    [Public Papers of the Presidents of the United States: George W. Bush (2005, Book I)]
    [May 16, 2005]
    [Pages 799-806]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks at the Virginia BioDiesel Refinery in West Point, Virginia
    May 16, 2005

        Thank you all. Please be seated. Thanks for coming. Thanks for the
    warm welcome, and thank you for giving me a chance to get out of
    Washington. [Laughter] I'm proud to be the first sitting President to
    visit this part of Virginia. They tell me George Washington came--
    [laughter]--before he was President. I thought it was time for another
    George W. to stop by.
        I appreciate the folks here at Virginia BioDiesel for showing me
    around. You know, I love the innovative spirit of our entrepreneurs in
    this country. And the folks here have got incredible vision, and they're
    willing to take risk to innovate. What I think is interesting is they
    have combined farming and modern science. And by doing so, you're using
    one of the world's oldest industries to power some of the world's newest
    technologies. After all, they're taking soybeans and converting it to
    fuel and putting it into brandnew Caterpillar engines.
        Biodiesel is one of our Nation's most promising alternative fuel
    sources. And by developing biodiesel, you're making this country less
    dependent on foreign sources of oil. As my friend George Allen said, that's the reason I have come. I want to talk
    about the need for this country to have a comprehensive energy strategy.
    I appreciate George's leadership, and I appreciate his friendship.
    You've got a fine United States Senator in Senator George Allen.
        And today I took a helicopter down from the White House with our
    Secretary of Agriculture, Mike Johanns. Mike,
    thank you for coming. Mike is from the State of Nebraska. For those of
    you involved with agriculture, he knows something about it, you'll be
    happy to hear. He was raised on a dairy farm. He's a good man, and I
    really appreciate he and his lovely wife.
    He was the Governor of Nebraska when I called him. And he quit, and he
    came to Washington. And I want to thank you for serving our country,
    Michael. Thank you very much.
        I want to thank the members of the congressional delegation who have
    joined us, Congressman Bobby Scott,
    Congresswoman Jo Ann Davis, Congressman Eric
    Cantor, Congressman Randy Forbes, Congresswoman Thelma
    Drake--she brought her husband, Ted, with her.
    Thank you all for serving. I enjoy working with you all.
        I want to thank a member of the statehouse who is here; State
    Senator Walter Stosch is with us today.
    Walter, thank you for coming.
        The mayor is here from the city of West Point, Andy
    Conklin. I want to thank you, Mr. Mayor,
    for joining us. I like to tell mayors--they never ask for my advice; I
    give it anyway when I see them--and that is: Fill the potholes.
    [Laughter]
        I want to thank the administrator, John Budesky, for joining us. I want to thank all the State and local
    officials. I want to thank you all for coming as well. It's such a
    beautiful day to be outside, isn't it?
        I want to thank Douglas Faulkner,
    who is the managing member of the Virginia BioDiesel Refinery. Thank
    you, Douglas, for--there he is right there. Douglas has brought a lot of
    his family here. He brought his father, Norman, and brother, Norman, the
    Norman boys. [Laughter]

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        Thank Allen Schaeffer as well. And I
    want to thank the folks who lent the equipment for this event.
        One of the things that is really important for Government is to make
    sure that the environment is such that the entrepreneurial spirit
    remains strong. Ever since I've been elected, I tell people that the
    role of Government is not to try to create wealth but an environment in
    which people are willing to take risks. That's the role of Government.
        And across our Nation, small businesses like Virginia BioDiesel are
    taking risks and are developing innovative products. As a matter of
    fact, small businesses create most of the new jobs in America. I don't
    know if you know that or not, but 70 percent of new jobs in this country
    are created by small businesses and entrepreneurs. And I'm pleased to
    report that the small-business sector of America is strong today. As a
    matter of fact, over the last 2 years we have added 3.5 million new
    jobs. More Americans are working today than ever in our Nation's
    history.
        The national unemployment rate is down to 5.2 percent. That's below
    the average rate of the 1970s, 1980s, and 1990s. And the unemployment
    rate in the great Commonwealth of Virginia is 3.3 percent. And over the
    next years, we've got to continue to build on this progress. To make
    sure our families are strong and businesses are strong and our farmers
    can stay in business, we have got to keep taxes low, and we will. As a
    matter of fact, for the sake of our family farmers and for the sake of
    our entrepreneurs, we'll make sure the death tax stays on the path to
    extinction. We'll continue to cut needless regulations, and I'm going to
    continue to work with Congress to stop the spread of junk lawsuits.
        We're going to be wise with your money. We've got a simple motto in
    my office when it comes to spending your money. One, we understand it's
    your money and not the Government's money. And secondly, we're going to
    work to ensure that every taxpayer dollar is spent wisely or not at all.
    We'll continue to open up foreign markets to America's crops and
    products and ensure a level playing field for American farmers and
    producers and workers.
        And to guarantee Americans have a secure and dignified retirement--
    if you're getting your check, you don't have anything to worry about on
    this issue. You need to worry about your children and your grandchildren
    when it comes to Social Security. To make sure we have a retirement
    system that works for a future generation of Americans, Congress must
    work with me to strengthen and save Social Security for a generation to
    come.
        And to keep creating jobs and to keep this economy growing, it is
    important for our country to understand we need an affordable, reliable
    supply of energy. And that starts with pursuing policies to make prices
    reasonable at the pump. Today's gasoline prices and diesel prices are
    making it harder for our families to meet their budgets. These prices
    are making it more expensive for farmers to produce their crop, more
    difficult for businesses to create jobs.
        Americans are concerned about high prices at the pump, and they're
    really concerned as they start making their travel plans, and I
    understand that. I wish I could just wave a magic wand and lower the
    price at the pump; I'd do that. That's not how it works. You see, the
    high prices we face today have been decades in the making. Four years
    ago, I laid out a comprehensive energy strategy to address our energy
    challenges. Yet Congress hasn't passed energy legislation. For the sake
    of the American consumers, it is time to confront our problems now and
    not pass them on to future Congresses and future generations.
        The increase in the price of crude oil is largely responsible for
    the higher gas prices and diesel prices that you're paying at the pump.
    For many years, most of the crude oil refined into gasoline in America

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    came from home, came from domestic oilfields. In 1985, 75 percent of the
    crude oil used in U.S. refineries came from American sources; only about
    25 percent came from abroad. Over the past few decades, we've seen a
    dramatic change in our energy equation. American gasoline consumption
    has increased by about a third, while our crude production has dropped
    and oil imports have risen dramatically.
        The result today--the result is that today only 35 percent--only 35
    percent--of the crude oil used in U.S. refineries comes from here at
    home; 65 percent comes from foreign countries like Saudi Arabia and
    Mexico and Canada and Venezuela. You see, we're growing more dependent
    on foreign oil. Because we haven't had an energy strategy, we're
    becoming more dependent on countries outside our borders to provide us
    with the energy needed to refine gasoline. To compound the problem,
    countries with rapidly growing economies, like India and China, are
    competing for more of the world oil supply. And that drives up the price
    of oil, and that makes prices at the pump even higher for American
    families and businesses and farmers.
        Our dependence on foreign oil is like a foreign tax on the American
    Dream, and that tax is growing every year. My administration is doing
    all we can to help ease the problem in the short run. We're encouraging
    oil-producing countries to maximize their production so that more crude
    oil is on the market, which will help take the pressure off price. We'll
    make sure that consumers here at home are treated fairly; there's not
    going to be any price gouging here in America. But to solve the problem
    in the long run, we must address the root causes of high gasoline
    prices. We need to take four steps toward one vital goal, and that is to
    make America less dependent on foreign sources of oil.
        We must be better conservers. We must produce and refine more crude
    oil here in America. We must help countries like India and China to
    reduce their demand for crude oil. And we've got to develop new fuels
    like biodiesel and ethanol as alternatives to diesel and gasoline.
        Americans have been waiting long enough for a strategy. It is time
    to deliver an effective, commonsense energy strategy for the 21st
    century. And that's what I want to talk to you about today.
        The first step toward making America less dependent on foreign oil
    is to improve fuel conservation and efficiency. My administration is
    leading research into new technologies that reduce gas consumption while
    maintaining performance, such as lightweight auto parts and more
    efficient batteries.
        We're raising fuel economy standards for sport utility vehicles and
    vans and pickup trucks, starting with model year 2005. When these
    reasonable increases in mileage standards take full effect, they will
    save American drivers about 340,000 barrels of gasoline a day. That's
    more gas than you consume every day in the entire State of Virginia.
        To improve fuel efficiency, we're also taking advantage of more
    efficient engine technologies. Hybrid vehicles are powered by a
    combination of internal combustion engine and an electric motor. Hybrid
    cars and trucks can travel twice as far on a gallon of fuel as gasoline-
    only vehicles, and they produce lower emissions. To help more consumers
    conserve gas and protect the environment, my budget next year proposes
    that every American who purchases a hybrid vehicle receive a tax credit
    of up to $4,000.
        Diesel engine technology has also progressed dramatically in the
    past few decades. Many Americans remember the diesel cars of the 1970s.
    They made a lot of noise, and they spewed a lot of black smoke. Advances
    in technology and new rules issued by my administration have allowed us
    to leave those days of diesel behind. Our clean diesel rules will reduce
    air pollution from

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    diesel engines by about 90 percent and reduce the sulfur content of
    diesel fuel by more than 95 percent.
        Today I saw a diesel-powered truck that can get up to 30 percent
    better fuel economy than gasoline-powered vehicles without the harmful
    emissions of past diesels. I mean, the fellow got in the truck and
    cranked it up, and another man got on the ladder and he put the white
    handkerchief by the emissions port, and the white handkerchief remained
    white. In other words, technology is changing the world. Our engines are
    becoming cleaner.
        Consumers around the world are taking advantage of clean diesel
    technology. About half of newly registered passenger cars in Western
    Europe are now equipped with diesel engines. Yet in America, fewer than
    1 percent of the cars on the road use diesel. According to the
    Department of Energy, if diesel vehicles made up 20 percent of our fleet
    in 15 years, we would save 350,000 barrels of oil a day. That's about a
    quarter of what we import every day from Venezuela.
        To help more Americans benefit from a new generation of diesel
    technology, I have proposed making owners of clean diesel vehicles
    eligible for the same tax credit as owners of hybrid vehicles. America
    leads the world in technology. We need to use that technology to lead
    the world in fuel efficiency.
        The second step toward making America less dependent on foreign oil
    is to produce and refine more crude oil here at home in environmentally
    sensitive ways. By far the most promising site for oil in America is the
    Arctic National Wildlife Refuge in Alaska. I want you all to hear the
    facts about what we're talking about. Technology now makes it possible
    to reach the oil reserves in ANWR by drilling on just 2,000 acres of the
    19 million acres. Technology has advanced to the point where you can
    take a small portion--2,000 acres--of this vast track of land and
    explore for oil in an environmentally sensitive way.
        As a matter of fact, developing this tiny area could yield up to
    about a million barrels of oil a day. And thanks to technology, we can
    reach that oil with almost no impact on land or wildlife. To make this
    country less dependent on foreign oil, Congress needs to authorize pro-
    growth, pro-jobs, pro-environment exploration of ANWR.
        As we produce more of our own oil, we need to improve our ability to
    refine it into gasoline. There has not been a single new refinery built
    in America since 1976. Here in Virginia, you have only one oil refinery,
    the Yorktown refinery. And that was built in the 1950s. To meet our
    growing demand for gasoline, America now imports more than a million
    barrels of fully refined gasoline every day. That means about one of
    every nine gallons of gas you get in your pump is refined in a foreign
    country. To help secure our gasoline supply and lower prices at the
    pump, we need to encourage existing refineries like Yorktown to expand
    their capacity. So the Environmental Protection Agency is simplifying
    rules and regulations for refinery expansion. And they will do so and
    maintain strict environmental safeguards at the same time.
        We also need to build new refineries. So I've directed Federal
    agencies to work with States to encourage the construction of new
    refineries on closed military facilities and to simplify the permitting
    process for these new refineries. By promoting reasonable regulations,
    we can refine more gasoline for more American consumers. And that means
    we're less dependent on foreign sources of energy.
        The third step toward making America less dependent on foreign oil
    is to ensure that other nations use technology to reduce their own
    demand for crude oil. It's in our interest--it's in our economic
    interest and our national interest to help countries like India and
    China become more efficient users of oil, because that would help take
    the pressure off global oil supply, take the pressure off prices here at
    home. At the G-8 meeting in July, I'm going to ask other

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    world leaders to join America in helping developing countries find
    practical ways to use clean energy technology, to be more efficient
    about how they use energy. You see, when the global demand for oil is
    lower, Americans will be better off at the gas pump.
        The final step toward making America less dependent on foreign oil
    is to develop new alternatives to gasoline and diesel. Here at Virginia
    BioDiesel, you are using Virginia soybean oil to produce a clean-burning
    fuel. Other biodiesel refiners are making fuel from waste products like
    recycled cooking grease. Biodiesel can be used in any vehicle that runs
    on regular diesel and delivers critical environmental and economic
    benefits.
        Biodiesel burns more completely and produces less air pollution than
    gasoline or regular diesel. Biodiesel also reduces engine wear and
    produces almost no sulfur emissions, which makes it a good choice for
    cities and States working to meet strict air quality standards. And
    every time we use home-grown biodiesel, we support American farmers, not
    foreign oil producers.
        More Americans are realizing the benefits of biodiesel every year.
    In 1999, biodiesel producers sold about 500,000 gallons of fuel for the
    year. Last year, biodiesel sales totaled 30 million gallons. That's a
    60-fold increase in 5 years. More than 500 operators of major vehicle
    fleets now use biodiesel, including the Department of Defense and the
    National Park Service and James Madison University. The County of
    Arlington, Virginia, has converted its fleet of school buses to
    biodiesel, and Harrisonburg is using biodiesel in its city transit
    buses.
        In the past 3 years, more than 300 public fueling stations have
    started offering biodiesel. You're beginning to see a new industry
    evolve. And as more Americans choose biodiesel over petroleum fuel, they
    can be proud in knowing they're helping to make this country less
    dependent on foreign oil.
        Another important alternative fuel is ethanol. Ethanol comes from
    corn, and it can be mixed with gasoline to produce a clean, efficient
    fuel. In low concentrations, ethanol can be used in any vehicle. And
    with minor modifications, vehicles can run on fuel blend that includes
    85 percent ethanol and only 15 percent gasoline.
        Like biodiesel, ethanol helps communities to meet clean air
    standards, farmers to find new markets for their products, and America
    to replace foreign crude oil with a renewable source grown right here in
    the Nation's heartland. Together, ethanol and biodiesel present a
    tremendous opportunity to diversify our supply of fuel for cars and
    buses and trucks and heavy-duty vehicles.
        A recent study by Oak Ridge National Laboratory projected that
    biofuels, such as ethanol and biodiesel, could provide about a fifth of
    America's transportation fuel within 25 years. And that would be good
    for our kids and our grandkids. So there are some things we can do to
    bring that prospect closer to reality. We have extended Federal tax
    credits for ethanol through 2007, and last year I signed into law a 50-
    cent-per-gallon tax credit for producers of biodiesel.
        There's ways Government can help. Congress needs to get me a bill
    that continues to help diversify away from crude oil. My administration
    supports a flexible, cost-effective renewable fuel standard. Its
    proposal would require fuel producers to include a certain percentage of
    ethanol and biodiesel in their fuel. And to expand the potential of
    ethanol and biodiesel even more, I proposed $84 million in my 2006
    budget for ongoing research. I think it makes sense. I think it's a good
    use of taxpayers' money to continue to stay on the leading edge of
    change. And in this case, by staying on the leading edge of change we
    become less dependent on foreign sources of oil.

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        My administration is also supporting another of America's most
    promising alternative fuels, hydrogen. When hydrogen is used in a fuel
    cell, it can power a car that requires no gas and emits pure water
    instead of exhaust fumes. We've already dedicated $1.2 billion to
    hydrogen fuel cell research. I've asked Congress for an additional 500
    million over 5 years to get hydrogen cars into the dealership lot. With
    a bold investment now, we can replace a hydrocarbon economy with a
    hydrogen economy and make possible for today's children to take their
    driver's test in a completely pollution-free car.
        As we make America less dependent on foreign oil, we're pursuing a
    comprehensive strategy to address other energy challenges facing our
    Nation. Along with high gas prices, many families and small businesses
    are confronting rising electricity bills. Summer air-conditioning costs
    are going to make it even more expensive for our homes and office
    buildings. To help consumers save on their power bills, we'll continue
    expanding efforts to conserve electricity. We're funding research into
    energy-efficient technologies for our homes, such as highly efficient
    windows and appliances.
        To ensure the electricity is delivered efficiently, Congress must
    make reliability standards for electric utilities mandatory, not
    optional. We've got modern interstate grids for our phone lines and
    highways. It is time to put practical law in place so we can have modern
    electricity grids as well. All this modernization of our electricity
    grid is contained in the electricity title in the energy bill I
    submitted to the United States Congress.
        To power our growing economy, we also need to generate more
    electricity. Electricity comes from three principal sources, coal and
    natural gas and nuclear power. To ensure that electricity is affordable
    and reliable, America must improve our use of all three. Coal is our
    Nation's most abundant energy resource, and it provides about half of
    your electricity here in Virginia. As a matter of fact, we got coal
    reserves that will last us for 250 more years. But coal presents an
    environmental challenge. We know that. So I've asked Congress to provide
    more than $2 billion over 10 years for a Coal Research Initiative, a
    program that will promote new technologies to remove virtually all
    pollutants from coal-fired powerplants.
        My Clear Skies Initiative will also result in tens of billions of
    dollars in clean coal investments by private companies. It will help
    communities across the State meet stricter air quality standards. To
    help Virginia clean your air and keep your coal, Congress needs to get
    the Clear Skies bill to my desk this year.
        Improving our electricity supply also means making better use of
    natural gas. It's an important power source for our farmers and
    manufacturers and homeowners. We need to increase environmentally
    responsible production of natural gas from Federal lands. To further
    increase our natural gas supply, Congress needs to make clear Federal
    authority to choose sites for new receiving terminals for liquified
    natural gas. In other words, we're getting a lot of natural gas from
    overseas that gets liquified, and we've got to be able to deliquefy it
    so we can get it into your homes. And we need more terminals, and
    Congress needs to give us the authority to site those terminals in order
    to get you more natural gas.
        I don't know if you realize this, but here in Virginia, you get
    about a third of your electricity from nuclear energy. Yet America has
    not ordered a nuclear powerplant since the 1970s. France, by contrast,
    has built 58 plants in the same period. And today, France gets more than
    78 percent of its electricity from nuclear power. In order to make sure
    you get electricity at reasonable prices and in order to make sure our
    air remains clean, it is time for us to start building some nuclear
    powerplants in America.

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        Technology has made it so I can say to you, I am confident we can
    build safe nuclear powerplants for you. Last month I directed the
    Department of Energy to work with Congress to reduce uncertainty in the
    nuclear powerplant licensing process. We're also working to provide
    other incentives to encourage new plant construction, such as Federal
    insurance to protect the builders of the first four new plants against
    lawsuits and bureaucratic obstacles and other delays beyond their
    control. A secure energy future for this country must include safe and
    clean nuclear power.
        Many of the initiatives I've discussed today--and I recognize this
    is a comprehensive plan, but that's what we need in America; we need a
    comprehensive plan--and many of these initiatives are contained in the
    energy bill before the Congress. I want to thank the House for passing
    the energy bill last month. And now it's time for the United States
    Senate to act. You don't have to worry about George Allen. He'll take the lead.
        For the past 4 years, Americans have seen the cost of delaying a
    national energy policy. You've seen firsthand what it means when the
    Nation's Capital gets locked down with too much politics and not enough
    action on behalf of the American people. You've seen it through rising
    power bills; you've seen it through blackouts and high prices at the
    pump. Four years of debate is enough. It is time for the House and the
    Senate to come together and to get a good energy bill to my desk by
    August, and I'll sign it into law.
        I've set big goals for our Nation's energy policy, and I am
    confident our Nation can meet those goals. Americans have a long history
    of overcoming problems through determination and through technology. Not
    long ago, the prospect of running a car on fuel made from soybean oil
    seemed pretty unlikely. I imagine 30 years ago, a politician saying,
    ``Vote for me, and I'll see to it that your car can run on soybean
    oil,'' wouldn't get very far. [Laughter] Here we are, standing in front
    of a refinery that makes it.
        We've got a lot of innovators in America, just like the folks here
    at Virginia BioDiesel. No doubt in my mind the innovative spirit of this
    country is going to make certain that our children and grandchildren
    will grow up in a more secure America, an America less dependent on
    foreign sources of oil. And the first place to start is for the United
    States Congress to pass that bill, based upon a comprehensive strategy
    that's going to work on behalf of this country.
        I want to thank you for giving me a chance to come and share my
    thoughts with you. God bless you all.

    Note: The President spoke at 11:25 a.m. In his remarks, he referred to
    Stephanie Johanns, wife of Secretary of Agriculture Mike Johanns; Walter
    A. Stosch, majority leader, Virginia State Senate; Mayor Andrew J.
    Conklin of West Point, VA; John Budesky, administrator, New Kent County,
    VA; Douglas E. Faulkner, managing member, Norman L. Faulkner, partner,
    and Norman F. Faulkner, partner, Virginia BioDiesel; and Allen
    Schaeffer, executive director, Diesel Technology Forum.

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