Mr. President, our dependence on foreign oil is sapping America's power and independence as a nation. It is urgent we begin now to diversify the fuels we use to power our vehicles or risk ceding our…
Mr. President, our dependence on foreign oil is sapping America's power and independence as a nation. It is urgent we begin now to diversify the fuels we use to power our vehicles or risk ceding our national power to the rulers of faraway deserts, distant tundras, steaming rain forests or off-shore, drilling platforms half a world away.
I rise today as part of a bipartisan group of 10 Senators who represent the American Northeast, South, Midwest and West to introduce the Vehicle and Fuel Choices for America Security Act.
We chose this title because nothing less than our national security is at stake.
Besides myself, the rest of the ``Gang of Ten,'' or the ``Energy Security Ten,'' as some call us are Senators Sam Brownback of Kansas, Evan Bayh of Indiana, Norm Coleman of Minnesota, Lindsey Graham of South Carolina, Ken Salazar of Colorado, Jeff Sessions of Alabama, Bill Nelson of Florida, Richard Lugar of Indiana and Barack Obama of Illinois. And we expect even more of our colleagues from both sides of the aisle will be joining us soon.
I hope that in the future we all look back on the day this bill was introduced as the beginning of a major shift in our national security strategy. I hope that history will say we saw a challenge to our national security and prosperity and then met it and mastered it.
A recent report by the International Energy Agency, IEA, sums up the urgent need for our legislation.
According to the IEA, global demand for oil--now about 85 million barrels a day--will increase by more than 50 percent to 130 million barrels a day between now and 2030 if nothing is done.
The industrialized world's dependence on oil heightens global instability. The authors of the IEA report note that the way things are going ``we are ending up with 95 percent of the world relying for its economic well-being on decisions made by five or six countries in the Middle East.''
Besides the Mideast, I would add that Nigeria is roiled by instability, Venezuela's current leadership is hostile to us and Russia's resurgent state power has ominous overtones.
In fact, we are just one well-orchestrated terrorist attack or political upheaval away from a $100-a-barrel overnight price spike that would that would send the global economy tumbling and the industrialized world, including China and India, scrambling to secure supplies from the remaining and limited number of oil supply sites.
History tells us that wars have started over such competition.
Left unchecked, I fear that we are literally watching the slow but steady erosion of America's power and independence as a nation--our economic and military power and our political independence.
We are burning it up in our automobile engines and spewing it from our tailpipes because of our absolute dependence on oil to fuel our cars and trucks.
That dependence on oil--and that means foreign oil because our own reserves are less than 1 percent of the world's oil reserves--puts us in jeopardy in three key ways--a convergence forming a perfect storm that is extremely dangerous to America's national security and economy.
First, the structure of the global oil market deeply affects--and distorts--our foreign policy. Our broader interests and aspirations must compete with our own need for oil and the growing thirst for it in the rest of the world--especially by China and India.
As a study in the journal Foreign Affairs makes clear, China is moving aggressively to compete for the world's limited supplies of oil not just with its growing economic power, but with its growing military and diplomatic power as well.
Second, today we must depend for our oil on a global gallery of nations that are politically unstable, unreliable, or just plain hostile to us.
All that and much more should make us worry because if we don't change--it is within their borders and under their earth and waters that our economic and national security lies.
Doing nothing about our oil dependency will make us a pitiful giant-- like Gulliver in Lilliput--tied down by smaller nations and subject to their whims. And we will have given them the ropes and helped them tie the knots.
We can take on this problem now and stand tall as the free and independent giant we are by moving our nation--and the world--on to energy independence, by setting America free from its dependence on oil.
There is only one way to do this. We need to transform our total transportation infrastructure from the refinery to the tailpipe and each step in between because transportation is the key to energy independence.
Barely 2 percent of our electricity comes from oil.
Ninety six percent of the energy used to power our cars comes from oil--literally millions of barrels of oil per day. This is unsustainable and dangerous.
The Vehicle and Fuel Choices for America Security Act aims to strengthen America's security by transforming transportation from the refinery to the tailpipe and each step in between, thus breaking our dependence on foreign oil.
We start by making it our national policy to cut consumption by 10 million barrels a day over the next 25 years.
First, we need to rethink and then remake our fuel supplies. Gasoline is not the only portable source of stored energy. Tons of agricultural waste and millions of acres of idle grassland can be used to create billions of barrels of new fuels.
Our farmers could soon be measuring production in barrels of energy as well as bushels of food.
Then we must remake our automobile engines as well. Vehicles that get 500 miles per gallon--or that use no refined crude oil--are within our grasp. I know that sounds unbelievable. I am going to tell you how we can do it.
To help us get there, our bill also requires that by 2012, 10 percent of all vehicles sold in the U.S. be hybrid, hybrid-electric plug-in or alternative fuel vehicles. That number will rise by 10 percent a year until it reaches 50 percent in 2016.
To help spur this market along, our bill amends our current energy policy to require that one quarter of federal vehicles purchased must be hybrids or plug-in hybrids.
My bill will detail how we can get there with available technology and previously unavailable Federal Government leadership. Coupling these new programs with the explicit oil-savings goals for the Federal Government is the key to the effectiveness of this proposal.
I can almost hear colleagues murmur, So, Senator Lieberman, what else is new? We've been hearing this for years and nothing has happened.
I can't blame you if you are skeptical. The struggle for oil independence has been going on at least since Jimmy Carter was President.
But things have changed since the days of Jimmy Carter and even since last summer. There is a new understanding of the depth of the crisis that our oil dependence is creating.
This summer's doubling of gasoline and crude oil prices hit tens of millions of Americans with the global reality of oil demand and pricing. And Hurricane Katrina reminded us how vulnerable our supplies can become.
This reality is bipartisan. And, along with my colleagues cosponsoring this bill, I think Americans are ready to set the serious goals that eluded us in the past and take the bold steps necessary to reach those goals.
Now let me give you more details.
The bill I will propose puts our Nation's transportation system on a new road--a road where the tanks are filled with more home-grown fuel-- and I do mean grown--not just American corn, but from American sugar, prairie grass, and agricultural waste.
We will push harder for more and quicker production and commercialization of biomass-based fuels.
The Energy bill signed into law last summer created a new set of incentives for these fuel alternatives, including their commercial production.
What my bill would do--again, by including a mass-production mandate for alternative fuel vehicles--is ensure that the investments would be made in the facilities to produce and market these new fuels by providing big demand for them.
The bill would also create a program to guarantee that filling stations had the pumps to provide the fuel to keep pace with the growing alternative-fuel fleet produced by the mandate.
Is there a model to give us confidence we can achieve this transformation? Yes.
Brazil is now enjoying substantial immunity from current high world oil prices, thanks to a long-term strategy, launched during the oil shocks of the 1970s, to integrate sugar cane ethanol into its fuel supply. They started initially with a mandate that all fuel sold in the country contain 25 percent alcohol. They are now up to 40 percent biofuels.
In addition to the fuel mandate, Brazil offered low-interest loans and tax breaks for the building of distilleries and subsidized a fuel distribution network.
Brazil has the advantage of a substantial sugar cane industry already in place. But we have our own vast potential to develop our own biofuel supply, using feedstock like corn, crop waste, switch grass, sugarcane and fast-growing trees and shrubs such as hybrid poplars and willows.
According to the Department of Energy, if two-thirds of the Nation's idled cropland were used to grow these kinds of energy crops, the result could be dramatic. Those 35 million acres could produce between 15 and 35 billion gallons of ethanol each year to fuel cars, trucks, and buses.
That is about 2.2 million barrels of fuel a day from right here in the U.S.A.
What Brazil offers us, more importantly, is a case study of government leadership to combine technology mandates and subsidies to wean its transportation sector from foreign oil to a domestic alternative.
From this January through this July--before this summer's fuel spike--we have sent almost $100 billion out of the country to purchase oil, while the Brazilians are now relying on home-grown fuel.
The key to their success is that they responded 30 years ago to the first storm warnings. We did not, and now the storm is at our shores, slapping against the levees of our economic strength and national security. We have to mobilize and lead a similar response as Brazil did.
If we do this right, our farmers could soon be measuring production in barrels of energy as well as bushels of food. Our energy would be guaranteed ``Made in America'' and the profits would be guaranteed ``Kept in America.''
For all these new fuels to be effective, we need the flexible fuel vehicles that can take advantage of them.
As I said earlier, our bill also requires that 50 percent of all vehicles sold in the U.S. be hybrid, hybrid-electric plug-in, or alternative fuel vehicles by 2016.
Sound ambitious? It is not. It has already happened in Brazil. Several automakers selling cars in Brazil, including our own General Motors and Ford, already manufacture a fleet that is more than 50- percent flexible fuel cars that can run on any combination of gasoline and biofuels.
The technology exists now and adds a negligible cost--about $150--to the price of each vehicle. For this we get the flexibility to power a car with fuel made from corn, prairie grass, or agricultural waste from our own heartland that will cost a lot less than gasoline does today.
Maximizing fuel efficiency and promoting energy independence even further would be a new generation of flexible-fuel hybrid cars known as plug-ins because you can plug them in at night to recharge the battery.
Hybrids that use a use both a gasoline engine and electric motor for power are already getting 50 miles per gallon. Making them flexible fuel cars, as I've already said, can save us more than 2 million barrels of gasoline a day.
But we can do even better--dramatically better--with the plug-in hybrid that is just now on the threshold of commercialization. Like the present hybrids, it would use both a gasoline and electric motor. But the plug-in hybrid would be able to use the battery exclusively for the first 30 miles of a trip.
Think of that for a minute. Although Americans drive about 2.2 trillion miles a year, according the Census, the vast majority of those trips are less than 15 miles.
That means a plug-in hybrid would use zero--zero--gallons of gas or any combustible fuel for the vast majority of its trips. And experts tell me it could effectively get the 500 miles per gallon on longer trips.
Plugging in your car during off peak hours--when power is in surplus and cheaper--would soon just become part of the modem daily routine, like plugging in your cell phone or PDA before you go to bed.
And off-peak electricity can be the equivalent of 50 cent a gallon gasoline, I repeat--the equivalent of 50 cent a gallon fuel is feasible.
Of course, electricity does not come magically through the wires to our homes. That power would come from coal, natural gas, nuclear, solar, wind or other sources--sources that we have in abundance here at home--and a little--very little--would come from oil.
This isn't pie in the sky. These vehicles could be in your garage within a couple of years. Some of the incentives for achieving this were included in the Energy bill signed into law in August. But they did not go nearly far enough.
We need to couple these incentives with real performance standards and sales requirements to ensure that as soon as possible new cars are running not just on gasoline but on biofuels and electricity.
As always, there is a do-nothing crowd that says the ever-rising price of gasoline and crude oil are the cure--that with higher prices people will reduce consumption and the market will respond with greater investments in the supply of oil to bring prices down.
But all that would do is perpetuate the problem. Market-driven oil- dependency is still dependency on foreign oil, driving us further down the current path toward national insecurity and economic and environmental troubles.
Some say that we can ease the crisis through greater domestic drilling--in places like the Arctic Refuge and other public lands or off our shores.
But that won't make a dent in the problem. In the world of oil, geology is destiny and the U.S. today has only 1 percent of the world's oil reserves. And that small new supply wouldn't matter much in the global market, since the price of oil produced within the United States rises and falls with the global market, regardless of where it is produced.
We just don't have enough oil in the U.S. anymore. And no matter how much more we drill, we will still be paying the world price of oil--not an American price.
Our present energy and transportation systems were born at the end of the 19th and the beginning of the 20th centuries with the twin discoveries of oil extraction and the internal combustion engine. Those systems have served us well bringing growth to our Nation and the world.
But it is now the 21st century, and it is time to move on. The era of big oil is over. It is time to revolutionize our entire energy infrastructure, from the refinery to the tailpipe, and begin a new era of energy independence.
It is time to set America free by cutting our dependence on foreign oil and by doing so strengthen our security, preserve our independence and energize our economy.