Mr. President, I want to speak briefly on the renewable fuels standard that is the subject of the Frist-Daschle amendment, and specifically with regard to a report released today by the National Corn Growers which contains yet another…
Mr. President, I want to speak briefly on the renewable fuels standard that is the subject of the Frist-Daschle amendment, and specifically with regard to a report released today by the National Corn Growers which contains yet another round of good news regarding ethanol.
For decades, those of us who care about energy in the United States and care about energy independence, who care about jobs and the creation of jobs, who care about the future and how we are going to have enough energy for this economy to expand throughout the 21st century have looked for alternative sources of energy. The Energy bill we are debating is a great progrowth, projobs Energy bill across the board. It encourages the production of traditional forms of energy, and it should. It encourages the production of oil and natural gas and nuclear energy. I support all of that. I think most of us in this Senate do. But all of us are concerned about the fact that the traditional forms of energy tend to be nonrenewable. There is a point at which we are in danger of running out. We import a lot of oil from foreign countries. About 59 percent of what we use in the United States we import.
We have all wanted and have talked about for decades the possibility of renewable sources of energy, particularly that we can make here. I go around Missouri and I talk with our corn growers and other agricultural producers about what a great day it will be when we can grow our own fuel effectively and when we don't have to worry about running out and being dependent on other countries.
As the Frist-Daschle amendment indicates, that day, if it is not here, is fast approaching. We are close to being able to grow our own fuel. That fuel is ethanol. It is a great day when that means more jobs for America. It will mean a greater measure of energy independence for our country and a greater measure of energy security for our country. It will mean support for and new markets for our family farmers and our agricultural producers. It is a good thing.
I am glad Senator Frist and Senator Daschle have offered this amendment. I am a strong supporter of it. In fact, I am a cosponsor of it. I am proud of the fact that ethanol will be the subject of one of the first genuine bipartisan efforts in this country, and I hope that amendment passes.
The Corn Growers issued a report today designed to rebut some of the concerns that people have expressed. It is kind of ironic that we are now approaching this day when we actually have access to renewable sources of energy and alternative fuels. And some are getting nervous about it. Their report issued today indicates what common sense already tells us.
First of all, blending ethanol with gasoline at a 10-percent level, which is what the renewable fuels standard calls for, will reduce the retail price of conventional gas by 5 percent or 6.6 cents per gallon based on national average 2002 prices. This translates into an annual savings to consumers of $3.3 billion. The report says that. They have studied it for a long time. It really is a matter of common sense because when you increase the supply, the price goes down. The more ethanol we produce, the more we can rely on renewable sources we can grow and the greater the supply of energy.
The report also indicated that using corn and other grains to produce the 5 billion gallons of ethanol required by the renewable fuels standard will have an insignificant impact on consumer food prices.
In other words, the price of corn and other items is not going to go up because we have tremendous productive capacity in this country. As a matter of fact, we are not using the capacity we have. As a matter of fact, the price to consumers is going to go down because as our producers are able to grow corn and turn it into a value-added commodity, a valuable commodity, ethanol, the price of future farm bills is going to go down.
I was impressed very much when I was in Macon, MO, visiting our ethanol plant there. One of the producers who owns that plant pulled me aside and said: Senator Talent, the real good thing about this is when the price of corn goes down, I make more money on the ethanol.
I thought to myself: Yes, that is one of the keys to ethanol. It will help smooth out some of the cycles of commodity prices, the ups and downs of commodity prices worldwide, which will mean that farm bills will become less challenging every 5 years. It will also mean more money for the transportation trust fund once we have adopted the tax changes that the Finance Committee has worked out and which will accompany or follow shortly after this Energy bill.
It is a good thing for America. It is a good thing for our producers. It is a good thing for the creation of jobs.
I am glad this amendment is being offered. I want to address briefly the amendment of the Senator from California. I know it is an amendment offered in good faith. It is an amendment to exempt California from the renewable fuels standard. It is a little hard for me to understand because the standard is not a mandate for the States. It is a mandate for the refineries. They have to have 5 billion gallons of ethanol refined and into circulation by the year 2012. That should not be difficult.
The use of ethanol is growing all over the country, precisely because of the advantages it offers, which I have outlined. Exempting States doesn't make any sense. California is already using ethanol. By this summer, 60 to 70 percent of the gasoline sold in California will be an ethanol blend.
I suspect that maybe States such as California think: we don't produce ethanol here; we don't want to have to import energy from other States. If you do not import energy from other States, and if you do not import ethanol from other States, you are going to have to import something from someplace in order to run the automobiles. I would a whole heck of a lot rather have States in this country importing ethanol, which is good for the environment and jobs in the United States, from other States in the U.S. than the alternative, which is to import gasoline, which is not as good for the environment and which does not mean jobs for our country, from Venezuela or from the Arab States or from some other place in the world. They are taking one of the tremendous virtues of the renewable fuels standard and trying to turn it into a vice.
It will reduce our dependence on foreign countries.
There is really no danger to the United States being dependent on fuel that we produce in the United States. It is a good thing to be dependent on fuel we produce in Missouri or Minnesota or North Dakota or South Dakota or Illinois or any of the number of States that produce ethanol.
I understand the uneasiness. The use of ethanol is growing very fast. Its future is coming on us very fast. Sometimes change is difficult to deal with. I was in a Breaktime convenience store in Columbia, MO, where they are selling ethanol at the pump for the same price they have traditionally sold gasoline. I went to this place, stood out next to the pump, talked to the proprietors, and said: This is the future. It is a good future. It is a national future for the United States. This is a national energy policy. We have one Union, not just 50 different States. We have one national economy, and we ought to have one renewable fuels standard for everybody, and we ought to have confidence in it.
I think this 5-billion-gallon standard will be very easily attained. I think we will be above that. States all over the country and consumers all over the country are using ethanol to their benefit and to the benefit of the Nation as
a whole. This is a pro-jobs, pro-growth Energy bill, and the Frist- Daschle amendment is a very important pro-jobs, pro-growth, pro-energy security and independence part of it.
Let's adopt that amendment. We do not need these weakening amendments. Let's face the future with confidence. One of the reasons we can do that is because the Nation will increasingly rely on fuel that we produce in this country in the 50 States.
I thank the Senate for its attention, Mr. President, and I yield the floor.