities where they are
doing business and expand their investment to produce more energy.
In the strong belief that the Federal Government has a responsibility
to budget and pay for advance environmental work and consideration of
the permits necessary to explore and produce on its leased acreage,
Senator Hatch and I filed an amendment to prevent the BLM from
instituting fees during the period of the permitting pilot program. I
was pleased that the House conferees joined my Senate colleagues in
approving that amendment.
Now that the Energy bill conference agreement is before us, I hope
that my colleagues will agree that in the future we need to provide
adequate Federal funding for energy permitting, and that we should
continue to prohibit attempts to shift Government costs to the private
sector as was attempted by the BLM.
Mr. HATCH. If the Senator will yield, I would like to associate
myself with his remarks and make an additional point. As a sponsor of
the Energy bill amendment, I want to make clear that even though we
were able to stop the specific proposal on fees for processing of
applications for permits to drill during the pilot program relating to
such permitting, the BLM should understand that our concern is with the
broader issue of cost shifting. We would be as concerned if BLM
proposed to shift the permitting burden for any fluid or solid mineral
leasing or permitting to those who are already required to pay for
their Federal mineral rights through bonuses, rents and royalties. I do
not want to see additional attempts to shift costs in this manner.
Mr. CRAIG. Will the Senator yield? In listening to this discussion
and the points being made by my colleagues, I agree that we should not
be shifting costs as BLM apparently proposed. Nor should other charges
and fees for other energy and mineral permitting be put forward. We
want our companies to put that money in the ground, not in the Federal
Treasury with no guarantee that any of it will be spent on better
energy permitting.
Surely out of the $1.8 billion already being received from industry's
exploration and development of Federal oil and gas resources alone we
can fund the planning, environmental, permit processing and other
responsibilities of the Federal Government.
I am pleased that my colleagues were successful in amending the
energy conference agreement to stop the cost sharing proposal and
commend them for doing so.
I would also like to point out that as chairman of the Energy and
Natural Resources Subcommittee on Public Lands and Forests, I plan to
hold hearings this Congress on Federal lands energy and mineral access.
As part of that hearing, I intend to find out more about the ability of
our Federal agencies to process leasing, drilling and other
applications in a timely manner. Delaying permits is the same as
delaying energy and mineral supplies to those who need them.
In addition, shifting costs to those who need the permits for any of
these activities is also a way of discouraging what needs to be done to
find and produce the supplies we need. As a result, I will be glad to
consider including this subject in our hearings.
seawater cooling systems
Mr. AKAKA. Mr. President, I would like to engage my friend from Iowa,
the chairman of the Finance Committee, as well as my friend, Senator
Baucus, the ranking member of the committee in a brief colloquy.
There is an important project under consideration in Hawaii that
would use deep seawater to cool buildings in downtown Honolulu. This
project may be funded, in part, by private activity bonds. I would like
to ask whether piping used to bring cold water from the ocean to the
distributional facility would be considered part of the local system
consisting of a pipeline or network, which may be connected to a
cooling source, providing chilled water to two or more users for
residential, commercial or industrial cooling as provided in section
142(g) of the Internal Revenue Code.
Mr. GRASSLEY. It is my understanding that if a traditional plant
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were constructed several miles from its customers, the network to
deliver cooling would qualify. It seems to me that piping used to draw
cold water from the ocean is analogous to piping used with respect to a
traditional cooling system and also should qualify.
Mr. BAUCUS. I concur with the chairman. The piping in this case is
integral to the delivery of cold water from the ocean to be used in the
chilling of residential, commercial and other buildings and therefore
should qualify for tax-exempt financing.
Energy Efficient Appliances
Mr. SMITH. Mr. President, with respect to the credit for energy
efficient appliances, section 1334 of the Energy Policy Act, I
understand that the dishwasher credit amount is based on a comparison
of changes to the Department of Energy's Energy Star specification for
its 2007 qualifying level as compared to the existing Energy Star
qualifying level for this product. In particular, the amount of the
credit for these products to be provided is determined, in that
section, by calculating the percentage increase in efficiency--measured
as an ``Energy Factor'' or ``EF''--from the 2005 Energy Star level to
the 2007 Energy Star level. The current Energy Star specification for
dishwashers is measured by EF. There is the possibility that the Energy
Star Program might change the metric for measuring efficiencies of
these products from EF to another measurement and this might create
confusion in the calculation and implementation of the credit. I would
like to ask the bill's manager if it is his understanding that the IRS
has the authority, in consultation with DOE, to establish an equivalent
level of efficiency for dishwashers in case the Energy Star Program
establishes an efficiency metric for these products that is different
than the current EF metric.
Mr. GRASSLEY. I agree with the Senator's understanding of the IRS's
authority to consult with DOE in this regard, and to establish an
equivalent level of efficiency for dishwashers for determining the
amount of the credit.
section 1503
Mr. SCHUMER. Mr. President, I rise today to engage my friend, the
Senator from New Mexico, who serves as the ranking member of the Energy
and Natural Resources Committee and who acted as the ranking Senate
conferee, in a colloquy regarding the conference report on the Energy
Policy Act of 2005. I thank my friend for his service in this body and
hard work on this bill, and particularly his efforts in resolving the
contentious issues surrounding MTBE remediation litigation. It is my
understanding that the language contained in section 1503 of the
conference report addresses this issue in a matter consistent with
current law on three vital fronts. First, it would in no way preclude
or abrogate the right of citizens and local governments to pursue all
available State and Federal remedies where there is environmental harm
and other injury that results from contamination of MTBE into
groundwater and public water supplies. Second, nothing in the language
will alter the substantive law that courts currently apply in these
cases and that they will apply to future claims. And finally, it is not
intended to provide Federal courts with exclusive or subject matter
jurisdiction or grant Federal courts jurisdiction over nonproduct
liability cases, such as environmental cleanup and cost recovery cases
involving general petroleum spills initiated by State governments and
private citizens. Rather, it is intended that under section 1503, cases
involving general spills will remain in State court, where many of
these cases are currently handled. Does the Senator from New Mexico
share my understanding of this language and its intent?
Mr. BINGAMAN. Mr. President, I share the understanding of the
language expressed by my friend from New York.
Mr. SCHUMER. I thank the Senator from New Mexico for sharing his
understanding of section 1503.
Mr. BINGAMAN. Mr. President, the joint explanatory statement
accompanying the conference report on the energy bill is noteworthy for
its brevity, but somewhat short on explanations. The managers simply
did not have time to say more than we did if we were to file the
conference report in time for both the House and Senate to act on it
before the August recess.
As a result, the statement of managers omits explanations of several
important provisions that many of us believe are key to understanding
the agreements we reached on these issues and the meaning of these
provisions. In some cases, specific text had already been negotiated
and agreed upon for inclusion in the managers' statement, and the
assurance that the agreed upon text would be included in the managers'
statement was a critical component of the compromise reached on the
legislative text.
Would the senior Senator from New Mexico, as the chairman of the
Senate conferees, be willing to put these explanations on the record
for the information of all Senators?
Mr. DOMENICI. Mr. President, I would be happy to. Senator Bingaman is
correct. We had agreed upon text for insertion into the managers'
statement on a number of provisions, but it was left out in order to
file the conference report in time for us to complete our work this
week. I agree that those explanations should be placed on the record
for the information of all Senators.
Mr. BINGAMAN. The first of these explanations relates to section 210,
which establishes two grant programs to improve the use of forest
biomass for energy production. Section 210 was included in response to
Federal land managers and other experts that have recommended removing
some of the slash, brush, pre-commercial thinnings, and other non-
merchantable wood and plant material from many of our forests to
improve forest health and reduce the threat of uncharacteristic
wildfire.
One hurdle that must be overcome is that in many regions of the
country there currently are few economically viable enterprises using
this type of biomass. If a viable market for these materials existed,
the ultimate cost of forest restoration treatments would decrease as
landowners who currently pay to have this biomass removed could sell it
at a profit.
During the conference, we deliberated about the potential for the
grants authorized by these programs to adversely affect current and
future markets for using such material for other value-added products
that are not provided grants through these programs. Along with biomass
energy, alternative markets are a critical element of the effort to
make forest health treatments cost-effective. This was a significant
concern, was it not?
Mr. DOMENICI. Senator Bingaman is correct. Section 210 was
specifically drafted to address the concern he identified by focusing
on nonmerchantable biomass that would not otherwise be used. It was our
intent that the Secretaries implement the grant programs with
sensitivity to alternative uses--both current and future--for the
byproducts of preventive treatments, to the affects of other grants or
support for encouraging the use of forest biomass that are provided
pursuant to any other authority, and to the potential for alternative
uses to provide a greater return to the taxpayer in the long run.
Mr. BINGAMAN. Mr. President, the second of these issues relates to
oil and gas leasing in the National Petroleum Reserve in Alaska. The
Naval Petroleum Reserves Production Act of 1976 established the
National Petroleum Reserve in Alaska. Four years later, the Department
of the Interior Appropriations Act for Fiscal Year 1981, Public Law 96-
514, directed the Secretary of the Interior to open the Reserve to
competitive oil and gas leasing, subject to specific terms and
conditions.
Both the House bill and the Senate amendment transferred the
competitive leasing program in the appropriations act into the Naval
Petroleum Reserves Production Act. The Senate amendment went further,
however, by requiring the Secretary of the Interior to prevent, to the
maximum extent practicable, and to mitigate, adverse effects from
leasing and development activities. The conference report omits this
additional Senate language.
It is my understanding, however, that the Senate language was omitted
because the Department of the Interior is already interpreting the
standard in existing law in the manner set forth in the Senate
language. For that reason, the conferees decided that the language was
unnecessary. Is that the case?
[[Page S9273]]
Mr. DOMENICI. The Senator is correct. It is my understanding that the
transfer of the matter under section 347(a)(2) does not affect or
otherwise modify the standard for activities undertaken pursuant to
Public Law 96-514. The Senate included language in section 107(b) of
the Senate bill relating to mitigation of adverse effects that the
managers have not adopted as unnecessary. It is the understanding of
the managers that the Department of the Interior is interpreting the
current standard in the manner set forth in the Senate language.
Mr. BINGAMAN. Finally, the conference report contains an entire title
designed to help Native Americans promote the development of tribal
energy resources, including an innovative program of tribal energy
resource agreements. Would the distinguished chairman of the Senate
conferees comment on this title?
Mr. DOMENICI. I would be happy to, Mr. President. The managers
recognized the large supply of energy resources existing on Indian
lands, as well as the desire of many Tribes to increase access to those
resources. The Indian Energy title is designed to provide economic
development opportunities to Indian tribes by assisting and empowering
them to develop and utilize tribal energy resources in a manner that
meets the needs of Indian country and the Nation as a whole.
The title will also continue and strengthen efforts to improve access
to electricity for native people who are ten times more likely to be
without such access than their counterparts residing outside of Indian
reservations. Of particular note, is the creation of a new Office of
Indian Energy Policy and Programs within the Department of Energy that
is dedicated to working with Indian tribes on energy development
matters.
The Title also creates a new program in section 503 related to energy
leases, agreements, and rights-of-way on tribal lands that continues a
policy of promoting tribal self-determination while preserving the
trust relationship between Tribes and the Federal Government. The
leases, agreements, and rights-of-way section preserves the full
application of Federal environmental laws while authorizing eligible
Tribes to approve individual energy projects without duplicative
Federal approvals.
The title contains several other provisions, all of which the
managers believe will provide significant benefits to Indian country.
Mr. BINGAMAN. I thank Senator Domenici for placing these explanations
in the Record.
Mr. President, before I yield back the remaining time, since I see
there are no additional Senators waiting to speak, unless there are
some who appear, I want to take a few minutes to thank committee staff
for the excellent work that went into the development of this bill. We
have had superb staff work here in the Senate on the Democratic side
and the Republican side. I particularly want to single out the staff
members on the Democratic side who have worked so hard, over many
weeks, months, and even years in the development of this legislation.
To the extent this work product is a step forward, it is a result of
their hard work and their commitment, and clearly this is an
accomplishment which could not have been achieved without that
excellent work.
Bob Simon is the staff director on the Democratic side. He has done a
superb job. Sam Fowler is the chief counsel and also has done yeoman
work. Vicky Thorne; Bill Wicker; Patty Beneke; Deborah Estes; Mike
Connor; Jennifer Michael; Leon Lowery; Jonathan Black; Al Stayman;
Scott Miller; David Brooks; Michael Carr; Sreela Nandi, who is an AAAS
fellow sponsored by the American Chemical Society who works with our
committee staff; Tara Billingsley, who is a Department of Energy
detailee who worked with the committee in May and June of this year;
Amanda Goldman; Mark Wilson; Jonathan Epstein, who is a fellow in my
personal office who also worked hard on various aspects of this
legislation; and James Dennis in my office, who worked on the tax
provisions of the bill.
In addition, I want to acknowledge the extremely capable staff on the
Republican side, in particular Alex Flint, who was mentioned by Senator
Domenici earlier, the staff director; Judy Pensabene, who is the chief
counsel on the Republican side; and the other many staff members who I
am sure will be recognized by Senator Domenici before action on this
legislation is complete.
Let me also acknowledge key House staff who worked so hard during
this conference committee that we concluded: Mark Menezes, who is
counsel for Chairman Joe Barton; Sue Sheridan and Bruce Harris, who are
counsels for the ranking member on the House side, Congressman John
Dingell.
All of these individuals whom I named made a tremendous contribution
to this legislation and all of them deserve our great thanks. No
constructive work is done here in the Congress without this kind of
excellent staff work and we are very fortunate in the case of this
legislation.
I am informed there are no other Senators wishing to speak at this
point. I am also informed we will have additional time tomorrow for
statements before any actual votes occur on or in relation to the
conference report.
I yield the floor at this time. 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. FRIST. 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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