[Congressional Record (Bound Edition), Volume 153 (2007), Part 12]
[Senate]
[Pages 17032-17035]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           PASSAGE OF H.R. 6

  Mr. DORGAN. Mr. President, I want to thank my friend from Hawaii, the 
chairman of the Commerce, Science and Transportation Committee, for 
sponsoring this amendment that was added to energy legislation last 
evening.
  This energy legislation seeks to expand the Nation's supply of 
renewable biofuels and to begin moving our base of transportation fuel 
toward renewable energy. Across America, including in my State of North 
Dakota, American farmers have the ability to grow abundant supplies of 
corn and energy crops from which ethanol and other transportation 
biofuels can be manufactured. However, our Nation's ability to produce 
an abundant supply of

[[Page 17033]]

transportation biofuels will be of no use if we are not able to 
transport these biofuels to the population centers where they are 
needed. Today, due to the special qualities of biofuels, there are no 
pipelines that can move them to market. Thus, transportation is 
dependent primarily on trucks and rail, except in those rare cases 
where water transportation is available between the areas where the 
biofuels are produced and consumed.
  Last week, the Government Accountability Office released a report 
entitled ``Biofuels--DOE Lacks a Strategic Approach to Coordinate 
Increasing Production with Infrastructure Development and Vehicle 
Needs.'' The summary of the report states, in the second paragraph:

       Existing Biofuel distribution infrastructure has limited 
     capacity to transport the fuels and deliver them to 
     consumers. Biofuels are transported largely by rail and the 
     ability of that industry to meet growing demand is uncertain.

  If our Nation is to realize the potential of sustainable, 
domestically produced transportation fuels, we can have no uncertainty 
concerning whether the rail industry can transport the amount of 
biofuels that the Nation will be producing. Therefore, Senator Inouye 
and I have joined in this amendment which calls for a joint study by 
the Secretaries of Energy and Transportation. The study will consider 
two primary issues and a number of related issues. First, will there be 
sufficient railroad infrastructure to move the amount of biofuels the 
Nation will be producing? Second, will that railroad transportation 
occur in a competitive environment in which the cost is reasonable and 
the service is reliable?
  Ensuring adequate, reliable, and cost-effective rail transportation 
for ethanol and other transportation biofuels that will become so 
important to the Nation is an essential element of the Nation's policy 
to move toward sustainable, domestic supplies of energy. I thank my 
friend from Hawaii, the chairman of the Commerce, Science and 
Transportation Committee, for joining with me to pursue this study, and 
I look forward to working with him to ensure that our national rail 
system is adequate, reliable, and competitive.
  Mr. KERRY. Mr. President, yesterday the U.S. Senate passed 
comprehensive energy legislation that will set the course for our 
national energy security in the decades to come. The members of this 
body were able to reach important conclusions regarding the need for 
increased corporate average fuel economy standards, improved energy 
efficiency for buildings and appliances, a national standard to help 
accelerate the development of renewable fuels, and carbon sequestration 
technology to capture carbon emitted through the burning of coal. The 
Energy bill approved by the Senate truly represents a shift toward a 
comprehensive, responsible, and focused national energy policy.
  Not to be forgotten in establishing this policy are America's small 
business owners. There are nearly 26 million small businesses in this 
country--nearly 26 million business owners that are focused on keeping 
their doors open and putting food on the table for their families. And 
while climate change and national energy security sometimes seem like 
distant threats compared to rising health care costs and staying 
competitive in an increasingly global economy, small business owners 
are telling us that energy costs are indeed a concern. The National 
Small Business Association recently conducted a poll of its members, 
asking how energy prices affected their business decisions. Seventy-
five percent said that energy prices had at least a moderate effect on 
their businesses--with roughly the same number saying that reducing 
energy costs would increase their profitability. Despite these numbers, 
only 33 percent have invested in energy efficiency measures.
  In March of this year, I convened a hearing in the Committee on Small 
Business and Entrepreneurship to look at what small businesses can do 
to confront global warming. We learned over the course of that hearing 
just how much can be done to help small businesses become energy 
efficient. We also learned just how little the current administration 
is doing. The Environmental Protection Agency estimates that small 
businesses consume roughly 30 percent of the commercial energy consumed 
in this country--that is roughly 2 trillion kBtu of energy per year, 
and it's costing small business concerns approximately $29 million a 
year. Through efforts to increase energy efficiency, small businesses 
can contribute to America's energy security, help to combat global 
warming, and add to their bottom line all at the same time.
  Last night, I worked with Senator Snowe to include two amendments to 
H.R. 6 that will go a long way toward helping small business owners 
become more energy efficient. These amendments, which together 
represent the provisions included in S. 1657, the Small Business Energy 
Efficiency Act of 2007, require the Small Business Administration, SBA, 
to implement an energy efficiency program that was mandated in the 2005 
Energy Policy Act. To date, the SBA has dragged its feet in 
implementing a program that could help small business owners to become 
more energy efficient. Administrator Preston should implement this 
important program today, and this bill directs him to do so.
  Second, this legislation establishes a program to increase energy 
efficiency through energy audits at Small Business Development Centers, 
SBDCs. The Pennsylvania SBDC currently operates a similar program, and 
has successfully assisted hundreds of businesses to become more energy 
efficient. As a result of the program, six of the eight winners of the 
2006 ENERGY STAR Small Business Awards given by the EPA went to 
Pennsylvania businesses. This program should be replicated so that 
small businesses across the country have the same opportunity to cut 
energy costs through the efficiency measures.
  Third, the SBA Administrator is authorized to guarantee on-bill 
financing agreements between businesses and utility companies, to cover 
a utility company's risk in entering into such an agreement. The 
federal government should encourage utility companies to pursue these 
agreements with businesses, where an electric utility will cover the 
up-front costs of implementing energy efficiency measures, and a 
business will repay these costs through the savings realized in their 
energy bill.
  Fourth, the legislation creates a telecommuting pilot program through 
the SBA. The Administrator is authorized to establish a program that 
produces educational materials and performs outreach to small 
businesses on the benefits of telecommuting.
  Finally, the legislation encourages increased innovation by providing 
a priority status within the SBIR and STTR programs that ensures high 
priority be given to small business concerns participating in energy 
efficiency or renewable energy system research and development 
projects.
  As a nation, we have much to do to secure our future energy supply 
and to solve the international crisis that is global warming. Last 
night's approval of H.R. 6 demonstrates this body's will to set the 
right course, and America's small business owners should know that 
Congress is providing them with the tools they need to join the 
crusade.
  Mr. President, last night, we successfully passed comprehensive 
energy legislation which included a significant increase in fuel 
economy standards. For far too long, this has been the third rail of 
energy policy. It has been one of Washington's great failures in 
leadership. But thanks to a bipartisan effort on the part of so many of 
my colleagues, these new requirements will cut automobile carbon 
emissions dramatically and will help put our country on a path toward 
energy dependence. The oil savings from the CAFE provision alone will 
ultimately total 1.2 million barrels per day by 2020.
  When we first established CAFE standards for passenger cars and 
trucks in 1975, within 10 years we increased fuel economy by 70 percent 
and decreased our oil dependence from 36 percent to 27 percent. Ever 
since then, we have been stuck in neutral. The fuel

[[Page 17034]]

economy of the average new passenger vehicle is lower today than it was 
10 years ago.
  We now have overcome the forces of inertia, and our country is now 
poised to at last revolutionize the way we drive. I am proud of the 
bipartisan commitment to this issue, which was demonstrated with 
historic vote. I particularly would like to thank my colleagues, 
Senator Inouye and Senator Stevens, for their leadership on this issue.
  I was proud to cast my vote in support of this important bipartisan 
energy legislation, which will dramatically increase our use of 
renewable fuels, incentivize energy efficiency, reduce our oil 
dependence, and address the growing threat of climate change. This bill 
truly puts us on a path toward a cleaner, healthier, and more secure 
energy future.
  Mr. KOHL. Mr. President, I rise today to talk about the Energy bill 
that passed with my support. The bill increases biofuels production 
from the current mandate of 7.5 billion gallons in 2012 to 36 billion 
gallons by 2022. The bill also establishes new appliance and lighting 
efficiency standards in Government buildings and includes Federal 
grants and loan guarantees to promote research into fuel-efficient 
vehicles, including hybrids, advanced diesel and battery technologies.
  I was pleased that this bill included my very important NOPEC 
amendment, an amendment that passed with the support of 70 Senators. 
The NOPEC amendment will hold OPEC member nations to account under U.S. 
antitrust law when they agree to limit the supply or fix the price of 
oil in violation of the most basic principles of free competition. It 
will authorize the Justice Department--and only the Justice 
Department--to file suit against nations or other entities that 
participate in a conspiracy to limit the supply, or fix the price, of 
oil. In addition, it will specify that the doctrines of sovereign 
immunity and act of state do not exempt nations that participate in oil 
cartels from basic antitrust law. Further, it will give our Government 
a much needed tool to fight back against the selfish price-fixing 
conspiracy of OPEC members, a conspiracy that significantly raises the 
cost of gasoline and other essential energy products to millions 
consumers every day.
  I was also pleased that this bill included an amendment I offered 
that would allow small manufacturers to access awards under the 
Advanced Technology Vehicles Manufacturing Incentive title. Considering 
that small manufacturers that employ roughly 75 employees or less 
contribute 29.5 percent to all value added to automobiles, it made 
sense that they should have the opportunity to get these awards.
  I was disappointed that the Energy bill didn't include provisions to 
require utilities to provide 15 percent of their electric power from 
renewable sources by 2020. The reduction in the use of fossil fuels to 
generate electricity would have strengthened our national energy 
security by diversifying our sources of electric generation. Also, the 
bill did not include an energy tax package that would have created 
incentives for renewable power, biofuels, plug-in hybrids, clean coal 
and other technologies.
  Taken together, this bill allows the United States to become more 
energy efficient in a cost effective and responsible way.
  Mrs. MURRAY. Mr. President, I rise today to discuss our efforts to 
address the energy challenges that are facing our Nation today and the 
solutions we need for tomorrow. I am pleased that the Senate last night 
passed a comprehensive energy bill that moves our Nation forward.
  We all know how important energy is to our economy, our families, and 
our quality of life. The high cost of energy is putting a painful 
squeeze on every sector of my home State: Commuters notice every time 
they fill up the tank; businesses are struggling with the higher costs 
of transportation; industry is feeling the impact of higher energy 
costs, and farmers feel the pain both in the price of fuel and 
fertilizer.
  The question is, what are we going to do about it? It is clear there 
are no silver bullets.
  It is going to take smart policies, carried out consistently over 
many years, to begin to change the way we use and save energy.
  Overall, I believe we must focus on several priorities, including: 
making America more self-reliant so we are less dependent on foreign 
sources of energy; using innovation to meet our energy needs in 
creative ways; supporting conservation to reduce our energy demands; 
investing in education so we can cultivate the scientists, researchers, 
and workers of the new energy future; and protecting consumers from 
unscrupulous energy manipulators.
  Before I turn to those specific priorities, I want to share with the 
Senate some of the innovative things that leaders in Washington State 
are doing to meet our energy needs.
  Washington State is moving forward on renewable sources of energy 
like wind energy.
  In April, I had an opportunity to visit the Hopkins Ridge Wind Farm 
in Columbia County, WA. This is a Puget Sound energy facility that has 
83 wind turbines. When they are running at peak capacity, they can 
generate enough energy on an average basis to supply about 50,000 
homes.
  In fact, the Ports of Longview and Vancouver in southwest Washington 
have become a gateway for bringing wind energy components into the 
United States. I have been able to support their work through the wind 
energy tax credit. Last year, I got to visit the Port of Longview and 
see how our longshoremen expertly handle these massive turbines.
  Washington's agriculture community is stepping up and embracing 
renewable sources of energy. This Spring, I was in Colfax, WA, for a 
roundtable discussion with farmers, and energy was a big part of the 
discussion.
  I can tell you that Washington State farmers are poised to become 
active players in the renewable energy market. We talked about ways to 
help them make the transition into biofuel crops.
  And there are other innovative projects. In Gray's Harbor, we are 
moving forward with a biodiesel plant. It will be a new home for 
Washington state biofuel production, a new source of jobs for the 
people of Grays Harbor County, and a new way to combat high gas prices. 
And in the Tri-Cities, we are moving forward with a new research center 
on biofuels and bioproducts.
  In my home State of Washington, we have also been testing some 
cutting edge technology that puts information into the hands of 
consumers so they can make informed decisions about how--and when--they 
use energy.
  With the Pacific Northwest National Laboratory and other partners, I 
helped kick off a GridWise demonstration project to test smart 
appliances. These appliances give consumers the power to decide when to 
run them based on the cost of energy. For example, your thermostat 
could indicate to you when heat costs are at a premium. Or you could 
set your dryer to run only when energy is a certain price.
  We all know that the cost of energy fluctuates throughout the day. 
Unfortunately, today's consumers don't know the real cost of energy at 
any given time. So it is hard for them to make informed energy choices.
  These innovative appliances were tested for a year in 150 homes, a 
water-pumping station and a commercial building. The results are 
impressive. Researchers found that giving consumers these tools helps 
save energy and reduce demand on the electricity grid. They found that 
real-time pricing can also alleviate the need to build a new 
substation.
  So I am really proud of the innovative work that is already underway 
in Washington State, and both Senator Cantwell and I believe it can 
serve as a model for the progress we can make in the rest of the 
country.
  Now I would like to turn to my energy priorities and some of the 
positive steps that this bill takes.
  My first priority is to help make America more energy self-reliant. 
Here at home we have tremendous demand for energy and that demand is 
growing. Unfortunately, today we are still too dependent on foreign 
sources of energy,

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particularly oil. That dependence affects our security and our 
relations with other countries. We need to reduce our dependence, and 
we can do that through some of the measures in this bill. This bill 
includes a renewable fuels standard that will increase our use of 
renewable fuels, including biofuels like cellulosic ethanol and biogas. 
It also includes tighter CAFE standards for our auto industry, and it 
increases the number of bioresearch centers focused on biofuel. This 
bill will also help us diversify our fuel sources by promoting 
alternative fuels, such as ethanol, biogas, and biodiesel.
  I am disappointed that important tax incentives, which would spur the 
development of renewable electricity, increase the production of 
alternative transportation fuels, and help homeowners who make their 
properties more energy efficient, were blocked in a procedural effort 
by the minority. I am hopeful that these important investments will be 
restored as this legislation moves forward.
  Second, we need to use innovation to help meet our energy needs. This 
bill will help move forward our innovation agenda by increasing 
research and development funding for new technologies. It authorizes 
funding for research in States with low rates of ethanol production. 
This investment could help Washington get off the ground in the area of 
cellulosic ethanol. This bill also boosts research in carbon capture 
and storage. We are doing some interesting work on that at PNNL in my 
home State, and I am pleased to support further research.
  Third, we need to be more aggressive about conserving energy. It is 
everything from choosing compact fluorescent light bulbs and energy 
efficient appliances to consolidating errands so you make fewer trips 
in your car. Through this bill, the Federal Government will lead by 
example by using energy efficiently and employing conservation 
practices. It includes, as I mentioned, higher CAFE standards on our 
vehicles, which will help conserve gasoline. It will promote efficient 
lighting technologies, efficient vehicles and advanced batteries.
  Fourth, we need to expand education so we have the scientists, 
researchers, and workers to help us reach a new generation of energy 
innovation.
  The existing and new technologies that we will deploy to increase our 
self-reliance are complicated, and we need to make sure we have a well-
trained workforce that is able to implement these forward-thinking 
technologies. This entails both continuing education for our current 
workforce, but also training the workers of tomorrow. We must provide 
these training programs while our young people are still in our 
educational system.
  In my home State of Washington, several universities are addressing 
these needs by offering curriculums in this area. For example, Gonzaga 
University in Spokane has a transmission line worker training program.
  Central Washington University in Ellensburg wants to teach its 
students how to operate the efficiency technologies of the future. I 
think we should support these efforts by ensuring funding for programs 
like these. I am pleased that this legislation calls out this important 
issue.
  In Washington State, we are also working to educate the next 
generation of energy innovators.
  Washington State University, the Pacific Northwest National 
Laboratory, and the State of Washington have worked together to create 
the Bioproducts, Sciences, and Engineering Laboratory in Richland.
  This is a pioneering research center where researchers will develop 
technology to turn biomass into energy and products. It will have 
teaching laboratories and classrooms and is located on WSU's Tri-Cities 
campus. I have been pleased to support this project from its inception, 
and I will continue to do so.
  Finally, we need to protect consumers from those who would manipulate 
the price of energy to take advantage of high demand. One of the things 
that the Enron scandal revealed is that some people were happy to 
create false shortages of energy in order to drive up the price.
  This bill helps us fight energy manipulators through a price-gouging 
bill that I co-sponsored, which is including in the underlying bill.
  We have a lot of challenges in front of us as individuals and as a 
country when it comes to energy. But we also have the ability to craft 
responsible, smart legislation that will help move us in the right 
direction.
  I am pleased to be working to make our country more self-reliant, to 
invest in innovation, conservation and education and to help protect 
consumers. I am honored to come from a State that is producing some of 
the most innovative energy ideas anywhere, and I am excited about 
moving this bill forward so we can use that progress to benefit our 
entire country.

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