[Congressional Record Volume 153, Number 102 (Friday, June 22, 2007)]
[Senate]
[Pages S8295-S8297]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PASSAGE OF H.R. 6
Mr. DORGAN. Mr. President, I want to thank my friend from Hawaii, the
chairman of the Commerce, Science and Transportation Committee, for
sponsoring this amendment that was added to energy legislation last
evening.
This energy legislation seeks to expand the Nation's supply of
renewable biofuels and to begin moving our base of transportation fuel
toward renewable energy. Across America, including in my State of North
Dakota, American farmers have the ability to grow abundant supplies of
corn and energy crops from which ethanol and other transportation
biofuels can be manufactured. However, our Nation's ability to produce
an abundant supply of transportation biofuels will be of no use if we
are not able to transport these biofuels to the population centers
where they are needed. Today, due to the special qualities of biofuels,
there are no pipelines that can move them to market. Thus,
transportation is dependent primarily on trucks and rail, except in
those rare cases where water transportation is available between the
areas where the biofuels are produced and consumed.
Last week, the Government Accountability Office released a report
entitled ``Biofuels--DOE Lacks a Strategic Approach to Coordinate
Increasing Production with Infrastructure Development and Vehicle
Needs.'' The summary of the report states, in the second paragraph:
Existing Biofuel distribution infrastructure has limited
capacity to transport the fuels and deliver them to
consumers. Biofuels are transported largely by rail and the
ability of that industry to meet growing demand is uncertain.
If our Nation is to realize the potential of sustainable,
domestically produced transportation fuels, we can have no uncertainty
concerning whether the rail industry can transport the amount of
biofuels that the Nation will be producing. Therefore, Senator Inouye
and I have joined in this amendment which calls for a joint study by
the Secretaries of Energy and Transportation. The study will consider
two primary issues and a number of related issues. First, will there be
sufficient railroad infrastructure to move the amount of biofuels the
Nation will be producing? Second, will that railroad transportation
occur in a competitive environment in which the cost is reasonable and
the service is reliable?
Ensuring adequate, reliable, and cost-effective rail transportation
for ethanol and other transportation biofuels that will become so
important to the Nation is an essential element of the Nation's policy
to move toward sustainable, domestic supplies of energy. I thank my
friend from Hawaii, the chairman of the Commerce, Science and
Transportation Committee, for joining with me to pursue this study, and
I look forward to working with him to ensure that our national rail
system is adequate, reliable, and competitive.
Mr. KERRY. Mr. President, yesterday the U.S. Senate passed
comprehensive energy legislation that will set the course for our
national energy security in the decades to come. The members of this
body were able to reach important conclusions regarding the need for
increased corporate average fuel economy standards, improved energy
efficiency for buildings and appliances, a national standard to help
accelerate the development of renewable fuels, and carbon sequestration
technology to capture carbon emitted through the burning of coal. The
Energy bill approved by the Senate truly represents a shift toward a
comprehensive, responsible, and focused national energy policy.
Not to be forgotten in establishing this policy are America's small
business owners. There are nearly 26 million small businesses in this
country--nearly 26 million business owners that are focused on keeping
their doors open and putting food on the table for their families. And
while climate change and national energy security sometimes seem like
distant threats compared to rising health care costs and staying
competitive in an increasingly global economy, small business owners
are telling us that energy costs are indeed a concern. The National
Small Business Association recently conducted a poll of its members,
asking how energy prices affected their business decisions. Seventy-
five percent said that energy prices had at least a moderate effect on
their businesses--with roughly the same number saying that reducing
energy costs would increase their profitability. Despite these numbers,
only 33 percent have invested in energy efficiency measures.
In March of this year, I convened a hearing in the Committee on Small
Business and Entrepreneurship to look at what small businesses can do
to confront global warming. We learned over the course of that hearing
just how much can be done to help small businesses become energy
efficient. We also learned just how little the current administration
is doing. The Environmental Protection Agency estimates that small
businesses consume roughly 30 percent of the commercial energy consumed
in this country--that is roughly 2 trillion kBtu of energy per year,
and it's costing small business concerns approximately $29 million a
year. Through efforts to increase energy efficiency, small businesses
can contribute to America's energy security, help to combat global
warming, and add to their bottom line all at the same time.
Last night, I worked with Senator Snowe to include two amendments to
H.R. 6 that will go a long way toward helping small business owners
become more energy efficient. These amendments, which together
represent the provisions included in S. 1657, the
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Small Business Energy Efficiency Act of 2007, require the Small
Business Administration, SBA, to implement an energy efficiency program
that was mandated in the 2005 Energy Policy Act. To date, the SBA has
dragged its feet in implementing a program that could help small
business owners to become more energy efficient. Administrator Preston
should implement this important program today, and this bill directs
him to do so.
Second, this legislation establishes a program to increase energy
efficiency through energy audits at Small Business Development Centers,
SBDCs. The Pennsylvania SBDC currently operates a similar program, and
has successfully assisted hundreds of businesses to become more energy
efficient. As a result of the program, six of the eight winners of the
2006 ENERGY STAR Small Business Awards given by the EPA went to
Pennsylvania businesses. This program should be replicated so that
small businesses across the country have the same opportunity to cut
energy costs through the efficiency measures.
Third, the SBA Administrator is authorized to guarantee on-bill
financing agreements between businesses and utility companies, to cover
a utility company's risk in entering into such an agreement. The
federal government should encourage utility companies to pursue these
agreements with businesses, where an electric utility will cover the
up-front costs of implementing energy efficiency measures, and a
business will repay these costs through the savings realized in their
energy bill.
Fourth, the legislation creates a telecommuting pilot program through
the SBA. The Administrator is authorized to establish a program that
produces educational materials and performs outreach to small
businesses on the benefits of telecommuting.
Finally, the legislation encourages increased innovation by providing
a priority status within the SBIR and STTR programs that ensures high
priority be given to small business concerns participating in energy
efficiency or renewable energy system research and development
projects.
As a nation, we have much to do to secure our future energy supply
and to solve the international crisis that is global warming. Last
night's approval of H.R. 6 demonstrates this body's will to set the
right course, and America's small business owners should know that
Congress is providing them with the tools they need to join the
crusade.
Mr. President, last night, we successfully passed comprehensive
energy legislation which included a significant increase in fuel
economy standards. For far too long, this has been the third rail of
energy policy. It has been one of Washington's great failures in
leadership. But thanks to a bipartisan effort on the part of so many of
my colleagues, these new requirements will cut automobile carbon
emissions dramatically and will help put our country on a path toward
energy dependence. The oil savings from the CAFE provision alone will
ultimately total 1.2 million barrels per day by 2020.
When we first established CAFE standards for passenger cars and
trucks in 1975, within 10 years we increased fuel economy by 70 percent
and decreased our oil dependence from 36 percent to 27 percent. Ever
since then, we have been stuck in neutral. The fuel economy of the
average new passenger vehicle is lower today than it was 10 years ago.
We now have overcome the forces of inertia, and our country is now
poised to at last revolutionize the way we drive. I am proud of the
bipartisan commitment to this issue, which was demonstrated with
historic vote. I particularly would like to thank my colleagues,
Senator Inouye and Senator Stevens, for their leadership on this issue.
I was proud to cast my vote in support of this important bipartisan
energy legislation, which will dramatically increase our use of
renewable fuels, incentivize energy efficiency, reduce our oil
dependence, and address the growing threat of climate change. This bill
truly puts us on a path toward a cleaner, healthier, and more secure
energy future.
Mr. KOHL. Mr. President, I rise today to talk about the Energy bill
that passed with my support. The bill increases biofuels production
from the current mandate of 7.5 billion gallons in 2012 to 36 billion
gallons by 2022. The bill also establishes new appliance and lighting
efficiency standards in Government buildings and includes Federal
grants and loan guarantees to promote research into fuel-efficient
vehicles, including hybrids, advanced diesel and battery technologies.
I was pleased that this bill included my very important NOPEC
amendment, an amendment that passed with the support of 70 Senators.
The NOPEC amendment will hold OPEC member nations to account under U.S.
antitrust law when they agree to limit the supply or fix the price of
oil in violation of the most basic principles of free competition. It
will authorize the Justice Department--and only the Justice
Department--to file suit against nations or other entities that
participate in a conspiracy to limit the supply, or fix the price, of
oil. In addition, it will specify that the doctrines of sovereign
immunity and act of state do not exempt nations that participate in oil
cartels from basic antitrust law. Further, it will give our Government
a much needed tool to fight back against the selfish price-fixing
conspiracy of OPEC members, a conspiracy that significantly raises the
cost of gasoline and other essential energy products to millions
consumers every day.
I was also pleased that this bill included an amendment I offered
that would allow small manufacturers to access awards under the
Advanced Technology Vehicles Manufacturing Incentive title. Considering
that small manufacturers that employ roughly 75 employees or less
contribute 29.5 percent to all value added to automobiles, it made
sense that they should have the opportunity to get these awards.
I was disappointed that the Energy bill didn't include provisions to
require utilities to provide 15 percent of their electric power from
renewable sources by 2020. The reduction in the use of fossil fuels to
generate electricity would have strengthened our national energy
security by diversifying our sources of electric generation. Also, the
bill did not include an energy tax package that would have created
incentives for renewable power, biofuels, plug-in hybrids, clean coal
and other technologies.
Taken together, this bill allows the United States to become more
energy efficient in a cost effective and responsible way.
Mrs. MURRAY. Mr. President, I rise today to discuss our efforts to
address the energy challenges that are facing our Nation today and the
solutions we need for tomorrow. I am pleased that the Senate last night
passed a comprehensive energy bill that moves our Nation forward.
We all know how important energy is to our economy, our families, and
our quality of life. The high cost of energy is putting a painful
squeeze on every sector of my home State: Commuters notice every time
they fill up the tank; businesses are struggling with the higher costs
of transportation; industry is feeling the impact of higher energy
costs, and farmers feel the pain both in the price of fuel and
fertilizer.
The question is, what are we going to do about it? It is clear there
are no silver bullets.
It is going to take smart policies, carried out consistently over
many years, to begin to change the way we use and save energy.
Overall, I believe we must focus on several priorities, including:
making America more self-reliant so we are less dependent on foreign
sources of energy; using innovation to meet our energy needs in
creative ways; supporting conservation to reduce our energy demands;
investing in education so we can cultivate the scientists, researchers,
and workers of the new energy future; and protecting consumers from
unscrupulous energy manipulators.
Before I turn to those specific priorities, I want to share with the
Senate some of the innovative things that leaders in Washington State
are doing to meet our energy needs.
Washington State is moving forward on renewable sources of energy
like wind energy.
In April, I had an opportunity to visit the Hopkins Ridge Wind Farm
in Columbia County, WA. This is a Puget Sound energy facility that has
83 wind turbines. When they are running at peak capacity, they can
generate enough energy on an average basis to supply about 50,000
homes.
[[Page S8297]]
In fact, the Ports of Longview and Vancouver in southwest Washington
have become a gateway for bringing wind energy components into the
United States. I have been able to support their work through the wind
energy tax credit. Last year, I got to visit the Port of Longview and
see how our longshoremen expertly handle these massive turbines.
Washington's agriculture community is stepping up and embracing
renewable sources of energy. This Spring, I was in Colfax, WA, for a
roundtable discussion with farmers, and energy was a big part of the
discussion.
I can tell you that Washington State farmers are poised to become
active players in the renewable energy market. We talked about ways to
help them make the transition into biofuel crops.
And there are other innovative projects. In Gray's Harbor, we are
moving forward with a biodiesel plant. It will be a new home for
Washington state biofuel production, a new source of jobs for the
people of Grays Harbor County, and a new way to combat high gas prices.
And in the Tri-Cities, we are moving forward with a new research center
on biofuels and bioproducts.
In my home State of Washington, we have also been testing some
cutting edge technology that puts information into the hands of
consumers so they can make informed decisions about how--and when--they
use energy.
With the Pacific Northwest National Laboratory and other partners, I
helped kick off a GridWise demonstration project to test smart
appliances. These appliances give consumers the power to decide when to
run them based on the cost of energy. For example, your thermostat
could indicate to you when heat costs are at a premium. Or you could
set your dryer to run only when energy is a certain price.
We all know that the cost of energy fluctuates throughout the day.
Unfortunately, today's consumers don't know the real cost of energy at
any given time. So it is hard for them to make informed energy choices.
These innovative appliances were tested for a year in 150 homes, a
water-pumping station and a commercial building. The results are
impressive. Researchers found that giving consumers these tools helps
save energy and reduce demand on the electricity grid. They found that
real-time pricing can also alleviate the need to build a new
substation.
So I am really proud of the innovative work that is already underway
in Washington State, and both Senator Cantwell and I believe it can
serve as a model for the progress we can make in the rest of the
country.
Now I would like to turn to my energy priorities and some of the
positive steps that this bill takes.
My first priority is to help make America more energy self-reliant.
Here at home we have tremendous demand for energy and that demand is
growing. Unfortunately, today we are still too dependent on foreign
sources of energy, particularly oil. That dependence affects our
security and our relations with other countries. We need to reduce our
dependence, and we can do that through some of the measures in this
bill. This bill includes a renewable fuels standard that will increase
our use of renewable fuels, including biofuels like cellulosic ethanol
and biogas. It also includes tighter CAFE standards for our auto
industry, and it increases the number of bioresearch centers focused on
biofuel. This bill will also help us diversify our fuel sources by
promoting alternative fuels, such as ethanol, biogas, and biodiesel.
I am disappointed that important tax incentives, which would spur the
development of renewable electricity, increase the production of
alternative transportation fuels, and help homeowners who make their
properties more energy efficient, were blocked in a procedural effort
by the minority. I am hopeful that these important investments will be
restored as this legislation moves forward.
Second, we need to use innovation to help meet our energy needs. This
bill will help move forward our innovation agenda by increasing
research and development funding for new technologies. It authorizes
funding for research in States with low rates of ethanol production.
This investment could help Washington get off the ground in the area of
cellulosic ethanol. This bill also boosts research in carbon capture
and storage. We are doing some interesting work on that at PNNL in my
home State, and I am pleased to support further research.
Third, we need to be more aggressive about conserving energy. It is
everything from choosing compact fluorescent light bulbs and energy
efficient appliances to consolidating errands so you make fewer trips
in your car. Through this bill, the Federal Government will lead by
example by using energy efficiently and employing conservation
practices. It includes, as I mentioned, higher CAFE standards on our
vehicles, which will help conserve gasoline. It will promote efficient
lighting technologies, efficient vehicles and advanced batteries.
Fourth, we need to expand education so we have the scientists,
researchers, and workers to help us reach a new generation of energy
innovation.
The existing and new technologies that we will deploy to increase our
self-reliance are complicated, and we need to make sure we have a well-
trained workforce that is able to implement these forward-thinking
technologies. This entails both continuing education for our current
workforce, but also training the workers of tomorrow. We must provide
these training programs while our young people are still in our
educational system.
In my home State of Washington, several universities are addressing
these needs by offering curriculums in this area. For example, Gonzaga
University in Spokane has a transmission line worker training program.
Central Washington University in Ellensburg wants to teach its
students how to operate the efficiency technologies of the future. I
think we should support these efforts by ensuring funding for programs
like these. I am pleased that this legislation calls out this important
issue.
In Washington State, we are also working to educate the next
generation of energy innovators.
Washington State University, the Pacific Northwest National
Laboratory, and the State of Washington have worked together to create
the Bioproducts, Sciences, and Engineering Laboratory in Richland.
This is a pioneering research center where researchers will develop
technology to turn biomass into energy and products. It will have
teaching laboratories and classrooms and is located on WSU's Tri-Cities
campus. I have been pleased to support this project from its inception,
and I will continue to do so.
Finally, we need to protect consumers from those who would manipulate
the price of energy to take advantage of high demand. One of the things
that the Enron scandal revealed is that some people were happy to
create false shortages of energy in order to drive up the price.
This bill helps us fight energy manipulators through a price-gouging
bill that I co-sponsored, which is including in the underlying bill.
We have a lot of challenges in front of us as individuals and as a
country when it comes to energy. But we also have the ability to craft
responsible, smart legislation that will help move us in the right
direction.
I am pleased to be working to make our country more self-reliant, to
invest in innovation, conservation and education and to help protect
consumers. I am honored to come from a State that is producing some of
the most innovative energy ideas anywhere, and I am excited about
moving this bill forward so we can use that progress to benefit our
entire country.
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