[Congressional Record (Bound Edition), Volume 148 (2002), Part 4]
[Senate]
[Pages 5343-5344]
[From the U.S. Government Publishing Office, www.gpo.gov]




                        RENEWABLE FUEL STANDARD

  Mr. NELSON of Nebraska. Mr. President, as we proceed with the 
debate--and hopefully it will end with a cloture vote--on the renewable 
fuel standard in S. 517, it is important to clarify some of the main 
issues and to counter some of the misinformation that has been offered 
by opponents of ethanol and other biofuels and the RFS.
  In today's New York Times, one of our colleagues is quoted as saying 
that the renewable fuel standard may raise the cost of gasoline by 10 
cents a gallon in New York. I am not sure how that number is achieved 
given the fact that the wholesale price of ethanol today in New York is 
about 30 cents per gallon less than gasoline.
  But it is frustrating. For 25 years, we have all worked to ward off 
the negative arguments presented by some of the opponents. The 
opponents are determined to maintain control over the transportation 
fuels market by excluding ethanol, by excluding reformulated fuels, and 
by excluding new opportunities for renewable resources. Yet because the 
ethanol industry is right for America and for our State, it has 
survived and expanded from essentially zero in 1977 to over 2 billion 
gallons a year capacity today.
  It has taken sound public policy to achieve this strength and it will 
take sound public policy to take the next leap forward in these days of 
dangerous and growing foreign oil dependency and mounting concerns 
about the environment including climate change. The RFS is the next 
sound and critical policy leap forward to more than double biofuels 
production in the next 10 years.
  In recent years, an enlightened sector of these industries ha 
accepted the benefits of ethanol blends. But the remaining and 
commanding sectors stand steadfast in their opposition. Old data, 
negative projections, and misinformation are their tools.
  They have convinced some to actively embrace their campaign to 
maintain a fossil-interest stranglehold on transportation fuels. For 
these companies, national energy, economic and environmental security 
of the United States is not part of their global calculus as they 
pursue their determined path against ethanol and other biofuels. These 
biofuels are becoming an international force. If opponents can delay 
the United States in its embrace of the biorefinery concept, they will 
succeed in sustaining the position and profitability of their industry.
  I will address the opponent's arguments issue by issue. It is my hope 
that, ultimately, an objective and thoughtful overview will lead to 
acceptance of the Renewable Fuel Standard.
  I would first like to stress the urgent needs for a ``Manhattan'' 
type project to commercialize the biorefinery industry in the United 
States. This industry will take agricultural and forestry crops and 
residues, rights-of-way, park, yard and garden trimmings as well as the 
clean portion of municipal wastes that are disposal problems or end up 
in the our land fills or sewers and convert these renewable resources 
into biofuels, biochemicals and bioelectricity.
  Poster 1 shows existing ethanol plants in gold, plants under 
construction in green, and other biorefineries in the planning stage in 
red.
  You can see that the dispersal of biorefineries will be nationwide, 
not limited to the Midwest, and not limited to any location or region 
within our country.
  Moving from planning to construction is largely contingent on 
implementation of the RFS since capitalization will not proceed without 
an assured and profitable market for their outputs.
  America needs a Manhattan-type project to accelerate this process and 
to ensure the development of smaller, fully integrated, community-based 
biorefineries bringing new basic industries

[[Page 5344]]

and quality jobs to rural and urban communities with ownership/partial 
ownership and value-added benefits accruing to local people. The RFS is 
part of this approach because it expands the market for biofuels and 
provides a 1.5 credit for cellulosic biomass ethanol and biodiesel 
compared to 1 credit for corn-based ethanol; that is, each gallon of 
ethanol from cellulosic biomass will be worth 1.5 gallons of corn-based 
ethanol. This extra credit is an important driver in advancing 
technology so that California, New York, and other States can join the 
Midwest in benefiting from new industries, better jobs, and improved 
incomes.
  The ACTING PRESIDENT pro tempore. The Senator's 5 minutes has 
expired.
  Mr. NELSON of Nebraska. Mr. President, we hope the cloture vote will 
move forward and that we will, in fact, pass the RFS.
  Thank you very much.


                           Order of Business

  Mr. DASCHLE. Mr. President, I have been in consultation with the 
distinguished Republican leader and our terrific chair of the 
committee, as well as others, with regard to finding some procedural 
arrangement to accommodate Senators and continue the effort to bring 
this bill to a close.
  I think we are making progress, but in order to accommodate further 
discussion, I ask unanimous consent that the cloture vote be postponed 
until 2:30.
  The ACTING PRESIDENT pro tempore. Is there objection? Without 
objection, it is so ordered.
  Mr. DASCHLE. I thank the Chair. I yield the floor.
  Mr. President, I suggest the absence of a quorum.
  The ACTING PRESIDENT pro tempore. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. BINGAMAN. Mr. President, I ask unanimous consent the order for 
the quorum call be rescinded.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  Mr. BINGAMAN. Mr. President, I ask unanimous consent that the time 
during quorum calls in this period be charged equally against both 
sides.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  Mr. BINGAMAN. Mr. President, I suggest the absence of a quorum.
  The ACTING PRESIDENT pro tempore. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. BAUCUS. Mr. President, I ask unanimous consent the order for the 
quorum call be rescinded.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  Mr. BAUCUS. Mr. President, what is the pending business?
  The ACTING PRESIDENT pro tempore. The Senate is in morning business.
  Mr. BAUCUS. I thank the Chair.

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