Energy Policy Act Of 2003
Mr. President, I first want to recognize the comments of the distinguished chairman of the Energy Committee. He is far too generous, but that is usually his nature. And I appreciate very much his thoughtful words. I appreciate the comments…
Mr. President, I first want to recognize the comments of the distinguished chairman of the Energy Committee. He is far too generous, but that is usually his nature. And I appreciate very much his thoughtful words.
I appreciate the comments of my friend from Missouri. I think they cut to the essence of what this issue is about, as well as the comments of our dear friend, the senior Senator from Missouri.
(Mr. DOMENICI assumed the chair.)
Mr. President, I am privileged to be part of this effort because I do not believe there is anything more important for the future of this country than to establish an energy policy that we can build upon; that does, in fact, move right to the core of our national security, our economic growth, and all of the elements that are interconnected for the future of this country.
So I come to the floor this morning to address briefly some of the elements of this amendment that will be offered and to, once again, register my strong support of the renewable fuels standard amendment to the energy bill.
I, like my colleagues who have spoken prior to me, wish to recognize and thank the leadership of Majority Leader Frist and Minority Leader Daschle for getting this amendment to the floor, and, of course, the distinguished chairman of the Energy Committee, Senator Domenici, for allowing us to have what many of us believe is a very important amendment to be the first amendment up on the energy bill, of which I am a strong proponent and supporter.
This amendment, as we have heard, would enhance air and water quality, reduce supply and distribution challenges in the gasoline market, and increase energy security by expanding the use of clean, domestically produced renewable fuels.
Specifically, this amendment follows the advice of the EPA's Blue Ribbon Panel on Oxygenates by repealing the Federal oxygenate mandate and phasing out the use of MTBE nationwide. It also contains a reasonable renewable fuels standard, which would gradually increase the Nation's use of renewable fuel to 5 billion gallons a year by 2012--all of this while protecting the environmental gains already made by the reformulated gasoline program.
This legislation mirrors the bipartisan fuels agreement in last year's Senate energy bill, of which it has been stated here this morning gained the votes of 69 Senators. This year, we have worked to build an even broader bipartisan coalition of cosponsors. Much has happened since the Senate passed its energy bill last year. The renewable fuels industry has expanded considerably to meet growing demand.
The ethanol industry opened 12 new plants last year, with 10 additional plants now under construction. Sixteen of these new plants are farmer owned--farmer owned--individually owned cooperatives.
By the end of 2003, annual ethanol production capacity is expected to exceed 3 billion gallons. In December, the ethanol industry wrapped up a record year--2.13 billion gallons in 2002, up by more than 20 percent over 2001.
Also, Chevron Texaco announced earlier this year it will switch from blending MTBE to blending ethanol in the southern California market, making Chevron the last of the large California refiners to make the switch to ethanol. This means that this year approximately 80 percent of California's federally reformulated gasoline will be blended with ethanol.
We should not forget that biodiesel, made primarily from soybeans, and still a developing fuel technology, has grown enough that it is now used in more than 200 State and Federal automobile fleets, using a 20- percent blend or higher.
Today, 16 States have already banned or are in the process of banning MTBE. With State MTBE bans will come increased challenges to fuel distribution and supply.
The national phase-down of MTBE proposed in this bill will help us meet these challenges. And a national renewable fuels standard with a credit and trading program--that makes sense, which is relevant, which has common sense--will ensure that renewable fuels are used where they make the most sense--not a mandate, where they make the most sense.
In fact, according to a recent analysis by the Department of Energy, enacting this fuels bill would even reduce refiner costs at least by .2 percent per gallon compared to current law.
The standard in this amendment is a fair and workable compromise we crafted over a year ago. My friend from Missouri, Senator Talent, referenced the compromise, referenced the organizations that came together over a long period of time to fashion a very workable alternative, built upon the good work of many you have heard referenced this morning: Senator Daschle, Senator Lugar, so many who have worked so hard for so many years, Senator Dole. It has not just come from corn and soybean-producing States. It has come from the leadership of individual Senators with a wider lens of understanding of national security issues, environmental issues, and economic issues, because they are all interconnected.
This effort was bolted together by many people who deserve much credit: The American Petroleum Institute, National Farm Bureau, the environmental community, Northeast air directors, agriculture groups from all over the country, DOE, EPA, and many others. Senator Daschle and I helped facilitate those talks last year, as well as a number of our colleagues who are here today and will most likely speak today.
Contrary to the opponents of this amendment, this is not a per-gallon mandate. It will not force a specific level of compliance in places where compliance may be difficult. In fact, the credit trading provision in this amendment will give flexibility to refiners who utilize ethanol or biodiesel where it is most economically attractive.
Our Nation needs a broader, deeper, and more diverse energy portfolio. Today less than 1 percent of America's transportation fuel comes from renewable sources. Under this amendment, renewable fuel would increase to approximately 3 percent of our total transportation fuel supply, tripling the amount of renewable fuel we now use. Today America imports nearly 60 percent of the crude oil it consumes. The Senator from Missouri defined in some detail the numbers. We continue to hold our economy, our national security, hostage to foreign oil.
This country consumes more than 300 billion gallons of crude oil a year. Of that, 165 billion gallons is refined into gasoline and diesel. This amendment says that by 2012, not less than 5 billion gallons of that 165 billion gallons shall come from renewable sources.
By enacting this legislation, we would replace 66 billion gallons of foreign crude oil by 2012, reduce foreign oil purchases by $34 billion, create more than 250,000 jobs nationwide, and boost U.S. farm income by more than $6 billion a year.
I join my other colleagues who have spoken this morning--and others who will speak today--to enthusiastically encourage all our colleagues to pay attention to the amendment, to be aware of its consequences, have some sense of why this is just not another renewable fuels amendment. It has dramatic implications for the future of the economy, for our national security, and our independence. It also helps America address the additional and important environmental challenges that lie ahead. This is an amendment about America's future.
I thank the Chair and yield the floor.