[Congressional Record (Bound Edition), Volume 151 (2005), Part 21]
[Extensions of Remarks]
[Pages 29407-29408]
[From the U.S. Government Publishing Office, www.gpo.gov]




                        THE BIOFUELS ACT OF 2005

                                 ______
                                 

                           HON. JERRY WELLER

                              of illinois

                    in the house of representatives

                       Friday, December 16, 2005

  Mr. WELLER. Mr. Speaker, I rise today to introduce legislation that 
achieves a comprehensive approach to the future of renewable fuels. As 
we move forward with national energy policy, I strongly believe we need 
to start taking steps in a direction that will provide consumers with 
another option other than just oil based fuels. With crude oil hovering 
around $60 a barrel, renewable fuels like ethanol and biodiesel have 
started to become economically competitive with oil based fuels. By 
advancing the use and knowledge of renewable fuels, we can lower demand 
for imported oil by growing America's energy independence.
  The BioFuels Act of 2005 will push forward an aggressive schedule for 
renewable fuels by mandating the renewable content of gasoline to be 25 
billion gallons by 2025. Under the Energy bill, we are mandating that 
the renewable content of gasoline be at 4 billion gallons by 2006 which 
is 2 percent of total gasoline. Once implemented, the ``25 by 25'' 
initiative would raise that percentage up to 12.5%.

[[Page 29408]]

  In addition, this legislation will ensure that government agencies 
will expand their use of renewable fuels. In the mentality of 
``practice what you preach'' it is time for our own federal government 
to increase their use of ethanol and biodeisel where these fuels are 
reasonably available. In attempting to reduce our dependence on foreign 
oil, it should start right here in our nation's capitol.
  I believe the most innovative part of this legislation is a new tax 
credit that will provide for consumers who purchase a new concept 
vehicle which combines hybrid and flexible fuel technologies. It is 
this marriage of these technologies that will create a vehicle that 
will be better steward to our environment and will further reduce our 
dependence on foreign sources of oil. In providing this tax credit, we 
promote a greater sense of innovation for the future of automobiles.
  One problem we face in the advancement of renewable fuels is the sub 
par infrastructure we currently have in place. With ethanol and 
biodiesel plants mostly focused within the Midwest and with only around 
1,000 fuel stations that carry E-85 transportation fuels, it is 
essential that we provide tax incentives for the construction and 
development of ethanol and biodiesel plants. The legislation also 
builds upon the relationship between renewable fuels and industry that 
started in the last Energy bill. The legislation achieves this by 
providing multiple tax incentives for the construction and development 
of an infrastructure that will be more able to expand past the Midwest.
  The BioFuels Act of 2005 will provide an aggressive 7-year 
depreciation schedule for all ethanol and biodiesel refining equipment. 
Also included within this section is a provision that will expand and 
extend the installation of alternative fuel refueling property that we 
in Congress passed earlier this year. The provision will allow 
taxpayers to claim a more effective percentage tax credit for the cost 
of installing clean-fuel vehicle refueling property to be used in a 
trade or business of the taxpayer or installed at the principal 
residence of the taxpayer. This ramped up percentage schedule would 
help accelerate the construction of the E-85 infrastructure.
  Finally, this legislation makes the government put its money where 
its mouth is in advancing renewable fuels research and use. We can 
mandate the use of renewable fuels year after year but if we do not 
encourage research that will make renewable fuels more cost effective, 
the advancements in renewable fuels will only be small steps in 
innovation. The BioFuels Act reauthorizes the BioEnergy program that 
was handled in the 2002 Farm Bill at a level of $140 million for the 
next 9 years. This program has been a driving force in the advancement 
of renewable fuels and under this legislation will focus heavily on 
cellulosic ethanol and hydrogen technologies.
  It is now more important than ever that we move towards an energy 
policy that is less dependent on foreign oil. One of the attributing 
factors for the high costs of oil is the ever so present terrorist 
threats to the critical oil infrastructure in the Middle East and the 
other oil producing regions of the world. The volatility of the oil 
markets has been made fragile by international conflicts and 
disingenuous organizations. What happened in the 1970s with OPEC is a 
reminder of what can happen when nations are greatly dependent upon 
other nations for a single resource. By encouraging renewable fuels, we 
will have the ability to grow our own energy security and further 
ensure that we are not greatly affected by the volatility of world 
demand.
  In closing, I believe the BioFuels Act of 2005 sets forth the 
comprehensive approach we need in order to blend the use and knowledge 
of renewable fuels into our society. The latest Energy Information 
Administration energy outlook report, comments that we can expect these 
oil prices around $60 to be present from now until the year 2030. Also 
contained within this report showed that total petroleum consumption is 
projected to grow from 20.8 million barrels per day in 2004 to 26.1 
million barrels per day in 2025. We need to make a serious investment 
in finding another option to oil. Oil will be used today, tomorrow and 
for probably the next 100 years but if we do not look towards other 
options, consumption and demand will only further increase. Now is the 
time to advance our knowledge, our use and our partnership with 
industry of renewable fuels. This legislation is good for farmers, the 
automobile industry, consumers, the environment and most importantly, 
the goal of reducing our dependence on foreign oil. I believe the 
BioFuels Act of 2005, the legislation I introduce today, achieves the 
goals in renewable fuels we need to achieve. I ask my colleagues to 
join me in moving forward with this innovative approach.

                          ____________________