[Congressional Record (Bound Edition), Volume 147 (2001), Part 17]
[Senate]
[Pages 24255-24256]
[From the U.S. Government Publishing Office, www.gpo.gov]



        SUPPORT THE ENERGY BILL AND THE RENEWABLE FUELS STANDARD

  Mr. JOHNSON. Mr. President, I rise in strong support of the 
comprehensive energy bill that is being introduced today.
  As we all know, there has been a great deal of discussion this year 
about the nation's energy situation. The increasing volatility in 
gasoline and diesel prices and the growing tension in the world from 
the terrorist attacks have affected all of us. There is a clear need 
for energy policies that ensure long term planning, homeland security, 
fuel diversity and a focus on new technologies.
  To this end, I am very pleased that a comprehensive energy bill has 
been introduced in the Senate by my South Dakota colleague, Senator Tom 
Daschle. The bill is the result of many months of hard work by the 
Majority Leader and the chairmen of the committees of jurisdiction, 
including Senator Jeff Bingaman, the chairman of the Energy Committee, 
of which I am a member. We have listened to the concerns of both those 
who run our energy systems and our constituents in crafting the 
legislation. The result is a balanced and thorough product that 
addresses most of the major segments of the energy system and looks 
ahead to the needs of future.
  The bill covers a number of important areas, including incentives to 
increase oil and gas production and the nation's supplies of 
traditional fuels, streamlining of electricity systems and regulations, 
important environmental and conservation measures, and provisions to 
increase efficiency of vehicles and appliances.
  One of the key provisions in the bill is the inclusion of a renewable 
fuels standard. Earlier this year, I introduced a bill with Senator 
Chuck Hagel of Nebraska, the Renewable Fuels for Energy Security Act of 
2001, S. 1006, to ensure future growth for ethanol and biodiesel 
through the creation of a new renewable fuels content standard in all 
motor fuel produced and used in the U.S. I am pleased the framework of 
this bill is included in the comprehensive energy legislation.
  Today, ethanol and biodiesel comprise less than one percent of all 
transportation fuel in the United States. 1.8 billion gallons is 
currently produced in the U.S. The energy bill's language would require 
that five billions gallons of transportation fuel be comprised of 
renewable fuel by 2012--nearly a tripling of the current ethanol and 
renewable fuel production.
  There are great benefits of ethanol and renewable fuels for the 
environment and the economies of rural communities. We have many 
ethanol plants in South Dakota and more are being planned. These 
farmer-owned ethanol plants in South Dakota, and in neighboring states, 
demonstrate the hard work and commitment to serve a growing market for 
clean domestic fuels.
  Based on current projections, construction of new plants will 
generate $900 million in capital investment and tens of thousands of 
construction jobs all across rural America. For corn farmers, the price 
of corn is expected to rise between 20-30 cents per bushel. Farmers 
will have the opportunity to invest in these ethanol plants to capture 
a greater piece of the value-added profitability.
  Combine this with the provisions of the energy bill and the potential 
economic impact for South Dakota is enormous.
  Today, an important but underemphasized future is biodiesel, which is 
cheaply produced from excess soybean oil. We all know that soybean 
prices are hovering near historic lows. Biodiesel production is small 
but has been growing steadily. A renewable fuel standard would greatly 
increase the prospects for bioproduction and benefit

[[Page 24256]]

soybean farmers from South Dakota and other states around the Nation.
  Moreover, the enactment of renewable fuel standards would greatly 
increase the Nation's energy security. Greater usage of renewable fuels 
would displace the level of foreign oil that we currently use. During 
these difficult times it is imperative that we find ways to improve our 
Nation's energy security and reduce our overwhelming dependence on 
foreign oil. A renewable fuel standard would go a long way toward 
achieving this critically important goal.
  The House has passed an energy bill without any provisions for 
renewable fuel standard. Moreover, I believe the other body looks 
backward by focusing too heavily on simple tax breaks for traditional 
fuel supplies without enough encouragement for new technologies. Where 
there are agriculturally based fuels, wind energy, and so on, we 
adequately provide for it in this Senate legislation. The House bill 
sets us on track for continued heavy reliance on imported petroleum 
from unstable nations all around the world.
  I believe the Senate bill that is now introduced achieves the right 
balance for the Nation's future. I commend Senator Daschle and Senator 
Bingaman for their efforts and I look forward to debate this coming 
year on this critical piece of legislation which directs our attention 
not only to energy needs of every kind in our Nation but to the energy 
independence and energy security that during these troubling times we 
all understand now more profoundly than ever is so badly needed.

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