[Congressional Record (Bound Edition), Volume 152 (2006), Part 9]
[Senate]
[Pages 12241-12242]
[From the U.S. Government Publishing Office, www.gpo.gov]




 INTRODUCTION OF THE RENEWABLE FUELS AND ENERGY INDEPENDENCE PROMOTION 
                                  ACT

                                 ______
                                 

                         HON. KENNY C. HULSHOF

                              of missouri

                    in the house of representatives

                         Tuesday, June 20, 2006

  Mr. HULSHOF. Mr. Speaker, today, my colleague Earl Pomeroy of North 
Dakota and I are introducing the Renewable Fuels and Energy 
Independence Promotion Act. We are joined by a bipartisan group of 
original cosponsors, a complete list of which follows this statement.
  Rising fuel prices have again focused the public's attention on our 
nation's energy situation. Gas is at or near $3 a gallon across the 
country. We are importing over 60% of the oil we use, and this number 
is expected to grow to over 70% by 2025. In addition to our own 
increased domestic demand for energy, there is instability in oil-
producing areas of the world, and demand for petroleum from China and 
India will continue to apply upward pressures on the price of oil.
  Perhaps the one point in the energy debate that garners agreement 
from both sides of the aisle is that federal policy should strive to 
reduce our dependence on foreign oil. And though there may be 
ideological differences about how to achieve this end, there is broad, 
bipartisan consensus that domestically produced renewable fuels must 
play an integral role in a plan to promote energy independence.
  Consistent with this common sense premise, we are introducing the 
Renewable Fuels and Energy Independence Promotion Act. This legislation 
will provide a permanent extension of the Tax Code's primary renewable 
fuels tax incentives for ethanol and biodiesel. The idea is to provide 
a single legislative vehicle for members to show their support of 
renewable tax incentives and to support a policy that sees a public 
good in reducing our dependence on foreign oil by boosting our energy 
independence.
  If renewable fuels are to displace significant amounts of petroleum 
as transportation fuel, we must take bold, aggressive steps to achieve 
this end. History has demonstrated that the federal ethanol tax 
incentive has accomplished exactly what it is designed to do--promote 
the production and use of alcohol fuels. The numbers don't lie:
  According to the Renewable Fuels Association, the United States 
produced 175 gallons of alcohol fuels in the year 1980. Today, we have 
an industry with a 4.817 billion gallon production capacity, and 
another 2.122 billion gallons of production capacity is currently under 
construction.
  These numbers prove the tax incentive is working. Previous Congresses 
and Presidents--both Republican and Democrat--have recognized the 
benefits from replacing petroleum products with domestically produced 
renewable fuels. Long-term, consistent, and bipartisan support of 
ethanol tax incentives have yielded positive results that are helping 
reduce our dependence on foreign oil. As production increases and new 
technologies--such as cellulosic ethanol production--are perfected, 
renewable fuels will play an even greater role in our economy. History 
has shown us that the tax incentive works, and a long-term commitment 
to a federal policy that supports renewable fuels will help provide 
stability and promote growth for those working to expand the use of 
ethanol in the United States.
  Congress should also strongly support efforts to promote biodiesel. 
Biodiesel is a clean-burning, renewable fuel that can be produced from 
a variety of feedstocks, including soybeans. It can be blended with 
diesel fuel and burned in conventional diesel engines without 
modification to the engine.
  From a policy perspective, biodiesel shares many of the positive 
characteristics of ethanol. It is environmentally friendly and produced 
from renewable sources. Its production helps promote economic growth 
and opportunities in value-added agriculture. And most importantly, 
expanded use of biodiesel will help make America more energy 
independent by displacing petroleum products with a renewable fuel 
source.
  Though there are distinct differences between biodiesel and ethanol, 
the situation facing the biodiesel industry today resembles the 
challenges facing ethanol industry upon its inception. I think we can 
replicate ethanol's success with biodiesel. If federal policy can 
increase demand and spur the development of the infrastructure required 
to utilize biodiesel, the nation as a whole will reap the benefits.
  The current tax incentive took effect in 2005, and is currently set 
to expire after 2008. And though things are going well for the 
industry, and the market is beginning to embrace the fuel, there is 
more work that must be done. Federal policy should create an atmosphere 
that rewards entrepreneurs for investing their time and resources to 
build the production facilities and distribution systems needed to 
bring biodiesel to market. Providing certainty to the markets and to 
the industry will help further this progress, and federal policy can 
help provide this certainty through a long-term extension of the 
biodiesel tax incentive.
  Mr. Speaker, I hope my colleagues will join me in supporting a strong 
federal commitment to the development of renewable fuels.
  Original Cosponsors, Renewable Fuels and Energy Independence 
Promotion Act: Pomery, Nussle, Peterson, Shimkus, Terry, Boswell, 
Osborne, Emanuel, Moran (KS), Salazar, Moore (KS), and Herseth.

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