Mr. Speaker, I thank the gentlelady from South Dakota especially for asking for this floor time tonight and bringing us together to talk about this important issue of ethanol. And while I have the opportunity to say a few words here, while…
Mr. Speaker, I thank the gentlelady from South Dakota especially for asking for this floor time tonight and bringing us together to talk about this important issue of ethanol.
And while I have the opportunity to say a few words here, while my esteemed colleague from Nebraska is in the Chamber this evening, I wanted to take the opportunity to point out that one of the byproducts in biodiesel is a glycerin product, and the closest thing I can identify on the market is Cornhusker's hand lotion. We will have millions of gallons of that as we produce our biodiesel, and we will be looking for some more markets, because I am not sure that there are enough hands to consume all of that Cornhusker's lotion.
But I think that expresses some of the bipartisan nature that we have in this. It is a regional issue very much as well. Us in the Corn Belt have led on renewable fuels, and the ethanol industry had to go through a lot of growing pains to establish an industry.
I happen to have yesterday shaken the hand of the individual, and he is in the Iowa Senate, his name is State Senator Thurman Gaskill. It was his birthday yesterday; he turned 70 years
old. He is the man that actually pumped the first gallon of ethanol in this country. And it was a unique circumstance to be there to eat a treat, to celebrate his birthday, and shake the hand that pumped that first gallon of ethanol in the United States of America. It has been a long, hard slog to get here, where with the industry in ethanol. They have blazed the trail for biodiesel.
As I have watched this come together, and I have watched the leaders in the industry have this vision that said we can take this corn product, and we can turn it into a fuel product that is clean, and it is safe, and it is kind to our air and our water, and it is kind to our engines. And as I listened to many of the stories that come out when people were concerned about the impact on their motors, and there was some old motors that had rubber products in there that did break down with ethanol, that is essentially a thing of the past. And those objections and complaints pretty much drifted past the wayside.
But I have some things that I would like to go through to address some of this, and as the coach said, most has been said; I will probably say a few over again. But it does pay to repeat some of them.
In the past 20 years, Iowa has led the biofuels industry to become one of the most important players in the search for renewable, home- grown energy resources. And if I described the district that I represent, it is roughly the western third of Iowa. And if you would draw a line there from, say, go to the South Dakota-Iowa border, and then go through counties over to the east, and from there on that Minnesota border draw a line straight down to Missouri, that roughly western third of Iowa would get most of the district that I represent.
In that district there are 32 counties, and those 32 counties, among them are six operating, functional ethanol plants, most of them with 40-million-gallon-a-year annual capacity or above. Some have grown up more than that.
And in addition to that, we have at least one other ethanol plant that is under construction in Denison, Iowa, which is right within about 2 miles of where I grew up. That product will be up--that plant will be up and on line fairly soon. We have three others that are on the drawing board.
And while I have this opportunity to say so, I think that the plant in Denison is unique in its character. It sits just down the river a little ways from the original Iowa Beef Packer's plant that is still up and running, and that was built in 1961. And there they will be producing ethanol. They will be able to ship it by rail or by truck. There is already a grain facility there that the producers are used to bringing grain to with large storage capacity. And the unique nature of this plant is it has gas, it has water, it has rail. It has an airport there within just a little over a mile of the ethanol plant.
I pointed out on the day that we did the ground-breaking ceremony to the amazing energy plant there in Denison, as I looked at the board of directors all sitting there under the tent, and I explained to them that they had made a good business decision, and I was not sure that they realized how good that business decision actually was, because you have the corn there, and you have all of the things that I have described, it is all of the components that you would want for an ideal location as well as plenty of corn around the region, but additionally they are going to be producing a dry distiller's grain that some used to think was a byproduct, but certainly it is a very, very valuable animal feed product. And I advised them that they didn't need to load that dry distiller's grain out on trucks and haul it off and market it somewhere to some of the other feeders. I suggested that they just set up an auger and put in a row of feed bunks, and line those bunks up on up river, and within about a half a mile they could bring those calves in, and they could start feeding those preconditioned calves right there at the ethanol plant, and they could just kind of walk sideways a little ways, and the more they gained, the further away they would get from the plant. And eventually they would fatten out at about 1,200 pounds, and they could walk across the road right into the beef plant. The best place in the world that you can put an ethanol plant.
And I would add, though, that when you go into those plants that are up and running, and the efficiency is there, the cleanliness, the state-of-the-art technology, that art technology that used to belong, that technology that used to belong in the hands of ADM and Cargill, and they certainly have that technology as well, But it is being developed by good engineering companies in the Midwest, companies that are working with farmers and producers and keeping that capital and invest it back into the hands of the people that have to make a living off of the land.
But the efficiency that is there, as the energy efficiency, and it used to be the argument made that we would burn more energy producing ethanol than we actually produced, and that equation went the other way a long time ago. And we are up to about 2\3/4\ gallons of ethanol out of every bushel of corn, and then take the dry distiller's grain, and then ship that out and feed that to livestock without really a net loss in that feed value.
It is really something to see when you see a line-up of trucks coming into an up-and-running ethanol plant, and they are coming in dumping grain, and they dump that grain in the pit, it goes up, and it goes on up to be produced into ethanol. And there are other trucks lined up in the other lane loading out dry distiller's grain, corn coming in, turned into ethanol, ethanol out on the rail, dried distiller's grain going out sitting right beside it, some coming in with corn, others hauling dried distiller's grain out. It is efficient. It is almost the perfect symbiotic relationship for a corn producer to see that kind of production go on.
And so there in the district, the day that I went up to do the ground-breaking ceremony in Sioux County at the Little Sioux Corn Processors, it was a chilly day, and we went up there and turned over a spade of dirt and celebrated the beginning of a new value-added operation up there.
And when I left I drove south, down through Buffalo Ridge. And there, in Buena Vista County, there were, at that time, there were 259 wind chargers standing there on the ridge. Today there are at least 359 in that same region. And then just a little further south, there is the ethanol plant at Galva. And as the crow flies, I believe it is 18 miles, two ethanol plants, 359 wind chargers.
We have become, in western Iowa and in much of the Corn Belt, an energy export center, something that was not conceived of 10 years ago, not visualized 6 or 7 years ago, but today is a reality. And, in fact, in the district that I represent, these 32 counties, those six up-and- running plants, the one more under construction, and it looks like three more likely can go, we will be, within 2 years, to that position where we can say we have built all of the ethanol production that we have the corn to supply, another astonishing accomplishment.
And as I watch the biodiesel come behind this, the biodiesel that has looked at the trail that is blazed by the ethanol producers, those people like Thurman Gaskill that pumped that first gallon of ethanol, and they see that pattern, that path that has been set by ethanol, and because of that, biodiesel is stepping in that path and they are following it.
And, in fact, here just a few weeks ago, I had the privilege to be at the kick-off ceremony for the fund-raising drive to build the biodiesel plant at Wall Lake, Iowa, and that happens to be about 8 or 9 miles from where I live as the crow flies. And there were maybe 100 to 150 people, and I thought they all came to have a little lunch and hear a presentation. And I was asked to give a speech, and I gave one. Had I known how much investors were sitting in the room ready to invest in the capital fund drive, I would have shortened my speech up and gotten out of the way.
They began their capital fund drive that day with a significant response, and in 9 days raised the capital necessary to get the biodiesel plant off the ground and get it rolling. And it will be producing biodiesel out of soybeans and off of animal fat. And that is a byproduct that can be put to better use.
So the biodiesel, remember, has a lot of versatility in it as well. We all know
that America can no longer afford to depend on oil that flows from unstable sources and unreliable partners. Oil has reached almost $60 a barrel, and with world demand for oil increasing at an explosive rate, it is likely we may never see low oil prices again.
Clearly, this Nation is too dependent on foreign sources of oil, and even a brief rundown of the facts is a sobering exercise.
Two-thirds of the world's known oil reserves are located in the volatile and increasingly violent Middle East, while America's domestic oil reserves have declined 20 percent over the past 15 years.
American taxpayers today spend more than $50 billion a year just to protect Middle Eastern oil supplies. This is the cost of our energy, too.
Today, the U.S. is importing more than 62 percent of its oil, and that number is expected to hit 77 percent in the next 20 years.
Yet there has not been a major new refinery built in the U.S. since the Bicentennial.
So, recently, the Renewable Fuels Association announced that January's ethanol production set an all-time record high in production. U.S. fuel ethanol reached 320 million gallons in the month of January. The previous high was 312 million, just the month before in December.
U.S. ethanol industry set an all-time monthly production record this last January now of 241,000 barrels a day, and that is an astonishing amount of production. We have a long ways to go before we get our production up to the point where we can meet the demand in this country, not just at the 10 percent rate or the 30 percent rate.
As the gentlewoman from South Dakota pointed out, we have a market out there for E-85, and E-85 uses a lot more renewable fuel; and it takes a lot more pressure off our imported oils from overseas. It is a lot better for our environment, for our air and our water; and it is something that has been my life's work in soil conservation work, water quality and air quality in preserving our resources. This is something that is good for all of us. It is good for all Americans.
It is one of those issues that when you first pick it up and look at it, it looks good, and you hear some criticism, you find the answers to that and it looks better. Each time you turn this ethanol and biodiesel, the renewable fuels package around, you can see it does more and more for us.
By the way, the balance of trade, we watched our balance of trade, that deficit number get larger in the red over the last several years. A year ago, we were looking at a minus $503 billion of balance of trade, red ink. That is how much product we purchased overseas greater than the amount we exported.
Last February 10, we got our new numbers for the balance of trade. It is now a minus $617.7 billion of more goods that we imported than we exported.
But the ethanol industry, the renewable fuels industry, but ethanol itself will change that balance of trade to the tune of $5.1 billion that will reduce the amount of foreign oil that we will have to purchase.
So this fits in very well with our economics. It fits in very well with our taxes. It fits in very well with our air and our water and our environment. It is something that is good for rural America, good for the Corn Belt, and good for the cities, especially for their air quality. It is a replacement for MTBEs.
That is something I wish we had done a long time ago. It would save this Congress a lot of grief that we will be facing in how to deal with the MTBE issues.
It is time to move forward and solve this problem. I ask for support on this bill. We will be rolling it out here next week, and I am glad to be a part of it. It is something I have a lot of energy and passion for.
I thank the gentlewoman from South Dakota for her efforts.