[Congressional Record (Bound Edition), Volume 152 (2006), Part 11]
[House]
[Pages 15533-15534]
[From the U.S. Government Publishing Office, www.gpo.gov]




    PROVIDING GRANTS TO EXPAND INFRASTRUCTURE NECESSARY TO INCREASE 
                   AVAILABILITY OF ALTERNATIVE FUELS

  Mr. ROGERS of Michigan. Madam Speaker, I move to suspend the rules 
and pass the bill (H.R. 5534) to establish a grant program whereby 
moneys collected from violations of the corporate average fuel economy 
program are used to expand infrastructure necessary to increase the 
availability of alternative fuels, as amended.
  The Clerk read as follows

                               H.R. 5534

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. FUEL ECONOMY FUND AND ALTERNATIVE FUEL GRANT 
                   PROGRAM.

       (a) Establishment of Fund.--
       (1) In general.--There is established in the Treasury a 
     Fuel Economy Fund (hereinafter in this Act referred to as the 
     ``Fund'') consisting of amounts transferred to the Fund under 
     paragraph (2) and amounts credited to the Fund under 
     paragraph (3).
       (2) Transfer of amounts.--For fiscal year 2007, and each 
     fiscal year thereafter, the Secretary of the Treasury shall, 
     subject to the availability of funds provided in advance in 
     appropriations Acts, transfer to the Fund an amount 
     determined by the Secretary to be equal to the total amount 
     deposited in the general fund of the Treasury in the 
     preceding fiscal year from fines, penalties, and other moneys 
     obtained through enforcement actions conducted pursuant to 
     section 32912 of title 49, United States Code, including 
     moneys obtained under consent decrees.
       (3) Investment of amounts.--The Secretary of the Treasury 
     shall invest in interest-bearing obligations of the United 
     States such portion of the Fund as is not, in the Secretary's 
     judgment, required to meet current withdrawals. Such 
     obligations shall be acquired and sold and interest on, and 
     the proceeds from the sale or redemption of, such obligations 
     shall be credited to the Fund in accordance with the 
     requirements of section 9602 of the Internal Revenue Code of 
     1986.
       (4) Use of amounts in the fund.--Amounts in the Fund shall 
     be made available, subject to the availability of funds 
     provided in advance in appropriations Acts, to the Secretary 
     of Energy to carry out the grant program described in 
     subsection (b).
       (b) Alternative Fuels Expansion Grant Program.--
       (1) In general.--The Secretary of Energy shall, through the 
     Clean Cities Program of the Department of Energy, carry out a 
     grant program to expand the availability to consumers of 
     alternative fuels. A grant awarded under this section shall 
     not exceed $30,000.
       (2) Eligibility.--Any entity that is eligible for 
     assistance through the Clean Cities Program may be eligible 
     for a grant under this section, except that no large, 
     vertically integrated oil company may be eligible for a grant 
     under this section. No entity may be awarded grants totaling 
     more than $60,000 in any fiscal year.
       (3) Use of grant funds.--Grants provided under this section 
     shall be used for the construction or expansion of 
     infrastructure necessary to increase the availability to 
     consumers of alternative fuels (as defined in section 
     32901(a)(1) of title 49, United States Code). Not more than 3 
     percent of grant funds may be used for administrative costs.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Michigan (Mr. Rogers) and the gentleman from Tennessee (Mr. Gordon) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Michigan.


                             General Leave

  Mr. ROGERS of Michigan. Madam Speaker, I ask unanimous consent that 
all members may have 5 legislative days within which to revise and 
extend their remarks on this legislation and to insert extraneous 
material on the bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Michigan?
  There was no objection.
  Mr. ROGERS of Michigan. Madam Speaker, I yield myself such time as I 
may consume.
  Madam Speaker, many thanks to the staff of the Energy and Commerce 
Committee, and Mr. Boucher as well, who helped and assisted along the 
way, and Mr. Fossella from New York for helping put this legislation 
together. I can't tell you how timely it is.
  Every day, Americans must fill up their cars with gasoline that comes 
from some of the most unstable regions of the world. American dollars 
flow to dictators, despots, and committed enemies of the United States, 
Hugo Chavez of Venezuela, Ahmadinejad of Iran and Obasanjo of Nigeria. 
However, we do have other options, and that is the exciting news.
  Today, nearly 5 million Americans drive flex-fuel vehicles. These 
cars are capable of running on gasoline or renewable fuels, like E-85, 
which is 85 percent ethanol; and that number is growing.
  Currently, Ford, General Motors and Daimler Chrysler are in the 
process of announcing that they would be soon producing 2 million flex-
fuel vehicles annually. The fastest way to reduce our dependence on 
foreign oil is to make ethanol, the fuel that is grown right here in 
the United States, available to Americans all across the country.
  Unfortunately, renewable-fuels infrastructure has not kept pace with 
the number of renewable-fueled cars on the road. Today, only 600 or so 
gasolines have E-85 pumps installed, consisting of less than 1 percent 
of all gas stations. In fact, only 34 States even have E-85 pumps 
available to the motoring public.
  We have come up with a good solution for that, a kick-start, if you 
will, to the ethanol revolution that is about to take hold of America. 
Remember our choices are this, Madam Speaker: we can send that money to 
an Iranian ayatollah, or we can send our fuel money to an American 
farmer. Today, we start that process of allowing consumers to make a 
good choice and send it to an American farmer.
  Each year, there are automobile companies who pay fines because they 
are not in compliance with CAFE standards in the United States, and 
those fines come to the general treasury. What we have done is to take 
those CAFE fines, fines that they pay for not meeting fuel economy 
standards of the United States, and roll it over and allow small loans 
to independent gas station owners all across the country to install 
ethanol pumps.
  We think that this can double the number of ethanol pumps next year 
and start to fuel the fire for private investment in ethanol all across 
the United States and meet a demand from 5 million current users and 2 
million future units from Ford, Chrysler, and General Motors cars all 
across this great country.
  The one thing that we have figured out in this whole process, there 
is a great researcher at Michigan State University, Dr. Bruce Dale, who 
believes that within 5 to 6 years with his continuing cellulosic 
research and other things, there can be an ethanol product at the pump 
for $1.25 a gallon. $1.25 a gallon.
  That is an economy built entirely on the energy of the United States. 
We are going to build the refineries here that refine the ethanol 
product. We are

[[Page 15534]]

going to transport that fuel to the pumps all across America and we are 
going to produce those cars right here in the United States.

                              {time}  1600

  It is good for the environment. And it is good for reducing our 
demand on foreign oil.
  Madam Speaker, I think this is long overdue. The science of this is 
so exciting. We are right on the edge of turning the corner, not only 
from corn-based, but from switch grass and other things. It is all 
right here. This is just part of that three-legged stool. It is the 
research and development.
  It is the ability, as we passed not so long ago, the energy bill that 
gave incentives for more ethanol refineries all across the country of 
some 93, four being built in Michigan, being built all over the United 
States is starting to catch on.
  The last leg of that stool to make this successful is distribution. 
And this is that kick-start that we so desperately need. Again, Madam 
Speaker, we think this is an important bill at an important time in our 
history. We can see the conflicts around the world, how it draws us in 
to some of the worst governments the world has to offer.
  This is our chance in America to stand up for our American farmers, 
for our ingenuity, for our ability to produce clean burning fuel for 
the cars that we use in this wheeled economy of ours. We can move 
forward through innovation. This bill is that kick start that is so 
desperately needed to do it.
  Madam Speaker, these grants will be for no more than $30,000 to 
$60,000 per business for the purpose of expanding the availability of 
alternative fuel infrastructure. There is no new program here. That is 
really important. We did not create a new program to do this. This is 
part of the Clean Cities Program. We just redirected their purpose a 
little bit.
  Madam Speaker, there are no taxpayer dollars involved. All of the 
money involved is by the fines paid. In addition, Madam Speaker, in an 
e-mail received by the Congressional Budget Office dated July 19, 2006, 
it states that ``this would not affect direct spending; in other words, 
it has no cost.''
  Madam Speaker, I urge the quick passage of this bill as we move to 
the next phase of how we operate our motor vehicles all across this 
great country, and how we reduce our dependence on foreign oil.
  Madam Speaker, I reserve the balance of my time.
  Mr. GORDON. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, even small efforts to improve the availability of E-85 
fuel across the Nation is a step in the right direction for reducing 
our dependency on foreign oil. There are nearly 5 million vehicles on 
the road today capable of operating on E-85, a blend of 15 percent 
gasoline and 85 percent ethanol.
  Yet there are currently only 600 gas stations with E-85 pumps 
available. That means less than 1 percent of gas stations offer 
consumers the opportunity to use this alternative fuel in their 
vehicles.
  In 2004, CAFE penalties totaled nearly $20 million. The legislation 
before us would divert these funds into a grant program for independent 
gas stations. These grants will be used to install pumps and other 
infrastructure necessary to dispense E-85.
  Madam Speaker, while there is more work to be done on this matter, 
this legislation is a small step in the right direction. I urge its 
passage
  Madam Speaker, I yield back the balance of my time.
  Mr. HAYES. Madam Speaker, today I rise in strong support of H.R. 
5534, the E85 Kick-Start Bill. I am a proud co-sponsor of this bill and 
I applaud my good friend and colleague, Congressman Mike Rogers, for 
bringing this bill to the floor and helping the U.S. in the fight for 
energy independence.
  High energy prices are a significant threat to our long-term economic 
well-being and we need to aggressively pursue a goal of energy 
independence for our Nation. This independence can only be achieved 
through greater domestic production of energy conservation and the use 
of alternative energy sources. Unfortunately, there are no quick fixes 
to the energy crisis that is before our country. It will take years to 
build new refineries and mass transit systems. But right now, there are 
6 million vehicles on the road that can use E85, an alternative blend 
of fuel using 85 percent ethanol and 15 percent gasoline. What we are 
missing is a distribution network to make this gasoline alternative 
feasible and this legislation seeks to double that network, which is 
critical to expanding the use of alternative fuels.
  Earlier in the year, I introduced the E85 Investment Act, which would 
increase the tax credit from 30 percent to 75 percent, up to $30,000, 
for E85 tanks and pumps.
  This legislation embraces the goal of increasing alternative fuel 
infrastructure. Specifically, this bill creates a federal ``Fuel 
Economy Fund'' by diverting the corporate average fuel efficiency 
(CAFE) penalties currently paid by automakers from the general treasury 
to the ``Fuel Economy Fund.'' The legislation also calls for up to a 
$30,000 grant to station owners who invest in alternative fuel pumps 
and fuel stations, including E85 infrastructure.
  I want to thank Mike Rogers for being a leader in this effort to help 
bring energy independence to our Nation. This legislation will help our 
Nation truly invest in alternative fuels and give consumers a choice 
when they go to the pump. I look forward to continuing to work with you 
to identify other ways we can help strengthen our Nation's economy.
  Madam Speaker, I urge my colleagues to vote in favor of the 
underlying bill.
  Mr. ROGERS of Michigan. Madam Speaker, I yield back the balance of my 
time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Michigan (Mr. Rogers) that the House suspend the rules 
and pass the bill, H.R. 5534, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. HENSARLING. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this question will 
be postponed.

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