[Congressional Record Volume 158, Number 52 (Thursday, March 29, 2012)]
[Senate]
[Pages S2250-S2251]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HOEVEN (for himself, Mr. Blunt, Ms. Klobuchar, Mr. Crapo, 
        and Mr. Johanns):
  S. 2264. A bill to provide liability protection for claims based on 
the design, manufacture, sale, offer for sale, introduction into 
commerce, or use of certain fuels and fuel additives, and for other 
purposes; to the Committee on Environment and Public Works.
  Mr. HOEVEN. Mr. President, I rise to introduce bipartisan energy 
legislation, the Domestic Fuels Act. This legislation is designed to 
help hard-working Americans with the high fuel prices, the high gas 
prices they are paying at the pump. This legislation will truly help us 
do ``all of the above'' when it comes to producing and providing lower 
cost energy for American consumers, American businesses, and to fuel 
our economy, help create jobs, and also to create greater national 
energy security. It is part of what I believe we need to do to truly 
have an energy security plan for our country.
  I wish to take a few minutes to talk about the Domestic Fuels Act. We 
are going to start with a quick review of gas prices. As we all very 
well know, gas prices are high, and they continue to go higher. AAA 
indicated this week the national average for a gallon of gasoline is 
$3.91 a gallon. Gasoline prices, over the last 3 years of the current 
administration, have more than doubled from about roughly $1.87 to the 
national average today of more than $3.90. I believe there are nine 
States right now where, on average, gas is more than $4 a gallon. In 
Chicago, for example, I believe it is about $4.68. Over here, a few 
blocks from the Capitol, I checked not too long ago and it was $4.39 a 
gallon.
  This puts enormous pressure and strain on American consumers, hard-
working Americans, every day, when they are being forced to fill their 
car at the gas pump and spend close to $4 per gallon. Some predictions 
are that later this summer, it may go to $5 a gallon. Clearly, we have 
to find a way to help with gasoline prices across this country.
  What it comes down to is supply and demand. More supply creates 
downward pressure on gasoline prices; more demand, of course, pushes 
prices higher. So we have to find ways to increase the supply and 
increase the supply in a dependable way. That means not only increasing 
supply now but having policies in place that increase supply now and in 
the future.
  We need to send signals to the market that we are serious about 
growing our supply of energy--all types of energy--certainly gas and 
oil but all types of energy in this country, as well as working with 
our neighbors we can count on, such as Canada, for more supplies to 
help reduce the price of gasoline and, frankly, reduce the cost of all 
types of energy to help get the economy going, to have more national 
security and more jobs to put the 13 million people who are unemployed 
back to work. Energy is a key aspect of creating the type of economic 
environment that will help us do that.
  This chart shows our current level of crude oil production. The first 
bar shows that between ourselves and Canada, we produce just under 10 
million barrels of crude and crude equivalent right now. In North 
America--Canada and the United States--we produce under 10 million 
barrels of crude today. That comes not only from conventional oil but 
oil shale, tight oil, oil sands, Arctic, and offshore--all these 
different sources.
  Under the current policies, we can see by looking at this next bar 
that over the next 15 years the supply of oil and gas coming from 
Canada and the United States will shrink. Under the current policies 
and the current approach, without the kind of energy policy we need in 
this country, we actually will have less oil and gas from Canada and 
the United States over the next 15 years.
  The key is this: We have to implement the kind of energy policy that 
will help us produce more energy, oil and gas, and from all sources, 
traditional and renewable. That is what we are talking about with this 
Domestic Fuels Act.
  The third bar on this chart shows that just from oil and gas, with 
the right kinds of policies over the next 15 years--this is a 15-year 
timeframe--we can produce more oil and gas in Canada and the United 
States than we consume. So before we bring in other types of energy--
biofuels and any other types, any renewable energy we want to include, 
just from oil and gas, with the right kinds of policies in Canada and 
the United States, over the next 15 years we can produce more energy 
than we consume.
  Think what that means in terms of helping bring down the price of 
gasoline and in terms of creating jobs in our country; think of what 
that means in terms of national security, not needing to depend on 
crude oil from the Middle East. That is just with the right policies to 
develop more oil and gas. Of course, we can develop all the other types 
of energy resources as well.
  Let's not take 15 years to get this done. Let's have a plan for 
national energy security that gets it done in the next 5 to 7 years. 
There is no question we can do it. We can absolutely do it. How do we 
do it? Very simple and very common sense. When we talk about producing 
``all of the above,'' let's actually do that. Let's not say ``all of 
the above'' and then block energy production. Let's have the kinds of 
energy policies in place, traditional sources and renewable sources, on 
a bipartisan basis. Let's put the types of policies in place that will 
truly help us get to energy security, and let's do it over the next 5 
to 7 years. Let's increase oil production in the United States and 
Canada. Let's have the policies that help us produce more oil onshore 
and off. Let's increase natural gas production and usage.
  Again, let's join with Canada and do this with North American energy. 
We have incredible potential with Canada. We are the closest friends 
and allies in the world. Let's increase the renewable fuels we produce 
right here at home. We can do that with a market-based approach. Let's 
increase our use of renewable fuels with market-based approaches that 
work. Let's use technology to drive energy production--produce more 
energy--with better environmental stewardship.
  We can do all these things. When we talk about an energy security 
plan or the path to energy security in our country, these are very 
commonsense steps. I have bills, as do other Members of this body, on a 
bipartisan basis, to do all these things--increase oil production, 
increase the use of natural gas, increase renewables with market-based 
approaches, and use technology

[[Page S2251]]

to drive energy and do it with better environmental stewardship.
  One of the things I submitted legislation to do is approve the 
Keystone Pipeline. It is an issue that has been very much in the 
national discussion. It has gotten a lot of attention. It is a 
straightforward concept. It simply says let's develop the 
infrastructure in our country, so that as we produce more oil in 
Canada--Canada has the third largest oil reserves in the world. No. 1 
is Saudi Arabia, No. 2 is Venezuela, and No. 3 is Canada. Let's work 
with Canada to tap and use more of that oil. If we don't, it will go to 
China. But we can do it. We simply have to develop the infrastructure 
and work with Canada.
  What has the opposition to that oil development been? A number of 
arguments have come up. The main one behind it is, some people say we 
don't want to produce oil in the oil sands; we don't want to do that. 
The concern, in their opinion, is greenhouse gas. It has about a 6-
percent higher greenhouse gas emission than conventional drilling 
production.
  The important point is--going back to the last chart, which I 
mentioned in the national energy security plan is let's use technology 
to produce more energy with better stewardship. What I mean is, when we 
talk about the oil sands, rather than using the current excavation 
method, 80 percent of the new development is going to in situ, which is 
essentially drilling. So it is basically the same footprint and same 
greenhouse gas emissions as conventional drilling for oil and gas. So 
let's use that new technology to produce more energy, more oil in the 
Canadian oil sands, and do it with better environmental stewardship.
  We will then be getting oil from a dependable ally, rather than 
getting 30 percent of our crude from the Middle East and Venezuela. It 
is just common sense. We win with more energy at a lower cost. We win 
with job creation, and we win with better environmental stewardship. We 
need to just get the right policies, the right law, and the right 
approach to how we regulate these things in place.
  That is what the Domestic Fuels Act is all about. It is an example of 
exactly how we do that. The Domestic Fuels Act essentially says, all 
right, when we pull up to the gas station, we should be able to get 
whatever fuel provides the best energy for what we need at the best 
possible price.
  It is about consumer choice, and it is about lowering the cost at the 
pump.
  Right now, when you pull in, very often the petroleum retail marketer 
has multiple tanks in order to dispense various types of fuel. It might 
be traditional gasoline from petroleum, it might be some blend of 
petroleum and ethanol, he might have biodiesel, and increasingly 
service stations, gas stations, are looking to market natural gas. But 
think about it. If they have to have a different set of tanks, 
different set of piping, and different dispensers for each type of 
fuel, then they have to make a choice, don't they. They can maybe offer 
gasoline from petroleum, they can maybe offer some ethanol blend, they 
can maybe offer biodiesel, or maybe they try natural gas; right?
  But if they have to have tanks and pumps and piping for each one, 
think of the cost--hundreds of thousands of dollars.
  So how do you get consumer choice? How do you get consumer choice in 
there? Also, how do you get the lowest price? If petroleum-based 
gasoline versus ethanol-based is cheaper, well, then, maybe they want 
to offer straight petroleum, not have a blend. But if they can mix it 
with ethanol, offer even up to E85, and that is cheaper, they may want 
to offer that. If they want to offer biodiesel rather than traditional 
diesel or if they want to offer natural gas--because increasingly we 
have trucks and buses particularly in our urban areas using natural 
gas--how do they do it? That is the point.
  What this act provides is that the EPA has to streamline the process 
so a service station or gas station can use their existing tanks and 
equipment so they can decide to offer any one of those products. Now we 
have more consumer choice and we have a way to drive down prices at the 
pump--drive down the cost of gasoline, drive down the cost of biofuels, 
drive down the cost of natural gas, or whatever it is--consumer choice, 
lower prices, and that extends back through the production chain as 
well. If I produce ethanol, if I produce biodiesel, if I produce 
gasoline or natural gas, I know I am going to be able to market those 
products to consumers.
  This is about looking to the future instead of looking to the past. 
This isn't about government spending any more money. This is about the 
government empowering industry, empowering entrepreneurship, empowering 
the energy sector, and empowering our consumers with choice and lower 
costs at the pump. It is just common sense. It is just common sense. We 
give the marketer a way to market whatever product makes the most sense 
and whatever best serves the consumers at the best price. We give them 
liability protection so they know they can go forward and offer these 
different products without worrying about being sued and losing their 
livelihood so they are willing to do it. We provide a clear and simple 
pathway so they know what they have to accomplish in order to best 
serve their consumers and build their business.
  This is about the right kind of legal framework. This is about the 
right kind of legislation that is clear, understandable, and 
empowering. This is how we get government working for people rather 
than people working for government. This is how we build the right kind 
of energy future based on all of the above. This isn't just about 
saying, hey, let's do all of the above when it comes to energy 
development. This is about doing it. This is about making a difference 
for the American consumer, and we can do it.
  This legislation is bipartisan legislation. I am very pleased Senator 
Roy Blunt of Missouri is cosponsoring it with me, along with Amy 
Klobuchar of Minnesota, Mike Crapo of Idaho, and I believe we will have 
many others joining us on both sides of the aisle. Also, we are working 
with Representative John Shimkus in the House who will be introducing 
companion legislation as well.
  The other point I want to make in concluding is that we have broad-
based support from companies and people who work in the traditional 
energy sector as well as the renewable energy sector, who make the 
equipment that dispense gasoline and other types of fuel products and 
the people who sell gasoline and all types of fuel. They are all 
onboard.
  Let me give an example. From the renewable fuels energy sector, we 
have the Renewable Fuels Association endorsing this legislation, and 
also Growth Energy. From traditional oil and gas, the American 
Petroleum Institute has endorsed this legislation, as has Tesoro 
Corporation and ExxonMobil, and there are many others. From the service 
stations--the marketers that actually dispense the product--endorsing 
this legislation is the National Association of Convenience Stores, the 
Society of Independent Gasoline Marketers of America, the Petroleum 
Marketers Association of America, and the National Association of Truck 
Stop Operators. From the people who make the equipment, the 
manufacturers that make the equipment, we have received endorsements as 
well from the American Fuel and Petrochemical Manufacturers and also 
the Outdoor Power Equipment Institute.
  Look, everybody is onboard. Now we need to get to work and get it in 
place. This is about building the right kind of energy future for our 
country. We have to get going. Gasoline prices are $4 at the pump, and 
they are going higher. We can do something about it, and that is 
exactly what we need to do.
  I urge my colleagues to join me in this effort on behalf of the 
American people.
                                 ______