Mr. President, I rise today in support of the conference report accompanying the Energy bill. As I have often stated, we sorely need to develop a long overdue comprehensive energy policy for our Nation. The United States has a…
Mr. President, I rise today in support of the conference report accompanying the Energy bill. As I have often stated, we sorely need to develop a long overdue comprehensive energy policy for our Nation. The United States has a responsibility to develop a policy that harmonizes the needs of our economy and our environment.
These are not competing needs. A sustainable environment is critical to a strong economy and a sustainable economy is critical to providing the funding necessary to improve our environment. We need to enact a policy that broadens our base of energy resources to create stability, guarantee reasonable prices, and protect America's security. It has to be a policy that will keep energy affordable. Finally, it has to be a policy that will not cripple the engines of commerce that fund the research that will yield environmental protection technologies for the future.
The legislation we are discussing today is the key element in our effort to construct a viable energy policy. It will provide a tremendous boost to our economy, protect our environment, and create hundreds of thousands of jobs. Let me say this again. Passage of this bill will provide a tremendous boost to our economy, protect our environment, and create hundreds of thousands of jobs.
There are four huge reasons that my constituents in Ohio need this bill: Ethanol, natural gas, electricity and jobs.
The fuel title in this bill will triple the use of renewable fuels over the next decade, up to 5 billion gallons by 2012. It will also reduce our national trade deficit by more than $34 billion, increase the U.S. gross domestic product by $156 billion by 2012, create more than 214,000 new jobs, expand household incomes by an additional $51.7 billion, and save taxpayers $2 billion annually in reduced Government subsidies due to the creation of new markets for corn. In other words, we will not have to use the subsidies to farms to the tune of $2 billion with this 5 billion gallons of ethanol.
The benefits to the farm economy are even more pronounced. Ohio is sixth in the Nation in terms of corn production and is among the highest in the Nation in putting ethanol into gas tanks. Over 40 percent of all gasoline sold in Ohio contains ethanol.
An increase in the use of ethanol across the Nation means an economic boost to thousands of farm families across my State.
Currently, ethanol production provides 192,000 jobs and $4.5 billion to net farm income nationwide. Passage of this bill will increase net farm income by nearly $6 billion. Passage of this bill will create $5.3 billion of new private sector investment in renewable fuel production capacity, and expanding the use of ethanol will also protect our environment by reducing auto emissions which will mean cleaner air and improved public health.
The use of ethanol reduces emissions of carbon monoxide and hydrocarbons by 20 percent. The use of ethanol also reduces emissions of particulates by 40 percent. The use of ethanol helped move Chicago into attainment of their Federal ozone standard, the only RFG area to see such an improvement.
In 2002, ethanol use in the United States reduced greenhouse gas emissions by 4.3 million tons. That is the equivalent of removing more than 630,000 vehicles from the roads.
Simply stated, this legislation is critical to our farm economy, especially in agricultural States such as Ohio. We need to get this bill finished.
We are in the midst of a natural gas crisis in the United States. Over the last decade, use of natural gas in electricity generation has risen significantly while domestic supplies of natural gas have fallen. The result is predictable: tightening supplies of natural gas, higher natural gas prices, and higher electricity prices.
Home heating prices are up dramatically, forcing folks on low incomes to choose between heating their homes and paying for other necessities such as food or medicine.
Donald Mason, a commissioner of the Ohio Public Utilities Commission, testified earlier here in Congress:
In real terms, the home heating cost this winter will
increase by at least $220 per household. That might sound not
significant, but during the winter season of 2002 to 2001,
one gas company in Ohio saw residential nonpayments jump from
$10 million a year to $26 million a year.
As a result of these heating cost increases, 50 percent more residential customers were disconnected from gas service last year than in 2001.
I have personally seen my own natural gas costs go from $4 an mcf to over $8 an mcf. Projections indicate that this winter could be devastating on the elderly and low-income families who are already struggling to survive.
At a hearing last year, Thomas Mullen of Catholic Charities and Health and Human Services of Cleveland, OH, described the impact of significant increases of energy prices on those who are less fortunate.
He said:
In Cleveland, over one-fourth of all children live in
poverty and are in a family of a single female head of
household. These children suffer further loss of basic needs
as their moms are forced to make a choice of whether to pay
the rent, or live in a shelter; pay the heating bill, or see
their child freeze; buy food, or risk the availability of a
hunger center. These are not choices that any senior citizen,
child, or for that matter, person in America should make.
Manufacturers that use natural gas as a feedstock are getting hammered due to the doubling and even tripling of their natural gas costs and are either leaving the country or closing their doors.
Lubrizol, a chemical company located in Wickliffe, OH, which was at a manufacturers' listening session that I conducted a couple of weeks ago, is moving part of its workforce to France due to the tripling of natural gas prices in Ohio.
The president of Zaclon, Inc., a chemical manufacturer based in Cleveland, testified earlier this year that increased natural gas costs have resulted in loss of sales revenues and increased total energy costs.
The president of one major international pharmaceutical company stopped by my office--a company that has 22,000 employees in the U.S.-- and basically said: Unless you do something about natural gas prices, we are moving most of these jobs to Europe.
Due to the natural gas crisis, the Dow Chemical Company, which is headquartered in Michigan, will be forced to shut down several plants, and they are going to eliminate 3,000 to 4,000 jobs.
The American Iron Steel Institute reported that an integrated steel mill could pay as much as $73 million for natural gas this year, up from $37 million last year.
An east Texas poultry producer reported that his poultry house heating bill jumped from $3,900 to $12,000 in 1 month, forcing him to decide between paying the bank or the gas company.
High natural gas prices have resulted in the permanent closure of almost 20 percent of the U.S. nitrogen fertilizer production capacity and the idling of an additional 25 percent.
The Potash Corporation, one of the world's largest fertilizer producers, has announced layoffs at its Louisiana and Tennessee plants due to high natural gas prices.
The company spends $2 million per day on natural gas.
I could go on and on and on about the natural gas prices. This bill is going to provide more opportunity to increase the supply of natural gas and help limit the exacerbating needs for natural gas in this country because of the fuel switching that is going on. The end result is a drag on our economy.
Don't take my word for it. Federal Reserve Chairman Alan Greenspan has testified before the Senate Energy Committee, the House Energy Committee, the Commerce Committee, and the Congressional Joint Economic Committee on the supply and price of natural gas. He did it this year. He stated:
I am quite surprised at how little attention the natural
gas problem has been getting because it is a very serious
problem.
This Energy bill includes several provisions to increase domestic production of natural gas and to ensure that we have a healthy, vital fuel mix for electric generation.
It is vitally important for us to finish this debate and pass this bill in order to relieve the pressure on our natural gas supply.
This bill helps provide money for clean coal technology and use a 250-year supply of coal. There are some people in this country who want to shut down coal and force our utilities to use more natural gas. This bill will increase the use of coal using clean coal technology and take the pressure off of energy companies fuel switching to natural gas.
Electricity is another issue for the people of Ohio. There has been a lot of conversation here on the floor over the last couple of days about the electricity title of the bill. Several of my colleagues have talked about the need to prevent blackouts such as the one we experienced in August. Let me say that as a Senator from Ohio where the blackout was triggered, I know about the need to prevent more blackouts. In fact, I held a hearing on this exact topic this morning in the Oversight of Government Management Subcommittee. The electricity title in this bill explicitly provides the Federal Energy Regulatory Commission with the authority to establish and enforce with penalties new national reliability standards that will be critical in helping to prevent future blackouts.
For my colleagues who are having a problem with this bill, I remind them that this title is so needed if we are going to prevent future blackouts.
It also provides the Federal Energy Regulatory Commission with new authority to site transmission lines, encourages utilities to invest in increased transmission capacity, and encourages utilities to invest in new clean coal technologies that will allow more electricity to be put into the grid without increasing the pollution put into the air.
At the oversight hearing that I held this morning, I asked the panel of electricity experts from the Federal Energy Regulatory Commission, the Department of Energy, and the North American Electric Reliability Council what we need in order to prevent future blackouts. Their response was overwhelming: Enact the provisions in the Energy bill, especially the reliability standards.
Finally, I want to talk about jobs created by this legislation. The Energy bill saves jobs. It will create nearly 1 million new jobs. The Energy bill will prevent the loss of hundreds of thousands of jobs, like the jobs lost in the manufacturing sector in the past 3 years, in part due to high energy costs, which I have discussed, and the devastating impact it has in my State, particularly manufacturing jobs, but jobs in all sectors, including manufacturing, construction, and technology.
Where are these other jobs going to come from? Natural gas and coal, more than 400,000 direct and indirect new jobs will be created through the construction of the Alaska national gas pipeline, while at the same time bringing an affordable energy supply to the lower 48 States. America's substantial investment in clean coal technology creates 62,000 jobs and ensures Americans new electricity that is abundant, reliable, affordable, and cleaner than ever before; 40,000 new construction jobs created by the construction of approximately 27 large clean coal plants; 12,000 full time permit jobs related to plant operation; 10,000 research jobs in the fields of math, engineering, physics, and science, with an estimated annual salary of $125,000. A lot of the research jobs will be created right in my State of Ohio.
The renewable fuel standard in the bill will create more than 214,000 new jobs and expand household income by an additional $51.7 billion over the next decade.
Building a first of its kind nuclear reactor to cogenerate hydrogen will create 3,000 construction jobs and 500 long-term high-paying, high-tech jobs.
A nuclear production tax credit will spur the construction of approximately four light-water nuclear reactors for a total of 6,000 megawatts of clean and affordable energy. This construction will create between 8,000 and 12,000 jobs. Running the plants will create 6,000 high-paying, high-tech jobs. The Price-Anderson renewal in this bill will protect 61,800 jobs and 103 plants nationwide.
Again, renewables, incentives for geothermal energy will bring between 300 and 500 megawatts of clean and renewable geothermal energy on line over the next 3 years that will create between 750 and 1,000 direct jobs and between 7,500 and 10,000 indirect jobs.
The fact is, this is a jobs bill. It will also do something else: It will prevent the loss of jobs. Mississippi Chemical and Yazoo City, MS, filed for chapter 11 bankruptcy protection in May due to financial losses attributed to the combination of depression in the agricultural sector and extreme volatility in the domestic natural gas area. In other words, plants are shutting down because of the high cost of natural gas. This will produce more natural gas in this country and take the heat off the rising cost of electricity in our country.
I have heard a number of my colleagues during the debate savage this bill, claiming it will devastate the environment, that it gives oil companies a free pass for MTBE contamination, and that it contains porkbarrel funding for energy companies. Unfortunately, this rhetoric is just another example of the old adage, you cannot let the facts get in the way of good judgment or a good argument. I will address a few of those most outrageous claims we have heard.
The first complaint raised by many of my friends is that the bill is bad for the environment. What are the facts? Here are the environmental benefits to this bill. By promoting greater efficiency and cleaner energy technology, the Energy bill will improve air quality, reduce greenhouse gasses, protect our natural resources, and provide a cleaner, healthier environment for the American people. The Energy bill will reduce environmental impacts by improving energy efficiency, conserving energy, and improving air quality to renew energy efficiency standards for energy-efficient products such as consumer electronics and commercial appliances.
It will provide tax incentives for energy-efficient appliances, hybrid and fuel cell vehicles, and combine heat and power products. It will authorize $1.2 billion over the next 3 years for weatherization assistance programs to help low-income families to make their homes more energy efficient and permanently reduce their energy bills. And it will increase dramatically the LIHEAP money that we will need during the next couple of years for the poor and the elderly so that they are not literally out in the cold.
It expands the use of renewable energy, requiring the Federal Government to purchase up to 5 percent of its electricity from renewable sources and encouraging the installation of solar panels on public buildings. It increases production of renewable energy resources, such as geothermal on Federal and tribal lands. It provides tax incentives for production of electricity from renewable energy such as wind, solar, biomass, and landfill.
Under this bill, the tax credits include $5.6 billion of tax incentives for thermal and for solar energy. We are going to see, as many of my colleagues have asked for the last couple of years, a lot more windmills and a lot more solar panels built as a result of this legislation.
It reduces the use of oil for transportation. It authorizes over $2.1 billion for the President's Freedom Car and hydrogen fuel initiatives to help reduce the use of oil for transportation needs. This is a big issue in this piece of legislation. I have heard some of my colleagues say it will not do anything to
reduce their reliance on oil. I have already talked about the contribution of reducing reliance on oil in terms of renewable fuels such as ethanol, but what it also does is invests substantial money in fuel cells that need to be moved along in this country.
As a Senator and as cochairman of the auto caucus, I have been in automobiles powered by hydrogen and that use fuel cells. This bill will start us on the way to a situation where my children, and for sure my grandchildren, will not be using oil to power their motor vehicles. We have to get on with it and get serious.
It creates new markets for renewable fuels for transportation such as ethanol and biodiesel to reduce the dependence on foreign oil. Expanding use of cleaner energy technologies is another issue in this bill, and modernizing our electricity grid with policies that promote the use of efficient distribution generation combined with heat and power and renewable energy technology. It authorizes a 10-year clean coal power initiative to enable the use of plentiful domestic coal resources with fewer environmental impacts.
It also improves the hydroelectric relicensing process to help maintain this nonemitting source of energy while preserving environmental goals.
The second complaint we have heard about is it contains provisions that give MTBE a free pass from any liability. Now, what are the facts? First of all, Congress has considered liability protections in a variety of settings, including medical care and educational institutions. This provision recognizes that when Congress mandates the use of fuel components and when those components have been studied and approved by the EPA, it is reasonable to disallow a case where the mere presence of a removable system fuel makes it a defective product. The safe harbor provision is intended to offer some protection to refiners that have been required to use oxygenated fuels under the Clean Air Act. They are being required to do it. We told them to do it. The safe harbor provision will not affect cleanup costs; it will not affect claims based on the wrongful release of renewable fuel into the environment such as a spill.
The suggestion is with the spills that are going on, we will not be able to sue those people responsible. Anyone harmed by a wrongful release would retain all rights under current law and would be able to recover cleanup costs just as they do now. Those responsible for releasing oxygenated fuels will be responsible for cleaning them up.
Federal and State environmental statutes such as underground storage tank laws will still apply if gasoline is released and gets into a well or contaminates a drinking water supply.
Critics have charged that this bill will throw all MTBE lawsuits out of court. They could not be more wrong. The safe harbor only applies to product liability claims and does not affect any claims that have been filed prior to September 5, 2003. In fact, at a hearing that I chaired on this topic in March of this year, we spent a significant amount of time discussing current litigation going on in Santa Monica, CA. The facts in this case are pretty clear. MTBE has contaminated the city's water, and the city has had to undergo costly remediation to clean up the contamination.
In that litigation it is worth noting that the oil companies have paid millions and millions of dollars for the cost of remediation and to bring in uncontaminated water to that community. I understand Santa Monica litigation is moving forward. Most importantly, this legislation will not change any aspect of that case. It will not cause any claims to be kicked out and will most certainly not cause the case to be dismissed.
Let me state this again: The safe harbor does not apply in cases such as this. It does not let the oil companies off the hook. It does not throw any litigation out of court. And it does not give anyone a free pass.
Now, a number of my colleagues have come to the floor during this debate and announced they will vote no on this bill because this safe harbor provision is contained in the fuels title. These Members are announcing they oppose the ethanol package purely for this reason. Cynically, I would like to say that, in my opinion, such an announcement is a statement that some of these Members have picked trial lawyers over farmers.
The third complaint that critics of this bill have lodged against it is that it contains unreasonable handouts for big energy and oil companies. What were the facts?
The authorizations and tax incentives contained in the bill are geared to promote the kinds of energy that our friends across the aisle and on this side of the aisle are calling for.
The bill includes incentives for renewable energy--$5.6 billion worth--such as wind energy, solar energy, and the use of biomass. As I mentioned, over 26 percent of all the tax incentives in this bill go to renewable energy.
The bill includes incentives for clean-burning natural gas production.
The bill includes incentives for clean coal technologies. These are the technologies that will allow utilities to continue to use coal without continuing to emit pollution into the air.
The bill includes incentives for increased energy efficiency and conservation.
I would like to read a letter that was sent to Senator Domenici. It is from the American Wind Energy Association, the Geothermal Energy Association, the National Hydropower Association, and the Solar Industries Association:
Dear Senator, on behalf of the leading renewable energy
trade associations, we are writing to urge your support for
passage of H.R. 6. H.R. 6 contains several important
provisions vital to the future of our industries. Its passage
will help expand renewable energy production and spur job
growth in the United States in the immediate future. We ask
that you support the bill and vote in favor of any cloture
motion filed on the conference report.
What is the downside of promoting clean-burning and renewable energy? Aren't these the same things that many have been attacking us for not including in the bill? This criticism is one more example of overheated rhetoric that, frankly, does not stand up to scrutiny.
If we do not pass this legislation, we will continue to see the hemorrhaging of jobs in America, especially in States such as mine, and we will lose all of the potential jobs that I have just outlined.
This is the largest jobs bill we have seen on the Senate floor in decades. It is my hope and expectation that the Senate will pass it. These issues have been in front of us for far too long--far too long.
Last year, when this was brought up, I spent 6 weeks on the floor of the Senate debating the Energy bill. We finally passed it in the Senate, and it died.
This year, we started out for 2 or 3 weeks and finally were able to enter into a compromise with the other side of the aisle and pass the bill that we passed last year so it could go into conference.
We have worked very hard on this piece of legislation. It is not perfect. There are people who have problems with it. But, overall, it is a very good piece of legislation. The result of not passing it--God only knows what would happen.
For example, this morning, when I had the hearing with the folks who are trying to do something about the blackout problem in this country, they indicated the only salvation for them is this Energy bill. They said: Please pass it, we need it now.
If we do not pass it now, then when are we going to get to mandatory renewable standards, with penalties, and get on with making sure we do not have more blackouts in the United States of America?
As I said, these issues have been in front of us for too long. Now that we are so close to the finish line, I ask my colleagues to vote for cloture on this bill, prevent a filibuster that will hurt our economy, cost us jobs, and hurt our environment. Most importantly--most importantly--we have never had an energy policy in this country. It is long overdue. It is long overdue. We need to move on with this for the future of our economy, for our environment, and for our national security.
Mr. President, I suggest the absence of a quorum.
Mr. SCHUMER addressed the Chair.