[Congressional Record Volume 157, Number 142 (Thursday, September 22, 2011)]
[Senate]
[Pages S5904-S5905]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. CANTWELL (for herself and Mr. Lugar):
  S. 1603. A bill to enable transportation fuel competition, consumer 
choice, and greater use of domestic energy sources in order to reduce 
our Nation's dependence on foreign oil; to the Committee on Commerce, 
Science, and Transportation.

[[Page S5905]]

  Ms. CANTWELL. Mr. President, I rise today to introduce legislation 
aimed at breaking oil's monopoly over our Nation's transportation 
system. I would like to thank Senator Lugar for helping develop and 
agreeing to cosponsor this important bill.
  The Open Fuels Standard Act of 2011 would introduce competition among 
fuels in the U.S. transportation market by ensuring that most new 
vehicles in the United States will be capable of running on a range of 
domestically produced alternative fuels.
  By introducing competition among fuels, the Open Fuels Standard, OFS, 
Act aims to bring bout significant reductions in the high prices paid 
by U.S. consumers at the gas pump and in our Nation's dangerous 
overdependence on foreign oil. According to the Department of Energy, 
this lack of competition imposes a ``monopoly premium'' of more than 
$200 billion on the economy each year--a direct transfer of U.S. wealth 
to the treasuries of OPEC countries and other foreign oil producers. 
Keeping this money within U.S. borders would sharply cut the U.S. trade 
deficit, safeguard U.S. household income, and provide capital and 
market incentive for investment in new U.S. energy infrastructure.
  The Open Fuels Standard Act requires that starting in 2015, 50 
percent of new vehicles manufactured or sold in the United States be 
flex fuel capable--that is, able to run on non-petroleum fuels. These 
fuels would include domestically-produced ethanol or methanol or other 
alcohols in addition to--or instead of--petroleum-based fuels. In 2018, 
80 percent of new vehicles would need to be flex-fuel capable. Adoption 
of an Open Fuels Standard would spur the development and use of alcohol 
fuels such as ethanol and methanol that can be made from a wide variety 
of domestic energy resources including agricultural waste, energy 
crops, natural gas, and even trash. By increasing the share of these 
abundant domestic fuels in the U.S. market, the Open Fuels Standard Act 
has the potential to eliminate major drag on the American economy, 
creating new jobs, strengthening our national security, and addressing 
challenging environmental concerns such as air quality and climate 
change.
  Today's introduction of the Open Fuels Standard Act coincides with 
yesterday's launch of the United States Energy Security Council. The 
new Council's purpose is to focus on reducing U.S. energy vulnerability 
and enhancing national security by finding alternatives to foreign oil. 
This new group's members include former Secretary of State George 
Shultz, former Secretaries of Defense William Perry and Harold Brown, 
as well as three former national security advisers, a former C.I.A. 
director, two former senators, a Nobel laureate, a former Federal 
Reserve chairman, and several Fortune-50 chief executives.
  The U.S. Energy Security Council is calling for Congress to enact a 
requirement such as the Open Fuels Standard to end oil's monopoly as 
the lynchpin of U.S. energy security, according to a New York Times op-
ed on September 21 by council members former National Security Advisor 
Robert C. McFarlane and former Director of Central Intelligence R. 
James Woolsey.
  The Open Fuels Standard Act will also complement and advance other 
key legislation that Congress has passed in recent years with the goals 
of transforming the U.S. energy system to make it more secure, more 
affordable, and more environmentally sustainable. For example, the 2007 
Energy Independence and Security Act included the Renewable Fuels 
Standard, requiring the production of 36 billion gallons of biofuels by 
2022, and raising CAFE standards, corporate average fuel economy, for 
the first time in 20 years for SUVs and trucks. The Open Fuels Standard 
Act, in conjunction with policies such as these that we fought hard for 
in previous Congresses, will play a major role in achieving our long-
term national energy goals.
  Oil has had a monopoly over transportation fuel for too long and 
American drivers have had no choice but to pay volatile and elevated 
prices at the pump. I am encouraged by the broad bipartisan and 
stakeholder support for the Open Fuels Standard Act, and again would 
like to thank Senator Lugar, which I believe is a recognition that this 
approach will really help diversify our Nation's energy supply and spur 
investment and job creation.
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