[Weekly Compilation of Presidential Documents Volume 41, Number 20 (Monday, May 23, 2005)]
[Pages 809-815]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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,

[[Page 810]]

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]
    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

[[Page 811]]

pump. For many years, most of the crude oil refined into gasoline in 
America 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 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

[[Page 812]]

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 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-

[[Page 813]]

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.
    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

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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 deliquify 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.
    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

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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.